Full text of Commercial and Financial Chronicle : March 15, 1945, Vol. 161, No. 4368, Section 2

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Final

Editio.'

ESTABLISHED

OVER 100 YEARS

lieg. U.

Volume

Number

161

New York, N.

4368

S.

Pat.

Office

Price 60 Cents

Y„, Thursday, March 15, 1945

American WoiSd

The Financial Situation

in 2 Sections-Section 2

Copy

a

Policy for Peace and Progress

By COMMANDER HAROLD E. STASSEN*
hoped that the controversy which broke
Delegate to the San Francisco United Nations Conference,
out iu Washington late last week about "the decline in war
;
Fx-Governor of Minnesata
production" in the automobile plants will bring sharply again
Prominent Republican Statesman Lays Down Seven Cardinal Points for World
to the attention of the American people a situation which,
they can not afford to overlook or neglect.
It is asserted Peace; Comprising (1) the Recognition of "One World"; (2) the Abandonment
that production is down at least 25% and it may have de¬
of Extreme Nationalistic Sovereignty; (3) the Merging of Our Own Peace and Wel¬

It

is

be

to

v

clined double that much.

whether

counts

It is not clear from the press ac¬

the

comparison is between prewar and
present production rates, or whether the reduction in effi¬
ciency has occurred within a more recent period. Nor is it
clear whether the decline is in output per man hour of labor,
or. in
production due in part perhaps to man hours of labor
lost needlessly.
Both official statistics and consensus among
those who live through these things are, however, agreed
that productive efficiency in many places in this country
leaves much to be desired—indeed may well pose one of our
most trying post-war problems.
The situation is the more
serious by reason of the fact that wages meanwhile have
greatly increased, and are still moving upward despite all
the talk about this or that "formula."

fare With That of Oth^r Nations;
Force to

Private Capital and Free Enterprise, While Allowing Others to Decide
Say 6 Th/re Is "Room for All Peoples" and
Urges Action to Spread Ideals of Freedom and Justice.
Based

racy

There

can

be

no

Governor Thye, President Coffey, Friends and Fellow Citizens;
In these last three years, America, with he*' allies, has won

which touches not

only the automobile industry but vir¬
tually every industry in the land. If is next to impossible ic
compare present output "per man hour with that of peacetime
in those industries which are making things quite different
from those manufactured prior to the war.
There are other
limitations on statistics hearing on such a subject.
One may
be excused for maintaining a certain skepticism about statis¬
tics of this sort.
But there is absolutely no reason to doubt
the testimony of official figures to the effect that in prae-

one

(Continued

on page

1180),

/»

*

.

:.'4

/..

1

.

<S>-——

brilliant,
this

in

planes and

his¬

short of

victories

toric

The

The

war.

ally

names

a

diving planes or roar¬
ing counter fire or charging tanks.
They
take
their
guns,
their
pianes, their tanks, their ships,
their subs, their small boats, any¬
where and everywhere to strike
an enemy or support a pal.
They
die doing these things.
They die,

guns has been nothing
miracle.

victories

by

won

have

been

actu¬

the

march

tured,

unbelievably
fighting of
wise-cracking,
good-na¬
beloved American sons of

toward vic-

yours

on

out

stand

Jima and

They wade into beaches in

For genera¬

battles will be

mortars

of

symbols

who

icans,
love

Harold E. Stassen

*

the

blast

of

up

when

fight

will

they

brought
That

bombs.

They aland by their
and pour out their fire in

caves.

guns

their

'

of

sight

within

us

the

.' final victory.

slog and worm their way
to blast and burn pillboxes

and

peace,

and

can

and

take

them

With splendid military leader¬
ship
from
the
Commander-inChief, and from Generals like
Marshall, Eisenhower, MacArthur
and Arnold, and Vandegrift, and
froiji .Admirals like King, Leahy,
Nimitz
and
Halsey—they
have

They

Amer¬

how

like

''

places.

wave

after waveTegardiess of the whirr
of machine guns,
the wham of

these

others

and

the

of

holds and (leal devastating blows.

the Rhine.

tions,

battlefronts

They take off from rolling car¬
decks, or advanced airfields,
} penetrate thick, soupy weather,
fight their way to enemy strong¬

to

a n c; a

I wo

the

rier

Casa

and
B1

effective

world.

from

dalcanal

u a

and

those

markers

our

tory,
G

heroic

as

——

—■—

the face of

a

long series of

of

doubt whatever that the situation is

on

Their Own Form of Government.

on

grim

Many Industries Involved

(4) the Advancement of Other Nations; (5) the
AH; (6) the Maintaining of a Strong Military and Naval
Suppress Aggressions; (7) the Maintenance and Protection of Our Democ¬

Freedom of Information for

final
aim

victory must be our

1

has

surrendered.

divert

us

last

the

No.

until

enemy

must

Nothing

from following through

(Continued

on page

1182)

must.

From Washington
Ahead of the News
article because it has to do with Wash¬

ington's being agog, as the expression goes, about the forthcoming
meeting of the peace-loving nations at San Francisco on April 25.
This is only the middle of March and there are likely to be a lot of
people hereabouts discomfited, if not actually suffering, from fuel
shortage between now and the date of that fashionable gathering on
the

P

a c

people

unhappy; their wives

of

g o s

is

it

-

interesting

more

national

lavia,
pretty

them

The

of

inter¬

publicity

get

on

their

work.

spirits

study

affairs; it is difficult for

to

get

hard
our

are

asking

are

them why they do not go into the

and

u

with these matters

concerned

sturdy

France
Y

to

Washington

papers

filled

the society columns which have so
much more influence on human

such

a

elightful

d

1

look

than
elsewhere,
going to the San
Francisco conference, who is going
to give a cocktair party, what one

forward

with

to.

Out

in

the

one

think

sell
Carlisle

Barjreron

grossed these
days in purely

mundane things
bill, the
bill to perpetuate the Fair Em¬
ployment
Practices Committee,
the
scandal
in the Commodity
Surplus Corporation, the fact, just
admitted by the War Food Ad¬
the

wear.

correspondents

that we

deeply en¬

as

their

*

and

ships

and

munitions

Commander

by

address

An

University
of
Minnesota, sponsored by the Min¬
nesota United Nations Committee
and broadcast by the Columbia
the

at

Stassen

Company, March 7,

Broadcasting

mostly taking

manpower

ministration, that the many agen¬

grabbing for food for other
peoples are duplicating their ef¬
forts and causing an awful mess
with the home front food supply;
cies

their

editors

on

the

proposi¬

tion that this is the

biggest of all
things and that they really won't
be able to hold up their heads in
the future unless they are on the
scene.

and

daughters because they won't

"Just quit thinking and get in on
the

parade,"

getting

any

are

asking

intelligent

without

responses,

just what will be fundamentally

might think that these purely different in the world after San
practical and serious matters are Francisco from what it has been
holding o"r "-Mention, but it is
not so.
The members of Congress .J 7 ; (Continued on.page 1185). ,
one




Private enterprise needs no Federal subsidy of any kind to carry
the most optimistic estimate of postwar construction, L. E.

out

even

Mahan, St. Louis, President of the Mortage Bankers Association of
America, told members of the Mortgage Bankers Association of New
Jersey at their meeting in New York on March 8 at the Hotel New
Yorker.
More than 150 mortgage bankers from Northern New Jer¬
and

sey

met-

ropolitan

cost of

New York at-

as

the

M

r

statistics
show

Editorial
Page
Financial

.1177

Situation

From

1177

News

Trading on New York Exchanges..
Odd-Lot Trading

NYSE

.1189
1189
1188

Feb. 28

NYSE Share Values at

Trade

Review.

Price Index...1189

Fertilizer Association

Weekly Coal and Coke Output
1187
Weekly Steel Review....
......1187
Moody's Daily Commodity Index... .1188
Weekly Crude Oil Production
1190
Non-Ferrous Metals Market....... .1190

1188

Weekly Electric Output
Bank Debits for February
Consumer
.Tfl.rmn.rv

.-A

-

*

.«

.

»

•

a

a

a

m

•#»«*'&.«.'*

market.

•

*

+

'*

a

the

affect

It is far

interest

real estate
important

more

will induce

avail-

ments

level
capital invest¬

in the field.

capital
b 1

in

e

all

"Consider the experience

of

farm

loan

entry

1

far

d

in¬
cluding insure n

e

ance

banks

other

the

Lawrence

E.

Mahan

postwar

in the

Government

that field, with rates
current levels, drove

facilities
now

are

they were 25
years ago.
If there is any class of
people
in
the
country
which
should be demanding better hous¬
ing it is the American farmers—

not

in-

vestors, to
adequately finee

into

below

field.

capital away and credit
available to the farmer

com¬

panies,
and

rs,

but

as

adequate

as

that

remember

the

govern¬

building expansion. He said it is ment has been active in this field
a
myth to say that "private in¬ since 1917, the inception of the
terest won't be able to do the job Federal Farm Loan Act."
so the government must step in."
Mr. Mahan said another myth is
Another myth in the real estate that the
government has already
financing field, Mr. Mahan said, taken over most of the mort¬
is some of the current thinking
gage business.
This contention is
about

interest

rates.

He

stated

1188

that "experience will not support
the contention that lower interest

1187

rates will stimulate

Volume Lower in

Credit

3Vz%

which

na

.1178
Commodity Prices, Domestic Index. 1189
Weekly Carloadings
1191
Weekly Engineering Construction.. .1190
Paperboard Industry Statistics
1191
Weekly Lumber Movement
1191
General

4%% mortgage,
a

that the rate be kept at that

mortgage

Ahead of the

Washington

materially

to

that

groups

Moody's Bond Prices and Yields... .1188
Moody's Common Stock Yields. .. .1188
Items About Banks and Trust. Cos. . 1192

a

to

there is ample

a

Regular Feature»

carrying

contrasted

rate, on a $5,000 loan is so slight
that it does not, in my opinion,

.

Mahan quoted

GENERAL CONTENTS

State of

acquaintances and
friends in Congress, who are a
pain in the neck to their wives

Enterprise Needs No Subsidy
In Post-War Building

dinner.

'

Some of my

Private

tended

The Washington

are

Building Activity, Says Mahan

per¬

is

time off from their usual work to

might

such

and

To

The flow of supplies

formance.

here

who

intends to

hint erlands,

are

for

day after day, particularly

behavior

to

c o n c

ave

commendation

are

the

offing we

Low Interest Rates No Stimulant

management, .capital

labor,

1945.

down when in

have

agriculture are

American
and
entitled to high

Nations.

other United

c

But

Coast.
like the

i fi

victories and has
strength of the

these

in

contributed to the

By CARLISLE BARGERON
This is really a society

played a heavy

country has.

part

of

superb productive power

The
our

building.

The

not

true,

he

said,

and

declared

that statistics which he had com/

(Continued

on page

1185)

THE COMMERCIAL

1178

astonished by figures just released.
3,600,000 draftees have been turned down

BABSON PARK, FLA.—I am

These

show

that

over

of *>-

because

~ '

physical

poor

to

of

matters

are

and

condition

1,600,000
discharged;

definite goal in

while

imagination,

over

importance

great

parent: Has your boy a

every

Has he self-

life?

Has he

control and self-mastery?

the

stick-

and

energy

Has he been "born

intel¬
ligence of the

to-it-iveness?

entire

ing from the war more or less
thoughtful — with better habits?
The answer to these questions by
honest
mothers
will
determine
whether the United States' debts

average

army

only

equals
that

of a 13year-old boy.
Loans and

again" spiritually?

will be

Education

as

politi¬

Yet,
cians

can

by

each

loaning
Babson

at" the

$10,000,

to

$500

April

will frankly be
will

by giving him

or

get some kind of a diploma!

to

in

May these questions
discussed. Parents
given definite help

and

returning sol¬

plus $50 per month

per year

I

be

then

The first step is to

by experts.

that body,

realize
are

and that

one,

mind and soul
truly spiritual

a

glad to have veterans receive
these
gifts; but they must not

months

think the loan or the diploma will

happy life.

enable them to operate a business

these

successfully

to hold a good

or even

job.

dation

It

would

to

help

methods of

thinking—to

selves

a

them¬

use

of
college lab¬

laboratory

bothering with

con¬

some

instead

oratory.
The truth is that their
brains have been in a concentra¬
tion camp

for the past few years.
future
depends
upon the use of their brains, in
hard constructive thinking under
expert guidance.
veterans'

The;

Your Boys'

useful, healthy

a

But those attending
will

untold

The

of

other

which

men

unlimited

and

the

possi¬

not

Kerrigan claims that it is
commonly recognized
by most
diplomats that this is .the only
practical and fair solution to the
problem which the United Nations

facing and that they said

are

25 years ago.

Neither of these

needed

reading

by

In

fact,

why

should

is

by

or

The

answer

to

originality
own jobs?

the above ques¬

tion is that very few people have
been taught to do original and

constructive
basic

cause

thinking.

This is

a

of unemployment and

which must be rectified. Here

one

to

many years

this

come

methods

I

discovered.

are

believe

such

Person¬

discoveries

Hence, I

the

to

as

new

should be hundreds of

opti¬

am

future.

speakers at the Conference.

Spangenberg
three
the

good

forecasted
business

Dr.

two

or

after

years

1950.

pression after
that

Dr. Mooney

Florida

is

headed for

with the insane

that

is

oil

be

to

Less

is

in

found

in

vast

quantities

suffi¬

pay all the State's running
expenses and eliminate the neces¬

sity of all State taxes.

Mr. Bab¬

spoke

son

investments

on

and

Eddy closed the Confer¬
appealing that only a spirit¬
awakening can save the post¬

ence

ual

world.

war

those who

or

era

I believe

they will work with

nor¬

ing and personal

powers.

You

possibilities and could
revolutionize

methods

well

as

We will have

as

more

com¬

educational

religious work.
and better

Norges Bank,

London, through
representative, has

resident

.

of

arrangements with a group

New

York

banks, headed by
City Bank of New
agent, for a credit line of
$16,000,000
available to
Norges

The

National

York

see

as

Bank

liberation of Norway,
subject to review of political and
upon

economic conditions

It

is

announced

that

at

time.

that the credit is

em¬

ployers. Let every reader encour¬
age the employers which are now
carrying the burdens of the war
and are preparing for the new
tasks of the peace years ahead.

revolving, running for
three

from

years

period of

a

the

Rationing the Having of Babies]
"Most

Purpose

the published methods for
preventing World War III
.Stalin knows what should be
done; but Churchill and
Roosevelt dare not now mention
it.

of

bunk.

They

other

fear

the

churces.

Perhaps

concerning

this

solution

the

to

Catholic

one

it

and

German

and

Russia, opened his speech
23 at Webber
College,
Babfeon Park, Florida.
Col. Ker""rigah is a statistician rather than
a pdlitician. He traced both
World
Feb.

Wars I and II to the forced birth

Germany, Japan and Italy.

He insists that only by
restricting
these birth rates for a reasonable
can

the

curse

eliminated.

of militarism

Continuing,

he

.said;
"It

is

joke to talk about re¬
educating these Huns; education
must

a

come

without.

from

you

can't force

who don't want it.

Hanging the Nazi leaders to




trouble

more

that

later.

be

can

flea

man,

Japanese

rates

are

Reparations

collected

mere

bite.

will

Unless
and

be

the

Italian

a

Ger¬
birth

regulated the Dumbarton

Oaks program will
completely fail
and

there will be another
War 25 years hence." >

for

num

and

loans

2Yt%
the

until

up

per

to

per

two

World

Col.
the

Kerrigan

date.

The

after

the unused
No

It

pledge

the

an¬
on

portion of the credit.
of

further

is

V2 % per
effective date

assets

is

involved.

"The funds may be drawn upon
as direct cash advances or
by the

opening of letters of credit.

of how the

United Nations

birth
with
it

rates
a

at

can

regulate these

minimum

cost

and

tiny police force. Briefly,
consist of rationing the

would

pregnancy of

women in the above
three countries to. the
average an¬

nual

rate

Nations.

enjoyed by the United
Said Col. Kerrigan:

"The rationing of
having babies
could be easily and
fairly accom¬
plished
through
the
three

laws:

(1)

Any

unmarried

at

the

and

war

to

according to
un¬

rehabilitation

reconstruction

the

of

conducted

was

smallest

since

$120,377,691

June,

recorded.

was

the

was

1944,

when
Of the

February
total,
$26,925,290,
or
14.4%, was for new capital pur¬
poses and $16.1,332,000, or 85.6%,
for

refunding.
this

In

respect the month's fi¬

towns of

and

of

case

the

up the bulk of the
emissions, the total being
$109,577,000, with utilities taking
$60,000,000, investment trusts $9,232,000, and other industrial and

and

Russia

development

of

China,

natural

re¬

sources.

the

From

Germany

coming

news

in

out of

recent

weeks, no
personal feel¬
ing in the matter may be, she too,
what

will

need

one's

much

assistance along
help ward off in¬

similar lines to
ternal

revolution

and
promote
greater tranquility in the world.

These government
ment

for

loans

-

would

to

govern¬

-

be

extended

during the transitional and
post-war period, on a long-term,
use

low-interest
"Business

basis.

According to
weekly or¬

Action,"

a

of the Chamber of Commerce

gan

States, "One of the

of

.purpose

facilitate

the

credit

is

an expansion
of foreign trade.
Instead of credits for non-produc¬

tive

projects,

the

loans

line

is

to

the

financing of essen¬
requirements of Norwegian
industry and
trade
during the

tial

world

markets."

since

the

abundance

the

likely be the
other

repayment

the

for

United

large

a

States

and

in¬

operate its existing productive

ca¬

pacities expanded during the war,
not only will it need prosperous
home markets in which to sell
products
before

on

the

need broader

larger

a

war

scale

it

but

States

will

need

to

our cus¬

tomers and increase ability to buy

improve

their

National Bank of the City of New
York, Guaranty Trust Company of
New
York,
Chemical
Bank
&
Trust Company, J. P. Morgan &
Co., Inc., Brown Brothers, Harriman
York

&

Company,
The
New
Trust Company, Bank of the

Manhattan

Company,

Trust

Bankers

Company,
Irving
Trust
Company and J. Henry Schroder

Banking Corporation."

mills

to

by

adjustments in war programs, the
difficult job of unraveling tangles
delivery situation got

in the steel
underwav

the

bears

move

past

the

the

house

place

priority

trolled

week.

considerable

some

changed

system

Materials

to

This
resem¬

cleaning
time

ago

over

from

the

Con¬

Plan

steel

on

orders, states "The Iron Age," in
its

review

current

of

the

steel

market.

Directives

lower

in

although

volume

than

slightly
month

a

continued the past week to
reach mills in substantial quanti¬
ties, notwithstanding the effort
now being made to clear mill or¬
ago,

books

of

orders

ered not urgent.
duce

carryovers

promises

now

consid¬

This effort to

really

so

re¬

that delivery
something

mean

to the consumer* will be no small

task

and

may take considerable'
time, the magazine points out. In

the

interim

confusion

certain

a

of'

amount

will

probably have tobe accepted with patience by the
WPB, the steel industry and its:
consumers.

The

<•
that

announcement

allotments

second

the

to

ODT*

would be cut by 30% followed by

heavy cuts in other civilian

pro-

grannfs, has as yet not been felt
steel mill schedules for that

on

period.
Some mills jholding
heavy volume of railroad orders
have thus far received

endowed with

lations,

an

excess

of

merchandise

exports
over
im¬
"Business Action." notes,
of

seek

our

industries have

foreign outlet for
surplus production and by
doing have lessened the prob¬
a

their
so

lems of

nomic

the

United

foreign trade, asserts the
is greater than wholly eco¬
considerations

alone

sug¬

gest, since in view of its tremen¬

a

world

greater burden in assisting

prosperity through

a

larger

and stable volume of foreign trade

and

foreign investments than be¬

fore the
New

One

war.

Capital Flotations in Feb¬

ruary—

Corporate issues brought

fu¬

difficulty carbuilders will

encounter in

the

near

1

second

dous economic resources, in rela¬
tion to the world economy, it must
bear

ture.

from

of

cancel¬

latter will be made official at the

fabricating level in the

interest

The

no

reflecting the cut in al¬
lotments.
It is expected that the

employment at home.

organ,

Chase

steel

ards.

Bank

The

Following the

invalidated

been

States in

York,

—

to

orders

living stand¬
Our country in the past has

ih the bank¬
ing group are: The National City
New

request

quarter

make

investments abroad to inject new
life into the economies of

to

of

WPB's

will

foreign markets."

To accomplish this objective the

United

many

"The participants

an

creasing volume of foreign trade
rounds out its point by say¬
ing, "If the United States is to

had

de¬

has

The

Company bonds.

Industry

eliminate

der

in

basis

spondents in the United States.

in

of

and

than

Steel

when the WPB

"Business Action" observes that

prosperity
is

Water & Power

to

than gold.

ports,

been

very

of that month's total.

17.9%

greater part of the February total
comprised the private placement
of
the
$25,000,000
Shawinigan

took

matter

States

comprising four issues and repre¬
15.7% of the total.
This
compares
with
$56,414,000
so
placed in January, accounting for
senting

blance

gold, it is felt that
of

means

and

ever

of

imports would
chief

relations with their banking corre¬

has

United

manufacturing $9,448,290.
Issues placed privately during
February aggregated $29,600,000,

which

repaying
these
loans
must
be
given
major consideration and

wegian commercial banks enab¬
ling the latter to resume active

record

The

made

that

for

developments and selfrepayment enterprises.
This, o'
course, raises the consideration of
ultimate competitive effect on the

and

"Norway is net affected by the
Johnson Act as no foreign loan

made

issues

month's

pro¬

is expected

be

duction

post-war period.

It will, through
Norges Bank, be available to Nor¬

it

will

portion of the fi¬

It should be noted that railroad

Europe, and in the

Soviet

the greater

nancing.

war-

transportation

industries,

r n

is

purpose

the

be

prosecu¬

systems, public utilities, and cities

The

fault.

hair-raising details

form

stands

the

to

hostilities, their

and

those

announced:

explained

following

sour

commission of

num

on

then

of

years

thereafter

annum

expiration

an¬

.

within not from

Certainly

it upon people

hate

ing up Germany into spheres of
influence will only plant seeds for

Kerrigan,

be

our

but it will be wasted effort. Divid¬

saddr to

period

satisfy

was

late'Assistant to the U. S. Ambas-

rates of

may

only

menace

that' Harry Hopkins recently went
to Rome to see the
Pope."
With
this sentence, Col. J. J.

-on

apple trees

tion

effective

date, with interest at 2%

ment

Webber College Speaker Says This Is the Real
Of Unconditional Surrender

limited

of the United

Norway's Oenlral Bank
Oredii Agreement

are

boys to stimulate their think¬

the

in

credit

favorable results anticipated from
the extension of post-war credits

thousands

nervoufely.
In the
following World War II.

is

matter

William

boom.

There

Employers

requested by

alone

seeking these funds which
entirely apart from lend-lease,

which

followed by a severe de¬

war,

Edisons, Einsteins and Fords!
Encourage

to

In
are

to

terms also provide for a commit¬

is the

Russia

post-war

a

.

other able

several

were

will

war

have been fought in vain."

There

for

Brewer

entirely

some

pletely

and

Soviet

amount

for

restricted

perience unless

have

initiative

Drive

extended

be

credits

The

derstood

Florida

immediately that this has tremen¬

enough to create their

the desire that post-war

or

them.

of

systematically

concluded

especially recommended the good
merchandising
stocks.
Dr.
W.

dous

loans

Czechoslovakia, Belgium,

is

remains,"

listening to the radio.
They will
only through self-develop¬
ment, hard thinking and bitter ex¬

mal

and Yugoslavia have ex¬

1944. The February total with the
exception of the $132,785,499 re¬
ported in December, last, during
part of which the Sixth War Loan

the present time, Russia,

Up to
France,
Greece,
pressed

it

cient to

assets

the

rate of these three enemy nations

|but

books

in

schedule terminates with the end

sure

expect any other man to
employ him? Why should not all

any man

of

churches

snuffed out

been

the Colonel, "that unless the birth

nevertheless

new

employed.

influence

the

have

nancing follows the trend of the
previous 13 months, during which
refunding
accounted
operations

brains.

and

to

has been kept under cover and out
of
the
newspapers.
"The
fact

its

people

difficult to achieve.

$6,000,000,000.

upon

diplomas

restore the lives that

to

the

owing

military and

another

come

ally,

united world

struggle, aside from implementing the will for permanent peace by
positive action. The task, how-<*»
ever, of rebuilding war-torn areas out during the month of February
to some semblance of their former aggregated $188,257,290 as com¬
habitable
and
productive state, pared with $315,020,703 in Janu¬
while tremendous, is not near so ary and $158,761,995 in February,

of

made

keep

discussed at

was

The destruction of life and property presently taking place in
Europe and other parts of the world will entail for the peoples and
governments of those countries, so affected by a devastating war, a
vast program of rehabilitation.
There is little that can be done by a

Oaks Conference.

broken-down

not

He further believes

tions and that it

pen thereafter will depend upon
the thinking powers of the return¬

G. I. loans and free

so

that
population
experts
have
preached this to the League of Na¬

Heretofore, brain surgeons and
psychiatrists have worked only

will

persons."

Col.

people spend the money which—
.since 1940—they have been ac¬
cumulating.
What
will
hap-

education

and

the de¬

materials to all married

of

ing soldiers.

offense

The governments of

(3)

on

feated nations shall give free and
full contraceptive instructions and

enjoy a few years of "pros¬
perity" following World War II.
Certainly this will last until the

^

for three
offense.

after

depend

self-mastery

secured

boys

your

college

or

money

of

will

war

upon

first

the

of

allowance

second

stated

future

mistic

will

learn

stimulating

will take place.

Brains

Without doubt the United States

and

bilities.

men

and

structive
as

the

these

self-mastery

develop

for

better

far

be

Government

for

courses

have

the

on

sterilized

rebirth is the most effective foun¬

am

ration

babies shall be locked up

the

Institute

Babson

dier from $2,€00

her

exceeds

Yet,

At the Adult Conferences to be
held

band of any married woman who

the Dumbarton

Great Discoveries Ahead

be

remedied
W.

our

pretend

ation

Roger

paid or repudiated as well
post-war employment sit¬

uation.

this situ¬

that

Is he return¬

The State of Trade

be sterlized
the first offense. (2) The hus¬

on

Thisnda/,March IS, 1945

be¬

to

pregnant shall

come

Roger W. Babson Discusses G* I. Loans and Education

herself

allowing

woman

Aid to Veterans

& FINANCIAL CHRONIC*,*.

accepting the cut for

quarter

-car

construction

13,500 to 7,500 units will be

question

of

which

to be eliminated.

tification

is

cars

Unless such

soon

are
no¬

forthcoming,

April rolling schedules will be so
firmly crystallized that difficulty
will

be

nated

met

in

lifting out elimi¬

tonnages

and

them with material of

replacing
a

different

sort.

Reflecting the complications in
reshuffling of steel deliveries

the
for

the

second

(Continued

quarter,"
on page

is

1186)'

the

'

;

1.

J/olume. 161

FINANCIAL

LUMMLKGIAJl.- &

FHL

"Number 4368

marked

seasonal^ industrial* pro-' trophic consequences.
In these lines, however, automatically
increase

duction.

Prdductitiri, Not Xawsflhe

is

it

possible to produce for- in¬
ventory as the output is absorbed

"The Inter-American Conference resolves:

in the

International Labor

Conference

such

under

study

made

firm.

The

fact?

~

.

be

mean

should

continued

a

situation
out

has

by

a

a

leading

steel

survey

covered

1937,

by

annual

an

in

system

wage

of

given to the extension

absolute

Federal

It

control

not

be set up with

can

cations

of

themselves

tion, including dictation about the
kind and amount of goods that
consumers
can
buy.
In
other
words, the logical sequence of this

could

these

lished

as

proposal

the

is

Frankenstein

creation

that

would

of

the

as

this

to

few

a

however,

any,

guarantees

quickly

leaders would

estab-1

be

completely

or as

demand

current

In

proposal.

if

cases,

of

labor

to indicate.

seem

"Above all, in formulating plans

a

for the betterment of the factory \

destroy

private

workers

there would

high-sounding slogans that arouse
false hopes and incite class con¬
flicts, but the pursuit of which

force and continued
maximum
operations
the
year
round, costs would have been 582

would

best

kept

full

a

dollars

million

haye

would

than

more

what

been received from
and in addition six
of

tons

been

have

inventory

would

hand at the end of

on

enterprise and also trade
unions, and out of the wreckage
emerge a totalitarian
Under such a regime, wages

state.

could

and

be

guaranteed

provide

be accompanied by
ance of individual
The

ing

"It

freedom.

is, therefore, the inability to

control demand under
can

wieldy ^inventory/ 'but workers
paid while not working, costs

around

would have been 281 million dol¬

market

guarantee
those
it

system which has been built
and
continues
to
revolve

up

dom

the

of

principle of the free¬

consumers'

place.

choice

at

•

that

wisest

the

would

for

be

and

labor

annual

of

to
where
effectively, for to
take any drastic steps in this di¬
rection
would
be
fraught with
gray perils to all, and particularly

Ameri¬

our

of

beware

through '
cooperative and voluntary action *
to
explore the field and then
strive to apply the proposal for a

problem involv¬
proposal for an annual

the

wage

seem

follow

to

management

of the

crux

would

course

the disappear¬

should

we

lead only to disaster.

can

would

standard

a

they

but

subsistence,

a mere

such

even

If production had been
curtailed to avoid piling up un¬
the year.

;

•

a

only over production, wages
and prices but also over consump¬

only

modifi-

goal for certain- sec- ;
our
economy
that lend

as

representative year for
the purpose of this proposal, and
found that if the company had

the

things.
learn this simple

the

brought

clearly

customers,

we never

not

does not

consideration

tions

for

space

been

work, close and constant attention to effec¬

Shall

serious

so.

pen

production, and not "social legislation," "social
provide

these

made that "this

involve

high level of production in slack
times and the financing of this
non-earning
inventory
would
make impossible the adoption of
such a measure. What would hap¬

insurance" and the rest have the power to
•

is

that

the Government to guarantee na¬
tional income.
This in turn would

goods subject to
style changes, formidable
arise.
In
the
heavy

million

tive

depression.

downward

a

bureau¬

an

the annual wage plan on a sound
basis whenever it is possible to do

storage

and Peace.

Hard

prices and usher in a
In order to guarantee

in

the

by

by

serfs

as

goods industries, such as steel, the

accord¬

of War

Problems

on

to

and
fre¬

consumers

a minimum living wage, computed in
with the living conditions pertaining

Inter-American

plan

result

or

all-powerful state."
U In
concluding the arguments,
against the proposal the statement

inventories would be in¬
to menacing proportions.

pressure on

freemen

as

whether

to

exercised

be

dictation

under

crats of

This would

shall

consumers

consump¬

down

narrows

choice

this
country it would be necessary for

quent

adequate means of hygiene, industrial insurance
and professional risks."—From a resolution of the
'

this

this

obstacles

to the
geography and economy of each American country;
that this salary be elastic and related to the increase
in prices, so that its remunerative capacity protects
and increases the purchasing power of the worker.
"(3) To develop the application of social insurance
for illness, old age, disablement, death, maternity
and unemployment.
"(4) To provide for services of preventive medi¬
cine, protection of women and children, nutrition
and enactment of necessary legislation to establish

.

of

comes

types of durable goods

most

fore,

tion, and, if production were not

creased

is

argument .it

extension

the

to

Organization.

sphere

'

this

pointed out that "when it

"(2) To establish in all countries of the hemi¬
ance

Proposal. Would Fail

Following

reduce

consumer,

mand,

When

enacting by all the American republics of social
legislation' that will protect the working class and
that will embody guarantees as well as rights on a
scale not inferior to the one recommended by the

the

It would
prices to

curtailed in line with lowered de¬

of the year."

course

"(1) To consider of international public interest
the

1179

CHRONICL^

the

The issue, there¬

to

of

areas

be

can

our

wages

economy

done

labor."'

//■.;//•

above receipts from custom¬

lars
ers.

;"The situation would be even

The Guaranteed Annual Wage
First National Bank of Boston

Effects

in

Upholds Its Desirability but Points Out

Industries It Would Be Impractical and Have Disastrous

That in Many

Business.

on

England Letter" of the First National Bank of Boston
©f Feb. 28 discusses the implications of the proposal for a guarantee
The "New

©f

employees,
well become
dominating issue championed

annual

to

wages

which it states, "may
the

by Major Labor Groups in

1945."

—

also

greatly
benefit any com¬
munity to have its industries pro¬
vide steady employment."

of providing a
guaranteed annual wage for fac¬
"The

proposal

workers."

tory

it

is

''has taken the dorm
wide

the

the

on

a

nation¬

It is presented at

campaign.
time

this

of

remarked,

contention that

Government has given

guar¬

post-war

immediate

for

antees

security to both agriculture and
Industry: to agriculture in the
commitment to keep farm prices

"While the

objectives of stabil¬
ized employment are undeniably
laudable," states the letter, "the
question naturally arises as to its
practical application. The idea of
assured

an

with
ever

Board

Labor

War

National

The

law.

tax

income

was

unsym¬

pathetic toward the steel workers'
arguments along this line, never¬
theless agitation for the guarantee
©f annual wages continues and it
may

issue

well become the dominating
championed by major labor

in 1945."

groups

"has

article,

consequences,

such
far

far-reaching
transcending

surface indications, it is

of the ut¬

importance that a

searching

most

analysis be made .of the implica¬
tions involved in the adoption of
such
a
measure.
The problem

is not a

Plans embody¬

varying

degrees

of

success

since the 1920's. These earlier

plans originated with management
opposed by labor

and were at first

come

they have

but

groups,

won

and

over

be¬

since

are

now

annual

companies

guaranteeing
wage are confined to
in
consumer
goods,

and Hour Division of the Depart¬

though

started

were

of the

some

initiation.

as

most

persons

would agree

principle that it would be high¬
ly desirable if factory workers
•could be assured of an annual in¬
in

given to the
majority of white-collared em¬
ployees and the key workers and

come,

the

same

as

Sta¬
would enable
these workers to plan ahead, to
have a sense of security, and not
to be subject to periodic and un¬
predictable layoffs. Management
would benefit
by reductions in
labor turnover and in absenteeism,
and
by
more
contented labor.
Furthermore, it might serve as a
spur
to management to operate
more efficiently, to iron out fluc¬
tuations in production schedules,
to develop new products, and to
establish more scientific control
over
costs.
It obviously would
•officers

of

industrial firms.

bilized employment




load would be either bank¬

a

ruptcy or the Government would
be forced to come to the rescue

With huge Federal subsidies that
would be passed on to the tax¬
payers."

"Such

the

contained
company.

these

plans

before

firms that do not have the reserve

clauses for
Practically all of
have
been started

worker

can

be in¬

cluded, while others depend on
the cooperation of the workers to
make

for slack periods, nor

on

standing for making
commitments involving tieing up
credit

in

funds

their pay in slack pe¬
working longer hours in
busy periods, just as the farmhand
gets the same pay the year round
in spite of the seasonal nature of
up

riods by

inven¬

non-profitable

all

the result of labor

small

the

of

escape

a

hard'est

hit

85%

gradually, not including all em¬
ployees at the outset.
Some re¬
quire a minimum term of employ¬
ment

proposal," it is stated,

a

"would

this

it

connection

firms

fact

in the

is

that

employ less than 50 workers.
At
time when so many proposals

such

a

measure

would be the dis¬

astrous effects it would have upon

business

new

the

1930's,

enterprises.

even

Since

the most
has not

under

favorable conditions, there
been

much

incentive

to

embark

ventures because the
prospective returns have not been

upon

new

commensurate

involved.

To

with

the

impose

this

hazards

heavy

ardized

they

handful of

case

of

a

mere

companies in consum¬

goods lines turning out stand¬
products for which de¬
mand is steady and whose annual
production

can

ticipated.

In

was

necessary

be fairly well an¬

instances it
to revamp the sales
some

organization and to eliminate the

Belligerents and Use of Country's Transport

Regulation

and

would

have

two

strikes

on

•*

i

Allied

and

'

-

\

before they came to

"Should

''

i

'

'

'

'■*

-'r

F *•

•

Swiss

delegations, reaching complete agreement on
matters concerning Switzerland's
"unique position as a neutral,"
signed a document at Bern, Swit—
—
V'
zerland, on March 8 regulating fully
understand
Switzerland's
Swiss trade with belligerents and
unique
position
as
a
neutral,
transport facilities across Switzer¬ which
they
always
respected.
land, it was announced officially, There has been; give and take by
.

Associated

said

advices

Press

•

from

Bern, which

New

York "Herald Tribune" also

as

added:

gations left for Paris, well pleased
at the outcome of the negotiations.
The

Anglo-American

tatives

to

went

intention

represen¬

with

Switzerland

of

stopping

Swiss

exports to Germany and the rail
traffic

Switzerland between

across

Germany and northern Italy. One
of

their

strongest

the

was

points

trading

need

Swiss

materials

of food

from

overseas,

must pass over Allied ter¬

not disclosed, but an official
at

statement

of

conclusion

the

negotiations and the tone of state¬
ments by the heads of Ihe Anglomission

American
sults

indicated

re¬

quite satisfactory to the

were

Allies.

Currie, special assist¬

Lauchlin

President Roosevelt and
head of the American delegation,
to

ant

war.

Stucki, member .of the
delegation, said that Swit¬

Walther
Swiss

zerland

the

of

was

unable to accept some

Allied

demands,

"which,

however, was fully recognized by
the

ment.

*'

was

reached

which

agree¬

Swit¬

include

Allied

delegations," and

that' "Swiss
remains unimpaired."
phasized

Currie

received

em¬

neutrality

from

foreign trade with both
belligerents, transport of goods by
Swiss
railways,
the
export of
Swiss electricity, steps which have
been or will be taken by the Swiss
government
cealment

Edoua^d

Steiger,
President of the
Swiss Confederation, a letter for
President Roosevelt.
At a press
Von

of

to prevent the con¬
looted
property in

Switzerland,
and

the

supply
from

materials

raw

Switzerland

to

of

transit

and

food

overseas
across

France.

and

ritory to reach Switzerland.
Terms of the agreement reached
were

£

"The subjects on
zerland's

The British and American dele¬

the

both sides.

given in the

is

"It

particularly satisfactory
delegations that they

to the Allied

able

were

reach

to

an

amicable

understanding with the Swiss
the

on

of transit facilities across

use

and /the

Switzerland

export

of

goods and electricity. Early in the

negotiations they noted appreci¬
atively the action of the Swiss
government in blocking German
funds and the prohibition of deal¬
ing's in foreign currencies. Other
measures have been agreed upon.

of the time was
discussing the practical,
problem of how goods of which
there is a world scarcity can be
made
available
to
Switzerland
"A

great part

spent

in

and how these

can

be

transported

The Allied dele¬
gations fully realized this is a
vital matter for Switzerland and
by

and land.

sea

effort to insure that
of world supplies' is
available to Switzerland and thai;
as far as circumstances allow they
made
a

every

share

fair

reach

will

actually
frontier."

Swiss

the
,

'/

$ 1/

Spring Meetings Cancelled
United

The

States

Savings and

Loan League
sponse

to

has cancelled, in re¬
the ODT request, two

Allied

regional spring meetings of sav¬

correspondents, in the presence of
the heads of the three delegations,
this statement was read:

ings and loan association execu¬
tives, the North Central Savings
and Loan Conference held in Chi¬

conference

for

Swiss

and

"Negotiations by Swiss and Al¬
delegations have ended. Com¬

lied

plete agreement was reached on
bat.
legislation embodying all matters under discussion. The
this proposal for guaranteed an¬ negotiations were carried on in an
nual wages on a nation-wide basis atmosphere of the greatest good
The
Allied governments
be imposed, it would have catas¬ will..
them

of Switzerland's

Facilities

to

ers

"So far the plans have proved
successful in the

Trade With

for

said that the Swiss would share
help small
n
the Allied victory.
Dingle M.
firms, it would be most unfortu-i
Foot, head of the British delega¬
nate should they be compelled to
promised that the Swiss
adopt a plan that would drive tion,
would
participate in
expanded
them out of business.
world
trade expected
after the
"The most serious objection to

made

being

are

unpredictable
commitment
would be like placing a stone wall
in the path of the would-be en¬
terprisers. This would be particu¬
larly unfortunate since many of
the returning veterans are plan¬
ning to start their own factories.
To
resort
to
baseball
parlance,

his work..

Provides

country

a

Foreign Trade

on

Document

"aw

recent

The setup of the sev¬

Hies and Swiss Reach Accord

which

Be Hit

Firms would

emphasize the

eral

riod

guaranteed

plan# when unable to carry

In

while nine others for the same pe¬

fair-minded

such

institute

to

facturers

wage

to

approached with sym¬
understanding dn order

objectives, practically all

lating unwanted goods that would
to be scrapped.
The inevi¬
table outcome of forcing manu¬

tories.

decision may be made on

"As to

but

have

well

management

non-

would involve the risk of accumu¬

al¬

The majority were

that any

.the merits of the case.

amounts of funds in
income
producing
goods,
huge

the

fifty-seven such
file with the Wage

1944,

by

swift" tech¬

implements and the like.
Con¬
sumers goods subject to frequent
style changes would also be seri¬
ously ^affected;
In some of the
foregoing. Jine^, the piling up of
inventory would not only tie up

to draw

instituted

to

machine tools, elec¬
trical and textile machinery, farm

In

ment of Labor.

subject

locomotives,

service and distribution industries.

March,

of the

nological changes, customer speci¬
fications, and extreme fluctuations
in demand for products such as

Small

pathetic

be

industries

"Most of the plans
an

respects, however,
durable goods

some

case

its

plans differs.
Of forty-three
giving guarantees on an annual
basis, six were for from fifty to
fifty-two weeks unconditionally,

:should

the

ardent advocates.

plans were on

issue," continues the

"Since this

wage

ing modification of this idea have
been
tried
by
some
companies

in¬
dustry
in
the carry-back and
carry-forward provisions of the
lowing the war's end; and to

annual

conception.

new

parity for two years fol¬

at 90% of

Laudable

Objectives

in

worse,

cago

thq. past

Southeastern

which has,
among

13 years, and the
Group Conference

in past years, rotated

various

southern

cities.

The announcement is made by
M. Brock, Dayton,
of the

League,

W.

Ohio, president

THE COMMERCIAL

1180

Dividends Announced

(Continued from first page)

tically all industries output Of course, the pressure for
per man hour has increased constant improvement of pro¬
cess

stantial number of industries

ress—will continue to be tre¬

prog¬

relatively simple mendous. Whether human in¬
to measure productivity, out¬
genuity can continue to offset
put per man hour has not in¬ —indeed much more than off¬
where it is

creased

at

all,

during the

war

set

declined

but

it must to meet the

as

quirements

period.

the reduction

—

of human effort

Any decline in productivity

re¬

men

appear

willing to devote to produc¬
marked and relatively con¬ tion is a question which must
stant increases in man hour give us all our moments of
Returning
productivity in existing cir¬ deep uneasiness.
cumstances
must
be
taken to the automobile industry,
or

failure

even

show

to

take

this

factual

account—
seriously.
The
which apparently is not seristeadily rising wage scales,
the greatly abbreviated work ously contested, probably
week, and the steadily mount¬ could not be—of what is hap¬
ing investment required to pening in the shops of these
maintain employment for one corporations.
According
to

very,

very

the New York "Times" such

man—these and allied devel¬

instances

opments of the past decade or

scribed

make it

imperative that
man hour productivity mount
rapidly and relatively stead¬
ily if stagnation or rapidly
rising prices are to be avoided
in the post-war years. Econ¬
omists have got into the habit
of describing the great in¬
crease
in production which
more

followed most of the
the 19th century,

wars

of

and which

One

and

thirty-eight
through
an
plant in "protest" be¬

parading

automotive

management

cause

de¬

were

"daily occurrences":

hundred

workers

State

these

as

as

wanted

the

safety laws obeyed.
drivers refusing

Tank-test
test

their

track

tanks
too

was

because it

because

the

to
test

dusty; after wetting,
too wet.

was

A worker who grabbed a fore¬

by the throat and branished

man
a

knife.

1944

will

dividends

in

the

such

and

losses

of

out

advices

paid

13,000

off

which

Jan.

on

anywhere
of the face

$1,000

value

of

during them.

competent.

What many of
realized, or at
all events have not always
made clear to their readers, is
the fact that this increase in

production
stantial

in very sub¬
the result of

was

part

steady and at time
growth in populations.

rapid

Three hundred
ers

beating

up

"howling" work¬

a

the

typical

the

labor-relations

men

guards, destroying an office, in¬
cluding furniture and records.
Six girls threatening to beat up
another girl if she did not "quit
working so hard."
A

drunken

worker

striking

a

superintendent.

Post-War

The

the

total

amount

current

available

distribution

is

for

$288,-

Productivity

The rate of

population

growth of the

in

States has been

reached

declining for

a

now

relatively low fig¬

Most students of the sub¬

ject
cease

25

United

decades, and has

many

ure.

the

expect
to grow

population
to
at all in another

30 years. They can pre¬
dict with a large degree of cer¬
or

tainty that With this decline
•

in the rate of increase of the

population, the
of the

average

age

American people will

become greater
sult
that
an

The
the

re¬

appreciably
smaller proportion of the
peo¬
ple will be in those age groups
when

productivity is at the
highest. If we are to have a
rapidly rising total produc¬

four

threat

union

days to force
of

a

wanted

enced girl on

take the

six
the

because

inexperi¬
the seniority list to
an

a

a

production worker to

foremanship.

two

or

three

decades.

in

actively

are

the

"Planned

Spending and Saving" educational
program

sponsored jointly by the

American

Bankers

Association,

tion,

and the War
Advertising
Council, with the cooperation of
the Treasury Department.
The
reports that 1,200 banks are
already sponsoring the campaign
in

shop committeeman re¬
fusing to cooperate when a fore¬
requests

their

have

workers

to

work

overtime and make up for produc¬
tion lost through a breakdown.

Stoppage

resulting
when
a
worker is disciplined for making

communities

own

requested

of

which

than

more

and

12,000

was

advertising

material,

prepared by the War
Advertising Council for use in

local newspapers.

This material
the

banks

in

advertising
which

was

the

offered to all
nation

in

an

campaign book,
through As¬

copy

mailed

was

sociation

A union

would

transfer

upon

both

held

subject

was

and

tax

follow

Court

in¬

trust

that

it

did

to
not

within the special provision

come

which permits only partial taxa¬
tion of such transfers where there
is present some
"consideration"

law

money

fers where less than full consider¬

ation
to

was

present were held not

apply.
a

companion

Wemyss

decision,

held

transfer

ble

The

the

Supreme

to

gift a
$300,000,

an

irrevoca¬

as

amounting

trust.

to

case

the

taxable

made in the form of

trust

a

was

set

up

by Charles E. Merrill, resident of
Florida, and was made prior to
his marriage. In return, the

was

com¬

to

pros¬

pective wife
had
released
all
rights that she might acquire as
wife

widow

or

property,

in

Mr.

except.

Merrill's

the

right

to

maintenance and support.
On their

gift tax return for the
agreement, Merrill and

year of the

Mrs.

Merrill reported creation of

the trust but claimed

tax

no

was

due.

It was
urged that relin¬
quishment of marital rights con¬

stituted

"full

sideration."
sustained

and

adequate

con¬

The

Supreme Court
position of the tax

the

collector that the transfer should

consideration."

overruling the lower court,

be taxed

as

gift.

a

channels.

It

includes

mats of advertisements to
appear
in newspapers, as well as
sugges¬
tions
for
advertising by direct
mail

and for counter distribution.

"The Planned

ing"

Spending and Sav¬

educatioft^L-program is

en¬

Contrary to the popular concept of "darkest Africa/' the
Belgian
Congo, Central Africa was depicted on March 7 by the speakers on
the Business Forum Radio Broadcast as one
that definitely invites
the interest and attention of U. S. business
men, a country that has
been making vast strides toward
modernization, and is rapidly raising
its standards of living, its educational and
health facilities.
This
picture

of

the

Belgian Congo as^

market for American trade and

a

for

resort

a

the

tourist,

war,

American

painted

was

post¬
at the

mercial
would

relations

be

Horn

the

after

the

war

natural

result, Dr,
the wartime

believed, of
-Congo Government,"

Forum of the Commerce and In¬

trade. Y"The

he said, "is convinced that

dustry Association.

Counselor

the

Belgian

Government,

Dr.

Max Horn, who is also head

of the

Congo

of

Belgian Congo Purchasing

Commission in New York; D. T.
Bloodgood of Balfour, Guthrie &

Company, Ltd., and Dr. Paul II.
Brutsaert,
head
of
the
State
Laboratory of Tropical Medicine
at
Leopoldville, Belgian Congo,
were
the speakers, with Gerald
LeVine, Association Director and

Chairman

of

Committee,
"As

the

as

Foreign

Trade

moderator.

regards
States

has

cive to

the

Congo

become

its

most

a

pol¬

condu¬

importers

familiar

welfare

of its people.
have
become
American makes,

with

and Congo exporters have learned
to adjust the
grading of various

products to
ments

of

the

especial require¬
American market.

the

The

Belgian Congo Government
consistently favored private
enterprise."
Mr. Bloodgood em¬
phasized the importance of palm
has

oil,

Belgian

Congo's
imports," Dr. Horn declared, "the
United

icy of free trade is

one

ports,

of the

to

Congo's chief
manufacturers

our

wartime metal goods.

thoroughness

of

ex¬

of

Due to the

the

Chairman of the board of The Na¬

a

knife

in

the

furnaces

during

working hours.

Labor

leadership is almost
tion, in the years that are incredibly short-sighted and
ahead, per capita production utterly without any real sense
(which is
obviously some¬ of responsibility, even to the
thing quite different from welfare of its own groups, if
output per man hour) must it supports or even condones
increase a good deal faster such behavior as
this.
If it is
thah it has been
during the really unable to put a halt to
past

Banks of the nation

cooperating

place of "a worker who

motion of

of

gift tax

reducible

Spending Importance of Belgian Congo Products to
Saving" Program War Efforts of United Nations Stressed at Forum

And

pieces

strike

learned her job too well."
Start of a strike to prevent pro¬

man

with the

in

the

gift

not

In "Planned

ABA

times

that
the

to

agreement

for loss

her marriage.
The Supreme

Reports Banks Active

smoke" in violation of

ouster of another welder.

her

of the

purposes
was

Hence, provisions permit¬
ting the partial taxation of trans¬

involving

$14.9,465, the stock

which

come

In

tion, the Office of War Informa¬

shop rules

it

Supreme
by Justice

case

a

valuable

a

to

value.

the

although "less than adequate and

shop committeeman telling
an inspector: "I'm
telling you and
the inspectors they (the workers)
can go anywhere
they want to and
and contract provisions.
A crew of welders
striking

of

in

the

made

pensate

full

the Office of Economic Stabiliza¬

A

He

home

buyer with a
mortgage will re¬
ceive a payment ranging from
$9
to more than $99, and on a
$10,000 mortgage from $18 to $198.

for

Court

delivered

was

consid¬

recogniz¬

support a con¬
tract, the Tax Court had held that

we

by Mr. Wemyss after
agreement made with Mrs.
Wemyss before their marriage.

$5,000

small

group of
and
plant

opinion
was

Valued at

pending upon the credit balances
in the groups involved.
In these
groups,

which

an

$1,000, de¬

per

from

about

while

ing that marriage

said

advices

notions"

Hence,

consideration

there

where

transferred

and

mortgage to $19.83

transfers

Frankfurter

1944, had a
they will re¬
from $1.81
per

ceive

Com¬

the taxability of a stock transfer,
made
by William
H.
Wemyss.

1,

balance

of

Washington

In

The

in group accounts

credit

"Journal

its

Court

The

mortgages

were

eration.

quote continued:

and who will receive these

dividends

advices

sense."

who have
in ad¬

persons

their

to

"technical
in

"donative

a

Court

vance

had said that the Federal tax law
is not limited by any common law

intent," the Su¬
"Congress in¬
tended to use the term 'gifts' in its
broadest and most comprehensive

state:

"The

York

to

preme

also

relativelv ouicklv to"
Tw0 workers
relatively quicKiy to man out of the throwing a foredoor because he
the
injuries sustained had been told

them have not

is

and

approximately $83,000,Mutual Mortgage In¬
surance Fund to pay future losses.
We a^e now in a position to begin
making
mortgage
prepayment
The

Supreme Court followed the
reasoning of the Tax Court which

of

meaning

indicated

from

limited

the

dividends."

the

of "gifts" subject
Supreme Court on

scope

States

the

can

bu¬
reau; it is pointed out in these ad¬
vices that, rejecting a lower court
ruling by which gifts would be

income

000."

by management to
replace another foreman held in¬

merce"

has

in

000

is

the New

Housing Act.
"For the
years," Mr. Ferguson
said, "the FHA has paid all ex¬
under this section of the Act

Involving

ap-«>-

as

not business trans¬

are

within

This

five

now

of

ordinary speech."

Mortgage
established
by

National

penses

tax

arrange¬

actions

Congress under Section 202 of the
past

that

the United

man

devise that

payments to mort¬

Fund

gift tax law,

defined

ments which the will

gagors from the Mutual

Insurance

Federal
5

plying to "all, the protean

next

days, FHA Commissioner
Abner H. Ferguson announced on
Feb. 24.
These it is indicated 5re
first

the

March

6'0 to 90

the

Taxation of Gifts

on

Taking the widest possible view of the
to

during
mortgage pre¬

receive

payment

1945

Stock Transfer

Administration

tended
xenaea

heal

Supreme Court Rules

Overrules Lower Court Decision In Case

13,000
home
buyers who paid off in full mort¬
gages
insured
by
the
Federal

Housing

technological

as

Thursday, March 15,

Approximately

and mechanism—what is

much less than hourly
wages—indeed, that in a sub¬

known

U. S.

Mortgage Prepayment

The Financial Situation

very

FINANCIAL CHRONICLE

&

it then

we

Congo oil
supply: producers, he indicated, U. S. steel
to the mills have a full year's
supply on
Congo reached about $30,000,000, hand.
as
against less than
$6,000,000

tional

worth

dorsed

by W. Randolph Burgess,

President of the American Bank¬
ers

Association, who is also Vice-

New

City
York.

.

Bank
He

of

New

said,

"We

York,
must

largest

In

single

1944

tive

of

goods,

vehicles

mainly automo¬

products in 1938."

savings—the planning of spend¬
ing and saving by the people.

from

These

advertisements

well

seem

to

us

adapted to use
they are
designed to help us do our share
keeping the dollar sound and
avoiding inflation."
.

.

.

in

must conclude that

exports

and

somehow stimulate and encourage

the

of

source

American

United

mineral

As

oil

importer
States, he said
an

the Congo last year shipped more
than
one-third,
or
$80,000,000

Canada Extends $15 Million
Credit to Czech .Govt.
Under date of March 2, Associ¬
Press advices from Ottawa
stated:
ated

worth, to this country.
Both Dr.
Horn and Mr. Bloodgood stressed
the' vital
importance of Congo

announced

products

ment had

to the

war

effort of the

Finance

Minister

today
been

J.

that

L.
an

Ilsley
agree¬

signed to provide

United Nations. "The entire popu¬ $15,000,000 in credits to the Czech¬
Witb the shorter work week the wage-earners concerned which
It
was
hamper it, the greatly lation of the Congo, white and oslovak Government.
which
has
apparently now are no longer willing to sub¬ swollen
negro," said Dr. Horn, "has exer¬ signed yesterday by Mr. Ilsley and
money supply, and
cised its utmost efforts towards Dr. Frantisek Pavlasek, Czecho¬
grown to be a part of our mit to that measure of disci¬
the quite evident
tendency of supplying the needs of the United slovak Minister.
"
"mores," this can mean only pline (self imposed or other¬ the
day to concoct all sorts of Nations."
Its
The credits are to be used for
output, for ex¬
one
thing. That is that output wise) that is essential to col¬ schemes
whereby loose credit ample, in copper, tin, cobalt, zinc, purchase in Canada of supplies
per man hour must be greatly lective
productive effort of and money management will
for rehabilitation and reconstruc¬
manganese, uranium, radium, in¬
enlarged after the war.
first class effectiveness.
tion of Czechoslovak
seek to
economy as

offset

When, however, we study
The disinterestedness of
the situation, it is not
always labor leaders generally in
easy to feel a great deal of productive
efficiency, their
encouragement on this score. readiness to do many things




want

of

pro¬

ductive performance certain¬

ly do not, when taken in con¬
junction, offer a promising
post-war picture.

dustrial
was

yond
a

diamonds

and

shown to have

what

seemed

palm

oil,

soon

been far be¬

as

The

possible after liberation.

loan

will

possible only the rate of

few years ago.

Expansion of U. S.-Congo

to
com-

nine

years,

bear
and

interest
is

repayable

annual instalments. Y

at

for five

in five

Volume

Number 4368

161

rHb

;

tUMMivKClAL

Insurance Business Exempt

From Ant^Triist B
Laws UniiS Jan,, 1948; Bill Signed by President
Senate of the Confer¬
ence report on the'bili exemoting insurance business from the anti¬
trust laws until Jan. 1, 1948, President Roosevelt signed the bill on
March 9.
The Conference report was adopted by the House on
Feb.

Francis

Walter,

"(b)

issued

Act.

related

statutes,

noting the House action

on

report, the Washington ac¬
Feb. 23 to the "Journal of

the

count

Commerce"

the following

had

to

regarding the bill:
In its final form the bill (S. 340)

say

ex¬

agreements to boycott,
intimidation, or acts provides for a moratorium oh ap¬
plication
of
the Sherman and
of boycott, coercion, or intimida¬
tion, until Jan. 1, 1948. The pur¬ Clayton Anti-Trust acts, the Fed¬
eral Trade Commission Act and
pose of this moratorium period is
the Robinson-Patman Act to the
to permit the States to make nec¬
business of insurance until Jan. 1,
essary readjustments in their laws
cept for
coercion,

or

in order
conformity

with respect to insurance
to

■.

bring

into

them

1943.

It also

provides specially after
the Sherman Act, the

with the decision of the Supreme

that

Court in the Southeastern Under¬

Clayton
Act
and
Trade Commission

writers Association case.

"After

the

the

moratorium period,
laws

anti-trust

certain
applicable
busi¬

and

related statutes will be

in lull force and effect to the
ness

pf insurance except to the ex¬
assumed

tent that the States have

responsibility, for the regulation of whatever aspect of the in¬
surance business may be involved.
It is clear from the legislative his¬
the

.

tory and the language of this
that the
Congress intended

act,
no

date

Federal

the

shall

Act

be

applicable to the insurance busi¬
ness "to the extent that such bus¬
iness is not regulated by State
law."
These
a

provisions represent
compromise between the

two

distinct

House versions of in¬

Senate and

legislation which the con¬
ference committee was appointed

surance

permit private rate fixing,
forbids,

tend to

which the Anti-Trust Act
but

willing to permit actual

was

regulation of rates by affirmative
action of .the States, i
bill

"The

to

It provides an oppor¬

the States.

for the orderly correction
which have existed in

tunity
of

eminently fair

is

abuses

business

insurance

the

in

regulate
with

manner

a

Supreme

the

and

pre¬

right of the States to

the

serve

consonant

Court's inter¬

pretation of the anti-trust laws."
In advices from its Washington

bureau,' the New York "Journal
Feb. 27report¬
ing the acceptance of the Con¬
ference report by the Senate said:
Cpposition to the conference re¬
port was raised by Senator Claude
Pepper (Dem., Fla.), who asserted
that the proposal invalidated the

S:

of commerce" on

handed down

decision

the

by
that

last April

Court holding
is in inter-State

Supreme

insurance

Pepper contended that

Senator

had pro¬
vided
for permanent exemption
of
insurance from
the Federal

The Senate had sought

ation Act.

appli¬
of the Sherman Act to in¬
moratorium

the

end

to

cation

on

It

June 1, 1947..
believed the conference

on

was

.

ed

as

routine by the

adopt¬

Senate.^ Ob¬

regarded the bill in its
form as acceptable to the

servers

final

Department of Justice and there
was little doubt that it would
be

Fresident Rbdseyelt/;

signed by
The

text of the bill follows:

by the Senate
and House of Representatives of
the United States of America in
"Be

enacted

it

Congress assembled, that

the Con¬

gress hereby declares that the
continued regulation and taxation
by the several States of the busi¬
ness of insurance is in the public

the
shall not be

that silence on

and

interest,

part of the Congress
construed to impose
the

to

regulation or
by
»
' *

business

such
States.

(a) The business of in¬
and

surance,

barrier
taxation of
the
several
any

every

person

en¬

Federal laws while the States per¬

taxation of such business.

would completely

nullify the effects of the Supreme
Court decision.

conference
per,

(Dem.,

Downey

/Sheridan

Calif.). Theodore F. Green

(Dem.,

1.), Joseph F; Guffey (Dem.,
Pa.), Harley M. Kilgore (Dem.,
W. Va.), Lister Hill (Dem., Ala.),
James E. Murray (Dem., Mont.),
and John H. Overton (Dem., La.).
The conference report was de¬

R.

'

..

Pat McCarran
("Dem., Nev.), Homer Ferguson
(Rep.,
Mich.)
and
Joseph C.
0'Mahoney:;(Dem., Wyo.), mem¬
bers of the conference committee.

fended by Senators
Z

The

conference

moratorium on
Sherman

^acts,

be

bill

grants

a

application of the

Clayton Anti-Trust

the-Federal Trade Commis-

Act

and

supersede any law enacted by

State for ftrp purpose of reg¬
ulating the business of insurance;
or
which imposes a fee or tax

It also

provides that the Sher¬




Fair Labor Standards Act of 1938
the Act of June 5, 1920, known

as

the Merchant Marine Act, 1920.
"Sec. 5. As used in this act, the

'State'

term

several

the

includes

Hawaii,

Alaska,

States,

Puerto

Rico and the District of Columbia.

"Sec. 6. If any provision of this

the application of such
provision to any person or cir¬
cumstances, shall be held invalid,
the remainder of the act, and the
act,

or

of such provision to
circumstances other
than those to which it is held in¬
valid, shall not be affected."
made

House

and

our

action

Senate

is¬

on

the'

such business, unless such
specifically relates to the busi¬
ness of insurance:
Provided, that

1948, the Act of July
2, 1890, as amended, known as the
Sherman Act, and the Act of Oct.
after Jan. 1,

15,

1914,

the

Clayton

as

amended,
the

shall

business

extent

that

of

Business Communica¬

"Sec.

3.

(a)

the Act of July

2, 1890, as amend¬

known

as

the Federal Trade Com¬

turing

Co.

of

Conn.,

Government

NAM

tions With Greece
on

March 5 removed its ban on com¬

mercial and business communica¬

with

tions
6

on

March

communica¬

cable

and

postal

and

Greece

tion service with that country was

thus removing Greece
category
of "enemy
country." Associated
Press
ad¬
vices from Washington March 5
restored,

the

from

also stated:

tions

cial

information

commercial

and

business

of

establishment

reports

appropria¬

eliminated;

that

cies.

meetings

Pointing
present

that

out

under

together had
25

persons,

a

be

the

with

including

the phases

•

the

in

in¬

terest of national solvency and the

"The Budget Bureau in practice
confined

com¬

request,

'

years.

integrity

is

spending
and

appropriation

That Congress,

"7.

should

review

agen¬

unexpended balances from

previous

staff of

messengers, to
today's $100,000,000,000
budgets, "Industry's View" said:-

spending critic.

year's

segregated,

each

all

on

examine

a

spending

plete information given Congress,

stenographers and

;s not

all

That each

"6.

the Appro¬
priations Corfimittees of the House
than

from

should

arrangement,

Its power
generally

of legality of func¬

of

and

the

for

wasteful

credit,

to re-examine

now

Government

plan

method

nation's

the

begin

whole

the

structure

immediate

most

eliminating outworn,
unnecessary
func¬

and

tions."
need for "cutting away war agen¬

cies

that

the

seven
experts
Appropriations

each
a

few months criti¬

year's work of the

a

View"

"Industry's

they become

as

and

social

from

unnecessary

the

agencies

remaining
depression
there is
great
danger
that
many
such
growths appended to the Govern¬
.

.

.

ment structure; will become

partment planners."
The
National
Assoc'ation

ognized
of

"1.

critical examination of all

appli¬

cations for appropriation.
"2. That a joint committee
ered

to

direct

the

cial

operation

of

"Even

ued

of

rec¬

It

established

govern¬

In

finan¬

orderly retirement

an

the

im¬

the

interests

much

Government,

national debt and

In the interests

of economy, the whole of Govern¬
ment must have a 'streamlining."

of

revenues.

beyond the age of usefulness,

either by reason of duplicatipn or

empow¬

whole

expenditures to its

the

in

national progress.

of

*

of

democracy,

Government

be

must

brought under legislative controls.

with full powers to relate Govern¬
ment

a

system."

ment, practices are being contin¬

That

Congress employ an
expert staff, adequate for making
a

of the

part

concluded:

Manufacturers specifically recom¬
mended:

the

stressed

entire Budget Bureau and the de¬

"3. That

In addition, as soon as necessary

arrangements

be

Congress should require itemized

with ^Govern¬
ment finance and tax groups.
The
recommendations were approved
by the NAM Board of Directors.

contacts.

banking

budget
.

should

to-coast

Congress immediately be

Treasury licenses will no longer
be required for exchange of finan¬
and

classifications

Government

That lump-sum

Spending
Committee
developed
the:7-point program after coast-

cally review

Department

Treasury

in

procedure.
"5.

Naugatuck,

'30-man

the

ate cannot in

"Now is the time to catalog and
mark for pruning the wasteful or
non-essential
ment

phases

of

Govern¬

spending."

be

can

made, support remittances not ex¬
ceeding

ported,
in

a month,
it is re¬
be sent to individuals
banking chan¬

$500
may

Greece through

nels.

Treasury. licenses will still be
required to send instructions or
authorizations to effect financial
property transactions.
action does not affect the

or

The

of

status

United

assets

Greek

in

the

States.

Treasury officials said they are
considering resumption of com¬
with

munications

have

already

other

Balkan

communications

Business

areas.

been

restored with

Italy, France, Belgium.
Poland, Finland and the' Baltic
region stretching between Poland
liberated

and

Finland.

$7,500 LT'mit

Insurance

on

Sold by N. Y. State

Savings

Banks Proposed in Bill
A bill

now

before the New York

Legislature would increase
to $7,500 the maxi¬
amount, of
life
insurance

State
from

$3,000

mum

that could be sold to an

individual

by.

insurance,

$3,000.

up

to

a

limit of

According to a statement

by the Savings Bank Life
Insurance Council of New York,
49 savings banks throughout the
State now offer this service and
issued

over

iS

$45.000 000 in life insurance

now

more

in

RFC Acts to Assure Small Business Credit-Will

Take Up to 75% of Loans

force

on

the lives

than 40,000 persons.

of

Through Credit Fool

The Reconstruction Finance Corporation announced on March

1

far-reaching

change in its lending operations designed "to assure
ample credit for business and industry, particularly small business
for reconversion,"
In addition to its established lending procedures,
a

the

corporation will co-operate with regional credit
are
organizing throughout the country, it was

pools which
indicated in

banks

Associated Press accounts

life

Until Jan. 1, 1948,

Dibble,

A.

President of the Risdon Manufac¬

system of accurate

a

standardized

installed

Committee in the House and Sen¬

not

regulated by State law.

Lewis

by

budgeting should be discon¬

and

directly under the President.

guiding

business is

such

applicable

tinued, and

obvious

Treasury Ends Ban on

to
the

be

and

departments and approved
the Budget Bureau—working

to

insurance to

amended, known as
Act, and the Act of

"4. That the present ambiguous
of
Federal
accounting

govern¬

by

Headed

war.

tions and their conformity to ad¬
ministration policy. ... It is more

savings banks in the: State.
The legislation was introduced by
State Senator Pliny W. William¬
son
and Assemblyman Harry A.
Reoux
and
would
amend
the
statute
of
1938
permitting the
banks to write over-the-counter

Sept. 26, 1914, known as the Fed¬
eral
Trade Commission
Act/, as

of

personnel

ment

of

bill.

in

planned

methods

861 to earlier

of Feb. 22, page

sue

in

be

now

swarming

fewer

was

should

ing

ex¬

anticipation of the end of the

and Senate

Reference

of

to

persons

or

mediate cessation of deficit spend¬

Congress to

urges

adequate staff

an

application

upon

act

the

-1, 1948.-

amended,

as

any

Robinson-Pat- ed, known as the Sherman Act,
man
Anti-Discrimination Act to and the Act of Oct. 15, 1914, as
amended, 'known as the Clayton
the insurance business until Jan.
Act, and the Act of Sept. 26, .1914,

•sion
.

and

No act of Congress shall
construed to invalidate, impair,

"(b)
or

against the
report were Mr. Pep¬

Senators who voted

■■

of June 25,
known as the

_

committee report would be

gaged therein, shall be subject to
the laws of the several States
which relate to the regulation or

their laws

amended,

as

.

surance

permitting States to regulate and
tax
insurance
and granting
a
moratorium
on
application
of
fect

1938,

The

legislation

Original

"Sec. 2.

commerce.

the National Labor Re¬

as

1935,

lations Act, or the Act

resolve.

to

for monopoly
Trade
Commission Act and the
or
for boycott, coercion or in¬
Robinson-Patman Anti-Discrimin¬
timidation.
Congress did not in¬
grant of immunity

5,

or

In

application of the anti-trust laws
certain

Sherman

the

under

prosecuted

my

Congress last week.
This
bill
grants the
insurance
business a; moratorium from the
and

agreements of boycott,
or intimidation may
be

of 1 July

spent to win^-

dollars

police the appropriation
applications
prepared
by
the

perts

of insurance of the Act

business

of

war," and

employ

the application to the

any manner

or

coercion

the

passed

the

known

Acts

approval to
340, the insurance bill, which

S.

boycott, coercion, or in¬

Nothing contained in
shall be construed to affect in

act

ance.

a

agreement

any

"Sec. "4.

after that date if States have not

saying:
given

inapplicable to

timidation.

regulation and taxation of insur¬

have

on

re-examination of the whole government struc¬

a

to

ture

criticism

Clayton and Federal Trade
Commission acts may be applied
adjusted their laws to provide for

"I

March 2 called for

boycott, coerce, or intimidate,

1947, to Jan. 1, 1948.
offering his signature to the

statement

Nothing contained in this

act of

from June 1,

Roosevelt

7-point program designed to help Congress curb nonessential

a

to

extension of the moratorium date

President

In

government spending, the National Association of Manufacturers

or

Act

man,

In

to

Representative

Pennsylvania, author of the leg¬
islation, said the Senate conferees
agreed
on
the House-approved

bill

or

act shall render the said Sherman

of'*

Democrat,

insurance

in the conduct thereof.

acts

"plan the most immediate method for eliminating outworn,
wasteful and unnecessary functions."
The Association's "Industry's
View," outlining the program, emphasizes that "there can be no

With.the House approval of the report

E.

Act/ shall not apply

to the business of

vote of 68 to 8 accepted the report

23, while the (Senate by a

Feb< 27.

on

crimination

1181

NAMProgram Designed to Help Congress
'
| Onrb Nonessential Government Spending

Anti-Dis¬

the. JRobinson-Patman

Following the adoption by the House and

-

as

June

of

CHRONICJR

amended, and the,
19, 1936/known as

mission-Act,
act

FINANCIAL

&

on

that®

date from

—

Washington which also
had the following to say:
RFC will take up to 75%
of
such
loans
made
through
the

give the Smaller War Plants Corp.
broad lending powers, and another

credit

pools, when the pool man¬
wish.
That is, if- a credit pool under¬
takes to make a $10,000 loan, the
RFC, if requested by the pool
managers,
will supplement the
amount
by $30,000, for a total

serve

$40,000 loan.

RFC advised Congress that it, will

extend

to

period

the

reconversion

of the Federal Re¬

banks to guarantee loans.

RFC

agers

into

powers

announced

that

will

it

*

for

Procedure

"automatic

par¬

ticipation" by RFC with credit
pool members will be made avail¬
able through the RFC's 31 loan

in

agencies.
The new plan goes
effect immediately.

charge 4% interest
of

the

loans

and

on

will

its portion
allow

credit pool banks to

6%

for

charge
participation.

their

It is stated that

require
the

about

next

fiscal

on

the

up

to

March 5 the

$1,498,000,000 for
year to carry on

which it
is ^financing.
Washington Associated Press ad¬
vices March 5 reporting this, said:
John
D. Goodloe,
counsel; for

subsidies

borrowing

the

around $14,000,000,000, has been accused by some
critics of not making enough loans

ing

The RFC, which has

authority of

to

small
The

vorced

businesses. " ■/.

agency

from

has
the

Commerce

partment by Congress.
Henderson

is

"

just been

di¬
De¬

Charles B.

Chairman

of

the

approval

of

legislation
which
expend/
in the twelve months ^fter
30 up to these ceilings:

would authorize subsidy
tures
June

Board.

.

policy apparently
strikes a blow against the several
proposals for other governmental
agencies to lend money—or guar¬
antee
private
loans — to small
The change in

is

a

bill

in Congress

to

-•

•

*

tC1

Foreign

purchases other than
ruHb^r. $60,C00.000: meat, $600,000,000; butted
$100,000,000;
flour,
$190,000,000;
petroleum,
$290,000,000;
copper

rubber, $70,000/>no:

and-other

businesses.

There

told the Senate Bank¬
Committee this was an1 in¬
of
approximately $255,000,000 over expenditures in the
current
fiscal
year,
ending, on
June 30.
He asked Congressional
RFC,

crease

minerals.

$88.00d,000,

and miscellaneous, $100,000,000."^'

1182

FHE

CUMMLKLlAi

time

American World Policy
And P
(Continued fr

and

munitions

and

to

first

>m

to early, complete winning of the
war.
Each new quota of supplies

realize

meet

nor

law

types

of

men

battle

promptly met.
ten

the

to

V version

together

;

We must not lis¬

siren

until

call

in

of

peace.

recon-

reconvert

can

we

Each

:

new

battle must be fought with vigor
and with skill.

that

rests in the

We
But

Must Think

it

Peace

of

opportunity

the

world

policy
of
America for peace, lest we lose
much of what we are fighting for.
As you know, the President has
invited

to

me

serve

as

of the United States
the

San

the

United

Francisco

Third:

Nations,

I

and

of

have

will

be
my
endeavor
to
and to learn as much as
possible erf the information, ideas
and viewpoints of the
people of

at this Conference.
I
consulted and will consult
leaders of

our

skill

I

will

not

seek

them

any

of

to represent
special groups

as

whole

and

I

to

of

which

this

will

crucial

be

that

cannot

vidual
too

of

not

or

be,

Views.

But

I

agreement is to do nothing at all.
And nothing at all would start us
our

along the short road
of inaction, to worldwide
depres¬
sions

way

and

to

tragic world
That

is

the

next

most

not

an
i-

acceptable

principles

come

be formulated

actions

in

which

the
and

will
to

clarified

tempered in the heat

of

free

discussion now, so that they
may
.-be clearly and
definitely set be¬
fore the'world.'

pose

to

citizens

Points

of

World

Policy

•

To stimulate this search,

speakfor
myself,
I
state
.frankly what I consider should be
^

'ing
the

only

cardinal

seven

points of

First:

That

as

a

will

we

our present allies at San
Francisco to build a definite con¬

tinuing organization of the United
'Nations of the World, based on
justice and law, and insured by
That

we

velop gradually
level

of

will

functions,

and

and

That

-tinue

to

'"happens

be

in

the .globe.

Nor

can

de¬

higher

with

will

are

tribute

and

man¬

will

interested

of

mean

more

than

who

than

made

mere

a

them

words,

a

symbol, the veritable
keystone to a living cause and
hope for mankind—Wendell Willkie.'

Second:

That

we

in¬
we

leave

to
it

nation

the

suc¬

own

as

do

not

in

rights,
of the world,

permit
of

government

wish

permit

to

our

so

trans¬

seek

to
any

study,
other

actively

to

each of these car¬
points could well be the
supject of a major address. With¬
dinal

do

not




sub¬
na-

eve¬

It is very
an

should

generally agreed now
international organization
be formed
and
that the

United

Nations

basis of such

World

should

an

be

am

that

a

I

Form

one

of those who feel

organization

certain

believe

detailed, exact form.

there

that would be
ward

take

are

forms

many

definite step for¬
would
make
a
con¬

and

a

structive contribution.
I

some

method of developing basic world¬
wide law.
It should make
pos¬

sible

the

future

fundamental
The
small.

enactment

code

of

beginning
But

even

of

a

law

that

no

a

human
may ;

if

started with the enactment of

law,

we

country,

be
we

one

in

of

Just

na¬

tion

world-wide

a

in

have

steps

months

recent

fulfillment

lantic

it

of

Charter

study

enforce

the

respected

and

this

U.

been

first

the

and

powerful
Let
If

a

the

all-

police

clarify

25

thinking.

our

to

years

there will

make

war,

be another world

no
organization,
or
union, or treaties will
But I do not believe any

or

these

make

gain

countries

will want to
Each knows the hor¬

war.

of

rors

Each has

war.

much to

so

by

a

not making war.
Each
great future in the peaceful
of
its peoples,
its

development

and

resources

its

standing in the

world.

They will not always see prob¬
They will not always

lems alike.

please each other. But in the main,
they must and should work out
their differences
of views
and
find the way for joint action.
Yalta Conference was a

The

very

indication

policies

im¬

this

that

and will be done.

can

Clearly, then,

should

development

be

of

based

the

on

world

with

these three nations desiring
peace.
A

note

of

caution

should

sounded, however, that
should definitely envisage a
of

laws

moral

code

force,

and

and

must

development of
tem

of

justice

supported

which
this

world

ductive
has

not

and

continuing

a

a

police
permit the
and

power

sys¬

force

effective

an

of

territories

of

use

that

or

or

lasting

joint

And

guarded
may

ing

drive

place

Nations

the

of

title
The

the

should

of

any

results

the

both

peonle

be

The
of

the

and

safe¬

Let

us

also

United

the

of

long

successful

a

necessary

This

will

the

world.

Nations

to

world

our

We

They

peace.

The

for

only

the

devotion of our government, the
approval and support of the pro¬
posals by the Senate and then the

steady

growth

of

United

and

development
organiza¬
tion, responsive to changing world
conditions, will be essential if we
the

a

have

to

Nations

anything

precarious beachhead.
lose

never

static,

a

not

serve

than

more

We must

bution.

a

of

the

and

new

be

good

a

step

but

diate

from

I

do

face

not

want

the

that

ter

vested

off

to

American

raising
and

their

This

vented
conflict

but

be

not

we
had to cling to
principle of absolute,

sovereignty."
an

There hiay
who

do

not

acceptable

That

to admit it;

are

there may be

by and
the

who

but

do

the

absolute,

it

not

extreme

world

beyond

their
and

nationalistic

is of centuries gone
is dead.
It died with

arrival

of

the

airplant, the
radio, the rocket and the robomb.
In

the

its
new

place we must develop
principle of the rights

duties and responsibilities of each
nation to the other nations and of

or¬

No

nation

woman

has any right

without
its

regard

actions

to

upon

as

the

the

of

living
jobs in

the

of

war

^gnta

peoples
charity

emergency

to

want

want

homes

own-

a

the

do not want

They
They

own

mean

Most

to

rebuild

and

develop
It is healthy

economy;

will

it pleases

of

peoples

of

:;

long-term in¬

mean

vestments and reinvestments.
Nor is this all

Never
sake

own

just

did

idealistic

an

country for

a

need to clear the

more

country for its

a

own

Never

sake

more

appraise the value and the
of its great productive

strength.
If

it

does

its

use

wither

a

if

But

it

it
in

petty,

the

over

for

will

divi¬

economy.

contributes

to

the

of the world it will itself

progress

share

world,

struggles
shrinking

and

eyes

brawn

its

deteriorate

and

internal
sion of

and

the

of

its

lift

not

brain

progress

in

that

standards

of

in high
richer life

progress

living,

a

and peace.

This is also true

ples.
one

Any

with
soon

will

fail.

temporary
be lost in

war.

tinued

We

If

it

success

meets

it

will

either the whirl¬

pool of depression
of

of other peo¬

attempt to profit by

nation at the expense of other

peoples

or

the cauldron

cannot

have

con¬

warfare

economic

and

continued military peace.
Room

The

effects

self-

wholesome for them and for

But it

to ihe

in the

con¬

be

the world that they should.

under¬

prin¬

in¬

various

develop

not

role.

answer.

be many diplomats
know it; there may

be many political leaders who

.afraid

standards

does

Claus
of the

of

"We could have pre¬
the" development of this

bet¬

be

America.

country

and say,

war

is

in

cobwebsTrom its thinking.

to

of

America, in the process than that
it
be
sterile
and
stagnant
in

purpose

horrors

It

capital

reinvested

indirectly

need to

the

investment

countries of the world to assist in

did

another generation of youth

marching

to

and

are

problems of distri¬

careful

and

issue squarely.
my

race

we

of other nations.

its

meet this

the

as

capita] in the long-term develop¬
ment

nationalistic sovereignty.

us

great

as

to

race

period, but this
definitely
separated

be

dream.

Let

human

post-war

should

it

Nationalism Gone

The

consumers.

Vast sums of charitable assis¬
tance will be needed in the imme¬

would violate the rule of absolute

Extreme

to produce.

means

wealth of the future.

unchanging peace can¬
a
dynamic, changing

develop¬
higher level
of
government
you
frequently
hear
the
rejoinder,
yes,
that
would

But

ditions.

discussion

a

the
own

a

their

mentv of

of

our

can either fight
shrinking wealth or work
together to participate in an ex¬
panding
production
and
the
over

reliant.

fact

parts

preempt

are

be acute

that

sight of the

world.
In

will

the

develop

We will create markets

develop

we

we

of the human
Of course there

jump¬
hard

be

will

we

explode
if

other

capacity

just

problems

will

must

that

in

just

first step.
Continuing interest of
the American people, continuing

each man and each

organization

require increased in¬

view

Produceis

other people of the world.

that

stabil¬

by American capital in
resources
and
facilities
of

is

conference

United

clear

for world

steps

ity.

consume

importance,
they will not be the final an¬

but

swer

modern world to do

make it

but

we

eyes to its opportunities
responsibilities and take the

the

victory.

trustee

the United Nations

if

war

our

and

of

will be of incalculable

enlight¬

world

of

one

title

victory.

an

progress after the

lift

'It

de¬

; equally
great
for world construction and

power

produce.

for

toward

of

form

ganisation itself.
the

be

capacity

also, the beachhead is not

off

ciple

carefully.
or

a

sovereignty

rights

be either

Nations

and lor

can

for

power

a

win

the final goal, but only the

peculiar economic
seizure
from
an

nation.

human

concerned

It

in

pro¬

of America.

a

portance and requires many sacri¬

it.

in

interest

to

as

fices and unlimited determination.

people

United

than

upon

peace.

many

a

to¬
are

striking facts

enormous

huge

a

markets.

The beachhead is of crucial im¬

-

stand

enemy, can best be held in

the

in
for

ac¬

demonstrated

tne

capacity

struction

as

look, therefore,

opportunity

military im¬
inability of
self-

or

government,

ened

just

extreme

portance,

a

the San Francisco Conference

will

and

trusteeships for

governing

Conference

"Beachhead"
We should

The United Nations should also

rather

with the
of
the

peace,

Francisco

the extreme

National Trusteeships

its

injure its

Use

most

been
is

been

world
San

nationalistic

of

has

war

production

sys¬

without law.

position,

the

narrow

we

by

limit

Capacity for

World
of

United States Senate for the steps

also

be

tem

Productive

One

throughout
us to the

overwhelming
support
people of the country and of the

are

portant

brought

recognized, at San Francisco.

and

war,

league,
stop it.

discussion

have

So it will be, and so it must be

the United States, or
Great Britain decide in

must

other nations and increased trade
with lower tariffs
throughout the

state.

super

or

next

then

has

This

an

either

Russia,

of

mean

international

us

nation

that it does not

so

S.

car¬

commit¬

beachhead in the battle for

maintained.

must

Nations action in

justice is to be

definitely does not

man

vestments

and

the

free

for the drafting of a definite
framework for continuing United

golden

of

each

as

toward

ence

,

decisions

por¬

neighbor.
And in one world
day, the nations of the world

of the San Francisco Confer¬

eve

type witn world-wide juris¬

force of

and

America

of

Police Fcree Mandatory

a

sovereignty on a
place of the na¬

all heghbors.

ments of

Clearly
Court

in

his

each

so

of

dinal point of our world policy.
With the background of the At¬

court to ad¬

Nations

future

liberty of action so that
does not injure his
neighbor,

he

seek

we

cornerstones

have

to

are
a

laws.

these

individual

hope that it will include

the

world-wide

It is equally clear that a
police
force of some nature is mandatory
to

level

proposed.
if

diction is essential.

reasons

must

taken

his

With

that

war.

unjust confiscation of

United

a

method

the

the

must have

develop

Organization Requires
not

of

we

some

the

organization.

Set
I

very

scribe to the extreme view of

time, this

ning, I will discuss them in turn.
that

developed.
stated

minister

the

own.

in the limits of
my

be
be

Obviously,

our

of

these

on

Tremendous

across

sovereignty
people

they must exercise

of

world

beginning
for order and justice and peace in
place of chaos and tragedy and

property.

That

form

associations

On the contrary,

stability

health and education and the pre¬

citizens

own

other

they

not

undermine

our

any

government
will

or

their neighbors.

gress upon

learn

each

themselves

trample on
or
threaten

human

the peace

but

for

will

form of government

they

will

but

peoples

decide

their

basic

world

the

to

to

long

to

to the

adequacy of our econ¬
That we will explain our

system

rights.

-V,

,

of

economic

an

as

marched

Union* of

Secretary Hull's Confer¬
From small
beginnings, grad¬ ence at Moscow, the declaration of
ually the rights of freedom of Teheran, the proposals of Dum¬
worship, of fair trial, of freedom' barton
Oaks,
the
decisions
at
of speech and press; the right of
Yalta, the President's excellent
the worker to organize and the
message
to Congress last week,
prevention of discrimination and the never-ending wholesome

and

con-

what

I

him

democracy

a

with

citizens and

our

some

in

other part of
That this is one world.
every

pay

to

and pro¬

are

constantly to improve
the functioning of
our
system:,
both as to freedom and equality

future peace,

well-being of

we

the

seek

worldwide

speak those last two
without pausing to

words

more

to

a new and

jurisdiction, for the
•progress

kind.

seek

government, with legisjudicial
and
executive

'latiVe,

in

in

Obviously,

nation

join with

force.

Nations

power

we

remain

our

future world policy.

stripped.
to
remain

system of private capital and
dividual
enterprise.
That

we

Cardinal

war

so

United

police

free

al¬

years

other

Seventh: That

omy.

our

ag¬
be

world.

«

guide

were

shall

to make

means

propose

furnishing

.

importance

Hitler

the

tion

through treaties and friend¬

build

to

thgt Nazi
started, not

actually

to

welfare

of

True

limit

ships.

borders, but rather when he first
ruthlessly trampled the rights of
men within
Germany.

the

Britain, China and France

the

cess

It is of tremendous
that
the

and

and

war.

ternative.

;

Great

say

emphatically that the alterna¬
finding the broad areas of

when

and

in

not

well

court if order and

war

remain

we

and

and

cannot

school

strong on land, at sea and in the
air, and will join with Russia and

course,

tive to

on

That

person's indi¬

any

this

shall

and

be, entirely in accord with

nation's

any

will

in

stripped of all

conference

means,

result

the

through

vital' factor

a

Sixth: That those who

supported

This

the

antl

radio

as

believe in

we

information

of

gressors

by the
overwhelming majority of the
people of America and by sub¬
stantially all of the other United
Nations.

aggression

full

Commonwealth

nor

various

tions

nation.

a

definitely not adverse

British

nations.

in the people and the
that for their owri

know

tionalistic level.

the world level.

on

vention

of

nity of man.

be

individually respon¬
sible for my actions.
It will be
my aim to assist in securing a
result

standards

peace and progress of the world
and in the fulfillment of the dig¬

my country as
its best welfare,

see

That

and

press

forum

at San
I will consider it my

as

the

of

being within

know

then,

freedom

duty to represent
a

We

laws

Fifth:

to,

claim

nor

Francisco.

society

self-respecting men and women1 of
dignity and of pride.

Republican party; of church, of
labor, agriculture and business;
of women, of youth and of vet¬
But

of

and

not

code

were

rests

exist¬

Republics,
nor
to
the
United States of America, nor to

them

they

other

na¬

of

Soviet

laws or rules against aggression,
for. the flight of aircraft, for the
use of ports and canals, the restric¬
tion of armaments, the availability
of resources, the advancement of

technical
contribute to the gradual

to

human

a

should

of

reservoirs

credit

but

shot
moral

every

It is

any

up

in

now

the

Ger¬

This silhouettes starkly the tragic
slowness of the development of

should

the

use

of,

in

breaking

associations

peoples

Nations,

any international law,
because there is none to protect

living of the peoples of the world,
as recipients of charity, but as*

government and of

my

erans.

the

and

and

advancement

with

will

we

productive capacity

America

capital

have

up

That

Fourth:
enormous

"questions coming

the

on

and

and children of the world.

women

study

America

that

peace

with the future welfare and peace
and
happiness of the men and

accepted.
It

consider

we

happiness of the people of Amer¬
ica
is
inseparably
intertwined

delegation to

Conference

That

the future welfare and

member

a

houses

summarily

violating

know

we

who

their

and

stormtroopers
dragged civil¬

mean

and

the

to

violating

law of

a

from

were

modern

humanity
beyond the (narrow
rule of nationalistic, absolute sov¬
ereignty.
That man is in truth
and in fact endowed, not by the
nation but by the Creator, with
certain "inalienable rights."

"^nd you at home, proceed to think
through

nation,
can be a

and

above

itself,

presents

this

Nazi

Gestapo

ians
many

people, and that there

is and must be

is

right and proper and
urgent that we in service, when
the

neither

The

law

Thursday, March 15, 1945

stable

ence.

world

no

not

the

realize

to

such

is

of

tions

fail

we

does

step.

significant

a

sometimes

hold that true sovereignty

we

be

there

and

thai

any other nation
unto
itself in the

That

shall execute a
without just trial,

We

that we are willing
a limited portion of
our
national sovereignty to our
United
Nations organization,
so
that it may be effective in
the
tasks we expect it to accomplish.

-

would

today.

sovereignty,

CHRONICLE

peace,

being

that

world, and
to delegate

be

must

it

page)

tionalistic

the fluctuating needs of the shift-

,

;

£ ing

for Peace

of

human

F1NANG1AJL

<x

For

world

gether and

All

must

there

is

Peoples
advance

to¬

room

the

m

world for all the peoples who live
it.

in

.

.

World

,

opinion is almost ur.ani-

Volume

the

that

mous

THE COMMERCIAL & FINANCIAL

Number 4368

161

the

and

Germans

be stripped
of
their means of making war. This
can
best be done by joint action
of the victorious nations through
Japanese

the

must

Nations

United

with

organization

continuing joint
tion and inspection.
a

occupa¬

Under that military rule
demnities and

all in¬

penalties and rep¬

arations should take place.
and only

Then

then the gradual devel¬

opment of self-government should
be

permitted to. ar.se.
It should
begin m the localities and in the
schools and slowly develop as the

capacity
and
desire
for
nonaggressive; peaceful and success¬
administration

ful

is

demon¬

strated. *

successful

for

egy

It

take: time

■

the

citizens
be

information

of

these

of

countries
rule.

fundamental

a

children

the

to

of

the

must

Open to

Germany

and

Japan and Italy the full access to
the

radios

and

publications and
books of the world, and if we are

basic concepts in
America, and I believe we are, in
a generation or two we will have
a different Germany and a differ¬

right

in

our

When the change is
demonstrated, they should be per¬
mitted to become self-governing
ent

Japan.

and be

granted membership in the
organization, but even then
there is no reason why they should

permitted to re-arm, and there
is every reason to prevent them
from re-arming.
We will be say¬

it

makes

In

peace

On March 3,

mocracy

discrimination

is

there

tion.
that

our

there

are

They

right.

are

is

facts

these

of

world

front

they
I

speak not of
of

not

turned

greed

will

God,
courage and

But,

the

have

vision to

definite standard

the

to

strive

then

is

in

migntily towarci that

airforce,
train

We should do

Park

be

this to fulfill the

enforcing

in

ours

and

his

Washington

of

to

returned

March 8, where he
immediately with

on

supporting the world code of jus¬
tice and the United Nations Or¬

conferred

ganization, and also to assure our
own future security and progress.
We
should
make it plain
that

Those calling at the

much

we

as

will

we

fight anyone who basi¬

world

violates

cally
seeks

much as
will fight again

want peace,

hate war,

we

and

justice

and

policies ami
substitute might for right.
flout

to

tries to

said

likely to maintain peace
than an announced policy of mak¬

more

ourselves weak and of not
fighting even though provoked.
To those who scoff at thoughts

(Wash¬

Press

Associated

the

can

ator

the

war**s

still

President

The
best

From

the

McCormack.

advices we quote:

same

abstract

and

we can

so

get some men

power,"

some

Senator

the

added.

And I add that

with just as
much hard-shelled realism on the
I will

work with you

A full

day of engagements w*?

Daniels,
assistant, with 12

Jonathan

of today and with just
much down-to-earth practical-

as

ism

on

the problems of tomarrow.

But

determine
question of the

ideals will

our

the all-important

take.
scoffers

basic course that we

need

We

today.
Men to assault the

not

We need men.

of
lethargy—the em¬
placements
of
prejudice — the
spitting
funs
of
intolerance.
Men" who are willing to fall in
pillboxes

assault

the

carry

to

so

the day.

build

others

that

It will take

the world.

make

and

and
or

not

women

mere

of man¬

freedom and lib¬

erty and peace living
men

that

It will take

that to raise the standards
kind—to

may

symbols to

and

children,

words in speeches

in charters.
Our

that is

as

America

world policy for peace

*4«*Cinite and us




the

presented.

to

part

Chief Executive

the

confer¬

Congressional

the

after
ence.

The

Rangers

ciiiei

C—-

with
of me

amu)

the

Presi¬

from

came

Joseph Stilweiu,

Hyde

Ground Forces.

resolutions

conventions,

and

dent

had

returned

Park, where he arrived by special
train
last
Sunday
morning,
parked

change of policy. Rarely

a

Second

cf

ence

the Maintenance

of Peace,

1

rectly

»■

indirectly

or

and

peace

Use of armed force to prevent

of

ideal

liberty

constitute

which

for

1936.)

mediately,

in¬

ternational policy.
(Inter-Ameri¬
ca n
Conference tor the Mainte¬

of Peace, 1938.)

nance

sion

during

war

in

means

of

of mutual
find

to

order

peaceful cooperation in

the event of war or threat of war
between American

ter-American

countries. (In¬

Conference

for

as

act

any

interferes

the

present

state

of

war

ef¬

fort of the United Nations to

ob¬

tain

with

the

Henceforth,

victory.

and

with the view that the principles
and

herein

procedure

shall

with

conform

stipulated

the

institu¬

tional principles of each republic,
the respective Governments shall
take

the

steps

necessary

to per¬

facilitating

sion

the

•,

•

and

Peace

.

•.That for the purpose of meeting
threats

of

acts

with their constitutional processes,

or

against

American

any

of a treaty establishing procedures
security and J whereby such threats or acts may
establishment;1 he met by:

its

security and solidarity of

by

by an
or

The

by all

or

of any qpe or more of the follow¬

ing measures:

non-American State,
Recall of chiefs
American State against missions;
American States.

Breaking
tions;

diplomatic

diplomatic

of

rela¬

Breaking of postal, telegraphic,
telephonic, radio-telephonic rela-

amongst

equal

of

.Breaking of consular relations;

DECLARATION
First—That all sovereign States

juridically

of the

of aggres¬

a

more

some

signatories of said treaty thereto,

PART I

are

use,

the

to

against any cf the American

States

themselves.

\

Second—That

every

State

Interruption of economic, com¬
and financial
relations;

has

mercial

right to the respect of its in¬
dividuality and independence, on
part of the other member
the international community.
the

>

War

of

sider the conclusion, in accordance

extent by an act

same

one

Problems

recommends:

conti¬

the

an

continent are affected

the

as

./•The Inter-American Conference
on

the

procedure

consultation

inasmuch

of aggression or threat of aggres¬

of contributing to the gen-

7. The

American

and the standard of its

principles and

ration shall become effective im¬

s.vstem of world

era!

and justice

the

the

procedure contained in this decla¬

peoples, and endangers the great

principles

repel aggression.
Sixth—That

effective

these

American

of

nations

civilized

all

'

;

Interruption of economic, com-:
mercial and financial relations;

in order to
solidarity be¬

constitutes

I of

threat of war affects di¬

or

rela¬

aggression
republic
following
the
establishment
of
peace,
the Governments of the
American republics should con¬

of

the

which

the

r means

(C) ,The recognition that every
war

diplomatic

of

?;

lations;

of

act

have practiced

nent,

of American States, 1933, and

Conference

an

Affairs, Havana, 1940.)

tween

Confer¬

affaire

as

furtherance

The

secure

cnerncr.

International

Seventh

6.

States

ognition of all acquisitions made
by force.
(First
International
Conference of American States,

extprn?.l

diplomatic

Breaking of postal, telegraphic,
telephonic,
radio-telephonic re¬

Meeting of the Ministers

principles,

torial conquest and the non-rec¬

i

considered

of Foreign

of terri¬

The proscription

chiefs, of

of

any

be

i

(A)

as

includ¬

a

aggression against all the Amer¬
ican States.
(Declaration of the

the following prin¬

declarations,

(D) The
that

Announcement

Third—That

every

use

force

to prevent or

PART III

attack of a

the integrity or the

State against

of armed

of repel aggression.

and

declaration

This

recom¬

territory, or mendation
provide for a regional
against the sovereignty or politi¬
for
dealing
with
turn from visits of that sort been
cal independence of an American arrangement
(E) The recogn i tion that every
made public.
When asked the act susceptible of disturbing the State, shall, conformably to Part matters relating to the mainte¬
^eason for the change today, Mr.
nance
of international peaces and
peace of America affects each and
III
/hereof, be-^considered as an
Danields said:
every one of them and justifies
security as are appropriate for
ac / of aggression Against the other
"We felt ttyat* where security, the initiation of the procedure of
the

since

is

not

began has his re¬

war

involved,

security

should

not be invoked.

"As

out

along

go

to

come

endanff^c'rg

there

can

be

a

had the

relaxation

of

experience."

Daniels

added,

that the policy

Presidential

however,

for

the Maintenance

uetween

origin,

stricted

shall

Stm.es

be

American
its

nature

settled

arbitration,

or.

by
or

na¬
or

the

unre¬

(Inter-American

Conference

shall

case

that acts

aggression occur or there may
believe that an ag¬

the

said

Western

arrange¬

to

with

therein
the

shall

purposes

principles of the general in¬

ternational

of
i

Fourth—That in

be reasons to

and

there¬

constitute an act

in

and

referred

consistent

be

by treaty

aggression.

of

cedures

trespassing

established

-

ments and the activities and pro¬

State into the

another,

action

Hemisphere

invasion by

case,

and marked in accordance

through

of international jus¬

of

boundaries

with,

regional

whi/h sign this declara-

tioms\In/any
territory

of conciliation,

the operation
tice.

the

whatever

tions,

of

armed forces of one

1936.)

(F)_ That any

methods

of not announcing
trips
in
advance

wnuld he continued.

of Peace,

inviolability

1936.)

(Inter-American

consultation.

piue

the

some

rules that seemed essential before
we

Maintenance of Peace,

Conference

through the
point where
experience has shown that, with¬
we

we

war

Mr.

fighting men want

to have a

in

Camp

in the
Prison
Philippines being

took

who

Rangers

Action

.Our Ideals Require

by

administrative

emergency

have

Inter-American

capture of the Cabanatuan

grand scale.

of

or

"That's

grand scale that it has today, it is
thne for some thinking for peace
a

States

incorporating in their inter¬
national law, since 1890, by means

been

conference.

announced

on

,

.

5. The'"American

■

control
jj.890.)
..
'
get as soon as possible; Snn
) The condemnation cf inter¬
Barkley reported after the
vention by a State in the internal

look out upon the world¬
wide tragedy of war today.
When
the terror of war has reached the
that you

peace;

That

of

shall

rights and the
international

of

maintainance

powers,

necessary,

attempt on the fect,this instrument-ifi Order that
non-American State it shall be in force at all times.
against the integrity or inviola¬
bility of the territory, the sov¬
PART II
ereignty or the political inde¬
RECOMMENDATION
pendence of an American State
.(J)

.

part

peoples, for the

manpower

these

like

more

their

of
ux

Eigh(h International Con.
i'erence of American States, 1938.)

in the
imperative
the union and solidarity

of

(Declaration
luecxcuciuuii

advisable.
auvxsauxe.

established,.Lima

American

the

circumstances may

the

case

make
mane

Vice-Presi¬ ciples:

were

Truman, Speaker Rayburn,
Senate Leader Barkley and House
Leader

ever

each

situation

new

effective

make

to

their

coordinating their
respective sovereign will by means
of the procedure of consultation,
the
measures
which in
using

_

being

are

v makes

defense

dent

ing

expressed tonight as
idealism, I simply ask

Congressional leaders.
White House,

ington advices)

our

position, I am convinced, is

This

Democratic

nations

than

a

Roosevelt

President

of

„•

i

and

their solidarity,

repeatedly proclaimed
fundamental
principles,

..

r

Principles,

concern

common

war

Breaking of consular relations;

case

determinatiion

Confer¬

Inter-American

4. The

four-days' visit to
at Hyde Park, N. Y.,

home

their

these must be reaffirmed and

world

(N.Y.) Home

Following

responsibility which

force

police
will

constantly

should

we

such

a time when the
'juridical bases of the community

President Visits Hvde

efficient land force.

an

(Decla¬

parties.

'

of their general

scope

Breaking
tions;

the peace, se¬
curity or territorial integrity of
any American republic is threat¬
ened by acts of any nature that
may impair them, they proclaim

[ proclaimed at
i

ourselves, should remain
We should maintain a

We,
strong.

the

o*

(I) That in

the

missions;

States,
and
treaties can
only be revised by agreement of
American

with

United Na¬

ing:

tween

contracting

acts

above,-

interference

be found

may

indispensable rule for the devel¬
opment of peaceful relations be¬

have

certain

goal.
Strong

that

desire

their

is

The

ences

ina 1 but

man

within

Recall

constitutes

Fourth

and

an

effort of the

war

and

indicated in Para¬

constitutional and

1938.)

treaties

of

declaration'

threats

tions, calling for such procedures,

International Conference
1938.)

3.

a

the

hereof,: the

this

as

Third

constitute

The

ance

aggression

graphs

affirmation that re¬
spect for and the faithful observ¬
(H)

Eighth

the

ra>*^

that wni api-ial

that

best

We

pray

the

wisdom and

ican States,

principles,
notwithstanding
the
present
difficult
circumstances,
may prevail with greater force in
future international relations;

the

of

II

Part

of

such

recognize

of American States,

It

in

mended

International Conference of Amer¬

of

2.

nar¬

in

Fifth—That during the war and

(Ninth

justice, remain sincerely devoted
to the principles of international

tomorrow's

aid

tomorrow

continental solidarity,
has been ex¬

tions and treaties in force.

f

they

measures

upon

until treaty arrangements recom-"

pressed and sustained by declara¬

to

agree

think that it may be advisable to
take.

historically

ration

and

and

intolerance

and

tomorrow.
may

selfishness

corruption

and

by

which

law;
be

re¬

of international order sus¬

tained

the

angelic.

There

that

peoples of the Americas,
animated by a profound love of

suddenly

race

recognition

the

for

sence

1. The

I speak

Utopia.

a

human

a

"We will permit you to
again
as.
successful,
selfgoverning,
constructive nations,
if you so desire, but we will not
permit you to rise again as a mili¬
tary
power,
whatever may
be
your protestations of intention."

powerful, modern navy.
We
should keep an alert, up-.o-date

of

Whereas:

In fact,

time.

same

dependent.

rise

Remain

act

to

American State constitutes the es¬

War and Peace.

on

in large measure inter¬

are

Peace,

personality, sover¬
eignty and independence of each

they think it may be
take." The full text

advisable

domestic

the

and

front at the

tions,

Should

an

waiting for the of the Declaration follows:
correction of these imperfections
Declaration
on
reciprocal as¬
before we step forward to fulfill
sistance and American solidarity
the world leadership which it is
by the Governments represented
mandatory that we exercise.
at the Inter-American Conference
We must advance on both the

rowness

We

as

State

for

reason

any

world

!

considered

be

measures

neither

But

American

an

sult amongst themselves in order

signatories

spect

tory states will consult among
themselves "in order to agree upon

distribu¬

faulty

aid

of

Maintenance

the

*"(G) The

aggression against the other
that States," and that in case an act of
and aggression shall occur, the signa¬

perfectly
and
maladjustments

sufferings
tions.

shall

right.

are

of

pendence

corrup¬

Some say
economic system has not

They

State

a

an

on

1936.)

of

against the integrity or the in¬
violability of territory, or against
the sovereignity or political inde¬

in¬

and

for

attack

every

of

signa¬
tory to this declaration will con¬

of^:

"that

say

equality and apathy and

"the Act

as

Chapultepec," in which it is stated

on

that our de¬
perfect and that

people
is not

be known

to

independence

American State, the States

War and Peace,
adopted a declara¬

the Inter-American Conference

assembled at Chapultepec Palace in Mexico City,
tion

political

or

"the Act

Chapultepec Which Provides for Solidarity Among American Nations
Resisting Aggression on Any One of Them."
Extends Principles of
Monroe Doctrine to Relations of Nations Within Western Hemisphere.

earth.
Some

Mexico City Promulgates

in

ing assault waves of cynicism this

hope of enduring

at

of

fact, ;* my

•

render before the counter-attack¬

best

Inter-American Conference

The

people.
They do not want you to sur¬

ing in effect to the conquered na¬

"t

will

it

countrymen, there is no alterna¬
tive for a just, a free and a brave

World

be

Pan-American Solidarity Pact

•

cost.

functioned
Freedom

.

and

gression is being prepared by anyother State against the integrity

strat¬

our

alternative

the

worlh

,r '•

'

•

But

been

war.

will

cost.

has

as

1183

CHRONICLE

organization

'when

formed.

.

This declaration and recommen¬
dation
name

shall

be

;known

by

of Act of ChapultepuC.

the

1184

rHE COMMERCIAL & FINANCIAL CHRONICLE

of

Sees Tax Changes Needed I f
To Aid Reconversion

operating

and

unused

Amortization of Facilities
"A

third

month

Asserts These

amortization

of

war

State, reflecting chiefly their large purchases of Government
securities, increased $3,329,271,000 in 1944, or 17.8%, to a record
high
of $22,052,833,000 at the year
end, according to a study made public
on March 6
by Elliott V. Bell, Superintendent of Banks. In.
helping
to finance the war effort these
institutions, he said, bought $2,734,303,000 more Government secur-<*>-

pro¬

facilities constructed un¬
der certificates of
necessity when
the facilities are determined to
have

Guaranty

Trust

Company

of New

York

calls attention

shortcomings in the provisions in
the present tax laws which are

three months' notice.

primarily aimed at aiding in the

ferability,

from

tional with the

wartime

a

to

peacetime

a

which

business

no

economy.
It
suggests
certain
changes in the tax laws relating

funds will

to these

These pro¬

purely

are

riod will be

the

most needed.

provisions which will af¬
greater post-war relief and

ford
be

effective in

more

"It

carrying out

the

aid

financial

needs

during

a

sequent year or two in which they

will

stand,

be

either

accomplish the
simple

they

could

be

really

made

be

promptly available to
in this way cannot be

industry
estimated

With

precision, but it
appears
that the aid would be
very substantial and would be of
particular value to small business
concerns

originally

have

been

expanded by
that without such

demands,

war

aid might find themselves unable
to

the

survive

critical

period of

transition."

the

"carry¬
post¬
of

the

law
permitting refunds of
previously paid taxes as a result
carry-backs of losses arid un¬

of

used

profits

excess

during

tax

credits

reconversion

the

period.

These

benefits, however, can be
obtained only by the filing of a
claim

for

refund.

Such

claim

a

"One of the means by which
Congress has attempted to proyide

cannot

after

profits tax credit occurs; and ex¬
perience indicates that the refund

financial

relief
to
corporations
war," the article points
out, "is the partial refund of ex¬
cess profits taxes.
Every corpora¬

be filed until the end of
the fiscal year in which the loss is
sustained or the unused excess

the

tion

paying such

post-war

credit

tax receives

a

equal

to

10%

a

of

the amount paid. The credit may
be taken at the time the tax re¬
turns

filed

are

in

amount

an

up

is likely not to be
paid

eral

years], later.

during which

Yet, in

loss

a

until

or

sev¬

a

year

Unused

an

excess

profits tax credit. is in¬
curred, taxpayers may be obliged
to

taxes based

pay

to 40% of the net reduction in the

in the

corporation's indebtedness during
the year for which the return is

on

operations

cruing

It is estimated

made.

30%

that about

of the total amount of post¬
credits has been currently

war

taken
ment

of

account

on

during

the

debt

retire¬

calendar

1942-1944."

years

/

Excess Profits Tax Refund Bonds

.Regarding the tax refund bonds,

within three months after the tax
is paid in full.
The net

post-war

refunds
endar

by

accrued

during the cal¬
1942-1944, evidenced

years

bonds issued

to

or

be

issued,

estimated at nearly $2 billion.

are

-"For

taxes

paid

in

1941

and

not

taxes

1944

and

three,

taxes

1945, the bonds

four

and

spectively,

after

and

the

hostilities,

mation

of

the

The

transferable
or

five

after

emergency.

on

end

date

of

President

governments do

an

of

date,

the

only

cessation

or

wi1,h the
not

cease

ing

on

excess

as

sorbed

be

date'
i

After
may
on

closely estimated.
business

crisis

if

refunds

made

were

promptly, since aggregate corpo¬
deficits in 1932, the largest

rate

deficit year
to

on record, amounted
only $7.8 billion, which is not
large figure in comparison with

the

corporate
It

war.

corporation
sition
'n

the

and

is

earnings

during

estimated

that, if

incomes in

period

should

period

ceding the.

war,

the

equal

tran¬

those

immediately

pre¬

between $2 billion

$3 billion in

carry-back

re¬

funds would be made available.

"While

waiting

for

such

pay¬

ments, however, taxpayers might
be forced out of business
by lack
should

may

be

operating funds.
be

This situation

corrected

provision of

an

through the

adequate method

by which taxpayers might offset
against current tax payments the
reasonably

privately

of

financed

for

necessity

which

struction

of

issuance

of

certificates

1944

that,

the

if

termination

the

emergency
should
be
claimed at the end of the

remain

of

pro¬

year,

estimated

tax refunds based

on

unamortized,

payable

would

amount

to

to

and

cilities

approximately

tended.

en¬

in

obtaining
certificates
of
non¬
necessity when contracts were ter¬
and

specific
facilities
thereby released from war pro¬
duction work. Moreover, the Pres¬
ident cannot be expected to
pro¬
claim the end of the emergency
for

of

purposes

erating

in

The

huge

Loan

of

counted

generally accel¬

amortization

it

until

is

abundantly clear that

a 'substan¬
portion of the emergency fa¬
cilities is no longer required in
the interest of national defense.'

tial

The law should provide an ade-?
quate method by which taxpayers

might offset against current tax
the
reasonably esti¬

for

amounts

of

tax

of

most

of the total

year

the

ac¬

overall

Government de¬

$2,861,672,000

gain in deposits.
De¬
of
individuals,

deposits

make

loans

to

$735,-

to

The

for

an

Com¬

loans

operating
operating

earnings__

Taxes

demand

was

so

strong

increase

an

in

year

aggregate

Net

in

of $1,759,-

largely

from the expansion in the securi¬
ties portfolios of the banks, v Net

interest

and

dividends

'securities

on

466,000

received

increased

from

to

$156,-

$129,093,000.

The

following
table
sets
forth
the
principal items in the earnings
showing of the State banks and
trust companies in 1944:

136,371,000

142,517,000

160.897,000

22,974,000

35,303,000

119,543,000

L

on

common

debentures, pfd. stock,

stocks—

profits after interest

125.594,000

and

their

on

etc.

dividends

on

stock

common

1944.

"During the year total deposits
increased by 16% in the institu¬
tions in New Ydrk City and by
14.2% in those outside New York
City.

24,526,000

2,212,000

2,033,000

41,300,000

capital-

42,611,000

76,031,000

———

"Of the 266 institutions in the
compilation, 197 paid or declared
in

151,275.000

112,693,000
29,824,000

-

—*

^

dividends

--

$287,(546,000

140,947,000

taxes—

profits

Net

1944

$253,640,000
_

income

on

of

these

"Mr. Bell said the
improvement
bank earnings resulted

operating earnings---,*——

Interest and dividends
Dividends

of
for

288,000.

:

expenses."'.

income—
net

on

in¬

total

a

1943
Current

80,890,000

increased by 13% and 16%, re¬
spectively, in New York City and
outside
New York City,
repre¬
senting the largest increase in
these funds in the last five
years.
"The
banking
institutions
in

New York City showed; a rise in
holdings of Government securities

Demand deposits of indi¬
viduals, partnerships and corpora¬

of

tions

their investments in Governments
at both ends of the

in

banks in

New York

City

increased by only 2.1 % and in •in¬

$2,326,674,000 to a total of $11,631,039,000. These banks reduced
maturity scale,
Treasury bills and bonds ma¬
turing in less than five and more

stitutions outside New York City
by 9.2%. These represented, sub¬

with

stantial reductions in the last few

than

years
in the rate of growth of
private demand deposits.
Private

Bonds

time

deposits,

the other hand,

on

payments
mated

Gov¬

of

the

represented

mand

the

$20,315,765,000.

in

rise in deposits.

posits

in

accumulation
late

industrial

securities

on

to

as

banking

deposits during the War

Drive

loans

rising

$4,127,840,000.

$1,734,919,000.

State-

engaged

$3,203,356,000
total

a

ernment

275

commercial

increased
to

the

other

delay

were

or

loans

resources,

$693,9-30,000 in the

institutions

current

considerable

minated

of

chartered

Net

Manufacturers have

countered

vices further said:

Net

may,
like
the
other
classes, of refunds, come too late
to
afford the relief that is in¬

total

$71,357,000

Profits before income

necessity

of

discounts

creased

lower

fa¬
of

60.7%

non-operating
income, cut the net profits for the
year to $125,594,000, a gain of 5%
over the figure for 1943.
His ad¬

taxes,

securities

ing by 25.8% to $13,366,479,000,
and

and

ac¬

certificates

Government

to

income

on

to

"While

depositors

of these institutions were increas¬

941,000

and

amortization of

subject

Net

mercial

Current

of

their

larger current operating

corporations

$2.3 billion.

celeration

in

to¬

year

of

necessity virtually ceased in Oc¬
tober, 1943.
It was estimated in

the

largely

was

completed by the end of 1942, and
the

that

expenses

"Deposits

The
con¬

facilities

war

time deposits of such
increased $220,411,000.

institutions

rise

operating,
earnings
to $136,371,000, against
$112,693,000 in 1943, a rise of 21%.
Mr. Bell pointed out, however,

is¬

were

10

falling

years

sharply.

maturing

in five to
10
years, and certificates and notes,
were

purchased/'"

refunds

based

on acceleration of
the amor¬
tization period, but in the absence

of such

modification in the law

a

administrative changes should

be

By the start of this

year more than 10,000 veterans or their
interviews with savings and loan
associations and
co-operative banks about G. I. home loans, and
1,054 had filed

families had

had

ap¬

promptly effected to speed-up the plications for loans totalling $4,689,057, the United
^and Loan League reported on March 3.
of certificates of non¬
This nationwideW-ganization has
just completed
necessity in

States

Savings

granting

specific instances."

largely depend¬

major

a

The to¬

sued is about $4.5 billion.
major part of the program of

A

possible losses and unused

if

issued.

facilities

the

current

gether with

of

under

should occur, losses could be ab¬

of

the

redemption




or,

are

profits tax credits after the

Even

at

Government

call the bonds for

con¬

ac¬

the

on

recoverable

cannot

war,

enemy

appropriate

for the purposes of the law.

such

the

become

Congress;

time, 'such date
as

re¬

interest

no

these provisions,

fixed by procla¬

in case hostilities

fixed

years,

negotiable

as

the

1943,

mature

bonds

current resolution of

same

in

paid

paid when due but
to

"Amounts

total

For

offset the

amounts of the refunds.

a

gress.

to

they must pay interest at
the rate of 6% per annum on
any

entitled

prompt¬

certificates

are

of

certificates

trary,

declared by the President

Con¬

allowed

amounts of the refunds have been
determined and paid. On the con¬

1942, the bonds mature two years
after the end of the
emergency as
or

Taxpayers

year.

refunds against assessed
tax liabilities or to postpone the
payment
of
taxes
until
the

the article states:

."The remaining post-war credit
is evidenced by non-interest-bear¬
ing bonds issued, in most cases,

preceding

not

are

value

the

"Refunds of taxes based

measure

post-war relief is the provision of

enterprises,
small, which

greatly

to

"A second intended

and to those

perhaps

reference

provisions to cover
losses, it is stated:

war

tal

refunds

back"

with

which

emergency

would

Carry-Back Provisions

The amounts that might

with

these

earning assets, said Mr. Bell.

the dura¬

on

and

war

of

from

amounted

about $3 billion of these facilities

recon¬

version.
made

or as a

maturity date."

effective instruments for cushion*

ing the financial impact of

available,

offset to the payment

negotiable
obligation of the Government, of
fixed amount and with a definite

quite feasible changes, how¬

ever,

immediately

as an

of current taxes

desired result. With certain
and

made

the

non-necessity

cancelled at the

are

Earnings

substantial, the exact

depending

law

will face their reconversion prob¬
lem. These post-war credits should

the

transition period. It is very doubt¬
ful whether these provisions, as

they

the

as

fighting in Europe can¬
not rely on obtaining any benefit
from such bonds during the sub¬

provisions designed to
industries
in
meeting

war

their

"contain

contends,

survey

number of

that,

end of the

laws/'

revenue

of

ness

evident

contracts

war

Federal

tion

stands, manufacturers whose

now

their objectives.
"The

is

amounts

when

partnerships
and
corporations
were higher by
$298,006,000, while

holdings to $13,366,479,000.

benefited

"Refunds resulting from this
shortening of the amortization pe¬

op¬

that

forthcoming

tal

be obtained.

years may

Government, give

assurance

be

ities in the year, raising their to¬

emergency value
of the 60-month

end

tion in prior years is so
increased,
a
refund of taxes paid for such

visions for redemption and trans¬

reconversion financing of industry

their

the

period. If the amount of amortiza¬

certain

to

lost

before

The Felb. 27 issue of "The Guaranty Survey" published by the

M

so

York

duction

Financial Requirements.

state-chartered commercial banks in New

resources

contended,

Measures, Together With the "Amortization" Allowances on War
Facilities, Cannot be Utilized in Time to Help Concerns Meet Post-War

of

17.8% In 1944—Gain In Net Operating Earnings
Total
of all

"is contained in the provisions of
law permitting acceleration of 60-

Relief

;

Resources of N. Y. Commercial Banks Increased

,;

potentially important

of relief," it is

source

Guaranty Trust Company Holds Excess Profit Refunds and the "CarryBack" Provisions of the Income Tax Require Amendments to Place
Business Concerns in Position to Finance Reconversion.

losses

profits tax credits."

excess

Thursday, March 15, 1945

Serious

After

Reconversion Problem

referring to other

lief measures,

tax

re¬

"Business

cannot

reconversion

from

tax

its

con¬

day,

weeks

of the United

after

the

forms

States

from

released

home

said.

the

the

position

private

and

post¬

corrected

and

contribution
national

war.

it exists to¬

as

of

in¬

Moreover,

distortion

gross

if moneys

the first two

Replies

which

1,536 institutions with 46%
of the savings and loan assets of

lected
volume

the country

showed that existing

multiplied

lending

institutions,

1944.

the

expect

may

full

to

have

their

the

occur

Treasury

and

even¬

hands

the program gains momen¬

as

tum.

The

League

further

says:

"Under terms of the
Act, the Vet¬

returnable

siphoned

off

to

and

acter
of

A

upon

uses

drain

the

of

of

this

working

gov¬

char¬

capital

private industry could not

sibly be

worse

are

appropriated

temporarily for the
ernment.

them

pos¬

in its timing than

"amounts of immediately following the
carry-backs sion of the war."

!

"

conclu¬

from

"The
means

of

isting lending institutions in order

plained.

the

making

anteed

than

loans must

4%

be

of

no-

to vet¬

Such guar¬
at

no

more

interest, have not

more

than 20 years to
run,, and must be

properties priced at 'their rea¬
sonable, normal value,' as deter¬
mined

by

appraiser in the lo¬
cality designated by the Veterans
Administration. •

a

the

to

money

build

new

Mr.

the

Administration

financing

a

new

and

are

a

total

Morton

amount

of

$194,055/'

Bodfish, Chicago, Execu¬

already

home for

a

vet¬

eran.

"Many

of

them,

on

the

other

hand, have been withdrawn at
the
suggestion of the lending institu¬
tion anxious to save the
veteran

have

for

1,054

savings and loan
associations list as
having been
applied for by January 1, have-by
now
gone through the
Veterans

loan

loans

to

ex¬

estimates

the time and
expense of
loan through the

37

pay

home," he

Bodfish

nvoqrram, i. e.. up to December
31, 1944, the reporting savings and

associations, closed

to

veteran

that several hundred of
loans which the

an

"During the first six weeks of

times.

many

ing institution has started
or

of World War II.

associations, the

loans has undoubtedly

government agency, and the lend¬

the

encourage

1945, for

pletely processed by the Veterans
Administration, the guaranty has
been placed on the
paper by the

out

erans

the

designation 'loans closed'
that they have been com¬

buy

to

months of

data have yet been col¬

no

Administration will guaran¬
tee portions of loans made
by ex¬
erans

down-payment home loans
can

rightfully belonging to

corporations

through

the law provides for all of
G. I. loans to be processed,

on

tually

Savings and Loan League,
He indicated that
during

loans under the Servicemen's Re¬

which

prosper

and

the situation
a

be

to

maximum

after

years

imperative that

timing
is

jobs

<

period

received

is

employment

with

furnish

refunds

It

faulty

come

in

be

industhry

make
to

to

bonds.

this

if

the

cash

later

six

been

from

during

war

first

survey of the

adjustment Act-of

the "Survey"

cludes:

with

institutions

had

a

horned
during the tive Vice-President

thri"^an„d

experience of the

lending

putting

process

as

the

appraiser turn

it

being-above 'reasonable,

mal value of the

a

only to

property.' "

down
nor¬

Volume

N; Y. Stock
■

*■

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4368

161

Exchanges issue New Margin Rates From Washington

5*

^

*

t

No Margin Accounts Permitted

a

'

Low Interest Hales Will Not Stimulate

*

■

Shares and Bonds

on

Selling Below $10. Minimum Margin of $1,000 Required."
Method of Margin Computation Prescribed.

Ahead Of The News

Building Activity, Says MRA Preside*!

exchanges,
to
keep
securities^
speculation within bounds, a di¬ made to bring the equity in the
was issued by
the Board account up to $1,000.

(Continued from first page)
in the past.
The pontifical ex¬
plainers of Dumbarton Oaks are
now explaining
that, of course, if
in the future, any major nation
wants to go to war, there will be
no way of
stopping her, not under
Dumbarton Oaks, San Francisco

of

depositing
securities
10 in answer to a

or

resulting

so

we are

is

that

In line with the

policy of the Federal Reserve Board and of the

administrative authorities of both the New York Stock and the Curb

rective

Governors

the

of

New

York

"When

Stock Exchange, and followed by
a
similar
announcement of the

selling
margin

over

Curb Exchange, effective March
5th, that prohibits the margining
of accounts for stock selling at or
under $10 per share, and fixing
the
minimum
margin
require¬
ment of an account at $1000.
A

from

new

similar ruling

was

made

on

bond

purchases.
The aim of the new
rulings which lays down strictly
the

methods

to

be

followed

in

computing margin deposits on ac¬
counts, was announced by Presi¬
dent

Emil

York

Schram

of

New

the

Stock

Exchange last week
address to the New
Brokers,
he
strongly urged them to use their
influence
to
keep
the market
within proper bounds.
The Fed¬
eral Reserve Board has already
when, in

an

Customers

York

similar

taken

margin

action

by raising
to 50% on

requirements

requirement

security transaction,
share must be considered
as margin on the deposited secur¬
ity in order to detemine whether
$10

a

per

it has sufficient value to meet the

margin requirement. However, the
securities
deposited
must
also
meet
the
maintenance
require¬
ment.

"When

computing the margin
required to be maintained in the
account, all securities are to be
given full value, subject to the
provisions of Paragraphs (d) (1)
and (2).
"No

withdrawal

curities

selling

of cash

customer

a

The

of

text

No.

the

order

(M.

issued

233

by

F.

withdraw cash

follows:
"To

"1.

Members

and

Member

"2.

$10

invites

of

550

of

the

Member

attention

your

Board

of

to

Gov¬

amended.
The initial
requirements of this Rule are ef¬
fective at the opening of business
March 5, 1945. •
The changes in
ernors,

as

the maintenance requirements are

effective

"After

as

to

new

of the

copy

accounts

amended

V

"Paragraph (a), of the amended
Rule, among other things, estab¬
lishes an initial margin require¬
ment of 100% of the market value
for each stock

long in the account
below 10, plus $10
per share for each stock long in
the account selling above 10, for
at

New

be withdrawn provided

margin

"3.

Withdrawals

any

stock

selling above $10 per share.
"Only the margin required on
the new security transaction need
be

obtained, assuming the account
has the maintenance margin re¬
(b)

the

with¬

An

outstanding New York Stock
Exchange margin call due to a
transaction

new

vent such

"In the event

not

pre¬

be

a

withdraw^ on the same
of t'he

day regardless
Paragraph

provisions
provided the

(a),

contains

account

the

minimum

maintenance

margin
after
the
withdrawal, giving full value to

all securities in the account in
cordance

the

with

other

ac¬

provis¬

of the Rule.

ions

to

account may

an

within

be withdrawn

reasonable

a

period

of

"The Rule does not

of

an

prohibit the
account from
no

out-

stahding margin call.
"The
initial
margin
require¬
ments do not apply to the ac¬
counts
of specialists
which arc
used solely for their transactions
as specialists, or to special omni¬
bus accounts.

of the

Maintenance Margin

liquidation of securities in the ac¬
When securities under

10

sold the full proceeds may be

applied against the requirement.
liquidating securities sell¬

"Paragraph (b) of the Rule sets
forth the maintenance margin re¬

quirements.
"On

'long' securities
margin has been

the

from 30%

25%

positions
changed

of the debit belance to

of the market

over

must

be

10

sufficient

"The

margin requirements
'short'
positions ■ remain
changed.

sold to

on
un¬

tial

the ini¬

margin requirements.

"Any margin account which ef¬
fects a new security transaction
must have an equitv of at least

"Paragraph (d) (1) of the Rule

of securities

having a market
in determining the

value below 5

value

of

Securities

'

'

for

margin,
rf

$1,000.

purposes.

ne^d

"Paragraph (d) (2) of the Rule!'
relating to Puts, Calls and Other
Options, remain substantially un¬
changed. However, members are

cost

However, the customer
deposit more than; the
of the security purchased.
not

"The deoosit of a security sell¬

ing at or below 10 will not satisfy
a
margin call resulting from a
new security transaction or commiimentv However, such deposit
will satisfy

the amount of the call




taking action
of these major na¬
the offending na¬
tion can veto any concerted action
against it.
It does not mean, for

tions

reminded

up,

example, that if Britain an<!Mhis
should decide that some
action against Russia is necessary,
they may not take that action.
But they do not do it under the

the

margin

up.
They just do it.
something they can do

This international

however,

will

against

there

course,

when

time

Which

is

there

mortgages

after the war and
his own sta¬
tistics, it appeared that there must
be

around

these

10 V2

billion

institutions

logically
life

into

go

vestments.

boost

in¬

companies

operating

appraisals

of

properties

higher than is economically sound

Actually, he said, the

insurance

factors

some

which,

unless
carefully
watched and checked, will pro¬
duce disastrous inflation.
Among
them he cited the tendency
to

could

mortgage

are

today

dollars in

which

bringing

commercial properties under rent
control.
He added, however, that

Mahan

said that based upon

from

alone

long-term viewpoint.

a

Duty of Supreme Court to ^oinfam Balance
Of Power Between Federal and Loeal Govts.

be

deterrent

a

nations. * Of

has

been

never

one

of

two

or

a

the

major nations could not be a de¬
terrent against a smaller nation.
The trouble has been in the major
major nations making
up its or their minds as to what
they would' do. This was the case
when the Japs went into Man¬
churia,
when v Italy
went
into
Ethiopia, in the matter of the
or

Spanish Civil War.
It

not

was

nations

major

security
organization, or on a commission,
or members of a league or what¬
not, they simply couldn't decide
what to do, notwithstanding they
not

being

in

a

with

communicated
on

other

each

the subject.

f

The question of an

international
police force has fascinated many
of
us. '? It
has caused some so-

seqred.

In¬

deed,
this
whole
international
pageantry has caused them to see
red, and caused them to attack it
as something entangling us in for¬
eign alliances.
They could do a
much
better service, it would

by pointing out that it is

seem,

force,

international

this

we

are

that

mean

contribute

forces to

police

told, that, of

now

doesn't

it

would

we

armed

our

international

pool to
be stationed at Geneva, a place
in Asia or anywhere else.
It sim¬
an

ply

means
that
armed forces as

have

we
we

have

our
the

in

past; Britain has hers, Russia has
hers, etc..
.

.

But we would have a

cial

Federal

and local regimes, George
Pennsylvania, and a leader of
against the conversion of our
highly organized central government with

Government

the

and

State

Wharton Pepper, former Senator from
the American bar, warned on March 7

political

into

system

a

little regard for

local self-rule. His^
remarks, it was reported by the ject.

unduly

New York "Herald Tribune," were

if this

made at

Municipal
ther

Bond

The

Mr.

Business Failures in Feb.
r

lows:
Subordination

local

and

State

of

of

to Washington
said, to an unrep¬

national

different
Mr.
of

names.

Supreme Court, early this
to review lower court opin¬

State and local gov¬
bonds exempt by statute

Federal

Every gain off this
ward

the

between

State

governments

'

without

finance

be

When

that

by

organization

highly so¬
as
the

known

United

Nations, Inc., or something
of the sort, a far more fashionable
thing than we ever had in the
League of Nations. A small coun¬
try acted up. The United Nations,
Inc., would meet amid great fan¬

as

ernmental

He

well

to

men

such

to
scan

proprietary
ordinary gov¬

bered

proposals for

could

voting

take

from

our

government.
This
the other

is what the delegates of

In

place by the heads of the govern¬
ments talking to each other 011
the
telephone
or
through our

nations

would

have

This

do.

to

the initial

due to

requirements

set

o

mar¬

in

forth

Paragraph (a) of the Rule.
"Paragraphs

(d)

be

(a)

C3)

and

securities

in

margin

accounts,

have been

changed by the addi¬
tion of the words 'transaction or',
thus making the provisions of this

paragraph also subject to the ini¬
tial margin requirements of Para¬

graph

(a)

of

those

which

posit''

m

called for

the

have
need

'-ash

Invest¬

Rule.
been
not

added
make

accounts

'marks to

oi«

market'!"

to
de¬

be

in the past,

liabilities

to

in
February from
eight
$2,622,000 liabilities in January.

When
into

ashamed

mendously
out of

a

war

in.

now

such

as

They

serve,

con¬

serve

of

the

people

happen again.

selves, get

a

doing this."

Districts

Reserve

Louis
same

number,

while

the

Kansas City and Dallas Re¬
were distinguished

Districts

by not having any failures/

tre¬

always
as

come

we

the

seek

that

When

the amount of liabilities involved

one

is considered

we

to

do

the

it

it is

Cleveland,

seen

Atlanta

that

liabilities

will

than

They, them-

certain solace out of j

in

involved

January,

in

on If

and

Louis Reserve Districts had

something to appeal to the yearn¬

never

more

districts
had
fewer
failures
in
February
than
in
January.
The Minneapolis Re¬

You

thinking

are

in

had

than in January; the Boston

remaining

said to me:

leaders

"Our

failures

tricts

naturallv wonder what is its mo¬

gressman

divide

ruary

amazing pageantry that

deep

is

Atlanta and Chicago Restr?^

.

people are being given.
One

country

Reserve Dislrir^- **

is found that only the

St.

tive.

the

Federal

the

an

eight from
$241,000 in

February from $855,000 in Janu¬
Commercial service faib*':,»*»
to 11 with $809,000 liability

and

It is

ings

to

and

,?•*

group

decreased

had

with Britain.

to $142,000
$254,000 in

construction

and in the past

sulted

are

from

Government has always con¬

been

the

rose

Latin American country,

a

February,

ary.

troops of this country would
used.
This is just as it has

the

Cb) of the Rule, relating to 'when
issued'
and
'when
distributed'

down

the

in

10,

Well,

the

26

vencies

present system of ambassadors.

against

$64,000

were

in January, but liabilities

as

ruary

regardless of the proce¬
dure and assuming the national
fare.
There would be the ques-*
heads can get together for once,
tion of voting what to do.
Underaction against Bulgaria is agreed
Secretary
Grew
has
publicly
upon,
for example.
Then the
explained that this country's dele¬
troops to be used would be those
gate would have to vote in ac¬ closest to
Bulgaria.
If it is action
cordance with the instructions he

liabilities

numbered
same

were

of

sort

num¬

against $24,000 in January. In the
retail
trade
section insolvencies

them, and asked them to re¬

same

seen

group

two, against four in Janu¬

and

ary,

revenue-bond flotations placed be¬
fore

only

Wholesale failures

bilities.

the municipal
closely, from

viewpoint,

a

the

ruary

measures.

appealed

bond

liabilities

of

considered, it is

Manufacturing failures in Feb¬
numbered
17,
involving
$301,000 liabilities, compared with
34 in January with $2,128,000 lia¬

blame, Mr. Pep¬

as

is

group.

finance

to

functions,

same

having
larger liabilities is the wholesale

said, owing to their growing

per

tendency

amount'

the

involved

low, he predicted. The States have
not been without

had the

while
the
remaining
had fewer failures in Feb¬
than in the previous month.

ruary

the ability

interference

commercial

were

number,

State and local regimes to

the

of

on

groups

groups

"capitalized," he said.
Renewed attacks

.

and

retail service group

and

should

-

&

the
only
showing m,ore failures in
February than in * January ; the

nature- to¬

Federal

in

Dun

to

groups

sound distribution of func¬

a

tions

wholesale

service

taxation.

income

according

.

The

ions holding
from

in

volving $5,883,000 liabilities and
132 involving $3,108,000 in Feb¬
ruary a year ago/

Pepper lauded the refusal

ernment

than

February,

and

insolvencies

Bradstreet, Inc., totaled 66 and
$1,557,000 liabilities, as
compared with 80 in January, in¬

the

year,

February

involved

appropriately

under

in

involved

1945,

Business

February,

gle between the monarch and the

parliament,

liabilities

1944.

parliament

failures

lower in number and amount

January,

revival of the age-old strug¬

a

Business

were

and

government

would lead, he

runs

Club

paper

quoted

of New
indicated fur¬
Pepper as fol¬

proprietary

issues,
against their im¬
pecuniary interests.
:> -

mediate

luncheon meeting of the

a

York.

even

the Federal Government will fol¬

all the bunk.
About

an

resentative

of the

case

a

Declaring that it is the duty of the Supreme Court, bolstered by
alert public opinion, to maintain the balance of power between

the

now.

organization,

smaller

result of the firm is¬
guaranteeing a put, call
option may in some cases be
as a

in

need whatsoever for

no

$34,375,000,000.
pictured life insur¬
companies as heavy investors

ance

Oaks, of San
Francisco, or whatever interna¬
tional organization is to be set

trusts

or

Turning to other current devel¬
opments, Mr. Mahan said there is

borhood of

terms of Dumbarton

ment

quired

say nothing
of the great
hordd| of idle capital
in banks and other institutions.

standing.
According to Mr. Madata, the total mortgage debt
today is somewhere in the neigh¬
Mr.

almost finance the postwar

building expansion, to

country

re¬

suing
or

that

or

any one

comes

gin

has been changed by the removal
of the language relating to the,
use

country

agreement,

could

han's

our

Other Provisions

bring the condi¬

this

solid

sanctions

against

increased

securities

tion of the account up to

ing

got

value.

When

ing

and

pretty

that when the question of apply¬

course,

"Interest and dividends credited

I

"Any amount of initial margin
required by the provisions of
Paragraph (a) of the Rule can be
met by the deposit of cash or se¬
curities having a suitable value
for margin purposes, or by the

Britain

(Continued from first page)

I,,,

piled show that the Federal agen¬
cies—despite their great activity
in the past
15 years—still hold
only a tenth of the mortgages out¬

told, and the impression

in

were

may

Russia has insisted,

called isolationists to

security is sold
below 10, the net proceeds

or

of

would

withdrawal.'

a

acceptance

by Paragraph

after

another broker if there is

Withdrawals of cash.
of

contains the mainte¬

time,

of effecting:

"2.

are

contain

must

be drawn up.

drawal, and the equity is $1,000. quite audibly

securities transactions

and commitments.

count.

short

margin or an
$1,000, whichever is

account

nance

or

purpose

quired

any

withdrawal, how¬

account

of

low may
the

at

Rule

is attached.

rule.

on

greater.

may

"1.

stock

on

other convention that

any

nation

maintenance

at

the

share

such

the

ever,

the

1945, and as to old accounts at the
opening of business April 2, 1945.

selling

on

below, plus

positions in the account.

the opening of business March 5,

"A

value

market
or

per

or

$10, margin
as follows:

"Securities selling at 10 or be¬

"The/ Department
Rule

of

above 10, plus..
"3. the margin

Firms:

Firms

100 %

securities at 10

equity

the

can

selling over
must be computed

the

Department of Member Firms of
the New York
Stock
Exchange

be

"In order to determine whether
stock

Circular

se¬

in the account is less than $1,000.

stock

selling at $10 or above, but
margin rule of the Stock
Exchange would have the effect
of fixing the minimum margin on
any stock at $10 per share, so that
any stock selling at or below $20
would
require a deposit of at
least $10.

or

may

made from any margin account if
after such withdrawal the equity

the

new

10

over

1185

St.

more

Febriu.'-v

while the

ro

maining districts had le^j Lab1/*

' ties involved,

-

-

^

THE COMMERCIAL

1186

FINANCIAL CHRONICLE

./Thursday, March 15, 1945

continued at 44%c. and 70%c. for

order to

out a long-ranged

carry

laid out many months
ago. Actual tonnage received may
be sufficient to produce a speci¬
fied number of product units, but
some of the material may be en¬
program

.

,

the purpose in

tirely unsuited for
mind,

'I

headway has
stepping up raw

weeks
in

made

output, the magazine reports,

steel

is now threaten¬
mills with a surplus of

but this progress

ing some

ingots because
not

keep

up

finishing mills can¬
with the primary

mills' pace.
One mill with greater

finishing

ingot capacity last year ac¬

than

quired substantial
tonnages of
purchased ingots for further con¬
version into finished products. In¬
sufficient labor, "The Iron Age"

pointed out, caused this practice
abandoned. Now it appears
that
a
dwindling labor supply
will make it impossible for this
mill to finish all the raw steel
from its own furnaces. The expe¬
rience of this company is indica¬
tive of a similar trend at other
to be

'

shown.
Solid Fuels

Coal Industry—The

in its latest report

of

production

places

total

coal in

the week ended

soft

March 3,

1945, at 11,350,000 net tons, a de¬
of 575,000 tons, or 4.8%

crease

previous. Produc¬
in the corresponding week of
amounted to 12,115,000 tons.

from the week

1944

According to the U.
Mines, output of
for the

of

March

S. Bureau

Pennsylvania

anthracite

week

ended

1945, was estimated at

3,

arising from

cancella¬

American

The

Iron

and

Steel

Institute; announced last Tuesday
that the operating rate of steel
companies (including 94% of the
industry) will be 94.5% of capac¬
ity for the week beginning March

12,

compared with '95.9%
one
ago.
This week's operating

week

than

less

tons

but

week,

previous

for

was
17,300
the similar

0.2%

above

that

for

the

sponding weekly period

was

corre¬

one year

ago.

Oil

Crude

Production

gross crude oil
tion for the week ended

average

estimated

as

—

Daily

produc¬
March 3,

by

the

Petroleum Institute, was

supplies
at the week-end
52,589,000 barrels of civil¬

age

ian
rels

grade gasoline, 45,014.000 bar¬
of

military

York

system
in

reports

177,900,000

output

kwh.

the

of

week

ended

March 4, 1945, comparing
215,900,000 kwh. for the cor¬
responding week of 1944, or a de¬

with

crease

of 17.6%.

distribution of

Local

amounted

compared
for

electricity
174,800,000
kwh.,

to

with

207,000,000 kwh.
corresponding week of

the

last year, a

decrease of 15.5%.

Railroad Freight Loading—Car-

loadings. of
the

week

totaled
tion

785,264

of

13,421

This

cars,

cars,

3, 1945,
the Associa¬

Railroads

was an

or

for

March

American

nounced.

freight

revenue

ended

1.7%

an¬

increase of

above

preceding

the

and other gaso¬

to List A of Order M-199 and per¬

options bought last December also
showed a great falling off in the
week.
Where
early
shipments
could be assured, foreign wools

mitted

be

to

made

lower-

from

priced foreign silver (45c.
Supplies as reviewed

per

Miscellaneous

Division

that

Minerals

oz.).
the

by

the

available

total

ounces.

Failures

Business

Increase

—

Continuing to rise for the second
consecutive week, commercial and
dustrial failures in the week end¬

in

ber

the

comparable week of
the
previous year for the first
time since the spring of 1942. Dun
& Bradstreet, Inc., reports 21 con¬

fail|ing against 18 last week

cerns

17 iri the

and

The

Domestic wool sales in the Bos¬
market last

ton

enjoyed

reflected

week

a

The exercising of wool

slow rate.

concentrated

was

in failures of small retailers. Fail¬

liabilities

involving

ures

than $5,000 were
ber

week

a

times

less

of

twice their num¬
and

ago

in the

their number

four

over

corre¬

sponding week of the prior year,
while

lia¬

with

failing

concerns

bilities of $5,000 or more

dropped

12 last week to eight in the

from

week just

ended and were a little
half the 14 a year ago. Con¬

over

failing

cerns

were

higher than in

Specialty shops enjoyed

in

Business

children's

partments also held
A

many

Shipments

—

The

Na¬

year-to-date, shipments
reporting identical mills ex¬
ceeded production by 11.5% and
For the
■

ran

18.0% above output.

numbered

failures

Canadian

unchanged from the -corre¬
sponding week of last year, but
were only half the number a week
two,

ago.

Wholesale

Food

Price

Index—

Continued firmness in farm
modities

the

held

Dun

street index at $4.10

&

com¬

Brad-

for the third

straight week. This represented a
rise of 1.7% over last year's $4.03,
and

recorded

two

ago.

years

and potatoes.
index represents the

eggs

The

of

total

the

nrice

sum

nound

ner

of

31 foods iri general use.

Cesrmodiiy

Price

Index—-The

commodity
price level
continued to edge upward the past
week. At 176.49 on Mcrrh 7, the
daily wholesale commodity price
index,,compiled by Dun & Bradstreet, reached a new war-time
peak, comparing with 176.28 a
week previous and with 172.49 on
the corresponding date last year.
Leading grain markets exhib¬

general

considerable

ited
the

strength

last

under

close

lent demand
of

box

cars

duction at present is greater than
it was in 1942, notwithstanding
the

lief

that

the

mills

are

oper¬

ating with 10% fewer employees
than heretofore.
Output for the
week

ended

March

3,

1945, was
89.3%
of
capacity,
as
against
89.7% of capacity for the preced¬
ing week, the American Paper
and Pulp Association's index of
mill activity disclosed.
The rate
for the
corresponding week of
last year was 87.0% of capacity.
As for paperboard, production for
the same period was reported at
96% of capacity, against 97% in
the preceding week and 95% in
the week ended March 5, 1944.
Silver—The London market r.Tt;

week

as

an

tended

acute

near

excel¬

shortage

to curtail

the

movement of all

grain to terminal
Reports of a huge gov¬
buying program for re¬

markets.

fact

8%, were sold.

or

its

peak two years later,
is now gathering momentum in a
downhill dip which is not likely
reached

Circular-Keystone," in

ernment

distribution

had

in

war

liberated

good effect on wheat
sharply
higher.
Flour purchases by the
army in the week were large, but
regular trade buying was only
moderate. Pending definite action
on
extension of the subsidy be¬
areas

futures

a

and they spurted

yond June 30, mills gave evidence
of a reluctance to makd offerings.

prices moved within a
but the undertone
steady and additional moder¬
gains were noted in th«

was

ate
of

faVOx'ttLxc

\vdr

news

uncertainty prevailing
control

and

over

the

dearth

a

of'
to

consumers

purchase whatever is available in
In the house furnish¬

line, sales

or

little

a

about

were

below

one

even

ago,

year

with furniture volume' hampered

by low stocks

hand.

on

5% above

Food volume is about
a

Shortages,

ago.

year

A

poll of marriage license bu¬
in the 50 largest cities in

the country showed a
of

drop in 1944
The

1943 rate.

9.2% from the

magazine estimates that the over¬
during 1944
reached approximately 1,500,000.
Tine downward trend can clearly
be seen when this figure is com¬

all total in marriages

1,758,000 marriages

pared witn the

1942.

of

decline

continued

A

in

even

two
sharp
upward
immediately follow¬

by

spurts—one

serving

now

are

men

Uncle Sam,

according to estimates
madefy marriage license clerks
especially for this survey since
has

This

1940.

resulted

in

lot

a

of

postponed homes, the magazine
points out, adding that "the sil¬
and

verware

and

dishes

and

toasters

and vacuum cleaners
that these couples will buy will
rugs

cushion that will

the

be

retailers

for

the

ease

peace time economy
and manufacturers."

jolt back to

to hold down

Canned goods, frozen foods,
confectionery are selling in
large quantities.
Retail volume for the country
estimated

was

13

to

17%

over

a

Regional percentage in¬
were:
New England, 10

year ago.
creases

to

14%; East, 15 to 19%; Middle
West, 14 to 17%; Northwest, 8 to
11%; South, 12 to 16%: South¬
west, 13 to 17%; Pacific Coast,
11

is

j looked for by the magazine, fol¬
lowed

appear

and

reaus

to

15%.

Department
Federal

dex/were

sales

store

country-wide basis,
the

Board's

ahead

19%

a

on

taken from

as

Reserve

of

a

in¬

year

for the week ended March 3,

ago

1945.

This

week.

For the four weeks ended

compared with 21%
(revised figure) in the preceding

March

3, 1945,
sales increased
21%, and for the year to date 16%.

Activity

retail

marked

trade

here in New York last week. Main

apparel and accessory de¬
partments attracted much atten¬
tion, but wholesale markets were
subjected to great pressure by
retailers on pre-Easter deliveriesof merchandise. So heavy has re¬

floor,

tail

demand

that

been

producers

finding it very difficult to
cope with the sharply increased
are

January Hardware Sales Gained
1944—Sales

Over

of

independent
dealers

hardware

retail

orders

and

on

hardware

dealers

very

showed

sales

a

10% gain over last year.

Wholetale hardware distributors, in all
parts of the United States, report¬
ed an average dollar volume in¬
of 11% over January,

crease

The

index,

store sales in

New

weekly

the

period to March 3,
1945,
increased 23% over the
same
period of last year.
This
compared with an increase of 17%
in the preceding week.
For the
four weeks ended March 3, 1945,
sales
year

receivable

accounts,

ventories
dollar

1944.

of

value

slightly
In¬

was

of last

year.

wholesalers
2%

had

Cancels leetteg
Ninth

The

a

Annual

of
the end-of-the-month, than those
on
hand
in
January, 1944, and

the Trust Division

showed

to

ber,

like

a

greater,

gain

over

as

Decem¬

1944, stocks.

Retail

and

Further

Wholesale

expansion

was

Trade—

noted in

almost all lines of retail trade the

past

Week for the country as a
Spring; merchandise was

whole.

especially in demand. The month
of February witnessed a gain of
about 15 to 20% in business above

that

of

a

year

ago.

Despite

corq\-

plaints
of
retailers
concerning
slow
deliveries, sufficient ship¬
ments arrive from day-to-day to
of a high retail volume.
furnishing sales exhibited

cancelled.

hold

Committee

special

Bradstreet,
ence

moved

well.

continues to remain

Prefer¬
high for

excellent

seasonal

week

and

in Decatur,

meeting

plans

of

the

Division

at

a

meeting decided that the
for the Annual Meeting

officers

of

continue
year.

in

The

the

Division

office

officers

for

of

should

another

the

Trust

Division who will remain in their

Arthur

are:

President

John

L.

&

Savings
Chicago;
Vice-President
C. Boeker, Edwardsville

Pioneer Trust

National Bank and Trust Co., Ed¬

quality goods.
An

been

made

should be abandoned and that the

Sunde,
Bank,

while

this

Illinois

has
been

had

t

offices

tendency,

Plans

111., April 5.
In keeping with the
pledge made by the bankers of
Illinois on Dec. 8, 1941, that they
would
cooperate wholeheartedly
in
every way
possible to bring
this war to a speedy and success¬
ful
conclusion,
the
Executive

food

lagging

Meeting of

of the

Association

Bankers

distribution, according to Dun &

in

for the

by 21% and
date by 14%.

rose

to

percentage of collections on

under January

a

Federal Re¬
department
York City for

the

to

Bank's

serve

good
gains over the same month of
1014, "Hardware Age" reports, in
Lo latest every-other-week mar¬
ket summary.
Based on reports
from
1,101
independent
retail
showed

hand.

According

distributors

hardware

wholesale

for' January

price

legislation.
Further curtailing lias occurred

fabrics
forced

sales.

its March issue.

permit

range,

In" drapery and

purchases.

upholstery
goods has

teentlj annual marriage survey in

House

Cotton

past week in piece ;
demand ruled high and
retailers
endeavored
to

meats, do not

at their

narrow

was.

the

setting forth the results of its six-

Hog values in the week remained

ceilings.

up

as

limit

stop until V-E Day, states the

to

"Jewelers'

slightly higher than the

was

*

Production—Paper pro¬

298,

married

Central States.

tional Lumber Manufacturers As¬

100% of stocks.

1,536,-

19,436,983 pounds, only

de¬

wear

well.
scarcity of merchandise

pace.

slow

for the week

good

a

millinery and shoes en¬
joyed good demand.
In acces¬
sories
such
as
handbags
and1
gloves, the pace was much slower.r
Lingerie sales were high, but re¬
tailers
experienced difficulty in
their efforts to replenish stocks.

noted

a

last

blouses,

goods

week of 1944 in the New

same

$4.09

Lumber

registered

bidding

Out of total offerings

below

week, while higher-priced dresses,

week,

last

Boston

ing V*-E Day, another after the
England, Middle Atlantic, West complete cessation of hostilities.
Approximately 3,200,000 newly
North
Central and
West
South

the

Moving upward during the week
were rye, oats, steers, sheep, and
lambs, with declines registered in

residual fuel oil.

auction
in

held

10%

terest.

At the sup¬
of stockpile

ready sale.

a

plementary

ago.

spring wear reflected
volume as coats, dresses
and sportswear attracted most in¬

facturers generally, were

week of 1944.

same

increase

line; 7,334,000 barrels of (kerosene;

week this year, but a quiet and unchanged at 25V2d. per
decrease of 1,629 cars, or 0.2% be- fine ounce for silver.
The New
low the corresDonduig week ot York Official for
foreign silver




hand, these manu¬

on

reported
to be refusing new business be¬
cause bi their inability to make
reasonably prompt deliveries.

metal,

28,110,000
barrels
of
distillate
fuel oil, and 45,021,000 barrels of

Paper

Consolidated Edison Co. of New

still

the WPB announced
on Feb; 28, last.
Certain products that are now
required to be made from higherpriced Treasury or domestic sil¬
ver
(71c. per oz.) would, under
the proposed changes, be shifted
eign

ing March 8 exceeded the num¬

week of 1944.

Compared to the average corre¬
sponding week of 1935-39, pro¬
duction
of reporting
mills was
29.7% greater, shipments 19.9%
greater, and orders 19.4% p

1945,

of old

with large backlogs

orders

over

year

high

the market.

orders

3,

bd Jare,

a

Women's

a

ing

in the week ended March 3,

March

may

lower-priced for¬

about

at

started with the draft in 1940 and

from

ended

products that

them

volume

estimates place

year.

Post-Wair Jewelry Trade Pros¬
pects—The marriage boom which

the

for

coke

of

week

war

and

levels.

week
ended March 3, 1945, showed an
increase of 6,400 tons above the
Beehive

output of electricity increased to
approximately 4,472,110,000 kwh.
1945,
4,473,962,000 kwh. in the
preceding week.
Output for the

sential

made from the

in

week

last

of

reports
that
lumber
a drop
of 1.4 sociation
points from last week's rate, and shipments of 465 renortintf. inSWa i
is equivalent to 1,730,900 net tons were 9.4% above nroducticn mv I
of steel ingots and castings, com- I the weeK enaed March 3,
1945,1
pared to 1,756,500 net tons last while new orders for these rrr.lA,
week and 1,775,200 tons one year were 1.0% more than production.
ago.
Unfilled order files amounted to
Electric Production—The Edison

j manufacturers. Confronted as they

gains

both

As for inventories,

Imports for 1945, officials
believe, will hold closely to 1944

with the

When compared

rate/ represents

Electric Institute reports that the

increasing military demands and
the further channeling of stocks
to more essential uses.
This has
resulted in a cut for civilian shoe

tons, or

corresponding week in 1944, a de¬
crease
of 288,000 tons, or 20.5%,
is reflected.

totaled

.

import flow of foreign sil¬
ver, reports E. & M. J. Metal and
Mineral
Markets,
has steadied
down to a point sufficient to per¬

moderate

wools

For the four weeks ended March
the past week, ap¬
3, 1945, daily output averaged 4,proaching the record breaking av¬
765,950 barrels.
erage maintained since the start
of the year. New business of most
Reports from
refining com¬
companies was at a rate substan¬ panies indicate that the industry
tially above shipments. This was as a whole ran to stills (on a
partly due to the heavy influx of Bureau of Mines basis) approxi¬
new
and
upgraded
directives. mately 4,753,000 barrels of crude
Some companies reported orders oil daily and produced 14,704,000
coming ih at a rate of from 35 to barrels of gasoline. Kerosene out¬
50 % greater than shipments. With put totaled 1,554,000 barrels, with
this situation prevailing, it is sig¬ distillate fuel oil placed at 5,026,nificant that WPB has frozen, for 000 barrels and residual fuel oil
its
own
at
assignment,
any
open
8,585,000 barrels during the
space! on sheet and strip mill week ended March 3, 1945. Stor¬

schedules

past,

reveal

rate

tion^.

time

some

supply of all silver in 1944 totaled
124,000,000 ounces, compared with
regulated demand for 120,000,000

of 19,000
1.7% from the preceding

American
4,763,120
steel plants.
barrels.
This represented a de¬
Some steel mills are fearful of
crease
of 12,850 barrels ner day
the possibility of the finishing.-de¬
below the preceding week, but
partment bottleneck causing them
was however, 8,320 barrels anoye
to be unable to fill, on schedule,
the daily average figure recom¬
the
sharp increase expected in
mended by the Petroleum Admin¬
shell steel output. In the case of
istration for War for the montn of
some
major producers a set-up
When compared
aimed to bring June shell steel February, 1945.
with the corresponding week last
rollings 80% above January lev¬
oil production was
els has been ordered by the WPB. year, crude
352,395 barrels per day higher.
Order volume continued at
a
high

for

1,116,000 tons, a decrease
week.

*

a

Administration, U. S. Department

tion

recent

In
been

period of 1943. an
36,338 cars, or 4$|%, is

of the Interior,

/

mit revision of some lists bi esw

similar
increase of

with

Compared

1.944.

;/;

The

(Continued from page 1178)
problem of steel users who have
placed advanced orders for cer¬
tain types of material to dovetail
with material from inventory in

case

has been the
due to

in leather supplies as

domestic silver.

The State of Tirade

demand

obtained

apparel lines for the
men's stores reported

wardsville;

Secretary

Harry

C.

Hausman and Assistant Secretary
Kirk E. Sutherland.

Volume

4368

Number

161

THE COMMERCIAL

trenched

Weekly Goal and Coke Production Statistics

made

FINANCIAL CHRONICLE

&

that

revision

be

can

only with great difficulty.

complicating the steel
delivery situation is the heavy de¬

week ended March

mand for shell steel.

3, 1945, is estimated at 11,350,000 net tons,

a de¬
4.8%, from the preceding week.
Output in
corresponding week of 1944 amounted to 12,115,000 tons.
For
the calendar year to March 3, 1S45, soft coal production totaled 104,795,000 net tons, a decrease of 8.8% when compared with the 114,964,000 tons produced in the calendar year to March 4, 1944.
According to the U. S. Bureau of Mines, production of Pennsyl¬
vania anthracite for the week ended March 3, 1945, was estimated at
1,116,000 tons, a decrease of 19,000 tons (1.7%) from the preceding
week.
When compared with the output in the corresponding week
of 1944 there was a decrease of 288,000 tons, or 20.5%.
The calendar
year to date shows a decrease of 21.6% when compared with the
corresponding period of 1944.
The Bureau also reported that the estimated production of bee¬
hive coke in the United States for the week ended March 3, 1945,
showed an increase of 6,400 tons when compared with the output for
the week ended Feb. 24, 1945; but was 17,300 tons less than for the
corresponding week of 1944.

of 575,000 tons, or

crease

the

ESTIMATED

UNITED

PRODUCTION

STATES

LIGNITE

IN

NET

Mar. 3,

Bituminous coal & lignite—
Total,

including
D^ily average
'Revised.

although

Feb. 24,

1945

mine

was* mined

ESTIMATED

PRODUCTION

OF

1944

104.795,000

1,955,000

tMar. 3,

1944

best

Mar. 3,

Mar. 4,

Mar. 4,
1944

11,694,000

fCommercial produc.

1.071,000

1,030,000

1,348,000

8,805,000

11,226,000

149,400

967,200

'Includes

washery and dredge coal, and coal shipped
tExcludes colliery fuel.
tSubject to revision.

I

BY

had

subject

sources

or

by

1,441,300
truck

645,200

from

authorized

^Revised.

BITUMINOUS

COAL

AND

LIGNITE,

STATES

revision

to

on

receipt of

monthly

of final annual returns from

tonnage

reports

from

district

and

the operators.)
Week Ended

Feb. 24,
State—

Feb. 17,

1945

1944

350.000

354,000

373,000

Alaska

7,000

7.000

85.000

106,000

97,000

170,000

167.000

187,000

Arkansas and Oklahoma
Colorado

.i

Georgia and North Carolina

••

8,000

'

*

1,565,003
554,000

1.553,000

182,000

1,033,000

998,000

345,000

358,000

365,000

35,000

Kentucky—Eastern

_

36.000

43,000

3,000

4,000

Kentucky—Western.

Maryland

Michigan

3,000

<

63,000

Montana <Mtum. & lignite)
New

95.000

105,000

32,000

33.000

North & South Dakota

60,000

60,000
600.000

2,690,000

2,670,0CD
146,000

4,000

5,000

146,000

415,000

378,000

413,000

Utah

lignite)

_

Virginia
Washington

37,000

157,000

32.000

32,000

26,000

2,050,000

2,247.000

845,000

755,000

1,033,000

190,000

205,000

Wyoming
SOther.Western States..

.

#

;

211,000

1,000

_

Total bituminous & lignite

cn

85,000

2,248,000

tWest Virginia—Southern
tWest Virginia—Northern

11,925,000

0

•

11,585,000

12,593,000

tlncludes operations on the N. & W.; C. & O.; Virginian; K. & M.; B. C. & G.; and
B. & O. in Kanawha, Mason, and Clay counties,
tRest of State, including the

Oregon,

District

And

' Revised.

Grant,

'Less than

Mineral

and

Tucker

counties,

glncludes

Arizona

and

1,000 tons,

sult

of

Current Steel

Output Off 1%% - Deliveries
Continue Tight - Manpower Shortages Serious

able

showed

tions

suffered

have
power

its issue of today
"Already there are some

of

because

man¬

"The

shortages
in
the steel industry are more seri¬
ous than being just a matter of so
many employees needed. The real
shortage is in certain types of
manpower

labor,

unskilled

and

skilled

at

spots where the lack of such help
eats into

output.

While ingot pro¬

duction has been bettered recently
the

into

of steel

processing

fin¬

ished

products has slowed down,
thus causing raw steel
in some
cases to be in
excess of finishing
mill needs.
With the draft mak¬
ing

inroads

more

in

steel

mill

forces and with the present man¬

in

power

bordering
exhaustion
record

the most skilled jobs
close on the point of
after three years of

breaking activity, the im¬
outlook
for
significant

mediate

increases

promising.
"While

satisfied
vere

steel

in

output

not

;

:

the

to

is

steel

see

weather

an

industry was
ending of se-

conditions




but was

such

and

directives

to confound

pig

that

that

be avail¬

half.

effects of

in

pro¬

is clear
not

iron

output

weather condi¬

month

and

totaled

1944, the January total was small¬
est
since June,
1943.
January

struggling with manpower
deficiencies, the heavy volume of
orders

first

new

tons in January, 1944.
With the exception of November,

still

steel

production
pacity,

the best

at

was

86,5%

of

further

are

ca¬

de¬

ferred, plates in May and June,
shapes in June and July, sheets
in September with several large
producers out of the market for
third quarter, large bars Septem¬
ber to the end of the year> On
large bars over 7Vi inches little

In

can

that

ally

solve

to

month

I

"An

problem

carryovers

high

ran as

total order

even

the

as

gener¬

analysis

be done until

1946."

of

some

The

which January or earlier delivery
had
been
indicated.
Despite

ing the amount of money in cir¬
culation!; after
deducting
the

pleas by WPB that customers

money

-

from

cently

involved

10%

cel advance orders

thorization

was

material

ments,

mills

can¬

Jor which

au¬

nullified bv severe'

cuts in second quarter

report

CMP allot¬

cancellations

the lowest in months.

Unless

Treasury

taken

schedules

will

soon,

be

by Federal Reserve Banks
and agents.
The figures this time
are
those of Jan. 31, 1945, and
show

tion

that
at

firmly

the

that

money

dale

ac¬

April rolling
so

volume

a

more

month

Other instalment sale

ago.

year

than is customary in January.
these

accounts

in

were

For
the

about

earlier.
'.7
\
;
"Charge-account indebtedness declined seasonally from the high
level prevailing during the latter part of 1944 but was nearly onefifth above the amount outstanding on Jan. 31 of that year."
same

a

as

year

,

CONSUMER

(Short-term

credit..

OUTSTANDING

CREDIT

millions

In

dollars.

of

Figures

estimated)

Increase

'Total

consumer

sale

Instalment

credit

__

_

.

Other

574

■

—

Single-payment loans

credit

shown

not

.

,\ '*■

2
75

+

+ 252

10

—

V

—

.

65

+

tlncludes

separately.

..

23

+

—212

1,210

—

_

service

>

17

—

1,546

-

"8
61

—

1.228

....

accounts

' .+f-

;
—

#

+453
•'

192

tInstalment loans

modernization

Jan.31,1944

credit:

Automobile

Charge

,

decrease from:

—304

5,482

_

or

Dec. 31, 1944

Jan.31,1945

insured

repair

and

loans.

en-

Comptroller of Currency Deports
The

of national

assets

banks

Dec.

on

last

30

totaled

$76,950*--

announced on March 6 by Comptroller of the Cur¬
Preston Delano.
Returns from the call covered 5,031 active

000,000, it
rency,

National

was

in

banks

the

United

and

States

possessions..

The

assets

$6,549,000,000 greater than the total reported for the
5,042 active banks on June 30, 1944, the date of the previous call,
and an increase of $12,418,000,000^over
the amount reported by the 000,
and reserves with Federal
5,046 active banks on December Reserve banks of $9,285,000,000, a
total of $17,637,000,000, increased
31, 1943. Comptroller Delano also
reports that the deposits of na¬ $1,577,000,000 and $1,556,000,000 in
tional banks on December 30, 1944 the six and twelve months, respec¬
totaled $72,129,000,000, an increase tively.
• v_,k
{
of $6,296,000,000 since June, 1944,
"The unimpaired capital stock
and an increase of $11,973,000,000 of the banks on December
30, 1944
since December, 1943.
From the was $1,567,000,000, including $92,Comptroller's
advices
we
also 000,000 preferred^ stock.Surplus
reported

were

quote:

"Included in the current
are

000,000, or 2.39%, since June, and
an
increase of $1,364,000,000, or

Borrowings Decrease

13.46%,
since
December,
1943.
The percentage of loans and dis¬
counts to total deposits on Decem¬

In Month of

30, 1944 was 15.94, in compari¬
son with
17.06 on June 30, 1944,
and 18.85 on December 31,- 1943.
ber

"Investments

by

the

in

banks

United States Government obliga¬

guaranteed, as
of December 30, 1944 aggregated
$43,478,000,000, which was greater
by $4,688,000,000, or 12%, than the
and

direct

tions,

for

reported

amount

increase

an

June,

1944,

of

that

member

in circqla-

(including,

of

h£ld in bank vaults
banks

of the Federal

Reserve System) was

$25,290,209,-

The New

February

York

announced

Stock

Exchange

March

on

3,

1945,

that the total of money borrowed

reported

as

member

by

firms

Stock

as

business Feb. 28
a

Exch«nge

of the

close of

$890,544,258,
decrease of $22,450,543 from the

Dec.

30 total of

was

$912,994,801.

The

following is the Stock Ex¬
change's announcement:
"The

of $9,300,000,000,

from

total of money borrowed
banks, trust companies and

27%, over the amount reported
for December the year previous.

other lenders in the United States,

guaranteed obliga¬

excluding borrowings from other

or

The direct and
tions

held

on

December

30

last

$42,836,000,000 and $642,000,000,
respectively.
Other bonds,
stocks and securities held totaling
were

$3,544,000,000,

including

obliga¬

and political sub¬
$2,057,000,000, showed
increase since June of $46,000,of States

000, and an increase of $218,000,000 in the year.
"Cash

qf $904,000,000, balances
with othbr banks, excluding re¬
ciprocal balances, of $7,448,000,-

held in the U. S. Treasury

and

course,

is

consecutive

second

an

Mcney in Circulation

delayed

for

that

15% of the total carryovers re¬

tion

the

divisions of

Department in
Washington has issued its cus¬
tomary monthly statement show¬

to

credit decreased somewhat

tions

33% to 40% of

commitments.

shipments shows

,';;•>.*•;.;<■

+

approximately 14% larger than

and

"Deliveries

were

of
better
distribution.
Carryovers
this week were still heavy and
one
major
producer
reported
those in February to be the larg¬
est in the history of the company.

as

efforts

'

■

report continued:
outstanding declined about 1% during January,
but at the end of the month were nearly 7% above those of the
corresponding date last year.
>
"Instalment credit outstanding on automobile sales showed a
further small decline in January but at the end of the month was

figures

5,275,852

which

shortages.

an¬

"Instalment loans

War

4,945,018 net tons, ^compared with
4,998,757 tons in December and

signs that steel ingot output has had to be gaged closer to restricted

operations

over

"January

in steel deliveries," states "The Iron Age" in

mill

it

sufficient steel will

"March, the proverbial month for steel production peaks, will see
substantial improvement in the steel operation picture when com¬
pared to recent periods, but the betterment will not lessen the tight¬

finishing

by

in

this

for which

grams

(March 15), which further adds in part:

action

Board

appeal and a
cutback is being applied to

^

ness

System

New York Stock Exsh.

the

Panhandle

Reserve

of $1,809,000,000, undivided prof¬
deposit its of $632,000,000, and reserves of
demand and time de¬ $267,000,000, a total of $2,709,000,requesting
tonstimdrs to cancel
orders' "for posits ' bf Individuals,
partner¬ 000, increased $151,000,000 since
steel which for any reason they ships and corporations of $36,321,June, 1944, and $280,000,000 since
no
longer need is expected to 000,000 and $12,655,000,000 respec¬ December,
1943.
Total
capital
eliminate
still
further
tonnage tively; United States Government funds amounted to $4,275,000,000,
and thus provide space for im¬
deposits of $11,167,000,000;
de¬ which was $164,000,000 greater
portant requirements.
posits of States and political sub¬ than in the previous June, and
divisions of $3,070,000,000; postal $315,000,000 greater than in De¬
"Meanwhile, more rigid rules
are being laid down for issuance
savings of $5,000,000; certified and cember of the previous year."
of directives and closer control is cashiers' checks, etc., of $853,000,The June 30 figures were given
is being exerted
over
cancella- 000, and deposits of banks, ex¬ in our issue of Oct.
19, page 1717.
of
ations, mills not being allowed to cluding reciprocal balances,
fill gaps without definite approval
$8,058,000,000.
from
Washington.
Some
can¬
"Loans and discounts were $11,cellations are appearing as a re¬
498,000,000, an increase of $268,recent

Production

160,000

Texas (bituminous &

Federal

the

ago.

year

schedules

3,000

153,000

Pennsylvania (bituminous)
Tennessee..^-.

that

portant tonnage from nearby mill

3,022,000

148,000

_

indicated

first of the year to crowd less im¬

644,000

__

.

credit

announced

rectives have done much since the

56,000

595,000

Ohio

(lignite)

12

Steel

in its sum¬
of the iron and steel mar¬
kets, on March 12 stated in part
as
follows: "Although heavy di¬

176,000

1,035,000

Kansas and Missouri

March

on

and

mary

576,000

53,000

Iowa

Iron

the

The Board's

'Includes

"Steel" of Cleveland,

1,609,000

545,000

155,000

,

.

Indiana

declines.

Tonnages involved

American

of

consumer

outstanding at the end of
January was estimated at $5,482 million dollars, representing a de¬
cline of nearly $305 millions during the month.
About two-thirds
of this reduction was in charge accounts receivable, but other
major
types of consumer indebtedness also showed customary seasonal

fur¬

the electric furnace differ¬

received

one

0

54,000

Illinois

1,000

•

March 1 that

on

easier

are

castings,; compared to
1,756,500
tons' one week ago, 1,673,900 tons
one month ago, and 1,775,200 tons

ilFeb. 26,

1945

Alabama:

electric

operating rate of steel companies
having 94% of the steel capacity
of the industry will be 94.5% of
capacity for the week beginning
March 12, compared with 95.9%
one
week ago, 91.4% one month
ago and-99.1% one year ago.
The
operating rate for the week begin¬
ning March 12 is equivalent to
1,730,900 tons of steel ingots and

(The current weekly estimates are based on railroad carloadings and river shipments
are

in

Outstanding Down In January

Governors

that telegraphic reports which it

1937

(In Net Tons)

and

made

such practice constitute only a
small
proportion of total steel

"■**

State

op¬

in

8,166,000

OF

percentage of

a

quickly.

more

Beehive coke-

PRODUCTION

the

of

Board

nounced

ential in order to obtain the steel

8.596,000

WEEKLY

showed

because deliveries

Institute

1945

9,172,000

ESTIMATED

on

steel

to pay

Mar. 5,

1944

125,700

gain

The

1,404,000

132,100

February

eration basis since last May, con¬
siderable
capacity
is still
idle.
Some steel users are ordering car¬

Calendar Year to Date

1945

total

in

output

The

production."

1,135,000

States

sec¬

com¬

"Although electric furnace steel

COKE

1,116,000

United

does not include

ponents of jDombs, but involves
only shell and rocket bodies.

on six working days,
in Coal Act Districts 7 and 8.

'Total incl. coll. fuel

operations.

Some

sybstan-

1,500,000 tons in the

ond quarter

Tons)

SFeb. 24,

1945

this

might be trimmed
Germany collapses,
remains
problematical.

to about

tAverage based

Week Ended

Penn. anthracite—

earmarked

rockets.

when

this

but

2,102,000

AND

quarter steel

be

The allocation which may amount

114,964,000

2,019,000

Net

10%

program

down

bon

Mar. 4,

1945

and

About

i than those
involving open hearth
steel.
Such consumers are willing

12,115.000

PENNSYLVANIA ANTHRACITE

(In
•

fMar. 3.

to

believe that

sources

tial

second

appears

shells

for

naces

'Mar. 4,

Sunday, Feb. 18,

on

output

AND

1945

tSubject to current adjustment.
coal

some

COAL

——Jan. 1 to Date

tl,988,000

1,892,000-

_

BITUMINOUS

11,925,000

11,350,000

Jv

•

OP

of the entire

TONS

—Week Ended—

—

Consumer Credit

"Further

The Solid Fuels Administration, U. S. Department of the Interior,
in its latest report, states that the total production of soft coal in the

118}

8-31

against $25,307,152,635 on
Dec. 31, 1944. and $20,529,050,611

on

as

Jan.

with

1944,

$5,698,214,612

1920.
of

31,

the

Just
first

and«compares
on

before

the

World

War,

Oct.

31,

outbreak

that

June

national

of

(1)
or

teed

as

the

United

to

securities

direct

on

obli¬

obligations guaran¬

principal

interest by

or

States

Government,

$314,707,715,
(2)
on
all
other
collateral, $575,836,543, reported
by New York Stock Exchange
member firms, as of the close of
business Feb.

28, 1945, aggregated
'

$890,544,258.
"The total

compiled

on

*

>

of money

the

same

J

J

borrowed,

basis,, as of

the close of business Jan. 31, 1944,
was
or

(1)

on

direct obligations

obligations

principal

or

guaranteed

as

of
to

interest by the United

States

Government,

(2)

all other collateral. $564,-

is,

30, 1914, total was $3,459,434,174.

on

members

exchanges,
gations of

on

$348,613,498;

381,303; total, $912,994,801."

THE COMMERCIAL

1188

FINANCIAL CHRONICLE

&

Thursday, March 15, 1945

Moody's Bond Prices And Bond Yield Averages Long-TermHome •
Moody's computed bond prices and bond yield
^
-*7
• f
Stock Exchange Higher on Feb, 28 <lven the following table. »-••••'■
Mortgage Loans HfeS
Stock Exchange announced
March 7 that as
Seen Unattractive
|
business Feb. 28, there
1,256 stock issues, aggre¬

Market Value of Stocks on New York

averages

in

'The-'New York
of the close of

are

,

,

,

MOODY'S BOND PRICESt

on

(Based on Average Yields)

were

making public the figures for Feb. 28 the

with 1 256

value $56,58o,-

aggregating 1,495,547,375 shares; total market
846,293 on Jan. 31.
' *
issues

1945—

Exchange,

gating 1,497,831,560 shares listed on the New York Stock
with a total market value of $59,680,085,110. This compares

In

-

AC

•.

U. S.

Dally

12

rate*

122.39

Mar. 13——

114.85

122.42

Aaa

114.85

Aa.

120.63

110.88

114.46

119.41
119.41

planners are advocating as a spur
to postwar
residential construc¬
tion actually offers little that will

120.63

118.60

114.66

106.21

110.88

114.46

114.85

120.63

118.60

114.66

106.21

110.88

114.46

114.85

120.63

118.60

114.66

106.21

110.88

114.46

119.41

114.85

120.63

118.60

114.46

106.21

110.88

114.46

119.41

119.41

7

borrowings

net

member'total

$575,836,543 represented loans which were not collateralized by U. S.
Gov't, issues.
The ratio of the latter borrowings to the market value
of all listed stocks, on that date, was, therefore, 0.96%.
As the loans

all other types of
exceed the precise
listed shares and their total

borrowings on

between

relationship

value and average price

Feb.

Market Value Av. Price

Aviation

$

-

buyers in the end
definitely unsound from
the lender's standpoint, George H.
Dovenmuehle, Chicago, a Gov¬

29.17

645,075,148

122.28

114.85

120.63

118.60

114.66

106.21

110.70

114.27

119.61

114.85

120.63

118.60

114.66

106.21

110.70

114.27

119.41

122.05

114.66

120.43

118.60

114.46

106.21

110.70

114.27

119.61

ernor

122.03

114.85

120.63

118.60

114.66

106.21

110.70

114.27

119.61

Association

121.92

114.66

120.02

118.60

114.46

106.04

110.52

114.08

119.41

Feb.

121.97

114.46

120.02

118.60

114.27

105.69

110.15

114.08

119.41

121.58

114.27

119.82

118.40

114.08

105.69

109.97

114.08

119.20

2

121.33

114.08

119.82

118.00

113.89,

105.34*

109.60

114.08

118.80

34.17

700,987,495

120.88

113.89

119.41

118.00

113.70

105.17

103.24

113.89

118.60

builders

113.70

119.20

118.00

113.70

105.00,

108.88

113.70

118.60

terms

121.25

113.70

119.00

118.00

113.50

104.83

109.06

113.70

118.40

26

5

High

39.72

6,839,741,092

70.54

6,549,419,042

47.33

1,840,144.250

43.76

Financial-i—————

24,32

1,098.270,916

3,727,960.053

42.31

3,646,169,540

—52,493,066

31.43

50,303,430

493,694,568 ^

108.70

113.89

104.48

114.46
113.70

119.61

113.31

110.88
108.52

118.20

111.25' 100.65

104.48

113.70

much

118.20

106.21

116,22

120.55

113.50

118.80

120.23

111.25

118.20

116.41

283,964,690

42,343,357

9.14

103.42

110.87

117.80

115.43

110.52

95.77

100.32

Govt.

112.93

115.63

shelter

A

2.73

Corporate by Groups*

Baa

2.92

R. R.

3.38

? P. U.

3.12

Indus.

2.93

' .2.68

273.633,945

32.13

7——

1.65

for

the

2,160,383,293

29.49

6

1.63

he

26.32

5_

1

46.88

4,729,954,894

43.50

3,104,491,704

41.80

700,823,802

66.06

119,467,642

1,452,100,692

.

-—

-

'

1.73

52.80

2,537,023,534

50.18

42.01

665,978,5.50

40.25

53.31

1,377,537,122

50.59

2,586,848,380

29.97

of some
of the
long-term
mortgage plans, Mr. Dovenmuehle
ess

1.77

26—

1.75

&

15.77

1,409,531,062

14.81

High

93.06

3,893,190,582

90.54

Low

154,265,878

26.13

144,337,001

24.45

Cos. Operating Abroad
—i.
998,755,356
Foreign,Companies
•
——1,116,641,072

972,084,310

28.59

March 13, 1944

26.99

993,941,466

32.74

274,342,365

31.18

59,680,035,110

39.84

56,585,846,293

37.84

3.45

3.23

2.75

2.98

3.46

3.22

2.97

2.73

2,70

2.76

2.98

3.47

3.24

2.96

.2.74

2.97

2.97

2.72

shows

Communications
Miscellaneous Utilities

—-«

S.

Miscellaneous Businesses

Listed Stocks.
We

give below

a

listed

the Exchange:

on

V

Average

Market Value
1943
Jan,

'

—

30-

Mar.

31

49,421.855,812

Apr.

48,670,491,772

May

31

50,964,039,424

30

53,067,698,691

July

31

52,488,254,469

31

53,077,487,308

35.40

32.04

Sept. 30__—

52,929,771,152

35.75

32.82

53,086,843,093

35.84

32.96

48,878,520,886
47,577.989.240

33.27

32.17

47,710,472,858

Oct.

31

Oct.

30

48,178,040,869

32.44

Nov.

30

Nov.

30—

45,101,778,943

30.33

Dec.

30— __I

47,607,294,582

31.96,

Dec. 131^4

53,591,644,063

Jan.

Jan,
32.47

48,396,650,695

Eleciric

■

37.20

■

'X'%

'

28

.....

Iv

' ''r;

■::

that

the

' V

■

-

■

:

current weekly report, esti¬

630,000 kwh. in the«corresponding week
kwh. in the week ended Mar. 3, 1945.

in

••',v

•••;•

with 4,425,-

compares

a year ago,

and 4,472,110,000

Mar. 3

tThe

*1.1

0.9

*3.4

*1.9

1-7

2.8

3.5

'

'

7.3

9.1

8.8

:

6.3

Rocky Mountain

*2.1

Total United States
in

;

*8.7

'

'

V\

latest

6

Jan. 27

1943,

computing these indexes

0.2

0.7

11, 1942, page 2218.

Yields for 1942

are on page

1944

over

I

Industrials

3—

March 10

Utilities

(25)

(15)

4.6%
4.6

7.0%

5tf>%

3.8%

6.7

5.5

3.7

4.6

6.9

5.5

April, 1944
May, 1944
June, 1944

4.6

7.0

4.7
4.4

6.7

July,

4.5
4.5

1944—

August.

1944

September,
October,

1944

the

4.8%
4.8

3.7

4.8

5.6

3.8

3.8

4.9

5.4

3.6

3.7

4.8

At

5.2

3.5

3.7

4.6

year

5.3

3.6

3.7

4.7

5.2

3.5

3.7

4.7

$4,346.75 while the property value

shrunk to $3,300,
The real estate
would be worth $407.70 less than
the

5.3

3.5

3.7
3.6

5.3

3.3

3.6

4.8

6.1

5,2

3.3

3.7

4.6

6.3

5.2

3.3

3.6

4.6

5.9

5.0

3.3

3.4

4.3

4.4

.

4.2

monthly

summary

District—

loans

,

r

V ft 1944

1945

3,189

1945

'3,490 -y.

'.y

11,015

3,976,844

1,588,853

4,524,134

+

0.3

3,960,242

1,578,817

2,979.

3;,087

10,687
14,939

4,532,730

—

0.6

3,939,708

1,545,459

1,718,304

4,472,293

4,511,562

—

0.9

3,948,749

1.512,158

1,699,250

4,444,939

+

0.7

3,892,796

1,519,679

1,706,719

3,946.630

1,538,452

2,483

8.501

7,859

8,241

7,616
34,078

6,657

.6,278

1,163

1,350

4.155

4,337

Kansas

2,260

2,232

7.726

7,1257

2,000

2,005

6,021

6,274

'.;;•* 6,258

6,195

20,748

19,072

-

—

.

'

'

1,537,747

1,687,229

4,400,246

3,946,826

1,514,553

1,683,262

4,409.159

3,928.170

1,480.208

1,679.589

comparison Is

available for




the

3,889.853
week

contained
ended

the

Jan.

6.

1,465,076
New

sound.

Under

Year

1.633,291

holiday,

no

City

Dallas
San Francisco

Total, 334 centers
♦New York

Tuesday,

•140 other centers
193 other centers
•Included

in

the

—

—

national series covering

-

•

Monday,

Two

with

years

borrower

and

4

r

244,282

219,089

27,592

101,733

83,559

34,730

36,469

120,519

114,583 j

6,455

6,627

22,020

Year

available beginning in

20,947

1919.

March

1946——1

6,

March

March

weeks

Month

70,688

centers,

both

255.5

III

7—

12

_

:

2554

J

ago,

Feb.

ago,

ago,

Jan.

Feb.

1,

Nov.

7

255.3

255.2V
252.5
:-~±.

248.6
249.8

_IIIII

High, Dec. 30
Low,

255.1

255.4

27,

1944

255.0i
255.0
•

30_1___

1943 High, April 1
Low, Jan.* 2——
1944

__II

IlHIt

Tuesday, March 13

70,250

141

30

safety, but the 25-year

to

Wednesday,

29,065..

—

City

to

up

cer¬

prob¬

can

Thursday, March 8—
iJII
Friday,
March
9—
1_*
Saturday, March 10_—L~__III—I"'

1,702,570

ago

that the

Moody's Baity
§
Commodity Index

14,540

35,657

—

lend

factory

10,024

4,527

2,476

1,726,161

year

not

are

rhe

50-year home

90,993

1,728,203

a

and

10,762

108,975

30,028

Minneapolis

1.2

4,408,703

40

lender."

1944

"4,260

St.. Louis

+

the

loan should normally
prove satis¬

>

1,943

1,717,31£

week

for

reasonable

1,908

1,588,967

;

worth

would top the value of

tain conditions lenders

we

2,480

3,974,202

4,523,763

to

At the

claims

10,868

4^—1.2

.

50-

property by $656.20.

2,426

4,531.662

same

declined

said, "has convinced

of "bank debits," which

31,201

Chicago

..

the

reduced

$3,840.

gage

:[ 10,130

1,736,721

the

have

indebtedness.
years,

be

to

ably

Atlanta

1,733,810

3,944.679

would

end of 30 years the
50-year mort¬

February

1929

1,602,482

0.5

loan

the
20

The

FEDERAL RESERVE DISTRICTS

York

1,598,201

+

end

security
would
be
$506.75 less than the loan.

4.7

6.8

of
of

amount

the

would

4.7

3.5

Philadelphia

1932

re¬

duced to $3,707.70 while the value
of
the
property
would
have

6.7

Mar. 10 to its usual

3,952,587

4,425,630

years

be

3.8

Bank Debits for Month of

3,952,479

4,446,136

20

would

"This study," Mr. Dovenmuehle

1.7

0.2

end of

loan

6.6

4.5

+

+

the

40-year

(200)

Cleveland

w" •':<./!. {/;"

1943

to
Mr.
Dovenprojections we would

4.0

5.3

1944

life

50 years."

or

6.6

4.6

January,
1945|
February, I94ite.

homes

effective

an

3.9%

i

6.7

December,

building

have

According

Yield

7.0

1944

4,567,959

4,464,686

50-

deprecia¬
even

(10)

Boston ■''.

March 17

31—^—

Insurance

4.5

November,

are

will

muehle's

4.5

1944

4,539,083

4,472,110

the

on

annual

of more than 40

202, Jan. 14, 1943,

Banks

(25)

—

"we

which

Feb.

March 24—

Note—Because

that

COMMON STOCKS

Railroads

(125)

Federal Reserve

*0.9

4,505,269
—

2%

long-term loan will agree
and 2V2% deprecia¬
tion is light and a few will
say

-3 Months Ended-

4,473,962

—

Feb. 24

and

He observes that

those
builders who most strongly advo¬

Average

Richmond

1944

__

building
plan

tion.

find that at
200

(In millions of dollars")..

4,538,552

Feb. 10

$5,400

published

published in the "Chronicle" of June

are

MOODY'S WEIGHTED AVERAGE YIELD. OF

New

V

current rates.

a

year
was

valu¬

a

With the 40-year plan he assumes
2l/>% annual depreciation oh the

average

202.

page

*

*5.5

V

4,576,713
—

the

issue, and for 1943, on page 1130, March 16, 1944 issue.

4,588,214

percentage

14,

monthly yields for 1941

4,427,281

Jan. 20

jfavorable than the

"typical" bond

either

Moody's Common Stock Yields

4,614,334

■Jan. 13*.—,.

March

complete list of bonds used in

5.1

♦11.9

*9.8
*6.2

•'

1945

one

the latter being the true picture of the bond market.

SUMMARY BY

previous year.

-

Week Ended—

March

the basis of

.

% Change

Feb. 17

on

not purport to show

movement of actual price quotations.
They merely serve to
comprehensive way the relative levels and the relative movement

more

6.0

DATA FOR RECENT WEEKS (Thousands of Kilowatt-Hoursy

3

yields

do

give below:

*4.0

:V5 1.5

"

Feb.

and

assumes

*0.0
.

6.9
*

*5.2

0.5

♦Decrease under similar week

i ;

6.5

*5.6

Pacific Coast

:

years)

The Board of Governors of the Federal Reserve System issued

*2.8
,1

v ;

Southern States—

Jan.

25

Annual average yields for the years 1929 to 1941, inclusive, and

on

Feb. 17

Feb. 24

"0.5
j

West Central

'

2.87

The output of the week ended

Mar. 10

Central Industrial—

/

2.84

3.01

the issue of Jan.

in

Week Ended

Major Geographical Divisions—

'

2.97

3.73

PERCENTAGE INCREASE OVER PREVIOUS YEAR

V;:

New England
Middle Atlantic

.

3.48

4.02

average
a

averages,

Mar. 10, 1945, was 0.5% in excess of that in the same week last year.
*

3.71

3.14

maturing in

January, 1944
February, 1944—
March, 1944

production of electricity by the electric light and

approximately 4,446,136,000 kwh., which

was

3.10

2,88

He

of

$600 for the land and
$5,400 for the building and he
uses 4%
interest which is more

■

industry of the United States for the week ended Mar. 10, 1945,

power

2.83

2.76

39.84

'

\\

The Edison Electric Institute, in its

V

mated

i

:

'

Output for Week Ended Mar. 10,1145

1

2.74

3.20

37.84

Increased 0.5% Over Same Week Last Year

••

3.10

■

56,585,846.293

59,680,085,110

3i

Feb.

"

31,

36.14

'55,511,963,741
■

1945—

■V
•"•1944—

yield

35.07

Ave.

31.45

48.711.451.018

the

or

Illustrate

35.55

31.20

Sept: 30—

1.81
2.07

coupon,

34.14

June

45.845.738.377

311'—

level

50 years.

or

ation

32.59

48,437,700,647

Aug.

2.67

33.12

29

46,192,361,639

;

2.74

2.93

that this 2%

Mar.

30—

—

2.97"

3.12

a

cate the

Feb.

29-i
30^-

3.25

3.38

$

28.16

Apr.

31—

3.48

2.92

32.51

29.61

May
June

2.99

2.72

on

48,494,092,518

29

31_

July

Price

2.76.

2.62

•These prices are computed from average

(3%%

Average

v'i

$

1944—

$

41,410,585,043
43,533,661,753

-

Feb.,.27

<

Market Value

Price

$

1

2.71

2.91

would

happen if a
$6,000 property
prolonged to run for 40

would be

2. Years Ago

Df

*''1

.

2.98

1.65

March 13, 1943

total market value

two-year compilation of the

and the average price of stocks

1.80

1945
1945—

what

$5,400 loan

24.02

288,047,758

2.75

2.70

2.98

1 Year Ago

29.37

2.69

2.97

1.79

-

2.97

1.74

19
12

4,006,540,810

(Operating)
& Electric (Holding)—_—.

of how long a
originally provided for

To prove the actuarial unsound-

1.72

2

31.00

& Electric

last

regardless
was

1.69

9

12.62

!i

as

be

their amortization."

21.66

Jan.

may

home

time

21,764,840

V

13.70

it

buyers,"
mortgage
longer than 12

"Few

1.69

—

be

never

as

1.69

—

23

can

them

European home

ever

years

H.69

16

22.96

69.77

Feb.

loans

1.68

2

:■

695,196,412

—-

1.67

—

3

27.98

126,611.783
23,624,278
2,667,502.494

.

to

said.

1,654,723,096

43.79

change

extremely long-

home loan

attractive

31.22

32.70

days' labor,"

families

term

Aa

2.62

28.55

666,725,406

few

a

1.66

2.91

33.34

2,676,197,950
1,500,974,868

''

with

"American

1.66

6,697,391,224

pay

Even the savages
of the South Pacific
pay for their

1.65

29.42

50 years to

or

1.66

8.—-

34.98

40

man

their numbers, their jobs and their
financial and social positions so
often that the

Aaa

rate*

1.66

9_

3,235,467,872
740,162,176

Rubber-

All

a

he added.

(Based on Individual Closing Prices)
'Avge.
CorpcCorporate by Ratings*

Bonds
—

12—
10———

5,060,368,111

——.

—4_—

Merchandising

Ship Building & Operating

U.

financing plans
assumption that it will

the

take

1,795,179,129
701,709,143
7,164,117,807

'

Fetroleum—

so

it progress to base

MOODY'S BOND YIELD AVERAGES

U.S.

Dally

8.76

in

put

for his shelter?

tveragts

-

think

to

should

progress

emphasis on the very longloans," his report said. "Is

term

on

1945—

Mar. 13

a

accustomed

of

2,290,586,406

_i

Machinery & Metals
"Mining (excluding iron)
Paper & Publishing—

Tobacco—

104.66

114.66

.

37.93

60.49

861,977,757

62.23

44,181,461

Textiles

113.50

118.60
117.80

2 Years Ago

30.12

Shipping Services
Steel, Iron & Coke

117.80

1945

41.41

Realty—

119,00

120.63

I Year Ago

22.89

Food—-,,
Garment

113,50

114.85

March 13, 1944

67.54

1,990,145,889
886,694,016
1,167,009,124

—----—«

120.66

122.53

-

1945—

19.77

Electrical

Equipment
Machinery

.

of

in

25

12

32.28

the

Mortgage Bankers
America, said on
report analyzing
the
possibilities of longer-term
financing.
"It is surprising that

27.84

4,944,272,202
729,014,370

Chemical

Gas

of

121.09

Jan.

40.32

20.58

742,107,057
517,104,983

Building—Business ai)d Office Equipment

Gas

is

and

122.11

——

some

home

benefit

119.41

119.61

March 13, 1943

42.89

675,796.820
5,259,143,014
799,693.845

—

Automobile

$

$

$

Amusement

Utilities C

114.27
114.27

9

.

Retail

110.88

110.88

16

——Jan. 31,1945—

28,1945——

Market Value Av. Price

Group—i

Railroad

106.21

106.21

23——

Feb.

LOW

for each:

Leather

114.46
114.46

1___

listed stocks are classified by leading in¬

dustrial .groups with the aggregate .market

&

118.60
118.60

"19

-In the following table

Land

120.63
120.63

mortgage loan which

2

market value.

Farm

114.85
114.85

3

by U. S. Gov't, issues include
these ratios will ordinarily

collateralized

not

member borrowings,

122.50
122.42

5_

60-year

even

106.21

6

New York Stock Exchange
amounted to $890,544,258, of which

the close of business Feb. 28,

As of

or

home

122.53

8—

50

Indus

122.47

-

40,

P. U.

Baa

114.66

118.40

The

Corporate by Groups*
R. R.

A

122.47

10—
9

■■

Corporate by Ratings*

Corpo-

Bonds

iverages

Stock Exchange also

Avge.

Govt.

240.*
:

HI".~~

154.4
145.7

^.

»

X

Volume

161

figures showing the volume of total round-lot stock sales, on the
New York Stock Exchange and the New York Curb Exchange and
the volume of round-lot stock transactions for the account of all
in the week ended Feb. 17, continuing

members of these exchanges

being published weekly

series of current figures

a

Short

sion.

figures.

sales

by the Commis¬

shown separately from other sales

are

' *

in these

the Stock Exchange for the account of members
(except odd-lot dealers) during the week ended Feb. 17 (in roundlot transactions) totaled 2,277,101 shares, which amount was 12.47%
of the total transactions on the Exchange of 9,127,470 shares.
This
on

with member trading during the week ended Feb. 10 of
2,325,102 shares, or 12.96% of the total trading of 8,965,500 shares.
On the New York Curb Exchange, member trading during the week
ended Feb. 17 amounted to 545,839 shares, or 9.44% of the total
volume on that exchange of 2,891,124 shares. During the Feb. 10 week
trading for the account of Curb members of 699,620 shares was
12.36% of total trading of 2,828,219.
compares

Round-Lot

Total

Stock

Sales

York

the New

on

for

Transactions

Account

WEEK

ENDED

of

Stock

FEB.

17,

average prices
than 3% higher

increase of 3.1% for

an

foods

in primary

0.2%

higher than at this time last month they
a

B.

*

Round-Lot Transactions

for

Except

the

t

♦

t

of

Accounts

Odd-Lot

on cotton rope and twine.
Minor
were reported for Western
pine lumber.
Bichromate ad¬
nearly 7% as a result of OPA action in allowing higher ceil¬
ings for chromium chemicals in order to restore industry earnings to
pre-war levels.* A decline of 2.5% occurred in prices for mercury."

vanced

The

Labor

Department included the

"Note: During the period of

rapid changes caused by price

must

attempt promptly

be considered

as

report changing prices.

required by later and

as

following tables show (1) indexes for the principal

Total
:

v

•

618,670

from February 24,

105,530

percentage changes in subgroup indexes

1945 to March 3, 1945:

WHOLESALE PRICES FOR WEEK

3-3

Total purchases
Short sales

Commodity Groups—

1,201,050

—

the New York

127.2

•125.7

123.2

+ 0.6

+1.2

104.1

104.8

104.3

104.5

+ 0.4

WEEK

ENDED

FEB.

17,

Short sales—

12.47

-

Stock

—.

37,975
2,853,149

«■—.

—

V,

,

<

Total sales

:

-

177,130

0

Total purchases
Short sales—

Total sales

—

51,390

——-———————.

-—

tOther sales—-*—--

Total sales—

——-i—-w-*

O. Odd-Lot Transactions for Account of
Customers' short sales
—
:

'

.

252,369

9.44

0

—.————178,650

{Customers' other sales

178,650

Total purchases*.

Total sales*—..—.—.,.*.———88,376
•The

firms

"members"

term

and

their

partners,

includes all regular and associate Exchange members, their

including special partners.

percentages the total of members' purchases and sales Is
compared with twice the total round-lot volume on the Exchange for the reason that
the Exchange volume includes only sales.
tin

calculating

tRound-lot

these

short sales which

rules are Included with
{Sales

marked

are

"short exempt"

are

as

index of commodity prices
0.2% during the week ended March
3 to
in mid-February," saicj the U. S. De¬
partment of Labor in its report of March 8, which went on to say:
"A sharp upturn in the fresh fruit and vegetable markets to¬
gether with higher prices for livestock reversed the decline of the pre¬
ceding week and again brought the all-commodity index to 105.0% of
the 1926 average.
In the past four weeks the all-commodity index
has risen 0.3% to a point 1.5% higher than at the same time last
Statistics'

primary market level rose
equal the high level reached

department's announcement continued:

"Farm

Products and Foods.

since the summer

With an increase of 0.6% during

sheep,
and for

highest point
reported for steers and

prices of farm products rose to the

of 1943.

Higher prices were

white potatoes at Ghicago,
Eggs continued to decline season-

for cotton, for lemons, oranges,

apples at Portland, Oreg.




registered

ficiary

104.2

103.8

0

+0.1

+

0.5

116.7

113.7

0

¥+0.2

+

2.8

94.9

94.9

94.9

94.9

95.1

106.2

106.2

f 106.2

106.2

105.9

+

0.3

94.3

94.1

'94.1

94.1

93.3

+ 0.2

+0.2

+

1.1

116.2

115.7

116.2

115.3

0

0—0.2

0,0

issue

issue,

submitted in the form of
letter

the envelope in
came,
indicating the

with

together

113.2

+ 0.4

+0.8

+

2.7

which

94.9

Manufactured products
All commodities other than farm

94.8

94.8

94.8

93.5

+ 0.1

+0.1

+

1.5

serviceman's intent to

101.6

101.6

101.6

100.6

0

0+1.0

it

owner pr

1945

TO

and

vegetables,

3.1

Livestock

farm

products-

1.0

Iron

0.6

Lumber —*—J—

0.2

and delivered, together

man

and

quested redemption.
If the bonds
are
held in safekeeping by the
Treasury

Grains

slightly to the lowest point registered by the index this year to
ending March 10, 1945, from 139.8 in the preceding
week.
A month ago the index stood at 140.1, the all-time peak of
the index, and a year ago at 137.0, based on the 1935-1939 average as
100.
The Association's report continued as follows:
in

included

index

the

unusually
during the latest week causing changes in only two of the
composite groups in the index.
The farm products group was slightly
were

lower due to declines in the prices for raw cotton.

slightly and lamb quotations showed

foods index remained the

same

change

was

a

Rye prices also

small gain.

The

with the advance in the price for flour

offsetting declining quotations for potatoes.

Bank

will

or

The only other group in

NYSE Odd-Lot

Exchange
public
on
summary for the week
ended Feb. 24 of complete figures
7

a

showing the daily volume of sjock
transactions for odd-lot \£c£ount
ists

handled odd lots on the

who

Stock Exchange,

York

New

a

reports filed with the Commis¬
sion by the odd-lot dealers -and

specialists.
LOT

rir

TRANSACTIONS

STOCK

DEALERS
SPECIALISTS ON THE N. Y.
EXCHANGE

Ended Feb.

Week

(Customers'
Number

of
of

i;

1935-1939=100*

%

"

'
Preceding

Year

Ago

Mar. 3,

Feb. 10,

Mar. 11,

1945

1945

1944

142.9

137.8

145.3

145.3

146.1

•Customers'

163.1

163.1

and

Fats

23.0

Farm

157.4

Oils
163.1

Products

165.2

165.3

Customers'

Fuels.—i
Miscellaneous

—

Metals

6.1

Building Materials

1.3

Chemicals

159.9
130.4

133.4
155.5
106.4

104.4

104.7

Fertilizer

154.1

154.1

Drugs

Materials

118.3

154.1

152.4

125.4

-

total

6,671
.

sales

738,500

745,171

Dealers—

151.9

104.7

and

'

sales

other sales

Customers'

131.4

156.1

short

Dollar value

130.1

133.4

26,948

Number of Shares:

Round-Lot Sales by

148.2

130.4
133.4

__

Commodities

Textiles

.3

164.8

155.9

17.3
10.8
8.2

199.8

162.7

159.4

Livestock

203.4

163.7

163.7

165.0

207.2

Cotton
Grains

sales

159.6

+ 141.2

Cottonseed Oil

26,757

total

Customers'

^

Food

25.3

191

sales

Ago

Mar. 10,

Group

short sales

•Customers'

Week

1945

Bears to the

^

'

other

Customers'
Month

Week

Total Index

$32,231,166

Number of Orders:

.

Latest

.—

.

(Customers' sales)

Compiled by The National Fertilizer Association

Each Group

•

2,7,746
*82?,054

shares

Odd-Lot Purchases by Dealers—

PRICE INDEX

:

uA.Total

orders

Number

COMMODITY

1945

Dealers
purchases)

Dollar value
WEEKLY WHOLESALE

24,

Sales by

Odd-Lot

3*declines and 8

;

FOR THE ODD-

ACCOUNT OF ODD-LOT
STOCK

were

con¬

series of current figures
being published by the Commis¬
sion.
The figures are based upon
tinuing

During the week 3 price series in the index declined and only

in the second preceding week there

special¬

of all odd-lot dealers and

AND

3 declines and 7 ad¬

Trading

"made

Commission

Mar.

decline.

were

account/*

and

Securities

The

the textile group and it showed only a small

advanced; in the preceding week there

to_safe¬

be. returned

keeping for the owner's

Gommodily
Registers Small Decline

commodities

by any Federal Re¬
branch, the new

or

serve

139.7 in the week

of

with

who re¬

the bonds, to the relative

poultry.

and steel

bonds

Price Index

re¬

drawn to the order of the service¬

1945

MARCH 3,

the

from

proceeds

demption
over
and
above the
issue price of the new series E
bonds
will
be
paid
by check

products and foods**—*

24,

co-

name a

beneficiary.

a

"Any

—

V-mail

a

ordinary mail,

letter by

or a

is

evidence

101.6

Raw materials

Semimanufactured articles

of origi¬

subsequently by re¬

or

satisfactory

if

bene¬

co-owner or

a

be named 6ri ,the E

may

116.9

the index to

far

so

serviceman

104.3

125.4

Number of Shares:
Short

118.3

118.3

119.9

119.9

119.9

104.8

.104.8

104.8

104.2

174,630

Round-Lot Purchases by Dealers :
Number

119.7

Farm

sales

130

174,500

of

229,180

shares

117.7

Fertilizers

.3

sales

Total

I

sales

tOther

127,7

.3

*

the

116.9

7.1

year."

the week average

of

name

104.3

included with "other sales."

at the

The

the

in

104.3

2

Up 0.2% for Week Ended
March 3, Labor Department Reports
Labor

proceeds,

116.9

Wholesale Prices
of

entire

chase of series E bonds

advances.

Bureau

the

possible, be applied to the purat^

nal

declined

the

during

payment

0.1

vances;

''The

for

2.0

Prices

to the

or

0.4

exempted from restriction by the Commission'*

"other sales."

Federal

a

+

stable

Specialists-^—
——————

to

branch

+

clined

30,955,
221,414

————

or

+

The weekly wholesale commodity price index, compiled by The
National Fertilizer Association and made public on March 12, de¬

293,470

***_..—.«*«,
——*****—*..

_

them

Treasury Department with a rer

+0.2

National Fertilizer Association

2.77

a

owner,

surviving beneficiary,

present

Reserve Bank

+0.1

Other foods

<

of

in
the
name
whether as

—0.2

4.28

4. Total—

Total purchases—,

posses¬

maturing series A bonds

0

Decreases

108,665

Total sales—

,

of

+ 0.1

Hides and skins__*___.

8,500
100,165

—.

Short sales—.

tOther sales

invest¬

having

relatives

"Near

sion

con¬

their

on

V

+ 0.1

off the floor—

'

Short'sales—.

ment.

83.7

2.39

begin¬

benefit'bf

the

of

interest

tinued

-97.3

•

73,145

—

Total purchases,—

„

deprived

117.6

70.445

3. Other transactions initiated

'

they mature,

as

84.0

2,700.

~

tOther sales—

,

bonds

99.1

04,950

——.

a

ning this month, and should not,
because of their war service, be

117.9

2. Other transactions Initiated on the floor—

i

A

83.8

Increases

70,559

m

position to request payment of the

99.1

PERCENTAGE CHANGES IN SUBGROUP INDEXES FROM

19,755
50,804

——

be

not

118.0

Fruits

tOther sales

3.2

..

1.

————

continental

will

States

83.8

Other

Transactions of specialists in stocks In which
they are registered—
Total purchases
.
frShort sales.
——.

the

outside

United

was

in most cases^ service¬

that,

men

;w

v

recognition of the

99.1

\%

"

■

in

118.0

products—;

jp. Round-Lot Transaction for Account of Members:
'

established

83.8

FEB.
—

■;

procedure

99.2

2,891,124

——————-*,*

tOther sales-.

+

All commodities other than farm

1945

c

Total sales..

special

118.1

lighting materials

Miscellaneous commodities

Total for week

A. :Total Hound-Lot Sales:

announcement

bonds, either at the .'{time

(Share*)

Transactions for Account of Members*

3-4
1944

+0.2

Housefurnishing goods

Exchange end

Curb

2-3
1945

126.4

*

on

2-24
1945

104.5

Chemicals and allied products

1,040,400

tOther sales

3-4
1944

at

.

"This

fact

be

relative of '

Building materials

160,650

>-

,

The

may

bonds

E

near

Metals and metal products

1,076,051

Sales

1945

127.2

Fuel and

295,940

Stock

2-3

1945

a

says:

"However,

255,920

Total purchases.
Short sales

Round-Lot

owner.

fronts,

series

only.

Hides and leather products
Textile products—

4. Total-

Total

2-17

1945

Farm products**;

40,020

——

*,

Total sales

an

vided

1945

Foods

188,671

——
*—*

Total sales*

c

3,

All commodities.

286,880

—

2-24

1945

*15,100

271,780

Total sales———...—

...

MARCH

ENDED

adop¬

month in which they mature, pro¬

"

268,710
.

—

.

{Other sales

into

request of

quest

'

percentage change to
Mar. 3,1945 from—

Other transactions initiated off the floor—

3.

fighting

registered

512,700

purchases

tOther sales

the

on

converted

may

(£)

an¬

„

the

plan whereby maturing
United States savings

A

for February 3, 1945 arxk
4,1944, and the percentage changes from a week ago, a month
and

10

bonds owned by men and women

serviceman,

a year ago,

Bonds

Morgenthau

co-owner or

and

"A"

March

on

a

groups

—*;—._—**_*.—,

Short sales*

-

of

series

The indexes

complete reports."

more

Other transactions initiated on the floor—

2.

con¬

preliminary and subject to such adjustment

(1926=1001

■

following notation in its

report:

ago,
...

'Total sales

increase of 10 per

an

tion

of commodities for the past three weeks,

Odd-Lot

{Other sales—————

•,

result of

a

increases

specialists in stocks in which

Short sales

4

1

as

pound in manufacturers ceilings

The

Members,

/ Total purchases*—....——;

i

0.1%

rose

Secretary
nounced

the

Commodities.
Industrial
commodity markets re¬
fairly steady during the week. Higher prices for sheepskins
brought the index for hides and leather products up 0.1%. The index
for textile products also

Conversion of

Owned by Men Overseas

March

for Account of

they are registered—

.

:•

"Industrial

and revision

/ Dealers and Specialists:
1. Transactions of

same

mained

8,878,530

*.

—

the

at

were

^/.;A':'2-VA"

ago.

year

9,127,470

{Other sales—

v

t

markets

lower for rye flour, for eggs, and for apples, onions and potatoes
in certain markets.
Although food prices in primary markets were
were

tistics will

1%

248,940

'

more

trols, materials allocation, and rationing, the Bureau of Labor Sta¬

1945

Short sales

by

Stock

(Shares)

Total for week

A. Total Round-Lot Sales:
-

and Round-Lot

Exchange

Members*

were

,1189

\

■

-

,

Since the end
for farm products have risen 1.2% anjl
than for the week of March 4, 1944.
Led
fruits and vegetables, average prices for
rose 0.4%
during the week.
Quotations

level

t

Trading

;

Chicago and white potatoes at Boston and New York.
of January

^HJAJ..u'«ftj Vf*1

it1*1

were off slightly, with rye down nearly 2% and wheat
In addition, quotations were lower for apples and onions at

0.1%.

The Securities and Exchange Commission made public on Mar. 7

}

.

■■

■

ally and grains

New York Exchanges

on

.■r~-n

THE COMMERCIAL & FINANCIAL CHRONICLE

; Number 4368

Trailing

jtT.wvn !■*

+uj-itMK4m*?et Wtt-Mrt+U^tKuitUZhM!* >

Machinery

•Sales

piarked "short exempt"
"other sales."

are

re¬

ported with

tSales to offset customers' odd-lot orders,
All groups

100.0
•Indexes

and March

on

combined

1926-1928

11, 1944,

106.7.

base

.—

were:

March

10,

139.7

1945,

•

139.8

108.8:

March

140.1

3.

1945,

137.0

108.9.

and sales to

is

less than

"other

liquidate
a

sales."

a

long position whl«*
are reported witM

round lot

FINANCIAL CHRONICLE

THE COMMERCIAL &

1190

Engineering Construction
$41,893,000 for Week

crude oil production for the week ended March 3, 1945, was

The current figure, however, was an increase of 352,day over the corresponding week of last year and ex¬

395 barrels per

barrels the daily average figure recommended by the

ceeded by 8,320

1945.

Petroleum Administration for War for the month of February,

iftarch 3, 1945, averaged

Daily production for the four weeks ended

Further details as reported by the Institute follow:

4,765,950 barrels.

refining companies indicate that the in¬

Reports received from

approxi¬

dustry as a whole ran to stills on a Bureau of Mines basis

14,704,000

mately 4,753,000 barrels of crude oil daily and produced

gasoline; 1,554,000 barrels of kerosine; 5,026,000 barrels of

barrels of

fuel, and 8,585,000 barrels of residual fuel oil during the week

distillate

ended March 3,

1945; and had in storage at the end of that week 52,-

589,000 barrels of civilian grade gasoline; 45,014,000 barrels of mili¬
tary and other gasoline; 7,334,000 barrels of kerosine; 28,110,000 bar¬
rels of distillate fuel, and 45,021,000 barrels of
AVERAGE

DAILY

CRUDE

PRODUCTION

OIL

residual fuel oil,

week and the current week

Total U.

•State

Actual Production

Allow¬

Week

Change

ables

Ended

from

Ended

Ended

•P. A. W.

Recommen¬

Week

4 Weeks

S.

Construction

Public Construction

dations

Oklahoma
Kansas

Begin.

Mar. 3,

Previous

Mar. 3,

Mar. 4,

February

Feb. 1

1945

Week

1945

1944

State and

360,50Q

274,000

269,400

100

366,750

327,600

—28,450

t368,600
t244,400

260,350
900

1,300

—

In

Panhandle
North

;

Texas

Texas

East

Central

East

Texas

Southwest

Coastal

V

—

Texas-

141,450
349,150

392,000

376,000

6,100

+

392.000

—

'/

Texas

' v

'i'V;\'.

:V4_—

116,700

347,000

<-

2,140,000 12,143,749

347.000

290,550

562,100

/

„

Texas

562,100

515,000

-—;

2,152,500

Louisiana

Coastal

148,800

464,300
145,700

150.300

Total Texas

North

96,750

88,000

88,000
148,800
464,300

Texas

West

Louisiana

2,147,900

6,100

+

60,800

1,000

68,900

76,500

294,800

+

234,800

—

1,885,600

283,650

the

360,000

—

396,800

364,600

and

ing
drainage, and streets and roads.

1,000

+

360,150

363,700

Subtotals for the week in each class

of

construction
are:
waterworks,
$644,000;
sewerage,
$292,000;
bridges, $509,000; industrial buildings, $24,748,000; commercial build¬
ing and large-scale private housing, $1,357,000; public buildings,
$6,523,000; earthwork and drainage, $2,601,000; streets and roads,
$2,751,000; and unclassified construction, $2,468,000.
New capital for construction purposes
Afor the week totals $1,873,000, and is made up entirely of state and^nunicipal bond sales.
The

week's

total

a

15%

financing

new

above the

1945

brings

volume

to

$199,417,000,

$173,861,000 reported for the ten-week

1944

period.
Arkansas

i**

80,000

Alabama
Florida

—

81,100

—

1,000

81,750

53,400

+

1,950

50,800

250

250

25

50

50

205,900
12,700

218,300

..

80,317

•

20

-

Illinois

198,000

Indiana

—

207,350

12,000

12,500

...
,

1,400

+

200

—

Eastern—

Hcsi-Ferrosss Metals
March

13,100

*

(Not inch 111., Ind.,
Ky.)
Kentucky
Michigan

61,550

+

300

61,050

74,800

32,000

2.9,£00

—

2.200

30,850

23.050

+

2,300

46,900

47,000

46,800

Wyoming100,000

52.500

100,450'

—

300

100,400

23,000

20,650

+

950

19,900

20,800

9,500

Montana

10,300

+

850

9,850

8,250

103,950

112,900

—17,250

3,863,950

3,587,225

4,400

902,000

825,500

—12,850

4,765,950

4,412,725

Colorado -U
New Mexico

'

.

105,000

—

105,000

-

"E. & M. J. Metal and Mineral

68,200

'

—...

Delivery

Hugh Copper Tonnage lor
Quicksilver Price Lowered

-

•

103,950

93,100

'

Markets," in its issue of March 8,
"Though the price situation in major metals remains un¬
changed, unsettlement continues in some of the minor items.
During
the last week quicksilver prices eased
further, with sales of prompt
at $163 per flask.
Indium was reduced sharply under severe price
competition growing out of enlarged production.
FEA confirmed the
states:

upward revision in the settlementsTotal East of Calif.

3,863,000

California

3,859,220

893,800

§893,800

905,900

+

basis

for

the

concentrates

tained from Bolivia.

However,

advance of 3Vzc in the
Total United States
'P.A.W.

recommendations

production of crude
derivatives to

gas

4,756,800

4,765,120

and

allowables,

state

oil

only, and do
produced.

be

Includes

several

is

the

net

shutdowns
fields

shutdowns

6 days,
required to

and

which

shut

operate, leases,

as

exemptions

were

above,

Feb.

the

1

calculated

entire

entirely

and

on

month.

of

a.m.
a

certain

and

March

28-day

With

the

other

the

represent

condensate

are for week ended 7:00

of

for

exempted

of

natural

1, 1945.

basis

and

exception

fields

of

which

for

unchanged.

The Senate Banking
Committee
has

voted out the bill extending the
premium price plan until June 30,
1946."
The
publication further
went

to say

on

a

RUNS

in part

follows:

as

Copper

best

as

Conservation

Committee

of

TO

STILLS;

UNFINISHED

PRODUCTION

GASOLINE,

GAS

RESIDUAL FUEL OIL,

OF

California

GASOLINE;

OIL

WEEK

AND

ENDED

(Figures in thousands of barrels

(

Figures
;p-v.e. v.-

Oil

for

copper

Producers.

March

in

this

MARCH

3,

section

include

OF

FUEL

of

since

AND

175,000

tons
this

are
basis

the

or

totals plus an
therefore on a

more

shipment

in

more

month

to

month

any

started.

war

Whether

can

be

de¬

depends

on

and

transportation.
The warehouse situation, which
has hampered the movement of
copper in recent months, has im¬
manpower

,

reported

Mines

FINISHED

1945

amounts and

Bureau

than

livered

STOCKS

DISTILLATE

of 42 gallons each)

estimate of unreported

*

"

§ Gasoline
% Daily. Crude Runs
Refining
to Stills

Pro-

Capac- Daily
r,,

,

.

East

Coast

at Ref.

ity Re- Aver- % Op-

'

■

.

District—.

porting

age

proved.
{Stocks

duction

of

tStocks

Gas Oil

Inc. Nat.
Blended

88.2

1,782

dual

Fuel Oil

Mili-

& Dist.

erated

of Resi-

5,951

tary and

vilian

Fuel oil

Other

Grade

5,151

7,019

99.5

698

76.8

101

306

309

District No. 2-£_-

201

81.2

58

116.0

193

145

191 .1

87.2

822

95.9

3,072

3,617

—

-

? .la-, Kans., Mo
Texas

6,588

'

(

Lid., lib, Ky.__—

The

Ci-

69.2^:'

%

1,264

1,379

626.

970

'7,354

2,880

2,297

293

941

2,021

the end

35

15

27

20

64

1,707

7,866

748

1 260

1 981

Louisiana Gulf Coast.

10,606

96.8

235

90.4

No.

55.9

76

60.3

17.1

11

84.6

72.1

102

64.2

404

308

576

504

85.5

859

1,800

86.4

2,079

8,263

25,777

11,718

4,825

4,753

87.5

14,704

28,110

45,021

a45 014

•

s!734

Rocky Mountain—
District No. 3

District No. 4.„L—
California

-

.

1945

85.5

1945-

87.5

4,803

97.8

15,500

28,753

46,723

13,153

33,278

51,586

35,538

•Includes

currently
at

4,376

aviation,

military,

blending

indeterminate

to

as

and

ultimate

use,

muVthis wee:k, compared with 12,130,000
bulk terminals, in transit and in
5,026,000 barrels of gas oil and

barrels,

4,958,000

&ni }'li1,00S 4,
March

ended

Note—Stocks

»S*UUMi

7,514,000

naphthas,
and

and

11,977,000

barrels

-

of

■.

unfinished

barrels

pipe lines.

sine,

fuel oil produced during

a year ago.
tStocks at refineries
SNot includin 1,554,000 barrels of
kero¬

distillate fuel oil and 8,585,000 barrels
of residual

the week ended March 3, 1945, which
compares with 1,715,000
barrels and 9,084,000
barrels, respectively, in the preceding week

1944.
of

4'583'000 barrels an<* 8,575,000
kerosine

barrels

a

at

March

week

earlier

3,
and

1945

barrels, respectively in the

amounted

7,182,000

to

barrels

7,334 000
a

year

week

barrels

before.

as

'

'




-

lead

during

the

last

11,287 tons.
Primary unrefined lead produc¬
tion in Canada during November
estimated

by

a

sharp

increase

Dominion

the

Bureau of Statistics

stock®

solvents

50 953

\'

1944

of

as

17,839 tons,

over

*he

9,184

49,470

gasoline

45 019

U. S. Bur. of Mines

basis March 4,

April

52.000

52,000

52.000,

March 2

52.000

52.000

52.000

March 3

52.000

—

March

1
■

52.000

52.000

Chinese,

or

at 51.125c per

52.000
52.000-

52.000

'

52.000

52.003

52.000

March 7

'

'

\

VV>'

tons

Competition for business in in¬
dium

Zinc

in

booked

week,

volume

but

chiefly

by

zinc

metal

weakened

be

to

the

price

largely

a matter of
Producers who have

negotiation.
been

quoting $7.50.

52.000

99% tin, continued
pound.

and

chased

that basis without much

on

shopping around.
the

sharp

much

drop

stocks

in

of

metal

recent

the

have

is

for
has

and

years

"precious"
accumulating.

of

use

moderate,

indium

has

under

the

even

program.

$165

and even higher.
Forward
shipment quicksilver from domes¬
tic
to

sources

$163

at $160
Mexican metal

flask.

per

offered

was

for

shipment on the
basis of $158,
New York, duty
paid, vYith Spanish at $155 to $160,
depending on quantity. Estimates
probable

on

consumption

of

quicksilver this

year remain ex¬
tremely high, owing chiefly to the
"Tropical" dry cell program.

/

Silver
The

import, flow of foreign sil¬

has steadied

ver

sufficient

to

down

to

a

point

permit

revision

foreign

metal,

of
lists of essential war prod¬
ucts that may be made from the

some

lower-priced

the

War Production Board announced

Feb. 28.
sential

Possible changes in es¬
lists on order M-199

use

considered at

were

meeting of the
and

Silver

recent

a

Silver

joint

Producers

Distributors

Industry

Advisory Committees.

■

Leo

was

during the^last
was
purchased

consumers

who

feel

Crowley, Foreign Eco¬
Administrator, in a state¬

ment

issued

March

price to be paid
contained

the

in

lor

3,

said

Bolivian tin

concentrate

of

remainder

the

during

thef basic

tin

agreement will be increased from
The higher price is

to be effective from Dec.

19, 1944,
to June 30, 1945, the date of ex¬
piration of the basic„agreement.

Provision
schedule

made

is
of

smelter

for

a

new

charges

de¬

ing

has

expanded

that

to

WPB.

galvaniz¬
the

point

to

be

production

oL higher

The revised

grade
sched¬

provides for a retroactive in¬
of 2c a pound from July 1,

Bolivia,
he said, has agreed to cooperate
to keep production at highest pos¬
1944,

to

Dec.

sible levels.
a

shifted
and

made

from

to

per¬

lower-

priced foreign silver (45c per oz.)
Supply and requirements were
reviewed

the

at

meeting and of¬

ficials of the precious metals sec¬
tion of the Miscellaneous Minerals

Division

reported

supply

that

of

all

the

total

silver

in

1944 totaled

124,000,000 oz., com¬
pared with regulated demands for
120,000,000 oz.

Imports

of

silver

from

most

slightly in 1944,
WPB officials said, as a result of
heavy coinage demands, a world¬

wide labor
in

shortage, and some in¬
foreign industrial con¬

sumption.

The officials said they

crease

believed that imports in
hold

1945 will
closely to the 1944 levels.

The

London

quiet

and

18,

1944.

The amendment

labor clause under

producers

agree

silver

market

unchanged

at

was

251/2 d.

The New York Official for foreign
silver continued at 44%c, with do*

mestic metal at 70 %c.

New Msfual

Savings
Directory Reflects

All-Time Top

con¬

which

are

Directory issued

Banks,

of

which

increase

Figures

results of war-time
reflected in the 1945

Association

by the National
Mutual

notes

an

Savings
over-all

of

deposits
in
1844
amounting to $1,624,785,582. a to¬
tal
of
$13,331,810,630.
Mutual
savings bank assets approximated
about the

same increase, gain for
being $1,769,819,529, the total
becoming $14,812,651,197.
At the
year - end
depositors
numbered

1944

more

count

than

16

millions.

probably

welfare

to" maintain
standards of health and working
conditions.
No mention is made

from

mitted

be

M-199

Order

or

cation

believe

of

the

tains

certificates

changes,

A

signed to lend encouragement to

certain that they will obtain allo¬

Producers

List

savings

T.

nomic

crease

of business

priced Treasury or domestic silver
(71c per oz.) would, under the
proposed

of

at

Each

represented

least

ac¬

the

two

persons,
of the popu¬

about one-fourth

lation, says the Association, which
points out that the Directory shows
in

detail

informative

statistics

concerning mutual savings banks,
which

include

rates

of

interest-

dividends paid, the individual in¬
stitutions
operating
Christmas

Clubs,, school savings accounts,
deposit and life insurance de¬

safe

partments.

v

available

was

Imposing
Tiri

,

Quicksilver
for
quicksilver
was
moderate
throughout
the
last
week.
Business
was
placed in
nearby metal on the basis of $163
per flask,
whereas spot brought

"too

once

been,

in

reason

price

Production

indium."

expanded

war

The

iri

v

Demand

troy

per ounce

admit that $4 lis being named
wholesale lots carl; be pur¬

now

concentrate.

produced in October.

fair

has

structure to the point where quo¬
tations on quantity business ap¬

ule

A

'

'

52.000

52.000

March 6

May

countries declined

Indium

60c to 63V2C.

of March.

week amounted to

was
52 589

Total U. S. B. of M.
basis Feb, 24,

eral

Sales

Total U. S. B. of M.
basis March 3,

been

V 1,346 <

1,201

357

Arkansas.,.

have

Experts

733

1,702

969

&

necessary.

if

1,688

1,432

73.6

94.5

La.

still .further,

ling consumption

5,022

81.0

242

59.8

Coast.

view toward control¬

231

380
1,169

Gulf

a

C91

17,064

78.3

Texas

metal with

3,510

6,469

89.3

,»

Inland
.

supply situatiorf re¬
mains
about
unchanged.
WPB
officials are watching the flow of

studying the lead order for sev¬
weeks to improve the docu¬
ment.
The stockpile is expected
to drop to around 65,000 tons by

2,150

'■

critical.

been

lead

grades than Prime
have "to be used for

The situation in
Special High Grade also remains

Expansion

Lead

tGasoline Stocks

District No. 1

Appalachian—

March

March 1

available

other

Western may
this
purpose.

pear

Producers have earmarked

fabricators
AND

tin

where

Currency

dates

down

§Recommendation of
CRUDE

purchasing

left the selling price of

and

14 days, the entire state was
ordered shut down
during the month being specified; operators only being
suits their operating
schedules or labor needed to
total equivalent to 6 days shutdown time
during the calendar month.

definite

no

allowable

shown

amounts

basis

an

ordered for from 2 to

were

for

basic

as

include

not

tOklahoma, Kansas, Nebraska, figures
tThis

;

ob¬

'

con-

metal "

products that are now
required to be made from higher-

43,600

300

.

develop¬

pound for Straits

Certain

79,300

53,000

.

Mississippi

a

quality tin, with forward
nominally as follows:

in

are

current
Total Louisiana

price

The quotations

52c

at

classified

construction groups, gains over the preceding
waterworks, sewerage, industrial buildings, earthwork
drainage, and streets and roads.
Increases over the correspond¬
1944 week are in bridges, industrial buildings, earthwork and

week
-"Mv

Municipal

no

272,800

50

+

t900

1,000
.

30,244,000
1,592,000
28,652,000

Federal

360,000

J..

_—

Nebraska

Mar. 1,1945
Mar. 8,1945
$38,982,000
$41,893,000
6,276,000
26,270,000
32,706,000 '
15,623,000
1,553,000""
•
3,622,000
31,153,000
12,001,000

$44,579,000
14,335,000

__

Private Construction

were

here.

ments

tinued

are:

Mar. 9,1944

BARRELS)

IN

(FIGURES

premium of

a

pound. "

a

There

engineering construction volume in continental United
States totals $41,893,000 for the week.
This volume, not including
the construction by military engineers abroad, American contracts
outside the country, and shipbuilding, is 7% higher than in the pre¬
ceding week, and 19% above the previous four-week moving average,
but is 6% below the volume reported to "Engineering News-Record''
for the corresponding 1944 week.
The report, made public on March
8, went on to say:
Private construction gains 319% over last week, and is 83%
above the 1944 week due to the increased industrial building activity.
Public construction, however, is 52 and 48% lower, respectively, than
a
week ago and a year ago.
State and municipal volume is 133%
higher than last week, and 128% above last year, but federal work
is down 6i% compared with last week, and# 58% under last year
and is responsible for the decreased public volume.
1
The current week's construction brings 1945 volume to $278,584,000 for the ten-week period, a decrease of 22%. from the $385,386,000 reported at this time last year.
Private &ork, $93,482,000, is
16% above the 1944 period, but public construction, $185,102,000, is
down 33% as a result of the 38% drop in federal work. State and mu¬
nicipal volume for the ten weeks is 16% higher than a year ago.
Civil engineering construction volumes for the 1944 week, last

4,765,120 barrels, a decrease of 12,850 barrels per day from the pre¬

the statement of

lVzc

Civil

American Petroleum Institute estimates that the daily aver¬

ceding week.

in

Civil

Daily Average Crude Oil Production for Week
Ending March 3,1945 Decreased 12,350 Bbls.
age gross

Thursday, March 15, 1945

A number of changes

in official staffs

are

indicated.

;

Volume

Number

161

THE COMMERCIAL & FINANCIAL CHRONICLE

4b68

1191

Total Loads

Revenue

Freight Gar Loadings During Week
Ended March 3,1845 increased 13.42! Gars
Loading of

v

March 8.

of

1944

This

1,629

cars,

decrease below the/ corresponding

a

Loading of
cars,

107,030

Coal loading

the

below

4,264

3,921

4.045

6,369

5,139

an

417

469

1,834

1,772

1,758

1.658

3,307

3,192

313

312

319

280

to

108

118

117

581

746

ture

3,734

3,716

3,577

1,614

2,069

above the corresponding week in 1944.

51

51

130

121

1,251

1,201

1,064

2,565

2,809

429

500

340

850

916

Gulf, Mobile & Ohio

4,489

3,779

3.342

4,159

4,114

26,906

28,107

24,352

17,732

18,570

25,788

23,890

23,880

12,600

13,300

217

168

157

1,017

999

Illinois central System—
Louisville & Nashville

.

Mississippi Central
Nashville, Chattanooga & St. L.

.'

333

3,250

961

Norfolk Southern

preceding week, and a decrease of 8,434 cars below the

•

620

4,753

5,109
1,673

957

1,098

544

445

391

1,324

1,377

375

397

11,805

11,746

11,202

11,316

10,403

9',487

9,570

28,150

25,430

.

Richmond, Fred. & Potomac
Seaboard Air Line

.

Southern

.

System

1,798

of 916

cars

alone,
totaled

26,685

but

cars,

20,970

611

539

813

979

134

157

120

1,829

1,031

130,635

128,449

Total.

1,108 cars above the preceding
below the corresponding week in

cars

loading amounted to 13,995 cars, an increase of 1,103

above the

preceding week but a decrease of 1,064 cars below the

In the Western Districts alone loading
totaled 10,323 cars, an increase
of 941 cars above the preceding week, but a decrease of 525 cars
below the corresponding week in 1944.

corresponding week in 1944.

of livestock for the week of March 3,

Forest products

loading totaled 41,069 cars, an increase of 3,603
cars above
the preceding week but a decrease of 2,111 cars below
the corresponding week in 1944.

increase of 2,203 cars
increase of 919 cars above the

Ore* loading amounted to. 14,394 cars,
above the

preceding week and
corresponding week in 1944.
Coke
below

an

an

loading amounted to 15,312 cars, a decrease of

the

of 429

but an increase

preceding week,

cars

167 cars

above the

corresponding week in 1944.
All districts

reported decreases compared with the corresponding

week in 1944 except the

Southern and Centralwestern.

All districts

15,712

14,700

14,761

14,708

2,373

2,570

2,389

3,536

3,708

21,160

19,978

19,353

11,140

10,862

Chicago, St. Paul, Minn. & Omaha

3,351

3,837

3,757

4,328

4,392

Duluth, Missabe & Iron Range
Duluth, South Shore & Atlantic

1,446

1,262

1,265

244

245

697

834

595

626

510

Elgin, Joliet & Eastern—

8,751

8,788

9,050

13,391

407

421

102

1945

1944

3,001,544

of, February.

3,158.700

2.910,638

3,154.116

3,055,725

1943

6,169

10,430

12,618

10,762

*447

457

469

210

300

245

70

55

Minneapolis & St. Louis

1,886

2,130

2,820

785,264

786,893

748,926

7,099,70.9

6,715,289

3—

4,376

4,559

3,616

4,061

Northern Pacific

8,946

10,235

8,898

6,169

The following
the separate

table is

of the freight earloadings for

a summary

railroads and systems for the week ended March 3, 1945.

'During this period 61 roads showed increases when compared with
the

REVENUE

LOADED

FREIGHT

AND

(NUMBER OF CARS)

RECEIVED

FROM

250

;;

Total

———

-

84

79

426

2,135

3,416

2,827

86,982

80,807

71,701

68,793

Central Western District—*

22,953

21,417

19,837

15.075

12,199

—-3,382
341

3,033

2,7.98

.4,543

4,132

517

472

70

Chicago, Burlington & Quincy
Chicago & Illinois Midland

19,070

19,676

18,983

12,659

•

r

'

2,952

3,094

989

1,030

Chicago, Rock Island & Pacific
Chicago & Eastern Illinois

11,065

11,026

12,416

14,166

12,420

2,700

2,641

2,375

4,137

5,693

—,

758

766

747

2,406

2,183

j.

3,782

3,385

3,612

6,638

6,256

663

751

834

17

12

:

836

647

838

2,126

1,787

2,396

913

964

908

586

1,302

1,764

;*•'

—

Received from

Connections

2,047

98

1945

1944

279

256

1,571

1,662

2,477

2.309

609

264

1943

1944

Bangor & Aroostook
Boston & Maine...

7,426

Central Vermont

1,482

1,295

2,211

2,432

33

55

42

35

987

1.092

2,540

2,494

4,927

5,026

6,076

15,169

14,667

7,129

7,666

7.353

11,751

10.808

186

229

241

142

129

1,624

1,763

1,617

2,370

1,776

446

307

299

4,534

3,972

13.356

12.309

18.459

18,796

4.035

—

_

17,111

991

-

_

15.843

12,498

Central Indiana.

6,176

37

Chicago, Indianapolis & Louisville

6,641

1,278

—

3,966

*

Delaware & Hudson..!
Delaware, Lackawanna & Western

Detroit & Mackinac

f

Detroit, Toledo & Ironton
Detroit & Toledo Shore Line
Erie

—

_

Maine Central...

-

_

-

-

Monongahela

10,010

712

739

36

0

0

29,384

28,163

26,094

16,028

13,773

313

169

4,298

3,453

1,916

1,356

9,154

6,907

14,772

2.495

4,698
304

#
s

5,906
2,624

2,421

17

46,356

55,400

10.818

9,463

20,284

545

1,147

862

3,140

6,724

18,746

506

503

432

2,803

2,927

7,635

7,522

7,797

8,028

5,208

4,726

4,416

9,471

8,771

Pittsburg & Shawmut

683

762

827

26

23

Pittsburg, Shawmut & North

279

336

341

234

225

Pittsburgh & West Virginia

833

970

811

3,928

323

1,117

<

'

2,659

Rutland

384

400

Wabash

6,059

5,987

5,467.

Wheeling & Lake Erie

6,212

5,083

4,955

5,379

4,566

158,858

159,498

151,336

252,634

251,376

571

1

6

1,511

1,880

4,241

3,935

■

—,

118,644

122,848

113,969

98,087

105,343

-Ty y:

per

0.356%

annum.

.

■

(57% of the amount bid for at
the

low

price

was

was

There
lar

issue

maturity of

accepted.)

a

of

bills

simi¬

a

March

on

15

in

the amount of $1,207,016,000.

Bank

Holdings Of
Govts, Up In St. Louis
ST

_

311

651

272

329

6,842

.

Reserve District
Member

7,804

4,892

2,651

2,887

1,810

aid

4,050

3,718

the

to

than

Federal

The

the

has

14

3,028

2,680

2,605

263

301

1,286

1,216

542

683

343

110

187

145

431

465

Missouri-Kansas-Texas Lines

*6,743

5,729

5,621

*5,003

4,964

Missouri Pacific.

15,548

15,433

16,138

18,727

19,874

46

123

50

347

257

ment

cents

Missouri & Arkansas

"

Quanah Acme & Pacific

9,031

2,766

7,616

6,926

12,601

5,500

5,596

5,377

4,359

8,319

7,927

8,472

_

St. Louis SouthwesternTexas & New Orleans.
__

..

8,361

2,845
12,369

5,246

._

__

7,947

3,519

10,943

St. Louis-San Francisco

Texas & Pacific

539

8,286

Wichita Falls & Southern

76

24

69,960

44-

35

25

28

65,748

69,054

71,416

22

69,565

76

30

79

Weatherford M. W. & N. W.

■

loans.

for

how hold onl,

banks

of

cents

2,802

.

.

in

the demand

reduced

and

loans,

417

_

bank

securities

held

cash
position of business and individ- ;

343

__

_

_

Si.

assets in loans, but the high

3,300
__

of

amounting to about 48 cents o.
dollar of total assets as com
pared with '39 cents in 1943.
In
former years member banks hek.
a
substantial proportion of their,

1,159

_

Bank

said:

member

average

1944

according to a
Mar. 5 by the

every

3,860

Midland Valley-

Eighth

on

Reserve

district

658

City Southern

before,

The Bank

Louis.

2,741

Litchfield & Madison_

the

effort during

war

ever

statement issued

307

.

in

Federal Reserve Dis¬

trict contributed greater financial

4,343

_

..

banks

(St. Louis)

247

Tntftl.

ik-

nil in

iii

V"

nr

" r-Vrmn'-r

each

asset

dollar

ir.

1944, banks kepi
their funds more fully investe.
than a year ago and reduced the
funds necessary for reserves ant!
working balances to 31 cents c'
During

each dollar of assets.
of

each

on

banks

taxes

one

of

total

assets,

as

was

earned

dred dollars of

After pay
earned 7 h

hundred dollar

the

same

last

dends of $3.10 for

-

—

week's

amour...

year.

each

one

Divi
hur.

¬

capital stock were
an increase c!

1,182

12,839

13,613/

806

699

681

1,578

to

Note—Previous year's figures revised.

42,208

38,576

33,256

2,061

2,876

1,705

t'

( '

The

members

of

this

Association

represent 83% of the total
industry, and its program includes a statement each week from each
member of the orders and production, and also a figure which indi¬
cates the activity of the mill based on the time operated.
These
figures are advanced to equal 100%, so that they represent the total
industry.
I
REPORTS—ORDERS,

Period

Production

Received

Orders

Tons

36 in

Ended March 3, 1945
According to the National Lum¬
Manufacturers
Association,

ber

Activity

Remaining

of 465 mills re¬
National Lumber

lumber shipments

porting

to

the

Barometer

Trade

of

orders

new

9.4%

were

production for the week
3, 1945. In the same week

March
Percent of

now

Lumber Movement—Week

above

PRODUCTION. MILL ACTIVITY
Unfilled

Orders

have deposit
whereas ther ;
1943, and 95 in 1939.

only *17

of $500,000 or less,
were

We give Herewith latest figures received by us from the National
Paperboard Association, Chicago, 111., in relation to activity in the
paperboard industry.

1,384

•

the previous year.

gain deposits during 1944.

trict,

Weekly Statistics of Paperboard Industry

27,772

3,127

over

the 460 member banks in the dr

1,264

40,271

cents

1944,

Practically all banks continue

tlncluded in Baltimore & Ohio RR.

figure,

in

declared
10

♦Previous

STATISTICAL

Baltimore & Ohio

approximately

Low, 99.905, equivalent rate of
approximately
0.376%

1,668

Allegheny DistrictAkron, Canton & Youngstown

approxi¬

anum.<f

discount

uals

339
__

.

Bessemer & Lake Erie__-...—.—.

per

per annum.

5,873

17,271

7,£50

Total...

discount

4,625

3,547

6,396

Pittsburgh & Lake Erie

Western
!

639

1,949

21.819

870

Pere Marquette

N. Y., Susquehanna &

17,096

57,784

«

6.726

Louis—

2,034

16,967

V'T 22

48.230

11,057

.

New York, Ontario & Western
New York, Chicago & St.

discount

of accepted competitive

Range

2,706

Kansas

362

2,371

N. Y., N. H. & Hartford

2,218

13,529

»

—

.

Western Pacific———.—

4,151

6,289

of

rate

mately 0.375%

16,157

2,476

48,459

New York Central Lines

345

15,469

1,479

5,761

:

Montour

471

16,863

9,965

189

7,917

__

1,944

2,621

Lehigh & Hudson River.
Lehigh & New England

3,562

160

1,741

Grand Trunk Western...

Lehigh Valley

■•i

lent

113

766

18

Toledo, Peoria & Western
Union Pacific System
Utah—

International-Great Northern

284

—

486

708

738..

Peoria & Pekin Union————————
Southern Pacific (Pacific)

Kansas. Oklahoma & Gulf.

2,700

1945

Eastern District—

Ann Arbor

1,667
•;p

7

Nevada Northern

Louisiana & Arkansas
,

1,942

1,396

2,145

City

Illinois Terminal

Missouri-Illinois.

3ulf Coast Lines

Total Revenue

■

$2,085,514,000.
$1,315,908,000 (in¬
cludes $62,392,000 entered on a
fixed price basis at 99.905 and ac¬
cepted in full).'
Average price 99.905, equiva¬

Total accepted

12,267

3,139

—...

—

Burlington-Rock Island

Freight Loaded

Railroads

as

99

Atch., Top. & Santa Fe System

Alton.i..^,^^>
;
Bingham & Garfield

Southwestern District—

Total Loads

are

'

569

2,429

81,493

,

CONNECTIONS

WEEK ENDED MARCH 3

of this issue

follows:

955

*887

2,595

Spokane International

Spokane, Portland & Seattle

Total-——lI

corresponding week a year ago.

on

5,608

Lake Superior & Ishpeming

North Western Pacific——

Total

were

2,401

Minn., St. Paul & S. S. M

2,121
5,350

Green Bay & Western

Fort Worth & Denver

6,836,505

Week of March

which

March 12.

122

5,427

Dodge, Des Moines & South

Denver & Rio Grande Western,

3,049,697

Weeks of January..

4 Weeks

1945,

March 9, were opened

on

the Federal Reserve Banks

at

12,343

356

Ft.

Great Northern

Denver & Salt Lake
4

14,

bills

15 and to ma¬

High, 99.910, equivalent rate of
14,219

Chicago Great Western

Colorado & Southern

reported increases compared with 1943 except the Pocahontas.

116,488

Northwestern District—

Chicago & North Western
Chicago, Milw., St. P. & Pac

Livestock

124,148

127,838

.

Treasury

bids:

increase of

an

decrease of 5,526

a

1944.

cars

22,656

623

Winston-Salem Southbound

the corresponding week in 1944.
In the Western Districts
grain and grain products loading for the week of March 3,

below

week

loading totalled 41,380 cars, an increase
above the preceding week but a decrease of 6,901 cars

24,094

Tennessee Central

1944.

Grain and grain products

June

Total applied for

524

2,938

503

Piedmont Northern

of 91-day

be dated March

The details

221

278

3,091

abouts,

offered

56

Georgia
Georgia & Florida

Macon, Dublin & Savannah

thej Treasury

March 12 that the

op,

tenders of $1,300,000,000 or there¬

235

429

Secretary of

announced

1,627

Gainesville Midland

amounted to 162,693 cars, a decrease of 7,624 cars

corresponding week in

1,871

11,987

Florida East Coast

cars, an

increase of 2,119 cars

an

1*629

12,550

Durham & Southern

of merchandise less than carload lot freight totaled
increase of 5,555 cars above the preceding week, and

Loading

<

The

606

14.364

Columbus & Greenville

of 7,832 cars above the

above

2,616

2,537

Treasury
Offering

Bill

": 413

724

Clinchfield

increase
preceding week, and increase of 13,414 cars
the corresponding week in 1944.
cars,

:

14,237

Charleston & Western Carolina

freight for the week of March 3, increased
above the preceding week.
■
•

38$,391

841

886

1944

,

359

236

317.

881

1945

1.073

Central of Georgia

,

freight loading totalled

Miscellaneous

1943

1944

14.482

Atlantic Coast Line

revenue

1.7%

or

,

Atlanta, Birmingham & Coast

0.2%, but an increase above the same week
4.9%.
,
x

or

Connections

384

Atl. & W. P.—W. R. P.. of Ala

Results 0I

RvoeiVeu Irom

1945

Alabama, Tennessee & Northern

week of

in 1943 of 36,338 cars or

13,421

Southern District-

freight for the week ended March 3, 1945
the Associated of American Railroads announced

was

Total Revenue

Freight Loaded

revenue

totaled 785,264 cars,
on

Railroads

those

mills

were

than production.
Un¬
filled order files of the reporting
1.0%

more

t

f

Cambria & Indiana

1,665

1,757

1,938

11

Central R. R. of New Jersey—.—

6,497

7,085

6,540

21,842

20,649

December

189,731

154,682

484,811

94

94

501

637

598

44

71

December

173,669

154,822

501,946

95

94

156

201

282

14

8

December

16_____

137,936

152,695

480,929

94

94

For

104

108

130

59

40

December

23

126,115

149,031

451,891

94

94

filled orders

1.527

1,215

806

3,916

4.006

December

30

109,895

88,105

471,289

57

93

Buffalo Creek & Gauley

Cornwall

—

Cumberland & Pennsylvania

Ligonler Valley
Long Island
Penn-Reading Seashore Lines
Pennsylvania System

-

t
.

^

H

2

1,764

1,643

1,568

78,427

78,232

70.830

66,113

66,958

15,060

15,749

14,124

31.321

31,002

18,824

;

Reading Co
Union (Pittsburgh)
Western

258

19,374

20,621

5,090

3.260

2,583

1944—Week Ended

2,751

'Tons

2

•

'

9

Period

Tons

\

.

''

3,993

4,004

16,546

14,520

174,962

163,832

184,078

173,687

January

189,769

125,882

532,194

January

13^.

149,921

150,011
150,876

503,240

27—

159,885

152,075

510,931

80

524,308

20—.—131,901

95

89

95

91

92

91

26,859

27,189

29,132

12,794

11.211

Norfolk & Western—

20,833

21,231

22.888

10,505

7,895

4,399

Virginian

4,279

4,726

2,608

52,699

56,746

25,907

21,354

151,307

560,960

93

149,816

553.609

93

152,755

529,238

97

93

3—.1—181,377

150,486

558,285

96,

93

March

Notes—Unfilled

orders

of the prior week,

565,064

plus orders received,

<

ders by




...

of

unfilled

1

orders.

less production, do

-

1

curren

equiv¬

18.0%.
the average cor¬

responding week of 1935-39, pro¬
duction
of
reporting mills wr

necessarily equal the unliilled orders at the close.
Compensation for delinquent
reports, orders made for or 2ill6d from stotk, and other Items made necessary adjust¬
ments

the

year-to-date, shipment'
identical mills ex¬
production by 11.5%; or¬

Compared to

not

Total-

at

days' production.

reporting

ceeded

92

131,989

of

92

145,541

2,248

52,091

148,139

149,590

February 24

Chesapeake & Ohio—i—

204,550

-

34

For the

87

94

'

to

80

February 17

••—

production

rate, and gross stocks are

February lo

Districts-

days'

'

January

3

reporting softwood mills, un¬
are equivalent to 37

alent

6___

February

Pocahontas

mills amounted to 100% of stocks

19£5—Week Ended

January

3,842
172,571

Maryland

Total.

Current Cumulative

29.7%
19.9%

greater;
greater,

,19.4% greater.

shipments
and orders

werr
were

THE COMMERCIAL & FINANCIAL CHRONICLE

1192

$977,000,000 Goods

Items About Banks, Tiast Companies
"The action taken by the stock¬

regular meeting of th*3
of
the
National City
Bank of New York on March 13
the

At

holders

directors

yesterday

recom¬

was

appointed
Vice-PresidentHe joined the
National City organization in 1999
and since 1913 has been associated
in various official capacities with
Charles V. Sheehan was

of director-'

the

and

Comptroller of
rency has indicated hi&
have
preferred stock
eliminated/' added Mr.

the Cur ¬
desire to
of banks
Shea.

Capitalization of the Nation-".!
prior to his return to Head Bank of Germantown & Trust
Office spent considerable time in
Company of Philadelphia has
Rio de Janeiro, Brazil, and later increased to $500,000 from $400.in London, England.
000, it was announced today by
and

It is also announced that at the
National

the

City

Sperry

was

Vice-President.

sistant

resigned

of

the

March

of

8.

"The announcement said the in¬

and

through thy*
of

effected

was

crease

Aircraft

Bell

Bulletin"

"Evening

which added:

has

Vice-President

as

Treasurer

He

from

learned

Bank
Louis
appointed As¬

President, it b;
the
Philadelphia

K. Morris,

Glenn

meeting of the directors oi

Fenn

Son! Australia From

Of

U. S. Under Lend-Leass
received

Australia
of

worth

goods

$977,000,000
materials

and

the / United

from

lend-lease

the Overseas Division of the bank

same

Seventh War Loan Drive For $14 Billion; Quota

under

States

to Jan. 31, 1945, R.
V. Keane, Customs Minister, told
the Senate at Canberra, Australia,
up

March

on

Associated

there

it

1,

is

Press

which further

saie of 10,000 additional shares

to

the banking business in

from

which he
to going
main
assignment had to do with finan¬
cial planning.
He was formerly
with
the Guaranty Tru'st Com¬
pany; Vice-President of the Na¬
tional Bank of Auburn, in Au¬
burn, N. Y.; First Vice-President
prior

years

many

Pittsburgh "Post Gazette"
reported on March 8 that "the
liquidating agent is paying a $6

in New Brunswick, and

fjS?

.

was

upward turn last year."

■"

t,

i.: V

...v

Announcement

has

been

Treasurer

as

Savings

the

of

Bank.

Mr.

.

»v '

who

President

of

the

Banks

of

"Courier-Journal" of March 9 the

i

Life Insurance Co. the

Louisville

old

fore Vice-President of the Boston;

'

aid" advices of March 7 said:

Vice-Presi-!

dent and Trustee of the bank, the
|
largest savings institution in Newi
England, since November, 1932.
Previously he had been VicePresident of the First National
of

Boston,

with

became associated

on

which

he

his gradua-

tion from Harvard in 1921."

i

President
will

be

An

offering of 8,000 shares of

of

of

the

First National

Boston, at $56.50

Bank

share,

per

was

of

the

that

Bank

of

corner

L. A. McLean,

Fifth arid Market.

trust

the

remodeled

company,

ground floor

for

occupancy

by the trust company by about
June 1.
The paper quoted said,
in part:

"The five-story brick structure,
originally known as the Bull
Building, at one time was among
the show places along Louisville's
waterfront.
For many years it

the

was

home

of

Louisville-

the

j National Bank, which in 1928 be¬
came
a
part of the Louisville
Trust

stock

National

northeast

Five-Cents Savings Bank, Boston,!
announced
Mass., has been elected President I
Boston "Her-

Co.

It

acquired by
Metropolitan Life in 1-333.
"Mr.
McLean
said
the
new
was

office, to be known

March 7 by F. S. Moseley
& Co., Estabrook &
Co., Coffin &

space

Burr, Inc., and Kidder, Peabody &

the South¬

as

growth."

made

on

Co.

Trust

ern

Co..

for

provides

anticipated

needed

post-war

'

This

Ward

E.

Smith,

retired

Vice-

President of the Industrial Trust

Co., Providence, R." I., died on
March 6 at 79 years of age. Before
his retirement in 1943 Mr. Smith
had been connected with the bank
for 53ears.

The

First

National

Bank

and

Trust Co. of Bridgeport, Conn., at
a stockholders'
meeting on March
9, voted to issue 120,000 shares of
common

stock at $5 a share.

income from the sale of the
mon

The
com¬

shares will be used to retire

$600,000 in preferred stock, it was
stated in the Bridgeport "Tele¬
gram," which said that it was also
voted to allow the present share¬

holders to subscribe to the new
stock share for share at par value
of $5 a share.
The "Telegram"
also reported:

H:

month

Liberty State
Dallas, Texas, with more
$30,000,000
resources,
ob¬
its

serves

the

State

Bank

Australia
which

the

in

have

than

seven

increased

No

are

the

at

celebration

of

end

or

First

manufacturers

1937.

De-

National Bank

election

of

Norman

position of Cashier

United

States

Portland,

Ore.,

National
was

an¬

"Mr. Hanks has been

obtaining

n.ew

capital

time."




at
'•

that

Bank's

United
staff

Fifth

Loan_

$460

$674

$1,134

Loan—

295

505

800

367

S74.

1,041

384

527

911

366

43C

790

War

War

War I/ran

Fourth

War Loan..
War

Loan

sales

"Final

York

New

bond drives
the

individuals

to

State

in

in

the last four

Sixth;

$1,010,000,000 in

$899,000,000

in

the

the

and
and

War

Seventh

contribute

for the increase in the

reason

Loan's

individual

Also, because the income
American people in the

quota.
the

first

Treasury Department is planning
to secure as much as possible of

from

a

States

since

held

1925

member

National
and

positions,

has
as

bookkeeper, Teller in the savings
department, Manager of the sav¬
ings department, and as assistant

months

six

larger

West

than

excess

checking

accounts
"'L

'

.

•

He

'

*

G.

Clifton-Brown,

a

partner

Westminster

Ltd., ac¬
advices from London

to

Bank,

under date of Feb. 20,

The

New

York

Bank

of the
Corporation
(head

states that the bank

agency

in its statement of condition

Dec.
of

as

of

31,

1944, showed net profit
10,510,496 Swiss francs, com¬

pared with 10,241,943 Swiss francs

1943,

and

total

Swis^

assets

of

francs

as
against 1,473,255,671 Swiss francs.

Capital and
same,

francs.

reserves

Remained the

192,000,000 Swiss
Total deposits (including

namely,

sight, time and fixed) were 1,316,785,841 Swiss francs, as against
1,255,811,460 Swiss francs a year
ago.i

.•

*•

is

ex¬

the

before,

ever

as

of

firms,

its

for

program

the

thou¬

factories,

plants

business

organizations
throughout the State. Each con¬

whether large or small, Mr.
^idi win be assigned its
Cwn quota, based on the
average
earnings of its employees, and
cern,

Gehie

be

the

asked

achieve

to

best

manner

The

employee

make

extra

ments

in

suited

will

War

this

to

be

in

itself.

asked

Bond

to

invest¬

12

weekly installments,
starting April 9 so that the bonds
purchased will be issued prior to

July 7'.
Bonds purchased under
the Payroll Savings Plan will not
be

limited

E's

to

but

will

also

include F and G Bonds.
"What has been assigned to the
people of New York State for this
greatest

of

all

War

Loans," Mr.
"is
a
fitting
home-front to

Gehle

declared,
challenge to the
match

the

exceptionalfy

achievements
months

of

provided
tion

to

we,

Even

1945.

Our boys have
magnificent inspira¬

a

too,

brilliant

land, on the sea
during these early

cn

and in the air

home

at

us

have

without

to

show

victory
the

that

at

heart.

it

seems

rest,

to me that what happened on Iwo
Jima should be sufficient to
spur
us
over
the top in our historic
task

in

the

Seventh

War

Loan."

ina

Security Farley Aims
The Chinese
San

1

^

.

noted

that

the

Seventh

the

;

The

in¬

increased

War

increase

Loan

to

for

New

York is

slightly less than the rest
of the country, or 56%.
In the
Sixth War Loan, he said, New
York State was assigned 11.8% of
the
national
E-Bond
goal,
as
against 11.5% of the $4,000,000,000
target in the Seventh.
Mr. Gehle further said:

der

to insure

its

greatly

"In

or¬

the achievement of

enlarged

Government looks

the

adoption

Francisco

by

conference

the

of

a

tional

organization,
Dr.
Wang:
Shih-Chieh, Minister of Informa¬
tion, declared in a statement re¬
leased

at

a

conference, it
Chungking

press

reported

from

March 8

(Chinese News Service)„
according
to
the
New
York
"Times," Mhrch 9, which went on

to say:

;

His statement said:

"China
the

concurred

decision

meeting

at

speedily int
three-power
regarding the

the

of

Yalta

convening of the San Francisco
conference, and has sent out in¬
vitations as one of its
sponsors.
The Chinse Government looks for¬
ward to the adoption by the con¬

ference
ment

of

of

satisfactory

a

international

instru¬

organiza¬

tion.

"By way of explanation I would
like to point out that our

.

national

$7,000,000,000 from $5,000,000,000
in the Sixth, the big increase be¬
ing in E-Bonds, in which the na¬
tional quota is raised to $4,000,000,000 from $2,500,000,000.
For
E-Bonds, Mjr. Gehle explained,
this is an increase of 60% for the
nation.

to

satisfactory instrument of interna¬

it did last year in three

dividual quota has been
for

A.

1945

earnings in the two drives

in 1945

drives."
new

of

pected to be fully as large, if not

Virginia, a
foremost exponent of airport de¬
velopment throughout America.
the

started

quotas

other

was

were

of

1,540,016,463

successively

Seventh

i Sixth

thoughts to the meeting,
leading airport engineers and
municipal
officials
will
also
speak.
A feature will be an ad¬
gressman

has

forward

millions)

(In

and

for

as the initial step in a
nounced on March 2 by the "Orefor the elimination of the gonian" (Portland)
which went
preferred capital stock of the bank on to say:

economical and feasible method of

Indi- Total In-

their

of

J.

and

Bonds viduals dividual

Aeronautics

will

and

setting

sands

year," Mr. Gehle said, "which is

Swiss

required by the exigencies of the
depression. This method was the

Other

The exhibits will

Administration,
transport
personal airplane designers

presented

the

Payroll

Issues to

on

office Basle)

•

on

Officials of the Civil

be

Liberty State Bank in 1943

of

individual

display in conjunction with
the all-day Airport Clinic study.

will be shown.

festivi¬

Houston."

issued in 1934 and 1935

ex¬

Fifth; $841,000,000, in the Fourth,
and $849,000,000 in the Third.
"There are to be only two War
Loans in 1945 as against three last

cording

in January,

to provide additional capital funds

for

E

Third

Building,

the

will

-

QUOTAS

from

Witt T. Ray, President, was called

the

drive

The

task
cf

drive is:

other diora¬

present location, the Liberty Bank

Hanks to

drive

out/will be placed on individual
sales,
particularly
of
E-Bonds
with a quota of $460,000,000—the
largest ever assigned.
He added:
"Compared with other loans,
the E-Bond quota for the Seventh

relation to proximity
of cities and towns, and navigable
waterways.
A
cut-away
scale
model of one of the projected airtransports for use in regular post¬
war
passenger and cargo service

planned for the occasion.

the

over-all

enth War Loan, Mr. Gehle pointed

Westches¬

new

of

from

The

with

ports

program

was

and

in the firm of Brown, Shipley &
Co., has been appointed a director

to the

cam¬

.

Stevens,. Jr., as State director, al¬
ready is well organized for the

will

companies from June 18
through June 30.
The great emphasis of the Sev¬

will show seadromes and air¬

mas

our

March

"advance"

an

purchases of those not

postwar, will contribute many in¬
teresting exhibits of aircraft and
airport development to the Air¬
port Development Clinic meeting
to be held under the auspices of
the Aviation Section, New York
Board of Trade, on Friday, March
16, at the Pennsylvania Hotel.
One highlight will be an elab¬
Airport;

in

to

issue, page 1077.

that

stated

2.

suppliers, air transport lines and
producers of airport equipment
who are setting their sights to¬
ward
continued
employment in

County

' referred

was

ance:

manufacturers

orate model of the

$2,825,-

Savings extending from May 14
through June 30.
3.
And participation of corpo¬
rations, savings banks and insur¬

The bank opened for business on
March 1,
1920; it moved to its

Bank,

which

and

Aviation Exhibit
Aircraft

as

campaign
commencing
on June 18.
Thus, the drive will
be divided into three phases:
1.
The Payroll Savings cam¬
paign extending
from April 9
through July 7.

within the lend-lease

came

March 8

poration

category.

section."

$31,208,338.29

1944.

effort

war

on

tend through July 7 with the cor¬

goods from refugee ship car¬
valued at $30,000,000, which
were distributed to United States

to

ties

was

14.

release Australia
responsibility

goes

in

of

was

to

financial

all

$4,739,981.31 at the close of 1937

The

Shea,

more

since removal to its present
quarters resources of the Liberty

.■

plan

little

years

President,

"This

The

Dallas "Times Herald," in report¬
"In

agreed

from

ter

cor¬

Fifth War Bond drive.

dress by Jennings Randolph, Con¬

25th anniversary.

ing this, said:

In commenting on the action of
the stockholders, Lewis A.

said:

the

Bank of
than

had

Mr.

America

that

announced

Keane

tools.

machine

American

the preced¬

on

The

poration quota for the State

Mr. Gehle stated that the Pay¬
roll Savings Division, under J. P,

paign devoted largely to Payroll
Savings will begin on April 9,
with the big push for individual
bonds getting underway on May

proceeding,
said, for the bulk purchase of
were

New York To See
Louisville

the

to

Southern Trust Co.

Succeeding the late Russet G.Building,
Fessenden, J. Reed Morss, hereto-i

Bank

bank were

left."

was

ropolitan

"Mr. Morss has been

All

New: ing
day purchased from the Met¬

,

of that institution.

either.

of the

According

Auditors and

Association

in

the

Department

Mr. Gehle in his advices

$12.24 per forces, and for goods valued at
latest dividend $34,000,000, which were used by

final,

a

share

a

a

since

o

Negotiations
he

in farm communities."

drive

aid.

buying in schools end

the

lend-lease

possible

War Bond

to

March 8th

total

The

far.

depositors

what

Comptrollers Forum of the Sav¬

ings

$3

and

$3.25

paid off some years ago, and the
stockholders became entitled to

Mr. Duddy

York.

received

a

called

not

the

formerly Comptroller.
Jo¬
seph A. Duddy, formerly Assistant
Comptroller of the bank, was
is

so

is

was

Comptroller.

making

share

River

has been with the bank since 1920,

elected

1943

in

1944,

Joyce

Joyce,

The item

liberal

most

National

loan

garding the goal of $14 000,000,003
,n
the
forthenm,n„
War
1 ,oan
in
the
forthcoming War
Loan

for

share

made

East

of

also said:
"Stockholders

of the election of Charles C.

Bank

closed

the

Pittsburgh, indicating that collec¬
tions on remaining assets took an

Pipeline Company.

•

of

holders

Treasurer of the Panhandle East¬
ern

share dividend to the stock¬

per

that

said

his recent mission
States, Mr. Keane
he
had
reached
an
on

United

the

Chase
on

$3,959,000,000 or 28.3% of the
nation's
$14,000,000
objective.
The Treasury announcement re-

agreement under which Australia
would
continue
to
receive
the

The

of the National Bank of New Jer¬
sey,.

the sale of these shares was

added to surplus."

with Bell Aircraft, where his

Reporting

Mr.^Cerile, Vice-

the

been

to

$709,-

(about

as

000,000, which with the quota of
$1,134,000,000 for individual sub¬
scriptions, brings the State's goal

140,000).

$10 par value stock at $30 a share.
The balance of $200,000 received

pounds

of

has

announced

inception of recipro¬
cal aid to the same date, Australia
supplied America with goods and
services
valued
at
223,000,000
Australian

President

from

accounts

Henry Morgenthau, Jr., Secretary of the Treasury,
State Chairman of the War Finance Committee

serving

Treasury

the

Since

the invitation of
is again

for New York.

Bank,

reported:

Corp. to go with the National City
on April
1.
Mr. Sperry reenters
spent

of $1,134,009,000, an amount unprecedented
campaign, has been assigned by the Treasury De¬
partment to New York State for the forthcoming Seventy War Loan
drive, it was announced on March 5 by Frederick W. Gehle who, at.
in any previous

from

learned

that date,

on

$1,134,(KM),000 Assigned to New York State
An individual quota

•

■

mended by the board

Thursday, March 15, 1945

quotas

for

the Seventh the Treasury Depart¬

concurrence was

by

two

speedy
prompted mainly

considerations.

First,

China regards the time element
all

as

important and has consistently

maintained that the Allies should
establish
a
peace
and

security

organization
the

in

war.

San

prior

to

the

end

Francisco

to

give imme¬

diate realization of such

an

ization

with

is

in

accord

views.

,;

organ¬

organization.

lieves that
tion

the

surpasses

:

China

in importance

conference

strated

inter¬
be¬

spirit of coopera¬

letter of any instrument.

Yalta

our

.

"Second, in the matter of
national

of

The proposed conference

As

the
thfe

clearly demon¬

that the will to cooperate

starting an 'advance' cam- prevails
among
the
conferees,
paign which is to be concentrated China decided td
reciprocate and
on
increasing participation and
allotments under the Payroll Sav-' strengthen such spirit by pledging

ment is

*-.'f'«*>•;-o,ipgs

..

Plapnas(; xyell. as, intensifying'

.

her own ppport and cooperation."