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Final edition
THURSDAY
In 2 Sections
-
Section 2
TEUf. V. 8. Pat. Office
Volume 155
Number 4054
New
York, N. Y., Thursday, March 12, 1942
Saturday Evening Post Arid liberty Magazine]
Double Price; Nickel Publications Now Dime
Editorials
/.W- **: yT'liPage
Diminishing Returns
1042
We
Mahan
Hope!
Colonel
or
We Hope!
Kernan
1042
We Hope!
a
Copy
THE FINANCIAL SITUATION
.
Admiral
Announcements were made on March 5 that the price of the
"Saturday Evening Post" and "Liberty" Magazine will be increased
Price 60 Cents
1041
in
April from 5 cents to 10 cents.
The increase is effective with
Regular Features
the issue of April 11 for the "Post" and with the
April 18 issue for Financial Situation
From Washington Ahead of the
"Liberty." Indicating in its March 5 issue an increase in the
price
News
I
April 11 of the "Saturday Evening Post" from 5 to 10 cents, the On The
Foreign Front
Philadelphia "Record" said;/
<$>
?
—~
Moody's Bond Prices and
The
subscription rate by the
will rise from $2 to $3 with
year
the
.same
The
issue.
has
for five cents
for
although
more,
from
been
a
century
or
changes
some
have been made in the subscrip¬
tion rates from time to time.
The
Curtis
Company
Journal"
from
.As to
zine
to
15
cents
1060
Cos.
Price
1043
1053
1052
1056
1051
1058
Index.........
1058
will
remain
their
at
and Coke Output
1058
Estimate of Feb. Coal Output.... 1058
Consumers' Coal Holdings Feb. 1 1057
I
1
Bank
Debits
Petroleum and Its Products
1058
1060
Steel
Industry:
Weekly Review
U. S. Steel
1059
Corp. Reports February
Shipments
Industry Output in February....
price, 15 cents per issue;
f Moody's
Commodity Index
j Higher publishing costs were Weekly Electric Power Output.....
6 stated:
Effective with the May issues,
the newsstand price of "Screen
given
Guide," "Stardom" and "Movie-
the main
as
reason
present
•
1057
1057
1059
1060
Automobile
Output In January.... 1054
February Zinc Statistics
1057
February Flour Production
1060
for the
increases in prices.
numerous occasions—on so
many occasions that. the
practice may be said to have become habitual—the Pres¬
ident
has
said
that
1064
Review.
Fertilizer
Two-year subscription rate, now
$7, will be $9. Individual copies
prices, the New York "Times"
;
Yields...
and Trust
Commodity Prices—Domestic Index
(World Index
Suspended)
Carloadings
Weekly Engineering Construction..
Paperboard Industry Statistics.....
,Weekly Lumber Movement
planning an increase art
its subscription rate from $5 to
$6 a year, effective April 30,
other increases in maga¬
of March
•
10
General
to
is also
February issue.
the
1046
The "New Yorker" magazine Weekly Coal
raised
^ the price of its "Ladies' Home
with
On
1041
State of Trade
Magazines were re¬
be testing in some
areas
a
price of 30 cents for
"Good Housekeeping" and Cos¬
mopolitan" magazines, now selL
ing at 25 cents.
*
'
ported
selling
About Banks
15 cents.
10 cents to
Hearst
,
"Post"
~
Items
Radio Guide" will be advanced
1041
\.
on
the
"dictators"
think
us
It furnishes wholesome food for some very serious
It should stimulate very critical self-examination
on the
part of all thoughtful people both in this country and
at least some of the others allied with
us in this
cataclysmic
pause.
war.
'
ABA
on
Have
1041
Bankers' War-Time Duties 1049
Emphasizes
1051
Demand For Farm Products..Illinois Employment Lower./.
U.
1049
1049
S.-Ecuador
Currency Pact
1049
Housing Essential to Victory1050
AFL To Buy Defense Bonds
:.. 1050
The continued political trouble of Winston Churchill in Britain Auto Industry Conversion Near
Completion
1050
is almost of as much concern to the Roosevelt inner circle here as
Vichy Avers Neutrality....:
1050
what is happening on the various fronts. Recent newspaper stories February Department Store Sales.. 1051
passed by the British censor, some of them very definite to the effect English Financial Market.......... 1051
London Stock Exchange....
1051
that the Prime Minister is on the way out, have had a profound Batavia
Consulate Closed. .
1051
.
1
.
.
..
affect.
To
the
Conservatives
there
is
certainly
no
comfort
in
Farm
the
in fact
we
,
It, of
"gone soft"?
is a commonplace that all those against
German, and more recently the Japanese, might
has been turned
have, with the exception of Russia, proved
almost incredibly ineffective and
impotent. For this there
course,
whom the
Responsibili-
ties
AHEAD OF THE NEWS
'
1
Magazines Boost Prices...
Koeneke
the
thought.
,
FROM WASHINGTON
we,
purpose is to arouse the rank and file to that
"fighting
pitch" which is essential to an "all-out" effort against our
foes, or to hold them at such a pitch if it has already been
reached. It may be excellent
strategy in the use of prop¬
aganda, a field in which the President
has repeatedly
shown himself a
master, but the allegation or the notion
that we have
"gone soft," whatever its source, should give
Miscellaneous
National
that
democracies," have "grown soft," so soft that we are no
longer willing, perhaps no longer able, to undertake effec¬
tively or to undergo the rigors essential to the defense of
ourselves and ours
against their aggressions. His obvious
.
Parity Payments.......
1051
Nelson Appoints Planning Board...
Agriculture's Part In War Effort..
are
number of
a
reasons which bear
upon the question here
study. In substantial degree failures of such coun¬
tries as France,
Belgium, Great Britain and the United
States, so far as failure may be charged against this country,
is to be traced to a want of
pre-occupation with military
matters or to an utter failure to
grasp the potentialities of
under
the scientific advances of two decades when
applied to
ratification, or just some New Money Financing in 1941.... v. 1053 military operations.
Such countries as Norway, Denmark
ceeding him. It would seem to be kind of a gentlemen's agreement* Security-Issues Registered in Jan. 1053 and
Holland have
Community Chest for N. Y. City... 1054
traditionally, in modern times at least,
all - lend-lease credits Bank
significant that after the first whereby
Loans for War Production Up 1054
(Continued on Page 1045)-:
flush
of
Cripp
reports,
other are, in effect; waived. After the January Hotel Sales Advance.... .,,1054
stories were passed by the censor war the two nations would just Non-Agricultural Employment
that
reports
seemed
the
be
to
on
pinkish
the
way
Cripps<S>
to suc¬ ate's
1051
1052
.
the
to
effect
that
while
he
was
start off
with
even
Reduced
bar¬ I
trade
no
940
enjoying an acclaim just now he riers between them and together
would
undoubtedly be knocked they would work for the removal
off
before
Ministry.
getting to'-the - Prime
Perhaps it was con¬
sidered necessary to quiet Ameri¬
can"
fears; on" this
conservative
score.
■>)■-
v"JTyyyy
removal
But
the
would
be
of
of / Churchill
im¬
tremendous
portance to Mr. Roosevelt and to
this country as a whole.
....•
Income
Heads
Tax
American
.i<V.....
/ 1054
< *
Returns..'
Savings
1055
&
Loan
;th4 Market .Values on NYS1L..... .v. .,*.1056
SEC Reports 1941 Registrations.... 1056
world. .rV^-Vj Farm Commodity Buying in Jan..>1056
It is all more or less simply an Rayon-Yarn Shipments Higher:.;..1056
;
understanding between Roosevelt Bill to Suspend 40-Hour Week
of
trade
and
barriers
all
around
Churchill;' What
becomes
it all if Churchill goes out?
Pre-i
National
.
of
that
as
Churchill
versations
was
It
con¬
to
be
leadership of the
and Roosevelt the undisputed
permitted
war
result of their
a
the
is
an
these
two
governments;
happens
have
men
if
one
of
Issue
constituted
Now,
them
falls?
leadership of the peace. The Sen¬
ate Foreign Relations Committee
now has before it a pact which it
Whether
doesn't yet know whether to con¬
sider a treaty requiring the Sen¬
House
mind he wouldn't be at the disad-
his
on
I
Pay
Rate
Landls
Curb
...
,
Increased
.
to
Address
Seat
Commerce
Plan
For
Of Our Subscribers
I
Arrangements have been made with the "Expandit" Binder
the
use
binders
is
designed
to
hold
two
months'
NYSE
"Expandit" Binder, 25 Spruce Street, New York City.
'
Farm
is
Draft
SEC
Bank
Board
Extends
t, Exemption.^
effort to produce the food which,
absolutely indispensable to
planes,. is
/;'
of
;; /
1
each lof
these
„.
\
■
various
opportunity to the enemy to get in some deadly
gives an opportunity to the enemy to spread
an
That
says
the evil whisper, is sabotaging the
and
slowdowns
and
demands
for
war
program
higher
wages.
using the
war
grab all he
to
happens that,
as
can.
incomes of all three groups,
increased. Of course, there
and
men
or
getting
a
few workers
more
result of the war program, the
on the average, are substantially
a
are
or
a
instances where
few farmers
a
are
few
busi¬
demanding
than they ought.
But, in general, the increase to the different groups has been
kept fairly well in balance, and there has been only a mod¬
rise in the cost of living in city and country up to now.
erate
It
1062
.
1062
1063
Stock Tax..
1063
1063
27....
seems
to
me
doubted fact that
1062
Demands.-
fair
1045
we
are
ought to feel proud of
getting cooperation and
Data
Company
......... M #
(
1047
a
the
un¬
reasonably
among 90%
of our population and that if less
10% of the population is chiseling, we still have a pretty
good average national record.---The President of the United
States,, \ 1
j '
than
,
Many*
about
we
some
■
are
confident, wish they could
of these
And
where
things.
would
the
>
<■
feel
T
President
Among the 90%
or
the 10%?
as
assured
•
place
the
reformer-politicians by whom he is surrounded?
1045
Asks Farm
that
we
balance
1063
Insurance... r..... .-r..
Holding
energy
country
groups know the
they themselves are responding. But they
always know what is being done by the others. And
strikes
ness
1062
Rationing Upheld By Court..., 1063
Typewriter Sales, Rental Frozen... 1063
Seeks Double Indemnity for Savings
the
Business, it says, is gouging the country with unconscionable
profits. And the farmer, according to this treacherous voice,
...
Tire
i
in
out
1048
Bond Sales....
Feb.
'And
which
to
Labor,
1048
on
every
and
members
gives
with
Ass'n 1048
.....................
Credit
tanks
defense.
.
1047
Loans.............1082
Short Interest
labofing long hours,
are
1044
.1048
..
Revision of N. Y.
Scores
issues
of the Financial Chronicle. Orders for hinders should be sent
to
Asks
that
1044
January Blue Food Stamps........ 1063
Signs $32,000,000,000 War Bill.. 1063
Urge Flax, Soybean Crops.......... 1063
The cost is $2.50 plus postage for each of these
which'
Cotton
mines
malicious words.
"Staggering" Work Hours 1059
Anniversary
not
civilian
;
blows.
1042
FDR
current issues of
form. These will facilitate
of the Chronicle and will protect copies against mutila¬
tion and loss.
...
1042
Charles J. Babcock..;.
1059
Women War Workers Less Than in- '
1918
....................1062
1941
extent
do
1048
>..
Retirement
IB A Pushes Defense
of
straining
are
Now it
Launch Guayule Rubber Project...
Urges Industry to Turn Tide
/..
New Steel Plants Established
Coffee and Sugar Exchange 60th
Binders For The Convenience
new
1042
Freight
..iv;
Death of
supply temporary binders in which to file
;
1058
.
I
the Financial Chronicle in its
The
.
Get
...............
and
1048
(Union Pay Demands Curb
I Production
Page 1061)
i
to
1064
Income,
......
.!
Railroads
Cripps or someone else,
meeting Mr. Roosevelt's
(Continued
1064
1048
....
To
^
work
like / the
Approves Second War Power
Bill
successor
should be
in
Borrowing
Taxes
the
victory.
to
Public
for
Scores
what
Churchill's
Profits
in
{■ farmers
Capital., 1061
that Recommends New Type of Treasury
amazing situation
their
Bank
mills
giving their time and
dis4
have
men
the
under great pressure, to turn out the
weapons and equipment
without which the war cannot be won.
Men and women in
thousands of communities are
...
Bank Changes.. ......., 1057
Chicago Home Loan Bank Loans... 1057
1941: Farm Inc. Highest Since 1920 1057
cussed what is to be done about
Urges Management, Labor Truoe... 1064
Stalin? /Presumably ■> they t have February Strikes in War Plants..;/1064
discussed what is to be done about January Sale* on Stock Exchanges 1064
sumably the two
Workers in
-
Defeated
1043
of Ecuador-Peru Frontier
Agreement... 1043
_
One has
Name Price Control Review Board.
only to realize that the whole war the Dutch and British
interests U. S.-Brazil
Sign Lend-Lease Pacts
has virtually been fought on an
in the Far East. They have been 1941 Stock Issue
Participations
understanding between these two understood
Lower
to
u;-.1/;/; .V.v
have J .a
perfect
February War Spending at Peak. .>
men, not a written understanding,
meeting of minds, these two men. Far
West Business Continues
just their conversations. Presum¬ The
meeting of minds came at a
Higher
ably no other man in the world
time, incidentally, when Churchill Defense Bond Returns Revised.,..
knows
House Approves $125,000,000,000
just
exactly
what
has was not in a
position to refuse
Debt Limit
passed between them.
Roosevelt anything, when his job,
Says Price Control
is Not AntiTrust Violation ........,i.
There is a rather general im¬ as he has so bluntly expressed it, I
was to get America into the war. January Farm Cash Income........
pression around official Washing¬
Ratio
ton
*
1055
Institute
aggressive
THE COMMERCIAL
February War Spending
Reaches Record High
War
reached a new
$2,201,031,089 in Febru¬
ary, it was reported from Wash¬
ington on March 3 in Associated
:■
advices. According to this
account, baSed on Treasury fig¬
ures, • the
February total was
$100,000,000 more than the total
for
January; which had three
more
days, and. was nearly four
times the rate of February last
year,
The Associated Press fur¬
ther reported:
February
brought, de-
costs
fense-war spending for the first
;■
eight months of the fiscal year
$12,516,021,882. The, government will have to spend nearly
that much more in the remain¬
:
to
:
f
.■
ing four months of the
year
to
Roosevelt's
President
meet
-
budget estimate of $23,996,525,400'
total
costs,
last
tures
■
month
,
month
ears
of automobile users, and. drivers? now is
being dinned much information which reflects the applica¬
bility of the law of diminishing returns. Car tires wear with
$16,excessive and uneconomic rapidity; at speeds above forty
this
third miles an hour, and everyone is being adjured to remain
to
.
„
expenditures
and the eight
deficit soared to the
figure of $11,312,132,576.
P: months'
record
]
.......
Into the
eight-
the
total
over-all
wasteful.
$2,629,-
were
813,666,775. i Revenues in
period, were only about a
of
unwritten law which, if not an inevitably
an
applicable natural law, certainly has a decided bearing upon
many phenomena and upon almost all human activities. This
is the law of diminishing returns^ which .the Treasury in
Washington might well take into sober~consideriation - in
formulating a tax program so vast and Complicated^ that it is
likely to defeat sbme of its own ends. It is a law which the
price regulators, the priorities ordainers and other directors
of the war effort ought to study carefully.
,,
;
Students * of physics and of economics alike .encounter
this law in their school days, lit usually gained familiar illusr
tration by comparing the amount of fuel used by a . locomo¬
tive traveling, say, at sixty miles an hour with the amount
needed for seventy miles an hour. The- extra ten miles an
hour used up fuel at a. sharply accelerated rate, that, in many
instances,, made the "higher speed "uneconomic.". And. when
the comparison was carried to eighty miles an hour or more
the extension beyond the optimum speed became sheerly
expendi-
Treasury
bringing
839,201,
j
There is
,
<
Including other governmental
•
Diminishing Returns'
spending
Press,
-
within that limit; Gasoline is consumed above
at
a
rate that
rises in
certairf-speeds
geometric progression* rather than
arithmetically.
-
_
;
,
:
All of this, is useful and
:;FarWfsi JusIeigss
CcafiiEsases
California
and
Upsurge
Western
Far
continued
business
.
its
upsurge
during January, the volume being
5% higher than December and
28% higher than a year ago, ac¬
cording to the latest Bank of
.
America
(California)
•Review."
index
The
-
to
rose
"Business
bank's
business
its highest point so
far—162% of the 1935-39 average.
.
.Retail trade,
reached
the
says
record
"Review,"
for
levels
Jan¬
,
■
appropriate, arid it might be
carried a good deal further. The; public 'might wellbe in¬
formed that it is" defeating its own desires in hoarding of
currency, and in the hasty home stocking of sugar, cloth,
paper and many other materials in which a shortage impends
or is feared.
Quite needless "shortages" have been. occa¬
sioned temporarily, in recent months, by panic buying of
some commodities in which the country is rich beyond the
possibility of a continued lack.
Our Washington overlords of priorities, of allocations,
of prices and of consurqer rationing are certain to receive
some
jolting reminders of the law of diminishing returns;
There are already signs of; "bootleg" or "black market"
activities where the regulations are too harsh or unwise;.
Our British cousins are struggling with; black market activi¬
ties on a scale that has become a; national scandal, We are
S Alfred Thayer Mahan, of the United States Navy,
evolved ai theory of the dominance of sea power in the re¬
,,
lationships of international history which he exploited in
a
stantiating the report that many
people have been stocking up on
clothing in anticipation of higher
prices,
shortages
and
inferior
less.
The
turbed
Duplicate Defense Bonds
Stubs Return Is Ended
•
Member
other
banks
issuing
certain
and
agents
of
United
States Defense Savings Borids in
the Second Federal Reserve Dis¬
trict
advised
were
on
March
4
that, effective immediately, they
the greatest possible amount
will not be required to return to
the New York Federal Reserve emergency is one with which
Bank
with
duplicate
their
remittances
(salmon-colored)
the
stubs
attached to United States Defense
Savings Bonds, Series E, sold or
spoiled in the process of issuance.
The
announcement,
issued
Allan
Sproul, President
Reserve Bank, added:
of
by
the
Notwithstanding
in
this change
procedure, Series E bonds re¬
by you in the future
ceived
will
continue
to
carry
both
original and duplicate stubs be¬
cause
certain
other
issuing
agents, such as business corpo¬
which
rations
issue
bonds
to
under payroll allot¬
ment plans, will continue to be
required
to
return
duplicate
employes
stubs
!
for
statistical
purposes.
duplicate 1 stub
forms a backing for the bond
and affords protection for both
the bond and the original stub.
Duplicate stubs attached to
Moreover,
Series
E
the
bonds
by
you may
as
sold-or spoiled
be retained by you
part
you
they
of your records; or if
do not wish to retain them,
may
be destroyed.
in
First
first puolished in
presented in "The In¬
upon
received
own
authority, "were translated into many languages, ana, . .,*«
were, nowhere
more
assiduously studied than in Japan."
He:
was called
"the first philosopher of sea power" and,
undoubtedly his "books afforded perfect propaganda," as
Allan Westcott declares, "for the naval expansion already
under way in Great Britain, Germany, and America."
Probably without much if any examination, most of Theo¬
dore; Roosevelt's successors in the Presidency, including the
second Roosevelt and nearly all those in authority in Con¬
gress and elsewhere during the. last half-century, have re¬
garded thq Mahan theory as doctrine immutably established,
and /certainly for much more than a generation it has ef¬
fectively controlled our public policy. That theory itself
is best disclosed, at least for present purposes, by illustra¬
tion, using extracts from concluding paragraphs of Admiral
Mahan's final"* chapter in his second work.
To this chapter
he gave the title "Function and Policy of Great Britain in
the French Revolutionary Wars" and in it, writing of the
events which led to the final defeat of Napoleon, he said:—
^The-true-function of Great-Britain in this long struggle can
-
scarcely
be
the
«
that
fact
recognized
a
unless
there
be
clear
a
appreciation
of
movement, like the French
military power under an incorri-
really great national
Revolution, or a really great
parable general, like the French Empire under Napoleon, is not
to be brought to terms by ordinary military successes, which sim¬
ply destroy the organized force opposed.
Two Napoleons do
.
co-exist.
not
and
...
Not
till
enthusiasm
has
.
,
waned
before
sorrow,
exhaustion, does popular impulse,
when deep and universal, acquiesce in the logic of war . . . but,
if the course of aggression .which Bonaparte had inherited from
the Revolution was to continue, there were needed, not the re¬
sources
of the Continent only, but of the world.
There was
needed, also'a diminution of ultimate resistance below1 the stored
up aggressive strength of France; otherwise, however procrasti¬
nated, the time must come when the latter should fail.
strength
failed
"On both
these
under
Great Britain withstood Napoleon.
world, and by the same act prolonged
her own powers of endurance beyond his power of aggression.
This in the retrospect of. history was the function of Great Brit¬
ain in the Revolutionary and Napoleonic period; and that the
,
points
She shut him off from, the
successive ministries of Pitt and his followers
••••
best
fitted,
justification
he
pursued the
course
the whole, to discharge that function; is their
posterity.
It is the glory of: Pitt's genius that
upon
to
discovered
the object, 'Security', so likewise he foresaw
'Exhaustion', by which alone the French propaganda
of aggression would be brought to pause.
The eloquent derision
poured upon his predictions of failure from financial exhaustion,
from expenditure of resources, from slackening of enthusiasm,
as
the
Treasury calls for taxation increases of $9,610,000,000 on top
of the tremendous levies voted heretofore, the whole being
unprecedented tax bill not only would supply at least, a
good part of the revenues needed; to win the war, but also
would counteract inflationary tendencies. The aim of raising
1913.
all ships of the Germany navy; and the author
distinguished honors both in Europe and in. his
country.
His books, "as they appeared," states an
placed
Treasury in Washington currently: is much per¬
startling growth of illegal distilling and of the
designed to bring in some $27,000,000,000 of annual rev¬
enues.
We are told by Secretary Morgenthau that this
and the last in
fluence of Sea Poiver upon History, 1660-1783" this theory
almost immediately attracted the support of Theodore
Roosevelt; Kaiser *Wilhelm *H directed thaU it and a sub¬
sequent volume, "The Influence of Sea Power upon the
French
Revolution and Empire, 1793-1812"
should be
over a
surreptitious, tax-free distribution of .such distillates.; The
^quality," says the "Review."
It high taxes on alcoholic liquor begin to defeat their own ends
i adds that retail trade is contin¬
and the Treasury impost simply is being evaded by the
uing the same brisk pace in Feb¬
bootleggers.
ruary.
These are instructive developments at a time when, the
famous series of historical works, the
1890
"a good deal of this activ¬
ity probably due to the fact that
every time production of an ar¬
ticle is curtailed or stopped a rush not immune from psychological and other reactions which
to buy that product occurs."
De¬ affect Britons in a manner that tends to defeat a stated end.
partment store activity was 32%
In the field of taxation the law of diminishing, returns
higher than a year ago, and there
was a gain of 40% in the sales of
operates with special efficacy and with a grim directness
principal apparel stores, "sub- that often has left the devisers of taxes wide-eyed' and helpr
uary,
Thursday, March 12, 1942
Editorial-
Editorial—
of
peak
& FINANCIAL CHRONICLE
means
recoils
from
He saw clearly the
he foresaw the direction of events,
long the line would be, how the
■ course
of events would be retarded, how protracted the issue,
he could not foretell, because no man could foresee the supreme
genius of Napoleon Bonaparte."
the
apprehension of the truth.
line of Great Britain's action,
he foretold the issue.
How
\
It
was
Admiral
Mahan's
theory, that
all important
could be made to conform to the formula
suggested
of taxes in the present war
by the foregoing.
Such lengthy quotation is warranted,
everyone instantly must be
hearty agreement, and there is equally little quibbling therefore, by the fact that the principles of warfare which
wars
They
the restraints on undue inflationary phe¬ he proclaimed have suddenly come under attack.
have long controlled British and American practice, they
nomena which such a program might impose.
But the Treasury and Congress might well pause, as guided those nations to the! successful termination of the
First World War, they are apparently 'being taken for
they study this tax proposal, and consider the law of dimin¬
granted at the present time by the leaders of both countries
ishing returns. Many a business has been taxed out of
and are being applied against the Axis powers throughout
existence in the past, and many a Boston Tea Party has
to be done over
resulted from unfair levies.
There is
of predicting
laid before the
no way
both
upon all the
Lieutenant-Colonel upon
Hemispheres and
navigable
seas.
But
the active list of the
Army of the United States, W. F. Kernan, and, in a book
country, for there is simply no precedent for the extent and
that is being widely read
range of taxation asked by Mr. Morgenthau.
Certain ten¬ (Defense Will Not Win the and ought to be widely read
War), categorically insists that
dencies nevertheless are evident, and they suggest the need
"Mahan was wrong," arguing confidently and boldly for
of caution if not of substantial revision of the tax program.
immediate adoption of an entirely different and conflicting
Taxes are an inescapable and, indeed, a first charge
upon any honest business, and they enter into the prices, of
in several ways.. The incentive to make profits would be
honestly made products. Price advances which verge on
inflation well may follow for this reason alone, if the tax seriously diminished, which is a factor that operates in the
rise is not carefully and prudently effected. The levies upon higher individual income brackets with the same effect.
individuals are so harshly raised,: in the middle-income Prudence is displaced by carelessness as to economic opera¬
groups, that extensive borrowing to pay the tax bill may tions,, if savings are not retained in any event by the savers.
become unavoidable, and such borrowing would be infla¬ The whole program begins to be suspect if large groups of
the population continue to remain outside the tax sphere
tionary.
:
v
Raising of the corporate tax levies to the heights sug¬ through personal exemptions, and the reaction of this upon
gested by Mr. Morgenthau might defeat the Treasury aim the groups that find their taxes multiplied is plain.
the
ultimate
of the proposal
effect
.
-
-
now
now
comes
a
Volume 155
Number 4054
THE COMMERCIAL & FINANCIAL CHRONICLE
policy against Germany, which he singles out as the enemy
at the
present time to be chiefly considered.. Specifically,
his program would demand forthwith
moving an American
Expeditionary Force across the Atlantic and through the
1043
relationship of sea power to eijnpire—not the brittle pseudo- | tries -of certain communities, the
empire of the Mahan theory," but the solid substantial danger grows that war production
may be seriously curtailed.
imperium
•. of Rome." ' ':
^
-:
I
It has, been estimated that em¬
.
.
f >;
Here are two diametrically opposed doctrines, both ployment in defense industries,
Mediterranean, to be debarked upon the cost of Italy, which plainly applicable to an existing warfare and demanding al¬ which already aggregates some
he describes as the "Achilles heel of
Germany," ""the solar- most instantaneous decision between them. For acceptance 5,000,000 workers, will be tripled
when
war
production is at its
plexus of the Axis." Japan, in his -view; is of merely of either is final and irretrievable rejection of the other. It
maximum. The armed forces will
secondary importance, or less; He declares that "we must is significant and important that the demand for a course of require more than 2,000,000 addi¬
strike towards Europe," "we must strike "soon and
hard," action different from - that apparently-being pursued'eman¬ tional men over the next year, it
and there should be
is said.
no doubt as to where the first blow
Obviously, if care is not
ates from an officer of
the; Army whose exceedingly wellshould fall, because "every sign
post of victory points to¬ fcumulated' arguments demonstrates long and profound exercised, armament plants will
presently
be
attracting
many
wards Italy."
And, although it may be necessary to equip study in the technique and
history of warfare. It is not qualified workers from other war:
and launch two
for any one less instructed tb
expeditionary forces and prepare two of¬
attempt to choose between industries through offering higher
fensives, one against Japan in addition to the primary ef¬
against Germany, that against' the Asiatic empire must
be kept so far secondary that never shall its
strength be
comparable with that sent directly against Hitler, through
Italy. "We must launch a major offensive in Europe. "We
must strike at Adolph Hitler.
On no account must we let
the war with Japan deflect us from our central
purpose
the
weaken
or
our
Although
pay
trine
ready,
application to the imminent national need of the doc¬
so
thoroughly elaborated by Admiral Mahan and
generally accepted at home and abroad, and the radically
different doctrine so
attractively and ably argued by
Colonel Kernan.
Yet it may* well be wondered whether
the emergence from such a
military source of aft argument
so plausible and so
thoroughly documented does not indi¬
fort
main effort.''
cate
Colonel
Kernan concedes that the plan
,'which he proposes may require enormous sacrifices, "sac¬
rifices undreamed of by our heroic forefathers," he
appears
to be convinced beyond
any residuum of doubt that already
the force of the Axis powers has been
largely expended,
that they are severally and
jointly at least at the stage
Which is the very verge of the exhaustion that Admiral
Mahan represents is the end which sea
power should be
relied upon to produce in the countries dominated
by any
restlessness
some
within
the
armed
forces
methods which appear to
other
and
.
The State Of Trade
inducements.
stated,
are
communities where
it is
reported
that openings exist at high wages
in
newly completed factories. It
is pointed out that not only does
such labor
migration disrupt
but
it
gives
supply
workers
that
of
to
the
a
experienced
withdrawn
is
porarily from
supply.
'
pro¬
rise
nation's
tern-*
labor
/
v
III! Defeats Hove To;.
Suspend 48<Heur Week
By
overwhelming vote of
62, the House on Feb. 27
defeated a prbposal to suspend
an
226 to
the 40-hour work week and
over¬
time
provisions
of
17
Federal
laws for the duration of the war.
The proposal sponsored by Repre¬
sentative
offered
Smith
as
(Dem., Va*) was
rider
a
tb
the
Second
War Powers bill.
after
Rejection
opposition
to
strong
Smith's
amendment
was
came
Mr.
voiced
by Administration leaders and by
the
heads
eration
of
of
the
American
Labor
and
the
„
♦
Al¬
workers
leaving jobs in essential indus¬
tries in large numbers to flock to
under duction,
floating
involve wide dispersion of mili¬
tary and naval energy ahd( the scattering of available
strength upon many separated fronts. At any rate, dis¬
cussion, unless it is too greatly prolonged, can scarcely
produce anything except good.
Those principles of" action
which are too easily regarded as established
beyond the
need of re-examination may; if they were originally ap¬
plied without recognition of their limitations or when
conditions have radically altered, prove to be most dan¬
continental
aggrgssor. Germany he describes as "bled gerously, even fatally, misleading.
white" by the losses of the unproductive Russian
campaign
in which she is still involved, as
"bogged down" upon that
front and already in the most critical moment pf the whole
Conflict,' as not now daring to relax her efforts in North
Africa, as having reached .the extremity of attenuation of
Business reports generally continued to reflect the increasing
her air forces which still permits them to be
soundly em¬ tempo of industry. Most of the larger industries show further ex¬
ployed. Japan, in his view* has been "gutted" by her decade pansion, being; especially noticeable in steel. Steel production in
the United States reached a new jail-time/high this week with the
of war with China and is
suffering the penalties of "econ¬ average of plant and furnace operations at
97.4%, according to the
omic strangulation" and possession by "the
eviscerating American Iron and Steel Institute's latest announcement. The in¬
demon of militarism," while as to Italy, the Italians are dustry's annual capacity is 88,-^
—■■.1
1
1
1
f'heartily sick" of the war and of their chief ally, disgusted 566,170" net tons. Operations last/plants will be going on longer
week were at 97.2% and a month hours, thus offsetting the civilian
with both Mussolini and Hitler, and therefore
ready and ago the indicated rate was 95.5%. decline, observers state.
anxious at the first opportunity to rid themselves of both.
The retail trade failed to record
A sharp rise in industrial activ¬
His argument is, in part, as follows:—
any appreciable rise in sales vol- ity is expected during June, when
is
it
gress
Prior
Fed¬
Con¬
of Industrial Organizations.
to
this
vote
various
com¬
promise proposals were rejected:
Organized
labor's
opposition
was
set forth in
William
telegrams sent by
Green,?: AFL
President,
Philip Murray, CIO head, to
Representatives McCormack, the
majority leader, and Martin, the
minority
leader.
Mr.
Green's
freight for
telegram
said
that
the
Smith
"The Italian peninsula,, as anyone can see by a glance at the ume during last week, according many
temporarily
unemployed
will
have
been
re¬
map, lies in the strategic center of that world island which Hitler to Dun &. Bradstreet, Inc., and persons
aspires to dominate.- ; Without Italy, German influence over this despite the fact that spring absorbed and new war plants will
:
and
Spain and Vichy-France is weakened, the Balkan conquests ren¬ buying appears to be developing go into operation.
dered insecure, the chains loosened on the limbs of Greece.
Retailers reported con¬
And steadily.
Loadings of revenue
tinuing signs of a moderate re¬ the week ended Feb. 28 totaled
^
with Italy in the hands of' the enemy, Turkey will surely
amendment would not
lengthen
join the Allies, and the Dardanelles, back door to Berlin, will be action in some. lines "from the 781,419 cars, according to reports
working
hours
since
there
is
V thrown wide open. . . . Italy is the
solar-plexus of 4he Axis, and heavy stock-up purchasing that filed by the railroads with the
nothing in existing law prevent¬
a right recognition of the tremendous opportunity involved re¬ got under way in January.
How¬ Association
of
American
Rail¬
ing
workers
from
being
em¬
quires that we undertake immediately, without a glance at Dakar ever, the Federal Reserve Bank roads. This was an increase of
ployed: for more than 40 hours a
?■;? or Martinique or North Africa, the stupendous, breath-taking, of New York reports that depart¬
6,824
cars
o.ver
the
preceding
.
'
]
.
.
ment store sales in New York and
history-making task of the invasion of Italy."
*
This
conception, if it is soundly grounded and practi¬
cable, is not less than Napoleonic. Colonel Kernan estim¬
ates the force required as commencing with 200,000 men,
another 200,000 to follow every month until the achieve¬
ment of victory.
He asserts that the first 200,000 are at
this
moment
available
for
one
month's
battle-training,
while transports are
being assembled at the ports of em¬
barkation, and that the follow-up forces, 200,000 men
monthly, can be made ready in strict accordance with his
schedule.
In
addition
to
these men,
munitions and subsistence: which
and the supplies of
they would require, the
plan would call for utilization of three-fourths of the whole
American fleet, at least half of the British fleet/*
every
transport ship controlled by both of these nations, and also
every one of their bombing, planes.
Withsuch support,
sound initiative, resourcefulness, and courage, it is his
opinion that no opposing force which is available could
prevent landing of the expeditionary forces.
He is so sure
of this that he insists that the program could be
published
to all the world, especially to Hitler, Hirohito, and Mussolini,
without any impairment of its potentials of-success.
His
words
".
,
are:—
.
,
.
military or naval effectives which they could muster,
which it is within their grasp to take, could
by one second or narrow the scope of our effort by
one inch.
For Hitler has finally miscalculated, the German Army
has over-extended itself, and the only hope for the Axis is that
no
counter measure
slow
r
no
.
us
up
America, having persistently and stubbornly followed the wrong
road for the last twenty years, will be unable to recognize the
right road until it is too late to take it."
Of
.
;
the author does not contend that
Brooklyn
for
the
week
week.
week
ended than
this
year,
24,749
cars
more
the* corresponding
of
Italy would be the end.
mere
It would supply, however,
that
added
was
the
"absolve
to
real
em¬
'
continues to be maintained in the
face of.conversions
rials.
to
...
war
mate¬
v
Overall industrial
activity shows
acceleration, notwith¬
standing temporary readjustments
involving suspension of operations
as
plants change over to war
further
work.
serve
The
adjusted
Board
index
Federal
of
Re¬
industrial
comparative of 2,993,253,000 kilo¬
Ratification
of
the
agreement
watt hours.
terminating
the
100 - year - old
The Bell System companies re¬ boundary dispute between Ecua-\
corded, a gain of about 109,900 dor and Peru was hailed by Sum¬
telephones during February, com¬ ner Welles, Acting Secretary of
pared with 109,500 in January and State, on Feb. 28.
The agreement
118,600 in February 1941, it was had been worked out by the For¬
announced recently.
These prin¬ eign Ministers of Peru and Ecua¬
cipal operating subsidiaries of the dor, in conjunction with represen¬
American
Telephone and Tele¬ tatives of Argentina, Brazil, Chile
graph Co. had an increase of 216,- and the United States, at the re¬
of the 1935-1939 average in Jan¬ 500 instruments during the first cent
Inter-American
Conference
uary, is estimated to have gained two
months
of
1942, compared at Rio de Janeiro.
another point or so during Febru¬ with a gain of 247,800 in the cor¬
In commenting on the termina¬
tion of the boundary controversy,
ary.
Industrial activity is ex¬ responding period of last year.
At the end of February there Mr. Welles said:
pected to hold at an even level for,
another month or so, as the rapid were about 19,057,900 telephones
The final solution of this long
expansion in war production is in the Bell System*
pending controversy is a matter
offset by curtailment in civilian
of deepest satisfaction to the
It
is
becoming
increasingly
Government
of
the
evident that there is a great need
goods production.
United;
:'; ,
One measure of the conversion for a national labor supply board
States.
It
affords
a
further
of civilian plants to war produc¬ to assure efficient utilization of
proof of the ability and deter¬
production—which reached *170%
seiz¬ tion is the volume of
temporary the labor resources of the nation.
unemployment caused in such dis¬ The situation becomes more and
During January,
for more acute as the war effort ex¬
the essential continental base for major operations on land locations.
Federal : Works pands. With unnecessary migra¬
that would be required, according to his doctrine, for com¬ example, *the
Agency reported 1,000,000 work¬ tion of workers seeking higher
plete success.
From that base, not isolated from the fleets ers with job connections but not wages in new arms plants, by en¬
of the United Nations, or from those of Great Britain and working. This compared with half listment in the armed forces of
number
in
the
previous valuable employees and by re¬
the United States, but in sound co-operation with them, that
month. The volume of dislocated gional
labor
shortage
resulting
the war would proceed to the invasion and defeat of Ger¬
Workers is expected to rise. On from the very rapid expansion in
many.
"This,"- he continues, "is the real meaning of the the other hand, employees in war personnel needs of defense indusure
course
He
purpose
week in
ployers of sweated workers, who
March 7th, were up 23 % over a 1941 and
146,783 cars above the do not have the
protection of
year ago. This would seem to in¬ same period two years ago.
unions, of the requirement of pay¬
dicate" that" there is little or no
The total was 126.97% of aver¬ ing such workers overtime rates
slackening of consumer buying
age loadings for the correspond¬ for work in. excess of 40 hours
a,
despite the imminence of income
ing week of the ten preceding week."
tax payments.
years.
Mr. Murray declared that "the*
In wholesale lines trading ac¬
Electric production declined 0.4 sole effect of the
proposal would
tivity was termed irregular, re¬ of 1%- in the week ended Feb. 28 be to increase swollen
corporate
flecting both a more cautious at¬ to
3,409,907,000 kilowatt hours profits to excessive heights."
titude toward further large scale from
3,423,589,000 in the previous
commitments among buyers and'
week, according to the Edison Hails
the increasing tightness of sup¬ Electric
Agreement On
Institute. The latest out¬
plies. Industrial output meanwhile put was 13.9% above the 1941
Ecuador-Peru Frontier
mination
of
the
American
re¬
publics to settle all disputes be¬
tween them by pacific methods.
It
this
able
has
been
a
government
for
have been
privilege
to
association
in
with
the
Argentina, of
Brazil and of Chile to partici¬
governments
of
pate in the extension of its good
offices
in
settlement,
furthering this final
uw.it" iwv-ic : y
et
the
i
Bill Is Passed
By House Raising Debt Limit
To $125 Billion To Cover Country's War Needs
to
increase
not foresee then that we would
be
in war that would
require our all-out effort.
Our
defense program at that'time
amounted
to
approximately
unanimously approved by the House Ways and
March 6, after Secretary of the Treasury Morgenthau had appeared before the committee on that day and advised
them of the urgency in promptly enacting the measure.
The House
was
Means Committee
on
ment
to
Carolina, Chairman of the
which
we
Ways and Means Commit¬
tee.
Morgenthau
Secretary
nounced
000
Feb.
on
•
and
25
rapidly
was
v
sale
of
the
raised
1
250
'v
Treasury's
Feb.
^ the
:
powers
because of
of
defense
bonds,
now
has less than
$2,000,000,000 of borrowing authority left.
a*:
Committee
27
Feb.
on
the
to
statement
his
In
in
gress
end of
would
that
The
limit
debt
national
committee
6
Mar.
on
Secre¬
Morgenthau, reviewing the
Treasury's over-all fiscal opera¬
tary
He
enue.
eral
y
said
in
to
answer
learned
accounts
its
the power of
issue
public
way
he
;
just getting under
with the voluntary basis,"
said.
"All
that " the
•
respond in
.
indications
people
a
big
to
y:
can't have a forced basis and a
i voluntary basis—they don't go
hand in hand.
•
"If the time
,'
fearful
that
enough
;
on
w-v
comes
we
•
•
■
before
that I
can't
get
It
the voluntary basis,
that the
Government had borrowed $4,-
'
said
end
■'
that
the
authority
borrowing
'
will be insufficient to
quired
Besides
limitation
bill
increasing
to
proposes
the
debt
$125,000,000,000 the
certain changes
in
this
debt
issues
that
during
cover
will
the
be
month
the
re¬
of
April.
In
January, 1941, I appeared
your committee in sup¬
port of a bill to increase the
total borrowing authority from
before
$65,000,000,appeared at that time
$49,000,000,000
000.
that
000
able
It
a
to
limitation of $65,000,000,-
would
the
be sufficient
Treasury
to
to
en¬
finance
discount basis or
interest-
on
a
We also
issue savings
discount basis.
But
additional authority would
give the Treasury more flexi¬
bility and permit it to design
its
conform
to
issues
more
the investment re¬
quirements of particular classes
of purchasers.
TV A*'
closely
to
.
2.
The Secretary of
the Treas¬
would be authorized to ac¬
cept in his discretion obliga¬
tions of the United States which
are.
redeemable upon demand
ury
payment of any taxes, im¬
posed
by the United States.
This, in effect, can now be
accomplished by the holder of
such obligations turning them
in to the Treasury and getting
the
cash and then using the
in
of March it is anticipated
300,000,000
through
defense
savings bonds since last May—
a
combination
only if the maturity date
more than one year after
bonds
The balance
authority at
the end of February, 1942, was
about $1,400,000,000.
By the
;;
on
a
have authority to
urgent that this bill be
is
of the Treas¬
their date of issuance.
'yV
$1,000,000,000 being obtained in
January—and that 68% of all
companies in th®. United States
employing more than 500 persons had
inaugurated a volun¬
tary payroll deduction program
to
facilitate
purchase of the
bonds and defense stamps.
•.
The Secretary
'
taxes.
The new
authority would simplify the
procedure and would make it
more
convenient to the / tax¬
cash
to .pay
in
months
funded.; ■
'
4. A provision is included to
to
bonds.-
Many
3.
The
Secretary
authorized
to
offer
would
any
be
new
obligations
in
ex¬
change for outstanding obliga¬
tions of any agency or instru¬
mentality of the United States
Treasury
as
1934,
was
intended
permit the Treasury to buy
any of its securities in the mar¬
of
at
before
or
maturity
out
the
proceeds of any public
securities previously sold.
debt
The present language,
is
nesses
program
we
are
bur endeavor to fi¬
would be authorized to transfer
ously
in
nance
the
liability
for
outstanding
postal savings stamps to the
Treasury, and his authority to
issue
such
stamps
would be
the
outstanding
stamps will
public debt obliga¬
such
and such
redeeming
a
tion.
When
ent
initiated
we
defense
year
able
program
deemed
it advis¬
facilities
the
of
savings system be¬
already issuing
postal
it
pres¬
savings
we
utilize
to
our
was
savings stamps and had the fa¬
cilities for immediately carry¬
ing out an expanded program.
The
question
is now
often
raised by the purchaser of pos¬
tal savings stamps as to whether
the funds thus provided go into
much
program as
preventing inflation.
makes Treasury
savings stamps available to the
Treasury
public under section 22 of the
Second Liberty Bond Act,
as
amended.
The Treasury
will
then
assume
the liability for
war
possible from current sav¬
ings in order that our fiscal
operations may be a positive
force in winning the war and in
as
of the date when
.as
the facts squarely,
working continu-
facing
are
and
the
terminated
'
'
Treasury has a tremen¬
ahead of it. No
one
appreciates the magnitude
of our problems better than
those of us in the Treasury. We
General
Postmaster
•
The
dous
language in that section.
The
will
plans.
ambiguous and might be in¬
already
practically all busi¬
have adopted these
few weeks
however,
terpreted to mean that the au¬
thority may only be used, in
effect, for the exchange of one
security
for
another.
This
amendment
would
clarify the
5.
have
tions
to
ket
savings
purchase
business instituadopted
such plans and the number is
increasing each week.
At the
present time nearly one-half of
all
persons working
in trade
and industry have this method
for buying savings bonds avail¬
able to them.
It is hoped that
within the course of the next
z
originally
which
in
we
Eductions
clarify the authority existing in
Liberty
Act,
invest¬
Within the last few
have inaugurated a
plan for voluntary payroll de-
in the same manner .as
Treasury securities are now re¬
;
Price Control Is Not
Anti-Trust Violation
Any
made
that
danger
agreements
by industry members with
the Office of Price Administration
pursuant to the Emergency Price
Control Act of 1942 would violate
anti-trust laws is removed by
the
terms
of the Act, Price Adminis-v
trator
Leon
Henderson stated
March
9
raised
recently.
said:
in
on
queries
Mr. Henderson
to
response
-
Such agreements are now au¬
thorized
The
.
Act
by
of
Congress.
Price Control
Section 5, speci¬
Emergency
Act of 1942, in
fically provides that ". . . the
Administrator is authorized
,..
the
of
helping to
pay
Of
tional defense.
funds do
ury
that
the
for
Treasury
purpose
for the na¬
course
ments or
such
into the Treas¬
come
to enter into voluntary arrange¬
..
purchaser
of
view
fense
ried
the
fact
in
on
that
the
In
the
that
the
its
clarify the
whole
program
if we could
eliminate postal savings stamps
These
be
ance
stamps
through
new
sold
in
concurs
this
proposed
change.
6. A provision is included to
the
tax-exemption
remove
privileges
income
on
from
shares of stock issued by Fed¬
eral
agencies
which
talities
and
were
instrumen¬
inadvert¬
omitted from a similar
provision in the Public Debt
Act of 1941.
This would put
ently
same
shares
basis
of
as
stock
on
the
obligations issued
by the United States and by its
agencies as provided in the Act
enacted
last
year.
With this enlarged borrowing
program
before us it is neces-
own
":V
proceed, under
complete
to
power,
with letters from the At¬
General
torney
mission
post offices as well as other
agencies. The Postmaster Gen¬
eral
/-'-iv
.
agreements which will prevent
undue price increases.
Form¬
erly we had acted in accord¬
and issue instead Treasury sav¬
also
associa¬
to
tration may thus
Treasury, I be¬
could
relating
The Office of Price Adminis¬
car¬
it would
ings stamps.
agreements with any
persons, groups, or
Act.
de¬
is
program
.
the fixing of
maximum prices, the issuance of
other regulations or orders, or
the
other
purposes
of
this
some¬
for
understand.
to
savings
lieve
is
difficult
little
a
it
but
purpose,
.
tions
and they are available for
times
these
payer.
splendidly to our
place these securities
efforts to
in the hands of the real
tions!
cause
At
time we have au¬
thority to issue regular mar¬
ketable securities on a discount
promptly enacted.
of our borrowing
this committee and say-
Secretary
'7
as
bearing and discount basis.
and
.
are
the present
useful purpose.
ury.
am
these
Briefly,
(The American people are
ing public.
the
on
I
condition
before you proposes
bill
curities
the attention of the
the public the
of the public treas-
Congress
ing so."
The
serves a
*
would be authorized to
issue Treasury marketable se¬
this
debt.
S
000,- and in the month of Febapproximately $700,000,responding
guaranteed obligations
exchange for such obliga¬
tation.
1.
have
public
the
to
•
"
ury
It brings to
.
V I'd like the privilege of coming
f-i
spect
-
follows:
Bond
favoreil
I
that
think it
/>
;
1
you
I
occasions
necessary,
,
of these
last
is not
previous
;
directly to the holders
curities
the
a
month.
In
December we
I ruary
-000.
-
financing operations in addition
to the increase in the debt limi-
periodic review by the Con¬
gress of the situation with re-
and you
way
.
basis
stated
are
going
are
indirectly
This pro¬
posed amendment would sim¬
plify, these operations and per¬
mit us to offeir " Treasury se¬
of
sold
$500,000,000, in the month of
January more than $1,000,000,-
Treasury security.
a
become
000,000 to $125,000,000,000, and
provides greater flexibility to
enable the Treasury to conduct
its
war-financing
operations.
are
to refund them
stamps
Act, as amended, from $65,000,-
On
that
effort
an
debt
the authority
of the Treasury to conduct Its
the Treasury to
debt obligations
under the Second Liberty
Mar. 6, from which we also quote:
"We
before
this
The
?
appearing
am
quantities of
certain changes in
Washington bureau.
I
Washington
month
are
enemies.
today in support of H. R. 6691
which raises the limitation on
a
$300,000,000
ties
should frighten no one but our
were
1
materials,
sug¬
production
our
overwhelming
war
worth
As I have
end.
before,
makes
from
The
following
is
Secretary
Morgenthau's statement in full,
as
contained in advices to
the
New York "Herald Tribune" from
Associated
from
from
1941.
the
in
of
instrumeninadvert¬
and
which
of
it
that it will be
know
we
be, we
it.
We are
bear it, and
may
to face
enough to
strong
by Fed¬
issued
the cost
ready
are
gested
income
people
Whatever
provision to
tax-exemption
on
Congress: and the
have
dedi¬
themselves, namely, the
of
winning
this
war.
task
of
agencies
talities
Act
by Representative Rob¬
ertson (Dem.), Virginia, that he
hoped the committee would not
"force
on
me
forced
savings."
is
by the great task to
the
cated
amended.
.the
•
5these figures are high
amount,
they
are
made
which
makes
ently omitted from a similar
provision ; in the Public Debt
question
Press
as
of stock
shares
tions, expressed opposition, at this
time, to any plan of "forced sav¬
ings" to obtain additional rev¬
This
of
Act.
re«iove
in
.
the
22
the
While
public
6. Inclusion
was
to
of $110,400,000,000.
1943,
in
under sec¬
the Second Liberty
privileges
1940 from $45,000,000,$49,000,000,000 in order to
provide for issuance of $4,000,000,000
of
short-term 7 defense
obligations,
and
in
February,
1941, the present limit of $65,000,000,000 became effective.
During his appearance before
000
tion
Bond
,
raised
the
in
$39,800,000,000
and
leave,
us
a public debt on June 30,
postal
/Treasury
to
June, 1943, the public debt
approximate $110,000,000,-
'600.
the
increase
with
or
American
able
the
at
estimated
-
public debt for the fiscal year
beginning July 1, 1942, based
on these estimates, will thus be
Treasury savings stamps avail¬
President
January,
estimated
-
enacted
The
cur-?
.
guaranteed securi¬
issued, it is now neces¬
Bond
budgetary revenues
$7,000,000,000 from new tax
legislation, will amount to $35,400,000,000.
We will also be
required to raise $4,400,000,000
for governmental corporations.
savings
stamps to the Treasury, his au¬
thority to issue such stamps
being terminated as of the date
.when
taking
the
approximately $4,300,in cash through the
'} 000,000
:
under which
of -
previously sold.
outstanding
after
from
the'people.r We
these 7 sale of these securities.; Up to
Dec. L just prior to the attack
agencies into Treasury securi¬
on
Pearl. Harbor,
the v sale of
ties, but* in' view" of the /lan¬
these securities averaged about
guage
of the various statutes
anteed
additional
of
are
at
ceived
re¬
guar¬
section 19 of the Second
necessary
for
April."
;
In his budget message to Con¬
Roosevelt
market
in
beginning
year
1,-1942,
July
the
the
in
*
estimated >deficit
fiscal;
Authorizing the Postmaster
General to transfer the liability
of
month
the
during
of
process
into consideration contemplated
5.
1942, was about
in
the outstanding
obligations
of
.
-
v any
which
States
1942, will amount
30,
$70,600,000,000.
The
the
of
ceeds
curities
the debt issues that will be
required
to
out¬
of
June
on
On'the basis of
estimates the public debt
these
maturity out of the pro¬
any
public debt se¬
before
Mor¬
$1,400,000,000."
"By the end of
March," he went on to say, "it is
anticipated that the borrowing
authority will be insufficient to
cover
for
-
instrumentality
Clarifying
securities
genthau said that "the balance of
oiir borrowing authority at the
iend of February,
of
1934, was intended to permit
the Treasury to buy any of its
House
Mr.
quired
authority
existing in--section 19 of the
Second
Liberty
Bond
Act,
which as originally enacted in
Treasury
-
v'
their activities.
4.
increasing
the
automatically
value
interest-
est.
borrowing
reserved
be
''must
•"
25.
will
30
600,000,000
and,
in'i addition,
that' the Treasury will be re¬
guaranteed by the United States
as to
both principal and inter¬
$62,252,495,Since part of the
to
debt
also
are
funds
its
have, therefore, materially ex-*
our
campaign to sell
defense savings bonds.Since
last May -1, when the present
defense savings bond program
was
inaugurated, we have re¬
•
We
ever/that the
-panded
r
by purchasing the guaranteed
security and selling the holder
June
basis
obtain
rent income of
*
guaranteedM obligations ■ and
now
provides them with funds
by purchasing their- securities/
funding
than
more
Treasury exert every effort to
<
,
* over
sary
ending next
amount to $18,-
to advance to govern¬
mental
corporations
approxi¬
mately $3,000,000,000 to finance
agency
or
the
United
issue, and
bond
new
a
combination
a
gations in exchange
standing
obligations
jump resulted from the recent
>
discount
a
imposed by the United States.
3.: Authorizing the Secretary
to offer any new Treasury obli¬
big
the
said
on
in his discretion obli¬
the United States
which are redeemable upon de¬
mand in payment of any taxes
issue, page 672.
Respecting the
debt figure of Feb. 25j Associated
Press advices Feb. 27 stated:
Treasury
on
marketable
Treasury
sary
f.
~
The
, iall
the
financing ; of the various
governmental agencies which
formerly
issued 'marketable
has- taken
current fiscal year
Secretary
to accept
or
The
early- in January
Congress
gations
be removed altogether,
and this was noted in our Feb. 12
.
the
fol¬
as
now
•
corporations.
The 1943 budget submitted to
from
v2.t Authorizing the' Secretary
early
in ; February
that
the
Treasury might request that the
debt limit be raised to $110,000,-
C
commitments
bearing and discount basis.
the limit due * to heavy
expenditures.
He1 disclosed
000,000
issue
or
-
nearing
war
to
the
Authorizing
securities
$62,250,000,-
surpassed
briefly
quote
■§ exceeds
exclusive
of
by governmental
; *"•
-*
program
f't $140,000,000,000,,
and-interest.
principal
indicates that the deficit for the
1.
an¬
Feb. 27 that the Fed¬
on
debt
eral
of
(Democrat)
Doughton
House
war
lows:
tative
North
committee
the
<
The
recommendations.
and
action
speedy
engaged
$28,500,000,000 ' in
appropria¬
tions,
contract
authorizations
in dis-<^
the Treasury's authority incident
posing of the bill, passing it on
the
conduct of
its financial
March 10 by a vote of 367 to 0. to
Mr. Morgenthau de¬
The bill was introduced in the operations.
House on Feb. 27 by Represen¬ tailed these changes in his state¬
took
also
„
the
.
to? T both
States Tlas
Treasury-
some
by
guaranteed
are
United
present fiscal year and provide
margin.-:- But. we -cOuld
;
>
$125,000,000,000
which
budget
embodying the Treasury Department's recommendations
the national
debt limitation from $65,000,000,000 to
The bill
estimated\ deficit in .. the
until: the f'end ' of /'the
'
Thursday, March 12, 1942
FINANCIAL CHRONICLE
THE COMMERCIAL &
1044
to
granting
make
such
per¬
agree¬
ments. Under the new statutory
y
procedure the Attorney General
is furnished with a copy of the
agreement after it has been en¬
tered into. While we shall con¬
tinue to work in close collabo¬
ration with the Department of
Justice, the protection afforded
to
our
voluntary
agreements
with industry is now
statutory.
further empha¬
sized that the Office of Price Ad¬
ministration will continue to rely
Mr.
upon
Henderson
wholehearted
tion of industry
be
an
agreements
such voluntary
since the
coopera¬
has been and will
important
aid toward the
type of price control essential to
our war
effort.
-
-
1
Volume 155
i«s4jfiW»«W'Wi v* i -»V t^VUblLt^*W,. w
w
>
rise
THE FINANCIAL SITUATION
i
U'/- .:,.4*4 *4,(Continued from First Page)\x<L.4/;ws ,/W^
•
careful observance of their neutral posi¬
hoped to be an absence of designs upon
themselves by much more powerful neighbors rather than
their own military might which-never could hope to be
adequate if seriously attacked by such countries as Ger¬
many. The United States has never in its history over any
extended period of time, devoted more than rather incidental
attention to armament and preparation for war.- It has never
entered a major war "prepared" in the European sense;
Great Britain has rarely, save as to her Navy, been really
ready for war on a large scale. If this lack of warmindedness, this complacent reliance upon outmoded ; armament
and techniques, or this; want of alertness as to what was
iaking place'in the;world; is ^otx>midered "softness"; oij
regarded as indicative of having "gone soft/4 there are a
number of
"democracies" which must plead guilty / as
depended
upon a
tion and what
was
-
.
qf Hitler,, and \yhateyer may be happening there now,
likely to "question the emphasies during the past,
half-dozen years upon.-hard, consistent work,' abundant
production and frugal living. True, as judged by our stand¬
ards, a disproportionate share of the effort, a cruelly dis¬
proportionate share, has been devoted to machines of
destruction.
True also, as judged by our standards, in¬
human effort and excessive sacrifices have been required of
the people of that country.
Such things, however, whether
we
like, them or not, are facts of vast international sig¬
nificance both in peace and war. The Japanese effort for
years past, perhaps from the beginning of her industrial
career, has, broadly speaking, been of the same sort.; There
may have been less compulsion, or less obvious compulsion,
but (hard work, vigorous initiative and frugal living in
Japan have long been a thorn in our industrial side—and
have made and are making her military successes possible.
Unethical? Inhuman? Perhaps. But a fact to be reckoned
with; As to Russia—whatever may have been true in early
;charged^althbugh strch ^a process of "going soft" certainly
has no very recent "origin. V. '; . -!
' *J
/
Serious "Softness"'V' V
1/
examination the facts appear to: warrant the
/
.
If ,upon
conclusion that this want of effectiveness was confined to
;
the
military sphere, the significance of the finding must be
regarded as very different from that which must be attached
to, a discovery/that corresponding; conditions have for a
decade or r two at least existed, in- other departments; or
spheres of
our
existence.
.of -course/
•may,
suits.
Neglect of armies and armament
aris^ironi/preoccupation4mth/;bther:pur-j
no
and
human wants.
exceptional
progress
the Soviet rule, it has been plain for
LegisWilliamson
by
Senator
Stephens
Savings Bank
Life / Insurance Systemto - issue
double indemnity for accidental
woiild
permit the
death, waiver of premium in case
of disability,
and an additional
$3,000 of mortgagor term' insur¬
ance to protect home owners
on
the death of the breadwinner
In
this known on March 5
the Savings Banks Association of
making
New York stated:
.;.l;
'
Other
in
included
amendments
the
bills
designed
are
to
clarify
the
language
of
the
existing Act or to make .more
understandable
and
practical
.
of
One
much
-
routine
the
of
some
functions.
would
eliminate
these
unnecessary
expense
enabling an - issuing
issue a single policy
by
bank to
up to $3,- '*
000, but reinsuring all amounts
in excess of $1,000, instead of
-
the
of their lives.
ourselves?
Certainly
no
the
basic
-
some
para¬
reductions
in
as
one
form
was
the
r
and. the
Popular Front in France—to
tion
an
the British have
is
cretainly
as
succeeded,
or are
succeeding in doing
yet not altogether clear.
general attitude toward work which said, that until Pearl Harbor
we
so,
Savings Bank
Life In¬
Council—an
organiza¬
of
composed
In
to
issuing
the
also states:
>
addressed
the spon-
memorandum
a
the
•
legislators by
soring groups, it is pointed out
that the changes asked for in
;
opportunity to redeem herself. The degree in which
no
of
The association
>
outstanding case or two. After early 1940 France
briefly
had
be
are
-j banks throughout the State.
but
mention
bills
surance
r;
here
would
cost
trustees
by the
attest conditions in the British Empire in the
selves; sometimes another, as/evidenced in the New Deal
in
sponsored by
the
Savings
Banks Life Insurance Fund, by
the Savings Banks Association
of the State of New York, and
r
pre¬
F.ar East and at times even, upon the British Isles them¬
of
form of dividends
the
The
;
Sometimes
conspicuous.
types were
one
along to policy holders
passed
instances the complacent,
indolent, self-satisfied type was in evidence. In others other
any
economies
operation will result from pas¬
sage of this provision, and that
showing distressing symptoms
general "softness" described in earlier
on
Sponsors of the bill state
substantial
that
.
written
be
4 life.
argument is needed to demonstrate
graphs of this discussion. In
dominant;
,
-
at least prior to the spring of 1940,
all three countries had been
of
.
•
What of Great Britain? What of
Now what of France?
.
\
this
amended
biil
material econ-
proposed
to
"will /lead
4omies
operation,
insure
in the devel•ment of savings bank life in¬
surance,
and greater benefits
It might almost be
in
(
greater
made little really serious
seriously impedes, if it does not preclude, what has always effort to put our house in order. Sufficient time has not yet
been .by progressive and/vigorous peoples
regarded as elapsed do be certain of the extent? of our real progress since
achievement.
;
' !
- ' <"(-•
that date. It still remains for time to disclose how fully
In such a state the public become easy prey to rather
Great Britain and we have eliminated this deep-seated
for
progress
those
who
the
if
ance
this
buy
into
insur¬
suggestions
simple
herewith submitted
.
•
4
State
Assemblyman
shall
surprise
the fact that for. years,
a
March
on
York
present
provision
which /
requires that-the excess over
L $1,000 be issued as separate polnicies written
by other banks in the system.
The reinsurance /
have sufficed. Russia has been productive and hence able to
amendment
retains
the
prin¬
ciple that no more than $3,000
amass the- means with which to give Herr Hitler^and the
or
and
New
lature
had been
to
:sort of progress,
the
and
years
equally clear that a surprising measure of
attending these efforts. No one can pos¬
sibly doubt that herein lies the key to the astonishing suc¬
cess that the Russian
armies have had in holding off the
"wehrmacht." Emphasis upon armament production, even
doubtless at the heavy expense of ordinary goods, would not
introduced
Bills
it has been
success
"Softness" could take the form of a devotion
•
"
in
past,
all-embracing governmental regime in that country
was
in greater and greater degree • centering its attention
upon creative work, that is, production.
For months past
now-
Indemnity
For Savs, Bank Ins.
.
years of
that the
by1 great - pro^ world—the
in the satisfaction of
peaceful pursuits which precludes giving much attention
thought to war even in defense. Other and far more disr
abling forms of "softness" may, however,.afflict a people;
One of them is the absence, at least in full strength, of
"drive," as the psychologist calls it, which keeps the indi¬
vidual insistently and persistently; on the go to reach objec-i
.tives deemed desirable. - A people once restless, ambitiousj
over-flowing with energy, and-determined.to better their
position or condition, may become slovenly and sluggish—\
largely contended^ with things as they are. Indifference^
-complacency, indolence,, and general Shiftlessness crowd out'
•their former vigor and "push." '? Another type .of "softness'1
may-prevail amid the strongest discontent , with conditions
as
they exist. -It takes the form of unwillingness to do those
things which are necessary to /render the state of affairs
really and permanently more satisfactory to those who com-^
plain, a refusal to submit one-self to the discipline, self-!
imposed or otherwise, essential to economic or any other
ant Double
"one is
Defenselessness could be accompanied
ductiveness
1045
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4054
are
enacted
law."
simple-minded professional reformers and shrewd, design¬
"softness", for the duration of and for the sake of winning Draft Bd. Asks Farm Data
ing politicians—particularly, perhaps the reformer-politician
Secretary of Agriculture Wickcertain very quickly, to appear upon the scene—who en¬ a desperate war. Much more time must elapse before it can ard has asked State and county
courage the shiftless to believe that somehow the "world" be known whether the infirmity will return after the war USD A War Boards to provide the
Selective
Service
System
with
owes
them a living and the discontented to suppose that is over and in the course of the
years again place us at a factual data to assist local Select¬
the source of all difficulty is to be found in the manner in
disadvantage in comparison with other peoples who retain ive Service boards in classifying
which goods produced are divided or distributed. The im¬
properly agricultural registrants.
both in peace and war the hardness, the thoughness, the
From the Department's announce¬
pression soon prevails in many quarters, that there is always
ment we also quote:
some way to get much for nothing—some royal road to ease ruthlessness, the willingness to work oiu their own salva-This action was taken as the
and comfort.
Production and productiveness are certain tions with their own hands, the "drive" which, whether to
result of the program of cooper¬
soon to take second place to all manner of schemes to in¬ be admired or
ation
between
the
Selective
not, get things done and people ahead.
Service System and the Depart¬
crease one's share in what is produced and to "regulate"—
These are not, as often apparently supposed, matters
ment of Agriculture announced
better said, perhaps, "punish"—those who by their own
Feb. 17 by Brig.-Gen. Hershey,
necessarily resulting from forms of government. They are
initiative, energy and ability manage somehow to acquire
Director of Selective Service.
in point of fact, probably not even directly related to forms
more
than the average share of current output.
Work is
The War Boards at the re¬
History records many weak, many im¬
as an evil more or less necessary, but to be avoided of government.
possible."Softness" of these types goes deep.. In potent, many peaceful despotisms, and more than one
peace times it steadily undermines the competitive position
vigorous and even agressive self-governing people. | The
of nations so afflicted and lays the groundwork for military
ever present and
growing menace of Germany may well
•impotency when war comes. If not quickly eliminated when
have had more than any individual or group of individuals
-war begins,at spells disaster—assuming, of course, that'the
foe is not similarly afflicted,-.> 4»: 4 "a -v.->■/ -44 :: *•>''/ to^ do with the course of Russian history during the past
regarded
quest of local Selective Service
where;
Boards,, will furnish informa¬
tion on agricultural production
4;.4"Gone Soft"? .4
^
r-
rand
.Here is
the vital question
'j
for, us. all to. ponder, long
still to be, the
Great Britain
carefully; What seems to have been, and
of things in these respects in France,
state
and the United States
over
against that in Germany and
dozen
or
more
the Germanthe World
years.
%'L
i.;
i.
i
ci
Vouraj-o
many years
War, made Hitler and Hitler ism possible.
necessity has made Japan aggressive and hard.
of such conditions may,
c*»'
<C
skills required
will,, be
State
>; ;>:•
5
of
'if
information
.
directly to
and local
Headquarters
boards of the
Stark
Selective Service
by War Boards of the
Department of Agriculture.
The
arrangement with the
Selective Service System proSystem
The want
)({:
The
provided
skills.
these
after
in part at least, be responsible for
TfV
for these farm-
operations, and the avail¬
ability of workers possessing
Ling
The cramped circumstances in which
people- found themselves for
Japan—and even Russia? To be sure, Russia is at present
"softness" elsewhere." As a rule, a people is what it makes
•aligned with the-so-called-democracies against Germany,
;a fact for which we all must be profoundly grateful, but itself, and all peoples must/of necessity work out their
over
the long sweep of the future what takes place in destiny in the world in which they find themselves—a
Russia may well be of fully as much concern to the British world inhabited
by many other peoples. We, all of us, should
Empire—and quite possibly to us—as the course of events be wise to mull these facts over
carefully when charges of
in
Japan' and Germany. As to Germany, whatever may
"softness" are made or cited.
have occurred in that country between Versailles and the
Lot
goals, the size of farming units
required to make a significant
contribution to meet the goals,
,
•
vides for War Boards to furnish
-information
upon
request
and
not to ask for deferment in the
cases
individual
of
registrants.
Each claim for deferment must
be
handled
by
local
boards
Service
on
Selective
individual
merit.
i-r
wrt
;f
J
•
-i,f
>.
'lie*
.
& FINANCIAL CHRONICLE-/
THE COMMERCIAL
1046
of
tale
Singapore,
time to
Sea"; control
*»- the
enemy, even to the extent of al¬
leged-attacks on American>' and'
was-'
also
y
British naval vessels
ern
on
owing to the clos¬
come,
charged
the
with un¬
in -' Hong
Japanese
the ►Burma. Road, supply
route./ When Winston Churchill
speakable
first assumed the office-of Prime
soldiers
Minister, after the fall of France,
he described the events in Europe
as
a
"cataract of disaster."
No
maintained V. by
onetted, he said, and both Euro¬
pean
and Chinese women were
violated in great numbers.
Many
deaths were caused by dysentery
ing of
,
On The Foreign Front
Thursday, March 12, 1942
the south-'
coast of Java, where there is
atrocities
Fifty British officers and
were
bound
and
bay-
Kong.
.
only a single good harbor./;, The
Japanese occupied that harbor- lesser phrase will do to depict
along with the others, and long- the black situation that now con¬ and other diseases, Captain Eden
European Stock Markets
The Japanese provided
range bombers of the American fronts the United Nations in the added.
little or no medical assistance to
and other commands apparently Orient.
1
'
V
Small declines were reported day by day on the London mar¬
were withdrawn
at the last, mo¬
j. The fall
of Rangoon was an¬ the victims of their invasion, ac¬
ket for securities, in recent sessions, owing to the steady succession
ment.; Some Netherlands officials ticipated, and to a certain extent cording to the accounts of eye¬
of unfortunate war developments.
The British market moved al¬
fled the island, in order to con¬
it; was even discounted,; before witnesses who escaped from Hong
most exclusively on the war news from the Far East, and it turned
tinue the fight elsewhere,; but few that capital of Burma passed into Kong.
upward briefly only when vast American convoys were rumored
others
managed to/ escape and Japanese control on Monday. The
to be moving across the Pacific Ocean.
Our Pacific Action
The general tone was dull,
-
,
most Netherlands and other Euro¬
and little business was done.
forces
small. British, defense
not
There Were many and obvious
Barrier, pean civilians were left on Java, only were greatly outnumbered,
repercussions irt Washington/ this
.'/
which fringe the China Sea and by force of circumstances. ;
f but apparently had to fight not
ground better than other sec¬
Far to the /eastward, Japanese only the Japanese, but also num¬ week, of the stirring events in the
make it almost the 'equivalent of
tions, at London.
Industrial;
far Pacific region which threaten
fifth
columnists
among
an
inland lake, militarily speak¬ attacks were resumed and wid-; berless
and home rail shares eased
:
to change the map, unless urgent
ing. All that now remains in the ened, with the obvious; aim of the Burmese.' The torch was put
slightly, in almost all trading 1
and effective measures are taken.
the
of
islands
Gilt-edged issues held their
Malay
,
that
is
mission
American
ail
to
proceeding
the
<
}
aim
of
lessened
gold
production and a greater out- s
put
of
more
useful
war
i
metals.
Rubber, tea and tin ■'?
with
arguing
for
the
region
stocks
Dealings
1
French markets
according to
Issues of 4 and
on
active,
more
were
in demand.
not
were
Vichy
reports.
4%% rentes with exchange guar¬
antees were converted last week,
authorities
sationally
Sinkings
Atlantic
shipping
Atlantic
own
homeland
that
appears
claims
'
upon
the
the
U.
S.
available
facilities
and
to
to
associates
our
The Navy
acknowledges these
losses, it may be added, with more
readiness than is.manifested with
of the United Nations.
1
Department
respect to other important spheres
determined
by the Japanese, early this week,
the utmost.. Salamaua
the northern
vantage to
and
other points on
taken
were
and
heavy aerial attacks on Port
Moresby, on the southern coast;
protracted and foreshadow ar( invasion v there;
The Japanese are only a few hun¬
dred miles from Australia.
Like all other battles in the
far
Pacific,
only
save
tenacious / MacArthur,
the
28
I.
ives,
put
up
an
the
But
ingly
difficult
such
-Yet
with
:
story of this vast and sig¬
nificant struggle is only beginning
unfold.
There;-were mighty;
the
be
battles,
Asiatic Fleets
tions
of
the
United
Scores
tide.
of
assumed,
in
'
\
must " be
nized
the
warships' and
transports
were
sunk, and a huge loss of life re¬
sulted. Some important units of
that
of
to
harborless sea, were quickly
a
evacuated. / British
forces
with¬
the region and moved
drew from
northward, for
a
do-or-die defense
of
upland areas.
They expect to
effect a ;junction with
Chinese
moving southward,
and
hope is not ended.
But the fact
remains that the Japanese have
troops
much
be
for
found
their
in
Burma
on
alternate
and
routes
grasp,
must
supplying
now
China.
;;
*
\
;
Pacific
rich
a
-
j
recog^
ip
re¬
case,
other
against
urally remains
but the
for
cries
of
measures
Axis
the
nat¬
secret,
loudly
military
a
situation
the
and
Japan
of
members
so
that
sort
some
sensational
be
developments can
predicted with confidence. 1
Naval task forces of the United
States
of
extending their sphere
are
action
ever
deeply
more
the far Pacific Ocean.
into
Washing^
Fleet had sunk a Japanese de¬
stroyer and naval tanker, and
had
damaged
by
torpedoes
at
least four other Japanese war¬
ships.
The Japanese themselves
are attesting the growing striking
power of the U. S. Navy, for a
are
northren Burma,
moving
toward
and the issue is
India
of
stirred
into
has
been
ferment
a-
by
'r: nese.
Much
promised
long fight of that Brit-
/ish s.possession
such/
of
don periodicals.
?
No longer is
necessary,
decision
to
suppress
casualty
lists
is
sufficiently
serious,
but
even
more
per¬
turbing
are
uncontested
re¬
ports
by
the
Japanese
that
gusta have been sunk, and
ing at British doors with re-
other
vessels also sent to the bottom in
/ spect to India, such journals
assert.
was
that the cruisers Houston and Au¬
/ it opportunity that is knock;
is
Islands
forces.
truthful admissions
Roosevelt's
freedom.
for
effectiveness
-The
our
more
and
ever,
India
to
Bonin
to
how¬
of
our
own
losses
are
among
the
obvious requirements.
President
propagandists have made
/ in the
the
on
attributed
much of their advantage. Aid
/ "has/ been
reported officially, on Mon¬
day, that submarines of the U. S.
raid
/ these and other events of re¬
cent months, and the
Japa-
the
Fate is battering down
'
ply
•
any
develop
tary stores en route to China on
the
Burma
Road
route.
The
an ample sup¬
those doors, it is contended.
of most vital war materials;
Names of the ships sunk by /;
si The long-delayed solution
of
the
United
Nations
also
went The military capacity of the enethe Axis often are withheld,
j down, although only the Dutch so .my has been strengthened,*to/the -the Indian problem thus is being
for strategic reasons, but the
extent that quick use can be made stimulated, and possibly will have
j far have admitted their losses.;
t6 be effected amid the:* storms
accumulating evidence indi- >
Ships of the United Nations, of the rubber, tin and other essenJ
and stresses of a world conflict,
catesthat the results of the
vastly
outnumbered
and < out¬ tials available in the East; Indies
rather than in the quiet and rela¬
Axis activities in our coastal
in
swept and Malaya. Perhaps even more
gunned
The action which will
Air Force.
Huge fires were set by the Chi¬
and British, to destroy mili¬
nese
4
gion which affords
,
of action.
rejuvenated high commands
Navy, the Army. and the
the
ton
?
of.
has -gained
Japan
Southwest
and
where the British had their backs
f statements cannot be denied
andVi //and is admitted by some Lon- '
London
it
Fighting continues for Burma.
southwest
of
Rangoon,
Strategical
possibilities
were
closely
at
the
White
House and among
the changed
studied
Areas
mat- /
are
Meanwhile,
Na¬
Japanese
I
must
north
the
.
gaining full /
are
examination
attempted to stem the Jap¬
anese
south.
Washington. /
combined
the
as
Z
?
concurrent;
These
..
All
to
islands
units
in doubt.
en¬
made, 4 and v/
main
by the British Em¬
before the Japanese
entered that ancient city.
Rangoon
pire
Japanese
i
/ ters of strategy which, it may /
to
naval
the
be
to
exceedcostly
from
moves
against
-
be
Japan, itself.
The
*
that
attack ;
will
probably
Japanese prevailed, and Java
and
an
eventually
.
of
it
from
him
attack
heroic- de¬
fell within the week.
i
It is
however,
render
-will
emy
augmented
swarms
con-
to
the Malay Barrier by the
The
by at least some British, Aus¬
tralian and American effect¬
fense.
clear,
and
the almost complete control of
between
March
defenders,
Dutch
r
night
and
during
consequences.
already
•
Feb.
events
the
I
these
startling
landed
island,
three points on the
time,
appraise
to
sider
the
troops
Japanese
one.
yet,
as
struggle for Java was a brief
-at
•'/>
There lias been little
that
conducted by the intrepid and
v
that
being made
are
enemy
coast of New Guinea
exaggerated^
disputable
longer
an
with - victory
to push his ad¬
with Japan the victor. Other
rounds will follow, of course, but
it is hardly to be denied that the
an
over,
~
inroads
against
drunk
Pacific Battle must be considered
sinkings
no
Aus-j
illusions
and
United Nations
are
The
no
impossible feat, not worth
trying, and if this attitude pre¬
vails, the first great round of the
as
by the Axis of
ships on our own
doorstep. - Although the
German
entertained
Malay
gaining
Austral-;
on
Zealand.
New
seem
,
supply
and
and
Military
problems of the war are becoming
ever
more
prominent, owing to
is
Filipino
experts
the
of
and prepared for defense of ;their
the relief of MacArthur
Amsterdam
the
on
dreadful
ian
tralians
soldiers.
thing from the domination of the
area by their Japanese associates^
it
.
mastering
possibly
to regard
Bourse, owing to buying by Ger¬
mans who hope to realize some¬
steady
and
American
his
and
and
footholds for attacks
MacArthur
Douglas
General
by
Indies have risen sen¬
Oceanic
Barrier
Pacific, is the segment of Bataan
Peninsula in the Philippines held
domiciled in
shares of companies
their East
completely
in
of the Southwestern
area
struggle will be
options.
Netherlands immensely difficult.
in London state that
various
on
Nations,
United
the
of
this vast
were
news
on
hands
South African gold
sharply depressed
periods.
stocks
were
Southwestern
Tokio
Pacific.
claimed
last:. Sunday - that
219
ships of the United Nations had
been destroyed in the course of
the Pacific
obviously
Enormous losses
war.
were
suffered
by
the
Japanese, but the enemy has the
satisfaction of gaining vast terri¬
torial advantages.
The need for
tively serene councils of British candor on these matters should
determined invaders. important is the 'tremendous gainand Indian leaders.
Both Hindu
in
face, or prestige,/which the
require no emphasis, for the real
Landing three divisions to begin
and Moslem spokesmen appealed
given up for lost, this week, "
war
spirit and effort may well
with, the enemy sent ever larger Japanese have won throughout
to London," this week, for eariy
because they were unreport- I
numbers of troops onto Java, and the Orient, -as a Consequence'of
depend upon frankness.
religious fac¬
ed, and the sinking of the j
the speedy defeats of all United action.; "' The two
/
All
the
more
impressive, '
heavy equipment also was sent
tions which divide India showed
freighter Gypsum Prince was /
in these circumstances, is the
ashore.. No adequate information Nations forces, excepting only the
acknowledged as the conse- ! is available as to the forces* that, gallant band under Geheral Mac- no signs of agreeing, but the call
brilliant
defense
of Bataan/
quence of a collision off the
1
Arthur. A changed Orient is cerJ for steps by the London Governfinally -overwhelmed the defend¬
//Peninsula by General Doug¬
Delaware Capes.
Two more
tain to emerge fromTthe* conflict; lament nevertheless was imperative.
ers.
The - Japanese
las MacArthur and his invin- /
used
their
A
new
Brazilian
dispensation
for India
ships
were
sunk, ;
cible American and Filipino /
typical
infiltration
tactics
and however^ the 'military .' struggle
and the tanker Gulftrade was
qannot be long delayed, in* these
may -evehtuate./
T
j rapidly occupied important por¬
forces.
The Japanese have .
i
reported sunk, along with a
This is not to say that the .strugr .circumstances.
tions of Java. The course of the
battered
their
heart's-blood
number of small ships in the
j battle is far from clear, and the gle for Java and the other islands : .The situation, at the worst, im¬
out in the attempt to over¬
Caribbean.
plies passive acceptance by the
of the Malay barrier is over. The
immediate situation is even more
whelm
MacArthur,
and
it
Netherlands, authorities in London- Indian- masses of a Japanese iut
All of this adds up to a con¬ obscure,
now
appears
that
they are /
■. r
assured
the
siderable diminution of the ship¬
world,; early; this vasipn and Japanese leadership.
battering their brains out, ?s /
Japanese troops quickly, over¬
week, that a bitter/ struggle? is. But many Indians are enrolled in
ping facilities available to the
well.
The Japanese General
whelmed- the
Batavia
area /of
the British defense forces, and a
United Nations in general,
continuing in various /parts/of
and I
in the Philippines, Masaharu
Java, and the fall of the capital
to the United States in particular;
their/main
East
Indian
island. real military conquest of India by
Ilomma, reputedly committed
of Java was claimed by the enemy
Japanese
seems
altogether
The
There are doubtless a number; of the
building
program
of
the
suicide last Sunday, and he
last Friday. Over the last week¬
There is no doubt,
United States bids fair to over¬
last-ditch. defense
points which improbable.
was replaced Monday by the /
end the Japanese took over other
on-the other hand, that the enemy
come
this disability,: but strikes
may
hold out for weeks /and
conqueror of Malaya, General important military areas, accord¬
in the shipyards can hardly be
months -to'come/ The/relief of will attempt to move into India,
Tomoyuki Yamashita. •: v
ing-to their own radio accounts.
if Burma/falls entirely-into his
countenanced
in
the
some of these possibly will be ef¬
circum¬
The
great Dutch naval base at
hands. - A "mission" already has
.But this change,-in command
stances.
It
appears,
moreover®
fected/ if speedy action develops
Surabaya and the inland arsenal
been dispatched to India by toe has not yet altered the situation
that the Nazis have just commis^
on the part of the United Nations'
town of Bandung, where the tem¬
States Government, and on the Bataan front, for General
sioned the new battleship
command. But the Japanese claim; United
Graf
porary
capital
was
established,
there is talk in London of a com¬ MacArthur reports quiet condi¬
that no less than 98,000 Nether¬
Zeppelin, which possibly will be
fell in rapid succession,, the Jap¬
used against Atlantic shipping of
lands and other United* Nations' promise on the question of Do¬ tions and initiative bv Amerman
anese claimed, and there was no
minion 5 -status., / But
the ■>: Con¬ rather than Japanese forces. The
the
United Nations, along with
effectives
already have surren¬
way of checking the statements,
servative regime in London is not few American planes which still
other. Axis warships on the Nor¬
for all direct communications be¬ dered, and the lack of communi¬
believed to be disposed
toward are able to take the air essayed
cations lends a certain credence
wegian coast.
In view of all tween
Java and the United Na¬
an
immediate
grant of
Indian an ; offensive
against Japanese
this the shipping problem must
to their claims.
V. f ?• '+* /
tions came to an end, last Saturfreedom, -which
suggests - that ships in Subic Bay, last week,
assume first place in the military
day.
- V-.-/v-'-Vy/
/
■v■/'
Rangoon Falls
concessions
turned out to be highly
may
well
measure which
calculations
of the
United
Na¬
waters
Two
are
being
unnamed
disclosed,
ships
were
j
aside by the
.
,
,
r
>
■
»
t
-
-
.
tions.
/
Malay Barrier
Driving
impetus,
ready has
vital
forward
occupied
cut
for
the
terrific
enemv
al¬
much
of the
East
Netherland
island of Java, and
ing
with
the Japanese
Up to the end of the Java de¬
fense,- according to some Wash¬
ington spokesmen, reinforcements
were
rushed to that island. But it
appeared
that
or
inter¬
Disaster
fell
to
the
handwriting
more
in
the desperation felt in the British
successful.
week, as
Japanese,
Rangoon
and
the
capital with respect to the Orient.
transports
the wall
was even
faced
.this
on
ominous,
the
for
it
British
is
evident
Indian
now
few
is
ceptor airplanes
fighter
-
Burma,
lacking, and
;
that
of the
British
rule
in
India
is
en¬
made
clear,
meanwhile,
statement
before
in
the
by
House
a
our
of
age
London.
Foreign
j ^he
Japanese gained absolute dangered and that the United Na¬
reach-I mastery of the air. The story re- tions will be unable to extend Secretary Anthony Eden, report-
remaining
sembled in this respect the
sorry
further
aid
to
China
for
some-ing ;to
were
-
Commons-'
were
Japanese
Several
-
sunk by cur
and
characteristics fliers, and the question thus was
Japanese enemy have been posed anew of reinforcement, for
Tendencies
the" House
on
Tuesday,
Bataan
to
under
get
defenders, who
airplanes
the
very
into
noses
enemy,
even
though
claims
that
fresh
man¬
act'on
of the
Washington
aerial
rein-
Volume 155
Number 4054
1047
forcements
Arthur
for
General
out of *th£
y
are
Mac-
.
;questiori;gM
France
'•
French
difficulties
being
ways
by
War
developments which affect
that
country t greviously,
and
which possibly wjII occasion seri¬
emphasized
in
are
;
various
v
•,
reactions.
ous
Force
of
last
aerial
The
'
:
week
raids
British
began
series
a
factories
on
Air
near
side,
possibly,,.will be; ward /.the oil fields of the Middle siderable, but entirely in accord
.<
/ East-will be
through Turkish ter¬ iwith the findings of that InterRussia and Germany 5. ?v.'A'.- ritory, with,or without the con¬ American
gathering.
Argentina
answered
.p/rV/p
•
••
which
on
soon;
sent of the
nearing
Russia, fresh military
valuations. i plainly
will
be re¬
end
and
Nazi
The raids differed
Armies
are
ritory.
The
the
Russian
initiative,
to echo
to
•
drive the German
back
farther
has
has
makes
to
from
significance
;:
of
is ists
a
sian
plot,
and
nationals
dered
r
accused
were
i\" bombing
influence
!
cf
were
to-Turkish
to
Ar¬
maintain
officials
agreements
series
a
in
creased
most
a
January
-
;
•
the great Souih
American country by the Ex-
surren-
port-Import
-
authorities
ington,
for
Bank
of
creased rubber
,
tation
facilities
and
also
r
iron pro¬
and
haustion
victims
by
Marshal
denounced the raid
Petain, who
as
"criminal
a
the
tended
genuine
to
drown
of
sorrow
out
the
spokesmen. The British fliers re¬
peated their raid early this week
by
attacking a motor truck fac¬
tory at Poissy, eight miles from
Paris, but no one was hurt on that
occasion.
that
London
:
>
naval
shelling
similar
lack
further French
on
Dakar,
might.
It
^-assumed that all aspects
were
was
.
given for
.
which
necessarily would occasion
percussions.
.
measures
is
not
yet
available
submissive
in
manner
which
Vichy turned Indo-China
to
the
Japanese,
but
the
on
against
jplayed
•>}'!
v
.
British
procedure
nd it may be, that -the French
Fleet now will come into use
a
against Britain and the United
Nations.
On the other hand,:
British leaders may have had
advance
information that the
remaining
were
to
United
,
French
be
used
warships
against the
Nations, in
New developments
case... >
any
are
Russia
tain
plainly will
follow, and rumors of various
sorts
already are in circulation
regarding them."••Russian authori¬
ties said on Monday that France
is turning over to the Nazis some
may
the
death
on
like
>
their
thid fact remains
of
still
and
the
But. Moscow
is
help the United Nations:
ab¬
was
be
}ii ttifel
to
crush
off
the
African
East
coast, and hints were given out in
London
that
a
United
Nations
.
aerial
rushed
the
across
.;; >f/ ; ;•
Libyan Campaign
-
in
/»'
the
known
to
confines
with
apparent.
said
of
the East
::(
•
Ap'
/.
•
Dakar for
against
out
of
defense of Madagascar
any
invader.
Whether
France will re-enter the
war, and
Russia,
numbers
perhaps
but
for
of
assumed
in the
men
•
the
with
respect
economics and related
ketings
to
dairy
than
usual.
of
The
total
in¬
income
farm
marketings declined
adjustment for seasonal
variation
cember
from
to
134.0%
131.5%
in
in
De¬
January.
all
SEC Extends
Under
Exemption
Holding Co. Act
sion
German
a
are
as
makes
the
United
Kingdom,
Cabinet
not -.contented
England,
velopments
.:
the
and
of
products in January was up
sharply from January, 1941, and
payments also were
larger,- says
the
Department,
not
Stafford
are
to
creases
de¬
Sir
Cripps, whose views
radical,
by
in
_
tion
for
only
with
♦
in income from oil-
is
the
crops
It
is
a
to
Act
regis¬
or
any
have
(as
director any per¬
in
similar
a
bank,
trust
ca-
cotn-
x
■
a
one
(1)
person
financial
or
whose
connection -is
commercial
more
banking institutions having their
from
and
added
,
that
year.. Government
payments in
January totaled $111,000,000 com¬
pared with $87,000,000 in January
1941, and $84,000,000 in December.
;
.
The Bureau's summary goes
.
p
on
from
farm
market¬
in
January totaled $986,000,000, 48% more than in Jan¬
uary
last year.
Income from
<
•.
crops
and
livestock
;
1
in
which
and
from
livestock
and
products recorded
such
(2)
elected
person
who
to
is
his
resides,
originally
position
under
an
order
pr¬
in
/such company prior to April
1939,
to report:
Income
ing's
more
company
serves
for
a
the
vegeta¬ ^principal, offices, vwithin
state
in which the
sharply
registered
higher prices of these products )• holding company, or its subsidaccompanied by increased mar¬
| iary, conducts at least 99% of
ketings, .resulted in an income
its public utility operations and
itwice as large as in January last
bles.
Re-
military
importance
favorably
regarded
electorate, it is said.
were
bearing
Opposition
out.
who
pacity
or
the
for
.
have
further
be ruled
exceedingly
which states that the greatest in¬
•
both
gnddiplomatic
are
war.
-
of
subsidiaries
officer
son
pay¬
(c)
unlawful
holding
its
an
Government
owing 'p
changes
Government
tered
-of
17
it
~
assayed.
-
.
.
the defeats in
Minister * Winston
-
Section
in January totaled $1,097,I
pany,
investment
banker,
or
000,000, as compared with $754,similar
financial
institution.
000,000 in January last year and
Rule U-70 sets forth the limithe revised total of $1,235,000,000
jin December, the Bureau of Agri¬ > ited circumstances under which
cultural Economics, U. S. Depart¬
these (relationships will be lawment of Agriculture, reports in
ful.
iits -February issue of "The Farm
Income Situation," dated Feb. 27
Paragraph (a) (7) of Rule
Income from all major groups of
I*'U-70 provides a limited exemp*ifarm
situation,
crisis
*and
said:
subjects in
ments
effort
war
.Churchill has been the target
-of increasing ♦criticisms, -in.
in
;
in
service
less
number
after
new
education, social welfare, finance,
the
Hemisphere Defense
probably for
moves eastward.
Turkey is espe¬
Since the Rio de Janeiro concially anxious, since it seems quite ference ended, progress toward
possible that an Axis drive to¬ hemispheric defense has been con¬
steaming
vast
declined
much
and regions of the Western
Hemisphere was made known last
Monday.
The White-House an¬
were
of
on
field,
outpouring
or
seasonal
from
areas
same can
the
Prime;
;;•
cent
spirit of unrest and uncertainty
prevails.
The German Nazis are
forcing the small Balkan States
put
Income
slightly in¬
stead
of increasing from De¬
cember to January, but income
from poultry and
eggs declined
foreshadowed,
are
products declined
usual
products
Numerous
prodigious
a
developing
be
Much the
to the misfortunes of
abeyance, pending vast
£
moves
elsewhere Iwith
Mediterranean region will be cor¬
related.
Throughout the Balkans
and the Middle East an intense
the
constructed.
occupied territories of (Caribbean territories under the
Essen and other cities in (British .(and United States flags..
the
to
as
be
the
average
120.0% in Jan¬
from livestock*
amount.
variant of the paternal¬
ism which Washington
steadily- is
likewise
are
force may occupy that island. Six
French warships were
reported
Tuesday
about
index
"from
crops
1924-29
is
don faces
Impressions deepened this week
that the Libyan campaign is being,
military
to
A
opin¬
; ion, however, is of primary con¬
Russia in
cern, and it is obvious that Lon¬
the coming spring, and upon the
issue of that conflict the entire
depend.
and livestock
Washington last week
Ecuador, where a defense base
suggest
C
-
agascar,
is
if reports from Berne and Stock¬
holm are accurate.
English
is influencing the Mos¬
authorities in part. There is
•
was
the
the
Income
uary.
mission left
for
adjusted
from
of
in December to
southern
needs.
being
satisfaction
Ameri¬
possibly
may
the
seasonally
income
from
! Within
aid to Russia is reported to be
under promised totals, which
war
Pan-American
•
were
124.5%
of Mexico and the several
-Central-American countries.'- A
'Siberian^-warfare; is..in United Kingdom, however, a de¬
Ithe backgrbtmd,' which: does< :nbt; gree, ibfiuncertainty and of dis¬
determination
the
con¬
part
Nazis, and
cow
through
of
dex
French:" factories
defense against the
which the next adventures
those countries
continuous
operating for the enemy also
far
of
Highway
bombed.
can
for rapid
grains, fruits, and to¬
particularly marked,
accounting for the decline in
the
understood
are
progress
struction
With
viewpoint,
the
Surveys
in
the
German
Ruhr Valley
were j
'
—""T' j»i
subjected
to
heavy raids this
Jan. Farm Cash Income
week, and the crippling effect of
such action against the Reich is
I
Is 45% Above Year Ago j
hardly to be disputed.
Various i V Cash income from farm mar¬
war
Provinces /of
tice
Reports
were
revived
that Vichy may turn over to the
Japanese the large island of Mad¬
feints..
ate observer must agree with this
in
be
of
defense and other real
Europe.
Siberia, and the most dispassion¬
held
between
States.
to
Janu¬
in marketings of
The declines in market¬
bacco
■
of United States official funds for
and
is endeavoring to con¬
vince Moscow that Japan will at¬
sorbed
ings
.
December to
decline
crops.
States
unknown, but: the program
quite
obviously will be
very
costly to taxpayers of the United
ing maintained by British fliers
against the Germans in the Reich
currently
Maritime
usual
,
main¬
The
war.
forty warships of all types which
were
completed after the armis¬
signed.
is
from
because of the greater than
ary
-
of the great
one
-usual
French
columns, 'relation this has to winning the U-70 (a) (7) under the Holding
operating from the Chad territory, war is not disclosed by the pros¬
Company.. Act
extending
until
are
active in the desert against
pectus, which states that the Com¬ March
1, 1943 the exemption pro¬
the Axis.
mission will be concerned prima¬
vided
under
such
Great Britain
rule.
In ex¬
<
rily with matters pertaining to
(Sharp ferial offensives are be¬ labor, agriculture, housing, health, plaining this action; the Commis¬
propaganda of the United Nations
the
;
Africa.Free
expedients,
Japan
Although prices of farm prod¬
January were 4% higher
than in December, farm income
declined
slightly
more
than
contemplated by
the Administration in
Washington
various Latin-American
from
'
industry of that country.
to
returns
ucts in
arrangements, for
of the armaments
expansion
Income
The
Securities
and
Exchange
Commission announced the adop¬
constructing a vast British West Indies and other sec¬
military and supply base in East tions of the Caribbean. Just what tion of an amendment to Rule
which
Hitler
than.
under
closures,
other
relations, despite
opposite
allegiances,
and
anomalies
he
the
incidents in the past, and
• more
of the British forces
Hitler
t he
on
mere
and
to
are
.under
.being augmented, largely through nounced
the
formation
of
an
shipments around the
Cape of Anglo-American Caribbean Com¬
Good Hope.
The United States, mission, which is to study social
according, to official\ British dis¬ •and economic problems of the
con-:;
peaceful
tack
part in that action,
a
dictators
over
it is at
least possible that resentment
;
to
re¬
Full information
v
and always are to be regarded
with suspicion. V
be
carefully weighed by British
authorities, before the signal
of
52%,
and
dairy, 25%.
The Extent of the financial and
other assistance
hamper the supply of the Axis by
forays which sink many German
and Italian, ships.
The supplies
meaningless.
parties,
Stalin
after
must
the
Communists
similarly
war
;
Mediterranean. British naval units
they profess. The declarations
France succumbed to German
military
the
units ?
immediately
and
animosity
cf
'
v
however,
that
Brazil
in
prices
returns from meat animals were
the Axis divisions in North Africa
cir-:;:;
hand, may be fully intent
French
advances
to
lend-lease
which
are
be intentionally mislead¬
be
warships at Oran, and the atat
in. these
toward
clear
made
than
and
sharply.
up
(up
defense.
common
others
:
as
The mild tone of
tinued
affair
of
be
ing,
samewhat resembles the Brit¬
ish
the long
may
may
Both
harrowing
on
guess
another
as
and
the
.
Further
larger
year
'-higher
welfare >
common
were
bombardment, reinforcements for
Premier Joseph Stalin' in " hiS "
I
This
1
it
are
A Red Army anniversary speech
further bombings would fol¬
low.
i
made
good
Axis
the
similar
Malta
cumstances.
the
and
-
Empire continue to face
other, without attempting
much
One
of
to
British
nor
Russians
to the activities
front.
Vichy
most
forces
making ade¬
information
available
quate
as
in
the
aids
each
the
the Germans
the
factor
is
wars.
Neither
pulled by the German propaganda
agents on this occasion, and the
cries
of
feigned
anguish
from
which
manpower
determining
modern
aggression." Unfortunately for the
French leader, all the stops were
Berlin
of
/
Re-
from poultry and eggs was 60%
than in January, 1941;
C
;
•
.
December.
poultry and, eggs
the largest increase of
'any group of livestock and live— ;X
stock products but
marketings'
of most'livestock products were
in¬
duction, augmented transpor-
in
from
showed
'considerably
January last
Wash¬
of
purposes
turns
~
r
available -to
Rus¬
relatively lightunusually heavy;
were
movement
of
Washington,
extent
some
Returns from tobacco in-;
less than returns from
other crops,
as
sales in
year.
following the
signed
to
v
last week, whereunder $100,000,000 of credit will be made
,
augmented
by the redemption and sale ofV1
cotton
placed under loan last
Brazilian and United States
|
active around Paris.
German motorized equipment; : ;
I-/.-last'Saturday* by the Soviet
Quite without warning to their
Sizable
German
forces: are j; Consulate,
on
charges that
former
ally, the British fliers trapped in several
they were implicated in the
sectors, accord¬
sent deadly missiles against motor
ing to claims advanced by Mos¬
plot,
plants in the environs of Paris,
cow, and the Germans admit that
Whether or not Turkey will be
in a night raid a week
ago. Ter¬ they are
fighting defensively on the highway for an
rible
attempted
destruction
resulted, with the long front from Leningrad to
Axis move
southeastward, there
British spokesmen insisting that
the Black Sea. The German losses
is little doubt that such a man¬
only the factory itself was hit,
unquestionably are serious, but euver Will be tried. The
Germans
while
French
leaders
declared Berlin claims that
they are bear¬ may, of course,
attempt to swing
categorically that apartments
able, and another offensive seems around the Black
Sea, if their
housing workers in the poorer assured in
coming months.- The promised
Spring offensive against
districts of the French Metropolis
significant fact cannot be ignored Russia succeeds. The
German and
were destroyed.
Since the bomb¬ that the two anchors of the line
Italian forces in Libya doubtless
ers "fleWv low, it is a reasonable
at Leningrad and Sevastopol ireWilL drive forward at the same
assumption that the bombs. did main under German
.seigey and
not drop wide of the
mark, and that few, if any, of the German time"; toward the Suez Canal and
perhaps even toward Syria. Loom¬
it may, well be, that the great
winter line keypoints in Russian
ing beyond such moves, if they
motor
plant
was
operating
at territory have been
regained by succeed, is a junction of German
night. •.;. •< •
•
the Red Army.
The tremendous and Japanese
forces, and a con> Whatever the truth of the mat¬
effort made by the Communists
Sequent isolation of. .Russia and
ter may be, it appears that 250 or
in recent months may
signify a China.. The.scale of the jcurrent
more
French civilians lost their
substantial depletion of the Rus¬
conflict
is
aptly illustrated
by
lives in this bombing attack, and
sian
reserves.
Both
contestants
these military conjectures.
many more were injured. A pub¬
possibly are approaching that ex¬ ; In the Western Desert
lic funeral was ordered for the
region
j
In
was
elections
i
the
two
content
i
in
•'
Axis.
in-'
higher than in January, 1941—
."neutral" attitude.
Turkey* for alleged Commun¬
German
the
meanwhile,
generally
von
y
degree that
full oise; of * the
possible
•
percentage
January—sharply
only nations
have been held which suggest that
the people of that country are
Papen was
i'V not seriously injured. It now
I;
(
begins to serve as a measure
passed and the terrain again
hardened
for Col.
ruary,
som ewhat
from those ■ conducted ter superiority of the Russians is
with great frequency against abf waning, which suggests a mate¬
solute military objectives On the rial .change after the
spring thaw
English Channel, for German sol¬
L especial
no
with
gentina,
Turkish and other
'when it occurred, late in Feb- :
;
lines currently held. But the■■ whir
diers manned the Channel points,
whereas
French civilians were
same
Income from cotton and
cottonseed in
Hemisphere which
to
sever
diplomatic
failed
relations
The bombing seemed
of
•
possibly
in
circles.
v
forcesp still
and
have
Ambassador, Franz
Papen, his life, continues
.' von
con¬
ducting deep within Russian ter¬
hold
the
creases.
of the Western
/German
quired for the struggle which the
Red
and Chile remain the
: A
in
Paris, which are declared to be will, be able
producing war materials for the Reichswehr
German Nazis.
Ankara regime.
bombing incident at An¬
kara, which nearly cost the
Now that the winter is
its
n-about
•:
1,
approved
by the Public Service Commis¬
sion of such state. It is the
emption
which
is
1, 1943.
under
this
extended
ex¬
paragraph
until
March
.
1048
THE COMMERCIAL & FINANCIAL CHRONICLE
2nd War Powers Dill:
Says Treasury Should Develop New Type Of
Govt. Bond Eliminating Demand Redemption
Railroads Granted 6%i Union Pay Demands
! Freight Rate Increase Retard Production, NAM
.t.
v
The Treasury
The
Department should develop a new type of Gov¬
House
Feb.
on
28
i
passed
general public which does not possess and sent back to the Senate the
the demand obligation nature of the present Defense Savings Bonds, Second War Powers Bill of:
1942,
according to Marcus Nadler, Professor of Finance at New York expanding further the Govern¬
ment's power to requisition
University, who commented thus in addressing the Credit Clinic
prop¬
of the ABA in New York on March 4.
Dr. Nadler, who is also erty and providing drastic pen¬
ernment
security
the
for
alties
Assistant Director of the Instituted
of
International
City, questioned whether it
is sound economic policy to have
vast
numbers
holder, and said:.
national defense bonds
The
r
to
up
;
To
A;!* satisfactory.
loans
individuals
1935.
income
tax
The
these
direct
for
of providing funds to
purpose
make
As the emergency
to
payments
kk'[:
.
House
000,000,000 but
was
version
likely in
ference
House
"Monthly Review" of credit and
limits
business
increase materially.
the
[
of the dangers
aware
that
the
sales
The banks
conditions.
bank
with
is
says,
of
one
creased
campaign and in the
the
This
policy,
in
accord
not
refused
in¬
of
purposes
the total
con¬
clause
to
purchases to that
restrict
these
pur¬
taxation
<
taxes
in .1942
subsequent offered the House an amendment
; whether it is sound fiscal policy years are expected to be still containing the $5,000,000,000 limit
for the Government to sell bil¬ heavier.
Pointing out that provn and it was approved. Feb. 26*ph
The question arises,
however,
and
Jtivelyikk^
lions of dollars of bonds pay- sion for income taxes payable in
following
year
should
be
able practically on the demand the
made at the time the income is
of the holders.
-
*
Smith
..
;:H; •>
bond
notes
0'.
.
.
-
t
tween 12 and 18 billion the fol-
r*t lowing
.
.
..
year.
•
"
••! '
By the end of 1943, therefore,
the
States
:
over
30
not
billion dollars of savings bonds,
all of which could be presented
-
.
/
at any
issue date, in the
E
bonds,
month's
case
and
written
of the
on1 one
notice .;•: six
[ months after issue date in the
,
of
case
the
Series
F
and
G
1 bonds.
f
[
While it is quite certain that
a
considerable
portion
of
the
national defense obligations ac¬
quired
*
will
is
during
be held
at
least
the
emergency
to
maturity, there
possibility that a
a
substantial amount may be pre¬
sented for payment before ma¬
turity. In such
■
ury
a case
could have
the Treas-
Reserve
only to
recourse
the commercial banks
banks,
to the
or
expedient'
an
which ought to be avoided.
I believe,
banks in close cooperation with
the Treasury ought to evolve
be
i
funds
appeal
to the
people of
the
Government
,■
suitable for
the banks
serves
their
type
securities
careful
of
most
de¬
also
attention.
'
It goes without
saying that they
will take any
security that the
Government
may
offer
and
in
are.
able
to
with
one.
that
they
carry.
The fact should
not be
over¬
looked,
make
terests
of
;;[ much
for
the
and
subsequent
expected to
are
heavier.
Aside
ernment's
meet
inastheir incomes
on
from
the
still
need
for tax receipts
expenditures, the
war0
increase in taxes enacted by the
Congress
last
probable
year
of
income
the
at
a
it is bound to de¬
greater pace in the
banks
naturally
hesitant to buy more than a
—
the produc¬
necessarily must
goods,
which
curtailed
sion
of
because
plants,
labor to
war
is
taxes
diver¬
materials,
and
To have
purchasing
absorbed
replaced
by
of
purposes.
the volume of
by
on
power
increased
any
extension
general
of
bank
credit through individuals' bor¬
rowing at banks would be to
of
one
higher
the
income
fore, it would
loans
of
taxes.
There¬
for
income
should
be
tax
limited
the
funds
to
payments
to
a
role
tain amount of
ernment
long-term Gov¬
obligations. Since,
however, it is known that the
absorb
gency
will
a
ernment
be
called
upon
to
large amount of Gov¬
obligations, it might be
use.
-
special circumstances
scope
avoidance
desired
power
as
or
tax
encourage
postponement of
result
of
higher
a
taxa¬
of consumers!
Borrowing
some
to
business
from
*
,
fpr Saturday; and Sunday? work.;
\:
'■?•»*•
;
,
Passengers fares have already AkA/:This major [obstacle to toundbeen increased 10%, generally, by f jthe-clock operations was solved:
!
v?in the
order of the Interstate Commerce
Commission
of Jan.
of the Pacific ship-*
case
Financial
Chronicle"
11942,
410).
page
k building
21, 1942, and
of
*
;
•
kamendedn last
Jan.'"29,
month."*' Under:
the- amendment' the shipbuild-!
ing unions. dropped the tradi-'
tional timerahd-a-half• pay for-
v}
[
v
I
ibasis of 1941
penalties for. viola¬
orders.!.. V;,Federal
-
necessary
banks
by
to meet
time, because of the
Reserve
capital
purposes
of
cash
realized from operations in 1941
and preceding years. Funds ob¬
plan
as
through such borrowing
same
effect
borrowing by individuals for
regardless, of the? days on:
these a occur, k' Double:
which
Landis to
In
Commerce Indus. Ass'n
James
M.
the
be
Landis,
.principal
luncheon
of
rtime
Speak Before
Commerce
in
emergency
Removes
cases.
from
:
requisi¬
the
the
attending
certain
and
effort from the Hatch Act.
Permits
the
ation's invitation to
of the
assignment
-
-
;
-
A
Provides free postage for the
armed forces at home or abroad.
City,
Office
Police
in
New
to
York
Commissioner Lewis
J. Valentine, Fire Commissioner
Treasury Depart¬ Patrick J.
Walsh and representa¬
gifts made on tives of the
American Red Cross,
they be used for a American
Women's Volunteer Ser¬
particular
purpose.
Permits
pieces
minting
from
.
of
silver
save
and
nickel for
war
■
Gives the Government power
to
inspect the plants and audit
of
the
books
and
Committee.
Col.
ing
contractors
To
the
confidential
to other
use
census
auspices
Service
Allan
M. Pope.
Chairman. of the Committee, will
preside.
De¬
information
evaluating
war
re¬
Arrangements have been made
by the New York Curb Exchange
to
purchase and retire the
000.
the purpose of paying income
taxes, but in general would rep¬
resent merely a postponement
of borrowing for working capi¬
tal purposes by the temporary
use
of tax
reserves.
practice
This
bought
the
seat
by
will
date,
time
the
by
$7,500.
the
small
a
(1)
have
to
such
on
basic
Exchange, offered at
group
always
others
and
as
cement,
for
ried
a
union
premium
of
over
vs.
been
oil
paper,
contract
pay
have
been
temporarily
of
the
in
re¬
well; and
instances
settlement
time
as
the
degree
some
giass,
in
for
continuous
industries
fining,
number
retirement
cases
prevail¬
largely
operations
Exchange under
plan adopted
32nd
|
on July 29, .1941.
Present market |
for Curb Exchange seats is $1,000,
j
bid
only
that
existing
the
on
off-schedule
for
policies,
seat
be
is
mem¬
bership of Glen G. Munn for $1,-
sources.
time"
falls
number of
a
carried
Curb Seat Retirement
previously
departments for private
in
In
compensation
reasons
Commerce
to furnish
which
respondents included in the
survey had changed their pay
practice for Saturday or Sun¬
day
shift work from
peace¬
-
Permits
"straight
pay
work
of
sub-contractors.
war
round-the-clock
a
shift work.
vices and other groups.
been arranged under the
of the Association's War
on
shift
extra
It is ex¬
pected that Mayor LaGuardia will
copper also be
present. The luncheon has
5-cent
running
Sabbath.
accept
condition
operations.
companies, 53 are
79
Saturday.
For
Sunday shift
operation, the practice is almost
evenly divided, with 51% of
the companies paying premium
rates
and
49%
following the
practice of straight time for the
Allows the
ment
continuous
on
these
schedules
Civilian Defense
Volunteer
Of
for
participate in
as
resources.
now
By far the greater majority
(72%)
of
the
79
companies
operating on seven-day week
meeting and will sit on the
guards for war dais, include James
G.
Blaine,
industries, utilities and natural Chairman of the
CCC workers
142
sions.
by the speaker at the meet¬
Leaders of local and State
part-time ing.
employes of the civilian
defense
organizations,
Government serving in the war
who
have accepted
the Associ¬
officers
Replies. were received front.
companies, of which 79 are
•
throughout; and 26 com¬
panies were carrying oh con¬
tinuous
operations
in
some
plants,
departments
or
divi¬
cussed
Excludes
production, selected on
geographic distribu¬
Details of the poll follow:
basis
the
tioning
law
the
prohibition
privilege of submitting questions
against
taking
machinery
or on civilian defense which
will be
equipment in actual use and transmitted to Mr.
Landis through
necessary for the operation of a the Association
and will be dis¬
business.
rapid
a
prevailing1
basis of
tions
.
Those
; of
non-war
and
luncheon have been accorded
to* obtain
survey
undertook
Industry Association of New York
Industry".
the
order
fork holiday!
practices in this matter, N. A. M.[
a poll of member com-panies engaged in both war and
Director, of
Defense, will
speaker at a
.
the
is> retained
"test-tube"
f
utilization for work¬
ing
3
>
t
r
concerns
tained
March 18.
banks to purchase Government
Inc. on March 19,, at the Hotel
;■
obligations directly from -the
Commodore, : it is announced. by
Treasury.
•
!
;
the Association.
The subject of
Permits the waiver of naviga¬
his speech will be "Civilian De¬
tion and marine inspection laws
fense as it Affects Commerce and
partment
payments may be unavoid¬
able at this
would not have the
and ore
docks;
the Office of Civilian
of priorities
Authorizes
tools.
are
Government's
the
in order to
advisable for them to cooperate
that
•
";y!' ■ ■ - 'Vy'jrj *'
aiding in the transition to a
period of higher taxation, where
with the Treasury in evolving a
of spaced maturities
boal
same'
the
powers over motor
now
exercises over
Provides
tions
of
involved, and should not be of
3 Com-
real' as well
personal property for emer-
as
k
that bank
appear
providing
make
of
purposes
individuals
to
purpose
are
cer¬
Interstate
to acquire
power
re¬
the
consumers'
of
which
disposal of con¬
purchase
of
for
sumers
tion
the
this
aimed at reducing the
are
mains
and
increase
year
further
volume
•:
Gov¬
tion, which is curtailed buying
at
an!
Commission
merce
war
be
creases—and
banks
the
;'| Extends
payments,
taxpayers,
taxes
as
1942
years
to
tax
such
future
I
provide
however, that as the
ratio of capital, surplus and undivided profits to deposits de¬
crease
Gives
of
there
amounts
*
to
defeat
of
accord
would it be in the best in¬
nor
scale
the country.
The question
68
railroads. -'''
demand obligation but em¬
body some other features which
would
in
from banks in order to
that
a
to
may Abe increased [ ments, under; which employees^
.premium -wages
of;
certain charges on !;.receive
at tidewater and lake •--[time-and-a-half or double time;
industry K; when
the
gWest Coast. Shipbuilding Sth-v
amendment these increases became effective
/; bilbtation: A g.'r e e m e !n t
Was
on Feb. 10 (See "Commercial' and
Joe
emergency
carriers it
another type of security which
would not have the character of
r
138
Rep.
during the war period for
taxpayers generally to borrow
be
therefore, that the
except
..
the purposes of increased taxa¬
time after 60 days from
Series
6 %,
'
Starnes (Dem.). of
Ala. striking from the bill a pro¬
vision
facilitating procedure in
obtaining citizenship for aliens
legally admitted to the United
tion
to the Treasury for redemption
,
by
the!
j
Government
have outstanding
of
vote
of
•as/involved,
a
f^y^yvv.
retention
,
.
United
may
Mr.
was
for
According to estimates, on' the
k
traffic;;.the increased
Saturday work and double time:
extent to which States who are serving with, the freight revenue should approxi¬
I for - Sunday
and, L instead,!
taxpayers made adjustments in army. and nayyk:k\k;".
mate $203,000,000 per annum, not
/adopted ?• a
sixth-day-seventh-;
their financial affairs last .year
The Associated Fressalsix re¬ •including about. $46,000,OQQ 'frdrri
/, day
formula With time-and-a-;
to provide for the taxes payable ports that the Second War Powers the passenger fare increase,.
; k half for all work on the sixth>
on
their
1941
incomes is,
of Act contains,, the following omer-r,
The ; higher, freight rates : are i;consecutive-: day in any ! week!
course, not known. But it would gency provisions:;{■£
IW71* scheduled to go into effect on n and double time for rtheksev-;
1
1942 between 10 and 12 billion goes on to say:
>
The over-all
dollars of these bonds and be¬
[
93.!
Before passage,, on Feb, 28,: the
reaffirmed by a standing
House
reached
approxi¬
21, 1942, aggregated 7.2
billion dollars. > It is likely that mately $2,471,000,000 in 1941, the
bank says that most of the notes
R owing to the spread of the variwere
purchased by corporations
ous bond purchase schemes and
and
only
a
relatively
small
the rising payrolls, the United
States Government may sell in amount by individuals. The bank
Jan.
on
to
transactions
ated Press,
j
»
such
128
limitation
might lead to
inflation, according to the Associ¬
States
of
the
safeguardk against the
possibility that unlimited direct
the bank asserted that
it was in order to facilitate this
Savings Bonds,
.[ including the two types of ap- procedure that the Treasury be¬
preciation bonds and the cur- gan in August, 1941, to sell tax
rent income bonds, outstanding anticipation notes. While the sale
United
of
vote
said
desirable
redemption value of the received,
The
:
:
teller
a
.
demand
•
No increase is approved on iron \ j peace-time penalty rule incor-.
[ore'.
Accessorial - charges,{ so* far ?porated in many union agree—
b
t-
'
in
'V"f:
r.. I
;v,.(
|
•
during the war chases. An item regarding testi¬
3 actual distribution of the bonds, period (curtailing consumers' buy^ mony on this section appeared in
■y-' and they can be proud of their ing power), nor is it in the best these columns Feb/19, page 769,
interests of the taxpayers, since
Rep. Smith (Dem.) of Virginia,
[ record.
* "
"
•
the
week-;
„
participating generously in
are
since
two
_
amount, v The Senate, however, in
passing the legislation on Jan. 28-,
broadens and the people become
the
seriously retardindustrial
changeover
to
the!
seven-day,168-hour
week
de-,
manded by War-Production
Chief,;
Donald M. Nelson, the N. A. M.l
.
clarification
some
for
may
declared on Mar. 3... Reciting the;
issues involved,
the1 association:
agriculture, live, stock and prod¬
statement said: :_!.>:!
/V-.ir ;V v:.
ucts, and low grade products of
The ^controversial * issue
mines, \ such; as ; sand,
gravel,
of
broken rock, and slag, ? As to these | premium pay for Saturday and;
•the increase approved. is 3 %, - On
Sunday -work under "mind-,
anthracite, bituminous coal,f«coke s the^clock," continuous opera-:
of all kinds, and lignite, specific f^tions, x/ even
when*1 time; so;
increases are approved, dependent ;
worked is less than 40 hoursupon the amount of the present k for the week ;or eight hours a;
orate: when $1.00 or less, 5 : cents i
day,; has -- threatened to ? delay ■
per net. ton and 4 cents per gross
changeover to the 7-day work:
ton increase; when oyer $1,00< the * /week in. many war industries.*
increased iapprovecL arekS and ^6
Industry's.,fallout'k production;
cents per net or. gross ton; Tespec* i- efforts are menaced by unions'*
$5,-?
of this restriction is
shifts
end
thereis
time
double
of. the war and
general 6%, upon all commodities
except certain "basic or raw com¬
modities" which are products of
limits
purchasers, to
confront the country, purchases
of national defense bonds will
>
if or-, the duration
v
criticized by the Federal Reserve
Bank of New York in its March 1
more
■
on a
-
^
u
chase v Government ^ligatiohS-[$i^
rect from the a Treasury, instead
of in the
open, market,: as now
required by the Banking Act of
Pay Income Taxes
Bank
considered the
be
may
now
,
.
have caught the imagination of
the people and the amount sold
■
and charges, | nnnum • pay
for , Saturday,, and
lower basis than the; Sunday labor reveals that union
demands for the
peace-time pen-,
general increase of 10% sought:
priorities These new rates will be in effect alty. rule of time-and-a-half or
although
;. The most controversial section for a period of six months
of the bill is that
allowing the ; after!:; vSk?
Federal Reserve Banks to
The increase approved
pur¬ I
[
,
Criticizes Borrowing
redeemable at the
demand of the
-
water
increase freight rates
orders.
outstand¬
bonds
of
are
violation-of
and
irailroads
rA^ rapid, - "test-tube"- poll by
authorized'J^e National Association of Man-r
carriers to I ufacturers on the issue of pre—
March? 2
on
ing practice.
York
ing which
for
The Interstate Commerce Com-
mission
would conform to sound bank¬
New
Finance,
Thursday, March" i 2, 1942 ; 3!
(2)
rules
in
a
car¬
pending
"straight
premium rates' issue."
f
■
'fi-
-THE COMMERCIAL & FINANCIAL CHRONICLE
Volume 155', Number 4054
v,
channel
7'
arid' the
between
the Treasury
investor.—They- them-'
7 selves are large buyers of Gov7 ernment securities..: They are a
contract point between Govern-i
Definition of the banker's duties in wartime was set forth in a :
ment and war industry. • Their
statement of action presented as the opening feature of the Credit 7 machinery
is ' used at almost
Clinic of the American Bankers Association, which convened -at
eveny step in the great war pro¬
ABA Credit Clinic Defines Bankers' Duties
In
-
►
3-5 V.,
expansion and
.
Financing War And Aiding War Production
.
-
1. To maintain the quality
his bank's assets.' "
■
'
readjust¬
his part effectively the banker's own house
must be kept in order. ' It is his
duty—77.
conclusions regarding the prob-
severe
ments. 7To play,
7 able net over-all
but the controls
7
of
the Waldorf-Astoria in New York
on
The statement which
March 4.
outlines the duties of banks in relation to the financing of
ernment in its war program; their duties to business and
industry;
obligations to the commu-fmain a large sum for the banks
nity, and their responsibility for
to
subscribe.
There
is every
self-management, was presented
prospect of a further substan-i
by W. Randolph Burgess on be¬
tial increase in bank holdings
half of the Economic Policy Comof
securities
Government
his
r
7
That is the purpose of this state—
tnent.
r •
To
and
7
•
.
-
J
of
the
which he is
avoid
inflation
the
/
stock
success.
and
vanced
livestock
4%
January,
products
from
December
to
marketings re¬
ceded from the high rate of late
crop
1941 and cash income from sales
probably declined considerably
more
than
is /usual
for
the
*
month.
based
Preliminary indications
price changes in cen-
on
7 tral markets suggest that farm-'
ers
generally were receiving
somewhat lower prices for the
products sold in mid-February
than those sold
month earlier.
a
*
■
"
over
commod-
prices received by farmers ad¬
7
:
of
continued heavy in January and
7 As a citizen of his community
Gov¬
exercised
number
Although marketing of live¬
'
the banker who is not himself
Association, - of
ernment must draw the funds it
7 every bank must take its share;
called into the armed services
Chairman, as an out¬
borrows
primarily from the
That is not a pleasant prospect
has special obligations:
line of the banker's job in war¬
'
current income of
individuals
to face.
It is not; traditional
time and in "the hope that it will
.77" 11 To share with others the
and institutions and only secbanking. It involves many prob4
responsibility for the success of
help bankers to size up their
lems, such as, how long should 7 9 nda rily from commercial
Red Cross, United Service, and
daily work from a new point of
banks.
It is the duty' of the
maturities -be? What about con-j
; civilian defense.
view and to do better their essen¬
banks—
/
trol. of the market and money
tial task."
7 2. To make local, state, and
Mr. Burgess is Vice1. To encourage thrift and
rates? How will these greatly
Chairman of the Board of the Na¬
national bankers' organizations
discourage spending so as to ac¬
expanded assets be protected by
effective agencies in the National City Bank of New York.
cumulate funds for war.
capital? • There is no rule, of
'tiori's' service.7 7
In presenting the statement Mr.
"
2. To push vigorously the sale
thumb answer to these quesBurgess said in part:
7! 3. To help the public underof defense savings bonds and
: tions.
The Treasury and the
stand * war; taxes,' war restric¬
Bankers are more than spec-?
Stamps and
tax
anticipation
;
Reserve System are' studying
tions, rationing, price controls,
tators in this (wartime) effort. It
notes.
!
them.
It is up to the bankers to
and other war measures which
mission
siderable
:;;:;77777/:;77
And In The,Community-
Financing The War
v
;
-
.
.;7save..7 7 77;7'7/;-
the
on
ities before the passage of the
Act had been attended with con¬
resources
gram. Fulfilment of this great
through a prudent policy of reresponsibility will be aided by 7 serves and dividends.--;—--":"
a clear definition and wide re- 7:7
3; To practice
as
well as
cognition of the banker's duties.;
preach the gospel of work and
the Gov¬
their
husband
To
limited
a
c
*
2.
effects
general price level of the con¬
provided for in this Act,
trols
For
1942
as
whole
a
income
.
from
*
,
.
is not enough for us to criticize
understand them
political and military lead-
our
their
ers, though
of
every
that is a public duty
citizen.
What we
especially need to realize is that
,
work
own
our
Have
war.
Have
areas?
Harbors?
In
our
It
is
vital
we our
Pearl
banks?
at
own
our
re¬
fer
Association
Bankers
cided
weeks ago to
draw
up a statement of the banker's
job in this war. We wanted
to
try to think through .the
things that we ourselves must
do to help win this war.
The
resulting statement reflects
some
Commission
to
from
size up their
a
daily work
point of view, and
new
is
Banking
?
-
Here
situation
a
of
and
that
calls
that
something
analysis of new prob¬
lems and an adaptation to new
and
would
be
between
connection
national
The decisions that
sees
of
way
in
heard the other day of a banker
who said that since he now held
.
Government securities equal to
of
30%
his assets he therefore
buy any more. I have sym¬
pathy with this banker's feeling,
his
conclusion is that of
on
a
their
part.
;
feeling
something
about
huge added increases in bank
holdings of Government securi¬
ties. That is the road to infla¬
The most important thing
tion.
bankers
>
(
„
can:
do
influence
their
is
to
use
all
toward financ¬
the
.
and
down
of
defense
bonds, but we
have only made a
what
needs
direction.
to
beginning in
be done in
good morale
the
it is
number one.7
after
7"
the
-
utmost
.
;
sales
efforts, however, there will re¬
regula-!
under
Almost
every
of checks
use
or
ran bebusiness
banking!
money for
week^fh^s»
asked to dedicate
an
on
anc*
social
numbers
was
3.
ers
duties
sented
J
v
as
is
;:
to
'
.
outlining bank-?
war
time
was
;
pre-f
follows by Mr. Burgess. \
Banker. In
Wartime
banks
The
The
the
States have
war.
They
?
of
7
7 7
•
tOrbusiness
and
many
con¬
income in relation to
of
goods
for
and
civilian
_the
services
use
will
.
The
great
A
Nation
Order
faces
industrial
and
years
i
?
raise the
which the records
/I
are
available.
The
decline in employment
reported for Illinois industry
during the period between Dec.
15 and Jan. 15 is
utable
to
tions
the
chiefly attrib-
seasonal
occurring
in
reduc¬
wholesale
and retail trade establishments.
Reporting
this
establishments
indicated
group
7
of 20.3%
7
ployees and
7
payments
in
the
in the number of
a
in
.
decline
a
em-
decrease of 18.8%
of
amount
of
total
wage
Jan.
15, 1942,
compared with Dec. 15, 1941.
Department and variety stores
as
and mail order houses reported
the heaviest lay-offs arid reduc¬
in
payrolls.
was
fication
in
crease
Retail
food
the only trade classi¬
which
reported
employment
in-
an
or
pay¬
rolls.
Building
construction
contracting firms reported
sonal'
decreases
and
sea¬
of
'20.7% ' in
employment and payrolls. The
public utility group showed a
payments.
including
ties.
'
farm
7
The Emergency
Act
commodi¬
Price Control
of
but
an
increase ■>4n
*
total
7
wage
<
•
U.S.-Ecuador Currency Pact
A
currency
ment
stabilization agree¬
between
and Ecuador
the
United
States
signed in Wash¬
ington on Feb. 27 by Secretary
of the. Treasury Morgenthau and
was
1942, approved by the
the Ecuadoran Ambassador, Colon
President, Jan. 30, for the gen¬
eral purpose of checking "spec¬ Eloy Alfaro, and the Ecuadoran
ulative and excessive price rises, Minister-Counselor, Eduardo Salazar.
Under the pact it is stated
price dislocations, and inflation¬
the United States will provide up
ary
tendencies," provides for
to $5,000,000 of its Stabilization
extensive Government regula¬
,
"
tion; of commodity prices, rents
of .....and marketing margins.
It is
financial
favorable
more
usually reported for this
period as decreases greater than
•1.8% have been, reported in 15
of the preceding 19 years for
slight decrease in employment,
ply,
bank workers are
In
factor tending to
penditures for them and conse-r
quently to increase the pressure
on other products in large sup¬
that
House
a
is
than-
fnbdities will tend to limit ex¬
entering military services. This
means
harder work for, barik
~
December-
supply, but price controls and
rationing of some of these com-
business
7sstaffs from top to bottom,
'
this
The pressure will be the strong¬
est on commodities in shortest
the
"• These tasks must be carried
through swiftly and accurately
while
.
7
of rising
pressure
available
dealing with for¬
Government
United
major role'in the
are
the principal
a
sumer
they may
work together with understand¬
ing and unity. \ 7 - 7:
7 •
J
re-f
:
1919.
volume
defense
with
-
a stronger de¬
products in 1942
than in any year
whole
a
The
distribute vast
cooperate
payments-
tions
since
*5. To help interpret Govern¬
•
The: current
stores
as
4. To offer special services for
men in the armed forces.
;
ment
for
January decrease in total wage
expected to be
/
a
7 "7
To
Treasury in
eign funds.
;
shown
were
1940.'
/
probably will
the rate of in¬
general level of prices this year.
"Je fais la guerre" "i
That is what' we
statement
; of
1
period in only three of the pre¬
ceding 19 years—1938, 1939 and
rather than to stop it.
be
war."
doing.
The
and
up
to
bonds,
stamps, tax anticipation notes,
cut
speech. His
a
7
-
-
•
December-January de¬
crease
mand for farm
i
,
and payroll facilities,
new, larger scale.
2.. To sell
<
T
are
,
slow
over
and handle tax checks.
building, at-?
function, or makq
unnecessary
fusal
.
.
7
•
current
effect of all these conditions is
transfer,
are
said:
change in employment is
January period., Declines /in
employment as sharp as the
crease, and a strong storage and
.speculative demand.
The net
1. To provide for business and
Government deposit, checking,
7
golf. C%rienceau the
great French war premier had
one
response" when he
was
a
*
declined
less favorable than is generally
the case for the December1 to
,
|
;
;
of the shift
net
Although increased taxes and
bond sales may absorb
much of the net gain in con¬
sumer income during the next
few months, the income avail¬
able
for
food, .clothing,
and
other nondurable goods will be
increased by the elimination of
automobile production and cur¬
tailment in output of other dur¬
able consumer products. 7'. 7"/.
Additional factors of strength
in the demand for agricultural
products are the needs of our
Allies
as
war
operations in¬
.
an
-
:,>Even
.
.
The
defense
;
.
*
this
That is banking duty
'
transaction " involves
on
make
sale
7
to run as it never
fore.
The
industries
increase;
production
to
crease
The country's whole econojnid
riciust be- put in high
gear,
*
part of everyone to get
our
buy them out of their current
income. Banks are already mak¬
splendid record in their
com¬
army
be
machine
7
employment
nouncement
the money income of
on
consumers
,
-
civilian
to
war
•
going to work harder than we
worked in years. We are
not going to have so much time
for dinner parties. .We are go¬
ing to shorten our vacations,
tend
a
He
7
Keeping. The Economic Machine
*"
7
Running
!
;
in
that
mid-January, 1942, according to a
statement 7 issued • Feb.
27 .•? by
B. Murphy,. Director: of
the Illinois Department of Labor.;
Explaining these changes, the an¬
econ¬
effect
for
discotif-!
credit
consumer
therefore—
first
as
ing the war outside of the banks
through taxes and through the
sale of bonds to individuals who
ing
.
war
manu¬
and payrolls dropped 1.8%
between mid-December, 1941, and
goods
continue
non-defense
labor.
or
Regulation W.
have
there
wrong
in
instincts
ing
"Food
7; To cooperate in the
business
We bankers and all others
This banker had sound bank¬
was
one
an
for 7 the
defenseprogram.;
scrutinize
of
a
in
4.0%
quickly reemployed and
the hours and pay of those in
factories producing for war will
compete
tion
cated
will be
expenditures which might
with war production
age
■
to
establishments
.
7 loahs with care and to
the work done.
The war has to
be financed and the banks must
do
In
To
tative
facturing and selected non-manu¬
facturing Illinois' industries indi¬
Many of - the displaced
workers
the farmer and
answers.
understanding
of what has to be done; second,
a persistent and vigorous drive
to
but
Nation?
a
tions
had enough and did not propose
Colonel Blimp.
distributor
6.
7* ment/
agencies, and in other
7
Freedom"
tabulation of monthly em¬
ployment reports from represen¬
is resulting in some tem¬
porary 7 industrial 7 unemploy-
converting plants
problems.
Illinois Employment Off
omy
buying materials
or
meeting
the confidence
of the soldier
payrolls;
transferring • funds;
that his leaders know their job
7 handling securities.
The bankr
and will not make mistakes.
Iq 7 er's ordinary job has become a
a community it is not so
much
war job.
It is his responsibility
pep
talks and radio exhorta¬
I
illustration,
of
-
7
business
defense
a
.
i A
production incident to the shift
from
in dealing with Gov-'
use,
for materials
movement.
whole
What makes for
Har-j
bor missed theirs.
By
the
in
"
before
should lead, not follow his
munity into action/ *
;
missing our duty as badly as
'
•
riot
with
advise
5. To lend to
section occu-f
cross
war
ernment
the kind of problem
a
To
war'
but many; he knows something
of the larger financial setting
largely
the commanders at Pearl
are
ever
different
patiori; he
the same, old .decisions and the
natural,thing is to decide them
in, the familiar way. .That may
be
for
Foi? his is
own
our
to our desks seem
come
to
the banker ought to know more
about than most other people.
to see no
the tragic
and
events
daily jobs.
.*
easy
call
They
conditions.
It
4.
customers
tq
of
little different than
more; an
-
'
thinking
good banking practice.
is
most
Curtailment of civilian'
in¬
$2,900,-
Francis
•The "Demand and Price Situa¬
expansion and in
operations.
3. To participate with Fed-,
eral
financing agencies when
the job extends beyond proper;
banking scope.
< !
;
;
:
income.
consumer
tion," by-the Bureau of Agricul¬
industry tural
Economics, said,
/.
war
current
a
his own J' original
especially - when
it
comes to dealing with his own
special problems and his own
community. The problems are a
do
finance
both in plant
'
of Agriculture.' The
for the year as a
general trend
business!
small
assist
To
2.
war
He will have
demand for. farm products
forecast by the United States
ployment and
with'war orders.
"Food
Harbor crisis.
The
war.
con¬
help
can
To
/1.
,
give the individual banker
start in meeting his Pearl
ever,
only
generations of experience
what makes a sound loan and
for.. all
the
continuing high level, of
was
It is his task—
.
play a large part. Bankers learn
•
;
of fi¬
area
A
»
.
through his whole will be upward, the De¬
knowledge 6f business and gov¬ partment said, basing its conclu¬
ernment, and his ability to lend,' sion on the. rise in industrial em¬
,
from
what is
the
Continues At High Level,
business large'and small alike; Department
banker
a
for, ,Free4
dom" program the Association
is again leading the way with
suggestions about which you
will hear more today/
Organized banking can, how¬
profession, ih
and
custoni
a
tradition
in
3
must be mobilized for
negotiat-j
financing, of
Also
nancing
do better their essential task.
which
the
orders.
hope/that it will help bank-?
ers
of
part
It is offered with
the
did
Reserve
sumer
ing methods by which the banks
do an -expanded
hours of work by many
people from many sections of
the country.
ABA
Federal
Aid To War Production
could, safely
many
.
the
of
fine piece of work in
the
and
fiscal:policies. 7
.
differing opin¬
ions or blind compliance. / In
the matter of war lending poli¬
cies
the
Bank
Management
de¬
Treas-j Demand For Farm Products /
To advise with the
the
as
,
morale.
System in planning Government
of
confusion
a
Policy Commission of the Amer¬
ican
5.
ury
and better; than rule
and in which
profession is seeking to of-f
something more than either
our
awakened eyes
j
To
help maintain a broad
dependable
market
for
Government securities. ;
of thumb answers,
sponsibilities that the Economic
.
depend for their success upon
public cooperation and public
-
ana
thinking
in order that we might
ourselves to
look with
was
force
4.
—
now making, a study; of these
particular questions and Will
report on * them later.
This area is only one of many
which
are
requiring
deeper
Right here at home?
own
to * be
>
frozen
own
suggestions;
own
3. To-subscribe for Treasury
t
not
may
much
as
000,000 increase of 1941, but in¬
come
for the year may be. as
large as in any previous year
except 1919.
7
,
issues suitable for banks.
ready to take wise action. The
Economic Policy Commission is
this
in
also
we
also; to make
marketing
crease
-
yet too early to form definite
Fund to
change
the
stabilize. the rate, of
between
Ecuadoran
the
sucre.
dollar
ex¬
and
,/
Thursday, March 12, 1942
COMMERCIAL & FINANCIAL CHRONICLE
THE
1050
and, in particular, that
powers,
Housing Offers Business Opportunity To. ^ Y
Strike Blow For Private initiative
right," Abner H. Ferguson, Commissioner of Federal Housing
at Washington, stated on March 5 that "today it is a duty—one of
the obligations of American business." "America," he said, "needs
quickly—for our production forces.
of housing are as essential to our victory as are
great many houses—and
a
tain
types
is
today
an
business
to
the
Housing^
opportunity offered
and
tanks
and
planes.
a
blow for
private
initiative
strike
to
of
system
were
fighting to main¬
Mr.
Ferguson's
remarks
made
before
the:: Credit
Clinic
of the ABA in
which
are
we
tain."
New York
which time, speak¬
March 5, at
on
"Modernization Loans" he
:
In those areas surrounding
clearly
established industries,
ing
on
said in part:
;
basis
a
will re¬
day to the produc¬
near
the factories that
turn
some
tion of goods
for peacetime liv¬
ing, private capital and private
builders must supply the living
quarters
vast
for our
needed
now
armies of production
new
Such areas are many
workers.
than
numerous
more
construction must
out at government
where
those
pointed out that "within a very short
plants
"would be - em-<%
oi the last de¬
ploys.
Residential
mobiles
of the
America from
and
be
will
victory
achieve
more
housing
confined to
more
housing
by Mr. Bell on Feb. 28, was pub¬
lished in the New York "Herald
'4
remodeling
and
struction
as
possible, both to save the Gov¬
ernment effort and expense and
well-being.
Therefore, the simple fact I
have been trying to state is this:
—the job to be done is both a
necessary means of self-preser¬
to maintain its own
^
and
vation
vital contribution
a
effort.
America has the hardest task
to the nation's war
it
An important
had to do.
ever
ican
Congress has seen
through
of Labor.
Federation
this
even
re¬
patriotic
go
success
and
the
obligation
beyond it to assure
of our vital campaign.
and remodeling and has
He announced that already this
thus
extended the ; period of
year
AFL members have purTitle I operations with an in-*
purchased or subscribed for a
crease in the maximum amount total
of more than $200,000,000
of
insurable
loans
and the worth of Defense Bonds.
pairs
,
-
period
of
repayment.
This
Secretary
Morgenthau
called
phase of the
FHA program the pledge "a magnificent ex¬
should,
we
believe, provide ample to the whole country" and
many urgently needed housing
pointed out it was the largest
units for production workers.
pledge to come to the Treasury
The plan is being put into oper¬
from any single organization. Mr.
ation without in any way de¬
Morgenthau added:
creasing our efforts in the other
Organized labor in this coun¬
housing fields. . . .
try has always recognized fas¬
Building materials are re¬
cism for what it is, and has
stricted by the War Production
known from the begnining that
Board and credit is restricted by
the
fascist
system
was
a
the Federal Reserve Board for
deadly menace to our free in¬
the same reason—because the
stitutions.
war
both mate¬
But my whole
effort requires
rials and money.
today
by
workers
the
production areas.
would
I
institutions
their
with
like
work
We
more
ity ratings.
times
*
W,
■-
and
and
local
prior¬
seems
to me that
they call for a few changes in
on the part of each and
methods
every
one
of us.
here at
rehabilitation
of
old
properties and the construction
of
new
rental-housing property
double advantage. First,
—has
a
It
play a major part in win¬
can
ning the war. Second,
a
it offers
safe investment to the
and
an
lender
assured means of con-
and
no
aside
week for
of the
pointed out that
dramatic to set
each
bonds, but it is tremen¬
of
part
a
dously
be
working
of the world.
women
not
may
now
continu¬
the rights that we have
generations of struggle
home, no chance to win
abroad,
The Secretary
important
war
effort
your
pay
the
to
success
whole, and
can be done
who earns a regular
as
a
is something that
of the by
Federal Housing Administration
workers
of
better future for the
men
it
The two-fold program
—the
of
in
"it
liberation of
unions, mo
won
a
this war there
survival of free
no
enslaved
lending
closely
These are changing
it
be
millions
the
custpmers in utiliz¬
Regulation
are
win
trade
in our
FHA offices for securing
V
we
in America.
unless we and
that
allies
will
ing our facilities for exceptions
to
know
our
ance
see
that
now
not safe even here
,
.
.
to
know
We
point is this: the war effort also
requires that certain types of
housing be financed. Both ma¬
terials and credit are available
for the homes which are needed
•
peak production."
projects for war workers. It is Tribune" as follows:
essential that private capital ac¬
My Dear Mr. Bell:
count for as much of this con¬
Your very interesting letter of
great pos¬
for creating additional
defense
1941
construction
in
The text of the President's let¬
now on until we
ter, dated Feb. 11, made public
pression.
I am wondering if
In a special radio program, Wil¬
capital can afford, any longer, liam Green, the Federation Pres¬
a defensive attitude. ..
ident, told the Secretary that the
I have already sent an an¬ workers in whose behalf he was
nouncement
to
all
qualified speaking would "invest $1,000,Title I lending institutions that 000,000
of
their
hard-earned
hereafter the insurance facili¬ wages this year for victory in the
Mass
meetings
of AFL
ties of Title I should be avail¬ war."
able only for loans the proceeds unions
throughout the
country
of which are to be used either listened to the talks by Mr. Green
in defense areas to create addi- and Secretary Morgenthau.
Mr.
tional dwelling units suitable Green stated:
for defense workers or to main¬
I
am
confident that
every
tain
existing properties in a
member of the American Fed¬
habitable condition.
eration of Labor will live up to
sibilities
that
Now
dustry
present fense Bonds during 1942 by the
somewhat as it was 5,000,000 members of the Amer¬
depths
the
Bell. Said In" a statement,
time" all workers in auto¬
industry and the labor
everyone
income."
He
conceded
that
the
America had not yet
"made
a
paradise of this free
country of ours," but argued that
we
"have always been moving
forward on the eternal quest for
people
a
of
better
secure
our
and
future
children."
broader
fo
and
rourselves
more
and
Jan,
reference
the
to
particular
with
1942,
31,
employment
situation in the motor car plants
the
country, has been re¬
ceived and carefully studied.
of
I
well
can
and
interest
understand
concern
your
this
over
situation, for it has been in the
minds of many of us as we ap¬
proach the change over in this
industry from a peace-time to a
war-time production basis.
I note that you
General
Nelson
Mr.
Knudsen,
Mr. Hillman/
and
have written
All of these
gentlemen and their staffs have
been devoting many hours to
this
problem,
very
I
and
happy to say to you that
efforts
beginning
are
am
their
to
bear
fruit.
In
specific
the
to
answer
questions mentioned in your
letter, I have been advised by
Mr. Nelson that:
The transformation
1.
of the
plants for the production of
war
materials
that
could be
made there is now well under
idle
While we do not have
complete statistics on the whole
motor-car industry, it is inter¬
way.
nor
any
French
The
that the three
larger companies already have
contracts placed with them to
make
war
materials,
which,
automobile in¬
the
longer has any auto¬
make,
its whole
effort is concen¬
the production of war
thought and
trated
on
materials, and I have no doubt
that the sarhe ingenuity that has
produced their records in the
past will make itself manifest
in
the
which
in
manner
war
products will be turned out in
'
quantity.
It
also
is
' '\
»
placed with the three large
companies require more than
one-half of the value of their
final
these
output to be placed by
companies with smaller
in order to produce
the amount required.- Such or¬
ders are now being placed down
the line and will during the
suppliers
reach the smaller
and in¬
next 60 days,
manufacturers in large
quantities. One pre¬
survey of -118
com¬
panies interested shows that on
Jan. 29, 1941, they already had
United
French
assistance
tary
involve
would
their 1941 output, yet
they were
using but 68% of their
existing
On Feb. 10 the President sent
personal message to Marshal
Retain informing hini that the
States
had,
Africa
of
it
and
the
He
stated
further, however,
of the Gov¬
of the United States,
that in the opinion
ernment
if France
terials
supplies to the Axis
and to render assistance
action
was
French
place itself in the
category
are
of
hope that this information an¬
swers the inquiry that you have
that he
such
made.
to
the declared enemies
people of the United
the
wishes
Reply To FDR Query
tends
maintain
to
produced
in
the powers or otherwise aids them
peak year of 1941.
:■ YiYY.YY-YY;'
beyond the terms of the armistice,
2. The facts outlined in the it would place itself in the cate¬
previous paragraph will require gory of governments which are
a
assisting
the
declared
production schedule which directly
of
the
United
States.
will reemploy all of the work¬ enemies
Since that time, Mr. Welles said,
ers in these companies within a
companies
very
several
of
been
•
communications
have
exchanged between the two
governments, the latest being the
written
pledge to be
neutral,
which was given to Admiral Wil¬
liam D. Leahy, the American Am¬
this year there will be
employees at work in the bassador on Feb. 24.
Mr. Welles further stated that
automobile companies than dur¬
further
clarifications
regarding
ing December, 1941, and that by
more
other
questions
are
by the United States in
important
awaited
where
be
the
old
absolutely inadequate for the
intended. This has
particularly true on avia¬
tion projects and, as contracts
are
being placed, emphasis is
put on using available facilities
purposes
text
of
Mr.
Welles'
an¬
same
of
States
the
United
and the French Govern¬
ment of
cated
of
Vichy have been predi¬
thought that you express
relations with the Axis powers
conserving
tools.
Government
as
the
machine
and
tools
with
materials
and
exchanged
bassador
final
upon
will not exceed the terms of
armistice agreements
its
with those
addi¬
have
the
between
in
Vichy received in
communication from
a
French
In the
Government,
the
that
affirmed
It
its will
again
once
commu¬
Govern¬
French
stated
ment
of this
course
nication
to
abstain
from any action under reserva¬
tion of the
obligations resulting
armistice agree¬
to it from the
which
ments
would
not
in
be
conformity with the position of
neutrality in which it had been
since
placed
which
June,
and
1940,
to maintain.
intended
it
The French Government fur¬
it
that
stated
ther
would
not,
therefore, lend any military aid
to
the
of
one
any
in
belligerents
place in the theatre of op¬
erations, particularly the use of
French vessels
a
of assistance to Axis
policy
beyond the terms of the
powers
armistice
been
agreements.
Government has
British
The
the purpose
for
all the more adopt
of war, nor
kept fully informed of the
communications
of
exchange
which has taken place between
the
Vichy Government.
the formal assur¬
ances given to this Government
by
the
French
Government
upon
repeated occasions that
the French Government in its
been
their
governments.
French
the
The
facilities would
to
their
to
On Feb. 24 the American Am¬
order to determine its future rela¬
nouncement
the
and
communications
been
tions with the
contained
in
need for
Washington advices to the New
speed, new facilities are not be¬
York "Times" follows:
ing granted motor-car companies
The
relations
between
the
for production purposes except
Recognizing
disastrous
and
aspirations
its position of
1942, not including the to Marshal Henri Petain, French
negotiations in progress, orders Chief of State, on Feb. 10 declar¬
had been placed amounting to
ing that, if France ships war ma¬
120% in value of what these terials or supplies to the Axis
3.
contrary
people of
Since that time several
Jan. 31,
'
be
the
of
destiny.
of nego¬ neutrality, in accordance with the
tiation as the automobile com¬
armistice
agreement with Ger*
panies are being asked to make many and Italy, and that it would
many items that throw an en¬ not lend any military aid to the
tirely new ' load on their en¬ Axis powers, particularly regard¬
gineering and production staffs. ing the use of French vessels for
I am glad to report, however, war
purposes.
This was
dis¬
that the progress in lining them closed
on
Feb.
27 by
Sumner
up for this new war material Welles, Acting Secretary of State,
covered by pending negotiations who
revealed
that :: President
is proceeding rapidly.
As of Roosevelt sent a personal message
automobile industry.
would
action
the
stated
confident that any
was
France
orders in the process
assuming
that adequate materials can be
made available, there will be a
labor shortage throughout the
further
President
The
the
the year,
of
directly
States.
Government of Vichy that it in¬
of
the
would
governments which
writing
end
her
terms
Government
The United States has received
the
of
agreements,
the
under
formal assurances from the French
of
that
armistice
will keep their facil¬
occupied on the basis
of their peak operations in the
ber
to take any
regard which
not
obligated to
powers, or
in
France
take
to ship war ma¬
were
or
ities fully
analyzed, and shows that it is
fair to assume that by Septem¬
of the United
people
States.
of output,
of
limitations
upon
armistice agreements
two
short time. This program,
varies by plants, all
which have been carefully
the
and
France though the
which had
been signed with Germany and
Italy are fully recognized and
understood by the Government
placed
In
course,
The President
that the position
clear
when measured in dollars value
There are still many
that
of the Axis
use
Libya.
France
tional
1942.
the
for
forces in
Vichy Avers Neutrality
year
advised
been
supplies had been shipped from
metropolitan France to North
assisting
truly yours,
United
the
of
Government
I appreciate your pledge of
cooperation and assistance at
this time of national crisis and
FRANKLIN D. ROOSEVELT.
Axis
a
floor space.
Very
the
to
powers.
to those
which
that
assurance
Government will give no mili¬
powers
of their 1941 employment
and a dollar volume of 99% of
by
Government
the
the
liminary
92%
received
States
include
creasing
orders
fleet.
assurances
made
interesting to note
orders that have been
that the
those
in this regard likewise
to
note
to
esting
no
to
control over or use
possessions
control over nor use of
the
the
■
mobile
capital is timid in the
in
.
relinquish
of French territorial
^vould be "completely harnessed within
days for war production."
—"The-President's letter, Representative
expense.
emergency,
industry
60
part of the job depends on pri¬
vate capital. It is a job that re¬
Indeed,
much the
quires realistic
thinking and
larger part of this housing for
fast, decisive action.
war workers
could and should
be done with private funds.
Private capital has an estab¬
AFL To Buy Billion
lished reputation for caution—
In U. S. Defense Bonds
and
properly so.
Capital is
wary when it cannot ascertain
Secretary of the Treasury Morat the start that it is going into
genthau received a pledge for the
safe channels.
In many cases, purchase of $1,000,000,000 in De¬
carried
be
•
automobile
the
wise
no
powers any
which he received from
letter
a
the building ployed in production of war ma¬
it em¬ terial contracts aggregating 120%
tinued. assistance to
"
times
Cer¬
ships
of
the French Government 'will in
predicted on Feb. 28 on the
President Roosevelt that
(Dem., Mo.)
Representative Bell
investment in housing
Declaring that "in peaceful times, private
is
Industry Expected To Be Fully Converted
For War Production In 60 Days
y;
Auto
and
Government
Government of the United
States.
forth
is
policy
as
of value
in estimating
and the
ernment at
ifications
set
above
the relations between
ernment
of
statement
this
While
French
this Gov¬
French Gov¬
Vichy, further clar¬
with regard to
other
important questions are await¬
ed by
this Government before it
will be enabled to
complete its
examination of the present sit¬
uation.
,
.
'%
Volume 155
Weekly Statistics Of Paperboard Industry
!■■
We give herewith latest
figures received by us from the National
Paperboard Association, Chicago, 111., in relation to activity in the
paperboard industry.
? '
'
*
*
The members of this Association represent 83%
of the total in¬
dustry, and its program includes a statement each week from each
member of the orders and
the
cates
figures
production, and also
activity of the mill based on the
figure which indi¬
a
These
time operated.
advanced to equal 100%, so that they represent the total
are
industry.
MILL ACTIVITY
PRODUCTION,
1
Unfilled
'*'»
/
Period
.'
Orders l';*.
Orders
Tons
Remaining
1941—Month of—
%
'
1
'
.
March
652,128
-N
April
571,050
i.
857,732
726,460
May
656,437
602,323
June
September
«34,fi«4
509,231
659,722
642,879
608,995
807,440
649,031
630,524
October
839,272
831,991
568,264
November
640,188
649,021
554,417
December
743,637
760,775
530,459
July
■
August
509,231
737,420
576,529578,402
;
1942—Month Of—
.
of
February
1
1941—Week Ended—
Aug.
Aug.
ABA
Aug.
30
-
.1
—
6
_
Oct
11
Oct.
—-
18
Oct.
Oct
1
Nov!
811
Nov.
15.'.
Nov
165,420
159,860
,165,397
160,889
22
Nov.
29
Dec
-
^
I
-
——
156,394
-
145,098
164,875
166,080
163,226
166,948
169,111
181,185
6-
Dec
13
149,021
Dec'
20
149,874
Dec!
—I
27
140,263
167,846
161,713
166,095'
165,360
169,735
167,040
168,424
167.424
165,240
~
24
-
—I
31
Jan
Feh'
Feb'
181,070
'
7
14
162,894
Z.—
does
the
At
even
to the
country and to the
leadership of their Association.
the
I want to take this
:;
for
-
an
in
the
rendered
last
I
83
83
83
83
84
84
'
;
is
would
you
find
miliar
fa¬
of the Commercial National
156,745
157,563
'
510,542
496,272
w
democratic
on
principles.
the
and
today do not
the
there
until
❖
A
It
the
to
*
Department spokes¬
said that ranking officers
the
field
wartime
and
Gov¬
proposal
it
to
see
that
it
sion
had
had
in
made
the
on
his
of
demanded
Dr.
deci¬
The
State
informa¬
no
reports from the
press
Far East that United States and
every
correspondents also had
the Batavia consulate coincided
with the Navy Department an¬
the
soon
as
is ended.
war
advised
to
Disclosure
of
nouncement
have only begun to feel
impact of this war.
The
magnitude of it is staggering.
leave.
the
closing
that United
of
States
and
The
ships had yesterday beaten off
a
largely
superior
Japanese
of
cost
it
in
blood, sweat
other United Nations
and treasure is unprophesiable.
The effect of it on our way of
naval
force
Navy
Department
ment
can
Who
25
have
the
on
of the
will
The
announce¬
however,
that
be expected
can
in this area."
post-war period
of life nicely charted.
life
stressed,
war¬
Java.
near
"further action
be said in- spite of the fact that
there are groups in our society
greatly
war
leave,
that
own
matter.
had
in
they should
indicated
was
Department
tion
discretion
to when
as
life is unknown. I think this
vary
not
preceding
State
man
our respon¬
every
con¬
had
Friday.
We
But they have in¬
and
multiplied
and
will be
more
left
States
representatives
the
demands of
demands
creased
sular
country for
success.
extremely critical.
Sing¬
fell on Sunday, Feb. 15,
and the last United
in
a
war
economic
ago.
years
apore
been
as
ferences with economic activity
as well as with the private af¬
from
un¬
sion for its termination
He recognized that
fairs of the people.
In principle, the
such
grant of power given to the
Government includes a provi¬
war
war
same
British
requires enlargement of
governmental powers and inter¬
88
that
seldom
dertaken until the situation be-
Foote
clear under¬
very
even
said
was
close their consulates and
Mr.
standing of the demands of
102
102
102
102
102
102
T
a
that
jne
Officials
in
,
to
seems
Goebel had
88
86
Bank,
City, Kansas, Mr. Koeneke
It
the
to
York
"Times,"
from
following is also taken:
evacuation
most
ABA convention address
/
of
are
New
made, to
contribute of our knowledge to
make its proposals practical and
workable.
And above all, it is
our
responsibility to do our ut¬
its President of that year, the
late Peter W. Goebel, President
stated:
service
ernmental
things." After quoting from
Kansas
the
which the
Govern¬
we
destina¬
advices
It is our right and
sibility to scrutinize
the
some
of
though
in
Department at Washing¬
ton from Dr. Walter A. Foote, the
Consul General, according to a
Washington account Feb. 28th to
however, that
form
our
even
indicated
was
responsibility of citi¬
zenship in a democracy.
of. banking history back to
pages
add
to
the removal of the
undisclosed
an
the State
doing.
so
Indies,
for
tion
opportunity
ticism is essential to
of
84
Batavia, capital of Japanesebeleaguered Java of the Nether¬
the duration, we still have the
right to criticize. Unity does not
preclude criticism. Indeed, cri¬
and
turn
to
were
the
and
war,
want
ment,
being
are
during this
you
the 1917
V 84
- 85
85
85
86
86
86
> - 86
87
87
87
87
'
88
88
in
obligations do not end there.
Under
by
war
which.J they
upon
"if
a
services
banks
said
101
102
101
101
101
101
102
530,549
527,514
525,088
514,622
528,698
522,320
to thank them for
our
success,"
responsibil¬
democracy."
analogy be¬
a
magnificently
call of their
preclude cri¬
part of bankers.
"It is
the
those
—
Mr.
4.
sponded
them
not
the
on
tween
_
162,493
.
crisis.
Mr. Koeneke drew
76
523,119
'
147,419
'
3
-V
535,556
17"
Jan'
jan'
Tan'
554,417
567,373
553,389
:
10
Jan
ideas."
upon
leadership of the
war
ity of citizenship in
99
97
99.
*
96
101
102
101
101
568,264
576,923
570,430
550,383
<
124,258
116,138
1942—Week Ended—
r
582,287
575,627
574,991
568,161
169,585
25
Nov
March
"Criticism is essential to
93
91
92
94
97
80
98
99
98
100
99
98
100
,
589,770
'
583,716 -\\\
578,402
170,597
——
•
,
168,256
164,374
165,795
168,146
159,337
167,440
...
572,635
587,498
592,840
584,484
576,529
591,414
166,781
166,797
163,915
,
176,619
—
.
on
A
165,279
4
York
time, Mr. Koeneke pointed
discharging their respon¬
he said.
1917
159,272
159,894
162,889
162,964
163,284
133,031
164,057
176,263
155,473
Sept. 13
Sept. 20
Sept. 27
the
—
102
101
528,698
493,947
v
New
cherished
of the
in
same
ticism
5
174,815
169,472
158,403
157,032
147,086
9
23
Sept.
'
159,844
16
Aug.
'
"
2
Aug
668,230
665,689
their
sibilities
-
673,122
640,269
in
addition, he urged
—
-~
by
Koeneke, who is
President of the Security Bank of Ponca City,
Okla., stated that in
discharging their wartime responsibilities bankers "may have to
compromise with their principles^
from time to time and give up
bankers of the nation have re¬
—
.
emphasized
were
Koeneke, President of the American Bankers Associa¬
an address opening the Association's Credit Clinic at the
Waldorf-Astoria
called
January
banks
;
The closing of the offices of the
United States Consulate General
staff
.
75
81
82
'83
84
88
86
94
94
99
98
93
202,417
261,650
337,022 '
447,525
488,993
629,863
548,579
608,521
of
out that
A
'
<
673,446
Cumulative
Current
responsibilities
Batavia Consulate Closes
tion, in
.
Tons
'
Tons
January
February
■
wartime
support
■
Percent of Activity
Production
Received
'
1051
lands
In
<
>
.
Henry W.
some
STATISTICAL REPORTS—ORDERS,
•
FINANCIAL CHRONICLE
Koeneke Emphasizes Wartime Responsibilities
Of Banks In Address At ABA Credit Clinic
The
'
»'
»
.
.
<
■
,
THE COMMERCIAL &
Number 4054
depend for
the way the war
Post-war
Farm
thing
ends.
For
Parity Payments
one
Parity
payments
for
1942
will
the one great task con¬ be made to growers of wheat,
corn
and
tobacco
who
Feb.
28IIIIIIIIIIIII-II-163,067
164,601
493,947
100
102
fronting us is the prosecution of cotton,
have complied with parity regu¬
We of the banking fraternity $ the war.: To this task we of the
Note—Unfilled orders of the prior week plus orders received, less production, do not
under
the
Agricultural
banking business have a big lations
necessarily equal the unfilled orders at the close. Compensation for delinquent reports
have very real responsibilities
orders made for or filled stock, and other items made necessary adjustments of unfilled
J contribution to make. That is Adjustment Administration, the
in connection with the war. In
orders.
'
*
our first order of business.
Department of Agriculture an¬
discharging them we may have
nounced
on
Feb. 17.
With re¬
to compromise with our prin¬
gard
thereto
the
Department
ciples from time to time, to give
"Bulletin" Buys "Ledger" says:
up some of our cherished ideas.
The name, good will and As¬
As in the
past, 1942 parity
Certainly we shall have to per¬
sociated Press membership of the
The Board of Governors of the Federal Reserve System an¬
payments are to be made on
form many extra services be¬
suspended Philadelphia "Evening
nounced on March 5 that the value of department store sales, which
those of the five basic crops—
yond our normal sphere of ac¬
Ledger" was purchased on Feb.
the four above and rice—which
had been unusually large in January, declined in February, and the
tivity and perform them with¬ 20
by the Philadelphia "Evening
during the previous crop year
out compensation or profit, as
Board's seasonally adjusted index for that month is estimated at
Bulletin" for the sum of $40,000.
brought producers a total re¬
f we are already doing and often The
125% of the 1923-25 average, as compared with 138 in January and
Philadelphia "Inquirer," of
turn less than parity. The usual
at considerable
inconvenience
Feb. 21, reporting this said:
i
an average of 111 in the last quarter of 1.941.
provision for payments on rice
"
21
Feb
-
(
civil population this time.
In part he also said:
my part,
,
February Department Store Sales
_
■
to ourselves.
INDEX OF
Jan., 1942
Feb., 1942
r +
+ 46
+ 24
Cleveland
-
-
+ 17
7
+ 24
+ 32
+ 41
+ 12
+ 16
+ 36
+ 21
+ 46
+ 14
+ 18
+ 32
+ 34
+ 38
+ 35
r+
27
+
6
.+
8
+
+ 16
+
22
+ 39
+ 13
+ 18
+ 15
are, every one
+ 23
+ 20
+ 34
+ 11
+ 12
+ 27
+ 24
+ 21
+ 37
+ 16
+ 18
+ 29
that
»<■
+ 11
+ 10
+
8
r +
+ 19
+ 31
+ 19
+ 14
+ 34
+ 13
+
8
+ 24
+13
+ 13
17
+
7
+
5
■
+
8
+ 25
+13
+ 15
+ 17
25
WEEKLY
+20
+ 36
+ 25
+ 22
+ 25
+ 29
+ 11
+ 17
+ 27
+ 18
total
+ 25
+ 19
+ 20
+ 21
+ 35
+ 11
+ 14
+ 27
WITHOUT
INDEX,
of
vice
+ 19
8
SEASONAL
ADJUSTMENT,
that
harness
in
of
us,
we
with
"Ledger,"
the sale
ity
of
to
of
As
a
you
and Press.
that
Govern¬
war.
would
matter of
approved in U. S.
was
approval
ser¬
now,
conducting the
none
the
few minutes after
a
is
It
efforts
reorganize
noted
of
by the latter
the
"Ledger"
the
Act
failed
to
Chandler
and
,
i
Feb.
7
8.
95
—
116
eb.
28_i.—
15
97
Feb.
22
Mar.
~
1
101
"Washington's Birthday sales or store closings this year occurred in
ie week ending Feb. 28. whereas last year they occurred in the previous week.
Also,
some
places there was not the customary holiday observance this year.
""Not
iown
separately but included in • United States total.
tMonthly indexes refer to
Revised
illy sales in calendar month;
__
February, 1942, figures estimated from weekly sales.
La
!
~
The London Stock
Saturday
Feb. 28
Pure
Monday
received
as
Tuesday Wednesday Thursday
Friday
Closed
Mar. 2
Mar. 3
Mar. 4
Mar. 5
Mar. 6
32/9
+78/1
33/3
78/-
32/9
75/9
74/9
77/6
32/9
"Cable & Wire ord.
Silver,
Gold,
oz.
p.
fine
p.
d.
OZ
W. L._
Closed
1960-90-
Closed
British 3%%
British
4%
price of silver per oz.
' -
The
been:
Bar
N.
Thursday
£ 1051 J£115%
£105%
£115%
Friday
23 %d
23,/2d
168s
£83%
£105^
£115%
£105y4
£115%-
23%d
168s
£83%
£55%
£11%
£11%
£11%
36/9
36/9
36/3
35/—
t31/6
£8%
32/6
32/—
£8%
£8%
£8%
£7%
76/6
76/6
.
77/-
76/-
75/-
Electric & Musical Ind
14/-
14/-
-
14/-
14/-
168s
25/3
24/9
25/-
25/3
25/-
23/-
23/-
23/—
23/—
23/-
128/9
129/3
130/-
123/9
£17%
£17%
£17%
126/3
£17%
£17%
76/£6%
73/-
73/-
73/-
£105%
-
Hudsons Bay Company
Imp. Tob. of G. B. & I
...
Metal Box
Rand Mines
—
Rio Tinto
£1151J
Y.
(Foi^ign)
mincd)
35 %
35 %
(newly
35%
71.11
71.11
35%
35 Ye
£8
Rolls Royce
from
an
31/9
:
»
£6%
£6%
£8
be
appropriation of
$212,000,000
which
was
ap¬
proved July 1, 1941. Parity pay¬
ment
yet
rates
been
for
1942
have
not
established.
Heads WPB
Planning Board
on
£8
Feb.
18
planning board set
vise
on
all
curement problems.
group
omist
up
production
5
£53
32/-
£ 6%
£6%
£8
£8
to ad¬
and
is Robert R. Nathan,
and
pro¬
Heading the
statistician
of
eco-
Dayton,
Ohio, who is at present chief of
the Military and Civilian Require¬
ments Branch of the War Produc¬
tion
Board's
and
Statistics.
bers
are
Bureau
The
Frederick
New
York
new
serving
of
mem¬
Searls,
industrial
as
Research
other
Jr.,
engineer,
consultant in the
Ordnance Bureau of the War De¬
85/-
85/-
Shell Transport-
37/3
38/-
38/-
36/3
35/9
United Molasses—
31/6
31/6
"31/3"
30/3
30/-
16/3
16/3
16/3
16/3
16/-
dell, Jr., of Pennsylvania, Assis¬
£4%
£3%
£3%
tant Director of the National Re¬
—
71.11
:
-
71.11
-
71.11
85/6
*
.
85/6
,
86/9-
West Witwatersrand
Areas
:
71.11
payments
Vickers
(in cents) in the United States on the same days has
35%
made
below parity.
will
are
73/-
1_
"London Midland Ry.
£82%
crop
Parity *
14/-
Ford Ltd
De Beers.
Distillers Co
i
U. S. Treasury
.
168s
Wednesday
23%d
168s
£83%
23%d
168s
£83^
Closed
Closed
Consols, 2%%
Tuesday
Monday
£56%
£11%
36/9
Courtaulds (S.) & Co.—
quotations for securities, &c, at London, as
reported by cable, have been as follows the past week:
Saturday
£57%
£11%
Cons. Goldfields of S. A
daily closing
The
£57%
Central Min. & Invest
English Financial Markel-Per Cable
be amended to provide for
pay¬
ments on rice if later informa¬
tion shows
that returns from
man
by cable each
32/9
Drugs
British Amer. Tobacco—.
crop
parity.
regulations will
his "thinking
committee," a three-
Exchange
Quotations of representative stocks
day of the past week:
Boots
the
1941
exceed
M. Nelson announced
88
119
21-
Feb.
110
14.
eb.
However,
or
War Production Director Donald
1941114
their
on
equal
-
the
ceased publication on Jan.
fact, the 5, last.
producers
will
siabject
Associated
under
Bankruptcy
I
do paper
the
of
is not included for 1942 because
it appears that returns to rice
the
The sale, it is stated, is
we
ment which has the responsibil¬
know
of
trustees
District Cour<t here.
must work
our
three
your
in the
country
our
means
less.
1935-39=100
As
But as I have said
+ 24
+ 17
set
banks.
+ 45
7 /
+ 21
+21
1942—
r
to you.
*
7.5
+
the
the
representative it may have to
ask you occasionally to agree to
things as war measures that
may not be altogether agreeable
+ 28
+
+ 25
+
City
_
*
+ 15
7
+ 20
+
eb.
9
+
+ 30
linneapolis
eb.
+
+ 31
+ 19
t>0
S.
+ 38
+ 18
naturally the represent¬
of
ative
Year to
+ 20
-
U.
(%)
Ago
29
9
it. Louis
Kansas
Mercer B. Tate, Jr., counsel for
tion is
+21
.
+41
'+
Year
Feb. 28 Jan. 31 Dec. 27 Nov. 29 Feb. 28
+ 15
+ 17
35
r +
+7
a
-Four weeks ending
ending
Feb. 28"Feb. 2l"Feb. 14 Feb. 7
+
6
+ 24
+ 38
+
7
-
the American Bankers Associa¬
103
97
Period
Corresponding
from
Change
District—
A certified check for the pur¬
chase price was turned over to
the
In
Feb., 1941
111
8
—One week
federal Reserve
Dec., 1941
138
125
Adjusted for seasonal variation
Without seasonal adjustment
loston
relationships between
the banks and the Government
DEPARTMENT STORE SALESf 1923-25 AVERAGE=100
♦Per
——
£ 100
par
value.
tEx-dlvidend.
partment, and Thomas C.
sources
Planning Board.
Blais-
THE COMMERCIAL & FINANCIAL CHRONICLE/
1052:
Freight Gar Loadings During Week
Ended Feb. 28, 1942 Totaled 781,419 Gars
Loading of revenue freight for the week ended Feb. 28, totaled
781,419 cars, the Association of American. Railroads announced on
March 5. The increase above the corresponding .week in 1941. was
24,749 cars or 3.3%, and above the same week in 1940 was 146,783
cars
23.1%.
or
totaled 354,920 cars, an increase Of
29,655 cars
corresponding week in 1941.
Miscellaneous freight loading
above the preceding week, and an increase of
cars
above the
Railroads
,
V
■
'
'•
Alabama,
Atl.. &
•
••
Atlanta,
1
•
/
*
{'-
•
■
R.
P.—W.
v;-'//>0/ 1
; 1942
Coast
Line™_„™
Charleston ■&
Western
1.
C1 i n ch f ie 1 d
_
»•_
I
—
.,
!>/
Georgia™!
of
_
Southern
&
amounted to 162,500 cars, an increase of 3,835 cars
above the preceding week, and. an increase of 2,193 cars above' the
corresponding week in 1941, ,>
i* j
Grain and grain products loading totaled 37,351 cars an increase
v
288
170
151"
&
,
!-™
,-!_!_J-!"-'
;
32
996
367
287
3,602
3,248
3,179
23,490
20,858
13,202
25,331
21,099
9,151
130
150
725
7,078
!•!••: 583
;
grain and grain products loading for the week of Feb. 23
totaled 23,681 cars, an increase of 495 cars above the preceding
week, and an increase of 3,082 cars above the corresponding week
262
498
433,
.
..
297
368
,421
;
397?
396
Central
9,334
21,681
565
1138
541
372
836
134
134
989
-115,703
* 100,246
100,017
}
,
768
/
1941.
stock
Live
.
the
above
cars
the
■
,
t
-
.
:
.
loading amounted to 10,470 cars, an increase of 523
preceding week, but a decrease of 36 cars below
corresponding week
In the
1941.
in
Western Districts alone,
loading of live stock for the week of Feb. 28 totaled 7,438 cars, an
increase of 161 cars above the preceding week, but a decrease of
•
134
,
(Forest products loading totaled 45,828 cars, an ■ increase of 352
cars above the preceding week,: and an increase of 4,585 cars above
the corresponding week in 1941.
r
*
1. 'Ore
loading Amounted to. ,12,853 cars, a decrease of 186 cars
below the preceding week, but an increase of €71 cars above the
.
84,430
duce
*
1 '
-
'
-
4
1942
" ' .194(1
1941
3,454,409
3,858.273
of January..
Missabe
Spokane
3,215,565
Central
Alton
___
Bingham
Chicago,
Chicago
Chicago,
Chicago
_
:
dom
508
489'
.
244
250
64
1,708
1,518
2,338
5,756,
3.270
4,868
3,629
10,798
9,172
4,688
105
81
2,403-
1,729
2,453
82
323
82
2,611-.
Denver &
Feb.
21_™_.
774,595
678,523
595,383
28—1_.
781,419
756,670
634,636
6,981,"046
6,320,974
5,681,250
Salt
&
for
the separate railroads and systems for. the week ended Feb. 28, 1942.
During this period 88 roads showed increases when compared with
corresponding week last year.
- -
Western
&
Pekin
103
2,484
848
789
11,017
10,246
10,475
2,623
2,997
651
1,682
Western™!!
_™
2,589;
.
2,749"
644
"!
City_™_
2,345
640
!
1,886
1,747
794
779
:
!'!!
.
™
_
1,961
1,905
880
606
30
10
"
,
:
■
_
Peoria '&
Pacific
Western
System
i 309
'
Western
Pacific
_
_
v
_
4
4
2,693
FROM CONNECTIONS
REVENUE FREIGHT LOADED AND RECEIVED
2,179
CARS)—WEEK
(NUMBER OF
ENDED FEB.
Rccci
Frei~w+ Loade"1
—
Indiana...
Central
Vermont
Trunk
1,337
11,616
8,649
262
3-
3,318
1,745
Monongahela
&
-
•
13,902
Texas &
New
Wichita Falls & Southern.—
1,^78
Weatherford M. W. & N. W
&
Pacific.^
: 8,311
10,067
2,756
4,098
:; 3,255
4,041
399
t
(
2,063
-
!
:
2,740
2,505
1,006
253
229
133
186
7,964
6,662
'2,573
4,280
-.2,326
6,712
3,849
132
110
12
384
3,871
12,880
24
'
120
7,261
4,999^-
123
3.479
4,824
39
3
■
i/Bl'
-!
51
35
20
give encourage¬
advance credit, ta
ought to expand
production and can guide those
100
13,456
Ontario & Western
1,044
1,130
956
2,446
2,076
5,646
15,721
13,430
New
York, Chicago & St. Louis
Y., Susquehanna & Western.
Pittsburgh & Lake Erie.
il
7,140
5,786
479
I >. 498
Pere
4,817
N.
Shawmut—
&
'595
<
1,351
1,584
8,196''
-
5,973
7,141
7,148
6,468
8,630
Marquette——
:
407
,
5,755
6,858
6,747
•
.
.
f-50.
463
32
32
309
r
331
/
"
Pittsburgh, Shawmut & North
Pittsburgh & West Virginia
430w
'% 414
^
808
'
•;,34i
997
"745
2,017
1,924
figures.
»
.<■
•
Note—Previous year's figures
revised.
—
.
—
494
_
Wabash —
-
-
607
-
>
1,138
1,121
.
^
6,298
5,425
II,410
10.943
4,751
4,324
3,468
4,148
3,914
.166,044
171,345
142,341
218,596
189,786
*
Wheeling
592
& Lake Erie
5,545
1—
:
—
their
Agricultural Goals And Food For Freedom
Require Increased Production From Farms In'42
S.
Department of
Akron,
Canton & Youngstown
Baltimore
Bessemer
Buffalo
699
&
'...
R.
&
Pennsylvania..
293
*2
•
1,469
17
r
5,857
17,782
1,971
1,963
654
403
-
7,295
-U
;
■v
529
342
125
-
:
661"
328
*
.
1,081
>
285
'
174
190
1,020
'
!
■
4
14
13,286
65
::
...
10
74
can help to bring about
improved methods of farming,
better
leasing
arrangements,
.
,
:■"
43
System
,
497
3,244
2,757
994
2.123
1.493
79,096
;
———
•74,835
57,529 ;
59,279
49(229
16,232
16,507
13,801
25,939
1
'
Total
14,470
3,636
3,473
3,306
10,593
8,006
130,894
149,040
121,330
19.339
,
3,879
4,100
178,378
!_
r
20,106
21,470
Maryland
inves;t
•
31
,
897
1,264
169,849
.
<
Norfolk & Western
24,585
.
22,660
—;
,
money
1942
for
need to spend or
to> reach the goals for
or
those
later
that
for
operating
machinery
and
buildings
were
about
-
;
increased
is
'
23,002
.
4,207
4,821
5,906
2,249
4,691
9,919
■0,329
•
1,522
further.
Before
>
such
was
over,
were
:
*
.' There
about 90%
51,136
52,408
44,986
•-
19,135
•'
17,347
T
priorities
Price
on
controls,
-
be
need
toward
well as
the attainment of the immedi¬
for
ate necessities
as
of the
war.
<-
H. N. Young,
farm
20%
still
I
expenditures
higher than in
various
objectives
cultural
also
efforts
attainment of the general agri¬
"
will
be
many
1914, and by 1920, nearly 120%
higher.
judgment, :and
re¬
■
considerably expanded process¬
ing and marketing facilities to
-should,
lenders
handle the increased
War
World
*
other
and
urged to devote their initiative,
ex-
'
Total
and- investment
quirements.
fre¬
Discussing the same subject be¬
fore the Credit Clinic on March 4,
if prices continue to rise and if
production
expenses
can
quently be of great assistance to
agricultural workers. : Bankers
ex-
Farmers'
years.
penditures
be set
may
higher in 1941 than in. 1939,
and they will increase still more
X
10,557 /
-22,829
17,466
'
._!!_!—.
to tell 'exf
more
output of
products.
For the most
part farmers Will not be called
upon
to help finance these facil¬
ities
but
in!
and
things,
some
cases
of
ment
and
head of the Depart¬
Agricultural Economics
Rural
Sociology,
Virginia
they
Polytechnic Institute, Blacksburg,
may.
In any event, the financ¬
Va., stated that "the job of sup¬
ing required ta enlarge- such
plying the working capital needed
facilities must be provided.
All
of
these
■
.
Chesapeake & Ohio—
Virginian
way.
stock,
•
Pocahontas District—
no
Their advice
the farm.
commodities/ with only a few exceptions, is to
Mr.<§>——'
will help to hold down farmers'
•!:'
■"j penses and investments in live¬
"
..
-
and better business methods on
Clinic of
March 4 stated that "the size of the
pro¬
/ farmers, will
«
1,647
Lines
is
There
,/ actly. howJ much
35
849
Seashore
Reading
Co
Union
(Pittsburgh)
Western
297
i
1
Ligonier Valley.
Pennsylvania
1,653
/.
.
;'/'«)
however,
contribution,
They
be increased in 1942." In part
Wall added:
?. v•••'/;
20,149
1,614
1
Long Island——
Penn-Reading
23,612
2,134
7,932
-
of New Jersey
———_—
Cumberland
29,005
3,085
Gauley
& Indiana
R.
Cornwall
38,633
3.159
*340
Erie
603
39,983
Ohio..
Lake
Creek
Cambria
Central
&
&
of all farm
on
position to expand
be much broader than this.
can
Agriculture/ addressing the Credit
the ABA in New York
a
of credit.
use
■'Their
Discussing
"Agricultural 1 Goals- and" the
Food-for-Freedom
Program/' of the war, Norman,, J. Wall, head of the Division
of Agricultural Finance, Bureau of Agricultural
Economics, of the
duction
Allegheny District—
.
who
be in
now
U.
I
Total
can
and
farmer borrowers who may not
.
Rutland
they
ment,
♦Previous
.
familiar with the
to detect tendencies for farmers
over
farmers
45.831
18,388
1,886
38,710
**
*•-.
to become over-extended. More¬
Total
43
54,555
9,736
2,122
•
are in aVstrategic position
judge what farmers can and
should increase production, and
-3.260
6,929
-
to
5,648
4,668
later
they
122
.
in
*
ability and financial situation of
many farmers.
Because of this,
3,516
11,767
6,826
are
*
'
■
productivity of farms in their
territories, and with the
339
.47,851
46,878.
were re¬
loan
368
3,990
>14,408/
297
?
•
^
Lenders
7.939
,
used
,
*
.v.-V.
1,563
1,124
618
troubled
*
—
*
2,230
1,719
:
caused
/ years.
1,009
!!:: 375
4,479
4,609
—
245
■
348
/
■
8,038
3,727 "!
8,480
r
Orleans!!
2,179
11,985
Lines—
Y., N. H. & Hartford
Pittsburgh
-
—
Texas
1,703
Such mistakes
2,595
" 16,639
131' '•
'67
16,617
-
Francisco..
9,348
<
11,988
—
Central
New York,
Quanah Acme & Pacific.:.—
201
1,794
2,771
1,101
634
:
4,897
L_
Louis-San
1,455
.
5,492
1,862
Lines
-
Louis Southwestern.!.:
—
—
York
/.
Arkansas....
Pacific_222^__^™2vA2--52rt. i
!
■
that
223
2,614
1,663
2,412
387
658
St.
3,692
.
223
299
3,279
2,417
2,435
!
U—
St.
3,592
•
3,550
6,383
Montour
Missouri
Missouri-Kansas-Texas
9,634
9.166
:
'
Arkansas—.
Litchfield & Madison...:
9,293
!
3,572
2,
132
;
1,688
275
Valley..
116
8,831
4,855
129
&
3,229
; i
2,157
——
2,117
15,810
->
Kansas City Southern
Louisiana
120
4,990
Northern
Kansas, Oklahoma & Gulf.__^.—_i—
'
-»157r
4173
Lines...—
Midland
-
1.743
blue-sky
also
sponsible for much of the debt
4,27$ C 3 4,397
C
11,285
5,704
1,741.
2
'171
243
294
14,662
V
Coast
8,264- (Missouri
8,988 t
£.633
437 ::
199
;
:V
-
--'239 "
-
j 284
13,828
Gulf
2,330
2,024
4,414
4,326
—
Central
51
56
1,358
'
Maine
2,495
2,257 r
6,307
2,164
Western
Lehigh & Hudson River
Lehigh & New England
Lehigh Valley
206
12,141
•9,502
1
—
—
Toledo & Ironton..
Toledo, Shore Line—^
Detroit^ &.
Grand
22
212
buy
was
'
Burlington-Rock Island..—
15,458
6,704
1
Mackinac
1,444
12
,V
8,805
Lackawanna & Western
&f
1.313
33
1,341
&
petroit,
2,019
to
free hand for living ex-.
penses..
Southwestern District—
1,556
a
60,660
win
1941'
.
I,662
7,459
1,406
1—'
Hudson
Delaware
Delaware,
Detroit
1,907
8.312
■!?,*.
:
n
International-Great
625
2,115 ::
Indianapolis & Louisville-
Central
580
•
;
»tru
~~nnect;
1942
1940
"
7,711
Bangor & Aroostook—
Boston & Maine
Chicago,
581
•
Arbor..-
1941
1942
68,541
,
Total Loads
/ Eastern District—
94,805
not neces-'
purpose.
Credit
stocks.
28
Total Revenue
Railroads
105,970
avoid
will
are
incurred
sometimes,
with
110,884
about the
increase
of stock, to make expensive im¬
provements
on
farms,
and
1,368
8,414
!;V' 345
•1,067
1,667
>; 1,452
0
1,077
sug¬
need
/Huge
during, andparticularly, just after World
War I, to buy farms at inflated
prices, to purchase costly herds
5,692
10,572
I
to
they
this
were
115
8-514
j,
.T
if
of credit that
for
369
0
•
13,095
356
___
9
382
,r>
13,949
/_
'
20,494.
450
.„!_^_i_
Utah
149
449
394
'
greatly
necessary
debts
571
1,993
Pacific
Union
War
farmers
most
sary
1,514
939
that
worry
uses
9
720
1,793
23,691;
Union
-
*
.877
1,288
,™™_™„;._
■
Toledo,
6
;
the
glance back to
World
production
2,982
3,461
;
998
into
a
credits
'
532
697
\ 828 "
credit-
burdensome
years
But
of
time
not
1,505
Lake_:
running
gests
3,201
746
indicated,
result in
be avoided when
r
:
already
will
the
10,662
3,050
sel¬
can
possible.
126
10,436
.
farmers
credit productively. To
use
future should
2,891
3,210
10,773
2,882
z
Northern
Peoria
2,544
14,272
>:
be
more
7,113
529
17,723
and
It would
away.
ably waste scarce materials that'
could be put to better use by
capable farmers.
248
1,835
8,125
burdens
farmers
4.361
,
10,422
_
_
& Denver
North
a summary of the freight carloadings
15,027. *'
•
Missouri-Illinois
Nevada
3,259
3,468
•
2,625
Illinois
Jilinbis Terminal™
Week of Feb.
Denver
17,21tt
17,599
443
Rio Grande
Week
627,429
•
,
;
20,981
iiii,-
their
expansion
by : such
might get them hope¬
lessly ip debt and would prob-t
2,450
I
pro¬
how¬
many,
finance
714
966
.
hopelessly'
are
credit would merely
Inefficient
128
3.706
,
638V
,T,907i i
1 5,392.>
9,832
____
Southern
Fort Worth
N.
4,467
debts
_
Eastern
&
608,237
New
9,750
11,090:
.
Rock Island & Pacific
&
Colorado
721,176
Ann
9,148
138
Garfield
&
710,196
.
498
10,384
382
322'
:
™_
Burlington & Quincy^
& Illinois Midland
784,060'
the
553
6,647
383
i
—1
& Santa Fe System..
782,699'
is
514
7,679
'
commer¬
seem better to help such farmers
adjust their debts or perhaps
change to some other work.
Western District—
Atch., Top.
14—
The following table
690
526
from
Some could
thrown
money
As
Feb.
.
208
;
Spokane^ Portland,& Seattle..
Feb.; 7—--
-
3,758
514
11,223
International
Week of
Total
!. 9,154
4,117
726
9,869' '
Ishperaing.._^__l..
Minneapolis & St. Louis
:
Minn., St. Paul Si S. S. M...
Northern I^acific.........^_....._
Week of
of
8,266
3,385
861
V'. 716
.
!„
„■
18,414
4.056
iii'
Des Moines & South—.—
Great Northern.
21,294
4,217""
: -1,350
Range.——
Duluth, South Shore & Atlantic.—,
Elgin, Joliet & Eastern
Dodge,
3,150
39,410
'
Iron
&
3,310
14,245-
that
'
weeks
Duluth,
2,360
to
12,432
2,486
16,723
loans
*'
1
With
more;
add
13,559
2,604
T/,335 —
Chicago Great Western—^1.——.
Chicago, Milw.» St. P. & Pac.__
■^Chicago ,St. Paul; Minn.-& Omaha.
a
,
5
k
"
'
.
_
decrease of 46 cars
below the preceding week, but ah increase of 211 cars above the
corresponding week in 1941.
1
%
All districts reported increases compared with the correspond¬
ing week in 1941 except the Eastern and Pocahontas. - All districts
reported increases over 1940.
• "
; *
:
cars,
District—•
Lake Superior &
I
corresponding week in 1941.
'
i
V
Coke loading amounted to 14,455
Northwestern
preen'Bay (k Westerni.x—.
below the corresponding week in 1941.
cars
-#■,'$
ever, more
Chicago & North Western_^_i_iC.'-i-!;
Ft.
!
'
debt-ri(iden.
Total
for
This'
-
and
Many farmers
alone,
in
demand
•
increase
>
in
!
■
927
,
material
higher in this all-out effort.
17,437>
to be made.
a
to be about 30% higher;
1939. The chances are
that they will go considerably
than
7,057
7,164
20,464
125,442
...
11,293
24,362
case
appear
■
5,693
9,450
10,061
.24,675
.
1,573
the
-
Farmers' loans from
1,126
.
in¬
cial banks and Federal agencies
for production purposes already
3,241
1,293
1,382
2,695
1,102!
3,077
1,049
•
506
3,639
140
171
1,148
3,467
Winston-Salem Southbound—. 1—J
above
'
•
^
•-Linei_„„i_i_.-j._l_2
System
-
209
622
697
many
meet
Federally sponsored
agencies to attain the produc¬
tion goals.
•
1,866
'
•
mean
banks
2,989
14,809
!
2,250
•
particularly
the
in
3-09
150
36
j
Air
Tennessee
will
1,030
1,014
1,170
1,019
is
ments have
:
751
1,014
25,413
Richmond, Fred. & Potdmkc!!™™!!!'4!
Seahoard
:
48
i
28,341
__
Nashville.™—
Northern—^—
Southern
2,772
->324
■
4,164
Florida."
Illinois Central System—™
(Piedmont
402
'
•
to
when expenses are highly sea¬
sonal-and when large invest-
! 1,609
1,901
2,740
286
1,736
Gulf, Mobile & Ohio
1,248 cars above the preceding week, and an increase of 3,293 cars
the corresponding week in 1941,
In the. Western Districts
of
403
169
This
3.734
1,484
|454
,
Coal loading
1,055
6,636
3,753 !
1,303
-
But
have
investments before they
the increased income/
receive
1,713
8,427
225
_•!. 3.-*
__!,.™_„
Louisville
<
1,262
!
403
than
less
merchandise
of
3,852.
*1,593
■•!
carload lot freight totaled Macon, Dubin & Savannah—
Mississippi Central———™_!L_™_?l'!.
143,542 cars, a decrease of 6,488 cars below the preceding week, and Nashville,'Chattanooga & St. L.!„!_/!'
a decrease of 15,823
Norfolk' Southern.:
,!
cars below the corresponding week, in 1941,
\
Loading
564
10,007
4,146
1265
!/
Midland_^..i™:._L_.!_._;
&
701
10,970
! creased
139
316
2,104 W
'
•
Georgia
Georgia
•
776
i 385
•
Florida East
Gainsville
! '
1,571
>■
■: ■!
,„™
"219
-
824
•
4,515
'
! r!!
"
"254
•'{
13,376.
•
'
Carolina-'-J_i_
_! _•!- _■
K' *
1,003
(779
will
creased expenses and make in-
1941
1942
income.
farmers
Connections
,1940
;.:.1941r.
295
!,v
of Ala
Birmingham'& Coast_L_!
Atlantic
creased
Tqtal Revenue
Freight Loaded
Northern^lJAr
R.
Total Loads-
J !
-
'
•
.;
District— ,-!;>*
Tennessee- &
W.
Central
v".
v;
Southern
Durham
Loading of revenue freight for the week of Feb. 28 increased
6,824 cars or 0.9%- above the preceding week.
7,586
ut-m; Lo.1
v
■
Columbus & Greenville^—
/
'
'
j Mfe.
.
Revenue
Thursday, March 12, 1942
increased
and
things—farmers'
expenses
for
labor
supplies and their increased
investment
for the successful
operation of the
Food-for-Freedom Program is
one
important phases of
financing which confronts the na¬
of
the
most
in
livestock, ma¬ tion.".
"The commercial banking
chinery, buildings, and, in some system," he added, "has not only
cases, processing plants—should an important responsibility, but itultimately * be paid from in¬ is being presented with one of its
THE COMMERCIAL & FINANCIAL CHRONICLE
Volume 155 i; Number 40541
greatest
opportunities to render
important public service at a
profit."
t
Vv
an
Speaking
-equity securities
mately the same
keted
the
on
Van
B.
-
This
Food-for-Freedom
gram is not
the
only,
farmers
all of
them in
of America
who
us
business
a
al way.
Pro¬
but
to
working with
are
than
education¬
or
It
is
of farmers
even
a
States of America and
:
of
citizen of this country.
We may not all agree on how
details
of
this
should be handled,
we
can
agree
to increase
that
time
should get
but I think
we
in order to win the
haven't
program
have got
food production
our
to
war
and
question
we
who
credit for doing the
job.
/ tal
28%
Govt.
to
$632,000,000
.
i
securities, likewise
being the highest amount car¬
ried
cept for 1939.
eous
were-privately
J; found for the last four
Of
of
Exchange
announces
securities
that
offered
new
for
$5,149,000,000, bring¬
the aggregate 1941 offerings
to over $13,000,000,000.
Grouping
government and corporate secur¬
ity offerings together, 1941 new
cash offerings exceeded those in
any
other year since the first
The
ing
World War.
of the
1941
sales
raised
years.
ment
of
prepared
statistics,
search
and
Statistics
its Trading
of
these
the Re¬
that
by
Subdivision
and Exchange Di¬
vision, include all new corporate
and non-corporate issues offered
for cash in the United States that'
in
the; financial
with the exception of issues
under $100,000 in amount and, in
the case of debt issues, of a ma¬
reported
are
press,
turity of less than one year. It is
further indicated by the Commis¬
sion that issues sold through con¬
offering, such as sales of
tinuous
securities of open-end investment
companies,
not included and
are
that the most important group ex¬
because
cluded
term
and
of
their
short-
maturity are Treasury- bills
tax series notes." The series
includes
securities
of
common
issues placed privately,
and Federal, State and local gov¬
ernmental issues. So far- as United
States
Government
issues
are
carriers,
concerned, only issues offered to
the public are included.
The
Commission^
announce¬
ment further said:
Of
.
98%
total
were
securities
offered
fixed-interest-bear¬
representing
non-corporate debt, an(* 17%
corporate
bonds,
notes,
and
ing securities, 81 %
;
.
Total
corporate
issues consisted of $2,247,000,000
debentures.
"
issues, $167,000,000 preferred stock, and $110,000,000 of
common
stock. The amount of
debt
,
and
repayment
the
than
amount
in
tal
ing
shrinkage in amount
Money
ment
to
$1,448,000,000.
used
being
other
of
for
debt
.
bank
repay¬
r
Face
the
as
Grand
■:
there
on
the
was
$324,558,799,
re¬
Securities
that
of
others
than
16,060,000
16,060,000
8.0
15.2
16,060,000
0
60,878,462
60,878,462
30.4
1.7
53,121,446
32.0
0.6
51,377,991
26,570,454
13.3
8.1
25,454
0.0
2.3
4
3,400,000
3,400,000
1.7
1.4
3,400,000
2.0
1.5
225,171,453
200,363,916
100.0
100~0 166,061,900
100.0
100.0
rights,,
1
(v.t.
0
Total
25
Highest Since Sept. 1928
March 5
on
Statistics, U. S. Department of Labor, an¬
.that sharp increases in prices for
textiles, par¬
Bureau's
announcement
were
products
said:
products, building materials and chemicals and
rose
furnishing goods and miscellaneous
changed at last week's levels.
Increases
of
5.2%
for
woolen
commodities
remained
for bananas and citrus
fruits, for fresh beef and pork, cured pork,
mutton, and for flour, peanut butter and tallow.
Prices were
lower for butter, rice* apples,
beans, onions, potatoes, and for
eggs, oleomargarine and tea.
for
as
The
movement
mixed.
•
Hogs,
in
cotton
prices
and
for
markets, while quotations
ing corn, oats, rye, wheat;
poultry.
v
■
advanced
lower
were
well
as
\
minor increase in
The
agricultural
barley
,
.
for
for
as
commodities
slightly
Commission
also
had
tered
by issuers for sale.
building materials prices
turing groups
Power Co.
were
31/2%
first mortgage bonds in the amount of $81,400,-
265,669 shares of United Aircraft Corp. 5% preferred stock
in the amount of $26,566,900;
and Union Oil Co. of California
3% debentures in the amount of $14,925,000.
Over half—56%—of the securities registered by issuers for
000;
sale
to
were
10%
showed
for
in the form of secured bonds. Unsecured bonds amounted
of
a
the
total.
substantial
Preferred
gain
over
stocks
in
accounting for 32%
their average proportion of 8%
1941.
for the increase in the chemicals and allied products
index, prices for castor oil declined.
Minor increases
reported in prices for boxboard and for soap.
The following tables show (1) index numbers for the
prin¬
cipal groups of commodities for the past 3 weeks, for Jan. 31,
1942 and March 1, 1941, and the percentage changes from a week
ago, a month ago, and a year ago (2) percentage changes in sub¬
group indexes from Feb. 21 to Feb. 28, 1942.
counted
group
were
(1926=100)
Percentage changes to
'
,
'
•
Feb. 28, 1942 from
2-28
Commodity Groups—
3-1
2-21
1-31
3-lx
1942
1942
1942
1941
1942
1942
1941
96.5
96.2
95.9
80.5
+0.3
+0.9
+20.2
102.0
products—
101.9
100.7
101.3
+44.9
Textile products
Fuel and lighting
+0.1
+0.7
94.8
94.0
93.9
73.1
+0.7
+1.7
116.3
products
70.4
95.5
Hides and leather
116.1
116.1
115.7
102.1
+0.2
+0.5
+13.9
93.7
93.6
93.6
76.3
+1.3
+1.4
+24.4
94.9.
materials
Metals and metal products
Building materials
+30.6
78.4
103.7
78.5
78.7
78.8
72.6
—0.1
—0.5
+
8.0
103.6
103.6
103.6
98.0
+0.1
+0.1
+•
5.8
109.9
109.7
109.8
109.6
99.5
+0.2
+0.3
+10.5
97.1
96.9
96.9
96.7
78.6
+0.2
+0.4
+23.5
goods
104.1
104.1
104.0
102.9
90.7
0
+1.2
+14.8
commodities
89.1
89.1
89.0
88.4
76.7
0
+0.8
+• 16.2
97.4
97.2
96.4
96.4
73.9
+0.2
+1.0
+31.8
Chemicals and allied products—
Housefurnishing
Miscellaneous
Raw materials
Semimanufactured articles
91.9
91.9
91.9
92.0
82.0
0
0.1
+12 1
Manufactured
97.4
97.1
96.9
96.4
83.7
+0.3
+1.0
+16 4
95.6
95.3
95.2
94.7
82.7
+0.3
+1.0
+15 6
95.0
94.8
94.9
94.7
84.7
+0.2
+0.3
+12.2
products
All commodities other than farm
products—
products and foods
Meats
of 26%.
Clothing
•
Repayment
of
indebtedness
and
retirement
of
preferred
stock was intended to absorb
56% of net proceeds, compared
with a monthly average of 58% for 1941.
Refunding of bonds
notes
1-31
96.8
Foods
of net proceeds to be applied to new money
purposes — expansion of plant and equipment and increase of
working capital—was substantially higher in January, 1942 than
for the average month of 1941.
Plant and equipment was to be
purchased with $24,344,000 and working capital was to be in¬
creased with $33,072,000.
Together these accounted for 35% of
the total net proceeds compared with a monthly average in 1941
$297,000,
2-14
1942
All Commodities
Farm
2-21
All commodities other than farm
The proportion
and
due to
,
the
largely accounted for by three issues: Alabama
was
for lumber, including maple flooring and most
types of yellow pine and redwood.
Quotations were lower for
gum, oak, red cedar shingles, and for rosin.
Higher prices for phosphate rock and mixed fertilizers ac¬
regis¬
The totals of the utility and manufac¬
„
includ¬
steers, and live
higher'-; prices
/.
following to say:
Electric, gas and water utilities accounted for 55%, manu¬
facturing companies 26%, transportation v companies
16% and
financial and investment companies 3% of the securities regis¬
central
-
.
,
was
in
grains,
most
cows,
'
The
un¬
and
worsted goods; 1.3% for
clothing; and 0.2% for cotton goods, mostly cotton yarns, brought
prices of textile products as a group to a 13-year peak.
Shoe
prices advanced slightly during the week.
Average prices for foods in primary markets increased 0.7%
largely because of higher quotations for canned and dried fruits,
j
'
further
0.2% and farm products and metals and
products advanced 0.1%.T Fuel and lighting materials, on
hand, declined 0.1 % with further reductions for oil and
gasoline in mid-continent fields, while average prices for house-
and
issuers, leaving $166,062,000 which
16.4
42.2
6
v
the
37.0
39.2
,
issuers for cash sale.
1941
9.7
the other
the
tered by the
Jan.
1942
parti¬
secur.
allied
the
as
Jan.
Amount
metal
volume of the preceding month, but was about
monthly average of 1941, Registrations effective
in January consisted of 13 statements covering 25 issues.
Of the
total effective registrations for
the month, $35,859,000 were not
proposed for sale and $23,250,000 were registered for the account
same
1941
56.3
hides and leather
securities
double
most
the
Jan.
Except for increases of 1.3% for textile products and 0.7%
for foods, price advances were
comparatively small.
Prices of
Exchange v Commission
announced
on
effectively registered under the Securities
Act of 1933 during the month of January aggregated $225,171,000,
according to an analysis prepared by the Research and Statistics
Subdivision of .the Trading and Exchange Division.
This was al¬
27
Percent
Jan.
1942
Amount
8
or
The
SecurityIssues Totali ng
|§§ $225,171,000 Were Registered In January
The
Percent
ticularly woolen and worsted materials, featured primary commodity
markets during the last week of
February.
The Bureau's all-com¬
modity index of wholesale prices for nearly 900 series advanced 0.3%
to 96.8% of the 1926
average, the highest level reached since Septem¬
ber, 1928.
In the past month the index has risen nearly 1% and it is
more than 20% above a
year ago.
national
^
Securities Proposed
For Sale by Issuers
Substitution
$93,455,000
^
of
nounced
of the close of business Jan. 31,
1942,
Amount V
Rises To
mem¬
basis,
or
The Bureau of Labor
1942,; aggre¬
same
1933
Labor Bureau's Wholesale Price Index
The total of money borrowed,
compiled
OF
34.4
ctfs. & ctfs. of dep.)
of the close of
28,
ACT
46.6
stock
Substitute
reported
by New York Stock Exchange
member firms
SECURITIES
3
stock
Warrants
exchanges
business Feb.
THE
Total Less Securities
$93,455,000
cipation,
beneficial
interest, etc.
borrowings
or
to be
were
$93,455,000
certificates
Certificates
SEG Reports 25
Feb.
amt.
Common
$324,558,799.
The follow¬
is the Stock Exchange's an¬
excluding
of the total, and
Less than
3
bonds
Preferred
gated $339,752,458.
$102,000,000 and $80,000,000, re¬
tion to total net proceeds/
bonds
Unsecured
of
securities
(chiefly !
propor¬
Secured
an
from other members
'
loans) and retirement of
preferred stock also declined to
spectively, although-in
as
UNDER
"
Effectively Registered
No. of
r"V;1-•
& v':-jCM'■ x;o
Issues
of the close of busi¬
as
States,
of refundings carried out, which
declined
••
Type of Security
The total of money borrowed
from banks, trust companies and
other
lenders
in
the
United
and
The reduction is mainly
1940,
due to the
that
borowed
97%
Reserved for Conversion
nouncement:
less
was
Exchange
3
through underwriters.
was
over
By Types of Securities—January, 1942
Total Securities
28
aggregated
$339,increase of $15,193,659
compared with the Jan. 31 to¬
as
$1,631,1939
REGISTRATIONS
•
i
Feb.
ness
752,458,
preferred
of other
totalled
March
money
ber firms
retirement
000,000 for 1941, which
ing $529,000,000 of the total. Flo¬
tations of corporate securities de¬
clined in the closing months of
the year so that the 1941 total of
explains
for
debt
and
indebtedness
-
SEC
funded
stock
496,000,000," including
cash
re¬
ceipts from sales of United States
Savings and Defense bonds of
more than $3,000,000.
In Decem¬
ber, alone, $2,131,000,000 of Gov¬
ernment •• securities
were
sold,
with Defense bond sales compris¬
The
used
be
of
on
ported by Stock Exchange
repay¬
of
to
sum
accounted for
-
the
was
total
corporate
new
indebtedness, 66% of
net proceeds
being
designated for this purpose. The
of United
$2,524,000,000 was less than the
preceding yearly figure by ap¬
proximately
$260,000,000. p State
and municipal offerings likewise
declined
to
$959,000,000,
while
other securities (chiefly eleemo¬
synary issues) comprised the re¬
maining $30,000,000 of offerings.
1941
proceeds
estimated
Almost three-fourths
total is
in
NYSE Borrowings
The New York Stock
to
agency
'
The
announced
of
use
through
issues
States Gov¬
ernment
direct
and
guaranteed
securities which amounted to $9,by
chief
EFFECTIVE
(or 2 %)
figures for nine months
were given in our issue of Feb.
5, page 571.
to
$3,016,000
twelve months.
of total net proceeds.
issues, $52,000,000.
issues
Other miscellan¬
purposes accounted for the
remaining $53,000,000
!
total
amounted to
Commission
and
series.
corporate flotations, an amount
below any year since 1935, ex¬
.
placed in 1941, which is some¬
what less than the percentage
cash in the fourth quarter of 1941
Securities
this
Money des¬
ignated
for
working
capital,
however, absorbed only $158,000,000 of net proceeds from all
1-
private
placements,
utility issues aggregated $404,000,000;
industrial
securities,
$176,000,000; and rail and other
The
in
amounted
in¬
new
applied
to be distributed directly by issuers.
Compensation to both underwriters and agents aggregated
$3,391,000, or 2.0% of gross proceeds, and other expenses amounted
to $9,993,000, or 0.6%, making total costs of flotation
$4,384,000, or
2.6% of gross proceeds, compared with 2.3% for the
preceding
1941 than in any year
from
be
and
were
was
since
the early 1920's. Public utility
companies also showed larger
additions to plant and equip¬
ment
through
money
raised
corporate bond financing,
of all> bonds,, notes and
debentures
Financing In'41
75% Of Cash Offerings
in
to
was
affiliation
agreements, and on these the estimated
average rate of remuneration was 9.9%.
Less than one percent
amount,
with * more
sales of equipment trust issues
from a
record peak of $770,000,000 in
the
preceding ■ annual period.
This amount, which is exclu¬
sive of issues sold by competi¬
tive bidding to ultimate inves¬
tors,
was
the smallest since
prior to 1938 when the growth
in this type of transaction in¬
creased
sharply
over
earlier
yearly levels. In relation to to-
every
the
«.
clined
securities
creased
Private placements of corpo¬
rate
issues
during
1941 de¬
needs and warrants the support
.
railroads
largely responsible for the
about $100,000,000.
that
by
for
the
distributed under
total in ten years. Purchases of
equipment
of net proceeds
$10,830,000
average rate of remuneration was 1.8%.
of all the securities registered by issuers for sale
3%
for purchases of
equipment rose to
and
securities:
principal method of flotation
these
on
intended
plant
since the series began, at
level
United
one
ities
remaining 9%
of
investment.
The
for
32%
of
net
proceeds. Proceeds from secur¬
pf
the
Underwritten
counting
hand,. declined to $735,000,000,
while
miscellaneous
other; issues—largely financial
companies—were at the lowest
themselves.
of the
program
for
trust issues. ; Issues f- $639,000,000, the highest amount
since this statistical series be¬
companies, on the
gan
in 1934, and the largest
other
Agriculture, of the American
Bankers
Association,
of - the
Agricultural Extension Service,
or
money"
—additions to plant and equip¬
ment and working capital—re¬
ceived by corporations in¬
creased to the highest level in
four years, amounting to slight¬
ly under $800,000,000 and ac¬
of industrial
of
.
consisted
two-thirds
equipment
The Food-for-Freedom
■\ Program is not any pet child of
the> United States Department
,
i-;.
of
purchase
amount of "new
The
in
,
all
was no significant change from
previous years.
«■
mar¬
utility companies
again were the largest corpo¬
rate issuers of securities, flota¬
tions of this group increasing
to $1,323,000,000, or 52% of all
corporate flotations.
Offerings
by railroad companies increased
to $366,000,000, of which more
challenge to
a
was
Public
'
■
.
as
1940, but was only
about 40% as large as in 1937.
same subject
Hart, Extension
Professor of Farm ^Management,
New York State College of Agri¬
culture, Cornell University, Itha^
ca, N. Y., said:
-
Dr.
was
^ approxi¬
was
1053
was
to
absorb
and retirement
$79,861,000, repayment of other debt
of. preferred stock $10,000,000.
Almost
PERCENTAGE
CHANGES
FEB.
IN
SUBGROUP
INDEXES
FROM
21, 1942 TO FEB. 28, 1942
Increases
Woolen
Fruits
and
and
worsted
goods
5.2
Plumbing and
heating
.
Lumber
3.4
vegetables
Fertilizer
3.0
Cereal
1.3
fertilizers
Other
farm
Paper
0.5
products,—
Shoes
1.1
.—_—
Cotton
1.3
——
Mixed
Other
q 4
materials
II
"
o 4
HH
(+3
IIIIII
0*2
0'l
o'.l
products
goods
~
__™
o 2
and
pulp
miscellaneous
Decreases
Grains
_
Livestock
Other
and
foods
—
—..
poultry—„
0.5
;
Dairy
Products
0.4
Petroleum products
0.4
Paint
and
■_
_III_IIIHH
paint materials
o 2
0.2
Q.i
THE COMMERCIAL & FINANCIAL CHRONICLE
1054
Endorse Community
Chest
For New York City
Business
endorsing
are
men
a
chest
wel¬
fare and health agencies in New
York City.
The suggestion" was
made by James G. Blaine, Chair¬
suggestion for a community
for the support of voluntary
of the Board
man
New
of the Greater
York
Fund, to representa¬
tives of 400 agencies at the Fund's
recent annual meeting. Mr. Blaine
emphasized that, in proposing a
community chest,, he was speak¬
ing solely as an individual and
not as an officer of the Fund, or
for
of
any
General
Postmaster
Funds
of the
man
boards, or com¬
Farley, former
its
James A.
mittees.
Chair¬
and
campaign last
told the meeting that "the
year,
donor deserves
a
break."
He said
During the: year manufacturing has accountedof 1,500,000 workers.
Federal, State, and local
government employment increased 443,000, trade rose .250,000;
v
In their monthly report on the trend of business in hotels, Hortransportation and public utilities 250,000; finance and service
wath & Horwath, New York public accountants, state that hotel
118,000; contract construction 90,000; and mining 26,000.
sales in January increased over the same month of last year at
The decrease in manufacturing employment from December
about the same rates as during the last half of 1941.
Total sales
to January was of less than the usual seasonal
proportions, but
rose 9%; room sales, 8%; and restaurant, 10%.
The total increase
was larger than the decline that occurred
during the correspond¬
in room rates was 5% against an average of only 3% for the year
ing period of the previous year.
The chief reduction among con¬
"1941, and occupancy at 71% is the highest for the month of January
sumers'
durable
goods industries—which are converting their
since 1930.
facilities, completely or partially, to the manufacture of muni¬
The firm's bulletin adds:
tions—occurred in automobile plants where 50,000 fewer wage
For beverage sales there was a country-wide increase of 15%
earners were employed.
against one of only 8% for food; all the groups except Texas re¬
:
Other consumer durable goods industries showing substan¬
ported bigger gains in beverages than in food.
tial employment declines were stoves, radios and
phonographs,
Of course Washington had the largest percentage of increase,
furniture, washing machines, clocks and watches, jewelry, and
and the highest average occupancy among all the groups.
Rates
} silverware. Substantial reductions were also reported by the
there were up 11%.
In New York City there were moderate in¬
following metal working industries: hardware, plumbers' sup¬
creases, confined mostly to the large, active transient hotels, but
plies, stamped and enameled ware, wirework, and lighting equiprates were up only 1%,
The Pacific Coast made a considerably
: ment.
Although seasonal factors were responsible for declines in
better comparison with a year ago than in December; while oc¬
a
number of the non-durable goods industries, shortages of raw
cupancy there was down 2 points, restaurant sales were up 9%
materials caused. decreases in such industries as
hosiery, rubber
and total business registered a gain of 3%.
tires and tubes, woolen and worsted
goods, carpets and rugs, and
silk and rayon.
Chicago had an average occupancy of 79%, its highest in
the last two years and, next to Washington, the highest reported
Employment for all manufacturing industries combined de¬
for January, 1942,
creased 1.3% over the month to 132.5% of the 1923-25
.
*
average.
|l
January Hotel Sales Advance
January,
Thursday, March 12, 1942
1941.
"
for
increase
an
,
people in the metropolis are be¬
wildered by the great number of
drives carried on throughout each
year and that the situation is fur¬
JANUARY, 1942, COMPARED WITH JANUARY, 1941
ther complicated this year by the
tRoom
Sales, Increase or Decrease
Occupancy
Rate j:
national
organizations appealing
Total
Jan,,
Jan;., Increase
for support.
♦Total
Rooms Restaurant
Food Beverages
1942
1941
or Deer.
Mr. Blaine said in part:
New York City
+ 6%
+ 4%
+7%
+ 5%
+ 12%
13%
11%
+ 1%
Because of present-day con¬ Chicago
+ 7
+7
+7
+6
+1079
78
+ 6
+15
+17
+12
+10
+15
56
52
+ 8
ditions, the time has come when Philadelphia
Washington
+24
+27.
+22,
+20
+27
85
74
+11
all of us should give serious
Cleveland
+ 7
+5
+9
+7
+12
69
70
+7
consideration to converting the
Detroit
+11
+15
+5
+4
+7
,71
66
+7
Greater New York Fund, as it Pacific Coast
+ 3
3
+ 9
+ 8
+14
64
66
.+ 2
Texas
+ 5
+6
+3^+5
— 9
74
69
— 3
is presently constituted, into a
All
others.*
+11
'
+ 9 f
+10
+12
+17
68
66
+6
full community chest in 1943.
Total
I believe that the present costs
+ 9%
+ 8%
+10%
+ 8%
+15%
71%
69%
+ 5%
of raising money could be re¬
tThe term "rates'' wherever used refers to the average sales per occupied room
duced materially if we had one and not to, scheduled rates. ♦Rooms and restaurant only.
:
,*
fund-raising agency in the place
,
Factory
,
,
He
"the
that
added
should have
public
ing how charitable funds should
be solicited" and suggested a pop¬
referendum
ular
similar
to
the
Gallup poll.
John W. Hanes, former UnderSecretary of the Treasury, was
introduced
Chairman
as
of
the
1942
campaign to succeed Mr.
Farley.
Mr. Hanes appealed for
united support in this year's drive
for agencies affiliated with the
Fund
Mr.
that
announced
and
campaign will
the
March 23.
open on
of
the
founded
in
Fund
it
since
1938,
chosen
President
Blaine.
William
was
succeed
to
S.
Gray,
Mr.
Jr.,
President of the Central Hanover
Bank & Trust Co., and Treasurer
the Fund, reported that the
for
1941 drive, under the Chairman¬
ship of Mr. Farley, produced $4,250,000, a gain of $500,000 over
any previous campaign.
Bank Loans For War
A further increase of
in
the
volume
commitments
cial
banks
to
of
made
loans
production is shown by the quar¬
terly survey of defense lending
activity of the American Bankers
Statistics
facturers
for
the
in
survey
defense
Dec. 31 of
increase
of
on
$2,229,289,460,
an
$464,289,460 over Sept.
30.
banks, 391 of which reported the
above
figure of $2,229,289,460,
says
the
announcement, which
The survey revealed
•
"
the
loans
made
and
that 77%
commitments
without
requiring
the assignment of the Government contract, while in 23% of
the cases was such an assign¬
ment required.
were
The 391 banks
(all
ger
and road
vehicles)
and
cars
tractors
'
month
Passen-
and
ger
Total
.cars
>
trucks
1942—
21,751
4,249
17,502
411,233
89,645
23,195
11,990
1942.
Other
construction
projects
107,243
20,313
6,651
13,662
432,279
362,897
69,382
17,213
12,579
struction
account
workers
in
Federal
these
approximately 12%
employees
Government,
During
construction pro¬
The number of
persons.
483,567
396,531
87,036
23,364
11,653
11,711
500,878
282,205
-
1940—
the
but
by
month
who
private
1039
452,142
December
373,804
78,338
16,978
Little
20,200
and
Judicial
fewer
by
sub¬
work¬
the number
in
branches
of
of employees
the
of the
FederaH0Qovernment
during the month of January, but the Executive branch showed
decline
of
porary post
25,900 workers, due mainly to the release of tem¬
office workers hired for the Christmas
Since
season.
January, 1941, the number of workers added to the staff of the
,
branch
Executive
Employment
492,000.
was
on
work-relief
The employment decreases
81,800
11,491
5,487
follows:
as
NYA,
declines in trade, construction, and manufacturing ac¬
largely for the decrease of about 1,235,000 in civil nonagricultural
employment
from
mid-December
to mid-January
Secretary of Labor Frances Perkins reported on Feb. 27.
"The de¬
counted
in
employment in wholesale and retail trade amounted to
760,000 workers, and reflected the usual reduction in temporary
personnel employed to handle the Christmas holiday trade," she
said.
"Contract construction showed a decrease of 161,000 as a re¬
sult of reductions in both Federal and non-Federal construction.
1942 and was 2,700,000 greater than in
were
work
/
during
distrib¬
program
31,100 and out-of-school work program, 50,700), CCC, 12,800
and WPA, 29,400
ployment
on
EMPLOYMENT
WHOLLY
AND
PAYROLLS
PARTIALLY
OR
Since January of last
persons.
ON
FROM
CONSTRUCTION
FEDRAL
WHOLLY FROM STATE
OR
FUNDS
LOCAL
Employment
.
,
Jan.
<
Program
Dep.
,
*1942
...
$U. S. Housing Authority—
Defense
Defense..
Other
UState Roads
—
—
ROADS
-Pay Rolls
=
:
1941
-
Jan.
•
Change from—
:
-
*1942
Dec.
Jan.
1941
v
1941
+312.0
.2
+325.0
156,958
+1,588
+
68,907
13,2
15,089
—1,803
+
2,176
—12.3
3,074
1,025
2.3
927
+
—14.8;
22.9
—
+
—
2.0
{Financed by PWA
-
'
$172,047
16.3
{Defense Public Works..—
STATE
ON
;
FINANCED
—14.6
922.0
6.7
Other.
AND
;
Jan.
1941
Other_,_——_—103.0
{Financed by RFC
em¬
'-V:;.';
•
eral Appropriations— 1,025.0
Defense—
per¬
FUNDS, JANUARY, 1942
—
Change from—
tFinanced by regular Fed-
PROJECTS
Un Thousands)
V'-
-
year
the work-relief programs has contracted 44%.
,
Seasonal Factors, Labor Dept. Reports
(student
persons
7%
declined
programs
the month of January.
Mid-January Non-Agricultural Employment
39,850,000 in January,
and
the construction and maintenance of State
on
change occurred
FINANCED
Gut By
directly
contractors
of January
force-
were
hired
not
were
and locally-financed. State roads.
sons,
...
con¬
Federally-financed projects in January
Except for
employed
were
all
defense
on
340,000
continued to
in January than in Decem¬
persons
employment
was
on
workers,
contractors.
ers
more
a year ago
1,066,000.
was
4,634
147,858
-
—
month
showed
also
Defense construction, however,
11,205
174,962
238,261
1941—
December
crease
construction projects
persons on
uted
90,403
-
—:
following
cars
,
15,
increase
jects since
cial
trucks
reported loans
Total factory employment declined by 145,000, employment falling
and commitments for supplies
and equipment totaling $1,005,- sharply in consumer" durable goods industries converting to war
production and in many seasonally curtailed non-durable goods in¬
507,334, and for new plant fa¬
dustries.
War industries, however, continued to expand at a rapid
cilities and construction, $714,rate.
Government employment was reduced by 57,000 as temporary
974,854.
For working capital
Secretary Perkins further
loans arising out of operations post office personnel was released."
stated:
of customers contributing indi¬
Civil. non-agricultural employment
totaled approximately
rectly to national defense they
reported $508,807,272.
The
ber.
a
cars,
Passen-
Total
Year
loss of
a
regular Federal appropriations during the
expand, employing 700
Commer-
Seasonal
adds:
post-holiday
400, and RFC 300.
Canada (Production)
The
ABA report is based on a survey
of 500 of
the country's
larger
of
manu¬
Commercial
December
outstanding
69
(INCLUDING CHASSIS)
^United States (Factory Sales)
and
loans
from
Legislative
NUMBER OF VEHICLES
while telephone and
gains over the year
employment declines; USHA employed 2,600 fewer persons, PWA
data received
on
Figures of automobile production in December, 1941, 1940 and
1939 appeared in the Feb. 19, 1941 isshe of the^hrdnicle,'' page_766.
January
for
based
Jan.
the
showed that 391 reporting banks
in 152 cities had defense loans
commitments
are
United
The
January
The
ending
from
figures for commercial cars, trucks, and road tractors
include those for ambulances, funeral cars, fire apparatus, street
sweepers, station wagons, and buses, but the number of such special
purpose vehicles is very small and hence a negligible factor in any
analysis for which the figures may be used.
Canadian production
figures are supplied by the Dominion Bureau of Statistics.
cabs.
cation
1.
trade,
Employment declined 14,600
States^ 20 making passenger cars and 63
making commercial cars, trucks, or road tractors (14 of the 20 pas¬
senger car manufacturers also making commercial cars, trucks, or
road tractors).
It should be noted that those making both passen¬
ger cars and commercial cars, trucks, or road tractors have been
included in the number shown as making passenger cars and in
the number making commercial cars, trucks, or road tractors, re¬
spectively.
The figures for passenger cars include those for taxi-
January
March
1942
amounts
the largest
'
retail
financed
have been combined in this report.
Association, for the quarter ended
Dec. 31, 1941, released for publi¬
on
seasonal
reported
The- Labor Department's announcement also had the
publication of foreign trade statistics has been suspended
and
goods
usual
to report;
for the duration of the war, the statistics on United States factory
sales of automobiles to the domestic market and to foreign markets
commer¬
war
the
companies
employment showed the usual
15%, while pay rolls decreased
12%.
Wholesale trade employment declined seasonally by 1.5%
over the month, while pay rolls showed
virtually no change.
Sizeable gains occurred in non-agricultural employment from
January, 1941, to January, 1942, in most of the States, with
Florida and Louisiana the only States showing decreases.
The
largest percentage increases occurred in Alabama (22.9); Oregon
(21.4); District of Columbia (21.2); Arkansas (17.9); Washing¬
ton (17.6); and California (16-4).
consisted of
As the
of
em¬
Little
about
telegraph
In
Output In January
238,261 vehicles, of which 147,858 were passenger cars
90,403 commercial cars, trucks, and road tractors, as compared
with 282,205 vehicles in December, 1941, 500,878 vehicles in January,
1941, and 432,279 vehicles in January, 1940. These statistics comprise
data for the entire industry and were made public on March 3 by
Director J. O. Capt, Bureau of Census, Department of Commerce.
173.2%
bituminous
interval,
and
$460,000,-
by
finance
Up
of
were
<
was
elected
Chairman
of
the
Board,
and
Thomas S. Lamont, a Vice-Presi¬
dent of J. P. Morgan & Co., was
000
Automobile
of
producing.
mining, quarrying and non-metallic mining, and bituminous coal
mining.
Changes over the month in the various public utilities
,
Factory sales of automobiles manufactured in the United States,
including complete units or vehicles reported as assembled in foreign
countries from parts made in the United States, for January, 1942,
Blaine, who had been Pres¬
ident
or
seasonal curtailment with
voice in determin¬
a
mines.
thracite
exist.
now-
month
January occurred in quarrying the nonsignificant change occurred in either an¬
coal, metal mining or crude petroleum
The largest increases over the year were in metal
metallic
.
of the number which
the
over
between December and
.
—
,
1.8%
Compared with January, 1941, factory
ployment advanced 14.7% and pay rolls 43.5%. The consider¬
ably greater increase in pay rolls reflects expansion in working
hours, overtime payments, and wage-rate increases.
Among the mining industries the only substantial decrease
.
....
rolls increased
pay
the 1923-25 average.
2.6
.8
—
+
*
—$215
+$71,083
—
334
—
+
120
+
463
3.4
—
14.6
2,147
—
454
—
1,488
—
.4
—
12.2
250
—
230
—
1,634
+
.1
15.5
—
.3
+
12.5
3,113
+
2,817
13.8
—
.4
+
12.6
2,719
+
.1
.1
—20.2— 3.5
12,015
.5
1.7
129.0
§
,
—,
40+2
§
+
235
2,829
+
199
+
284
+
36
+
98
888
+
1,443
—
♦Preliminary. {Employment data represent the weekly average; pay roll data are
for the month ending; the 15th except data for Federal-aid roads which are for the
calendar month.
Data for Federal-aid roads for January," 1942 are estimated.
{Em¬
ployment data represent the weekly average; pay roll data are for the month ending
the 15th.
§ Program not in operation.
([Data are for the calendar month. Employment
data represent the average number working during the month.
Data for January,
1942 are estimated.
•••
.
■
Volume 155
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4054
EMPLOYMENT AND PAYROLLS IN REGULAR FEDERAL SERVICES,
Thousands)
r,
'I
*Jan.
Service—
1942':
•
Executive
Dec.
I
.3*—
1941
1,645.0
Legislative" Z-TI—
Judicial
2.6
•Preliminary.
tDifference
less
1,379
+
.1
667
+
+
':
EMPLOYMENT AND
MANUFACTURING'INDUSTRIES
•
'
i'-i
;;
Jan.
1941
$252,740
.4
+
t
than
Dec.
1942
1941
.1
+
OF
%'
"■
*
ROLLS
TO
OF
1937
WAGE
CENSUS
EARNERS
OF
IN
MANU-";
1940 Income Tax Returns
>'■
Secretary of the Treasury Morgenthau made public on March 2
preliminary statistics of individ¬
(Three-year average 1923-25=100.0)
-Employment
1941
—$1,712
10
50.
-Pay RollsDec.
Jan.
ual
1941
1941
1942
1941
1941
turns
132.5
+
$74,326
65
+
;!: 26
•Jan.
1942
134.3
115.5
173.2
170.2
120.7
1940
through June, 1941, prepared
•Jan.
+
5
•
PAY
ADJUSTED
1055
FACTURES, EXCEPT AS INDICATED IN NOTES t AND X
Change from
-
-
+492.0
—25.9
6.3
—_
;
"■Jan.
Jan.
p E-;:
Pay Rolls
'
■
1942
JANUARY,
:(/>
Employment'.
Change from
V
,
INDEX NUMBERS
Jan.
Industries-
Manufacturing
All
Dec.
Durable
(In Thousands)
•Jan.
Dec.
1942
1941
Program-
1,024.0
Defense
1942
—881.0
•
$62,900
'
X
—$41,927
963
X
x
—
•
Student
work
^Civilian
307^0
program—
Out-of-school work
237.0
Corps—
Conserv.
•Preliminary.
progr.
31.1
140.8
—
—187.0
1,854
5,813
12.8
—
—137.0
50.7
—
—158.0
6,866
458
+4 1,115
619
914
—
44
2,152
6,462
—
are for the calendar month.
tDefense and other" categories
employment are for the last day of the month; pay rolls for the
tData
hot set up.
§Data on
entire month.
to
Dec.,
(prelim-
v
mary)
1941
Total civil non-agricultural employment.
39,838
41,073
Employees in non-agrlcul. establish
Manufacturing
Mining
33,695
34,930
12,594
12,739
878
908
1,713
1,874
—
Transportation and public utilities
3,262
3,296
Trade.
6,737
7,499
Finance, service and miscellaneous—
Federal, State and local government—
4,181
4,227
4,330
4,387
Contract construction
The Department states:
The estimates of "total
in domestic
agricultural
Jan.,
Jan., 1942
,
to
1941
■
Jan., 1942
37,142
+
30,999
+
2,696
—
145
11,075
+
1,519
—
30
852
+
26
161
1,623
+
90
Tools
shown
4,063
.57
3,887
+
443
"Employees in
separately
non-
each
for
of
-Pay RollPercentage
.Index
Jan.
1941
114.5
Dec.
1942
+14.7
1.3
+14.8
spec..
products —
and petrol, prod.
1.5
—
2.5
+
§
apparel—
Farm
—
+
—
+
(incl. bulk tank sta.)_
§
Automotive
1941
173.2
1.8
+43.5
—
.7
2.6
91.9
§
.
.
—
—
§
+
9
§
§
—
—
§
'
§
2.1
+
+ 14.2
§
2,5
§
1.6
§
;
.9
1.0
+
.
§
§
8
.2
2.3
§
—11.9
.5
5.7
§
.4
2.1
8.5
—34.8
+ 12.0
*•105.5
—30.2
+ 22.0
—20.0
+ 10.6
88.2
—13.8
+ 18.4
—
74.9
Furniture
—
1.9
8.2
76.5
mater..
—11.8
76.3
Automotive
—
4.3
+
.1
72.2
—12.4
76.5
5.0
79.5
—
+1
+
1.3
+ 16.7
—10.6
+
—12.2
t'i
—
—
*•90.3
Tel.
+
•*92.0
power
—
—
.1
+
*•70.5
buses**—,
.3
1.1
.8
+ 12.3
♦•124.1
+
1.7
••114.3
+
3.1
•*80.0
Anthracite
49.4
—
Bituminous—coal
95.3
Metalliferous
81.3
+
46.4
v
—
61.3
Crude-petrol, production..
.
94.2
Laundries
108.6
Dyeing & cleaning—
109.8
+
1.8
38.9
5.7
116.7
1.4
+ 12.1
94.4
8.5
+
11.2
47.7
.4
+
1.6
65.2
.2
-
—
—
+
+
—
1.1
+
1.4
«91.9
.2
+
7.1
103.9
+
8.8
86.7
3.1
§
Insurance
Construction
Water Transportation
Building
iIf
§
Brokerage
1
§
—12.0
74.3
5.4
ndiusted to
134.4
101.8
178.5
173.6
114.8
149.7
121.1
214.9
210.5
141.1
199.4
205.5
263.0
266.8
139.7
282.9
271.3
able
149.6
228.8
219.0
136.1
n
turns
X
X
individual
income.
with
287.9
144.9
150.1
97.9
X
t
147.5
274.8
109.4
89.3
153.3
■.r:-:*.,:■
v
161.8
130.8
224.2
235.0
141.0
208.7
152.8
327.8
290.0
176.3
X
X
t
t
116.2
128.5
155.8
147.9
147.7
■
66,068 show
X
X
X
X
There
t
X
X
X
t
:*
t
ual-and
X
t
144.3
145.5
131.1
196.5
193.1
146.0
X
prod.
t
X
t
t
X
X
X
manufactures
products
and
time-
t
111.9
devices
113.3
t
t
153.8
150.5
108.0
ware
refining
Smelting and
116.0
96.2
104.3
121.4
and
107.9
120.9
123.1
98.9
86.0
74.7
87.4
100.8
70.8
showing
returns
101.3
97.9
124.2
123.9
76.6
71.3
81.1
85.8
68.1
106.8
93.7
111.0
120.9
84.2
Millwork
71.3
74:4
70.4
66.0
71.8
63.8
65.3
62.5
66.4
68.0
59.2
clay, and glass products.
Brick, tile, and terra cotta—
95.5
99.7
85.9
100.4
106.8
79.6
Cement
77.7
income of
net
a
net
income,
the
57.7
Sawmills
with
101.5
74.3
14,409,626 individ¬
fiduciary re-
taxable
total tax is $104 and the effect¬
ive tax rate is 4.1%. For
taxable
copper,
102.8
net income.
no
are
$36,231,054,014 and 66,114 indi¬
showing a deficit
of $244,555,382.
For all returns
with net income, the
average
81.9
113.9
80.0
102.0
equipment
& plated
Silverware
tax
vidual returns
115.0
110.1
Jewelry
turns
X
106.3
& cop.
watches
no
non-taxable individual
returns,
7,020,355 show net income and
$
steam-railr'd
Shipbuilding
recording
normal
with
7,363,715
liability, the alternative tax is
$537,274,655 and the defense tax
is $47,016,936.
Of the 7,086,423
t
t
Brass, bronze,
the
is $81,401,469.
For the 25,602 returns with alternative tax
128.7
156.4
Non-ferrous metals & their
returns
For
tax
$
202.8
219.1
102.9
&
in-
net
fiduciary re¬
net income, and 46
liabilities, the normal tax
is
$403,433,975, the surtax is
$425,011,869, and the > defense
151.6
211.8
parts
Automobiles
Lighting
with
with
are
are
Hfei
211.2
110.0
Locomotives
Clocks,
X
X
&rv s
Aluminum
63,489
come,
returns
117.4
150.4
t
electric-
7,389,317 tax¬
7,325,782 are in¬
net
239,4
$ .i
210.1
Aircraft
Cars,
251.3
7:
X
t
&
total
a
the
returns
180.9
176.3
Of
returns,
dividual
167.5
167.2
returns
liability of $1,494,138,904,
7,086,423 are non-taxable
returns.
237.7
183.6
152.3
phonographs
& parts
Typewriters
lead,
and
zinc
Lumber and allied
products
Furniture
Stone,
74.3
64.8
64.4
72.5
54.6
80.7
64.8
85.1
89.0
61.1
128.9
132.0
114.4
171.2
172.2
131.0
39.2
43.7
39.0
28.7
35.0
average total tax is
$202 and the
effective tax rate is 6.4%.
122.3
104.7
120.1
130.8
95.5
—
4.1
.
Non-Durable Goods—
110.7
Carpets
Cotton
small
wares
Dyeing & finishing
Hats, fur-felt
Hosiery
textiles.
underwear
Silk
and
Woolen
95.2
74.7
111.9
100.7
141.7
139.8
96.9
108.5
91.6
124.3
129.2
92.7
134.8
134.9
141.0
141.1
120.2
72.9
75.6
135.0
77.4
85.6
82.4
81.7
163.5
-
148.6
73.6
56.0
85.6
76.9
99.1
98.1
74.3
139.7
143.3
144.4
125.0
61.0
65.0
61.8
62.2
52.6
110.7
99.9
127.1
133.8
93.6
123.2
60.2
goods.
Wearing apparel
Clothing, Men's
Clothing, Women's
73.0
119.4
goods
worsted
and
80.5
152.6
66.2
93.1
145.6
144.0
rayon
83.0
142.9
.
95.0
108.2
cloth
Knit
123.6
80.8
75.0
outerwear
Knitted
122.1
121.3
127.5
—
Knitted
119.1
99.7
82.1
133.7
goods
106.4
89.8
103.9
rugs
106.2
81.3
112.4
and
113.0
104.7
and their products
Fabrics
-
Mo.,
Loan
annual
the
and
President
to
have
the
added
responsibility of conducting
the Graduate School of
Savings
and Loan, a project which the In¬
stitute began in the summer of
107.4
111.7
107.3
111.5
87.2
127.5
133.3
119.5
109.6
113.4
112.0
139.0
138.4
115.8
1939.
furnishings
Millinery
106.9
119.9
107.5
117.9
132,9
103.2
ident
69.3
60.1
74.9
49.9
39.6
55.2
collars
130.8
135.1
118.8
140.4
153.3
104.3
99.1
99.2
93.4
107.7
106.7
83.3
and
Metropol¬
City, will be the fourth
Institute
116,7
Shirts
of
Association,
Kansas
10912
garments..
19th
business.
who is President of the
itan Savings & Loan
161.5
allied
the
St.
$6,000,000,000 savings
Mr.
Webb,
loan
120.7
&
in
of the educational
organization of
the nation's
162.7
93.1
at
conference
held
Paul,
Minn., on Feb. 14.
He succeeds
L. H. Allen,
Houston, Tex., as head
117.5
.
_
Institute,
midwinter
Institute
155.7
1
J.
Webb, of Kansas
was
elected national
President of the American
Savings
City,
and
products
Pottery
Textiles
Webb Heads Institute
Edward
26.9
119.6
.
and
slate,
granite,
other
York
The
is
new
Charles
First
L.
City, and the
Vice-Pres¬
Plumb, New
man
started in
135.1
140.7
157.1
120.2
line as Second Vice-President is
Jack E. Barry, of Oklahoma
City,
who has served for several
years
as
his district's member of the
148.6
151.5
140.5
156.4
157.5
134.5
Institute's board of trustees.
Beverages
283.4
289.4
256.1
346.0
358.6
289.0
Butter
100.3
101.4
91.6
95.6
95.6
80.1
123.2
Leather
and
Its
and
shoes
manufactures-
95.6
95.2
91.4
101.4
99.5
80.1
26.4
and
+
—
+
.9
kindred
Canning and
+19.4
.7
+
.3
98.2
85.8
119.7
121.8
86.7
121.4
154.2
—
+
2.7
+
V
Ice
+ 34.1
Paper
—
+
—
—
+
—
1.3
2.1
7.2
§
+
.3
2.2
§
+
3.0
1.7
§
3.4
fill
+
.
and
64.5
67.1
printing
137.7
228.0
98.6
116.3
183.2
168.5
70.5
254.8
89.6
98.2
70.3
67.4
60.8
71.1
'56.5
67.7
73.0/
61.1
70.7
70.9
136.2
144.1
76.7
John
124.4
128.3
136.8
144.7
118.4
178.5
192.6
115.7
172.3
169.9
127.5
106.9
110.0
103.6
104.4
109.7
94.7
115.6
122.3
115.2
112.8
128.5
..108.1
148.9
148.6
126.3
203.3
200.9
142.1
129.2
129,3
119,1
171,6
173,9
132.2
153.7
153.2
128.1
213.0
209.2
Chemicals
145.2
186.6
185.9
152.0
280.0
271.6
188.2
Cottons'd—oil, cake, & meal
Druggists' preparations
Explosives
102.4
116.7
114.3
106.0
125.5
150.7
149.2
116.1
182.7
184.0
t
X
t
t
t
Fertilizers
120.0
105.8
103.8
118.3
106.2
Paints and varnishes
140.7
142.2
126.3
172.8
176.0
137.4
Rayon & allied products
314.5
321.1
313.5
392.0
391.2'
335.9
90.8
92.3
a: 85.9
132.9
133.5
107.7
110-8
98.8
134.9
138.0
111.6
80.8
68.0
96.6
109.3
79.2
and
and
.
—
.1
+ 19.1
Soap
Rubber
products
Rubber
boots
Rubber
tires
Rubber
goods,
100.6
.
and
&
shoes
Inner
other
tubes
,
.
74.0
111.0
130.9
■r
$
85.5
76.4
85.4
77.9
114.6
109.5
175.0
97.9
190.3
168.9
219.4
238.9
173.5
•December, 1941, indexes preliminary; subject to revision.
tAdjusted to preliminary
tlncluded in total and group
indexes, but not available for pub¬
lication separately,
§Indexes not comparable to indexes
appearing in press releases
dated earlier than Nov., 1940. Revised
figures available in
1939
census
ginia.
N.
W.
Mitchell,
WinstonSalem, N. C., for District 5, com¬
prising all of the Southeastern
States.
refining
Other than petroleum
refining
7.9
+ 13.9
115.4
coal
products
1.9
+
job
petroleum
116.6
"
Petroleum
+ 18.3
—
Allen, Philadelphia, for
District 3, comprising Pennsyl¬
vania, Delaware and West Vir-
131.8
129.1
y
'
sey.
59.3
58.3
129.5
-
paper
Staugaard, Ruth¬
erford, N. J., for District 2, in¬
cluding New York and New Jer¬
71.1
68.7
are:
Christian W.
96.3
87.6
year.
They
119.7
103.4
•
63.0
Newspapers and periodicals.
+15.7
New
District governors who sit on the
of trustees were chosen in
seven of the 12 districts this
board
58.8
55.5
and
Book
9.3
—12.6
+
67.7
62.2
pulp
Printing and publishing:
+ 17.1
1.5
72.2
71.0
67.6
manufactures
Boxes,
+ 29.3
.9
—
86.9
89.3
92.2
cane
Chewing & smok. tob. & snuff
Cigars and cigarettes
1.2
—14.2
+
79.2
123.31
80.3
'
143.5
beet
refining,
Tobacco
129.4
106.4
76.9
69.9
Cream
Sugar
121.9
86,9
78.9
,92.2
Slaughtering & meat packing.
Sugar,
90.8
105.6
79.3
Confectionery
8.8
+ 33.0
.7
preserving
110.9
Flour
+ 13.2
-.,+, 8.5
products
Commission.
1935 Census,
69.2
Glass
Marble,
Paper
tSource: Interstate
tAdjusted to preliminary 1939 Census figures,
••Retail-trade ..iwvavg
indexes
§Nofc av&ila-blo.
"Less 1-10 of 1%,
public utility indexes to 1937 Census. ttCovers street railways
and trollev and motorbus operations of subsidiary, affiliated and successor companies.
1 tCash navments only; value of board, room, and tips cannot be computed.
S§Based
on
estimates prepared by the United States Maritime Commission
MPay roll index
in 1929 base not available.
Includes war bonuses and value of subsistence and lodging.
•Preliminary,,
rommerce
wheels,
products—
Transportation equipments
Services:
(year-round)
89.4
ill!
tools
Chemical,
Mining:
Hotels
87.1
120.1
9.1
+ 16.1
4-l
Utilities:
nonmetallic.
105.3
112.3
122.3
of
surtax
machinery
+ 13.5
—
**95.0
86.8
&
160.5
93.9
93.5
163.6
Leather
S
.
.1
If
4.0
§
•
5.0
—15.3
112.0
Quarrying
169.9
94.5
175.8
& suppl.
water
shop
&
Food
**105.3
Food
&
turbines,
mach.
&
Boots
+
112.6
Apparel
rys.
102.7
105.7
185.1
windmills
Radios
1941
8
§
+
*
**95.7
Street
123.9
number
taxable returns with
J tax
i
Men's
(1935-39=100)
—
§
Electric light &
91.8
214.4
transporta¬
mach., apparatus,
Machine
Jan.
(1929=100)
§
&
109.5
297.6
total
14,475,740, of which 7,389,317
Baking
1.3
—
:// §:
§
products
Mach., equip. & suppl—
Tel.
100.0
291.6
104.3
v
94.9
Wholesale
Public
97.7
151.5
impl.
Corsets
Trade:
bldg.
is
are
136.8
(1923-25=100)
(1923-25=100)
U32.5
(1929=100)
&
The
106.9
124.4
130.4
105.3
tinware
Textile
change from
*Jan.
1941
(1935-39=100)
Lumber
165.2
196.0
152.7
!
190.6
s
220.2
121.7
metalwork
saws)
Cotton
Dec.
tClass I Steam Railroads—
_
&
following Adata is contained
and
(incl. tractors)
adding machines,
calculating machines
Fdy.
•
•Jan.
merchandising.
97.3
164.4
registers,
Elec.
manufacturing,
1942
General
107.7
182.3
Agrlcult'l
Cash
118
estimates for
134.1
2X5.4
fittings
Machinery, not incl.
tion equipment
&
The
preliminary report,
Lumber:
Industry—
Petrol,
93.3
ap¬
Wirework
250
—
other
files
250
-Employment
Percentage
Index
change from
Dry goods &
17«VR
120.2
-
(not incl. edge tools, mach.
+
mining, building construction,
laundries, and dyeing and cleaning cover wage earners only;
those for railroads cover all employees while the data for water
transportation cover employees on vessels of 1,000 gross tons or
over in deep-sea trades only.
The data for other industries ex¬
clude proprietors and firm members, corporation officers, exe¬
cutives, and others whose work is mainly supervisory.
food
260 5
120.1
V 94.9;
ware
heating
steam
&
tools,
&
adjusted for seasonal variation.
&
&
cans
+
prior to 1929 is not available from the Bu¬
records, and the 12-month average for 1929 is used as a
in computing the index numbers.
These indexes are not
Groceries
139.9
267.9
87.6
133.0
.
enameled
ornamental
&
+
reau's
Food
185.0
138.9
98.1
The
in the announcement:
—
hot-water
6,487
formation for years
Manufacturing
185.3
169.6
97.9
91.8
Struct.
employment and pay rolls for all manufacturing
for
131.3
172.1
'
supplies
&
3,012
for
data
148.6
Statistics of Income for 1940, Part
1, will be published at a later
date.
\
209.2
34
January, 1942, with percentage changes from
December, 1941, and January, 1941.
The 3-year average 1923-25
is used as a base in computing the indexes for the manufacturing
industries and the 5-year average 1935-39 as a base for Class I
steam railroads.
For the other non-manufacturing industries in¬
The
130.8
174.8
149.9
46
for those nonmanufacturing industries for which information is available, are
-
175.0
:
91.4
762
—
industries combined, Class I steam railroads, and
base
122.3
112.8
,,
below
138.5
117.6
—
time of the Census.
shown
der the direction of Commissioner
of Internal Revenue Guy T. Hel-
113.8
—
■
major industry groups.
Data for the manufacturing and
trade groups have been revised to include adjustments to pre¬
liminary 1939 Census data.
The figures represent the number of persons working at any
time during the week ending nearest the middle of each month.
The totals for the United States have been adjusted to conform
to the figures shown by the 1930 Census of Occupations for the
number of non-agricultural "gainful workers" less the number
shown to have been unemployed for one week or more at the
of
''108.1
109.8
2,696
—1,235
—1,235
seven
Indexes
132.0
141.3
and
rivets__
&
;
Engines,
are
195.9
138.7
120.3
Tin
civil
The
service.
establishments"
,203.9
vering.
Stoves
Jan., 1941
non-agricultural employment,"
given on the first line of the above table, represent the total num¬
ber of person's engaged in gainful work in the United States in
non-agricultural industries, excluding military and naval per¬
sonnel, persons: employed on ;WPA, or NYA projects, and enrollees in CCC camps.
The series described as "Employees in
non-agricultural establishments" excludes also proprietors and
firm members, self-employed persons, casual workers and per¬
sons
118.3
112.7
Hardware
&
un¬
144.3
(not
paratus
Change
Change
Dec., 1941
Jan., 1942
works,
washers,
pipe
Plumbers'
in¬
defense tax returns for
in the period
January
filed
124,7 ;
including silver &
plated cutlery), & edge tools
Forgings, Iron and steel
Steam
(In Thousands)
steel
nuts,
8tamped
ESTIMATES OF TOTAL NONAGRICULTURAL EMPLOYMENT
••
furnaces,
rolling mills
Cutlery
re¬
148.8
Blast
Cast-iron
tax
fiduciary
137.0
their products,
machinery
&
including
Bolts,
tNYA projects:
steel
&
not
1941
5,907
—
—
Iron
Jan.
v//, ■+•
—$6,870
19,800
32.0
—
1941
/
43,100
2.6
+
699.0
Dec.
•Jan.
defense
143.8
-
Goodst
v: Durable Goods—
Change from
Jan.
and
and
taxable
121.7
Goodst
Non-durable
.
,
-Payrolls-
1941
'
29.4
—
325.0
I
Other
.
Employment
Change from
and
come
Industries!
EMPLOYMENT AND PAY ROLLS ON WORK-RELIEF PROGRAMS, JANUARY, 1942
■
income
figures,
mimeographer form.
Governor Wilson R. Paxton,
Detroit, for District 6, compris¬
ing Indiana and Michigan.
Hubert James,
Des Moines,
re-elected
for District 8, com¬
prising Iowa, Missouri, Minne¬
sota, North Dakota and South
Dakota.
Henry
A.
Bubb,
Topeka,
Kan., for the 10th district, com¬
prising Kansas, Nebraska, Colo¬
rado and
E.
O.
Calif.,
Oklahoma.
Morgan, Los
for
comprising
Angeles,
district,
California, Arizona
and Nevada.
the
12th
THE COMMERCIAL & FINANCIAL CHRONICLE
1056
SEC 1941
Market Value Of Stocks On New York
The New York Stock Exchange
stock issues
Stock Ex¬
This com¬
pares with 1,237 stock issues, aggregating 1,466,994,284 shares listed
on the Exchange on Jan. 31, 1942, with a total market value of $36,228,397,999, and with 1,228 stock issues, aggregating 1,454,709,059
shares on Feb. 28, 1941, with a total market value of $39,398,228,749.
In making public the figures for Feb. 28, the Stock Exchange
aggregating 1,467,001,959 shares listed on the New York
change with a total market value of $35,234,173,432.
said:
'
the
of
As
Exchange member total net borrowings amounted to
The ratio of these member borrowings to the market
stocks
listed
that date
on
industrial
ratios will
borrowings
$
•
12$52
266,590,352
21.42
548,835,197
396,928,477
18.22
400,180,415
18.37
20.79
249,451,552
21.24
4,806,216,219
50.45
5,043,609,496
52.94
1,163,626,559
553,519,974
664,400,010
——
Building
29.06
1,198,424,467
29.93
42.24
570,720,024
.
and office equipment—-
Business
Chemical
—
Electrical equipment
Farm
machinery
____.
.____—______—__i~
Financial
Food '
———
Garment
______—'
—
13.09
2,338,094,636
39,072,889
25.10
22.54
23.33
15,293,450
3.14
.15,212,179
3.12
190,658,622
22.72
196,440,271
23.41
17.77
1,232,776,189
12.12
1,394,521,200
23.59
1,430,120,290
24.19
________
349,201,098
15.76
—
354,890,271
3,589,542,965
18.68
3,827,396,430
19.92
2,888,345,592
25.61
2,926,952,786
25.95
1,772,912,772
24.17
1,821,113,642
24.83
272,572,437
25.74
270,691,033
25.56
89,840,541
9,183,544
2,066,273,693
20.96
93,597,506
21.84
5.00
9,475,632
5.16
40.65
2,097,073,010
41.26
329,283,638
23.47
331,484,246
23.63
1,070,616,824
'40.04
1,126,370,263
42.13
1,564,236,660
16.93
1,615,323,725
17.48
715,756,492
7.47
751,008,801
7.84
,——-
Leather
Machinery and metals
(excluding iron)
Mining
Paper and publishing
Petroleum
__________—
Railroad
Retail
43.55
669,609,557
23.79
2,215,979,568
37,749,275
1,209,298,472
and realty
Land
16.75
12.99
—
—
merchandising
L
Rubber
Ship building and operating——
Shipping Services ______-__—
Steel, iron and coke
Textiles
_
Tobacco
16.02
(operating)—
Gas and electric
electric
and
(holding)
2,846,347,898
68.07
71,901,504
2,862,254,492
71,600,855
450,039,803
13.67
501,730,204
699,835,389
17.29
101,483,923
17.29
109,340,160
18.63
companies operating abroad
companies
,_4
businesses
Miscellaneous
All listed stocks
,
and the average
-%l
''
price of stocks listed
the Exchange:
on
24.70
Market Value
1940—
Mar.
30—
31.68
Feb.
Mar.
$
31
46,694,763,118
32.34
.
Apr.
30
46,769,244,271
32.35
May
30
31
May
31
36,546,583,208
25.26
June
30;
June
29_
July
July
31
31_.
38,775,241,138
39,991,865,997
26.74
40,706,241,811
28.00
Aug.
——.
41,491,698,705
31
—.
.*'
42,673,890,518
27.51
27.24
:__
Oct.
31
NOV.
29—
•fit*
Dec.
28.56
41,848,246,961
28.72
Dec.
31
41,890,646,959
28.80
;/
?:
27.07
28.46
Feb.
27.68
28
'
-
^
and
35,234,173,432
24.02
companies, which were
water
face
as a
Agents
..
Public
In
in
roads.
first
82,539,000
253,618,000
over
5,475,000
10,766,000
248,143,000
112,869,000
gains
the 1941-week totals
in each class of construction
bridges, $406,000;
are:
over
last week are
are
capital for construction
purposes
$4,645,000;
The amount
was
year.
for the
to date, $1,376,140,000, is
corresponding
included
.<
ten-week
the
Types
of
issue
current
of .the
Organon",
pounds
as
For
ship¬
35,900,000 pounds, a
decrease
of
13%. as
compared
with 41,200,000 pounds shipped in
January and 31,600,000 pounds in
February, 1941. It is also pointed
1941,
the public
increase
an
of
16%.
ments totaled
out:
;
tributed
number *
OF
yarn
from the
part to the fewer
of
working days as
compared with January, and in
in yarn
acetate
yarn. The reason for the decline
.in acetate yarn production is
raw
material
shortages.
For
some time now the tightness in
part
registered in the month of December, 1941,
ACT
rayon
in
to
curtailment
particularly
a
output,
others, the ratio of the latter two to the
Securities—January-December,
of
ments
Likewise, while
was
:
......
high January level may be at¬
the amount offered to
over
•
'
;r The decline in February ship¬
;
the
supply
of
acetate
rayon
materials
has been
well
known.
These
shortages
are now showing up for the first
raw
yarn
$61,-
time
.
1933
•
1941
in terms
of reduced
ace-
output.'"
;
"Organon" likewise reports:
tate
rayon
Stocks
of rayon
yarn
,
in the
"
hands of producers registered a
further
decline ^ during
Feb¬
Total, Less Securities
Reserved for Conversion
-
or
Substitution
Securities
r
Percent
Effectively Registered
Issues
Face
Common
Ctfs.
stock—
(v.t.
or
33.4
45.3
24.8
22.0
620,767,795
'159,729,496:
163,546,607
238,383,543
620,767,795
159,729,496
159,729,496
6.4
73
278,161,953
795,723,038
277,811,953
514,725,555
11.1
15.2
20.6
12.9
$730,430,152 ' 36.9
Dec.
1940
31.4
53.0
25.2
8.1
i__
8.3
12.1
8.7
9.2
3.9
The
33
64,230,256
64,230,256
2.6
4.5
63,894,551
3.2
15
27,685,250
27,685,250
1.1
0.1
2,000
0.0
18
5,206,433
363
2,787,153,194 2,500,599,278 100.0 100.0 1,976,754,144 100.0 100.0
inventory of rayon fila¬
ment yarn
ers
etc.
secur.
Total
-
V
ctfs. & ctfs.
deposit)
Grand
1941
1941
30
142
Amount '
Amount-
rgts.
int.,
Substitute
of
—
Dec.
Amount
partic.,
of
benef.
1940
Jan.- Jan.•:
amounting .to 4,400,000
pounds at the
close :of the,
month, as compared with 4,800,000 pounds at the end of Jan¬
uary.
7
ruary,
,
$835,648,973
5
bonds-
ctfs
stock
Dec.
$835,648,973
620,767,795
47
bonds
amt.
Dec.
No. of
Proposed
for Sale by Issuers
'
Percent
Jan.- Jan.-
Type of Security
Unsecured
for the week totals $3,677,-
year
were
'
i
.
aggregated i77,100,000
in the substantial excess
REGISTRATIONS UNDER THE SECURITIES
By
Warants
financing for the
■»
published on
March 6 by the Textile Economics
Bureau, Inc., New York. The Bu¬
reau states that cumulative ship¬
ments for January and February
typical of the pre¬
registered for sale for the accounts of issuers
EFFECTIVE
Secured
sales.
period last
of
The following table is supplied by the Commission:
246,000.
com¬
All of the week's financing is in state and municipal bond
just double the volume reported
and
housing, $14,366,000; public
decrease of 59% from the volume reported for the week last
New construction
in the list.
"Rayon
preceding month and with $322,618,000 in December, 1940.
000 in the
Preferred
year.
underwritings
Total Securities
roads, $6,737,000; and unclassified construction, $11,673,000.
a
•
the Commission, totaled $121,862,000, compared with $193,416,-
says
in waterworks, sewer¬
industrial buildings,
Large amounts of naval
pine oil, pine tar,
rosin and tarene
higher than in any of the preceding six years.
was
Sub-totals for the week
buildings, $102,563,000; earthwork and drainage, $327,000; streets and
000,
month.
the issuers at an average compensation of
waterworks, $2,626,000; sewerage,
mercial building and large-scale private
New
to handle $267,498,000, or 14%, at an average rate
holders
_
$2,058,000;
underwritten at an average compensation of 2.0%.
Securities effectively
123,635,000
22,545,000
and commercial and public buildings.
age,
of participation in
,
of the $1,050,160,000 of securities registered by
53%
amount offered to
21,766,000
industrial and commercial buildings, and streets and
Increases
of the
$145,401,000
groups,
live-
stock
sale, depended primarily > on February. alone,; however,
similar to the preceding years
was
13,004,000
the classified construction
sewerage,
Financial and investment com¬
proportion of those sold directly by issuers.
1941
$266,622,000
Federal
of
stores such as
-
the
21,423,000
Municipal
Nations.
quantities
'
ceding years, but the year 1941 showed a substantial increase in
$103,962,000
59,994,000
and
-
,
The predominance of
0.1%.
$1,266,833,000, is 63%
securities
Construction
United
the
and
coun¬
companies with compared with 66,600,000 pounds
unsecured bonds and a substan¬ in the corresponding period of
$233,833,000 for
sold directly by
Mar. 5,1942
Construction
State
were
Feb. 26, 1942
1941
in
cane
feed, grass and clover
(seeds, and dehydrated vegeta¬
bles were bought during the
*
Construction
Private
of their
.
Mar 6,
Total
tries
Additional
•.
compensation of 5.0%, while $659,096,000, or 33% of the total, were
to be
result of the 115% gain in Federal work.
are:
Over
8.
Construction totals for the 1941 week, last week, and the current
week
first in volume of securities
certificates, with certificates
of
place.
all groups were
000, an increase of 27% over the volume for the opening ten-week
period last year. Private work, $142,171,000 for the period, is 57%
I
amount
second
volume tops a year ago by 50%, but is 51% lower than last week.
The current week's total brings 1942 construction to $1,409,004,-
higher
Electric, gas
Transportation and communication
of common stock.
registering
panies,
volume topped the $100,000,000-mark. Private construction is 1%%
above the week last year, and 67% higher than last week. Public
construction,
in
Jan-
oil
wheat, vitally needed by
states
tial proportion
Engineering construction volume for the week totals $145,401,000,
but public
both
linseed
edible
sugar,
v
companies with $517,912,000, and manufacturing
increase of 40% over the corresponding week last year, but 45%
below the 1942 high of a week ago, according to "Engineering NewsRecord" March 5. This is the seventh successive week in which the
ago,
bought
of
registration in secured bonds.
24.70
an
year
distribution
included granulated
uary
•
This order of types by volume—bonds,
registered for sale with $637,525,000, had over three-fourths
^
Engineering Construction Down 45% In Week
a
farm
•:
commodities
equity securities. Pre¬
of all se¬
Types of securities varied also by industry.
7.
24.46
36,228,397,999
-
all
Lend-Lease
volume and dollar value.
stock, preferred stock—followed the pattern common to
preceding years.
.
'
6.
A gross classification of types of securities and size 'of issue
showed a tendency for large issues to be of the credit obligation
total assets.
25.87
37,882,316,239
•;
31——
•
26.66
39,057,023,174
Jan.
of
As in previous months, dairy,
poultry
and
meat
products
made up the largest groups of
amount certifi¬
28.32
35,785,946,533
31
1941, credit obligations—bonds and face
$502,090,000, depended heavily on
below
ment added:
:
common
28.02
:
40.984,419,434
1942—
1941—
40,279,504,457
25.84
39,607,836,569
41,654,256,215
41,472,032,904
'
mm*'
25.78
37,710,958,708
37,815,306,034
—.'
29.38
30
31—
$
27.08
—.
mm
Nov.
Jan.
—
;
31
Aug. 30
Sept. 30
'
Bept. 30__
Oct.
Apr.
in
certificates
Price"
39,398,228,749
28
31.96
value
bought for
shipment and other
of issues of preferred and common stocks, and
participation were under that amount.
A similar Rayon Yarn Shipments Up
tendency was evident with respect to size of issuer.
The majority
V; Shipments of rayon yarn to do¬
by number, if not by dollar amount, of issues of bonds were sold
mestic mills thus far in the new
by companies which had assets totaling more than $10,000,000, but
year
are running
ahead of :the
the majority of the number of issues of securities of the equity
corresponding period of last year,
type were sold by companies of less than that size as measured by
Average
•39,696,269,155
1941—
$
45,636,655,548
46,058,132,499
—
f.o.b.
while the majority
'-''S'
Market Value
Price
$
31—
29_
mulative
products
type and the smaller issues to be of the equity type. To illustrate,
the majority of the issues of bonds were over $5,000,000 in size,
:■
V-
Average
•'
Feb.
.
the
*
Jfln,
,
•
We give below a two-year compilation of the total market value
.
_
proceeds of $1,931,521,000 from sale of
needs
account of issuers, $501,460,-
curities of the equity type.
9.76
35,228,397,999
24.02
35,234,173,432
products
1941 for the
cates—were about three times the volume of
.
S.
,
ferred stocks accounted for about a third of the volume
15.24
17.17
Miscellaneous
U.
.
to be retired with
were
sale
68.62
9.81
694,850,198
Communications
Foreign
;
.
$122,725,000, which was 20% of their net proceeds.
5. Of the various types of securities registered by issuers for
Utilities:
Gas
farm
$1,006,849,000, other debt with $62,f; uary buying pushed the total
172,000 and preferred stock with $48,397,000.
■
of all meat products purchased
3. The application of net proceeds to different purposes varied
to almost a billion pounds, at a
with the type of security.
The proportion of net proceeds applied
cost of over $205,000,000. Dried,
to new money purposes was much greater for stocks than for bonds.
frozen, and shell egg purchases
Slightly over 40%, or $184,541,000, of the net proceeds from the
converted into shell egg equiva¬
sale of preferred and common stocks were expected to be applied
lent showed that some 308,000,to "new money purposes.
The amount from the sale of bonds to
000 dozen eggs were bought at
be similarly applied, $316,918,000, was a greater aggregate than
a cost of more than
$92,000,000.
that from stocks, but constituted a smaller proportion, 21%, of
Cheese exceeded 200,000,000
the net proceeds.
pounds at a cost of about $46,4. The most substantial contributions to new money purposes
000,000, while over 956,000,000
were by manufacturing companies and by transportation and com¬
pounds of evaporated milk and
munication (mainly telephone) companies, with $170,781,000 and
24,000,000 pounds of dried milk
$169,795,000, respectively, which amounted to 35% and 33%, re¬
accounted
for
an
additional
spectively, of their total net proceeds.
Electric, gas and water
$80,000,000.
utilities, although first in volume of gross proceeds, were third
Heavy purchases during Janin size of aggregate funds applied to new money purposes, with
v
12.60
2,559,122,040
16.63
244,213,260
.
___—
notes
Price
22.18
263,994,526
Automobile
Market Value
2,650,392,186
544,992,052
Amusement
Aviation
Of the estimated net
.
was expected to absorb $1,117,418,000, or 58% of the net pro¬
ceeds, as compared with 79% in the preceding year. - Bonds and
Average
Price
Market Value
V;■ v.:-.-yy
> ■■
■
of the
by the SEC of the main results
stock
Jan.31,1942
28, 1942
Average
Group—
issued
plant and equipment and about one-third for expansion of work¬
ing capital.
\
!
2. Repayment of indebtedness
and retirement of preferred
price for each:
-Feb.
of
approximates $694,000,000
for the period March 15 through
000, or 26%, was to be applied to new money uses. ' This was the
.44
highest aggregate amount for new money purposes in the last four Jan.; 31.
The
Department's
announce¬
years.
About two-thirds of the new money was for purchases of
listed stocks are classified by leading
the aggregate market value and average
with
groups
Purchases
-
amounting
securities registered in
table
following
the
In
as
1.
value of all
As the above
therefore, 0.96%.
was,
Commodity Buying
$89,000,000 In Jan.
Over
Feb. 26
1933 in¬
to
Commission's analysis follows:
$339,752,458.
figure includes all types of member borrowings, these
ordinarily exceed the precise relationship between
on
listed shares and their total market value.
1941
summary
A
28, 1942, New York Stock
of business Feb.
close
Farm
to
over
$89,000,000
$2,787,153,000 from $2,124,429,000 in 1940 and
were made by the
Surplus Mar¬
$1,815,046,000 in 1939, according to an analysis prepared by the Re¬
Administration during
search and Statistics Subdivision of the Trading and Exchange Divi¬ keting
sion.
The volume for 1941 was the highest of any calendar year January under the general buying
for
Lend-*Lease
and
since 1937, the SEC pointed out.; :The Commission states that after program
other needs, the Department of
excluding those securities .which were not intended for salfe and
Ac¬
those which were registered for the account of others than the is¬ Agriculture said on Feb. 23.
cording to the Department this
suers, there remained $1,976,754,000 registered by issuers for sale, as
was
about the same as the total
compared with $1,686,985,000 for 1940 and $1,499,951,000 for 1939.
The number of issues declined to 363 from 470 in 1940 and 482 in 1939. purchases during December. Cu¬
in
creased
announced on March 5 that as
1942, there were 1,234
of the close of business Feb. 28,
Registrations Highest Since 1937
The Securities and Exchange: Commission announced on
that the volume of registrations under the Securities Act of
On Feb. 28
Stock Exchange Lower
Thursday, March 12, 1942
at the
held by broad
weav¬
of February
end
to-^
taled 22,700,000 pounds as com¬
pared with 23,000,000 pounds at
the end of January and 28,000,000 pounds at the end of Feb¬
ruary,
1941.
,
V olurae 155 AN umber 4054
THE COMMERCIAL & FINANCIAL CHRONICLE
Stocks Of aGosI In Consumers' Hands On Feb. ! ifebruary Steel
^-The^Bltuminp^United States Department of
the
of
Inferior, in
Report released
a
bituminous coal
declined 7.5%
000
net
"
-
tons.
Industrial
and
retail
of
rate
held by, industrial
,Each class
in
the
showed
Jand
A
(Determined
'''-.A^
/Including retail yards
.'
Jointly by W.
"
A,;-, A,
.■
-and Thomas W. Harris,.<
,
■•>!«;
12,660,000
12,821,000
7,824,000
.Steel,:and rollings raills(________-~.
Coal-gas retortst
1
1J
_
8,901,000
959,000
968,000
337,000
653,000
18,370,000
367,000
705,000
19,400,000
—
9,482,000
10,235,000
—
_
j
___
inillst
vOtheri.:industrials§7^-i^iiJ3i^^^iiu^4^-^-'',
Railroads., (Class^
.
-7..\
A-. ;
v,%
A'--
...
'
'i
••
above
the
February,
steel for castings ii?;
5.3
5.8
—
.
.
.
.
To
succeed:
The
Haddonfield
Net tons
Feb.
Amount of
1942—The
28,
tional
Bank
of
Montgomery,
0.8
Reduction
First
Na¬
Montgomery,
Pa.
"
From
$100,000 to $50,000._ #v:
of weeks
6,525,111
(net tons)
94.7
'
•
-
•
Amount of-
96.0
3,
1942—Community Na¬
Bank
w
.
of
Pontiac, Pon-
Mich
>;•''•
~
•«
•'..>*•,'*'■*
From $500,000 to $625,000-
$125,000
pYk'-AA
CHANGE OF TITLE
Feb.
1942—The
28,
National
Bank
Merchants
of
Planters
&
Sylacauga,
Sylacauga,/
Ala,
4.43
1,631,278
Increase
-
in month
1,609,334
$50,000
COMMON CAPITAL STOCK INCREASED
Number
all companies
■
0.4
+
:
-c.;>«-V;
a
weekly *
production, :
capacity
7,129.351
February
+
5,892,000
National
J.
COMMON CAPITAL STOCK REDUCED
tiftC
Calculated
of
.
..
7.5
'
5,918,000
: $192,089
r
-
President, Lewis E. Gruff; Cashier, ®.
Townsend.
' -v "
Bank, Haddonfield, N.
•
>'?
'
Percent
:
Period
'
'
N. J.
Mar.
—All Companies—
January-
.,
Com. Stock
Feb. 28, 1942—Haddonfield Na¬
tional
Bank,
Haddonfield,
of
.
Estimated Production
7.4
1942 t
62,737,000
58,015,000
Amount of
tional
—17.2.
.
ISSUED
\
.
:
-y
total
„
'
7.4
—
9,340,000
-
v
1941,
is
.
CHARTER
production of open hearth, bessemer and electric steel
ingots and
8.2
—
yys. -a
•--v.
utilities*.
power
5%
'
v
Comptroller
Treasury De¬
Currency,
>
0.9
—
—
53,397,000
■
7,730,000
v.".; A',/:- '••A i +
by—
Consumption
Electric
,•.
•
•
50,285,000
^
.
A
Grand total
r—12.1
•
the
month, the total tonnage of steel produced
nearly
was
^
information
partment:
•Total
(•Total industrial
> Retail dealer .stocks_-'—
A-!""--.
1.3
—
but
tons,
following
average
last year, when total
steelmaking capacity 'was substantially less
than at present, the steel
industry operated at an average of 96.6%
of capacity.
'
Change
"
an
During February, the steel industry operated at an average of
96.0% of capacity, as against 94.7% in January.
In February of
% of
(revised)
Net Tons
-'A':
of
Steel Institute.
that
National Banks
<
The
from the office of the
6,237,900 tons.
Dec., 1941
(preliminary)
A'" A
/V"
.
and
tcr a
r
^
highest
by the
February—6,525,111 tons—was below the January total of 7,129,-
351
H. Young,. Research Section, Bituminous Coal Division,
Jr.y Chairman; Coal Committee, National Association of
•
? purchasing
Agents)
Stocks, End of Month, at-+
Electric power vutilities*^.'
byproduct coke
'
in
v
,
^
;
Iron
Because of the short
AA, a
*
Jan., 1942
.-'a'.-
^
according
at the second
report released March 10,
was
E.
consumption of bituminous coal in the united states,
\
"Cement
decline.
during the same period
gain of 31.0%; ~ At the daily
a
Output Close To Record High
.dpring. February
of 1,631,278 net tons of in¬
gots and castings was produced per week during Febuary, consid¬
erably higher than the average output of 1,609,334 tons per week
in January and substantially at the
October, 194f, peak of 1,634,917
tons per week.
In February a year ago, steel output averaged
1,559,475 tons per week.
consumption- increased 3.4%
dealer deliveries
last 34 days.
jstocks
shared
consumer
steel
The report showed
Feb. 1 stood at 58,015,-
on
of
record,
on
American
and retail dealers
consumers
consumption- and retail dealer deliveries prevailing in
there a was enough bituminous coal on hand Feb. 1, to
January,
;
of
rate
March 7 reported that stocks
on
during January, 1942 and
,
Output
"The First National Bank
To:
4.00
in
Syla-
cauga," effective Mar. 1, 1942.
-
Byproduct v
Beehive
7,412,000
coke
ovenst*-v-A_'__
1,016,000
Bteei and rolling >millst
:
548,000
12,700,000
588,000
11,980,000
9,689,000
38,474,000
_—- -
.
i^'*T6talriridustriarr--Li7iJw-i.i^^ii-i-^i£4.dealet
'deliverlesj^wi-v-*-—•
>
149,000
Cement
millst '
J__
itidustrialsfRailroads (Glass -J[ J11 *1
+
19411
January
+ February
6,928,085
6,237,900
96.6
1,559,475
March
7,131,641
99.7
1,609,851
4.43
1,578,353
12.86
4.29
98.2
1,575,046
1,592,153
1,585,252
98.2
1,584,237
98.0
1,581,312
93.4
1,543,367
,
3.6
+
,
*
0.5
—-
984,000
172,000
Other
-
,1,021,000 ;
.
1,019,000
Coal-gas retortst
ARetail
7,352,000
•.
15.4
—
6.8
+
6.0
9,226,000
+
5.0
37,192,000
+
10,640,000
+
3.4
31.0
47,832,000
+
9.6
13,940,000
:
..
"
X..,
\ Grand total
.
"\
yAdditional Known Consumption—
c
Coal mine 'fuel ■
Bunker fuel, ■ foreign:
.
>
Cement
A
>fi, >..<
..
—
+
38
days
—13.2 ~r
;
30.days
29
— J—
days
76
days
37
1.5
days
45
days
„
.
months
6
95.7
—19.7
9 months
—10.0
days
34 days
.Retail dealer
17
<,i
,
41 -days-
—11.8.
45 days
27 days
-
.
99.0
days
—37.0
.
"
I 34 d£ys
♦Collected
by the Federal Power Commission.
Mines.—(Collected
lected
Coal
(Collected
by the Bituminous Coal Division.
Jointly by. the-National
from
Division
Association- of
40'"days
by
SEstimates
the U.
based
Purchasing Agents
and
—15.0
"
S.
Bureau
oi
selected
list of 2,000 representative manufacturing plants.
The
chiefly large consumers and afford a satisfactory basis lor
fiCollected fcy the Association of American Railroads.
Includes powerhouse,
concerns
reporting
estimate.
a
are
shopand atatiqn fuel;?.-f+Not ^available.
*
21,376,669
.
82,927,557
y.A
~
.
unbilled
loads
advanced
0.3%
fjrom Jan. 1 to Feb. 1, .1942, while, unbilled loads of anthracite de¬
creased) 23.4%. ; Stocks of both ^anthracite and bituminous
coal
the upper
on
lake docks showed substantial seasonal reductions.
UNBILLED
LOADS
AND
STOCKS
ON
THE
LAKE
DOCKS
Feb.
,
coal
1942
Feb. 1,
previous
From
1941
month
year ago
-
922,006
919,700
748,100
343,500
__
448,150
339,750
Anthracite._1_„ 1—
(-Stocks
■
0.3
1,217,400
.317,750
—23.4
+
8.1
+
—24.3
Lake Docks—
on
coal:
Bituminous
Lake
Superior
4,224,950
5,109,125
5,066,990
3,667,712
—17.3
+
15.2
Lake
Michigan
2,125,481
2,668,321
2,731,170
2,048,343
—20.3
+
3.8
Total
6,350,431
-18.3
+11.1
Anthracite:
Lake Superior
Lake
~T05,947
Michigan
126,288
_______
Total
♦Coal
273,727
232,235
in
cars
of
Association
unbilled
American
the
at
mines
Railroads.
in
or
234,102
177,999
commercial
—15.2
yards
classification
all
(Covers
reported to
as
American
Superior and on the west bank of Lake Michigan as far south
but not including Chicago and Waukegan, Illinois.
docks
+30.5
on
the
Lake
Racine and Kenosha,
as
Wisconsin
Based on figures cour¬
teously supplied by the Maher Coal Bureau for Duluth-Superior and Ashland-Washburn
docks and
direct reports
on
from all other commercial operators not reporting to that
(Subject to revision.
Bureau.
Industrial
Stocks of industrial
I
Jan.
1,
Anthracite
railroads, and other industrial consumers, decreased during Jan¬
for castings,
1942
of
:
■
tljie Electric
j ' ' i
as
follows:
total
Open
1,698,622
net
13.13
j
explains, is 29% higher than,
income
i
.
•
-
-
Steel
'
(
tons
of
steel
annual
on
tons,
Bessemer
:*
I
-
capacities
6,721,400
3
as
net
for
76,079,130
net
net
tons
tons,
Bessemer
net
tabulation of slab
TOTAL
Electric
tons,
zinc
statistics:
3,272,370
Exports &
Domestic
duction
Drawback
Period
Prod.
631,601
596,249
6,352
75.430
18,585
1,730
in
75,430
504,463
436,079
196
143,618
26,651
1,355
300,738
314,473
4t
129,842
18,273
822
by
143,618
129,842
213,531
218,347
170
124,856
8,478
583
124,856
324,705
343,762
239
105,560
15,978
890
105,560
366,933
352,515
148
119,830
30,786
431,499
465,687
59
83,758
51,186
523,166
561,969
0
44,955
78,626
589,619
48,339
1941
in consumption
from
and
the
at
Class
I
railroads
showed increases of 14.3 and
sumers
-
time
same
ANTHRACITE
AT
ELECTRIC
POWER
INDUSTRIAL
and
(NET
RAILROADS,
(Electric power utilities:
Stocks, end of month-___.
Consumed during month_.
Days supply end of mo
(Railroads (Class I):
Stocks, end of month
Consumed during month.,
October,
1,615
1,371,655
1,252,751
162 days
180.690117,242
days
1941
1,257,478
240,416
228,833
163 days
1941
156
210,131
days
216,977
185
days
132,493
238,871
102,610
72 days
6^ days
(288,586
*
Days supply end of mo.43
Other industrial consumers:
273,145
96,875
121,582
34
year
month
ago
4.4
—
—
—
4.8
+
+
0
65,333
456,990
395,534
20
126,769
40,829
1,252
000,000,
538.198
598,972
0
65.995
53.751
1,475
the
74,262
706,100
674,615
88,165
17,582
125,132
1,929
17,582
—24.4
in
1941 totaled $586,-
only
77%
66,121
63,930
4,914
14,859
121,026
57,663
8,155
10,644
108,151
2,200
70,341
65,011
2,629
13,345
97,638
2,269
13,345
68,543
65,035
5,379
11,474
95,256
2,285
11,474
11,833
11,101
73,449
61,696
11,394
11,833
98,435
2,369
70,837
61,546
10,023
11,101
92,583
2,361
of
74,641
62,714
9,180
2,408
to
Aug.
13,848
75,524
61,061
10,342
17,969
68,604
2,436
Sept.
17.969
73,225
64,673
7.094
19.427
67.079
2.441
19,427
76,156
61,770
12,219
21,594
62,559
2,457
and
21,594
74,861
61,064
12,209
23,182
84,101
2.495
of this year than
23,182
78,643
65,698
12,065
24,062
87,666
2,537
863,944
751,861
105,603
—
Oct.
3.6
+ 41.2
Stocks, end of month—177 669
230,578
167,411
—38.4
+
89,141
106,788
+ 10.8
Monthly Average
1942—
120.935
Days supply end of mo.__.
41 days
68 days
domestic
of
reported
Feb.
by
Commerce,
1,
anthracite held
by
139
80
days
selected
49
dealers
days
—39.7
amounted
to
:
1942,
23,925
110.55?
2 5*7
14,818
22,626
109,260
2,624
1941, and January, 1942, figures have been revised.
69 firms for October,
BY
mediate
Spec. H.G. High Grade
"Dec.
Spcl.
Select v<. Western
Total
18,540
1,495
4,719
5,692
17,266
30,931
1942—
16,523
19,934
5,694
5,262
1.467
30,396
79,276
14.705
19,427
4,447
5,721
2,560
26,616
73,476
"Revised
figurers.
with
January
1940,
production
from
foreign
ores
is
included
monthly figures which
reflect the total output at smelters of Slab Zinc of all
reported by all producers represented in the membership of the Institute.
The unchanged totals for previous years do not include production from foreign ores,
which
as
was
not
stock shown
at
a
vital
end
of
factor
1939
in
those
and at
the
years:
this
exDlains
beginning of 1940.
the
discrepancy
between
Loan
more
savings,
associations
in
Bank
'
money
building
Illinois
Wisconsin in the first month
since
1937,
it
in any January
reported
was
The total advanced
on
was
$985,202, which is
an
4.4%
month of 1941,
over
and is
It
is
the
the
more
amount
was
"Jan.
Home
member
loan
same
increase of
than three times the
advanced
in January of
1939 or 1940, A. R. Gard¬
President of the Bank, said.
added
78.643
Feb.
the
its
and
from
___
Federal
Chicaga advanced
ner,
Prime
Brass
The
1938,
GRADES
Inter¬
grades,
the
23.925
1941—
Note—Commencing
Association of American Railroads,
§70 firms repor.tcd for January, 1942, and December, 1941;
1941, and 75 firms for January, 1941,
^Subject to revision.
8,800
12.165
59,957
73,476
November and December,
Month
In
by the Federal Power Commission.
bv
2,367
Daily Average
62,655
67.248
79,276
—16.3
398,124
as
Chicago Heme Bank Loans
March 3.
'
24.062
PRODUCTION
1942.
tCollected
71,995
•
.
+25.5
Anthracite Committee, Commonwealth of Pennsylvania, Department of
amounted to 915,295 tons on Feb. 1, 1942, and 1.237,297 tons on Jan. 1,
(Collected
"
81,456
13.848
6.1
which was an average of 42 days supply and 445,689 tons on
Jan. 1, 1942 or 58 days supply.
Stocks of domestic coke held by 149 selected dealers
amounted to 49,007 tons on Feb. 1, 1942, which was an average of 26 days supply and
Anthracite in producers' storage yards
58,977 tons on Jan. 1, 1942, or 48 days supply.
on
-
Note
134,026
"Stocks
.
Feb.
;
Consumed during month-
tens
____
Jan.
§ (Selected representative plants)
,
____
Dec.
+ 36.4
+ 14.3
large
2,133
61,603
-
Nov.
—33.3
as
$766,000,000 paid to 'farmers
1940.
10,644
4.0
days
accompanied
higher prices
Government
14,859
Jan,
?eb.
8.9
—11.9
0.6
*
Agricultural
payments in
569,241
65,333
June
previous
$6,than in
Program,
Sugar
payments, and price parity
126.769
July
January,
1941
1942
1,202,096
OTHER
% of change from
'
HJanuary, December,
AND
TONS)*
ancl
totaled
the
on
Apr.
con¬
some¬
products.
Mar.
industrial
10.8%, respectively.
UTILITIES.
PLANTS
other
prices
livestock
were
May
and
much
Conservation
Act
1941—
Electric utilities showed a decrease of 4.8%
uary.
at
substantially
1,429
44,955
Returns
were
products
payments
1,182
83,758
prices.
sales
sell
and
for most
a,004
118,005
very
391,000,000, 33% more
1940.
Marketings of nearly all
types of livestock and livestock
products were at record levels
Avge.
Period
was
wheat, and corn which had for¬
merly been placed under loan.
46,430
1932_„___
current
deem
Daily
End of
End of
quantities* of
but
what above the cost of redemp¬
tion large quantities of cotton,,
Unfilled
Pro-
the
farm
livestock
Orders-
crops
larger than in 1940 and, in ad¬
dition, farmers were able to re¬
1929-1941
Stock
Shipments
Beginning
in
vance
from
(Tons of 2000 lb.)
Stock at
in
Income
GRADES)
The 37%
from
small extent from
a
sold
:
(ALL
from
largely due to the marked ad<
March 6 released the following
JjLAB ZINC SMELTER OUTPUT
income
increases
February Output And Shipments Of Slab Zinc
on
in
products
S'S';';,;
The American Zinc Institute
000 received in 1940.
resulted to
'
tons.
income
average
under
loan
in
1941
to $11,185,000,000, or
34% more than the $8,331,000,-.
and
6,793,400
Bessemer
the
increase
net
2,586,320 net tons. Beginning July 1, 1941, the
are
calculated on weekly capacities of 1,459,132
operated
130,292
9%
amounted
•'
62,761 net tons electric ingots
castings, total 1,652,185 net tons; based on annual capacities as follows:
hearth,
Open
capacity
hearth,
open
is
Y placed
for' Castings
j
electric
tons,
the
from
and
ketings
(
in the first 6 months are calculated on weekly
capacities of 1,430,102 net tons open hearth, 134,187 net tons Bessemer and 49,603
net
tons
electric ingots and steel for castings,
total 1,613,892 ;net: tons; based on
annual capacities as of Jan.
1, 1941, as follows: Open hearth 74,565,510 net tons,
6,996,520 net
1940
Cash income from farm mar-;
and from commodities
52.14
•
of the Open Hearth,
and
_
based
in
marketings for the years
1924-28.
Continuing, the Bureau
under date of Feb. 26 reported: J
13.14
1,590,479.
_
Ingot
received
sources
above
1,626,83d
•
j
$11,771,000,000,
farm
net
.
to
reau
39.00
*
4.43
.
"
tons;
78,107,260
hearth
electric 3,737,510 net tons.
1037
anthracite at electric power utilities, Class
85.82%
The percentages of capacity operated
and
"Unbilled loads—
Bituminous
-
Nov. 1,
1941
Jan.il,
1,
J1942
4.28
•
Note—The percentages of capacity operated are calculated on weekly capacities of
1,498,029 net tons open hearth, 128,911 net tons Bessemer and 71,682 met tons electric
net
From
*
4.29
.
percentages
% of Change
< *
of- the -Bessemer-and
100%
Bessemer
(NET TONS)
4.43
4.42
Reports by Companies which in 1940 made 98.43%
on
Production.
of
the Lake Docks
t
.
(Based
tons,
iii
coal
of :bituminous
Stocks
on
4.42
1,634,917
1,624,706
,
97.4
ingots and steel
Unbilled Loads andStocks
25.87
•
from,
the
highest total for any year since
1920,
it
is
estimated
by
theBureau
of
Agricultural
Eco¬
nomics,
U.
S.
Department
of
Agriculture.
This total, the Bu-/
1,620,814
-
98.5
Total
„
reports col¬
the Bituminous
on
amounted
13.01
V
income
the
98.1
4th quarter
'•*. Grand
4.29
:
'
cash
marketings,
from
commodities
placed under loan, and from Gov¬
ernment
payments
in
1941
4.43
1,578,228
,
98.3
December
8.9
—
-
At Highest Since 1920
Farmers'
same
November
•
*
-
1941 Farm Income Is
4.00
1,572,151
97.0
October
,
4.43
,
1,593,389
95.2
Quarter
;
1,580,351
96.4
______
3rd
3.3
—
50
:
30 days
|
,
days
61
a__
.
days
37 days
1-ToiAl^ industrials;-ii—a—lJL_
;:*■
days
days
33
Railroads (Class.
-.
Quarter
August
mills:—
industrials
Qther
98.7
September
67
66
Byproduct coke ovens-^^mr^-^-----.--_-_^i__
Steel and rolling mills.
Coal-gas retorts
7——-7-.----7—1 r---4—.
:
97.8
July;
Month,
'
-»-I
Antilities^i^^^i^^-^liw.
1,563,902
97.6
1st
•
j
96.9
Quarter.
2nd
; Days -Supply;' End of
Electric ..power
•
<,
52,414,000
192354680
1st
_
the
that
seasonal
a
December
loan
experienced, however,
January advances were
than
1941,
in
a
any
month
result
of
in
years
previous
the
as
least active demand.
and
less
since March,
anticipated
observation
drop
volume
first
from'
quarter
the time of
^
THE COMMERCIAL & FINANCIAL CHRONICLE
1058
in
to
10,860,000 tons.
the Interior,,
price index compiled by The
coal in the
was
made public March 9,
week ended .Feb. 28 is estimated at 11,180,000 net tons.
Compared continued to move to higher levels in the week ended March 7, 1942,
with the preceding week, this shows a slight increase—180,000 tons,
rising to 124.1 from 123.8 in the preceding week. 'A month ago
or
1.6%.
Production in the corresponding week of 1941 amounted the index stood at 121.8 and a year
ago it was 100.4, based on the
The
U,
1935-1939
Mines
reported
production
the
that
The
of
the
♦Pennsylvania anthracite for the week ended Feb.-28, was estimated
1,295,000 tons, an increase of 136,000 tons (about 12%) over the
preceding week.
When compared with the output in the corre¬
2——-i—Week
-
,
PRODUCTION
STATES
Feb. 28,
•Bituminous
Total,
SOFT
Ended——=—
Feb. 21,
,1942
1942
coal—
OF
NET
IN
—••
Mar. 1,
Feb. 27,-
11942
1941"
1937
1,862,000
•Includes
for
1,833,000
historical
of
purposes
1,854,000
PRODUCTION
COKE
AND
Feb. 28,
anthracite—:
•Total,
Mar. 1,
1942
1941
'
vanced
1,090,000
1,036;000
1,101,000
13,866,000
8,975,000 12,868,000
9,304,090
9,447,000
8,839,000
the
10
and
vances
United
States
total.
156,600
140,900
United States .total™—'1,168,000
1,174,600
1,256,500
120,800
1,030,500
1,032,700
WEEKLY
washery and dredge
("Excludes colliery fuel.
t
to include the weekly production of byproduct
included
[1935-1939
current
(The
and
ments
and State
!
'
,
weekly
estimates
COAL,
BY
STATES
sources
or
revision
1942
Feb. 21,
1942
State—
Alaska
Alabama
Feb. 22,
1942
1941
;
382
.
70
and Oklahoma—.
,
:.cn' 1942
2
300
409
58
87
294
;
68
,
163
154
182
1,350
1,267
1,092
1,466
515
544
511
406
502
613
82
Indiana
84
61
63
136
—_—————-
Iowa
and Missouri
Kansas
180
_——
_
190
766
:
:f
_
750
285
226
37
38
40
51
10
15
18
bituminous
75
69
56
79
25
23
44
50
6^
49
84
572
475
624
2,218
2,811
3.087
141
126
118
18
16
23
Utah
98
57
119
96
Virginia
2,700
142
145
10
86
80
:1
__
_
382
_
Washington
:T';
.
380
v.r:
49
.
^
301
339
284
34
30
61
77
1,984
1,728
2,038
835
716
591
700
673
120
114
160
tt
•Includes
tt
the
Panhandle
the
B.
&
■'
10,900
1,159
1,168
12,159
O.
in
12,068
lished
District
of
records
••Alaska.
832
&
W.;
11,362
Bank
week
debits
Feb.
aggregated $11,757,000,000,
ing the 13 weeks ended March 4
17%
amounted
above the total reported for
At banks in New York
ago.
compared with
the
of
Carolina,
City there:
C. & O.; Virginian; K. & M.; B. C. & G.;
and Clay, counties.
tRest of State, including
Mines.
and
period
UAverage weekly rate for entire month.
Dakota included with "other Western
1,000 tons.
States
to
increase of
an
year
and at
57.067
8,052
10 841
The
:
February shipments
compare*
preceding month (January)
with
1.548,451
ruary)
in
the
a
1,738,893
the
month in
:
1942 to date, shipments
year
net
tons. ir
were
1941
an
increase of
124.575
net
in
the
history
in
crease
uary
the
was
the'United
total
table
periods since
below
.
—___
we
City—^
5,071
1930
870,866
1,528
22,133
18,368
'
522.395
627.047
907.904
771,752
550.551'
1,084,057
795.689
274
reporting centersCity*
1.668.637
December
745.364
885.636
1,392.838
mos.
______
1.086.683
1.529.24"
484.611
1.480 00.'
615.521
cording to statistical data pre-'
pared by the Research and Statis¬
tics
295-
4 062
3,167
12,457
10,152
10 329
146.385
125 389
3 866
.
" 237
908
51,889
47.746
81.520 .!
,67.253
12.976
10.391
:
1 2*2 87'
(•Anthracite
Beehive
Coal
the
♦Bituminous
1,345.855
730.312
1.333 381
in
January,
l.liOOSf
Beehive
765.868
931.744
11,752.116
7,286.347
16,825.477
14,976,110/
15,013,749
*44,865
;11,707,251
29,159
7,315,506
*12.827
as
stated in the
annual
report.
of
the
United
month
in
16,812,650
States
1941.
same
month last
-?
"
:
■
'Total for Month
(preliminary)—
ment
tails:
Depart¬
'
v
•
.
<
; < *
announce¬
""
f'
firms
five
having
the
largest amount of underwriting
participations during 1941 were
follows:
as
Blyth
&
Co.,
Inc.,
$67,447,200; The First Boston
Corp, $64,479,740; Mellon Se¬
curities Corp. $54,130,856; Harriman Ripley .& Co, Inc., $53,-.
965,418, and Smith, Barney &
Co, $52,696,119. The combined
participations
of
these
five
leading firms accounted for 23%
of
total
underwritings.
New
.
and 4,532,-
year
Commission's
presents the following de¬
The
Pennsylvania
,
-
-
Average per
•;-*
"
-
-
coal
"
•
,
1941—
*
j
__
___
-
:
.
____
24
§4.432,000
■
__
1,737,000
:
—
current
canvas
of
estimates
will
later be
adjusted to
agree
production made at the end of the calendar
with
year.
the
results of
the
386
which
had
participations.
In the
year,
25%
of the
-fjrry,o
-
firms
in registered is¬
sues
in 1941, only 77 acted iir
the capacity of managers.
The20% of the underwriters who
acted as' managers had 70% of
preceding
of
figure.
Note—All
complete
the
participations
the total
§496,400
historical comparison and statistical convenience, the
production of lignite.
tTotal production, including collierv fuel, washery and dredge
coal, and coal shipped by truck from authorized
operations.
JPreliminary figure.
§Revised
'■■■>
V'.':
Ji1
nurposes
Of
v
—v.
1,867,000
?.-:v
-
Beehive coke
_
,
•:
§647,100-
Anthracite
for
__
.
26
number, accounted for 63% of
the underwriting participations.
1,827,000
__
■
§4.532,000
—
7
City firms, ninety-five in
York
(NrtTons)
-
• •
448,540,000
——
coke
February,
+
-
600,000
•-
24
•
§4,739,000
,r
;
,
Work Day
Work. Days
J43.840.000
.
No. of -r.
-
(Net Tons)
* •
coal
•Includes
,
annual
V
1919.
The consolidated statement of the
1942.
•B'tuminous coal
currently reported during the year 1941. are subject
tonnage reconciliations.
These will be comprehended
as
shipments
,843
•
organizations follows:
tAnthracite
749.328
______
-
141 centers, available beginning with
Division
corresponding
coke
1,443,969
•Decrease/-
cumulative yearly
in
January, "1942—
1,406 205
37,639
adjustments reflecting
1.036
Subdivision of the Trading
Exchange Division. Compar¬
able figures for 1940 were 179 is¬
sues totaling
$1,620,317,000.
The
number of firms participating in
the underwriting were 386 in 1941,
compared with 377 in 1940.
and
output during February, 1942, totaled 4,739,000 net tons,
tons
•Bituminous
1.572,408
______
41; 5,620 4
6 732
.
1,544,623
20,458,937
^$1,285,325,000 for
■
1.500 28"
635.645
\
1933
3.720-
„•
1.425.352
adjust.—
__
tons
February, 1942
1.851.279
Note—TT.e montHJv shipments
in the
524.994
607.562
1.296.887
of
aggregated
167 issues, ac¬
3.818
Interior, bituminous coal production during the month
aforementioned
;
Act
1941
year
2.098
3.989
against 4,432,000 net tons in the
net
Securities
4.705
11.757
reporting centers
Bituminous
of the
1,846.036
__
Total
to
the
1.624.1A6
November
Yearly
1.209.684
1,455.604
1,664.227
__
!______
centers"——
.
1.753.665.
the
295
48,540,000 net tons in the preceding month and 41,695,-
two
un¬
2.721
estimated
as
that
877
L___'
^
York
net
Exchange.
4.812
..
an
000
and
announces
188
.1.617.30'
1 701 87/
Securities
312
1942, amounted to 43,840,000 net -tons, compared with
.
509.811
>
under
February,
1.605.516
'
95
during the
of
1.388.407
845.108
9,996
215
1,168
other
and
1.364.80'
747,427
931.905
1,745.295
__
—_—
by
3 929
1,009,256
1.666.667
Total
570.264
v
1,687.674
__
October
1938
'
114
According to preliminary estimates made by the Bureau of Mines
000
1940:-^
117
245,750
;
derwriting participations in se¬
curity issues registered for sale
4 063
"
anthracite
1,548.451
___
September
with Jan¬
1,720.366
July
August
de¬
figures by months for various
1.145.592
"
June
the
compared
as
The
\
.1.682.454
1,616.587
April
___
list
•'941
•
—
May
Corporation.
v 1929:
i942
,1.738.893
February
Steel
shipments in February
January,
:
„
January
March
States
due to the shorter month.
the
In
of
that montt
12 373
374
other
ment
the highest for
were
116
The
Preliminary Estimates!Gf February leal Output
tons.
Shipments in February, 1942
250 823
The
compared with 3.230.905 net tons in the comparable
period of 1941
90
10 553—100%'
Commission
(Feb¬
-
1942 Week
216,253—1007?
4 859
339
1,817
•Included in the national series covering
3,355,480 net torn
Hardwoods
372
:
Participations Declined
In 1941 Issues Says SEC
decrease of 122,306 net tons, anc
corresponding
increase of 68,136 net tons.
an
For
net tons
with
256.921
Orders____
9.033
5,919
!
140
1,616,587 net tons.
255,631
•
Shipments.
*8,704
723
405
874
—
New
:
255,746
1942 Week
52,133
.
392
Total,
'
254.507
Softwoods
1941!
571
650
"
Francisco
Corp. for the month of February, 1945
227.195
260.543
Mills
7,275;
'487
—
Dallas^
Ban
233,330
263,196
Mar. 5,
1942
8.547
4,272
Louis—
Kansas
Mar. 4,
551
:
:___•
'
226.806
Orders
13 Weeks Ended
4.417
New York-
Richmond
469
Production
the
ago,
689
_
Cleveland
•
(Rev.)4
449
Shipments
9%
Mar. 5,
1941
1942
Philadelphia
449
$146,385,000,000, or
was
a
Atlanta
Steel
Mills
Previous
Week Wk.
Production.
Mar. 4,
Boston
1941
Week
Total debits dur¬
Week Ended
133
the
thousand board feet;
centers for "the
Shipments of finished steel products by subsidiary companies
United
96.4;
millions :of dollars]
Federal Reserve District—
.
South
Feforisary Steel Shipments Ahcve A Year Ago
the
28, 1942, for the cor¬
responding week a year; ago, and
for the previous week, follows in
SUMMARY BY FEDERAL RESERVE DISTRICTS
Jhioago
totaled
1942,
week
current
Feb.
increase of 22%.
an
12,858
It.
of
28,
the corresponding period a year
corresponding
Minneapolis
i
100.4
96.7;
1942,
reported by banks in leading
as
ended March 4
1,902
11,822
10,072
Grant, Mineral, and Tucker counties.
Jlncludes Arizona,
and Oregon.
§Data for Pennsylvania anthracite from pub¬
Bureau
North
than
7,
ended
10,956
10,990
and
the
Georgia,
ttLess
N.
Kanawha, Mason,
California, Idaho, Nevada,
States,"
the
on
121.8
123.8
124.1
Mar.
other reporting centers there was
11,000
operations
on
99.8
Hardwoods
the
1942
I In
and
103.5
and
for
1942
tt
146
tt
*
Total,' all coal—.
,_i
were:
103.8
Record
Bank Debits Up 14% From Last Year
156
1
144
_
JOther Western States.
coil
base
1,127
827
^Pennsylvania anthracite—
1926-1928
105;#
102.1
103.8
^
117.6
114.0
Softwoods and Hardwoods
212
34
1,913
Virginia—Northern-
bituminous
•; r
-
1,940
Virginia—Southern—
Wvoming
-
10
_1
_
combined——.
groups
on
127
7'
machinery™.
Softwoods
10^-Q
118.3
115.3
1941, 78.2.
694
2,508
Indexes
**37
644
All
100.0
Mar. 8
120.1
-118.9
115.3
.
to
Feb. 28,*
on
116.4
58
—
_
Farm
103,4
120.3
120.3
drugs
47%
80
30
2,638
,
and
materials
115.0
104.0
14%
were
ago.
26
Dakota
Tennessee
Total
556
224
7
675
Pennsylvania
Chemicals
Fertilizer
Fertilizers
150.8
131.9
1942,
1942, compared with 34% a year^
Unfilled orders were 26% T
greater than a year ago; gross
stocks were 8% less.
111.3
134.8
of
weeks
27% above pro-,
unfilled orders
The ratio of
102.1
127.8
8
was
gross stocks was
92.4
113.3
104.4
135.0
.3
174
722
25
___i—
tWest
201,
•
40
_—
South
&
•West
219
63
Mexico.
Texas
805
7
—
Montana
Ohio
161
848
245
.
112.8
;
150.4
materials
.3
136
86
Michigan
North
176
.
"
83.3
127.3
127.1
.....
Metals
Building
1.3
**
1
39
Maryland
New
l
121.1
113.3
.
.3
1
285
_
___
Kentucky—Eastern
Kentucky—Western
_
commodities.-.
Textiles
6.1
1,993
1
—
_
7.1
231
1,444
Georgia & North CarolinaIllinois
8.2
97.8
119.4
119.2
186.8
the
Supply and Demand Comparisons
76.0
92.5
125.7
Miscellaneous
76.6
168.7
For
business
<
above production.
92.3
131.5
9%
duction, and shipments
1941
117.0
132.7
-
182.9
_
Livestock
Fuels
10.8
4% be¬
pe¬
new
Ago
132.7
-
17.3
4*
111923
the
for
was
and i .new orders
the orders of the 1941
riod.
Year
159.0
______
_
>
same
Comparisons
production
first 8 weeks of 1942
Mar. 8,
1942
121.9
_______
Products
Grains
average
1937
3.
72
160
Feb. 20
24,
1940
338
•
63
172
Colorado
Feb.
Oil
Month
Ago
135.8
Cotton
Feb.
4
370
.L
—
Feb. 14,
2
_
Farm
23.0
average
the
shipments,
Jan. 31,
•
Cottonseed
are
on
of
in
corresponding weeks of 1941;
shipments were 2%
above the
Week
Fats and Oils
Week Ended-
Arkansas
Year-to-Date
Reported
:
Feb. 28,
Foods
25.3
based on railroad carloadings and river ship¬
receipt of monthly tonnage reports from district
of final annual returns from the operators.)
subject to
are
INDEX
Preceding
Week
.Mar.;7,
Total Index
OF
142%
above
Latest
'
Group
Hn Thousands of Net Tons]
'
and
shipments
ad¬
100*3
—
%
Each Group
Bears to the
mills.
above
low
'
.
index
the
in
WHOLESALE 'COMMODITY PRICE
t
J
coke as reported by the operators.
PRODUCTION
WEEKLY
ESTIMATED
9,926,400
arid coal shipped by truck from authorized
JNot available.
§This is the heginning of a series
coal,
18%
*
series
Compiled by The National Fertilizer Association
•Includes
T
'
price
and 14 declines.
^Byproduct Coke—
operations.
levels^
26
from
week.
declined; in the preceding week there were 17 ad¬
declines; in the second preceding week there were
15
29 advances
week
softwood
were
1935-39
change during the week
commodity price averages which
and
Association
1935-39
The only other group indexes to
the metal and miscellaneous
During
1929
according to
National Lumber
Ship-'
produc¬
tion; new orders 13% above pro¬
duction. "Compared with the cor¬
responding week of 1941, produc¬
tion was 3% less, shipments, 1%
greater, and new business slightly,
greater.
The industry stood at
146% of the average of produce
tion in the corresponding week of !
increase in phosphate rock prices effective
an
less,
the
and
ments
index was brought about by an
of linseed oil.
The rise in :the fertilizer mar
the price
moved to slightly lower
Mar. 2,
<
1,159,000
1,230,000
production
Feb. 28,
1941
.
1,295,000
tComm'l
Mar. 1,
1942
including colliery
fuel
-
Calendar year to date
Feb. 21,
1942
wood
slight rise in the textile average. A fractional
a
.
operations of representative hard¬
building material
March 1.
were
Penn.
in
advance
(In Net Tons)
Week Ended
the
terial index reflected
ANTHRACITE
PENNSYLVANIA
OF
in
upturn
the
convenience
responsible for
were
1,720,000
1,699,000
statistical
and
1 Subject to current adjustment.
production cf lignite.
ESTIMATED
1,810,000
comparison
1942
regional associations covering the
,
i.__iA___a.r__All,i80,C00 11,000,009:10,860,000 92,714,000 83,665,000 84,099,000
average
0.5%
to
Manufacturers
consecutive week, continued to reflect
rising prices for
products and foods.
The index of industrial commodities re¬
midrlivestock, resulting in a further ^upturn" in the index of farm
jjroduct prices. Advancing quotations for raw cotton and wool
including mine
.vfuel
Daily
reports
all-commodity index, which advanced for
-
Feb. 28,
■_
business
[
j
28,
production
during the
week ended Feb. 28,; 1942, was.
0.2% less than the previous week,
shipments were 3% greater, new
unchanged from the previous week.
In the food group,
advancing prices for 8 items more than offset decreases in 4 caus¬
ing another rise in the food price index; this index is now 32.5%
higher than in the corresponding week of 1941.
A small decline
in grains was ; more than counterbalanced
by increases.; in cotton
TONS
Jan. 1 to date
——
Mar. 1,
1941
-
COAL,
Lumber
mained
sponding week of 1941, there was an increase of 18.8%.
UNITED
100.
as
increase in the
fifth
farm
at
ESTIMATED
average
,
Bureau. of
S.
Movement—Week:
Ended Feb.
The weekly wholesale
commodity
National Fertilizer Association which
The Bituminous Coal Division, U. S. Department of
its latest coal report stated that production Of soft
~
Thursday, March 12, 1942
Lumber
Fertilizer Ass'n Price index Gains
4
Weekly Goal and Goke Production Statistics
Vi
ps
had 75%
The
the
of
five
manners
and
total participations..
leading
standpoint
of
firms
the
from'
dollar
Volume 155
Number 4054
THE COMMERCIAL & FINANCIAL CHRONICLE
^
of
amount
issues managed in
Dillon, Read & Co.,
$235,185,017; Kuhn, Loeb & Co.,
$123,409,820; Blyth & Co., Inc.,
$107,411,125; Morgan Stanley &
Co., Incorporated, $105,034,719,
and
Mellon
Securities
Corp.;
$95,614,919.
The participations
1941
*
1
■f
'•
52% of the total, about the same
proportion as the five firms
managing
*
the highest amounts
in 1940.
New York City underwriting
firms predominated in the man¬
agement of underwritten issues
during 1941, with 32 firms managing 75% of all issues under¬
written, whereas 45 underwrit¬
.
;
ing firms outside of New York
City managed 25% of the total.
In 1940, New York City firms
managed 84% of the underwritings.
;
Total
participations
in
the
fourth quarter amounted to $271,-
; 183,000
J
eluded
covering
stock
41
issues.
In-
16 bond issues aggre¬
were
gating
'
$173,227,000,
15
common
issues aggregating $68,727,10 preferred stock issues
000 and
aggregating
$29,229,000.
New
York City firms participated in
65%
•
of
the
total
and
69% of the total.
managed
'
-
<
Plan For "Staggering"
Work Hours Proposed
A
<
the
1941—
Steel Control Closer
Competition For Machine
Tools - Scrap Shortage Retards Steel Output
were:
of these five firms amounted to
questionnaire
attitude
dustrial
plan
of
houses
for
to
determine
business
to
and
in¬
Obstacles
This
two
obstacles
year
the steel priorities
however, the rough corners of
and allocation system
gradually being rounded
are
off and/ in general, WPB action to eliminate constantly developing
problems is swifter.
One example has been the request by the
WPB that steel companies and engineering concerns working on
blast furnace • construction limit plate requirements to
exceeding 72 in.
This will require redrawing of plans
for
plans
sizes
not
for the
A survey is being
furnaces, but reduces the strain upon the wider plate mills.
difficult jobs faced by the WPB
One of the most
z
in March is
*
*
,
that the association had taken
no
tricts
! stand
on
the subject but
was
-seeking to ascertain whether such
a plan would be practical.
Stag¬
gering working hours, Mr. Miley
[said, would mean shifts in time
of
arrival
and
departure - for
groups of employees or for the
entire personnel of a firm. Among
-questions asked in the question¬
naire are whether working sched¬
-
be rearranged
gered"
schedule
time
of
to
"stag¬
would
new
which
arrival
con¬
de¬
and
Coke
at
place
business
of
for
certain groups either a quarter or
a half hour away from their pres¬
ent
schedule, according to the fol¬
lowing table:
Present
Working
*
8:30
5:30;
9
to
to
5;
Honre—8 to
8:30 to 5:30;
5;
9
.
against 217 on Feb. 1.
to
4:45—8:30
to
5:30;
8:45
5:15—9
to
9:30 to 6.
,
;v.
One
One
:
.
>
.
j
;
22.61
Sep.
19
20.61
Sep.
12
21
_——2.30467c.
1937
:_—
to
8:45
to
of
78%
the
99.0%
—99.9%
17——.,—99.4%
Jun
23-
Mar
24
Jun
30—_.—_91.8%
Mar
31
Apr
7
—99.8%
—99.2%
Apr
21
28
Apr
May
—96.0%
96.8%
5
26—
May
—98.6%
"Steel" of
kets,
Jan
96.1%
29_;
1942—
93.8 %
5_—
Oct
13
98.4%
Jan
12
Oct
20——97.8%
Jan
19_95.0%"
.-96.0%
Oct
27
99.9%
Jan
26—k____94.6%
97.6%
Nov
96.3%
Aug 11
95.6%
Aug 18——96.2%
Aug 25——96.5%
Sep
2——.96.3%
Nov
10__
Nov
17—
Nov
24
21_
Jly
,28—
Aug
May 12___^.—99.2%
May 19
Dec
98.1%
6—
—95.2%
14
Jly
14____.
15___
97.9aj,
De<? 22——93.4%
7_——94.9%
Jly
Jly
Apr
Oct
Dec
-96.8%
4—
3_
98.2%
_.
Feb
95.1%
2—___—95.0%
_95.5%
Feb
Dec
16-
Feb
23—-—96.3%
Mar
2——__97.2%
Mar
9
1—
8
Feb
_95.9%
Dec
9
97.0%
97.5%
_
___96.2%
97.4%
Cleveland, in its summary of the iron and steel mar¬
March 9 stated:
on
Closer control of steel
posed
Washington
by
as
rected
Emphasis is being placed on plate produc¬
and plans are under way to increase capacity,
looking to an addition of 100,000 tons annually to the 400,000 tons
now in
operation.
WPB has worked out a plan for production of
80 to 90% of steel plates for cargo vessels from this source, reliev¬
ing universal and sheared plate mills for production of heavier
tion
by allocations.
by strip mills
gages.
Little
change is noted in the scrap situation and some steelmaking equipment remains idle.
Tonnage from automobile wreck¬
,
ing yards has begun to move but the total is disappointing com¬
pared with expectations.
Search for scrap by various public agen¬
cies has been intensified and is producing results.
Organized col¬
farm scrap is broadening.
Since automobile production
stopped a large source of scrap has disappeared and prod¬
ucts now being made by automotive manufacturers do not yield
sufficient to make up the loss.
Sheet deliveries are confined almost entirely to top priorities
and most March schedules allow for deliveries only at A-l-j or
lection
of
has been
.
5:30—:9:15
to
J
.
2.58414c.
Jim.
4
2.27207c.
Oct.
Mar.
9
2.32263c.
Jan.
-r 4
—2.32263c.
Dee.
28
2.05200c.
Mar.
10
1935
_J2.07642c.
Oet.
1
2.06492c.
Jan.
8
1934
—2.15367c.
1933
1932
Apr.
24
1.95757c.
Jan.
Ot.
3
1.75836c.
Mi\y
Jul.
5
1.83901c.
Mar.
Pec.
29
1931' JI1.99629c.
Jan.
2-2.254880.
Jan.
7
1.97319C.
I)?c
May
28
2.26498C.
Oct.
29
Pig
March
departure of
One
question addressed to re¬
tail and chain stores (other than
"neighborhood stores) the associa¬
tion asked if it is practical
to
10 a.m. opening. Inquiry
is. also being made among the¬
atres
as
to
whether
week-day
a
could
be
J
a
Gross Ton
14
Jan.
27
New
j
14.81
Jan.
5
13.56
Dee.
6
15.90
Jun.
6
14.79
Dec,
15
18.21
.Jan.
7
15.90
Dee.
16
18.71
May
14
18.21
Decx
17
Fob.
ie
18.73
Aug
11
—
___
-
f
,
March 10,
One week
for basic iron at Val¬
Iron at Chicago,
Philadelphia, Buffalo, Valley and Southern
ley furnaces and foundry
Iron at Cincinnati.
V
One .year
Based
1941
_____$23.61
"'//••:•///•'
Mar.
J'/'
20
$23.45
v
Jan.
No.
burgh, Philadelphia,
heavy
melting
consumers
2
industry will be 97.4%
conipared with 97.2%
and 98.8% one year ago.
$19.17
Apr.
30
16.04
Apr.
of steel
the level of several months, OPA
Finished steel composite is $56.73, semi¬
$36.00, steelmaking pig iron $23.05 and steelmaking
steel
finished
$19.17.
scrap
thers and the
C. J. Babcock Dies
9
22.50
,
Oct..
3
14.08
May
Nov.
22
11.00
Jan.
7
the
known
and Vice-Presi¬
Charles J. Babcock, well
16
15.00
advertising
Mar.
30
12.92
Nov.
17.75
Dec.
21
12.67
Jun.
9
13.42
Dee.
10
10.33
Apr.
29
1934
13.00
Mar.
13
9.50
Fep.
25
tack
1933
12.25
Aug
8
6.75
Jan.
3
12-
man
&
_
.
1936
1932
-
1929
8.50
Jan.
6.43
Jul.
11.33
Jan.
6
8.50
Deo.
29
1 <> in
Feb.
18
r <>5
Tine,
CI
—
17.58
Jan.
29
14.08
—
ZT
had
week beginning
one
month ago
increase of 0.2 point or
week ago, 1,622,400 tons one
Weekly indicated rates
operations Since March 3, 1941, follow:
home
in
Port
Wash¬
ington, Long Island, on March 6.
He was 60 years old. Mr. Babcock
was one of the pioneers in the de¬
velopment of advertising
in this
Armstrong Cork Co., E. I. duPont
that
The operating rate for the week be¬
one year ago.
his
the
announced
indicated
week ago, 95.5%
one
at
of the steel capacity
received
an
3
..
dent, of Batten, Barton, Durstine
Osborn, Inc., died of a heart at¬
country.
Among the many ac¬
whose advertising he had
directed for his firm were the
March 9
on
of capacity for the
one
5
Dee,
r...
it
10
uv
___
„
.
War Production
1941.
85,000,000 to 90,000,000 tons and weather con¬
early-season tonnage may make this possible.
Composite prices remain at
1935
castings, compared to 1,651,100 tons
and 1,594,500 tons
than was delivered in
ceilings making no change.
10
Dec.
....
ginning March 9 is equivalent to 1,654,500 tons of steel ingots and
month ago,
has asked for
Low
7
21.83
-
This represents
0.2% from the preceding week.
5,000,000 tons more
Board
Pitts¬
Jan.
J'•////■.,^'/;i J
telegraphic reports which
steel
at
—_$22.00
1938
1937
of
and Chicago.
High
1941
operating rate of steel companies having 91%
March 9,
1
to
England 95, Buffalo, 79%, Birmingham ;95 and Detroit 84. -
Preparations are being made for an early start in movement
Lake Superior iron ore and the aim is to bring down at least
Gross Ton
.ago___^___rrfi._/_:______/;__ .20.33
on
The American Iron and Steel Institute
that
a
19.1.7
quotations
scrap
-T09.)
Lnw
i:
$19.17
cago
ditions indicate a large
agOi_u^i______—19.17
1931
High
::
1942,
Scrap
One month ago-
1939
ago__—_—i—_ 23.61
ayerages
St«el
-
ago——Z——.—23.45
Based on
of the
•advanced to 2 p.m.
May
Jan.
1940.
ago—__$23.61
One month
One year
Iron
$23.61
10,. 1942,
week
1.86586c.
13
Chi¬
13.56
20.25
24
Nov.
9
112.31773c.
1841, and 36.30% above February, 1940.
Steel ingot production last week rose % -point to 96%%.
16.90
Jul.
9
Nov.
,
1
1929
highest rate,
17.83
2
1.89196c.
160,856 net tons, compared with
161,774 tons in December, 1941, and was 6.81%
greater than in January.
Total February output was 4,503,962 net
tons, 454,823 tons less than the January total, because of the shorter
month.
This was 6.58% above the total production in February,
the
1
2
Z_l;95578c.
__
pig iron production in February attained the second high¬
Coke
daily average rate on record,
est
5<
18
__2.58414c.
1936
1930
there
by specific allocations for special purposes, necessitating rearrange¬
ment and causing delay for other consumers.
Most producers car¬
ried over unfilled allocated tonnage from February.
■Z5J
19.61
Mur.
16
1937
scarce.
Dec.
Jun.
19.74
16
May
are
practically all products mill schedules are continually upset
May
1929
Apr.
Conver¬
in February.
16.90
___
—
1930
2.30467c.
..
2.24107c.
5:45;
In
than
restricted
17.90
1931
./J J .Low'
—2.30467c.
sheets
Galvanized
more
plate production has cut sheet output sharply.
1932
'
High
..
1941
2.26689C.
5:45;
higher, / considerably
sion in strip mills to
1934
_
-
1935
United
2
,
performances
16
1933
sheets and strip. These
products
represent
States output.
23.25
23.25
'.938
1936
weighted index based on steel bars,
tank plates, wire, rails, black pipe,
3
to 5:00; 8:15 to
to 4:45—9 to 5
5:30—9:45 to
arrival and
Jun
8
Sep
Sep 15
22___.
Sep
Sep 29
advanced 1% points to 103%%, Cincinnati 7% points to 94%
and Cleveland 2% points to 91%.
St. Louis receded 10% points
to 78% and Wheeling 1 point to 85%.
Unchanged rates were as
follows: Pittsburgh 95%, Youngstown, 91, eastern Pennsylvania 90,
beams,
hot and cold-rolled
Jan.
a
matinee
1939
Jan.
three shifts is it possible to time
the arrival of the day shift
mdopt
2
__2.35367c.
eployees living farthest from
your place of business?
If your
business
operates on two
or
In
Jan.
__2.30467c.
earlier than 8 a.m.?
*
$22.61
1939
times may be assigned to those
<
23
1940
practical difficult
ties in the way of such
rearrangements of time and ar?
rival and departure?
Can you
arrange schedules so that the
latest
.
Dec.
2.30467c.
2.30467c.
ago—
year
Low
High
$23.45
week ago
One month ago
.
/
j;:. /.
'.940
to
Other questions the association
Are
COMPOSITE PRICES
AGE"
Steel
March 10, 1942, 2.30467c. a Lb.
asked its members were:
.'
"IRON
THE
Finished
/
1938
to 5:15— 9:30
net
159,188 tons from 160,340 tons in January, while the February
operating rate was 96.4% off slightly from the 97.7 rate in the pre¬
ceding month.
There 'were 220 furnaces in blast on / March 1
5;
5:30.
8:15
9:15
4,458,273
compared with 4,970,531 tons in January.
Output on a daily
"The Iron Age," decreased slightly to
8
Proposed Working Honrs—7:30 to 4:30—
7:45 to 5:15—8:00 to
5:30;
in February totaled
production
pig iron
to
7:45 to 4:45—8 to 5;
'5:15—8:30
—98.6%
Mar
basis last month according to
A
parture
unchanged.
were
tons
'
.shift
9
,
r
suggested
99.2%
2
Jun
,
As the war program progresses,
/ made as a result of a request for the proper distribution of fApril plate production so that it will
"information on the subject from
go where most needed for * the war effort.
Forms reaching steel
George A. Sloan, Chairman of the mills' from.plate consumers indicate a demand of at least 50%
Mayor's Business Advisory Com¬ more than estimated April production.
mittee.
During the last war, an
/
Steel* plant .operations.;this week declined a point to 95%%;
attempt was made to put a simi¬
partly as a result of a shutdown of a Southern plant for repairs and
lar plan into effect with, howequipment installation. Scrap shortages are increasingly sharp in
ever, only limited support from
other areas.
Ingot production was up a point to 98% at Pittsburgh
businessmen.
"
'
and 2% points higher to 94% at Cleveland.
Losses of 2% points
In
issuing / the questionnaire, to 90% were reported at Buffalo, 9 points to 83% at Wheeling, and
Thomas Jeflerson Miiey, the asso¬
9% points to 80 % in the Southern Ohio River area.
Chicago is
ciation's
Secretary,
emphasized unchanged at /l03%, and Youngstown is holding at 99. Other dis¬
a
10
-97.5%
,
dustry Association of New York
form with
Mar
Jun
3
,
congestion,
was
sent
on
Feb. 25 by the Commerce and In¬
ules-could
Mar
production and consumption is being im¬
war production
is intensified.
Ware¬
houses are not allowed to accept supplies from any source in ex¬
in obtaining machines for specific plants.
cess of their quota, pig iron users are warned not to take shipment
Such misdirected enterprise by, Government agencies or, for
of more than they can consume in any month and tighter lines are
that matter, by private industries: competing with each other over
being drawn on use of tin plate.
some gravely needed product or piece of, equipment, seems out of
\
Shipment of steel for civilian use has practically disappeared
harmony with the country's needs for weapons.
and fabricators v^hose normal lines of productive have been sus¬
The multiple pressure. applied to machine tool producers by
pended are canceling contracts with mills.
At the same time they
the War and Navy Departments, "The/Iron Age" is told, some¬
are being allocated tonnage for
use in their converted production
times results in two war plants receiving part of their tool require¬
for war purposes, in some instances larger supply than they had
ments and then being unable to operate for a time because they
used for their regular lines.
lacked the remainder.
Despite pressure for certain types of ma¬
Trend of orders to the higher priority range continues and
chine tools, many tools remain idle in plants still unable to obtain
mill shipments are more closely confined to top ratings in prac¬
Government orders.
While the scramble for machine tools con¬
tically all products.
In most cases shipment under B ratings is
tinues, there are specific instances where planers, milling machines,
practically stopped.
The latter applies to pig iron as well.
drill presses and; boring mills continue idle, particularly in' the
Tin plate production is at about 92% of capacity but curtail¬
Midwest.
ment is imminent under new regulations.
A number of details re¬
Different from. Government agency competition for machine main to be ironed out in this product. Completion of electrolytic tin¬
tools, but similar in its effect in slowing the war program is one ning lines by several steelmakers is relied on to take up the slack
phase of the steel priority system. Control over steel production caused by discontinuance of production by regular tin mills.
by the War. Production Board (except for plates) is. hampered by
Demand for structural shapes is increasing, for war needs.
the fact that some Army and Navy officials (however well mean¬ This includes expansion of shipbuilding facilities and a number of
ing) who are not familiar with the over all steel picture still have additional explosive manufacturing plants in various parts of the
the authority to issue steel ratings.
Some of these ratings have country.
;
been in the upper priority brackets of A-l-a to A-l-j.
Plate consumption is at a record rate., Some ship delay has
The ton¬
nage of such items not under the specific control of the War Pro¬ been caused by slow plate shipments to manufacturers of propul¬
duction Board is by no means small.
sion/equipment and other fittings.
This condition is being cor¬
"staggering"
to its members.
week
to the tremendous output of war im¬
seemed in need of a flattening-out, or a
brushing off:
First. - competition among the War Department, the
Navy Department and the War Production Board for machine tools
apparently has now reached a stage where each of these Govern¬
ment agencies considers it a moral victory to outsmart the others
hour
,
the
to
plements needed this
working
Hours
in New York City, as a
means
of relieving the load
on
transportation facilities and rush.
-
speeding of America's arms program are un¬
likely, in the face of a general demand for production on a warwinning scale, 'to last very long, reports "The Iron Age" in its
issue today (March 12)■, further going on to say:
suggested
a
1059
counts
de
Nemours
Hammermill
&
Co., Inc. and the
Paper Co.
Born in
Rensselaer, Ind., Mr. Babcock en¬
as
a
young man for the
Spanish-American
War,
and
listed
served
in
Cuba.
Later
he
was
which
corporated
an
Co., the Florsheim Shoe Co., Car¬
Pirie, Scott
Mandel Bro¬
son,
in
was
Batten,
as
1911,
re-in¬
Barton,
Osborn, Inc., and
member
of
that
Tuesday, March 3_
Wednesday, March 4
was
firm
728.9
229.0
Thursday, March 5
Friday,
March
___228.9
6——
——229.1
Saturday, March 7——
Monday, March 9
Tuesday, March 10_________.
_229'.2
—,.__229.5
—
Two weeks ago, Feb.
Month
1941
&
later
Moody's Daily
Commodity Index
merchants
Field
active
He joined
Co.
until his death.
Year
Marshall
May Co.
Batten
company
Durstine &
associated with such well known
as
George
ago,
ago,
Feb.
March 10—-
High—Sept. 9
Low—Feb.
1942
24
10
17
High—March 9
Low—Jan.
2
,
_229.5
_228.1
226.5
178.4
____219.9
171.6
_229.5
220.0
THE COMMERCIAL & FINANCIAL CHRONICLE
1060
Thursday; Match 12, 1942
lease-lend ~of" American: -tankers
Output For Week Ended March 7,1942* Moody's Bond Prices And Bond Yield Averages
Moody's-* computed bond prices and bond-{yield averages {are
Shews 12.9% Gain Over Same Week In 1941 j given sin the following tables:. "
V-V.
■Electric
in its current weekly report, esti¬
The Edison Electric Institute,,
electric light and
week ended March 7,
■1942; was 3,392,121,000 kwh., which compares with 3,004,639,000
kwh. in the corresponding period in 1941, a gain of 12.9%,.. The
output for the week ended Feb. 28, 1942, was estimated to be 3,409,r907,000 kwh.; an increase of 13.9%^ over the corresponding week
the
of electricity by the
mated
'
that
power
in
1941.
-
-
»
s
».
'■
\
i
■
New
Atlantic—————.—
Southern'
•
Mountain———__——
Rocky
14.5
*12.8
States.
15.2
—
"
•
Coast____
:
12L9.
States——
United
DATA FOR RECENT
WEEKS
-
91.48 "
96.85
109.79
106.39
,115.63
113.12
107.44
91.48
96.85
109.79
.113.12
106.39
115.63
113.12
107.44
91.48
96.85
109.79
113.31
106.21
112.93
107.27
91.62
96.85
109.79
which
was
115.63
117.17
106.39
115.82
113.12
107.44
91.62
96.85
109.97
113.31
March
10.
117.07
106.39
115.63
113.12
97.00
109.97
113,31
had
' m.'
,
*
(!o Change
107.62
91.62
115.63
113.31
107.44
91.62
97.00
109.97
113.31
106.56
115.82
113.31
107.62
91.62
96.85
110.15
113.31
27
116.34
106.39
115.63
113.31
107.62
91.62
96.85
110.15
113.31
suggests
rationing such
"very likely", would
be
20
91.62
'96.85
113.50
and
Jan.
106.56
115.82
113.31
107.80
110.34
116.27
106.74'
116.41
113.50
107.80
91.77
97.16
110.70
113.50
117.02
106.74
116.41
113.50
107.80
91.91
97.16
110.70
113.7q
92.06
97.31
117.08
106.92
116.22
117.51
106.92
116.22
114.08
107.62
91.91
97.31
110.70
113:70
117.60
•106.92
116.41
113.89
107.62
91.91
97.31
110.52
113.70
Coast
118.00
'
*
106.92
116.61
114.08
107.62
91.77
97.16
110.70
113.89
117.61
106.04
said,
115.82
113.50
107.09
90.63./
95.92
110.34
113.31
113.70
107.80
'•
2
__
20.6
1942
High
r*
118.10
106.92
116.61
114.08
107.98
92.06
97.47
110.88
High
1941
106.04
115.43
112.93
107.09
90.63
95.92
109.79
118.60
116.02
109.60
92.50
97.78 { 112.56
Low
116.41
1941-
{
115.89
105.52
116.22
112.00
106.04
117.32
106.04
117.20
113.12
106.56
.
1941-
10,
Sept.
6_
3.132,954 > ■2,591,957
-
Sept.
Sept.
20—:—
Sept.
27
'
•2,773,177
2,769,346
+ 18,2
2,816,358
+ 16.2
3,273.376
Oct.
|l 8
>
89.23
•
95.62
111.62
109.42
96.38
109.97
•
•
90.34
'
throughout the country, indicated,
that rationing of motor fuel to:
112.93
25———
;
J?
Nov.
Nov.
22—
Nov.
29
——.
+ 16.8
2,576,331
2,281,328
+
16.5
2,622,267
2,283,831
+
17.3
2,608,664
2,270,534
2,245,449
-
2,858,054
20———
3,495,140
27—
3,234,128
2,757,259
21_
3,450,468
{'{,•••'-v:
Baa
A
•>.
3.32
Corporate by Groups
Indus'
3.18
3.95
-
»
p. u;
R. R.
;
4.31
■
3.0 i
2,996,155'
•
?Feb". '2ar_:::-iili_: -3,409,90?
2.99
3.18
;
2.99
3.00
J
3.32
4,30
3.95
3.00;
3.31
4.30
3.95
3.17
2.87
3.00
3.30
4.30
3.94
3.17,
2.87
2.99
3.31
4.30
3.94
3.17
2.99
2.86
2.99
3.30
4.30
3.95
3.16
2.99
While
"3.95
3.16
2.99
3.95
3.15
,
'
.
3.36
•
I
A
2.87
2.99
3.30
'■* 4.30
2.86
2.99
3.29
4.30
2.99
2.99
-
14————-•
•Mar.
•
,
3.29
4.29
3.93
4.28
3.93
3.13
2.97
2.84
2.97
3.29
4.27
.3.92
3.14
2.97
2.95*
3.13
30
Jan.
3.34
-
•
•
.i
.
"
''■*
1
2.98
-
-
2.98
3.13
23
3.34
2.84
3.30
y
2.97
Under that
cars
are
16
■
"
1932
1929
v
:3.34
2.83
"2.96
3.30
-
3.14
2.97
3.34
2.82
2.95
3.30
4.29
3.93
3.13
2.96
divided into three categories,
de¬
3.39
2.86
2.98
3.33
4.37
4.01
3.15
2.99
3.39
2.88
3.01
3.33
4.37
4.01
3.18
3.01
3.34
2.82
2.95
3.28
4.27
3.91
3.12
2.96
'
——
1,619,265
1,542,000
1,602,482
.1,733,810.
"2,660,962
1,588,853
Mar.
1,726,161
«i;54M50'<v 1.718,304)
;,2',546,816;*=d,512,158 ~ 1,699.250{
;< + 13.9
2,568,328
+12.9
2,553,109
2,550.000
1,519,679
1,706,719
1,538,452
•
3.06;
2.85
2.79
,
3.39
3.00
3.36
3.05
3.66
'
4.47
3.19
3.92
•
4.03
'
;
3.20
3.08
3.03
3.89
I 4.24
,
.
f-3.39
1941
10,
1,702,570
Mar._ 9,
:
3.59
1940-
4.39
f
'3.98
,
4.81
'
•
y.
5
.
FOR
DATA
-
RECENT
(Thousands
MONTHS
% Change
3.01
3.10
3.30
+ v
1941
<
'
issue of
.
1938
'{■
1937
.10,183,400
10,589,428
+ 11.7
9,256,313
8,396,231
10,974,335
+ 17.4
10,121,459
9,110.808
9.525,317
,9,868,962
11,118,543
:June
13,231,219
11,026,943
'.July
13,836.992,
+ 16.3
10,705,682
13,218,633
11,616,238
-
——
;i
'
■
v
+18.9
,
+ 20.0
;
+ 19.1
i
.
|
-
8,911,125)
September
•October
—
November
9,573,698
Nations tankers, the
.9,665,137
8,832.736
9,773,908
,.9,170,375
10,068,845
10,036,410
.*
10,185,255
10,308,884
+ 18.4
10,785,902
9,801,770
11,484,529
+ 21.0
10.653,197
9,486,866
9,908,314
12,474,727
+ 18.3
11,289,617
9,844,519
10,065,805
12,213,543
+ 14.4
13,974,232
_________
Total
11,087,866
for
.
ord
j
9,717,471
117,141,591
111,557,727
of
tankers
30, 1940,
The
plan, which
month
of
1941.
Total
during February was compiled at 5,557,076
6,173,829 barrels for the month previous and
5,351,675 barrels for the same month a year "ago.
All the major
producing, sections registered increases-over their February, 1941,
production
barrels compared with
figures.
,
{,"
„
{{{.{
{{,{'-/;
Northwestern
'•
"{
-
.
• ;
.
production
decreased 148,981 barrels from the
1,340,186-barrel February total represented
month previous, but the
178,446-barrel increase
over
the 1941 total for the
month.
same
.
Southwestern
was
rels
-
production, totaling 2,078,688 barrels in February,
290,628 barrels lower than the January output but 88,730 bar¬
more
than
ruary,
barrels
more
production during February,
reported
barrels
101,300
Below
the
mills
Buffalo
than the
is
less
output for the
detailed table
a
TOTAL
1941.
with
MONTHLY
same
month
a
PRODUCTION
Previous
February
developed by the industry trans¬
committee
v
1942
.
,
previous.
:
'
in the U.
participant
proportionate part
of the excess cost of transporting
oil to the East Coast by alterna¬
tive
a
transportation,
such
as
rail,
pipe lines, barge and tank trucks.
No participant, it is further pro¬
vided, may withdraw prior to the
termination
the
of
program,. or
prior to the end of the first 15
months
of
operation.
Carrier
participation is optional and lim¬
ited to owners and operators of
tankers in excess of 3,000 regis¬
tered
gross
tons;
'
managing subcommit¬
A tanker
tee,. with headquarters at Rocke¬
feller Center in New York City,
C. H. Kunze, of
the Socony Vacuum Oil Co., will
headed
and
group
is
by
the
administer
now
program.
This
carrying capacity of tank
Southeast
Pacific
—
Coast
that "some
laws"
Totals-
♦Estimated.
K'»;
—
-February-
,-iU'Xl
2,369,316
1,876,286
1,780,067
948.692
809,625
720,765
786,794
participants will
be
entitled, however, to retain
allocation, control and -'direction
472,410
527,765
468,629
283,091
248,583
t55,695
40,669
515,129
-+>:
vessels.
524,564
451,429
over
I 246,328
266,047
sels
126.182
116.0Q8
isra<u
546,958
615,786
5,351,675
5,260,277
643,389
5,178,098
:•
I'c
1
c u
r
rfV
i v.
Shipper
the movements
the
of
director.
the
Petroleum
Mr.
division
action
and
Co¬
Ickes said
that
would
coordinate
"on the many
complicated
ply
overlapping petroleum
problems in a manner
will
assure
sup¬
ucts
and
the
the
sources-.and
avail¬
ability of supplies. -The division
will be responsible for the de¬
termination
extent
of
the
character
and
of
changes in production,
transportation, refining and mar¬
keting
activities
which
affect
quantity, character and location
of supplies.
The
gasoline
situation
acute"
as
in
he indicated that
needs
coordination
the
of
in- in¬
the
meas¬
of any
ves¬
might be taken immediately
consumption in this
major consuming area.
It was
.
circles
the
tonnage.
Shortly-
last
I .vi
of
after announcing ap¬
the tanker allocation
informed
that
the
*
Washington
Coordinator of
might institute a
gram of limited suoplies for
by them
operated
in
Petroleum
within the limits of their allotted
or
curtail
stations
stations,
summer
night closing of
the method utilized
and
in
ronsumntion
the
tanker
pro¬
serv¬
and
fall
the
shortage
to
East
curtail
when
created
by
the
done4 to- meet
be
to
conditions arising out
commenting upon
petroleum prices, the committee
said, "the economic necessity for
emergency
price regulation by
the Government in order to avoid
inflation
and
should
The
where
average
tion
fall
barrel
necessary."
week of March
initial
daily
non-inflationary
devise
to
incentive
level
saw
oil produc¬
the
4,000,000-
crude
below
.
recognized
at the same
should be exer¬
ingenuity
cised
be
but
accepted,
time
that
availability of the
required kinds of products at the
right time and the right place,
in
quantities which, so, far as
possible, will meet demands."
"This
division,"
Mr.
Ickes
added, "will be fully informed as
to the military and civilian re¬
quirements for petroleum prod¬
ice
owned
proval
91.
anti¬
to
necessary
of the war." In
the
for
time
second
this year.
The "Oil & Gas Jour¬
nal"
reported on Tuesday that
output last week of 3,960,200 bar¬
rels was off 55,235 barrels from
the
previous week.
duction
off
was
Texas
42,000
pro¬
barrels to
1,473,450
barrels, California was
barrels to 622,250 bar¬
rels with Michigan, Louisiana and
Oklahoma' reporting ; substantial
losses in crude output.
Illinois
off
3,500
was
the only
major oil producing'
report a higher crude oil-
State to
ended March 7.
flow in the week
The
rapidly-rising
of
stocks
crude oil and refined products
the Southwest
in
resulting fronrr the
threat
submarine
to
has
shipping. which
said
1939
1,097,911
tPartly estimated.
•n:
appear
emergency
order
1940
6,173,829
the
of
"appears both cumbersome and
inadequate > to • facilitate - what
movements
tanker
1,160,450
—5,557,076
definite and
more
dustry to meet war needs. - "The
present
practice v of - obtaining
clearing
letters
from
the
At¬
torney-General," the committee
said'at its Washington meeting,
to
1941
•
of
Committee
relaxation
positive
ures
1,161,740
1,989,958
510,800
Economics
ships among shipper participants
on
a
certified percentage basis,
and of directing the movement of
S.)
month
.
Office
to be followed.. The
251,905
Western Division
the
ordination,
with
Robert
Lee
Minckler, of Glendale, California,
developing proced¬
1,489,167
.
in
function East was described on March 10
of the committee will be to allo¬ by
Coordinator Ickes- as "very
ure
cate the
'
each
2,073,688
—.——
Buffalo
.'Central West—Eastern Division®—
/4'
•
the
847,392
.* Southwest—
d
:
share
for
Besides sharing
district.
space,
/
1,340,186
Northwest—
North
year
comparable figures:
FLOUR
(Reported by mills producing 65% of the flour manufactured
•
/
.
.
847,392 barrels produced during Feb¬
than the month previous but-377,767
into ef¬
goes
fect in the immediate future, was
would
production, according to reports received by "The North¬
western Miller" from plants representing 65% of the total national
output, decreased during February 616,753 barrels from the pre¬
vious month, but was 205,401 barrels more than during the same
participants would be assured
in proportion to their use'*>
from July 1, 1939, to plan, Coordinator Ickes created a
new division of petroleum supply
'
*
'
space
June
tanker
Flour
American petroleum industry this week devel¬
Under the program,
Harold L. Ickes.
portation
February Flour Production ten
which
new
a
Eastern
-
.
plan of allocation of available tanker space for move¬
ment of oil to the East Coast, approved by Petroleum Coordinator
oped
9,506,495
10,372,602
124,502,309
138,653,997
year
9,893,195
11,476.294
12,842,218
the submarine threat to coastwise shipping
8,750,640
14,756,951
—
to
answer
8,607,031
11,924,381
December
l
::V.'yY
already resulted in the sinking of many American and United
has
13,901,644
—_
In
-■
9.886,443
14,118,619
.August
■
1941, page 409.
Petroleum And Its Products
{
9,787,901!
-
9,290,754
12,449,229
:
plan is likely here.
facilitate
'
+ 12.5
May
.'April
1939
11,683,430
11,831,119
——
•March
;
same
apply' to
the
local
rationing board for special con¬
sideration
in
Canada, band
the
Petroleum y. Industry ; r War
Council this week went on rec¬
I
12,882,642
February
i
Oct. 2,
ra¬
may
the
*
lished in the
the standard
than
more
-
"•
1940
over
:./r 1940;;
13,149,116
•January
a
need
The
computed from average yields on the basis-of ono "typical" bond
coupon,
maturing In 25 years) and do not purport to show either the average level or th*
average movement of actual price quotations.
They merely servo to illustrate in a more com¬
prehensive war the relative levela and the relative movement of ylold averages, the lag
ter being the true picture of the bond market.
.
s
■
•
.
t The latest complete list of bonds used in computing these indexes was pub¬
Kilowatt-Hours!
of
19.41
■
1,537,747 ;/ 1,687,229
gasoline quotas are allotted
accordingly.
/Consumers
who
These prices ar*
•
horsepower,^ and
upon <
basic
tion
{ 3.17 !
4.37
pending
plan, motor
2.83
'<
2 Years ago
1,728,203
1,578,817
•
;y
2.72
2.85
3.25
i
w..
;
2.86;
3.42
1941
.
3:92 *■
4.28
4.28
/
1 Year ago
1,717,315?
.
_
_
1941
High
Low
1,736,729
1,588,967
,2,632,555
1942
Low
2,688,380
'+14.8
1942
High
.
2,558,180
:
.
quan¬
3.29
'3.37
—
trust
;
the
on
2.98; ;
,
2
.•
2,983,591
—
decision
no
2.98
1,598,201
•
Administration
2.83
v."
1940
1941
..+ 14.7
3,004,639
of.? Price
reported {favoring..: ration .books
for; motorists
similar;; to { those
planned r for 'sugar ' rationing.
2.83
27
•
,
3,392,121
7
/
Office {
3.01'
3.35
'
Mar.
tioning: Mof '' gasoline1*' With " the
2.86
•
3.37
•3.37
the supply {situation.," Fol¬
lowing this will come formal" ra¬
9
2,616,111 :
"2,993,253"
f
~
*
3.37
2
2,033,319
T2,564,670;-
2,985,585
3.18
viate
;; 3.35
2,053,944
%+16.2
"
3.18
3.95
;
4.31
by'
alle¬
6
2,174,816
?i 2,976,478 :':.+15.0
3,423,589
3.95
4.3t
'
Federal, Government to
13
2,424,935
+i5.8;
2,989,392
3.31
3.31
cur¬
deliveries
2,234,135
2,673,823
2,994,047
V 3.38
—————————————.
3.00
3.00
/ 2.87
2.87
-
2,241,972
+ 14.5
3,012,638
3,474,638
——
the
through
stepr taken
2,394,388
2,464.795
+ 15.7
iFeb.: 14_J_jC_s._i._;_'3,421,639
,Feb.
a
first
be- the
2,376,541
2,712,211
V +15-6
—
■
will
tity to be allocated to each motor¬
ist has been made, it is reported
that v-OPA officials are studying
the Canadian rationing program.
14.5
3,002,454
3,468,193
7
.i
;/ 1
consumers
service " station
20
+ 17.3
2,845,727
2.87: :
3.37
.
.3.
.r*
Feb.
2,654,395
over
Eastern
2,179,411
2,694,194
3,472,579
t31—
Feb.
1941
1—3,440,163
{24——
Jan.
Aa
3.01 /
2.88
2,104,579
2,247,712
2,560,962
2,334,690
3,288,685
Jan.
.
Prices)
Closing
Corporate by Ratings
Aaa
{ 3.37
——
4'-—_
*'•
{-•'V;
2,605,274
+
,
•
'
2,263,679
1942 ;
1942
17---—_
■i-
rate
-
6
2,214,337
+15.7
■
9
% Change
Jan.
AVERAGESt
■
*
2,276,904
+ 14.8
3,052,419
Dec.
——
111.25
107.62
'
'
Corpo•
:5
2,325,273
+ 13.9
Dec.'
3
YIELD
Individual
on
Avge.
3.38
'7
>;
2,587,113
2,931,877
:
2,975,704
Jan. '10—
(Based
_•
10
•
2,588,618
+ 14.4
Dec.^
Jan.
■'
BOND
"
+15.8
2,839,421
Week Ended—
•
Average
Mar.
+ 17.9.
•
;2,889,937
3,003,543
—
4-.'- '••
•
*■;".{'•
Daily
.{(:'•
2,297,785
3,475,919
.
•'{". •:'
■
2,327,212
2,866,827
13
—
90.63
84.68
101.47
*
2,324,750
6_——3,414,844
Dec.
..
1942—
2,339,384.
3,339,364
,
2,331,415
2,228,586
3,247,938
—_
M
2,231,277
2,251,089
3,347,893
.
2,211,059
2,207,942
112.19
116.02
MOODY'S
2.554,290
-•
102.63
116.03
1940—
tailed
2,882,137
—3.368,690
8__:
.15
2,538.118
2,558,538
f
+ 19.3
.
'
'
3,380,488
1———
Nov.;;.
Nov.
9,
•'
{
;
2,338,370
2,583,366
.2,817,465
3,313,596
3,340,768
'
Mar.
2,211,398
2,279,233
_+19,l
2,792,067 v
'
;
3,355,440
,.11——_
,
Oct.
Oct.
2,109,985
2,837,730
4—2—3,330,582
Oct.
2 Years ago
I
1937
\
2,532,014
+19.8
3,322,346
.
1938
•
2,375,852
20.9
+
3,273,375
13
1939
Reports gaining wide circulation^both in the Nation's Capital '
and
in
leading
newspapers ;
•
1 Year ago
•{;.J{'■■■■
supply problem,., officials
refusing to reveal any de¬
- -.»'» -b.". •
tails;
112.93
108.52
The
nation-wide basis.
a
113.89
115.90
* 120.05
1942
Low
15.0
113.70
110.52
action
taken,
report, sent to Wash¬
ington from New York this week,
discusses all phases of the East
30
>
*
Mar.
1940
over
on
on
industry
23
,
16.7
;{;{•
116.32
-.
~
'
1940
;:v,r 1941
• •
if
that
stated
him
previously
the industry
106.39
6
1941
Week Ended—
before
Ickes
Feb.
(Thousands of Kilowatt-Hours)
'
'
laid
Mr.
.
116.78
'
•;
113.31
116.77
•
tne
on
the
112.93
117.38
V-:13
15.3
14.7
<
v
107.27
decision
2
13.9
«r'•t" —v
*
-
-
13.9
•:
■
.
.
112.93
expected
following a " cdmplete * study"" of
report from the industry's
special
committee
on ■ supplies
Indus
P.U."
R. R.
Baa
A
115.43
5
,
.
23.9
23.4
25.2
———__—
•'
Total
Aa
Aaa
106.21
v
*
is
gasoline situation shortly,
117.32
"
Pacific
rate •
117.46
his
shipping
1
'
-•,
14.7
,
13.5
17.3
,
Corporate by Groups
Corporate by Ratings *
announce
Eastern
.
7
'•
12.7
14,4
,V:
to
Yields)
Average
on
~
Ickes
Coordinator
6
15.3
{{{■■:,
•
13.8
-
•
Gulf-East' Coast
PRICESt
117.45
'
Feb. 14. '42 f
-
13.1*
;
'
-
in vthe
"
bottleneck
3
12.1
13.1
Bonds
1.
g
——
16.7
12.9
;■
12.1
Central-—
West
{vV:
•
9.5
11.0
—_j._——\
{Central Industrial
13.1
-
8.9
,.
Avge.
Corpo¬
BOND
transportation
movements.
*farti-
an
ficial"
4"
Feb. 21. '42
Feb. 28. '42
13.5; :
England—T_-_r
Middle
Averages
■
Week Ended
-
u. s.
Govt.
•
'
Maiv 10
'
Mar. 7, '42
Major Geographical Divisions—
1942—
Daily
OVER PREVIOUS YEAR
1
•;
.
*
,
PERCENTAGE INCREASE
.
(Based
industry of the United States for the
production
MOODY'S
-
to Gr'eat Britairi 'created
brought
Petroleum
from
dinator Ickes
coastwise
hampered
March
on
an,
Coor¬
4 order-*
ing: the Southeastern and South¬
western oil fields to pare their
March production of crude oil by
barrels
2,082,200
lotted.
the
Mr.-Ickes
curtailed
amrunt
daily
barrels
204,100
from
the
originally
al¬
explained
that
production
would
only to the reduction in
transportation facilities,
available
*
n */
•
}-■>c.i..
CT
\-.4cmib
tS\0
nomba+ri
(<v>o.-T
i-.
4,d
Hi'?
r-I.V'b
5
l/r'":■
■■■'-V ■'I
Volume 155 ;i Number 4054
;
';:C
^ ^
1061
and thus the curtailment order in
itself would not" -affect "the sup¬
of the.urgent neces¬ .a declined practically every year
since 1932, was unchanged from
increased production ofplies available for the- East Coast drilling operation is to discover aviation gasoline for military use. ;;■> 1940,, at 2.4%v;v
markets.
The States affected ih- oil,
As a result of rapid expansion
and " that--such- an operator By amendment No. 1- to revised
clude Texas, Arkansas,
in the volume of loans and also
Louisiana, under the new arrangement would price
schedule
No.
88,
which
still be deprived of -the benefit covers petroleum and petroleum 5 of
Mississippi and New Mexico.
'
investments, the
ratio
of
"Situation shows no prospect of derived from the special deple- products, the OPA permits higher
"capital accounts to loans, secur¬
immediate
improvement^ so in tion rate upon "becoming a pro- >■ prices on this gasoline and enities, and real estate declined
order to balance crude oil pro¬ ducer of crude oil.
in 1941, especially in the large
' '
Courages greater production from
duction with available transpor¬
There were no price changes in marginal sources of supply.
New York City banks, where it
The
tation facilities and to' avoid fill¬ the crude oil markets this week. exemptions
fell from 17.5% in 1940 to 15.4
apply
not
only to
Government- purchases but
ing crude and products storage
in 1941.
The ratio of capital
also
Prices of Typical Crude per
to distress levels, it is advisable
to inter-company transactions in
accounts to deposits continued
new
drilling*
.
pointing out that
"exploratory
objectiveof
result
as-a
sity
every
for
:
"
.N
him
snapped
admitted
son's
insisted he
difficulty here. Har¬
simply1 franker, ^Nel¬
reaction
the
and
-up
no
rison: was.
promptly
circulation
of
caused
reports
that
Harrison might be eased out.
":
v
Shortly before this, Washington
correspondents were treated i.to
•
.
to
reduce
the
March
crude
production - of f District No. 3 by
204,100 barrels daily below pro¬
duction
rates
recommended
to
:
Barrel At Wells
oil
components
(All gravities where A. P. I.
degrees are not shown)
v
Eastern Illinois
States.
tion
agencies
"This
in
apply
crude
to
of
the
five
reduc¬
necessary
output should
other than those
from which present production is
required
for -aviation
tuolene,
gasoline,
and- aviation
butadiene
The; revised order set
duction
schedules
up
above
follows?
Arkansas, • 71,500
barrels,
un¬
changed from the original; Lou¬
isiana,
314,700
barrels,
against
330,000 barrels originally; Missisippi,
53,100
barrels,
against
55,600
barrels
originally;
New
Mexico, 102,200 barrels, against
114,500' barrels
originally,
and
Texas, 1,338,600 barrels.
Texas,
Louisiana-and the other States af¬
U.
S.
1.25
—
-
—
Hills,
Gulf
the wholesale
for
market
car
$.088
►
■
mid-continent
week
this
area
v
"' 5
J
Coast
.06-.06
i
T-.
''-
i-' -'"V;,-
41-43
New York
Baltimore
.06-.06%
—
■"
:
F.
'' '
yii.
Water
O.
B.
i.'<
\
White,
'•Vv-
North
as
„
Tank
$.053
.054
-
.054
:
Texas
to
bring them into line with the
orders of the Petroleum
new
ordinator.
Co¬
Texas
—
J-
4.25-4.625
_-_.04%-.04%
from the Gulf Coast to the East
cut
1,292,239 barrels, or more
than 46,000 barrels less than the
Coast
Ickes revision.
backed up stocks of
Gas, Oil, F.
to
The
,
Office
Coordinator
of
the
has
Petroleum
amended
Cali¬
fornia's conservation plan—acting
the
at
curtailment of tanker movements
of
because
the
$1.35
J2.15
to coastwise
menace
shipping has
gressed to the point where pres¬
is being exerted upon the
sure
in
firm to strong along the Atlantic
While
that
rials
State
have
which mate¬
upon
been
installed
used
or
in violation of conservation order
M-68
the
of
Board.
The
specific
authority
fornia
wells
amendment
Production
refuse
Production
War
to
the
Cali¬
Committee
establish
to
grants
quotas
to
for
which equipment has
been
installed
illegally.
When
taken in conjunction with pro¬
hibitions already incorporated in
the
upon
coordinator's
oil
recommen¬
prices
of
fuel
oil
and
gasoline
in
the
transportationshortage hit East Coast area were
oil' felt
the
rising
stocks
with
barrel
reduction
pressure
a
10
cent
being posted
will
purchasers
prohibited
be
moving or buying any
such oil
gas.
or
The elimination or lessening of
the
present
tion
allowance for oil companies,
statutory
recommended by
oil
deple¬
Secretary of the
Treasury Morgenthau in his war
tax
submitted to
program
Con¬
last week, would mean that
exploratory oil drilling now badly
needed for the purpose of dis¬
covering new oil reserves in the
United
States
would
be badly
gress
if not struck "a fatal
blow."
The depletion allowance,
the trade points out, is a special
hampered,
provision designed to compensate
the oil producing companies and
individual drillers for risks taken
and losses sustained
in drilling
for oil.
The elimination or even
lowering of this allowance of the
current rate would act as a defi¬
nite brake on the
fields,
ment
at
a
and
search for new
time when Govern¬
industry
leaders
are
strongly urging such exploratory
drilling.
In
answer
removal
pletion
or
that
of the de¬
to the argument
lessening
allowance
will act as- a
deterent to the badly
needed ex¬
ploratory drilling, Secretary Mor¬
genthau contends that the statu¬
tory depletion allowance could be
applied thenceforth to exploratory
drilling activities only and not to
operations
in
proven ,j fields.
March
on
at
Leon
in
of
Council
Price
for
that
small
of
percentages
Relatively
capitalization
of
such
(ratios 34 and 35)
factor
in
their
low
was
rates
a
of
earnings.
The large New York
City banks had somewhat high¬
er
was
jump
understood
sought
cents
on
that
the in¬
motor fuel
on
gallon, or a 4-cent
five gallons. The mark¬
of
Columbia
curtailment
and
of
program
fall
in
was
and
last
force.
Originally, the Council had pro¬
posed
night and Sunday shut¬
downs of service stations only in
the East but at its .meeting in
Washington en March 4 broad¬
ened the
tire
Deputy
sible
upon
v
plan to embrace the en¬
Ralph K. Davies,
Petroleum
Coordinator,
to
comment
upon
which
pos¬
action
by his department
the Council's recommenda¬
terials
were
the
Leon
in
a
Henderson,
OPA
-
ma¬
exempted from price
ruling this week by
director,
be?
of wit¬
appearances
before
Congressional com¬
mittees is always posted at con¬
venient places, this unusual en¬
terprise from an agency having
nothing to do with Henderson
brought inquiries. They developed
the
on
fact
that Archie's crowd
"Henderson's
side
in
his
was
con¬
flict with Jones."
The
following
peared
and
at the
Jones
Whether because of this
there
not,
flict-
developed no con¬
what
Henderson
between
said and what Jones had
Henderson
cept
was
mistic about the
of
here
ap¬
hearing
looking intently at Hen¬
throughout the latter's tes¬
timony.
or
day
committee
sat
derson
not, a report with
is
the
as
said, ex¬
pessi¬
more
future,
temperament.
a
Jones
matter
is
not
a1
that
Mrs.
pessimistic
Roosevelt may be sent over.
would sound fantastic if we
This
there being any criticism of Jones
in Henderson's remarks the latter,
were
not
But
soul.
instead
of
living in a fantastic world.
much to the disgust of Archie's
More
likely, though, is that boys, ended up by paying a glow¬
something will be done to answer ing tribute to Jones' accomplish¬
Britain's
demands
somewhere.
This
along
the
with
for a victory
phase of things
growing clamor
ments
and
in
in
laying
the
up
rubber stores
development of
syn-
0
thetic rubber.
this
Lieut.
Col.
Kiernan.
It
is
based
the theory that defense doesn't
win < wars
which
is
elemental.
on
it says the thing to do is
simply to send 200,000 men to
Italy,
have
them
establish
a
beachhead
and
forcements of
then
200,000
rein¬
send
month
thereafter1. Military men point out
that it would take 2,000,000 tons
of shipping to land the first 200,000.
This means 2,000 boats of
every
tires
now
squabbling
of
the
able.
cars—there
on
behind
the
the
to
as
rubber
There
not
that
disposition
will
be
to be
seems
is
scenes
avail¬
doubt
no
only Jones but the
big
firms were obstructed by the
British and the Dutch at every
tire
turn in efforts to load up on
The
ber.
head
of
one
rub¬
tire
firm
alone has told this writer that he
had
hundred
several
tons at the docks but
mitted to
bring it
thousand
was
not per¬
away. ;
Now the disposition in
the Ad¬
ministration is to spread our sup¬
ply
all
at the
10,000 tons each, for the first
landing. They are simply not
omy.
available."
let
The
the
over
expense
There
is
United
of
our
Latin-America
Nations,
own
econ¬
agitation
even
continue
to
to
clamor
itself in
an
However, there is a rather
widespread feeling around here
that
hell
will
break
lose
in
the
spring in more ways than one.
A
gradual tightening of the
lives of the people at home to¬
gether
with
increased
boon¬
doggling
part
of
and backbiting on the
Washington bureau¬
the
and
profits
on
secur¬
i
i
plants
a year or
so
ago, Jones
asked the Navy about it and was
that
assured
keep
open
it
the
would
flow
pe able to
of
rubber
from the East.
The attack on the big Texan is
getting places, though.
Several
agencies have already been eased
away from him—Federal Housing,
with
crats,
field of military
Barney
prospect.
volume
the
rate
of
of
of the A.
1941
Gasoline of 91-octane rating or
components and
or
credence
some
The
tions.
higher and
Believe it
it
The state of men's nerves is
loans, on
return, al¬ illustrated by an incident between
though unchanged from 1940, Nelson and the head of his pro¬
was
higher than on securities. duction division, W. H. Harrison,
creased
nation.
declined
What will
much
nesses
recklessness in the Home Owners Loan and others—
operations, is the and now
they are moving in on
Baruch, who him to
get
the
Export-Import
ities sold were slightly smaller,
frequently sits in on Donald Nel¬ Bank
away and give it to Henry
and charge-offs on loans were son's
"cabinet" meetings — those
Wallace.
somewhat larger.
he has twice a week with the
The
average
ratio of total seven division heads under him—
current
These
are
earnings
to
total is becoming more and more con¬
days of free and
assets, which had declined for a vinced and is so advising, that we frank publicity even if there is
number of years, remained un¬ will have to come to ceilings all little light on anvthing.
Harassed
changed from 1940, at 3.3%. A around—price ceilings, ceilings on business men will probably enjoy
further reduction in the aver¬ profits, ceilings on wages, ceilings reading
the - wave of magazine
about Washington secre¬
age rate of return on securities on farm earnings—a rigid state of stories
was counterbalanced by an in¬
affairs all around.
taries.
Particularly should they
coveries
17 Eastern States in which
summer
capital funds in 1941 than in
earnings
1940, but their net profits were
only slightly larger, as net re¬
was
a
District
in the
done.
'
if granted, would be effective
the
ratios of net current
to
It
the
had
banks
tion.
in
announcement
heavy
instead of tankers. Mr. Henderson
up,
derived
income
loans to total assets.
took the request under considera¬
crease
Something else will have to
be
to
Com¬
is also expressing have automobiles and radios al¬
agitation for younger though we are to be denied them.
aries and taxes.
The lowest and more daring men to direct
A. former cabinet member, now
ratios of net current earnings our forces.
If good and experi¬ on the
Supreme Court, has told
and net profits to capital funds enced judgment were ever need¬
this writer that he knows for a
were reported
by banks with ed in this country it would seem fact that when there was the first
deposits of less than $500,000 to be needed now*
discussion
of
building synthetic
increase
to
cover
the
higher
transportation costs resulting from
greater use of railroad tank cars
0.8
amount of
concerning
made public by Allan
Sproul, President of the bank,
goes on to explain:
Total
expenses
absorbed a
smaller part of total earnings
owing chiefly to a reduction in
the amount of interest paid on
time deposits, which was only
partially offset by an increase
in the
amounts paid for sal¬
price
a
the
The
Petroleum
of
chiefly
says, was
smaller percentage
the figures
Administration,
of the
approval
a
from loans.
asked by a committee
was
off.
of; Tosses
and
depreciation
of
assets, together, with an increase Then
Henderson, Director of the
Office
.053
.03%
the result of
recommended
by-the
sending of parade troops
proper has
staved it
London
to
was
Truman
mittee
the
following
day
to
explain the rubber situation. Inas¬
that
Industry War Council, an advis¬
group .of oil industry exec¬
utives
with
official
standing.
control
were
$.04
,
Not
the
considerable
ory
However,-oil
men contend that
effect would still be to-limit
4
the
even
he
Ireland.
it off.
before
appear
profits, the bank
a
major oil com¬
panies, effective as of March 2,
lowering the quotation for this
grade oil to $1.55 a barrel, except
at Sabine, where the new posting
is $1.60 a barrel.. The reduction,
posted to meet competition, was a
direct result of the rapidly in¬
creasing inventories on the Gulf
out the nation
7 plus—
before
<
Northern
them that Leon Henderson
tion
of
fornia
from either
1.70
;
Terminal
or
to
of
Figures being assigned
correspondents and tell
call
to
persons
Office
and
One of the most annoying things
1940, accord¬ these officials have had to con¬
ing to the New York Reserve tend with, to express it mildly,
Bank's annual compilation, issued is the
widely accepted solution of
March 6. The improvement in net the war contained in a book
by
under which the ' Cali¬
plan operates, this means Coast.
that not only will the owners of
Higher retail prices for motor
such wells
be
prohibited from fuel, kerosene and fuel oil in the
producing any gas or oil from East plus night and Sunday clos¬
them, but that transporters and ings of service stations through¬
dation,
troops
But this hasn't staved
Facts
MacLeish's
to 5.5% from 4.3% in
Gulf ports by
all
parliamentary ; crisis
a
enterprise of 75
Archie
Reserve District increased in 1941
Seaboard, in the Southwest light
Diesel
.85
effort to stave off
an
in
country for a victory, is
On the question of Henderson
causing some concern in high
Ratio Of Bank Profits
military circles. It can very eas¬ being more pessimistic of the fu¬
To Capital Funds Up ily push them into some
ture
than
Jones—he
said
the
costly,
United Nations would be 400,000
The average percentage of net possibly disastrous
action, against
profits to capital funds for mem¬ their better judgment. Then the tons short in 1943, that the Gov¬
ber banks in the Second Federal clamor would become intensified. ernment might have to requisi¬
price structure.
West Coast—to
In
power.
in
gasoline, and
specific request of the in¬
production committee for
stop the pro¬
duction of oil or gas from wells
the
1.35
"
Tulsa
in the midcontinent this has pro¬
dustry
1.30
■„
___
O. B. Refinery
N. Y. '(Bayonne)
Chicago, 28,30 D
submarine
up
Roosevelt to do everything within
his power to keep Churchill in
Terminal
or
———-ii--.
—
output, on an
actual daily allowable basis, was
not be
.04
t
New Orleans
quotations dropped Accent a Tulsa
gallon on March 6, on top of a
Fuel Oil, F. O. B. Refinery
decline of Vt-cent a gallon earlier
N. Y. (Harbor) Bunker C.__
prior to which the price had held
Diesel__________
steady
since
April
25,
1941. Savannah, Bunker C_
Under the new schedule, regular Philadelphia, Bunker C
Gulf Coast
grade gasoline is posted at 5% to Halifax57/s cents a gallon.
The sharp
•
fected moved to revise their pro¬
duction
allowables
immediately
of Churchill. He would
against the proposition
of getting America int® the war,
"Washington fully expects Mr.
vantage
sent
(Bayonne)
•
,
Car,
Refinery
Philadelphia
the
.088
•
.06-.06%
Kerosene,
the
in
gasoline
-.088
.;088
"
Cities—
•Super,
:
tank
or
From Washington
(Continued from First Page)
:
Oklahoma
Rising stocks forced another re¬
in
regular
for
Chicago
0.95
1.12
1.23
Texas.
Creek, Wyo._——
•
Octane),, Tank
♦Shell Eastern
Other
County,
duction
65
in
capital accounts remained relatively unchanged. •
-
gallon
a
Tide Water Oil_
•.
;,,
TexaS'V—~——-—-~l—---i-' "
1.29
Signal Hill, 30.9 and over..
V;,
(Above
prices
cent
Secoriy-Vac
and
37.9
;
Lance
New York—
1.25
over
Va
gallon
;a
,
above
Pecos
Gasoline
gasoline
cut
were
5 7/«- cents
to
sistent growth of deposits while
'
0.83
1.20
Smackover, Heavy
Rodessa, Ark., 40 and above
East Texas, Texas," 40 and
pro¬
as
5%
1.37 ; grade,
.r« *''
6—Wholesale
midcontinent
to
Mid-Contin't, Okla., 40 and
Kettleman
lubricants";^:-
March
the
—1.22
Illinois Basin
oil
fields
they are used in mak¬
ing aviation gasoline.
'
Price changes follbw:
*
$2.75
; 1.31
supply
the downward tendency of pre¬
vious years, reflecting the per¬
extent that
,
Mr.
regulatory
"■
'
Bradford, Pa;
Corning, Pa.
unobstructed
demand,"
Ickes - wired .the- petroleum
*
and materials vto the
unusual
press
proportion of idle funds in
(cash assets), remained
approximately the same as in
the
preceding
year
for
all
banks,
although
if declined
somewhat for New York City
banks.
penses
The ratio
of
total
ex¬
to total assets which had
T.
& T.
Harrison
at
a
conference sought to explain
that the most difficult part of the
be interested in the invariable de¬
scription
of
their
importance,
great ability to keep the
man
from seeing their
their
business
boss, of sending him away with
soft-spoken words of how the
boss is just working himself to
President's
death.
was
this
goal
production
program
shipping.
The
800,000-ton
was proving to be,
at this
stage, the most difficult of attainhe said, Nelson promptly he
lment,
It
is
interesting
to
have
experience and then run into
the big shot out at night partying,
or to see the alacrity with which
goes
around making speeches.
-
1062
Thursday, March 12, 1942
has
since 1939.
Less Now Than In 1918
In
wo¬
many
as
employed in war in¬
dustries at the height of World
War 1 than are now working in
men
a
of
industries, it was revealed
study made by the Division
Industrial
Conference
of the
slightly
workers
Only 500,000
than 5,000,000
more
in
engaged
now
The
of
Economics
Board.
war
plants are women. This compares
With 2,250,000 women so engaged
out of a total force of 9,000,000 in
the closing months of World War
Board
Conference
which further reports:
1,
The
says
Official
estimates
that
are
15,000,000 workers will be em¬
ployed on war materials by the
end of this year, thus trebling
present war employment.
If
World War 1 ratios prevail, it
•
•
would
that the number of
mean
•
in
women
•;
This would
jump to 3,500,000.
be
than
more
will
industries
war
times
seven
to
will
be
Churchill,
as
sion
if
Minister
employed in
industry and in the services and
forces by the end of 1941 as
were employed in mid-1918.
Although the number of wo¬
many women were
were
those
in
according
„
who
men
mained
many
as
employed on
now
are
To
November, 1941.
of women into
entrance
The
labor force
the
;
order
extended
was
from 32 to 40 years
a
war-production
15,000,000 would re¬
quire the services of an additional two million persons who
ment.
•'
do
employ-
not seek
of
Most
added
these,
workers will naturally
be women.
have to
5,700,000
women between the ages
of 14
and
44
could
conceivably be
Actually,
?
about
could
and
factories.
to
these,
be
left
war
from
who
years
old and who
are
20
to
Besides
1,300,000
drawn
school¬
women
the
from
un¬
reputation
'patriotism.
•
restocking.
advices also
and
Rubber
Co.
in
its
the ideals of freedom when the
attack
experimentation
cultivation
with
California
the
and
of
at
guayule
other
in
employed in the light and
heavy clothing industries and in
This
and facilities for "not to exceed
transferred
The
Forest
Bureau
Service
Department
Save
fight
for
President
17
because
restricted
shrub
the
Feb.
on
had
House
to
the
United
This
a
are
sent off to
reserve
war.
rubber
However, most of these wo¬
men
are
untrained; and in the
>
in
the
Western
NAM
So
men
'
/.
.
■■
,
is
nec¬
tional
turers
•
.
industries
has
not
location
lation to the
areas
been
in
re¬
in which the
demand for their services will
,
be most concentrated.
The Board notes that after World
War 1 ended, many of the special
wartime
workers
continued
in
factory jobs.
war
In fact, it says, the
had proved that women were
especially
electrical
efficient
in
producing
machinery, leather,
op¬
tical goods, and scientific and pro¬
fessional instruments.
The Board
adds:
Thus
,
the
number
of
women
employed in all manufacturing
steadily increased, not only in
absolute
amounts
but
also
in
proportion to the total number
employed.
Whereas
women
comprised only 20% of all fac¬
tory workers in the period from
1909
to
1914, they comprised
21.7% in 1929, and 25.4% in
1939.
According
to
the
last
Census, 1,650,000 women were
employed in manufacturing in
1914; 2,229,000 in 1919, 2,237,000
in 1929, and 2,644,000 in 1939.
Nevertheless, the number of
women
employed
essential
about
of
a
to
low
World
major
the
as
War
in industries
war
at the
1.
In
effort
is
beginning
nineteen
industries in 1914, an
average of 65 women per thou¬
war
sand and wage earners was em¬
ployed. In 18 basic defense in¬
dustries
73
in
women
1939, an average of
per thousand workers
as
essary.
eries
fortHe
production
of
enemy
nation
from
and
now
troopers afterwards
believe that na¬
behind the
man
our
to
it.
meet
to
the
essential
technical
investi¬
gations relating to the produc¬
tion of crops of guayule and the
rubber-producing possibilities of
other
shrubs.
It
has
studied
guayule and its rubber produc¬
ing possibilities for many years,
is prepared to continue re¬
search on the plant as well as
and
on
the possible use of other rub¬
ber-bearing plants in the West¬
ern
Hemisphere,
as provided in
(S. 2282).
Secretary Wickard states:
the act
It is recognized that the
pro¬
ject authorized by the legisla¬
tion just enacted, is not in it¬
self
an
immediate
solution
of
the
Nation's
rubber
supply
problem.
The law limits field
plantings of guayule to 75,000
acres, which is about all that
can
be
accomplished
by
the
and Sugar
The
charter
a
name
was
Exchange, Inc.
•
of the Ex¬
change, as cited iii the "charter," are: "To provide, regulate
and
"purposes"
maintain
ing,
room
purchase
and
suitable builds
a
or
rooms
of
sale
and
other
for the
coffees
similar
grocery ar-r
ticles in the city of New York*
.
adjust controversies between
its
alley of
members, to inculcate
establish
and
equitable
principles in the trade, to es¬
tablish and maintain uniformity
in
its
rules, regulations and
usages, to
adopt standards of
classification, to acquire, pre¬
short
Association
on
Mar. 9
of
manufacturer to rise to
test
preme
of
the
industrial
just
disseminate
and
serve
and
and valuable business
useful
informal
tion, and generally to promote
It will meet this
ship,
President's
in
sober
to
we
and
government
pended in 1941
have "10 months
or
funds
terms of its
ex¬
alive
needs, according to
of the industry released
survey
war
and Steel
steel
Institutej which further
this
see
is the supreme test
nation—a
test
no
Manufacturers
that
of the
:
re¬
industry's capacity planned
or
improvement of
their plants this year.
rr
•
anything for war must
NOW, or neither plant
country will survive.
convert
I
know
the
hindrances
and
drawbacks, but in war all
must
Whatever' the
be
hurdled.
handicaps, let it
and since the
in
new
•
•
sugar
handling of over
sible.
is
will
not
be
pos¬
However, the Exchange
laying
when
is
likely, that normal mar¬
the
plans
for
skies
will
the
time
brighten,
keeping the machinery well
oiled, free from rust, ready to
begin operating with a mini¬
mum
of delay to help cushion
post-war shock. Just as the
takes its strength from
the
valiant
men
of
Valley
the
nation
>' Forge, we now renew our faith
from the record of the pioneers
steel
of
"
the
Exchange
it 60 years
ago.>
who founded
-
\
1941 Cotton Loans
The
Department of Agriculture
beginning of 1939, reported on Mar. 5 that Commod¬
capacity has been ity Credit Corporation had made
nearly 7,000,000
tons
to
the 1,104,122 loans on 2,122,020 bales
present total of approximately of 1941 crop cotton through Feb.
88,500,000 tons.
Total capacity 28, 1942.
A total of 139,326 loans
at the beginning of 1929 was ap¬
were
repaid
on
294,280 bales,
proximately 71,500,000 tons.
This additional capacity, built leaving outstanding 964,796 loans
while the nation was at peace, .on 1,827,740 bales.
' V
*
the increase in
make
obstacles
investment
000.
From 1929 to 1939, the in¬
dustry increased its capacity by
over 10,000,000 net tons of ingots
daily output in constant oper¬
ation. -Every
plant that can
the
The
plants and equipment from 1935
through 1942 totals $2,207,000,-
coffee and
to
activities
ket
still
expansion
Every vestige of business in
the ordinary sense must fade
before this demand.
Every ma¬
chine must make its maximum
nor
pears
the
sponded in this crisis, but the
purpose of my appeal, as your
President, is to say that it is
not enough.
but
2,000,000,000 pounds of coffee
and over 15,000,000,000 pounds
of
sugar,
consumed
in
the
United States each year.
For
the duration of the war, it ap¬
Of 176 steel companies re¬
plying to the questionnarie, 134
representing more than 90% of
• :
have
for
American
to facilitate the
consideration.
American
expected to face.;
ever
c
to
us
Plans
>
larger additional expenditures
by the Government are under
hard-headed
before
facilities.
under
the
charter, have beeni
not only to
benefits
producing coun¬
tries, especially in this hemi¬
sphere. The 60-year period has
encompassed all sorts of times—
booms, depressions and several
wars.
The Exchange has aimed
at
attaining a more perfect
score, especially in its function
March 4 by the American Iron
on
without -plant,
causes
with
trade
a
however:
operated
tinually
ex¬
was
allotted for
the
Let's not await another Pearl
realism
He added,
The three-score years during
which the Exchange has con-i
output for
from without,"
Harbor
in¬
and augment
anniversary in any way, W.
Pinney, President of the Ex¬
change, explaining that these are
not the times for elaborate cele¬
penditure in 1942 to increase steel
~
be
York,
The Exchange did not celebrate
Nearly $1,100,000,000 in private
appraisal
go," called for an end to all
one fight—against the enemy
rather
New
of
the
one;
$1.1 Billions in 1941-2
mes*
"but
"I'd
a
bration.
of War Production Chief Nelson's
warning that
city
its amount,
the facilities with which it may
be conducted.
and
New Steel Plants Cost
and
the association's member¬
written
has
trade
above-mentioned
the
in
W.
10 months.
sage to
management
the "su¬
nation"
the
crease
But American
every
"turn the tide of war" in the next
The N. A. M.
been set.
long history of accepting
meeting challenges.
>
Manufac¬
challenged
task
a
forest trees and some shrubs and private enterprise or"Wealth than shows:
to take my orders from Tokio,"
grasses and in making extensive
The outlay by steel companies
field plantations throughout a Mr. Witherow declared.
themselves for new equipment
The message in part said:
large part of the United States,
and construction last year was
"There was a world of mean¬
The Prairie States Forestry Pro¬
$295,000,000 and this year they
ing in Donald Nelson's warn¬
are planning further expansions
ject of the Forest Service, which
ing that we have '10 months to
has established 16,000 miles of
at a cost of $260,000,000.
go'-—that the war would be won
shelterbelts on 22,000 farms in
The Government in 1941 spent
:
or
lost in that time.
Because
the Prairie States since
1935,
$130,000,000 to install certain
my contacts in Washington this
has also involved many of the
new steel equipment wanted for
week have only served to emoperating problems which will
special war work, and for 1942
i phasize this warning as a most
be met in the guayule under¬
approximately
$414,000,000
in
sober appraisal, I address this
taking.
government funds has been al¬
appeal to our membership.
lotted for the development of
The Bureau of Plant Industry,
the Secretary added, is charged
with responsibility for making
and
changed to the New York Coffee
behind
Ten
Exchange
started and in 1916 the
the
turn
and
granted to incorporate as the
to
is down
Coffee
York
.
In indicating this, the De¬
significantly altered. Vocational partment stated:
training programs for those inThis action followed immedi¬
dustries in which the greatest
ate
passage
of the
so-called
demands will arise are scarcely
guayule rubber production act
in their initial stages.
A na¬
(S. 2282) by Congress and its
tional labor registry of all wo¬
signature by the President.
men appears necessary to deter¬
The assignment of the action
mine
the
occupational
skills
program for guayule production
both of women who are now
was given to the Forest Service,
seeking work and of those who
Secretary Wickard said, because
can be induced to do so. t The
of the wide experience of that
registry would ^lso have to de¬
bureau in the operation of nurs¬
termine
their
war
before
year.
Exchange of the City of
on June 2, 1885.
In
1914, trading in sugar futures was
tide, "to
shape the whole course of history for a thousand years, and
shape it to our way of life."
Never in history has so great
To Turn Tide of War
Exhorting all industry to rec¬
ognize "the spector of defeat" in
Wickard said, will be called upon war
communiques, William P.
for such additional technical in¬
Witherow, President of the Na¬
far, the proportion of wo¬
engaged in the essential formation and assistance
was ever
single
New York,
War
months
-
a
out¬
about
Coffee
production.
months
Urges Industry
than
New
Coffee
was
Production Chief,
Nelson, has laid down
the challenge to us.
It is no
easy one.
He has given us 10
.
more
The
Donald
Hemi¬
and for
investigating the
possibilities of other rubber-bear¬
industries basic to the current
ing shrubs, the Agriculture De¬
war
effort, fully three-fourths partment announced on Mar. 8.
of the jobs will have to be filled
Other bureaus of the U. S. Depart¬
by skilled or semi-skilled per- ment of Agriculture,
Secretary
sons.
■
sphere
This
was
record,
new
Sugar Exchange, Inc., on Mar. 7
observed
its
60th
anniversary.
Trading started in March, 1882,
under the name of the New York;
you
war
Our
In all, the country
lowing
of about 7,000,000
tary of Agriculture Wickard—are passed by the Senate on Feb. .19
women to draw on as war pro¬
proceeding with a program for and by the House on Feb. 28.
duction is expanded and men
government production of guayule
employed.
has
about 97%
despite strikes
of
scrap
and
Sugar
Exchange 60 Years Old
:
man
mass
moderni-i
N. Y. Coffee S
the gun.
Plant
a
25%
Fellow-manufacturer, you are
(see issue of Feb. 26, page 847).
Industry—fol¬ A new bill extending the planting
instructions from Secre¬ to the Western Hemisphere was
of
like
enemy.
States
result
as a
and
materials.
raw
put,
.
the
and
the
what
the
industry,
capacity,
shortages
other
Complacency born of wealth
a
peace-minded people is
today
our
greatest
single
of
its
and
and
the
planting
of
tion should be!
guayule rubber pro¬
act was vetoed
by the
duction
is the time for but one
without.
first
The
To¬
assailed
are
fight—against the
of
An agreement has
been reached for purchase of
these properties at a cost of
$1,721,235.
tries.
Launch Guayule Rubber
Production Project
act
$2,000,000."
were
indus¬
essential
to
the
The
within.
ideals
from without.
Agriculture to acquire this com¬
pany's seed supplies, processes
Southwest.
from
was
those
day
points
authorizes
woolen and worsted mills
group
Mexico
wo¬
age group
I'd rather'be with.-
production of guayule for many
years from the wild shrub in
employed
Similarly,
same
energy, plant production
taxes now as to lose all
No
preventing
materials.
expansion
mgiht
we
in
war
well give our all in per¬
as
sonal
reserve
created,
proving of incal¬
value
produced in
Personally, I think
just
its
A
was
of steel last year, or
when
moment
developed by the Inter¬
25
now
T~zation program, was able to pro^
duce nearly 83,000,000 net tons
might prevail.
are
who
industry.
in this
the
is
eventually.
and
thus
is
The steel
of
experience* orderliness,
effi¬
ciency and managerial "knowhow"
can
prove
themselves
against/
whatever
confusion
are
food
are
This
manufacturers'
of
.
man¬
in
men
'dur;-$el|t^l0iife:the:
than
has fought more
vigorously than the manufac¬
turers for the preservation "of
work of all wo¬
are
transfer to
su-
jury of the people; let
the
verdict of anything
"less
natural
Department's
continental
capacity
shortages of
the
before
nakedness
out plant, private enterprise or
wealth than to take my orders
from Tokio.
old,
which
culable
not '
of
cesses
emergency arose.
>
because
Some day
The nucleus of the govern¬
ment's undertaking already ex¬
ists in the properties and pro¬
to women
war
preme
of
insure
to
not fully employed until the
>
their
state:
as many as
drawn from homes
rooms
area
where it grows are so
The
Supplementary orders have
been issued providing for the
of
normally
Big Bend
Commercial shipments
facilitated aged that only mature plants
taken
and
enough shrubs
was
registration of certain
age groups.
All women born in
the years from 1910 to 1921 were
required to register with the
Ministry of Labor last spring.
By December, 1941, this regis¬
tration was completed, and the
the
by
of
the efforts of
helplessness
4 was
'
10,000 tons annually, providing the
areas
in
aside
stood
or
this moment will be tried in all
according to officials
called upon by the
Secretary, is
a
slow-growing shrub native to
limestone slopes of north central
in retail distribution outside the
create
force
-
expan¬
needed.
Mexico and the
them
t them.
as
men
this work.
idle
high as in peacetime wild guayule rubber have been
until March, 1941, it dropped made from Mexico for
many years.
from 400,000 in September, 1939, Production of such wild
rubber,
to less than
100,000 by mid- however, is not expected to exceed
as
'
caused
Guayule,
unemployed re¬ Texas.
were
opportunity for
be said that management
never
.
is available at present, but once
the project is under way, there
...
England,
Prime
Fully four times
spring of 1943 with seed which
employed. This proportion
not
appreciably
changed
was
Women War Workers
Volume 155
1BA
Number 40S4
COMMERCIAL & FINANCIAL CHRONICLE
THE
:
Lehman*
Governor
The entire public relations or¬
ganization built up on a nation¬
requested
wide
orable consideration to
a
of
a
period of two
Investment Bank¬
over
the
Association
of
America
is
henceforth to devote its energy
ers
transfer
of
in
transactions
odd-lot
committee
Trade.
relations.
key
The
-
located
men
public
organization
of
in every import
country is being
action, the an¬
tant
city of the
galvanized into
nouncement
said,
its
it
and
•■under;
no
itself
ex¬
17
geographical
association, which,
clude
It
ers.
this
also
was
of :the
in¬
group
in
turn,
other
innumerable
there
work¬
that
explained
and above the
move was over
part that the IB A is contributing
whole
desire
who
acerage
our
much
also want "to
IB A,
recently announced by
.the Treasury Department.
The statement of policy of the
as
association's
information:
public
was
in
Hotel
Blackstone
Chicago
letter
enclosed
ping
showing
on
of shares
5, one of the purposes of a
Mar.
month
that has brought the in¬
closed
program
vestment
here
bankers
from
part of the country.
It is
the first considerable
gathering
of investment bankers since the
outbreak of war and has attracted
every
'
'
geographical representa-
wide
a
cottonseed
where
Senator
bill
for
27
which
in
of
a
"there is abso¬
said
he
Congress
the
soybean
or
of certain groups
to
ther subsidy hand-outs
sections
of
our
for certain
population is one
morale,
Frederick
P
Champ, President of the Mortgage
public
making
In
announcement
the
that it
said
Fleek
.Mr.
had
been
; "proposed at a meeting of the
public information committee in
Chicago on Mar. 3, adopted by
the Board
of Governors at its
Pres. Roosevelt
Signs
Roosevelt
President
members of the Kansas
told
signed
America
of
Association
Bankers
on
in
at
Jan.
28—
Mar.
31—
Apr.
May
30
29
June
30
July
31—
Aug.
29
Kansas
W.
City.
type¬
having such ma¬
possession have
April 1 to return them.
meeting on Mar. 4, and broadcast
to all members of the association
Mar. 5 with confidence
on
country."
of the
ner
in every cor¬
be approved
would
that i
appropriation
history—providing $32,762,-
bill in
Laurence
the
on
Buying Over $9,000,000
V
food stamps added
$9,400,000 worth of
Blue
quote:
;
'
"
for vegetables, 15%
cereals, 14% for eggs, and
pork, 23%
12% for fruits.
blue
stamps,
estimated
the Agricul¬
Administration,
about
28,000,000
by
tural Marketing
i
n
eluded
pounds of Irish potatoes, 27,000,000 pounds of flour, 8,000,000 pounds of fresh apples, 10,-
-
'
250,000 pounds of
000
dozen
eggs,
pork, 3.565,and 2,800,000
pounds of butter.
Other
*
blue
stamp
the
in
measure
for
known
said, in part:
After midnight no new type¬
writer may be delivered to any
consignee without express per¬
Nov.
28—
Dec.
31
Jan.
31—
In¬
Feb.
27
of
the
of
Director
1942—
fect.
Typewriters
livered from
tributor
a
dealer
or
Used
to
another
de¬
or
dealer
one
to
from
be
may
dis¬
Federal
aid.
distributor.
typewriters
substantially
Price
subject
are
delivered
the
for
same
re¬
repair
or
turned after
leased
and
re¬
typewriters
be returned to the lessor.
may
the
of
order
to permit continuation
following two customary
the
inate
of
about
900,000 pounds of fresh
and 1,500,000 pounds of
oranges,
pears,
dried
prunes-
and
5,200,000
*
-
mean
Loan
elim¬
features
and
Act
gram.
with
tire
the
In
tions.
regula¬
rationing
the
at
case
he
issue,
taking
industry
meeting with
a
facturers
Feb.
on
OPA
The
3
manu¬
which
at
it
announcement
re¬
garding the decision further said:
Today's decision
in the
came
first civil action brought by the
Office
of
under
Administration
Price
its tire rationing
tions.
1841 the typewriter
held
gardless of the
ownership.
a
owner.
prevail re¬
technical fact of
paramount and must
The
regula¬
when
arose
case
Smith-Douglass Co., Inc. filed a
suit
the
in
Law
and
Norfolk
Chancery
Court
$1,427 worth
deliver
to
er,
of
compel
tire deal¬
to
the Joynes Tire Co., a
of
oats
to
grow
ban borrowers are
crops
urged
of Agriculture
farmers who
and barley as casn
substitute soybeans or
these
crops
wherever
for
flax
of
additional
step designed to
further increases in
domestic vegetable oil production
to
supply expanded war needs,
and replace supplies formerly im¬
an
bring
former
new
out, where these
needed as nurse crops
and legume seed-
grass
ings.
Because
increased
of
curtailed
reliance
Nations upon
of
those- farmers
2
eral
j
-•
-
of
and
Credit
refinance
to
Administration
United
production
our
oils, and increased do¬
demands, it is imperative
the production of oil crops
be increased as much
About
ported
one-half
of
vegetable
as
the
oil
possible.
total
im¬
supplies
of
the U. S. normally come from the
East.
The
war
cut off this source.
has virtually
Higher On Feb. 27
not in the Fed¬
System who
Bank
Land
,
have taken advantage of Section 75 of the Bankruptcy Act.
In doing this refinancing, the
Farm Credit Administration is
authorized,
without limit, to
purchase
for
him-
buildings,
any
individual
land and pro¬
with
satisfactory
apparently
him the full amount
scale-down
The
anounced
short
close
legislation does not
March
on
interest
7
existing
business
of
settlement
of the
the Feb.
on
date,
the
that
as
Stock
Exchange
27
compiled
as
from information obtained by
223
its
from
the
mem¬
re-
firms, was 489,compared with 460,-
shares,
577 shares
Jan.
30, both totals
excluding short positions carried
on
in the odd-lot accounts of all odd-
As of the Feb. 27 set¬
lot dealers.
tlement
date, the total short in¬
in
terest
all
odd-lot
76.596
counts
was
pared
with
dealers'
shares,
85,717
ac¬
com¬
shares,
on
Jan. 30.
The
Exchange's
announcement
further said:
Of
lending
of the cost.
of debt may
contribute to the demoralization
of the farm credit structure.
The
The New York Stock Exchange
bers and member
association.
It authorizes the Farm
;
imports,
the
to be re¬
regardless of the
ticular farm loan
!
-
is
financial soundness of any par¬
cash crops and does not apply,
are
borrowers
funded at par
The
pointed
ex¬
of the Government.
It
provides that three-fifths of the
stock owned by borrowers and
ported.
is
borrowers' debts at the
pense
about
suggestion to
substitute
these oil crops applies to areas
where oats and barley are grown
NYSE Short Interest
passenger
the
issues
on
in
Feb.
in
on
the
Exchange
27, there were 21 issues
which
more
or
1,234 individual stock
listed
than
a
short
interest
OPA
the
to
car
not
was
Chancery
truck
made
a
Court
party
action
and, in' order to prevent any
possibility that the tire might
be
leased, applied for and ob¬
tained
a
in
order
temporary restraining
the Federal District
Court.
Smith-Douglass Co. answered
the
complaint and filed a mo¬
the validity of
regulations and
seeking to have the temporary
restraining order dissolved and
tion challenging
the
the
rationing
dismissed.
action
In
a
countermove, Talbot Smith,
chief of the civil litigation unit
of
the
Enforcement
Section
of
moved for
and obtained a judgment on the
pleadings granting a permanent
injunction against the transfer
OPA's legal division,
of
the
ciated
and tubes.
tires
with
Mr.
Government's
of
5,000 shares existed,
which a change in the
and
of tires without eligi¬
transfers
paying.
The bill invites a scale-down
possible. This the Department says
Far
of
citizens
all
bility certificates issued by OPA
local rationing boards.
7
vide
in areas not
Food Stamp pro-
the
produced 736,000 standard models
and 530,000 portables.
The WPB
had
that
gardless of the cost to the Gov¬
ernment.
It is lower than ur¬
March
that
families
to the
In
importance
in
the war is such
should
comply
paramount
prosecution
tires
alleged to have been purchased
last August.
All tire deliveries
were
"frozen" by the Govern¬
ment on Dec. 11,
and, subse¬
quently, rationing regulations
were put into effect prohibiting
farmer additional
served by the
>
enter¬
private
mestic
needy
of
purpose
trans¬
for
person
which, if
virtual
1941
fats
*
specific
any
completion of the examination,
the typewriter must be returned
to purchases of
commodities with blue stamps,
AMA continued in December to
distribute farm products for use
in free school lunches and to
addition
typewriters
to
Civil Service examination. Upon
grapefruit.
In
Used
ferred
Farm
cooperative
Farm
loaned to
typewriters
own
undergoing repairs.
2.
ur¬
the hands was suggested that, in order to
of one man, the Governor of the convert their facilities to produc¬
Farm Credit Administration, a ing
war
materials, they curtail
Presidential appointee.
production during the next three
months by 20 to 25% and to pre¬
It provides that the interest
rate will remain at 3V2%
for pare for ultimate cuts of 40% in
the standard type of machine and
another five years and this sub¬
80 % in the portable type.
sidy will remain in effect re¬
The Department
for
the
the
whose
persons
are
Judge Way stated that the
gent public need for rubber and
added, the public need for tires is
writers:
lending decisions in
Urge Flax, Soybean Crops
it
involving used type¬
better
would, in effect, place all farm
turned out
the Army to be sent as lend-
as
transactions
of
and
tires
tubes without OPA authorization.
its
On March 7 the WPB modified
delivery
truck
and
passenger
Hen¬
Leon
permanent in-
a
j junction restraining
re¬
they have been
paired,
Luther
Judge
Administrator
derson and issued
strictions, except that they may
be
District
Way at Norfolk, Va., on March
6, upheld the validity of the tire
rationing regulations
issued by
to
and
This legislation would
p
In
of the equipment to be
on
by'
prise from the farm loan field,
addition, the measure contains a
clause permitting up to one-half
for
of
elimination
the
for direct lend-lease
the
-
.
B.
not
but
manufacturer
Fulmer
Bankhead
as
■
460,577
489,223
Tire Rationing Upheld
the order takes ef¬
at the time
hear¬
Senate Bill No. 1797
Credit. Act of
passed,
would
Army, $3,852,000,000 for a ship¬
building program and $5,425,000,000
on
Senator
was
$23,000,000,000
nearly
purchases grains
the
month
included
2.180.000
dozen
fresh
during
•'
Included
is
with
Purchases
'
as
to Sen¬
(see issue of March
lease aid to other countries.
During January, families takling part in the Food Stamp program used blue stamos, which
increased their expenditures for
agricultural
commodities
ap¬
proximately 50%, as follows:
about 12% for butter, 24% for
for
ings
5, page 946). The House had pre¬
more viously voted the funds on Fab. 17.
farm
products during January to the
diets of more than 3,500,000 per¬
sons eligible to receive public as¬
sistance, the Department of Agr¬
iculture said on March 6 in its
monthly
report on the
Food
Stamp program.
From the De'partments announcement we also
.than
the House agreed
and
it
ate additions
Currency
and
Banking
the
of
Committee has just begun
-
31
1. Used typewriters
Senate
March 2 when the Senate adopted
Jan. Blue Food Stamps
Champ
Mr.
sub-committee
The
on
came
measure
presided.
478,859
487,169
470,002
486,912
444,745
453,244
349,154
—
30—
said:
aid.
of Congressional
completion
action
lend-lease
and
Commission
The
Army,. Maritime
the
for
737,900
Smith, President of the local asso¬
ciation,
510,969
496,892
—
—
-
Sept.
•
■
March 5 the largest
498,427
487,151
537,613
31--
Feb.
Oct.
City
Mortgage Dealers Association on
March 6 at a meeting of the group
$32 Billion War Bil
;
effective
order,
-
1941—
Operations
unless the
typewriter is actually in transit
and which will mean fur¬
war
530,442
515,548
459,129
-
dustry
of the most harmful influences in
tion.
,
peanut
continue seeking
legislation which has not the re¬
motest connection with winning
better."
any
4
would
The tendency
in
months will be
next six
that the
possible, except
interfere with
as
—
—.C
The WPB's announcement March
Demoralize Farm Credit
show
to
in view
nothing
lutely
sales
and used type¬
their
mission
years
copy
until
much
as
Says Proposed Bill May
and also en¬
letter sent to
Coudert, a sponsor of the
revising the transfer tax
in
a
March
that
oil
this
liable
increases.
the lowest for that
were
av:
contemplated
clip¬
newspaper
a
make
to
in
479,243
474,033
517,713
-
31
new
those
chines
446,957
....
29
is the renting of
order
writers;
Mr.
Lehman,
Governor
to
Pask
part
plant their full allotments in or¬
an
Aug. 30Sept. 30
Dec.
530,594
428,132
—.
U
31
the
requires
(5) A plea to cotton growers to
der
28
midnight, is to be followed by a
rationing
program
soon
to
be
worked out by the Office of Price
Administration.
Also affected by
a
488,815
31
Nov.
The
writers.
of the program
to erosion-resisting crops.
year
appreciation of the place
of
free American
enterprise in
our
business structure."
In his
made at a dinner
meeting of
the Central States
Group of the Association, at the
program
land
May
March 6 all sales and
on
for the last
>•
29
Oct.
for
mum
ing of democracy in government,
and
"froze"
last business
28
Apr.
Board
Production
War
cooperators devote a mini¬
of 25% of their farm's crop¬
that
want
the
of
is
interest existing
short
each month
June
deliveries of
peanut growing areas,
the soil building program
;
people
In
requirement.
available dollar of
Typewriter Rental, Sale
Frozen By War Board
erosion-
half of the
acreage
most of the
"a
new
system
of government, and believe that
investment
securities
business— financial chaos is the best method
promote ;a national socialist
the National Association of Se¬ to
curities Dealers, the Association government, Mr. Pask expresses
doubt that such people are real
of
Stock
Exchange Firms, the
New York Stock Exchange and Americans with true understand¬
cooperative . efforts of all
the associations representing the
one
resisting
wipe out Wall Street and every
firm
engaged in the securities
business."
Declaring that these
the
to
as
tabulation
following
1940—
effort.
The
compared
1942.
Jan. 30,
July .31_._-
devoted to peanuts
now
447
was
close
Mar.
public money should go to the
war
ex¬
on
two years:
today and further¬
every
more
for oil—may qualify for as
grown
structure
markets
capital
to be socialized" and
the
the
at
subsidizing
additional
re¬
position,
with 433
In
sort
of this
be used to meet
building crops.
(4) A revision in the AAA pro¬
gram
providing
that
approved
cover
crops—seeded next fall on
the
to
and land
requirement that 20% of the
farm's cropland be devoted to soil
"unfortunately,
some
are
letter
his
in
or
need
not
small
peas
crops
the
business, but it would be a step
in the right direction."
Mr. Pask
that
which may
uses
the
securities
the
stimulate
,
flax,
grain to the list of
modification of this tax would of
plained "that these men;:are: the: points out
.leaders of working units in each Governor
:of
.that
delusions
with
seeded
was
of Feb. 27, 1942,
as
day for
to add grasses and legumes
in-
issues
clusive of odd-lot dealer's short
sentials, is a further subsidy for
farm
borrowers.
Farmers
do
for
program
of
interest
short
shown the
gram
Pask says that he is
<
ported
wealth and man¬
in Congress continue to
groups
number
a
(3) A revision in the AAA pro¬
tion and chairman of the national
directing
The
agitate
for
this
legislation
which, stripped to its barest es¬
loan
peanuts and flax.
Marshall W.
Pask, Chairman of the Securities,
Commodities and Banking
Sec¬
tion of the New York Board of
Mr.
which
na¬
soybeans,
and
letter
a
the
all
ought to be devoted to
one
thing and one thing alone
—winning the war — certain
(2) A price supporting purchase
on
month.
power
obtaining soybeans and peanuts
in
fam
^ap¬
subsid^
when
time
a
tion's energies,
for seed.
tax, and particularly the
addressed to him by
At
(1) A program to assist farmers
stock
the
in
increase this
pears,
y
clude:
subsidy
mortgage field but will,
to
program
a
greater vegetable oil
production.
These measures in¬
revision
elimination of double taxation
to
furthering the sale of Defense
Bonds, it was announced in Chi¬
cago by John S. Fleek of Cleve¬
land, President of the Associa¬
schedules
the
was
tinued
barley follows
in
measures
short position of more than 2,000 shares occurred during the
lieve the Government from con*
substitute soy¬
to
encourage
again
the
basis
other
Mar. 5 to give fav¬
on
request
beans for oats and
Stock Transfer Tax
To Push Defense Bonds
yearsby
The
Urge Revision of N Y
Publicity Group
1063
Bradford,
Smith
side
was
Assistant
States Attorney at
Asso¬
on
the
Russell
United
Norfolk.
THE COMMERCIAL & FINANCIAL CHRONICLE
1064
Thursday* March 12, 1942
Strikes In War Plants
II. S., Braiil Sip
Urges Management,
Labor To Speed Arms
Up 77% In Feb-NAM I Lead-Lease Compacts
Donald M.
In
view
the
of
increasing bur¬
den of taxes and in order to
William Penn Bank of Com¬
the
con¬
tinue to maintain
changed its name to
Pa.,
burgh,
Alexander Murdoch, Pres¬
merce.
the
March
2
called
labor
and
Nelson, Chairman of
Production
War
to
on
stop
Board,
on
management
blaming
each
production of
a strong capital
other for lack of
Board of Directors ident of the institution, is report¬
arms and to do everything within
Company at its ed as stating that the institution
their power to surpass the peak
meeting on March 3 reduced the had given up its trust powers
'dividend for the quarter ending which were in its original charter production of the "slaves of Ger¬
The many and the slaves of Japan."
March 31, 1942, to 35 cents per but which never were used.
position,
the
Bankers Trust
of
share,
after
dividend 4s
the
-stockholders
The
April .1
payable
to
March
12.
record
of
address
Nelson
"greatest
the
to
warned
production
nation,
that
job
the
in
his¬
capital
bank also has been
quarterly dividend
cents per share.
50
was
radio
a
structure of the
changed. A tory" must be accomplished in
total of $150,000 of 4% cumu¬ 1942, adding that "we have but
The
previous
:rate
In
Mr.
learned, said:
this is
which
from
"Post-Gazette,"
Pittsburgh
to a statement
meeting.
The
according
issued
preferred ten months to go—304 days—in
which to strengthen our striking
$50 par value has been
sold to the public and the pre¬ power to a point where victory
ferred stock held by the RFC can come within our grasp."
In order to achieve the produc¬
has been retired. The par value
convertible
lative
stock of
•
.
Chairman of
the Board of Irving Trust Com¬
pany of New York, announced on
Harry
March
the
to
4
President
company
hontas
ably
ferred.
Enka
Corp.,
a
for
field, W. Va., and a Director of
Holland House Corporation of
the
Netherlands.
and
The
basis
Carl
of
Hoff-
O.
hours
value
par
of
War
Production
Board
chief called for the establishment
shares of
common
Murdoch
Mr.
is quoted
and
say¬
as
vealed
increased
have
few
materially during
past year,
and "it is one of
reporting an in¬
crease in savings accounts despite
the heavy sale of defense bonds."
banks
man,
in which
all
we
can
take
a
of
the
of
one
Gem
and
founders
owners
Corp.
Safety Razor
He
specializes in corporate and bank¬
ing law practice and holds direc¬
4
.
the
.«
proceedings
& Trust Co. of New
at
95-38
York, located
Boulevard,, on
Queens
March 3.
Over 200
"Strikes
of
the
j vermacher, President of the
■
v
sons
were
among
■
/
checks for
;
i
of
his
home
in
March 1.
;
:
He
Mr.
served
Dean
Wellesley
and
.
for
17
Eye
and
AFL i locals,
CIO
and
In-
He was a Director of the
New England Mutual Life Insur¬
ance Co. and the Brookline Trust
of
;
:
*
and
the
a
Trustee
and
member
Finance Committee
Brookline
Savings
Bank.
r
i said:
Soon
i:
after,
his
graduation
'
from Harvard University in the
class
S";
1897,
he
entered
the
4
.•
.
/'V'
and
of
January
for
value
1941.
the
be
;
assets
and
handled
or
each
would
bid
as
it is
has
been
separately
filed.
-,7{;
Considerable
interest
maintained in the assets by reason
of two large blocks of stock con¬
sales, excluding right and war¬
sales, was 27,189,195 shares,
a
decrease of 56.2% from De¬
rant
cember. Total
principal amount
of
for January was
sales
bond
of 7.6%
exchanges
accounted for 94.3% of the mar¬
ket value of total sales, 93.1%
of the market value of stock
office of Vermilye & tained among the assets.
These
Co., New York Bankers, and in blocks are
approximately 67,000
1905
became
manager
of the
shares of Davison Chemical Corp.
Boston
office
of
William
& Co.
became
A few years later
a
partner
the
in
which
is listed
Stock
Exchange,
on
the New York
selling
around
firm, which became Dillon Read $10 per share, and approximately
& Co., and continued with them
45,000
shares
of
International
until .1924.
Mercantile
Penn«Trust, Company, of
Pitts¬
listed
on
Marine
common,
also
the Stock Exchange, and
selling around 9*4,*
$256,089,400,
The two New York
sales, and 99.4% of the market
value
*
■
«-
•'«
?
*
of bond
istered
The
.
Effective March 2, the William
if
sales
sales
on
all reg¬
securities exchanges.
market
value
of
total
exempted securities
exchanges
for
January
1942
on
amounted to
$277,317.
to
<
officials
of
and
Bank > of
Authority
Import
-
of the
arrangements
the
conference
of
;-Foreign ? Ministers
Janeiro
in
the
economic
there
adopted
in
and
resolu¬
January
for the
resources
mo¬
for the de¬
According
to
the
Associated
Press, the agreements provided
for:
A
:
f
"
not
"critical." Pro^
as
of such
credit
of $100,000,000
so
develop her natural
resources, including such warvital materials as iron, rubber,
magnesite and bauxite.
,.
Establishment of a $5,000,000
Rubber Reserve Co. to develop
raw
rubber production in the
Amazon
Valley and adjacent
regions;
Brazil
can
vital
basic
and
V
long
Victoria-Minas
Railway;
opening up of iron mines in the
Itabira region, where some of
the richest iron ore deposits in
the world are located, and im¬
provement of ore-loading facil¬
ities at the port of Victoria. The
Export-Import Bank agreed to
lend
Brazil
up
to $14,000,000
for this project.
Expanded lend-lease aid to
Brazil, :which signed a $100,000,000 > lend-lease
agreement
materials as
'-last fall.
Amount of the addi¬
bomber parts, anti-aircraft guns,
tional loan was not disclosed.
ships and ship parts, armor
British Ambassador Lord Hali¬
plate, machine tools and dies
fax was one of the signers of the
was delayed because of strikes,
iron ore development agreement.
the report revealed.
The loan will be paid out of iron
products
war
Various
or
reasons
were
offered
ore
sales made to the Metals Re¬
to
justify the strikes according
to
the newspaper reports but
among the more unusual was
by
"bad
used
Another
strike ' of
called
was
slapped
welders
160
out"
foreman
because
language."
10,000 men
because
worker
a
in
co-worker
a
a
the
plant.
Co.
serve
and
British
the
ernment. ;
:
Gov¬
,
Mr. Welles said that the agree¬
ments
were
answers
"one of
States to Hitlerism
declared
the concrete
of Brazil and the United
and the other
liberties
enemies of the
of Christian civ¬
of mankind itself."
of the Americas,
ilization
and
Ambassador
that
the
declared
Martins
pacts
shining
a
were
Name Price Control Court light marking the already bright
three-member
A
Court
of
Emergency
Appeals to review pro¬
Price Con¬
tests arising under the
trol Act
2
U.
designated on March
by Chief Justice Stone of the
S.
was
Supreme
Vinson,
States
the
Court.
Associate
United
serve
all
ore,
fense of the Western Hemisphere.
three
January
$212,685, involving 1,169,888 units.
The SEC further reported:
parts of
V ; The volume of January stock
de
tions
independent
pointed out
all, of the
defense plants could
at
-
at
implement
non-
and
locals
described
duction
of
on
Rio
total
a decrease
from December.
he
♦.
sales
market
the
persons
A.
■
from
Read
;
strikes
a
Boston
V
•
of
...
value
at
Association
majority,
iron
-
and
Loan
bases
laid
American
Four strikes in¬
involved
The
be
Minister
Export
The
unions.
accept bids
The
foregoing is taken, also
■ V;-
CIO
bids be asked. He said he would
of the
Boston "Herald" of March 2, from
which the
volved
a
"
'
.
Federal
were-
in¬
were
strikes
27
plants.
others
resources,
and
Rehabilitation of the 365-mile
defense
Feb., 28
from
December.
January
bond
argued that the assets would
sales were valued
at $125,744,bring a higher price if sold in
306, a decrease of 6.7% from the
sections.
December
market
value.
The
Following the session, Mr.
market value of right and war¬
Hospelhorn asserted he would
rant
sales
for
January totaled
not request
that more sealed
years,
of the
firmary.
Co.,
far.
ers
'
-
the
of
natural
Washington.
volved, the Association said, in
20
■
the
indepen¬
local. unions
"walked
market
the
dent unions.
AFL
new
the extension of credit up
Finance
The
locals.
involved
a
Among those signing the accords
were
Acting Secretary of State
Sumner
Welles,
Ambassador
Carlos
Martins
of
Brazil,
Dr.
Arthur de Souza Costa, Brazilian
between
CIO
44 involved
22;. AFL
remainder
47%
of
disputes
and
cover
The pacts were concluded after
several
weeks
of
negotiation.
Majority of the strikes in de¬
plants involved CIO lo¬
cals. Six strikes were jurisdic¬
tional
were
March
on
$100,000,000 for financing dollar
expenditures in connection with
Brazil's productive resources pro¬
fense
advanced
the
and
engine bomber planes, or 2,000
that
that
for
dive bombers.
hand
r
pact, an arrangement
developing Brazil's strategic
bilization of
plant strikes alone last month
was the potential work time to
build
upwards
of
200
four-
job
interested in stock sales, excluding right and
the purchase of only real estate warrant sales, had a market value
items or of other isolated assets of $512,290,415, a decrease of 52.8%
on
Ear
de¬
and
creditors
Such
an¬
following is also
who
to
However, a number of brok¬
Treasurer of
Treasurer
all
on
Association's
the
The strike report pointed out
man
hours lost in defense
Exchange
and
82,678;
3,220,976
the
performed.
settle¬ Commission announced
immediate-final
an
Securities
28,610
taken:
Jan. Sales On Exchanges:
The
103
2,412,200
total
so
67 years of age.
as
College
also
was
Massachusetts
:
;
was
involved
nouncement the
for
Market Value Down
agreements
:
68
interest
lend-lease
1,192,152
'
sale, it was sales on all registered securities
pointed out, would have per¬ exchanges
for
January,
1942,
mitted the creditors and depos¬ amounted to $638,247,406, a deitors to receive an
additional crease of 47.7% from the market
payment of about 10%. Approx¬ value of total sales for December
imately 61% has been paid back 1941, and a decrease of 16.1%
-the
Brookline
,}
prompt sale of the assets to ef¬
ment
Board of the Boston Safe Deposit
& Trust Company since
1932, died
at
of the bids.
20%
27
■-4 11,773
.
Man-hours lost—
to
Mr. Hospelhorn proposed the
positors.
per-
the visitors.
Chairman
v
fect
.
and
bidders
the
25
13.108
—
Total—r
the plants and the thea-r
tres of war to tell how the instru¬
ments of warfare have
return to
their
certified
76
70,905
2,028,824
1,750,224
uX.
lost
Strikes
between
Company,
February
661,976
strikes
involved
Man-hours
Men
tabu¬
15,512
lost
Non-defense
Men
not
43
involved
Man-hours
special contribution and ex¬
tension of lines of communication
horn, receiver for the Baltimore
Association's
January
their
order
Trust
James .Dean,
formerly Presi¬
dent of the
Boston
Stock
Ex-
; change
men
merit
of
had
strikes follows:
of
Industry strikes....
Men
Nelson
Mr.
Awards
Usual"
As
The
war.
War
by assigning quotas to the
drive,
are:
:
despite the seriousness of
lation
and manage¬
rejecting all bids and
authorizing
John
D.
Hospel-
bank.
Many prominent officials and
estate
Judge Eugene O'Dunne signed
it is announced, were opened dur¬
ing the day, while total deposits
in excess of $125,000
were
re¬
ceived, according to Joseph Pul-
men
out
was
abated
reported,
"pro¬
and duction soldiers" in
recognition of
by
investment brokers.
an
.
accounts,
new
ment
The tion
attended
were
real
numerous
1,000
persons visited the new Queens
branch of Sterling National Bank
goals closer to
The
the
Washington
at
gram.
put
Lanahan and Stroud & Co.
than
more
of
3.
in
for
between
defense
Comparison of strikes during
January and February/the Asso¬
ciation said, indicated the policy
primary
producers,
with
each
highest bid, $1,915,500, shop's production schedule laid
in by Wertheimer & out on a scoreboard for every day.
Co., Baker Watts & Co., W. W.
Two other points in the produc¬
;
It is stated that
"Sun"
Baltimore
signed
providing
rubber,
The
rwas
£
.
.
the
March 5 reported:
torships in a number of corporations, among them Arkansas Util¬
ities Co., Missouri Utilities
Co.
and Orange Knitting Mills, Inc.,
,etCt
bids
hemisphere
and
•
■
re¬
countries
two
of
Brazil
collaboration
including
speed up men and machines for
a
the' National
Manufacturers
and
additional
materials
right here I want to say
this is no sly scheme to
profits' sake. It is instead
Agreements between the United
its report on
compiled from reports
in metropolitan newspapers and
papers
in
principals y industrial
centers and
did not purport to
cover every strike action.
And
that
of
tion-pointed
continued:
ing that the deposits of the bank
man
March. 2. The Associa¬
on
strikes
beyond the President's goals."
He
more
month,
Association
of
stock.
203%
being lost than during the
From
The
workers and
more
in
preceding
corporation lawyer of 30
and share in its success. Out of
; Broad St., as a Director of The
it must come greater produc¬
I Continental Bank & Trust Co. of
; All
bids for the purchase of the
tion
per
machine and much
> New
York, was announced on
remaining assets of the old Balti¬
greater use of each machine
March 4 by Frederick E. Hasler,
more
Trust Co., Baltimore, Md.,
now operating.
Chairman of
the Board of the
which has been in liquidation for
Mr. Nelson also revealed that he
: bank.
Mr. Hoffman is the son of
almost 10 years, were rejected by
Frederick H. Hoffman, who was
plans y to bring
the production
the Court on March 4. Regarding
*-
■
election
added
is ing this, production of existing
of $50 equipment could be increased by
A holder of pre¬
share
one
the
•
the
$50
stock.
the
•
He
confident that by do¬
preferred
Bank of Blue-
the First National
week.
per
was
war
the
of joint management-labor com¬
preferred mittees in each plant to run the
$25 in cash to receive V-k drive "to push production up to
tender
facturer of rayon yarn;
;
on
that he
in
strikes
involved 357%
resulted
ferred desiring to convert would
leading manu¬
President
of Pulaski Iron Co.; a Director of
can
cash
in
common
and President of the Ameri¬
convertible pre¬
hours
168
of
number
States
value of preferred plus $25 25%.
par
Mr.. Alexander is
a
The-new
convertible
W Chairman of the Board of Direc¬
tors
of the first in the Na¬
one
tion to issue
and the Pocahontas
Steamship Co.
been
per
This is believed to be the first duction and to work machines as
and prob¬ much as possible to the limit of
He is also Pres¬
Director of the Poca¬
Corp.
has
$50 to $20
bank in Pennsylvania
trative branches.
and
of
60,000
com¬ tion-goals
military
reduced planes, 45,000 tanks, 20,000 anti¬
outstanding
share and aircraft guns and 8,000,000 tons of
$50,000 of this reduction has merchant ships, set by President
been placed in surplus and $25,- Roosevelt, Mr. Nelson said it was
000 to reserve for contingencies. necessary to have three-shift pro¬
from
in 1932, Mr.
Alexander gained broad experi¬
ence
in his company's business,
having served as an executive in
its production, sales* and adminisident
2,500
shares
mon
of
President
as
the
of
Previ¬
Co., Inc.
election
fuel
of the
f
his
to
ous
L.
Irving's Board.
is
Alexander
Pocahontas Fuel
O.
of
election
the
5
Alexander
Mr.
Ward,
E.
The
production plants during Febru¬
ary increased 77% over January,
District
Justice
Court
of
Chief
Fred
of
that "they
the
of the
Appeals
Columbia, will
Judge
bert B. Maris of the Third Circuit
vast
nomic
Dr.
M.
and the
other members will be Judge Al¬
as
path of political relations between
two countries," and asserted
our
unveil before our eyes
horizons of further eco¬
progress."
de
Souza
said
Costa
they
significant "not only because
their concrete objectives of in¬
were
of
creasing the capacity for produc¬
present
tion in order to overcome
difficulties, but principally in the
of countervailing the ideal-
sense
Philadelphia and Judge ogies of hate and disunity by the
Magruder of the First spirit of solidarity which inspires
the governments of America."
Circuit Court at Boston.
The Brazilian Finance Minister,
As set forth in the Emergency
who headed the negotiating com¬
Price Control Act of
1942
(the
text of which was given in our mittee, said that his government
Court
at
Calvert
issue
of
Feb.
12, page 673)
Court will have
Emergency
this
sole
probably establish a new
organization to develop the na¬
tion's
strategic
resources.
The
United States will provide the reauired technical and expert as¬
would
jurisdiction to hear complaints
against price or rent orders issued
by the Price Administrator, Leon
sistance.
Henderson. It does not have jur¬
The first
isdiction over criminal proceed¬
ings brought by the Price Admin¬
istrator
for
violation
of
price
.orders
•»«
«,
«,
ri
«•'»* »».
*
»-«
*■'
»<
»•
«• i
tween
the
lend-lease
two
.
be¬
was
re¬
of
Oct
16,
ported in our issue
page .619.*
......
.
pact
countries
■
@FedFRASER