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Final Edition
ESTABLISHED 1S39
In 2
Sections-Section 2
Reg. U. S. Pat. Office
Volume 165
Number
The
4594
New
York, N. Y., Thursday,
May 15, 1947
Professor of Land Economics,
Board asserts
ment
of
-
movement in evidence.
stomach,
few
advertisements
and food does
not
grow
on
response
pavements.
And yet,
have
indeed
urbanites than those
been
meeting
sympathetic
more
among
some
uneasy
which read,
"Buy these few acres and be safe."
staunchly City purchasers of farms are flee¬
defended ing not the good life of the
city,
walls
of
the but the uncertain life of
the city.
Ancients were They fear
simply another break¬
penetrated by down in the delicate division
of
hunger.
Eu¬ labor and exchange 6f
goods upon
rope's misery which the city is founded.
But such a
today
is
fofamily, if buying a
cussed within
(Continued on page 8)
High,
thick
and
Herrell DeGraff
its cities. And
if food should not
the Hud¬
cross
Manhattan would
become
a
ghost town.
No doubt the vivid memories of
insecurity in both depression
have
*
and
An
address
by Prof. DeGraff
at the Seventh Annual
Forum
on
Economic and Social Trends
spon¬
sored by the New York
Chapter
of
Life
now
unpopular but formerly highly respected
term, the
laissez-faire doctrine of
economics, is badly misunderstood in
some
quarters beyond our borders.
Says
demand
the public consciousness. There is
no
marked
back
to - the - land
insist¬
an
ent
depression, if busi¬
But what of the beam in
accumulated
me begin with what
should be some obvious
relationships.
city is at all times a vassal to the farm. In the
simplest facts of
biology lie the$-
bondage. It
Here
Much
Misunderstood
So reads a current
headline.
No one ean well
doubt that the so-called free
enterprise system, or to use a
labor and
operate.
Underwriters, New York
sharpened this fact in- City, April
18, 1947.
home
vast
tant
permit
to
lapse, and
output of
ducers'
So
pro¬
goods
Fa¬
and
rates
duced
w.
government
L.
tain, well worth the
Batt
spending
$176,000,000,000
represents
and
the
sound
such
of
as
"It is thus that
considerable period of
only minor variations.
years, with
I do not believe
there is any
a
severe
had
we
dinary restraints, force from
a particular
species of indus¬
share of the capital which would otherwise be
employed in it, is in reality subversive of the
great purpose
which it means to
promote. It retards, instead of accelerat¬
try
like¬
depression—
in
the
nineteen
thirties—at any time in the
pre¬
dictable future. The accumulated
By RUFUS S. TUCKER*
facing
Economist, General Motors Corporation
cal
Dr. Tucker denounces
theory of increased purchasing power
through artificially raising wage rates. Contends
attempt to raise
wages faster than rate of output
per man-hour is inflationary and
causes suffering and loss to
large segments of national economy.
Says no labor policy can prevent
depressions, but depressions can
be prolonged by
inflexibility in wage rates.
A large number of labor
spokesmen and government officials
have proclaimed that the
way to avoid depressions is to maintain
purch a s i n g^
power by in¬
creasing wage
rates
ground
will
This approach to the
problem of
stabilisation
involves,
in
my
opinion, several fallacies. In fact,
when I think of it I am reminded
of Dean Swift's
old observation
that
demand
the
"that there is
nothing so extrava¬
and irrational which some
for
gant
goods and the
volume
produc t i
They
the
Rufus S. Tucker
of
at
of
activity will be
so
say
philosophers have
of
for
o n.
of
sole
The
in
impor¬
as¬
address by Dr. Tucker
This
facts:
(1)
that
which
are
the
goods.
at
is
really
a
double
it overlooks
two
consumers' goods,
sort of goods
sup¬
-
•■•*>•
v.
These
facts
are
demon¬
strated by the official estimates
of the gross national
product and
the Census of
luncheon session of the 35th An¬
nual Meeting of the Chamber of
Commerce.' of. U. S.,
Wash., D. C.,
April 30^ 1947.
business
is
certain
quickly consumed
be
Occupations. Since
1914
;
.
.
consumers'
(Continued
on
expenditures
page: 6)
A
From
a
to the dur¬
able goods, such as motor
transition
now
painfully dif¬
ficult, depending
on
the combined
on
page
7)
The
most
Editorial
of
of
can¬
Well
sir,
See It
.....Cover
..
the
of
Regular Features
From
Washington Ahead
of
.Cover
NYSE Odd-Lot
Trading.,...........
Items About Banks and Trust.
Cos..
10
Turkey, with
audience
500
or
noon
at
-
Review
3
which
mies
without
Weekly Lumber Movement
15
the
were
12
Credit
Outstanding in
i».>.
12
But
with
skits
repeated
we
the
Carlisle
the
are
Truman
in¬
the Com¬
run
out of the
government right
The two projects—
being
enthusiastically
by the Truman propagand¬
ists as an example of his
political
Bargeron
astuteness. The Republicans were
running with this anti-Commun¬
ist
Index...
12
in the crowd the man who seem¬
Weekly Coal and Coke Output
13
ingly laughed the most, whose
Weekly Steel Review"
5
Moody's Daily Commodity Index.'...
10 sides seemed about to
burst, was
Weekly Crude Oil Production........
13
Truman
himself.
Members
of
Non-Ferrous Metals Market.........
14
Congress, Cabinet officials, Big
Weekly Electric Output..
10
United States Savings Bonds Issued
Brass—to them as with the
rest,
and Redeemed Through Mar. 31,.
it was one whale of a joke.
March
joke, though, I
great
cited
Fertilizer Association Price
13
of humor
checking them abroad and run¬
ning them out of the government
costumes. And
15
of
to
Korea.
unquestionably
better
the
here—are
some
15
12
is
here at home.
t
Commodity Prices, Domestic Index.
Weekly Carloadings
*'—...
Weekly Engineering Construction...
Paperboard Industry Statistics
up
in
sense
spired movement to
the
a
even
think,
dinner
reception
An
•
stitches
16
ap¬
earth.
on
i u t o
14
14
here
the
coming
one
off. Communism
Americans
have the darndest
so,
into
went
after
Consumer
dinner
We
again
Sunday after¬
State of Trade
1947
Gridiron
<$>-
stitches and it
the
Moody's Bond Prices and Yields....
Trading on New York Exchanges...
famous
so-called Truman
head
went
News
General
a
nibals.
Page
•
the
the
we
pearance
'
We
around
Doctrine by
give other countries money not to go Communist. Hither¬
to unheard of countries and
dictators were depicted as
coming in,
one
after another, and
pleading.. with Truman to "give us some
money and save us from Old Black Joe."
The climax
which
tribe
As
uproarious skit at
Saturday night revolved
was
GENERAL CONTENTS
"-
of the News
By CARLISLE BARGERON
be
may
smooth and easy, or
(Continued
Washington
Ahead
and
cars
are
reaching the market in good vol¬
This
4)
page
criti¬
a
to
washing machines, that
ume.
on
readjust¬
are
posedly bought by wage earners,
the consumer, while still
leaving are not the
only goods produced;
large profits to the owners of
and
(2) that wage earners are
business enterprises. In this way
not the only buyers of
consumers'
*An
There
purchasers of goods and
fallacy, because
that the higher wage rates can be
paid without increasing prices to
first
fallacies is the
that wage earners
services.
less
not maintained
its
sumption
the
high rate
much
truth."
tance
that
unit costs
production
a
are
constantly
raised.'
wages
raise
ment.
of
(Continued
switch in demand from
goods that
employment can be maintained at
high level and the nation's
standard, pf
living
activity shows
signs of fall¬
ing off, on the
higher
period
a
when-
industrial
ever
vast and too insistent to
permit a
general economic
collapse.
But we are now
some
ing, the progress of the society towards real wealth and
greatness; and diminishes, instead of
increasing, the real
demand at home and abroad is
too
Wage Rates and Purchasing Power
/
every system which endeavors, either
by extraordinary encouragements to draw towards a
par¬
ticular species of
industry a, greater share of the capital of
the society than what would
naturally go to it, or, by extraor¬
us,
level of pros¬
can be main¬
that
one
a
are, we are cer¬
Here in part is how Adam
Smith described the free
enterprise system:
V/v../
high
living that it buys
a
perity and
deem it
we
The Master
Our current national
income of
lihood
They
study.
most careful
as
price rise curb.
tained for
important, indeed, is the question that
re¬
standard of
Ameri¬
we
Perhaps, there is no better way to begin than to
quote
the words of the master
expounder of the doctrine to which
this country was,
politically and economically, dedicated at
the time of its foundation.
We beg
indulgence if the pas¬
sages quoted appear somewhat
long.
sees
high tax
vors
Do
well to devote this discussion
to it.
col¬
growing.
eye?
one.
too
economic
own
generally understand the system, or recognize its basic
tenets?
The question is
certainly a fair one; and an impor¬
and
is
our
cans
at
abroad
Home, Too
Way
Abroad."
government co¬
Let
has
without
"Free-Enterprise
have readjust¬
we can
ness,
longer "family security" on small farm.
Decries idea of existing or
approaching food shortages and says
need is for adequate markets.
Concludes farmers' responsibility
for statesmanship still lies in their
greater political power.
its
At
Prominent industrialist and former
Vice-Chairman of War Production
no
evidences
EDITORIAL
President, SKF Industries, Inc.
Agricultural economist points out, though proportion of farm
popu¬
decreasing, interdependence of urban and rural life
is increasing. Says efforts should be
directed toward utilizing and
improving good soil rather than working poor soils. Holds we will
always have a land problem despite improved methods and farm
war
Copy
We See It
By WILLIAM L. BATT
Cornell University
lation has been
technology and there is
As
Society Prosperity
By HERRELL DeGRAFF*
Associate
son,
a
Land-Foundation We Can Maintain
For Industrial
The
Price 30 Cents
going right ahead
grant
to
Greece
and
ball,
and
they
the
into
shoulders
with
it
licans
gleefully
astute
the
air,
took
and
has
ever
are
explain,
Truman
it
since.
The
represented
jumped
over
been
having
as
been left speechless.
Well, it
seems
there is
his
running
Repub¬
a
string
attached to running the Commies
(Continued
on
page
7)
THE
2
COMMERCIAL & FINANCIAL
.
TT
(2646)
$50,000,000 per year to its shipping
bills.
It adds that much to the
revenues of the northeastern rail¬
roads with no showing or finding
that it is needed tcrmeet costs of
Senator
What Is the
furnishing railroad
Justice
Jackson
destroy one form
expended a fortune to
We now are
We
of
confronted with an¬
other form, and while we hope that it will not be
necessary to engage in armed conflict to avoid its
totalitarianism.
consequences we
cannot overlook
that it takes hold of vast
numbers of people with the same
the fact
degree of fanaticism as that
characterized the form of
tarianism we
thought
essary
which
totali¬
in the surrendering of
Germany and Japam
"I am not one who believes or
if
on
Alben Barkley
Sen.
the
form of
realize
we
ideologies
economic
people of any nation our
government. But we also
Mr,,Douglas put it this way:;
surrounded by a
the same time preserve our
and political and social concepts,
"This is
totalitarian world come from one
another."—Senator Alben W. Barkley.
indulged in too much non¬
about "ideologies" and their
destruction by force of arms.
We have come to believe too much of it!
Must we really bribe half the world not to become
"totalitarian," or destroy it if it persists in doing so?
If so, the future of mankind is hardly bright.
Freight Gut for South
ruling on May 12 upholds an Interstate Com¬
merce Commission order raising so-called
class rates, applying to
manufactured products, 10% in Northern States and dropping them
10% in Southern States east of the Rockies, according to advices
the Associated Press. The decision, by a
written by Justice Douglas who sustained the
contention of the South and West<s>
—:
—
that the present rate structure reThe nine States opposing the
increase were New York, Dela¬
tarded industrial development in
ware, Indiana, Maryland,
Michi¬
these areas.
gan, New Jersey, Ohio, Wisconsin
Mr. Douglas declared that the
Washington from
from
7-to-2 majority,
was
natural disadtages alone "are not responsible
shows that
and
added.
for
the
-
.
suit
similar
tion.
'
•
-
-
13.5%,
Region
Southern
in the
first three
months of 1947 had an estimated
net
income,
after interest and
rentals, of $18,800,000, compared
with a net income of $6,200,000 in
the same period of 1946.
For the
month of March alone, they had
an estimated net income, after in¬
terest and rentals, of $7,600,000,
compared with a deficit of $6,600,Class
The
railroads
I
Southern Region in the
riod
•
,
operating revenues in the
first three mouths of 1947 totaled
England and
Banks of
Brazil Agree on
totaled $228,670,846, an in¬
crease
of 2.8%
expenses in the first three
months of 1947 amounted to $1,-
ating
Currency Pacts
■
194-3, while operating ex¬
in
penses
$2,039,308,947, compared with $!,866,454,829 in the same period of
1946., or an increase of 9.3%. Oper¬
opinion was read the hands of a special master,
The Brazilian Treasury Delega¬
,
for him by Justice Burton.
The Lloyd K. Garrison.tion, 30 Rockefeller Plaza, made
Georgia
charged 19 southern
.28,000 word opinion stated that
public on May 6 the following
there was abundant evidence to and western railroads had con¬
statement issued by the Minister
support the findings of the ICC spired and combined to fix freight of Finance in Brazil to the press
that
there
was
discrimination rates discriminatory against the in
that country:
ahiong the territories.
It stated South, in violation of the anti¬
"The Bank of Brazil and the
...
further
that the commission is trust laws.
Bank of England have reached an
correct in its findings that there
The Supreme Court appointed
agreement as a result of which
is prejudice against the southern Mr. Garrison to gather facts, hear
operations of purchase and sale of
region.
;
testimony
of all parties inter¬
the pound sterling by the Bank
In May, 1945, the commission, ested and make a report and rec¬
of Brazil and of Cruzeiros by the
at home, his
ill
first
totaled
Total
Pennsvlvania.
filed by the
the retarded development of State of Georgia and its former
South and the West."
Being" Governor, Ellis Arnall, is now in
A
three months of 1947
$937,119,618, an increase of
compared with the same
period of 1946, while operating
expenses totaled $757,353,356,/or
an increase of 5.2% above 194q.
in the
territorial rate differences pared with a
justified by territorial condi¬ 000,000 in the corresponding pe¬
Net railway oper¬
tions.
The general rate increase riod of 1946.
recently granted by the commis¬ ating income, before interest and
sion was a revenue proceeding. rentals, totaled $174,095,470, com¬
with $110,718,526 in the
Revenue adjustments can be and pared
are
superimposed on. such rate$ same period of 1946.
000 in March, 1946.
In the 12 months ended March.
structures as exist.
The fact that
Those same roads in the first
revenue adjustments may produce 31,
1947, the rate of return on
three months of 1947 had a net
lack of uniformity in, rates is not property
-investment averaged
inconsistent with the decision in 3.03%, .compared with a rate ol railway operating income, before
interest and rentals, of $30,872,the present case."
return of 3.14% for the 12 months
70,5, compared with $22,762,697 in
Justice Douglas said rthe order ended March 31,1946.
the same period of 1946. Their net
The- earnings reported above as
granting the general fate increase
railway operating income, before
actually was not before the court net railway operating income rep¬
interest
and
rentals, in March
for consideration and the court in¬ resent the amount left after the
amounted to $11,804,233, compared
operating expenses
timated no opinion concerning it. payment of
with a net railway operating def¬
taxes, but before
interest,
"Whether the' general rate in¬ and
icit of $840,015 in March, 1946.
rentals and other fixed charges
crease will require adjustments in
Operating revenues of the Class
Property investment is
the new permanent uniform scale are paid.
1 railroads in the Southern Region
which awaits the new uniform the value of road and equipment
in the first three months of 1947
classification is a question for the as shown by the books of the rail¬
totaled $297,400,583, afl increase of
commission when the new classi¬ ways including materials, supplies
fication is ready,"
Mr. Douglas and cash, less accrued deprecia¬ 8.1%, compared with the same pe¬
1
record
of
Operating revenues of the Class
in the Eastern District
.
I railroads
.
Supreme Court
A
after interest
$87,200,000, com¬
net income of $19,-
income,
-
during the war
Supreme Court Orders
net
rentals,
and
nate
trouble is that we
One
sense
mated
proceeding to elimi¬
a
not
.,
whether. that
source or
$655,6,49 in March, 1946.
...
.
totalitarian world and at
own
operating income^ before interest
and rentals, in March amounted
o
$30,188,136,
compared
with
redistribution of
,
majority's opinion went on the comparison between March
to say that the commission's recent 1946, -and March, 1947.
•
action in granting a nation-wide
In the first three months of 1947.
increase in all freight rates did these roads, which represent a to¬
not affect the present case.:
tal of 227,679 miles, had an esti¬
seek to impose up¬
cannot be isolated or
some
The
they want. to.
"We do not
to
,
,
the world together
cannot live in
Quarter—Net Increased $68,200,000
Glass I railroads of the United States
The
.
stroyed
contends that these two
In First
population in relation to resources .....Operating .expenses
fcr
the.
that will reshape the - nation's- somonth of March, 1946, are,aver¬
ciah economic and. perhaps (its ts tated to the extent of the inclu¬
political life more nearly tq its sion of about $97,000,000 charged
heart's desire."
,
in that month as retroactive wage
He protested that the Supreme
payments applicable to the month*Court never before "has confided of
January and February, 1946.
to any regulatory body the
re¬ For that reason, the net earnings
shaping. of our
national econ- shown for March, 1946, are some¬
omy."
'
' ;
,!
what understated, thus affecting
had de¬
we
Up $ 172,854,118
Glass IRR. Gross Earnings
in March, 1947, had. an
service."
estimated net income, after interest and rentals, of about $43,600,000
said it had compared with a deficit of $33,300,000 in March, 1946, according to
never before been thought to
be reports filed by the carriers with the Bureau of Railway Economics
an
unlawful
discrimination
to. Of the; Association cf American Railroads and made public on May 6.
charge more for a service which Net railway operating income, before interest and rentals, amounted
cost more to perform." Mr. Jack¬ to. $72,7.82,112, com parei with
*
—
——■
1—•
son
commented that. the govern¬ net ra'lway operating deficit of and rentals, of $64,015,887, com¬
pared with $31,097,222 in the same
ment "frankly advocates this new $5,702,877 in March, 19C-1 The Asconcept of discrimination a^s. nec¬ socratron-further reported as Tot- period of 1940. Their net railway-
7
.
1947,
Thursday, May 1$,
CHRONICLE
above
1946.
Western District
Class I railroads in
District in
the Western
months
net in¬
the first three
1947 had an estimated
of
597,733,863, compared with $1,- come, after interest and rentals,
567,879,401 in the corresponding of $45,000,000, compared with $20,period of 1946, or an increase oi 600,000 in the same period of 1946.,
For the month of March
alone,
1,9%.
Thirty-eight Class I railroads they had an estimated net income,
after interest and rentals, of $20,failed to earn interest and rentals
in the first .three months of 1947, 000,000, compared with a deficit
of $14,500,000 in March, 1946.
of which 17 were in the Eastern
District, ' six
in
the Southern
Those same roads in the first
Region and 15 in the Western three months of 1947, had a net
District.
railway operating income, before
interest and rentals, of $79,206,-
Eastern District
t
to the same advices, ommendation to the justices. The
found the freight rate structure report and recommendations are
discriminated against the South not expected to be ready for pre¬
on
almost all manufactured ar¬ sentation during the present court
ticles and ordered the, changes as term which ends in June.
according
first
the
rates.
step
toward equalizing
"
.
planned as a
step to work out "national
commission
The
second
in
uniformity
the c lassification
and Frank¬
the majority
the majority's
-
of
freight traffic and
about 6% of freight revenue.
rail
all
yield
be
order
permit
as
"breathe freely for the
in
first time
history."
•;
Gover¬
England
States, and 33 railroads, however,
challenged the ICC action as arbi¬
trary.
They said it was not based
on facts
and upset principles of
rate-making which had been used
Nine
nors
and
the
insolvent
ones
necessary :
claimed to
cost of
fair return on the
to pay the
officials hailed the
one which would service and a
Southern
industry to property used in rendering it.
Southern
-
ICC
perous
alike and is not even
-
of
Northern
the
six
for many
States,
New
generations.
•
have been re¬
England
sumed.
;
"Commercial
tween
-
•" ;
^countries,
the
'
•
transactions
net
income,
after interest and
of $23,400,060, compared
a deficit of $7,800,000 in the
be¬ rentals,
including
with
878, compared with $56,858,607 in
the same period of 1946. Their net
railway operating income, before
interest
and
rentals in March
amounted to $30,789*743, compared
with
in
the
Brazil which would have
suf¬
those
of
fered
took
which
if the
place
balances of its com¬
mercial exchange
with Great Brit¬
placed in the blocked
account
against
which .Brazil
would not have been allowed to
ain had been
same
period
of
The
Court
in
Utica,
judge
Federal
U. Y.
That court upheld the ICC.
The same roads in the first three
months of 1947. had a net railway
riod
operating. income, before;
CLASS
I
interest
penses
then appealed to
Court. Actrual change
deferred pend¬
in class rates was
ing the high
tribunal's decision.
operating def¬
crease
Period Ended
March: 31—
.
-
-i':;
Total operating
revenues—
while operating ex¬
totaled $61I',70&,06Iy a,:de¬
of 2.2% under 1946.
f
STATES
' '■ •!
1947—3 Mos.—1946 -': ;
$646,229,071 $2,039,308*947 $1,866,454,829
614.558,053
1,597,733.863- 1,567,879,401
RAILROADEH^UNITED
.
,
draw.
of 1946,
„
;
1947—Month—1946
$717,826,034
Total operating expenses——
549,367,970
78.35,
04.00
which
Operating ratio—per cent- •; •
- \ 76.53n > • .
-95.10
153,526,874
228,378,063''
' 82,448,420
24,885,571
led the Brazilian Government1 to Taxes
' •v |
"This
additional
assessment,"
Net railway operating income
•
;
110,718,526
174,095,470,
halt its purchases of pound ster¬
Mr. Jackson added, "is in no( sense
,• :ct?efoxe ebarges.)"72,782,112 ■
15,702,877
19,000,000,
87,200,000
ling through the' Bank of Brazil; Net inc., after chgs.' (est,)—
43,600,000.
133,300,000
compensation for handling the
Both in Rio de Janeiro as well as
'.tDeficit.
'
;
"-'i
traffic which the railroads con¬
in London, there is great satisfac^
cede was adequately compensated
tion in • official and commercial
announced as domestic supplies
before.
It is really a. surtax,
circles as a result of this solution Cotton Export Subsidy
dropped to the lowest level in
added solety to increase shipping
ThU Department of Agriculture nearly 20 years. / Associated Press
which permits the resumption; of
costs in the noreastern part of
free trade between the two coun¬ announced on May 8 that,, effec¬ advices from Washington on May
the United States for the purpose
tries.
: ;
■
! • tive 3 p.tn. the same day; the gov¬ 2, from which the above was
of handicapping its economy and
:
"Soon an agreement is expected ernment's cotton export .subsidy taken, also said;
in order to make transportation
rate1 Would be cut from two cents
cost as much there as it does in to be signed covering the Brazil¬
Exporters
will have until
to one-half cent per pound.
The
ian credit in blocked sterling inas¬
areas where there is less traffic to
Jan. 31, 1948, to ship cotton sold
much
as
the divergencies that rate, which was originally four
divide the cost.
under the program after May 8.
cents a pound, was reduced to
have come up are not'of the kind
Sales registered before 3 p.m.
"The surcharge burdens the ter¬
two cents early in the year, As-*"
to preclude the solution which
on
that date must be shipped
ritory where 50% of the consum¬
sociated
Press
Washington ad¬
will protect the present interest
by June 30, 1947. "
ing population of the United States
vices stated.
The latest cut was
of both Brazil and Great Britain."
resides by adding an estimated
,
"This was the sole reason
.
..
—_—-
*
•,
-
Cut
.
•
The challengers
the Supreme
net railway
1946.
•
challengers first presented
their case before a special, three■
a
For the icit Qf $5,518,511 in March, 1946.
course of April, will be entered! in
month of March alone, their esti¬
Operating revenues of the Class
furter
a
special account, the balance of mated' net income, after interest f railroads in the Western District
decision.
Calling
opinion "an extraordinary deci¬ which is to be freely disposed of and rentals,' was $16,000,000, com? in the. first three months of 1947
sion," Mr. Jackson declaredi that by the creditor nation: This solu¬ pared with a deficit of $12,200,000 totaled $804,788,746, an increase of
5.1%, compared with the same, pe¬
the 10% increase in rates affecting tion fully meets the best interest in March, 1946.
Jackson
dissented in
Justices
/
freight, and a greater degree
northeastern
part
of
the
national
uniformity in the the
class
height
rate
structure," United States was not asked by
Class rates apply to about 4% of the railroads, but goes to the pros¬
of
Bank1 of
Class -1, railroads in- the
District in the first three
months of 1947 had an estimated
The
Eastern
,
•-
yolume 165
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4554
(2647)
Colorado Oil Shale
Truman, Marshall and Byrnes Urge
Immediate Peace Treaty Ratification Plant to Qpen May 17
May. 6 heard Secre¬
Secretary qf
SSta{e, urge immediate ratification of the peace treaties with Laly,
Hungary, Bqlgaria and Rumania, Associated Press Washington ad¬
vices stated. Secretary Marshall also read to the committee a letter
frorp President Truman expressing agreement with the Secretary s
Relations Committee on
.The Senate Foreign
and James F. Byrnes, former
tary of State Marshall
and Mr.
Byrnes' views.
<s>
.
Mr. Byrnes in his testimony de¬
according to clared that if the United States
the same advices, f'that I concur nqyv fails to ratify the treaties,
wholeheartedly in the views which "the responsibility for the main¬
you and Mr. Byrnes will express tenance of armies qf occupation
to the effect that it is in our opin- and of chaotic political conditions
ion ; vital to our foreign policy that in these countries will rest upon
"You
>
Mr.
authorized
are
Truman
to
say,"
.
wrote,
ps."
these treaties be ratified."
'
.
•.
Offering promise of a vast new
industry for America, oil from
qn untouched reserve will flow
Indications of
from
the $2,OQO,QQO oil-shale
demonstration plant of the Bureau
of
Mines in
western
Colprado
when this first major unit com?
weeks became
plqted under the synthetic liquid
- program
is dedicated on
Saturday,
Secretary
in April.
one
as
nounced
of
17,
the
4.
A.
Krug,
Interior,
an¬
May 8.
on
On the U. S. naval oil-shale re¬
miles
V/%
serves,
of
west
the
This
\
condition
well.
cut
production
stocks on
hapd
mediate needs
the
applies in
a
degree
work
to
ments
out
a
to illustrate
serves
gasoline
of
sources
lubricaNation's
and
to supplement the
limited
reserves
of
cants
natural
petroleum.
expected.
Mr. Vandenberg, in a
Contrary to expectations, de¬
portant that the Government of brief speech accompanying the re¬ mand
foV petroleum already has
the United States should appear to port, declared: "We believe this is
passed the peak reached during
the world as a strong and con¬ the better calculated risk."
the war; Bureau officials predict
Twelve of the 13,-man commit¬
sistent force in international rela¬
a continuing rise in years to come
tions.
Treaties which have been tee had voted approval of the
to meet the increasing automo¬
worked out with the approval of treaties while the remaining mem¬
bile, airplane, Diesel engine,
so
(R.¬
large a proportion of all the ber, Senator Hickenlooper
industrial, and household require¬
nations
convened
at
the
Paris Iowa) was absent.
ments. For several years, discovThe Italian treaty is the only
peace
conference represent the
edies of oil in new fields have
considered judgment of the inter¬ one of the four which has been
not kept pace with consumption.
national
community.
Moreover, subjected to severe opposition, but
The
present output of known
Senator Vandenberg,
while ad¬
many of the most difficult prob¬
domestic fields
cannot be in¬
lems were resolved as the result mitting that he did not regard
creased substantially without ir¬
settlement arrangement
as
of American initiative
It would this
retrievable loss qf oil, fqr the
be a great misfortune and a heavy perfect,
nevertheless ' concurred
wells, are now at or near their
blow to our country's leadership with the President and Secretary
maximum
efficient
rate.
These
in
considering it the
in world affairs should we now Marshall
It is
unwise.
than
more
ever
im¬
unilaterally withhold approval of
-
try's
that he
tion
believed the world situa¬
would
United
ward
the for renunciation of colonial pos¬
sessions, and fixes the country's
approval frontiers, with delineation of the
territory of Trieste.
if
"disintegrate"
States
step"
took
now
away
country's military forces, provides
"back¬
a
from
of the four treaties.
Merchant Wholesalers Sales Up 27%
In March, Says Census
Sales of merchant wholesalers during
March
this
that
state
authorities
best possible at this time.
The Italian treaty imposes
coun¬
capacity to produce
reserve
$360,petroleum virtually
Secretary Marshall himself said 000,000 in reparations, limits the
during the war, and
these treaties."
disappeared
security
our
cannot be jeopardized by relying
on
uncertain foreign sources for
the
indispensable fuel of our in¬
dustrial economy.
of
case
potton
goods
Bureau
27% over
M.
and
we
are
Decrying the policy of govern¬
ment which calls
increases
for
fqr further wage
labor,
Mr.
Wason
stated:
"The manufacturer
utors
when determining prices, because
make
up
from
two-thirds
in the fraction
depending
on
ad¬
1947, with indications that passen¬
car output will total 264,000
and truck assemblies 91,600 units.
ger
the
Mart
wholesale
furniture
the
In
field,
Jamestown
Furniture
well
was
attended.
Buyers
reflected a cautious attitude and
the majority of orders placed were
for late summer delivery. It was
also noted that many articles of
sold
on
were formerly
allotment basis, were
which
furrijture,
an
adequate supply.
evidence
at
of
continued
a
gave
heavy
materials
week while
backlogs for farm imple¬
and power tools also held
demand
building
for
hardware
ments
field
construction
Tfhe
last
high level.
a
Retail trade continued active
that although
the OPA died by law, "political during the week lifting total vol¬
ume moderately above that of the
exhortations and propaganda con¬
tinue to inflate prices by demand¬ corresponding week a year ago.
ing 15-cent increases of wages in Consumers remained very price*
automobile and steel in 1947 be¬ conscious dnd reports from many
fore
the
18l/2-cent increase of sections of the country indicated
that special promotions and clear¬
1940 has been absorbed."
In
pointing
out
Continuing he added:
had resulted in a consider¬
ances
question now is whether able increase in the sale of those
"
'
shall be able tq hold prices items. '
down to their present levels,' or
There was a fractional rise in
whether they will have to rise
total
wholesale
volume in
the
"The
we
Motors and General
Electric
week
to
of
as
dollar volume continued
favorably
compare
a
with that
ago. Order volume was
generally to small quan¬
year
limited
tp two tities of merchandise for imme¬
Interstate diate or nearby delivery. Stocks
Commerce Commission's sweeping in most lines were well above the
freight rate equalization order of level of a year ago.
1945.
*
Steel Industry—There was no
By its finding the Court is in
indication the past week that the
accord with the contention of the
steel industry will be lacking the
South and the West that them
ordqrs to keep operations at un¬
industrial development has been
usually high levels for the rest
retarded by railroad "freight rates
of this year, reports "The Iron
generally favoring the North and
Age," national metalworking
East.
weekly.
The
possibility of
a
The order was aimed at uniform
slight industrial setback has been
freight costs and directed a 10% so well
advertised that preventive
increase in class rates in states
measures
have
already
been
situated nqrtheast of the Ohio,
taken by
many
producers and
Potomac and Mississippi rivers.
consumers.
At the same time jt reduced class
Metalworking customers were
rates 10% elsewhere except west
still clamoring for steel last week
of
the Rocky Mountains. These
Supreme Coqrt in
Detroit
Dodge,
at¬
Ward's said that the?
May possibly will prove
poorest production-wise
in
paid by the consumer, the differ¬
product."
was
materials
acute
an
shortage.
order
the
to
month of
the
and,
ence
and 20,301 trucks made?
decline last week
The
tributed
to four-fifths of the ultimate price
a seven
decision
former financial
cars
ada.
and distrib¬
at- the mercy of wages
are
wages
68,063
in the United States and 3,Q41 cars
and 1,96,4 trucks produced in Can¬
in
granted thei^: wage, increases."
The same day the United States
Group in Austria
Joseph
—
out into a fqBy
our way
competitive market."
eral
banker
depression
a
working
again as was predicted when Gen¬
Dodge to Head U. S.
were up
toward
132,$80 units.
Last week's assemblies included
the
towq of Rifle, the new plant to
mills,
much
softness
be unveiled to the public in an
has, de¬
all-day open house is the first of veloped in prices, and according
reports, it is becoming in¬
two demonstration units planned tq
common
a.
in this important area of the the treaties be swiftly ratified.
world.
Nothing has occurred to Warning that if the pacts were re¬
render their efforts unsound or jected only "confusion" could be
peace
semi-durable lines
some
mills which <$>result
q| the preceding week. In the similar
exceeding im¬ week of 1941 total output was
as
point.
In
to
The yfpolen
On May 9, acting qn the recom¬
Opponents of ratification have
recommended
waiting
until
a mendation of the President and
Mr. Marshall and Mr. Byrnes, the
peace treaty with Germany has.
under a five-year $30,000,000 pro¬ creasingly difficult to close con¬
been prepared.
The President in Foreign Relations Committee ap¬
gram
of synthetic liquid fuels tracts for the fourth quarter.
his letter disagreed with the view proved, without a dissenting vote
research and development. This
On Monday of this week, Robert
with
no
reservations, the
that ratification now would con¬ and
is one of the few Interior Depart¬ R. Wason, New York, Chairman
flict the policy outlined in his peace treaties with Italy, Hunr
ment
of the board of the National Asso¬
programs
that were not
Bulgaria
and
Rumania.
message to Congress on March 12. gary,
drastically curtailed by the House ciation of Manufacturers, in ad¬
He continued:
Chairman Vandenberg (R.-Mich.)
appropriation bill.
dressing the triple mill supply
"These treaties are the results said that a "long discussion" of
The objective in both the oil- convention at the Hotel Traymore,
of months of effort by outstanding the terms had preceded the com-,
shale plant and the coal unit to had the following to say about
favorable
action,
and
leaders
of
both parties in this mittee's
follow
is to
blaze a
trail for the future prospects for business:
government and of other govern¬ when he formally reported the re¬
"We are not working our way
private industry, leading to new
sult to the Senate he urged that
/
some
general the past week with the announcement
that manufacturers' shipments of
soft-gopds experienced their first
postwar decline in March, with the probability of an even greater
fuels
May
downturn in soft goods lines apparent for
a
more
the
upheld
.
February of this year, Director
J. C. Capt of the Bureau of the Census announced on May 1. Dollar
sales for the first quarter of this year were up 27 % over the corre¬
sponding period of last year. These data are based upon reports sub¬
mitted by 2,683 merchant wholesalers representing all parts of the
country—wholesalers who report¬
ed sales totaling $450,000,000 for while four showed slight declines
March of last year and up
the month of March.
also
over
The Census
Bureau of the Commerce
ment
9%
Depart¬
said, in its announce¬
ment:
or
no
change.
the end of March
last year.
months, a
inventqry
due to
prices, but:it is significant
the
increase
in
may
have
been
that
inventqries
have
part pf
values
rise in
to note
continued
their upward trend since last fall
■while
sales
recorded
moderate
seasonal declines.
Considered by kinds of business
andx
comparing March
1947 with
1946, sales were up in all
fresh fruits
Lucius
D.
Clay,
Military
American
Governor in
Germany, was named. by Secre¬
tary of State Marshall on May 6
to head the American delegation
on
the
four-power
commission
which is to attempt tq adjust dif¬
Comparing the first quarter of treaty, Associated Press Washing¬
year with the corresponding ton adyices on May 8 stated, which
period of last year, sales were up added:
this
50%
or
more
in the following
Inventories, valued at cost, con¬ trades:
paints, electrical goods,
as they were up 4%
meats, plumbing and heating, and
at the end over the beginning of
lumber
and
building materials.
March and they were up 70% Only five kinds of business re¬
As. in previous
Gen.
to
ferences over the Austrian peace
tinued to rise
over
viser
A
will
committee of experts who
concentrate
nation
of
the
on
the exami¬
specific question
of German assets in Austria will
but. inyentqriqs were being closely
qply watchpd ' and controlled — some¬
about 4%
of the nation's rail thing that was not too general
in pre-war years. For the first
beer, wines and liquors, jewelry,
States
member
of
this com¬ freight.
leather, and miscellaneous.
time since the war ended the steel
The rate order was contested
mittee.
Five trades showed increases in
industry appears to be entering
by nine northern states,, the six
Other members of the American
a
normal business period of ac¬
inventories,
of 100%
or
more,
New England Governors and 33
March 31 compared with a year
delegation qre Francis T. William¬
tivity, the magazine states.
western railroads with the latter
earlier: clothing and furnishings,
son,
of • the .State Department's
Backlogs are large but most of
full-line
electrical
merchandise, central European division; Covey holding that the new rates were these unfilled orders will be filled
confiscatory. * "
furniture, wines and liquors, and T. Oliver, of the department's
by orderly schedules between now
On the industrial front produc¬
lumber.
Fourteen
additional division of German-Austrian eco¬
and the end of the third quarter.
ported a smaller dollar volume of
business this year than last year:
the
commission.
Ginshurg, former .govern¬
mental counsel, is to be United
be
part
of
David
lines of trade except
increases of
trades recorded
or
moife.
Only
in
the
50%
case
.
.
reported
ume
of
an
increase in dollar yol¬
more
than
March of last year.
10Q%
over
Other trades
recording increases of 50%
or
more included paints, wiring sup¬
plies, electrical appliances, meats,
lumber.
Comparing March
with February of this-year, im
and
creases
of
10%
by J13
recorded
.
or
more,
of
the
were
trades.
Twenty additional trades reported
moderate increases, up to 10 %,
.
goods
ahd
cover
-
nomic affairs, and Raymond W.
of Goldsmith, of Washington, econ¬
and vegetables, wines and liquors, dairy products and optical goods omist.
jewelry, optical goods, leather and wpre inventories smaller than last
One of the chief problems fac¬
' - / *
shoe,findings, and miscellaneous. year.
ing the commission is the claim of
Fuli-line electrical goods houses
Accounts
receivable
of
2,043 Russia to German property in
March
class rates apply chiefly to manu¬
factured
wholesalers
March
were
,
.
.
the beginning of Aqstria,-which the other Big Four
48i% above a yea?- powqys have
at
tion
for
the high
the
week
held
close
to
levels of previous weeks
industries maintaining
around post-war peaks.
with many
output
Some
raw
materials
and
certain
component
parts
continued in
short supply and work stoppages
occasioned by strikes held down
copteqded was taken production slightly in some sec¬
tions of the country. In the main,
will also be made to
employment was high and back¬
claim by Yugoslavia for
logs of orders in many industries
Carryovers
and may disappear within
months unless a coal
wane
the next few
strike occurs,
tinues
than
of February of this year.
Despite the increase, the collec¬
tion period for most lines of trade
Attempt
months.
still less than fqur weeks and
for some hinds of business it is
is
less than two weeks.. Only , in the
case of electrical .appliances.and
beer
was
crease
4here
an
appreciable in¬
in the collection
period.
settle
a
for
in
Carinthia.
> Great
Britain, France and Rus-:
sia will also send delegations to
jpie. commission which is meeting
in Vienna.
remained large,
Estimated production of autootive vehicles the past week,
according
to
Automotive
Reports,..amqunted tq 93,369 units
as compared with 101,690 units in
adds.
for
been the case in past
Steel promised to con¬
for the balance of this
has
sumers
year
.
the paper
deliveries con¬
but it is of a different nature
Pressure
from the Austrians under duress.
reparations from Austria and
astrip of border territory
unfilled promises
hob with production
schedules last year — are on the
earlier and up 5% over the begin¬
ning
—
which raised
will^ieatly fall in line and
be taken care
Consumer
of
on
mill schedules.
pressure
exerted
last
those who were
assured they would get their sup-*
week came from
-
(Continued
on page
11)
"protect,"
As We See It
(Continued from first page)
enough
fancy
to
value of the annual produce
sumption
of its land and labor.
"encourage"
As may be
seen
from
the
exposition
quoted in earlier paragraphs,
free
'Ml
I
I
or
enterprise.
Consumers«Price Index
it is of the
essence
of free
en¬
terprise that there must be
"To give the monopoly of no effort on the
"All systems either of pref¬
part of gov¬
the home market to the prod¬ ernment to direct the flow of
erence or of restraint, there¬
uce of the domestic industry,
capital or energy into this or
fore, being thus completely
in any
particular art or manu¬ that industry, or to prevent it
the obvious and
flowing
into
other
simple system of natural lib¬ facture, is in some measure to from
direct private people in what branches.
erty establishes itself of its
manner they ought to employ
own
accord.
Let
us
not
deceive our¬
Every man, as
their capitals, and must, in al¬
selves.
These governmental
long as he does not violate the
laws of justice, is left perfect¬ most all cases; be either a use¬ interferences with* natural
less or a hurtful regulation. If
law take many and varied
ly free to pursue his own in¬
terest his own way, and to the produce of domestic can forms—and are very likely
be brought there as cheap as not to be
recognized by those
bring both his industry and
that of foreign industry, the for whose benefit
they are de¬
capital into competition with
One of the most wide¬
those of any other man, or regulation is evidently use¬ vised.
order of
able
to
the
interest
of
a
a
slightly, said the Labors
r
over the quarter from December,
report, which added:
Retail
prices
for
all
major 1946 to March, 1947.
Prices for
groups
of
living essentials ad¬ nearly all garments and shoes in¬
vanced.
Food prices in large cit¬ creased from Feb. 15 to March 15.
Bureau's
ies
jumped
prices rose
Higher, prices were reported for
men's
wool
clothing,
business
In
shirts, work clothing, and under¬
clothing in most cities. Prices of
women's rayon dresses, slips and
hosiery also advanced.
The cost
almost 4%; clothing
1.5%; housefurnishings and miscellaneous goods and
services advanced 0.5%; rent fuels
and light
increased fractionally.
the
It is clear
to
three duties
enough that for¬
eign critics are not the only
Again Pres. of
the; duty of protecting, as far
sion for.
,
Peter
"What is prudence in the
possible, every member of
the society from the injustice conduct of every private fam¬
or oppression of every other
ily can scarce be folly in that
member of it, or the duty of of a great kingdom."
establishing an exact admin¬
Ignorant Defenders
istration of justice; and, third¬
If such is the essence of
ly the duty of erecting and
maintaining
certain,,, public laissez-faire, or "free enter¬
works and certain public in¬ prise,"'in the spirit of which
stitutions- which it can never this country was founded at
as
,
be for the interest of any
in¬
dividual, or small number of
ind i vid u a 1 s, to erect and
maintain; because the profit
could never repay the expense
to any individual or
small
number of individuals, though
it may frequently do much
more than
repay it to a great
society."
precisely the time the writ¬
ings of Adam Smith began to
be "heard 'round the
then many
•have
real
the
sincerity of the individ¬
Obviously, virtually all
the New Deal philosophers
ual.
again:
must
"What is the
Such
species of do¬
mestic
industry which his
capital can employ, and of
which the produce is likely to
be of the greatest value, every
individual, it is evident, can,
in his local situation, judge
understanding of the
of it—assuming,
must, in many cases
no
nature
we
as
of
Or
of that system
to be defenders
be
a
excluded
at
once.
conclusion would (in
private at any
rate) probably
be accepted without hesitation
by the "intelligentsia" of the
movement, whatever may be
true
of the rank and file of
political elements supporting
much better than any states¬ it.
But, whatever the claims
man or
lawgiver can do for of such groups and individ¬
hum.
The
statesman
who uals, it is obvious that "free
should attempt to direct pri¬
enterprise" and
"planned
vate people in what manner
economy" in any form are
they ought to employ their wholly and irreparably in¬
capital would not only load compatible.
himself with
sary
a
most
attention, but
unneces¬
assume an
authority which could safely
be trusted, not only to no sin¬
gle
cil
person,
but to
no
coun¬
senate
whatever, and
which
I
or
would
nowhere be
dangerous
as
so
in the hands of
a
Then there
are
reelected
of
President
The
family food bill—amount¬
ing to more than two-fifths of the
moderate-income city families'
budget:—advanced 3.9% between
15 and March 15, after de¬
Feb.
2.9%
clining
vember and
mid-No¬
between
mid-February. Prices
for all major groups
Meats
of foods rose.
5.5% higher as
averaged
increased
pork
for
prices
advanced
tables
more
Fresh fruits and vege¬
than 13%.
reflecting
5.3%,
leather footwear
of
ily
jumped nearly 20%.
prices rose 2.1%
mid-March as most items
group continued to ad¬
vance. Prices for gas stoves, wash¬
ing machines, and bedroom suites
advanced; prices for small tablemodel radios,, higher quality elec¬
tric refrigerators, upholstered fur¬
niture, and mattresses declined in
ary and
this
in
some
All
be¬
food
15 and March 15.
tween Feb.
mid-March
tween
and
again.
rose
Housefurnishings prices in¬
0.8% between mid-Febru¬
vegetable crops. Prices of fats and
oils averaged 9% higher as lard
other
cities.
Miscellaneous
ical
Be¬
mid-April
for
care—especially hospital rates
Prices also went up
gasoline, newspapers, and auto
Slightly lower prices
reported for some automo¬
insurance.
prices usually increase; this
however, food prices drop¬
ped about V2 % according to a spe¬
biles.
cial survey.
as
•
electricity,
Fuel,
who had
folly and
pre¬
and
ice costs
during the month
increased 0.1%
prices for petroleum products
a number of cities.
15, the food price in¬
(1935-39 = 100).
advanced in
in large cities have
On March
Food
serv¬
med¬
were
year,
dential rents was obtained from a
189.5
was
and
—increased.
prices
103%
advanced' almost
since
the
Information
small
on
of
group
changes in resi¬
dwellings in six
On the basis of
Prices of fats and oils this information, it was estimated
are 159%
higher than in August, that the rent index for all large
1939; meat and fresh fruits and cities combined increased 0.1% to
vegetables have each risen 116%; 109.0% (1935-39=100) on March
prices of dairy products are 101%
15, 1947. Rents advanced in Mobile
above August, 1939.
as higher rates were charged for
Clothing prices rose 1.5% be¬
tween February and March, 4.4%
public housing.
•<
month before the outbreak of
war
cities in
March.
in Europe.
the
of
York
New
for
a
term
of
One
year
at the 179th annual meeting,
held
gas Sales
on
March
dent of Delaware, Lackawanna &
ago,
Western
RR.; George L. Harrison,
of
President
son,
Trust
In¬
York -Life
New
Co., arid'Harvey D. Gib¬
surance
President of Manufacturers
Co., were elected to serve
four years.
Arthur M.
ert
Reis
Reis, President, Rob¬
Co., was re-elected
&
Chairman of the Executive Com¬
mittee. Jacob Aronson
was
elected
member-at-large of the Com¬
mittee, and H. Donald Campbell
a
James
and
T.
similar posts.
re-elected
Lee
William
Treasurer;
to
William J. Graham,
B.
Scarbor¬
ough, Assistant Treasurer, and B.
Colwell Davis, Executive Secre¬
tary, also were re-elected. Robert
W.
Dowling, President of City In¬
vesting Co., was elected Chairman
of the newly-created Committee
City Affairs, with Richard E.
Dougherty,
Caswell
M.
Smith,
on
Clarence
L.
Law,
George McAneny and David L. Tilly as mem¬
bers.
as
new
Chairmen
standing
Chamber,
of
May
committees
indicated
1,
in
2390,
page
of
our
the American Gas Association reports.
structing expansion of the trans¬
mission and distribution plants of
these companies.
Extended pe¬
riods of cold weather in March,
1947,
principally
accounted
ago
year
a
the gain
for
mild
with
compared
as
weather
in gas
sales.
Natural
gas
sales
for
issue
were
1947, were 2,509,000,000 therms, an
increase of 19.9% over last year.
For
12 months ending
sales
natural gas
of
March 31,
totaled 26,-
612,000,000 therms, an advance of
4.1% over the previous year. The
Association's index of natural gas
Period Ended
gas
March
-
Manufactured gas
-
gas
ticket
was
presented
by
Nominating Committee.
thefms,
185,000,000
were
increase of 42.5%.
For the 12-month period sales ag¬
gregated 1,370,000 therms, a gain
an
The index of mixed gas
of 11.2%.
sales stood at 249.7% of the 1935-
1939 average.
Summary
March
and
of
the
sales
12
data
2,413,981
1947—12 Mos.—1946
23,611,847 22,691,87$
2,286,125
2,055,557
1,369,875
27,267,847
,,
The
Senate
Committee
Investigating
refused permis¬
War
was
May
late
1,232,319
25,979,751
..1-15
letters, documents or
papers which are relevant to the
Committee's investigation of pro¬
curement of petroleum products
by the Navy Department to cer¬
tain oil companies operating ill
and near Saudi Arabia."
files
Papers to Senate Group
for
months ended
(in 000 therms) follows:
March 31
l
sion by President Truman on
1
to have the files of the
those who
March
2,926,617
Total
all
Chairman of the
a
gain of 21.0%, and for 12 months
ending March 31, sales amounted
to 2,286.000,000 therms, up 11.2%
over the previous year. The index
of manufactured gas sales stood at
192.2% of the 1935-1939 average.
Sales
of
mixed
gas
during
31—1947—Month—1946
2,509,343
2,092,139
232,583
192,277
184,691
129,565
To Submit Roosevelt
James G. Blaine,
For the 12-month period
March, representing
the
elected.
The
gas
ending March 31, 1947; sales totaled 2,7,268,000,000 therms, a gain, of
5%.-The report of the Association ad&s:..
-The sharp rise in gas sales during March reflects the huge de¬
mand for gas housed heating and^
the efforts of gas utility compa¬ sales stood at 221.1% of the 19351939 average on March 31, 1947.
nies to meet this unprecedented
Manufactured
gas
sales for
demand despite shortages of steel
March totaled 233,000,000 therm^
and other materials that are ob¬
Mixed
of
were
Natural
Those named
Again Rose Sharply in March
utility industry to ultimate consumers during
2,926,617,000 therms, an increase of 21.2% Over a year
of the
Sales
May 1. Three new VicePresidents, William White, Presi¬
those
advices to the
stated that
Earle R, Koons, a lawyer, who is
who
do
shy away from nounced on May 8 that the new sociated Press Washington advices one of the executors of the Roose¬
velt estate, said that the executors
Classified Telephone Directory stated. However, Mr. Truman in¬
planned economy (when it is
would comply strictly with Presi¬
contains a postal information page formed the Committee that he had
"written to the attorney for the dent Truman's request. Mr. Koons
recognized, at any rate), but
showing the rates of postage for executors of the estate of Franklin said that all papers relating to the
who advocate "incentive taxa¬
all classes of mail matter, as well D. Roosevelt and requested them subject would be extracted from'
tion," or various other govern¬ as valuable information pertaining tq make a search of the Rooser the' filesand sent to the : White
House. ^
v
."r\
;
velt papers and to take from the
mental
attempts to "aid,"- I to other postal services.
would certainly not
selves
as
New
list them¬ Postal Rates in Phone Bk.
Dealers,
and
Postmaster Albert Goldman an¬
President
Roosevelt searched for
documents bearing on the Com¬
mittee's Arabian oil inquiry, As¬
The following day
New
York
.
man
goods
ices costs rose 0.6%. Costs of
food
dex
shoe re¬
creased
the February freeze of the winter
prices
and
pairs for all members of the fam¬
Chamber of Commerce of the State
world,"
who today profess
Grimm, Chairman of the
Board of William A. White & Sons,
was
20% higher than a year ago,
above August, 1939.
58.5%
and
employ their'whole indus¬ ones who have no clear under¬
of great importance, indeed, try in a way in which they
standing of the true free en¬
some
advantage over
but plain and intelligible to have
terprise system.
their neighbors, and to pur¬
common understandings: first,
chase with a part of its prod¬
the duty of protecting the so¬
ciety from the violence and uce, or what is the same thing, Grimm
the invasion of other inde¬ with the price of a part of it,
whatever else they have occa¬ N. Y. Chamber
pendent societies; secondly
ties to attend to;
mid-March, consumers' prices
were
make neither the one nor
them find it for their interest
moderate-income
for
decreased
But there is nothing to be
other, but employs those gained by laboring the point.
different
artificers.
All of
the
According to the sys¬
tem
of natural liberty, the
Sovereign has only three du¬
society.
services
and
the final figures of the Bureau of Lebor Statistics of the U. S.
ment of Labor.
This advance brought the Consumers' Price
spread of them in this day and
is completely discharged from erally be hurtful.
It is the time has come to be "guaran¬
maxim of every prudent mas¬ teed" credit to this or that
a duty, in the attempting to
ter of a family never to at¬ interest for the
plain purpose
perform which he must al¬
ways be exposed to innumer¬ tempt to make at home what of attracting capital where it
able delusions, and for the it will cost him more to make would not otherwise flow. A
than to buy.
The tailor does historical interference even in
proper performance of which
not attempt to make his own Adam Smith's
no human wisdom or knowl¬
day is the cus¬
edge could ever be sufficient; shoes, but buys them of the tom duty levied not for rev¬
The
shoemaker enue but as a
the duty of superintending shoemaker.
protection to
the industry of private people, does not attempt to make his home industry.
In the labor
and of directing it towards own clothes, but employs a field,
the establishment of
The farmer attempts
the employments most suit¬ tailor.
monopolies is a common case.
to
families
according to
Depart¬
Index to
record high of 156.3 (1935-39=100) on March 15, 1947; it followed
two-rqpnth period in which retail prices remained unchanged or
goods
2.0% higher in mid-March than in mid-February,
were
If it cannot, it must gen¬
less.
The sovereign
men.
Highest in Mid-March
According io Labor Department Report
Consumers'
himself fit to exercise it.
taken away,
Thursday, May 15, 1947
COMMERCIAL & FINANCIAL ChSONICLE
THE
"Times"
JVolume 165
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4594
straw
Steel Operations AdvanceOf Balance With Demand
Supply Still Out
Scrap* Again Lower
"Unbalance in steel inventories has been the major reason for
temporary shutdowns in the automotive industry during the past
week," according to "The Iron Age," national metalworking weekly,
which in its issue of today (May 15) further states as follows:
"Before the situation is clarified more shutdowns can be ex¬
pected as automobile makers attempt to accumulate banks of supplies
which will support the recent hign«
operating rate at most automobile owned
porary slowdown at a midwestern
steel plant are only contributory
by native Luxemburgers
Belgian and French banks.
Aloyse
Meyer,
former general
manager whom American officials
in Germany have accused of being
an arch-collaborationist, has been
factors
elevated
plants.
plus
"The steel strike in the
Chicago
district two weeks ago and a tem¬
the
to
crisis
in steel
dis¬
that
from
post
tribution which has been brought
Arbed
about
elected board chairman.
by
much of
the
one
another.
acquisition
too
of
item and too little of
Unqualified statements
steel shortages tend to
reflect
the ability pf the steel indus¬
on
on
try to produce and ship sufficient
steel
to
current
meet
demand.
The industry has been establishing
new records when its operations
have not been interfered with by
material
shortages, strikes and
deliveries
late
new
on
rolling
equipment.
"The
demand for
overall
steel
the
and
directors
of
board
to
the
in
wind
pointing
to
s.eei
offerings at premium prices.
"To what extent this rising
con¬
servatism is due to talk of
sible
business
recession
a
pos¬
later
inventory balance is uncertain.
Operations are contracting in a
few consumer goods Lnes where
output is catching up with de¬
mand, at least at present price
temporary
some
been
in
fabricating
upward
and
every
plants
attempt
has been made to maintain oper¬
levels at around 97% of
capacity for the industry.
week the ingot rate ad¬
vanced and indications are that
ating
rated
"This
will
there
be
Even
week.
further gains next
steel plant af¬
the
fected by a
strike two weeks ago
hopes to make up the 110,000 net
ton loss in finished steel products
by the end of the third quarter.
"For
several months both pro¬
The ges¬
by European
interpreted
resulted from the
wage increases
and better
working conditions in
the steel industry.
Industrial re¬
lation officials say that the feel¬
between
ing
labor
is
now
than at any
and
management
constructive
more
time in
years.
"Despite the encouraging signs
of better employee productivity
steel industry officials are utiliz¬
ing every method at hand to re¬
duce unit costs in steelmaking.
The wage bill, higher prices for
mechanical and rolling mill equip¬
ment
and
the
higher level of
prices
of
raw
materials have
forced
firms to
all steel
embark
campaign to cut costs, in¬
crease
output and yet maintain
the current wage structure.
This
on
a
problem at times has produced a
reaction
from
customers,
espe¬
cially when it resulted in con¬
centrating production, on high
re¬
turn steel items.
"Capt. A. H, Heid, representing
the British Iron
& Steel Federa¬
tion, arrived in this country last
week to attempt the purchase of
1,250,000
tons
,
steel for Great
of
semi-finished
Britain.
He
was
#lso commissioned to try to get
firm orders on sheets and light
"plates,, Coming at
a time when
(American automobile makers are
!
shutting
their
down
plants
be-
;*cause;
of'Stqel shortages and un¬
balanced-inventories, it is unlikely
lhal Captain Reid will be able to
place a firm order carrying speci¬
fied delivery dates for the
mate¬
rial he desires.
"',{,lAn
attempt by Sir Andrew
R&e -DUnc'an, Federation head, to
'purchase; 2,000,000 tons pf semi¬
finished -steel for Great Britain
At the end of March manufacturers' stocks totaled $21.5
billion, or $300 million more than at the end of February, according
to tne Department, which further <£continued
said:
"The
manufacturers'
and material costs.
"Heavy
mill
order
backlogs
high steelmaking opera¬
assure
indefinitely into the future.
stocks
increased
last
Fall
and
subsequent
\lbrders-amounted to about 50,000
tons. American steelmakers prob¬
ably will be willing to accept or¬
ders subject to an 'if, as and when'
basis. ; The British, however, want
a f irm, qrder.;
;
..;
:
'
"Choicest plum of European
steel Industries is the directing
,
'
-
post
of
Arbed,
steel
empire
reported
slightly
value
inventories,
of
dollar
while -the
dustries held
their stocks
the
at
previous month's level.
"The
total
turers'
months the dollar increases
reached
were
higher
remaining non-durable goods in¬
$835 million to $18 billion at the
end of the month.
In succeeding
Steel producers are turning down
tonnage although selling quotas
for third quarter are a little more
value of manufac-:
shipments for
M a rc h
$13.8 billion, nearly $1
as
that the oper¬
metal
products
held
the
dollar
value of their stocks to the Febru¬
Senate
Group Hearings
Gn Italian Treaty
goods
metals
industries.
and
Nonferrous
building
ary
Total
Deposits of
U. S. Banks Dec. 31
scheduled above 90%.
the
next meeting of the Council United States and possessions on
Foreign Ministers, and recom¬ December 31, 1946, amounted to
"Steel" of Cleveland, in its, sum¬
mended that Congress should:!
$156,801,000,000,
Comptroller
of
mary of latest news developments
"1. Adopt a joint resolution ter¬ the Currency Preston Delano an¬
in the metalworking industry, on
nounced on May 7. This figure,
minating a state of war with Italy.
May 12 stated in part as follows:
"2, Authorize President Truman, which covers the returns of the
"Higher steelmaking costs pre¬
pending ratification of the treaty, 14,633 active banks of all classes,
clude any early reduction in fin¬
to enter into an executive agree¬ was a decrease of $3,548,000,000,
ished steel prices despite the satis¬
ment with Italy putting into effect or more than 2% in the amount of
factory first quarter earnings of
the
treaty's
economic
clauses deposits reported by the active
the steel industry. Compilation by
which he deems in the interest of banks on June 29, 1946, and a de¬
'Steel' shows 20 producers, repre*
Italo-American
economic
rela¬ crease of $9,729,000,000, or nearly
senting 86% of national ingot
tions."
6% in the amount reported on
capacity, had net profit of $115,Mr. Berle's views are opposed Dec. 31, 1945.
277,513 in the period compared
to the reported attitude of Secre¬
Mr. Delano also reported that
with
$89,023,008 in the fourth
quarter, 1946. Recent wage in¬ tary of State Marshall, the same the total assets at the end of 1946
advices continued.
Mr. Marshall amounted to $169,406,000,000,
creases, however, will boost direct
steel labor costs at least $153,000,- is understood to be pressing for which was $3,296,000,000, or near¬
000 over the remainder of this early ratification of the treaties ly 2% less than at the end of
with Italy, Bulgaria, Romania and June, 1946, and $8,945,000,000, or
year while raw material charges
Hungary, which, although signed 5% less than at the end of the
are expected to continue upward.
#
$
since December, 1945.
"Total capital
of
In view of this
in
prices
no
material easmg
likely pending
competitive mar¬
ket with supply and demand in
better balance than at present. At
the moment, scrap continues soft
with prices down from a week ago
in several important consuming
areas.
At Pittsburgh the market
appears settling around $30 for
heavy melting grade, but with
return of
seems
a more
in
Paris
become
last
February,
effective
United States
approved by
a
so
will, not
far
as
the
is concerned,
until
two-thirds vote of
the Senate.
calendar year
1945. The decrease
in assets in the year 1946 was due
to
a
reduced
States
amount
of
United
Government
obligations
held because of Fe'deral debt re¬
On
May 1, Paul Shipman An¬ tirement.
drews, Dean of the Syracuse Uni¬
The. Comptroller's, advices con¬
versity Law
School,
appearing tinued: The banks held obligations
before the Committee, urged that of the United States Government,
action on the treaty be deferred direct and
guaranteed, of $87,094,*
until
a
settlement was reached
000,000 in December, 1946, a de¬
with Germany. He expressed the
crease of $14,810,000,000, or near¬
,relatively litle4 buying,,a (te?t of
strength is lacking/ Such test is opinion,' an 'Associated Press des¬ ly 15%, since December, 1945.
patch
stated,
that
the
expecied around mid-May.
treaty Obligations of States and politi¬
"Metaiwprking operations con¬ "pushes Italy toward communism," cal subdivisions held amounted to
tinue- impeded by, shortages of and that its terms were "Very $4,478,000,000,
an
increase
of
steel, especially flat-rolled prod¬ much at variance" with President $394,000,000, and other securities
ucts.
Currently
a
number
of Truman's policy of helping Greece held amounted to $5,065,000,000,
plan's, including automotive, re¬ and Turkey resist communism. an increase of $537,000,000. The
•
port inventories too small to sup¬
Mr.
Andrews
criticized
the
rep¬ aggregate of all securities held at
treaty. the end of December, 1946 was
Replying to Mr. Andrews, Sen¬ $96,637,000,000,
and represented
porarily curtail operations. Nev¬ ator Vandenberg (R.-Mich.), Com¬ 57% of the banks' total assets. At
mittee
ertheless, while consumers (are
Chairman, declared that the end of the calendar year 1945
seeking more tonnage than mills there would have been on agree¬ the ratio was 62%.
can supply
ment with Russia on an Italian
promptly, evidence is
Loans totaled $35,823,000,000 in
accumulating to indicate a nipre treaty if its terms had not in¬ December, 1946, an increase of
conservative buying policy is in cluded
payment of reparations. $4,129,000,000, Or 13% since June,
Mr.
ascendency.
Vandenberg observed that 1946, and an increase of $5,356,-
port
full
production
schedules,
and they have been forced to tem¬
arations
provision
in
the
.
failed
their seasonal decline.
textile and paper industries
The
materials
level, while increases of about shipments were about the same
in dollar value as during Febru¬
2% were reported by the machin¬
In contrast, the non-durable
ery, transportation equipment and ary.
building materials industries. Al¬ goods industries reported no in¬
The Senate Foreign Relations
though the value of inventories of crease in the value of their inven¬
Committee, which is conducting the non-durable goods group re¬ tories during March and a decline
hearings
on
the* Italian peace mained at the
of 3% in the daily average valuer
and 48.9% one year ago.
This
February volume,
treaty, was told by Adolph Berle,
of shipments. The decline in ship*
represents
an
increase
of 3.6
there
were
varied
movements
Jr., former Assistant Secretary oi
ments was widespread through¬
points, or 4.0% over the preceding
among the component industries. out all of the soft
goods indus¬
week.
The operating rate for the State, on April 30, that the treaty,
a
"great
diplomatic Stocks held by the food industry tries."
week beginning May 12 is equiva¬ although
involved "certain
lent to 1,648,400 tons of steel in¬ achievement,"
calculative risks" and is patterned
gots and castings, compared to
of $5,802,000,000 showed an in¬
on the belief that a general Euro¬
1,585,400 tons one week ago 1,653,crease of 39% in the year.
pean peace will soon be achieved.
700 tons one month ago and 861,Cash and balances • wi h other
Mr. Berle contended, according to
800 tons one year ago.
This was
banks, including reserve balances,
Associated Press Washington ad¬
the
19th
consecutive
week
in
in December, 1946 were $35,218,7
vices, that there was little-chance
The total deposits of all com¬
wnich
operations
have
oeen
of such a general peace even at mercial and savings banks in the 000,000, a decrease of $39y,000,00p
received indicated
#
ductivity and morale have been
bri the upgrade.
A fresh spurt has
May 2 by the Office of Business Economics, Department of Com¬
merce.
follows: August, $456 million; billion over the February volume*
September, $420 million; October, However, the rise was due en?
$647 million; November $363 mil¬ tirely to the difference in the
sources as one of defiance hurled
at Americans who, according to
liberal.
Given a few months of lion; December $363 million; Jan¬ number of. working days in the
On a daily average
Arbed,
are
attempting to run high operations, however, and the uary $546 million; February $375 two months.
million and March $300 million.
basis the value of shipments de¬
down the value of the Luxem¬
situation may ease noticeably in
"All of the March increase in clined about 2%.
The durable
bourg combine in order to buy it, some leading products though any
manufacturers'
inventories
oc¬
goods
industries not only in¬
"A slight decline in the price of slack in domestic demand is
likely
curred in the durable goods in¬ creased the value of their inven¬
No. 1 heavy melting steel in Chi¬
to be promptly taken up by for¬
cago brought "The Iron Age" steel
eign requirements. Even though dustries, continuing the pattern tory holdings in March, but also
set in February when, for the first recorded a rise in the
daily aver¬
scrap composite down to $29.58 a
the
large
reservoir
of
export
gross ton, a drop of 17c. from last needs
pressing for attention is time, the bulk of the inventory age value of shipments from the
rise was centered in heavy goods February
rate.
The
week's figure of $29.75."
improved
halved there still would remain a
Processors of
basic sales position was characteristic
The American Iron and Steel large foreign' demand that can be industries.
iron
and
steel
and nonferrous of practically all of the durable
Institute this week announced that
readily financed."
is
ture
ating rate of steel companies hav¬
are bound to
occur until
distri¬ ing 93% of the steel capacity of
bution patterns have been cor¬ the industry will be 94.2% of ca¬
for the week beginning
rected.
In recent weeks, except pacity
for the strike in the Chicago dis¬ May 12, compared with 90.6% one
week ago, 94.5% one month ago
trict, the trend in steel output has
shutdowns
Inventories, continued to in¬
during March, but the rate of increase was lower tliari at any
time since last June, according to preliminary estimates issued on
period of heavy inven¬
tory
accumulation
began
10
months ago.
During July 1946,
levels. Also, building activity is
the month of the largest dollar
disappointing for this time of year,
value of inventory accumulation,
being held back by high labor
products is so great and the pres¬
telegraphic; reports which it had
sure for delivery so insistent that
periodically
The dollar value of manufacturers*
crease
in
the year and how much to better
tions
5
Manufacturers' Inventories in March
easing consumer pressure is wan¬
ing interest in black market
(2649)
.
"For
one
f
thing,
users
cember
31,
accounts on De¬
were: $11,438,000,000, compared to $10,612,000;000
at the
1946,
end of 1945. The total
of surplus,
profits and
the end of 1946
an
at
reserves
was
$8,138,000,000,
increase of $714,000,000, or 10%
in the year.
Deposits of individuals, part¬
nerships,
and
corporations
of,
$131,616,000,000 on December 31,
1946,
were
$12,392,000,000,
or
more
than 10 % gieater than at
the end of 1945, and United States
Government and postal savings
deposits of $3,193,000,000 were
$21,586,000,000 less than at the
end of
of
1945, due to the withdrawal
loan accounts to provide
war
for Federal
debt retirement.
De¬
posits of States and political sub¬
divisions of $6,912,000,000 showed
an
increase in the year of $1,091,Deposits of banks were
000,000,
$12,680,000,000v
a decrease of $1,409.000.000,
and
other
deposits
were $2,400,000,000, a decrease of
$216,000,000."
Assessment
on
War Loan
Deposit Accounts
Maple T„t Harl, Chairman) of the
Federal Deposit Insurance Corpo¬
ration, released on April 30 * tpe
following statement with respect
to
assessments
"War
which
loan
have
loan
war
on
posit accounts:
de¬
tV.
-
deposit
accounts*
been exempt
fropv
Federal deposit insurance assess¬
during the war years, will
ment
assessment ef¬
fective June 30, 1947, The Presi¬
proclamation which fixed
become subject to
dent's
the! 'cessation
noon
on
of hostilities'
as
s.of
Dec. 31, 1946, caused the
exception
thereafter.
to
cease
'six
months'
Since the law provides
.
are
less
inclined to accept substitute spe¬
cifications, and, further, reluc¬
tance to accumulate inventories is
Russia
must
furnish
Italy
raw
materials to collect reparations in
the form of finished products. > He
asserted that former Secretary of
000,000, or nearly 18% since De¬
cember, 1945. Commercial and in¬
dustrial loans of
$14,237,000,000 at
the end of 1946 were 48% greater
for tabulating total deposit habile
itles for assessment purposes 'at
the end of each calendar
day,' war
loan deposit, accounts .will have.tp
growing. From some consuming State Byrnes "did everything in than at the end-of 1945; consumer be included when insured banks
points reports are, heard that sup¬ his power to cushion the impact loans of $4,109,000,000 showed an, total their
daily deposit liabilities
pliers are being "asked by manu¬ of the reparation^, without which increase in the year of 70 %; real
at the close of business qn June 30,
facturers not
to
make
ahead of schedule.
shipments
Still
another
there would never have been any
estate
agreement."
were
^
:
loans
up
of
$11,675,000,000
30% and all other loans
and thereafter"
"
■
p
J6
THE COMMERCIAL & FINANCIAL CHRONICLE
(2650)
workers
feW
constituted
by
year
the ' quantity
produced
sold, and the Volume of em¬
ployment
and
the
amount
of
wages paid. If fewer goods can be
sold the demand for raw mate¬
reduces
(Continued from first page)
have
year
irom 48.8% to 77.6% of the gross
national product, the average be¬
ing 66.2%. Business outlays have
for
and
by
,
rials
is
reduced,
industries.
;
Since wages
for current produc¬
wages included in
the price of materials currently
outlays might be more effective
being. processed amount in most
than a stimulus to consumers' ex¬
manufacturing industries to about
penditures.
two-thirds of the total cost, higher
If, for example, there is a falling-off in employment in the wages must mean higher costs of
shipbuilding
industry,
higher production. -Wage boosts canhot
be taken out of profits, because
wages in that br other industries
to
business outlays or to government
would
What
not
is
help
;
tion
and
the
situation. profits are too small. In the myth¬
ical average manufacturing Cor¬
orders,
the
is
needed
more
for merj poration they average about onetenth of wages, but half the time
such orders
the govern¬ they do not exist at all, since in
an average year half of the con¬
ment or by private
ship oper¬
cerns
either break even or lose
ators.
Or perhaps it would
be
A small wage increase
better to transfer the workers to mohey.
can be. paid for a time by sacri¬
some
other
industry, and it is
more likely that their skills Would ficing the captal invested, by ne¬
depreciation, defaulting
be most Useful in some form of glecting
on
mortgages, etc.
But not for
Jhteavy
industry
not
producing
goods for consumers, but goods long; the high-cost or marginal
that are bought by business con¬ firms, must soon go out of business
cerns.
Even if the industry show¬ and their employees must look for
new jobs.
Profits during the '30s
ing signs of weakness is ohe that
cither
for
warships
or
chant
Vessels, and
must be placed by
makes consumers'
goods, it Would
were
ital
too small to attract the cap¬
for the expansion
urgently needs.
If
ulate all consumers' goods indus¬ they were further reduced many
tries Slightly instead of stimulat¬ concerns would be compelled td
fold
up,
and
their: employees
ing the weak one vigorously.
would have to seek new jobs.To a small extent wage rates
Consumers Goods Not Bought
can be increased at the expense of
Solely fey Wage Earners
be
and
wasteful
ineffective
adopt a remedy that
to
woiild stim¬
necessary
the nation
so
taxes,' especially the corporate in¬
But consumers'. goods are not come
tax. But if the government
bought solely by wage earhfers. does riot- need the tax revenue,
Every person is a consumer. ; But why should the wage eafhers of
of the 49 million persons in our
get
well-managed.corporations
labor force iq 1940, over 12 mil¬ the
money?
Why not have an
lion were plainly npt wage earn¬
equitable and widespread reduc¬
ers
or
routine Salary workers. tion in tax rates?
Over 10 million wejre employers
Whatever chahce
there might
or
managers, including farmers,
be in times Of expanding busi¬
receiving profits rather than, sal¬
ness
to raise wage rates faster
aries.
Only about two-thirds of
than
the
output per man-hour
the
nation's
income
ordinarily
without
causing
either
higher
goes to employees—including ex¬
or
immediate Unemploy¬
ecutives and professionals receiv¬ prices
ment,. that 'chance does not exist
ing Salaries. Less than 62% o,f the
if a decline in business activity
families and independent single
is plainly imminent or Under way.
persons in 1936 depended solely
By definition the
demand
for
Upon wages or salaries.
A large number of the wage goods at such times is falling off,
businessmen are disinclined to ex¬
earners
are
engaged in occupa¬
pand, customers unwilling to pur¬
tions
or
places where uniform
chase at existing prices and work¬
wage scales are impossible to es¬
ers
are
fearful
for
their
jobs.
tablish or to enforce. Only about
Since wage, earners rarely spend
15 million belong to unions, or
much of their wages oh the prod¬
about y4 of the whole labor force.
ucts of their own industry, high¬
Yet the labor agitators proclaim
er wage rates would have slight
that
raising
wages
for " union
effect in increasing sales or gross
members, and possibly other fac¬
income, and.would have a dras¬
tory workers if any non-union
workers are to be tolerated, will tically harmful effect on net in¬
come or phofits, and would
greatly
prevent depressions and promote
increase unemployment.
and prolong prosperity!
Ahd at
the same time they insist that div¬
Prospect of Profits Must Be
idends, profits, interest and rents
Maintained
muSt be kept down, although 38%
of the faimilies and independent
To maintain
prosperity the es¬
.single persons, according to the sential thing is to maintain a pros¬
,1936
analysis, received one or pect of profits for businessmen
.
,
.
.
-
.
of
more
those
of
forms
income,
who
willing to produce goods
and 14% depended entirely on in¬ that the
public wants while con¬
come from property or profits.
tinually giving the public more
Raising wage rates faster than for its money. The mere existence
the
increase
are
the
in
output
of of money in the hands of con¬
an unfair sumers—whether wage earners or
and ineffective method of stimu¬ others—does not
give rise to pro¬
lating production. It can, how¬ duction, but only to price infla¬
ever,
stimulate rising prices in tion, Unless at least these three
two ways. First by increasing the conditions are met:
labor
per
hour is both
,
demand for goods desired
(1) Those Who cah take the
by the favored group of laborers risks Of investment and enterprise
without increasing their supply. must be
sufficiently rewarded to
These are in general the goods in¬ induce them to take those
risks.
cluded in the government's index
: (2)
All other participants in
money
of
consumer
prices,
formerly
cost-of-living index.
This naturally raises the cost of,
living for everyone; it injures
production, including
those
who
ability.
wage
increase,
called
the'
did
not
receive
the
and takes aWay
part of the benefit from those who
did.
g
Secondly, the
wage
increase
raises the cost of production, and
thereby either raises the riiarket
price if consumers eoiitihUe to
buy the same quantities, or else
as
' class.
a
Unemployed,
Withthe
there
If
are
the innovating
proper
injuriously af¬
constituted from 3.4% to 25.0%,
the average being 11.7%.
And fecting farmers and miners, and
so
is the demand for tools, hiagovernment outlays have varied
from 6.7% to 49.9%, the average Chinery and construction mate¬
being 22.1%. If it were consid¬ rials, thereby injuriously affefctered wise to maintain the total ing all persons engaged in those
demand for goods and services
artificial means
a
stimulant
its, gains
share
way
ers, must
wage work¬
be rewarded in such a
to induce them to do so
efficiently, to the extent of their
way as
(3) The payment for production
distributed in such a way
as to create a well-balartced de¬
mand for all the things whose
production Is nfe'ceSsary for per¬
manent prosperity,
i.e. for pro¬
ducers' capital goods as well as
must be
gbods, and for hfplant or industry can get addiproportion of luxuries ahd tional workers only by raising
rates, ahd that ih turn may require
refinerhents as well as for neOes
consumers'
In plainer language,
saty staples.
becomes; more produfctive, how can the increased
product be best distributed to
maintain prosperity? The follow¬
ing are three choices for its in¬
ary,
have
If
ber
output
is
labor, which is
if labor be¬
increase
valuable
more
to
the
em¬
available
are
a
num¬
of
unemployed persons posthe required skills, wage
raised, even if
output per manhour does increase,
rates should not be
little
ih
the
until
unemployed
absorbed.
provement; it Would tend to raise
the
prices
of
Other
products
bought by laborers; it would pre¬
100% Ri$6 Sefeii ih
Cost of Congress
the United
States Con¬
like the average American
tax payer is taught in the rising
price squeeze, whith is lifting the
cOSt of Government
100%, Was
brought out on May 3 by the
That
gress,
the
advices from
Washington,
those
advices
as
giveh in the New York "Times'*
them
their
Previous
and
to
lay off
The
best
without
is
tend
would
have
wage
been
rate
is
monopolistic
From
recommendation of
a
in the form of lower
is
revealed today that
be¬
fore the war totaled $22,000,000.
Today the bill for the fiscal
year startirig with JUly is esti¬
not
employment.
tions.
,
It
though
(3) The benefits cOuld accrue in
first instance to the manage¬
and
stockholders. •- This
the
constitutes an incentive to prog¬
ress and, expansion.
It causes out¬
put to increase, ahd capacity to
expand, and encourages a greater
demand for labor. Unless there is
a
large pool Of unemployed,: this
raises
But
1
/
the
ment
make
also
further innova¬
•
As competitors
adopt the hew method, or maybe
Wage's.
by
-
there
with a
will be
$53,000,000 by the time all ad¬
justments
preference,
several
,
with
a
ing,
This
finance
to
is
the capital
gives them
and
the
American
innovations.
which. the
in
way
workers'
standard
of
living has been increased for over
a
century in step with the 1 in¬
crease in
output per worker, al¬
though the workers themselves,
as
individuals
had
very
that
or
as
a
class, have
little responsibility for
increase
in
output.
This is
the road to over-expanding
pfos^
perity.
/
.
i
Dangers of Over-Expansion
But
soaring
Congressional
officials say, are onlytypical of what is occiifrinf* in
every other department;
The
Whitfe* House, for instance, will
nessmen
the
must
market
not
and
overestimate
think
that, be¬
sales doubled last year they
certain to dpuble this year, or
cause
are
cost
year
"rates when the situ¬
ation was crying" loudly for price
reductions, that were impossible
wage
without wage
reductions.
quently
1 might state, if 1
merely
an
academic
$160,000.
The
the
reduction in
those
fortunate
Bureau, which cost $396,000 be-
to
who are
keep their
Printing Office is to get $7,156,000—twice as much
that their customers
are
able
to
pay for their purchases put" of
current incomes and not let them¬
.
eign relations at
000,000
to
the
fold up
$10,000,-
Connolly,
subplus property has been granted
Finland, Major General Donald H.
that
*
second
almost ten¬
are
since 1940.
*
,
veterans'
The
*
program*
the
largest budgetary item,
to cost $7,000.000,t
is estimated
than
000—more
eleven
what the veterans
got
times
in 1940.
BUt Corigress is unlikely to do
major cutting of funds iri
any
purchase of overseas
-
true of the
Department, Bureau and
in the Government—all
have costs
where for a remedy.
for
$117,000,000
is
same
agency
;
An additional credit of
cost of $14,-
job.
the
other
prices are to be redUced enough to
revive, demand. In view of the in¬
vincible prejudice of laborers on
this
point,
an
economist must
throw Up his hands, or turn else¬
try to prolong the bqoba by en¬
couraging customers to buy: be¬
yond their means. But that Js a
matter of banking policy rather
deceived
a
want
now
the
Department of Commerce, the
Department of the Interior* the
Department of Labor and every
Hourly rates must be reduced, or
else hourly output increased, if
000
be
do
And
fore does not redue'e selling prices.
by a rush of
demand based on the expansion' of
consumer credit.
They must hot
selves
pre¬
Judiciary cost $9,500,000
Pearl Harbor, but is to
cost $19,000,000 next year; vThe
diplomats*
who
before
1941,
took care of this country's for¬
the work" and avoid layoffs by
working part/time, but that does
not reduce labor costs and there¬
Finnish Credit Boosted
a
The
proposal WOiild be resisted by the
workers, or at least by their uniort
representatives. Organized labor
has at times been Willing to "Share
.
in
before
But even that mild
Which makes it all the more
ly at the expense of his competi¬
urgent that We reform our bank¬
tors, the whole of A's industry, can
ing system arid our tax system,
double its sales.
They mUst not arid that each business concern
overexpand their plants because show more care and skill in fore¬
of such mistaken estimates of de¬
casting its. future '* business and
mand, and especially must they
watching its liabilities and'4 com1
avoid overexpansion oW borrowed
rrtitments.
money. Likewise th'ey must make
as
war year.
jobs, and Would enable business
to lay off fewer men, and rehire
them sooner.
need
now -
Government
The
$3,506,000.
earners
enough
expenses in
The
Budget
"little"
Goverhment.
fore- the -war*-;; will
.
real wages per hour
wage
is true of the, other
same
relatively
were
economist;
"
for
y' 41
'
Conse¬
because A doubled his sales part¬
sure
.
$501,000 to Operate in" the
beginning ih July. Before
the war this outlay was only
prolonged by the policy, of main¬
taining
*
But only on one condition! The
boom must not be overdone. Busi¬
<
costs,
They
other
They
been
that depressions could be short¬
ened by more flexibility, in wage
becomes necessary to
price. Ih a few years rates.^At least it should be helpJuPttflet money Wages go down
the benefits are wholly passed,.on¬
when there is a large amount of
to labor or to consumers. -But the
unemployment, to the same ex¬
experience Of a ieW years qf good
tent that the, Cost of living haS
profits -encourages businessmen
gone down. This would mean no
heeded
;
With slightly more than 2,00(1
employes; it totaled an average
$410,000 a month. ;
' "i
that
sooner, it
lower the
and investors to continue innovat¬
made.
are
gressmen's salaries, is at a peak
$720,000 a month. In 1940,
more
likely.
perfect labor pol¬
icy depressions could occur.
have usually been caused by
things than labor policies.
have sometimes; 1 believe,
it
of
depressions
even
that
The payroll for the 2,230 House
employes alone, excluding Con¬
pol¬
a
are
$52,000,000,
at
chance
good
that will prevent depressions, al¬
sales, but npt profits, and there¬
Would discourage
of
.
as
A survey
regrettable ne¬
There is ho labor policy
cessity.
vious method and would increase
fore
not
but .because
pre¬
equitable
more
That is
icy.
This
prices.
than the
even
go
accounts,
NANA
the
mated
sound
will
cost
the cost of running Congress
Depressions
(2) The benefits could immedi¬
ately be passed on to the public
the
published in the "Times," we also
quote the following:
re¬
.
and
appropriations cletks pre¬
that
dict
So far my argument has been
instead;
discourage mainly negative— warning against
mistaken policies rather than a
to
than
more
figure
a
higher by the time all figures are
in next week."
* "■
laborers
further innovations.
reaching
Veteran
feolicy That Prevents
Nd Labor
of
some
in
observing that "the cost of oper¬
from
cause
(NANA)
ating the United States Congress
strictions.
innovating businessmen
increasing their profits by
hiring more labor, and would
Al¬
Newspaper
Americah
North
liance
always, like the best market price,
one that equalizes supply and de¬
mand
;
doUbie that of before the War,
there
essing
increasing sales of the
industry that had made the im¬
vent
increased
for
ployer.
higher wages. But this
prevent a price reduction
would
of
to
comes
of
therefore
test
demand
bound
(1) The benefits of increased
productivity could all be prompt¬
ly distributed to laborers in the
effect
The best prac¬
ih its effects.
tical
the
distribution:
and
raise
faster than the rate of output per
manhoUr is
definitely inflation¬
,
As industry
form
to
rates, if their own productiVity permits.
Arty attempt to raise wage rates
very important purpose and must
not be discriminated against, j
would
industries
their
individuals' savings and fcorporatiohs'
retained
profits servri a
itial
other
some
May 15, 194?
Thursday,
»
this category, although the
that
told
too
are
The
on
Vet-;
Administration
erans
the
•
its
might; be
operational hosts
high.
same
*
is
true
of
interest
public debt, which is, the
third largest budget, outlay. Al¬
though this will run to an. esti¬
mated
an
$5*000,000,000r hexi yphr,
of $50,000,000
oyer
increase
this
interest', rates, y aye
there is. almostno
chance to reduce cari-yinM costs'.
Therefore, if Congress' still
fixed
year,
and
,
wants
to
make
good 1 onu its
Foreign
Liquidation
promise of tapering the 'budget
announced
o n
by $5,000,000,000, it may have to
May 12:"
' "l.'
do more than just ''talk" prices
This increases- to $25,000,000 the
down. It may have to use a lit¬
total * surplus
than labor policy, and therefore
property
credits
tle force—starting on itself;
1
outside of the scope of this paper. granted that country by OFLC.
It
was
also observed
in th6
The agreement fixes the inter¬
The
increased
productivity
which can be beneficially passed est rate at 2%% and provides re¬ NANA observations that the "big
on in higher wage rates is hot the
payment of the principal shall be three" in the Administration's
increase in a particular plant' or made ih 25 equal annual install¬ budget are national defense, bylar the major budget outlay,, vet¬
industry, but the increase in- the ments starting July 1* 1952. Pro¬
erans' programs, and interest on
economy as a whole. A plant or visions also were made for ; the
the public .debt. These three eorriindustry enjoying a greater in¬ United States to receive On de¬
crease in productivity
than the mand, local 'currency for use in bined, it stated, represented tw6national
average
will - naturally paying U;; S. Government ex¬ thirds of next year's $37,500,000,C00 budget. :
''
employ more workers and in that penses in Finland.
Commissioner,
[Volume
165
Number
THE COMMERCIAL & FINANCIAL CHRONICLE
4594
(2651)
|
...
Plant and Equipment
*
Expenditures
American business, 'exclusive of eqiiipment expenditures for the
agriculture:;' « expects t o soehd fourth quarter of 1*946 and antici¬
about $13.9 billion
during 1947 for pated expenditures for the first
the construction of new
plant and and seebnd quarters of 1947, as
the purchase of new
equipment*., well as for the full year, All fig¬
according to the quarterly survey ures presented in this release are
made public
Jointly on April 24 estimates for the whole of Ameri¬
by the Securities and
Exchange
Commission and the Department
industry based on the
data.
'
'
•
can
■
sample
.
.
of Commerce.
This may be com¬
pared with expenditures of $12.0
billion in 1946 and
$6.6 billion in
1945.: This survey also 'shows
that
business anticipates
spending $3.6
billion
on
plant add equip¬
the second quarter,
new
ment. during
of
1947, approximately $100 mil¬
lion; higher than the expenditures
planned for the first quarter, al¬
though almost $200 million lower
than
the
record
expenditures
the last quarter of 1946.
report added:
in
The SEC
:'
V
w*nle there has been
since Dec. 13, 1941—six days after
Pearl Harbor—was a contract unit,
increase
first half of 1947 and the last half
of
1946,
If the anticipated ex¬
penditures for this year eventu¬
ate, they will be 15% above ex¬
penditures last year. They would
be about 70% above the
amounts
expended in 1941 and more than
1
•
'
that
-
-
labor
j
Readjustment Without
pounds
ribber
May 1 ranged between
21.00c. and 21.45c.—Ed.]
change
on
danger
price itself
also
may
out of the market.
For -example*
if the wages of
people who make
rapidly than
readjustments the wages of people who buy
of this kind
have-usually led to them, there will soon be unem¬
depression and serious Unemploy¬ ployment in the motor car indus¬
ment,- but this has not always try.
,
....
v
Depression
r
-
Major
*
motor
;
true
and
The
need
not
greatest
be
true
business
re¬
The business man's contribution
to
rise
cars
The
ness
its
government's part in busi¬
readjustment lies chiefly in
| control
prices of
and
by
readjustment lies in
the! reduction -of prices, but his
control over- prices is limited by
his costs,
He does not have a free
choice between higher wages and
lower
prices.
The pattern of
the
obtained
can
by government
trol of demand.
-
com¬
Price
re¬
best
con¬
reducing
government
ex¬
ended
govern¬
restoration of the free market.
In
the absence from the city of E. L.
50% higher than in
1929, the two
cannot
More
than
that
But if he fails
do.
to
he
do
that much—as many business men
obviously have failed—he endan¬
not only the national pros¬
perity but his own long term po¬
gers
sition in. the market.
can't
get
su~
answer
is that the govern¬
ment
employees have come to
they have a vested right
m these jobs, and the rest of us
accept their claim.
,
consider
Jbe fact is they are very choice
jobs, Thf pay is much better than
in the
system than is to be found in in¬
I
dustry.
heard,
have
the
over
years, a lot about the poor over¬
worked
government.
employee,
One
of
_•
•
their
greatest rackets
abodt
which
Congress
seems
about to do something is that of
,
penses,
reducing
chases of scarce
discouraging
cept
to
foreign
and by
increases ex¬
wage
correct
pur¬
items,
inequities,
the
wages
minimum.
Congress
monopoly of importing and
buying as of April 1.
Littie
ceremony
marked
the
he
immediate
.'
but I have never seen one.
.
,
By maintaining high thx. rates
,
oefore
The
if
bis
.
but are
is set either by the unions, government can do much to pre¬
or by government, or by the
pre¬
vent- further price increases and
The
Exchange in its advices vailing rates in his area.
If his to induce price cuts.
May 1 said the government's sell¬ profits exceed the amount re¬
Even in government,
however,
ing price since last January has quired. to " maintain a
growing the
process of control should be
been 25% cents per pound, New
business, he can cut prices until selective.
Curbs on exports and
York delivery, on a part of stocks
profits
stand at the necessary
imports may nullify efforts to
acquired for re-sale to industry
ment
fired
With
pendr?
are
ductions for these items
and
be
man
many
clothing,
petitive market prices.
painless
proven
general labor market. They
items, such as food get an annual Vacation of 30 days
not influenced they have 30 days for sick leave.'
decisions
of
individual they have a far better retirement
over-
business executives
be
The
demand. ;
Why must It be
that they are Communists before
they Can ibe" fired? Why 'shouldn't
a
more
business
.
of 10 long tons, or 22,400
pations indicate a leveling off of
expenditures during 1947 with es¬
timated outlays in the last
half
amounting to $6.9 billion com¬
pared with $7.0 billion in both the
eminent.
their
against
even
ot0T.rthe Washington col-
further
.
Comm. Ex.
a
reached in the fourth
quarter of 1946.
Business antici¬
* (Continued from first page)"
business, labor, and gov-,
There is the
secrets,
mumsts..
I■. i-».
i
adjustment ever to occur in this
country took place in the months
Crude rubber futures trading, in
following V-J Day with no sig¬
suspension throughout the war, nificant rise in
..unemployment.
was resumed on May 1 on Com¬
Can we go through the present
modity Exchange, Inc. The initial crisis
as
smoothly as we did
trade, first free market futures through reconversion—if
so, how
transaction
in
the: commodity can it be done?
steady of
plantation
H e ve a
in expenditures on new
smoked sheet rubber for Septem¬
plant and equipment since the be¬
ber.
[The September delivery for
ginning^ of 1945, the peak seems1 rubber on the Commodity j Ex¬
to have been
v
Y.ifv
action o?
been
on
Prosperity
'
now.
Trading
fice
We Can Maintain
■
stimulate mutually profitable for¬
eign trade.
high
as to
pansion.
Taxes must not be
so
discourage business ex¬
Government ordinarily
should not interfere in the peace¬
ful settlement of wage disputes by
free
accumulated
annual
Appropriations'
The
leave.
committees,
-
in
their efforts to prune the budget
nave
found
that in ordering a
bureau to lay
ers, i
off so many work¬
additional
appropria¬
that
tions had to be made in order that
they could be paid their accumu- '
lated' leave,
In some instances
running as high as six months. It
even cost- money to cut down on
the force. Undoubtedly there will ■
be all sorts of claims for
nal"'pay
"termi¬
the part of the Com¬
munists because they have been
loath to lay off a single day.
on
collective
bargaining.
Each
Trta^er of appropriations
McKendrew, President; Herbert E.
Please bear in mind that this
prewar highs.
Adjusting for the
of these actions will be dominated
the Republican budget cutters are
(substantial price increases, how¬ Meyer, Vice-President of the Ex¬ selective adjustment of prices to
by other considerations than the finding the going rougher than
change, in charge of the rubber, costs and profits is very different
ever, expenditures in 1947 would
primary need to control prices. In they had anticipated, largely be¬
probably be slightly under those group, mounted the rostrum on from a general cut in all prices.
government, as in business and cause of the shortness of time
the trading floor at 10 o'clock this
in
1946, although higher than in
Any general cut in prices, or even labor, a Wise discretion in par¬
morning (May 1) and officially the expectation -of a
general cut, ticular cases is far more valuable they had in which to study the
,1941 or 1929.
reopened the rubber trading ring. eari reduce the volume of
sprawling bureaucracy.
'
pur¬ than a
Planned expenditures by manu¬
broad policy applied across
"With
the
resumption of the chases and
Chairman Taber of House Ap¬
set
in
motion
the
facturing companies for 1947 are free flow of crude rubber into the
the board.
propriations, brought in a crew
spiral of unemployment, • shrink¬
estimated at $6.2 billion, not
quite United
Summary
States,
this
Exchange," ing payrolls, and widespread de¬
of Outstanding accountants to go
half the total
for all
industry. said Mr. Meyer, "can Once again
j
In
brief, business executives behind the budget figures, - but
The ideal price policy
Manufacturing companies antici¬ function as one of the great world pression.
is to cut where you can, and raise alone cannot prevent the occurr they got a late startand have
pate a gradual decline in expendi¬
markets in this commodity and we
where you must.
No other policy rence of depressions, and we are necessarily had to work in haste.
tures during 1947.
They expect to look forward to renewing this
is justified by the standards of therefore
likely to have
them It will take legislation to straight¬
spend $3.0 billion in the last half
service to the trade and to the
whenever
the
balance
between en j out many
things, eliminate
public welfare or private profit. t
of 1947 compared to
$3.2 billion public at large."
*
and
the like.
But
The problem of labor'k control prices and wages is temporarily duolications
in the first half of this
year and
A large number of guests and
lost.
the
over wages is similar to the prob¬
However, we can reduce the
groundwork has been laid
$3.4 billion in the last half of
friends of the Exchange attended lem of price control.
and what is left unfinished this
A general painful • effects of the readjust¬
,1946.
Railroads and electric and
the reopening, including officials pattern of
wage
increases falls ment to a minimum if business, year, should be cleaned up next
gas utilities, on the other
hand, or
representatives from most of with unequal force on various in¬ labor and government take con¬ year. - .
expect
continued
.
increases
their capital
in
the other futures exchanges of the
outlays during 1947.
city.
Commercial and most miscellane¬
ous. companies
anticipate small
Rubber is the second basic
during 1947 while min¬
ing companies expect to spend at
same
on
tures resumed Nov.
Formed
is
panies.
anticipated by the
During the fourth
ter of
1946 the
expended
new
on
plant
than
roads
made
and
rail¬
Commodity
Exchange
in
traded in futures of
ing
there
to,
an
Ex¬
and
gas
utilities
tures Were
planned.
(
whose
larger than
: V
7%
The above analysis is based
is
the
government,
to
the project of
We must pay
$25,000,000 for the
privilege of getting rid of them.
Truman
against
issued
them
several
would
cleaned
retired First
Vice-President of the FederalRe-
just as
check¬
ing them abroad.
departments
w. H. Hurt
William. H..Hutt,
on
of
and you would think
expendi¬
had been
this deli¬
(Continued from first page)
out
forward
recover
balance.
Washington Ahead of the News
still-suspended -commodities
change spokesman said.
-•
•
A previous reference to the re¬
smaller outlays than had been an¬
ticipated
This
was
more
than sumption of crude rubber trading
offset by commercial and miscel¬ on May 1 appeared in our issue
laneous
companies and electric of May 1, page 2402.
approximately
From
before the end of this year is be¬
looked
certed action to
cate
Speaking for busi¬
ness in particular, wiser planning
of production can partially equal¬
ise seasonal and cyclical changes
prices constant.
But an industry in employment and do much to
where wages are 50% of all costs stabilize
prices. 1 The situation
often must pass a wage increase, calls for leadership,
moderation,
and compromise—and close atten¬
along to the consumer in the form
tion to individual cases.
of increased prices.
Restoration of trading in some of
these
planned.
Manufacturing, mining
1933,
dustries and produces some new
maladjustments in- prices.
Indus¬
tries, having a wage bill of 15%
of total -costs may be able to deal
generously, with labor, yet hold
copper, lead, zinc, tin, silver and
raw silk besides rubber and hides.
and
was
con¬
mar¬
prewar years
com¬
quar¬
industry
through
kets,
aggregate amount
equipment
b y
slightly
higher
in
Hide fu¬
19, 1946.
solidation of four individual
possible from the survey
compare
actual expenditures
with those that had been
previ¬
to
ously
resume futures trading
Commodity Exchange follow¬
ing wartime suspension.
rate as in the last
half of 1946.
It
raw
material to
declines
about the
f
out
hot the
case:
by
now.
his
decree
weeks
ago
the infested
have
been
But that is
The time has been
poohing the Commy charges, in¬
sisting that stories of their infil¬
tration into the government were
exaggerated. Whatever is the sit¬
uation, it is well known by the
FBI. Why they can't just move in
now and give the toe to the ter¬
mites
is
difficult
to
understand.
But no, there must
priation
FBI
and
of
be an appro¬
$25,000,000 and the
Civil
Service
plan* to
As things stand,
the House in¬
stead of -lopping $6.5 billion from
Truman's budget, will come closer
billion.
The
reduction
of $4.5 billion.
The fihal reduction* at is believed, will be around
$4 billion.
•
1
•
to
lopping
Senate set
off
as
$4
its goal a
;
Earlier
House
hopes had
$750 million from the
The total cut for the two
will now be about $1.2 billion, in¬
cluding the Army's engineering
projects. '•>
•
.
$600
or
Navy.
Agriculture,
as
sacrosanct,
some
•
*
be
to
$375 million
estimates.
looked
long
is
budget
under
'
-
upon
curtailed
"
Daylight Saving Time in
Washington D. C.
.
Daylight saving time became ef¬
fective at. 2a 4n.
on
Sunday, May
consumed
by
statisticians
and take on some 3,000 more workers
Bank of Philadelphia, died budgeteers
11, in Washington, D. C., in accord¬
1 1
in determining how to do the job."
ance with action on May 7 by the
May 5. He was 72 years of age. much money it would take. - Also;
The point is made that the gov¬
groups. The basic data for. this re¬
District of Columbia Commission¬
In the Philadelphia ; "Inquirerll of -a lot of time has been consumed.
ernment must rhbye very slowly
lease were derived -from
reports May ;7, it was
ers ordering the moving ahead one
in' a .squabble between the Civil and
Submitted byY most corporations
orderly and judiciously for hour
of the hands of the clocks.
: v
Mr. V Hutt,; whose
affiliation: Service Commission and the FBI fear some fellow might be mis¬
.registered with the Commission
Associated Press Washington ad¬
with the Federal Reserve Bank: as to which should get the job of treated. A
and. from a large sample of un¬
careful, study must be
'began1 with his election : as one doing it.( At this iate date it has made, for example, to determine vices, May 8, said:.
registered manufacturing compa¬
The
action
came
after an
of its DeputyGovernbrs ih-June; been decided they will split the
whether
gome
fellow who
has
nies, I unincorporated as well, as
opinionTsampling. hearing for
1618, retired in May,' 1636.1'Just work and the appropriation, if it acted like -a Commy, who has
residentsi,of the metropolitan ,
I before -that, he had served for a Is approved by Congress.1
^
;
<
been an agitator, a troublemaker,
area. Congress recently, em pow¬
-short time as acting head Of the
ppfou wonder how the statisti¬ is, in fact, a Commy. I suppose
collected, during the first ;quarter /
ered
the
Commissioners,
the
bank, following the retirement
cians arid budgeteers arrived at there will be lengthy hearings on
of id47,. included actual plant and
I
Governing Board of the District,
iT>«.-of -George• Wl Norrds.
.LJ.'v,'' Vv"•' '
.*Vr'
the figure <of $25,000,900.
They a matter of this kind; experts,
t0. order "fast time,", but re¬
::?.'i <! v-i*.' & Y'Y <' ■ V' ^ p Y He was Treasurer of the
Uni^ ihrist have had to -make a tenta¬ maybe, will he called in with
quired that .a hearing be held to
\^• "Of* this total approximately
versity of Pennsyi\mnia.; frorh tive-study, so to speak, of who their microscopic lens to examine
determine sentiment.
.
$12.2 billion will be spent by -cor¬
1808 to 1818 and a meiiaber of
wajs/'a Commy and how many the roots of the hair. Of cobrse,
porations, the -remainder. by uni*M Li tbe: beard 6f managers ^ Grad¬ Cohimies iri
; In the New York "Times" of
government, all told, this fellow, whether a card hold¬
corpora ted business..
In -addition
May 8, it was stated that:
uate Hospital front 1920 to 1839, there are.
Say there are1 10,000, er or not, should be fired on the
to the $13.9 billion on new plant
"Daylight time" ended in the
'during the; last seven years :of the bill for getting fid of them simple grounds that he has been
and
District when Congress repealed
equipment, v: it. is 'estimated
which he served -as the board's corbes to $2,500 a head.
an
agitator and
troublemaker.
•
that American business will
the
wartime ' daylight
saving
Spend
^President. He was amemberof :; It's a fuhny thing that tor some Why, for example, should not the
another v $600 million on ; old or
law. The District had it in 1945
-the University's board of nvedi-^ 14 Vears; the heads uf the govern-: youngsters be kicked out forth¬
used plant and equipment. -; v*.
cal affairs from 1933 to T939. " hient departments' have been poo- with who have been leaking of¬
estimates of
ment,
new
plant and equip¬
expenditures..by
industry
serve
on
.
-•
-
'
been
that around $1.2 billion could be
eliminated from the Army bi.lL
.
.
-
.
•
THE COMMERCIAL & FINANCIAL CHRONICLE
(2652).
exuberance
Foundation for Industrial
has
(Continued from first page)
farm to be operated as an income-
producing
business,
is ; simply
jumping from the fat into the fire.
For the commercial farm of today
is also
vassal to the city.
a
The evidence of its bondage lies
in the many things that must be
purchased
to
the
operate
farm.
Machinery,
fertilizers, pesticides
; and petroleum, to mention but a
few, are all products of non-farm
industry.
Farm-family living as
well as farm operating supplies
are purchased from the city.
In
order to
buy, the farmer first
He has built his
must sell.
mercial
the
farming
operations
division
same
of
com¬
upon
labor
and
exchange of goods that character¬
izes urban life.
Thus the city and
the farm
each
but handmaidens to
are
Neither
other.
is
master.
They are interdependent, not in¬
dependent.
They can only rise
together,
In the changing and progressive
pattern of American life this in¬
terdependence is increasing.
To
ahead
look
trend.:
people
tial
For
it, as one of the
on
essen¬
which our social
order rests.
Twenty-six million
persons
now make their homes
and their living on the six million
legs
upon
The land is in their
U. S. farms.
much of
and
yet unknown,
are
lately
what the scientists have so
learned is not yet a
part of every¬
Moreover, through most of our
used re¬
national history we have
with
sources
hard
to
lavishness
a
Until
justify.
now
about
a
generation ago we were concerned
mainly with getting resources in¬
to use.
We farmed, forested, and
mined in a reckless manner.
But
and
of
consciousness
a
social phenomena
are
that do not go
resource
Only re¬
passed from one
together.
cently have we
materials.
raw
These
J
sured
only from an
plant maintained in
of productivity.
be
can
as¬
agricultural
high state
a
Agriculturally speaking, "land"
means primarily soil.
The state¬
ment is a simplification but it will
,
do for our purpose/ Though soil
has its origin in the decomposition
of the earth's crust* it is far more
complex
than
rock.
can
just decomposed
hardly be called a
living body, yet surely it is not
It
inert.
the
In
natural
things it stands
between
is
life
and
essential
as
plants
are
cious
of
soil' is
all
the
with
resources
to
plant
to animal life.
the
reason
order
the
vast
even
will
Historians
which
the
one
cultural
eats
ever
non-agri¬
the soil be¬
our
resources,
vital still.
more
took
sion,
begin to wonder
not approaching simi¬
if
were
we
lar
problems
resource
have
as
in the future—and
we
minimum
none.
being
as
conservation
we
think of
spend millions to accomplish that
But honest reporting forces
goal.
the
that
comment
if
understand
to
tions
S.
U.
of
seems
as
today, it
look
farming
that
necessary
we
briefly at historical facts. At the
beginning of our national history
were almost exclusively a na¬
tion
of
farmers.
Agricultural
methods were dismally primitive
having progressed in no manner
we
beyond, and in some ways being
less advanced, than the agricul¬
ture
Ancient
of
Rome.
had to be
everyone
each
worker
Nearly
farmer be¬
a
the
on
land
produced so little that he would
provide food and fiber for scarely
than his own
As late
of
dependents.'
1830, the production
as
of
modifies
the
environment
/which it developed.
the
soil
he
must
In his
with
knowledge and
destroy very quickly
can
use
some
de¬
sirable and indeed necessary qual¬
ities
that took
ages
to create.
Proper
soil maintenance is
^
not
compatible with exploitive farm¬
ing.
Erosion can be a destroyer,
a
decline in the vital
tent
ity
can
can
organic
con¬
quickly occur, and fertil¬
be dissipated by a loss of
nutrients and the development of
undesirable
structural
changes.
Each of these depleting influences
has taken place in greater or less
degree on (J. S. farm lands—and
have reduced crop yields below
the potential of the so-recent vir¬
gin land.
The
Soil
Conservation
Service
improving
his
pro¬
productivity
could
be
re¬
farming to engage in
production, and still
supply
proportion
U. S. labor force
that
was
in agriculture declined
2% per decade: and at that date
two-thirds of the gainfully em¬
engaged
ployed
workers
clined at
of
the
6% per
of the U„ S. labor force
workers.
lies
ence
in
their tools.
their
differ¬
methods
and
The 1830 farmer used
team
ox
The
on
a
wooden
plow, a
for harvesting, and
threshing.
Primitive
though it was, that's what U. S.
farming was like 100 years ago.
Nothing short of the word, revo¬
grain-cradle
a
flail
for
has
hap¬
production
since that time.
If
we
had
to
to
mark
select
the
a
begin¬
nings of mechanics and science in
application to farming it might
now
one-sixth.
not mean
number
the first time
farm
of
in
a
decrease
farmers
our
population
did
country
And it
(al¬
history, the
sig¬
highly
respon¬
be economically justified
they be materially improved.
can
Many farms that
large families and
even
good buildings now stand in d.isrepair and support much smaller
families in relative poverty. Some¬
land
the
abused
was
exhaustion.
cause
ity
inferior
too
the
to
More
derlying
that
is
reason
fertile
point of
the
often
un¬
is natural soil qual¬
to
be
combined
successfully with modern machin¬
ery, crops, and livestock.
Every improvement in farming
methods
Works
take
the
of
farmer
technical
disadvan-
who
Almost without
it.
use
the
to
cannot
that is
already best.
the land
They do the
that is poorest.
Agricultural fertilizers, for ex¬
ample, give the greatest yield re¬
sponse
on
soils that lack abso¬
lutely nothing but the chemicals
added.
It used
on
of
the
flocking to the cities
means further, and more
significantly, that each worker on
soils that have
yield increase is less, the income
increase is less, and if carried far
enough on soil that is poor enough
the farmer
go broke just from
this .modern aid to
successful farming.
trying to
can
use
providing farm prod¬
ucts for an .increasing number of
An improved seed-stock that will
non-farmers.
Assisted
by
the
ever-developing science of pro¬ add 20% to crop yield adds 15
duction and by the machines and bushels on 75-bushel land and five
supplies furnished by industry, bushels on 25-bushel land. A cow
only 18% of the nation's produc¬ with a capacity to produce 15,000
tive effort is now used directly bounds of milk a year can be used
on the land.
Other workers have at her full potential on a farm
been spared from farming to proc-( that produces adequate amounts
ess, store, refrigerate, and trans¬ of the proper feeds. But her pro¬
was
port food. As a result our diet is
limited
by neither climate nor
Our
season.
clothing, made off the
still largely from farm
requires some more of
our productive effort.
But beyond
these essentials, a half of our ca¬
pacity to produce can be devoted
to other things—to the thousand
but
farm
products,
duction
relative
to
cost
can
be
prohibitive on land that produces
only inferior feed. Or again, it
costs no more to operate equip¬
ment
high-yielding acre
than over a poor one, but there
is more net return after paying
the costs. The problem is one of
basic economics: high-quality fac¬
tors of production cannot be fully
over
a
and one other goods and services
which add up to be our cherished
utilized when combined with ether
American standard of living. Thus
factors
agricultural progress has made the
Industrial Age possible.
quently the spread of net income
conditions
If
permitted
us
to
right there our whole dis¬
cussion of land would be immeas¬
stop
urably
we
simplified. Unfortunately
stop "jhere. The very
cannot
fact of historical progress has cre¬
ated problems of major propor¬
tions.
of
between
The
Farms of the Nation
Census
million
not
U.
Bureau
S.
farms.
all alike.
reports
they
But
When they
are
classified by the amount of their
better
soils
Conse¬
and
poorer
truth is this: the
mere
fact
If
there
families
were
willing to farm as Grandfather
farmed, taking in little money
but spending little, eating what
the farm produced, lighting the
home with candles, and traveling
with
a
farm-raised
horse, the
live that way—nor would you
sufficiently productive land, and
are
sufficiently well equipped and
managed, to operate as successful
I.
number)
5%
are a
gopd
of
the
.Among this
many
are
part-time farms,
not
of
using
Thus with
less-pro-
some
willing
living better, an attempt is made
to farm by modern methods, The
cash costs for today's equipment
and fanning supplies are much
commercial.
when all costs cannot
Somewhere
be covered.
between
and lower extremes
the
upper
in soil qual¬
point where either the
well be the decade from 1830 to But included also are a vast num¬
farm capital or a good living for
1840.
In that 10 years Cyrus Mc- ber of poor farms and too-small
the family cannot be maintained.
Cormick
of
Virginia developed farms that the march of agricul¬ Below that point the soils are
his reaper; John Deere of Illinois
made the world's first steel plow.
These inventions
vance
of
were
merely ad¬
scouts of the endless ranks
new
farm
machinery
which
have followed since.
In that
decade,
of
von
Liebig
same
Germany
tural
left
progress
behind.
has
gone
on
and
ity
is
a
abused
and
deteriorate, the farm
They constitute a
problem group—creating, in truth,
some agricultural
slums in which
living conditions are distressingly
buildings,
equipment, livestock,
and the family itself follow suit.
This marginal point is variable.
low.
higher up the range of soil qual¬
ity,
In
boom times it moves
downward. At all times it varies
.
Agricultural
has not
established for the first time the treated all farms alike, and has
true
relationship between soils been jn fact definitely harmful to
and plants, thus setting the stage some farms and some
farming re¬
for the development of soil sci¬
gions. The difference lies mainly
ence.
And two Other German sci¬ in the soils.
Soils vary in many
entists, by discovering that all liv¬ ways and in infinite degree. Their
ing matter is composed of cells, natural fertility ranges from the
progress
^
In
depression
times
it
moves
from
family to family, depending
upon
the degree to which, as in¬
dividuals, they place expenditures
for
at lower social
and
slightly more intensive
a
operation of
better lands.
our
The real tragedy
is
areas
could
it does produce
of the poor soil
the people-
of
erosion
Agricultural science is not help¬
ing them. Public expenditures to
conserve their land for continued
farming might be interpreted as
merely prolonging the day of ad¬
justment. It is of course danger¬
ous to be dogmatic, or to fail to
recognize both that the term "poor
soil" is a relative thing and that
individual
family situations vary.
Certainly public assistance could
adjust some poverty-ridden farms
to
moderate
a
For
it
families
some
be the desirable thing to
may
do.
of success.
measure
farms and
some
But the real
opportunity for
of these people would seem
many
to be elsewhere than
they
lic
would
on
the land
What the pub¬
now occupy.
to
seem
them
owe
is
primarily educational and health
service.
will
It
the
be
younger
They
generation who will move.
need
to
alternative
of
know
op¬
living;
they need also to have the
education
and health
qualifica¬
portunities
making
for
a
And
tions to make them useful
citizensf
in productive employment.
That
some
would
acreage
be
lost in the process is of
little con¬
is land submar¬
If it
sequence.
ginal for farming it is a doubtful
until shifted to some
asset anyway
less intensive
But
use.
land!
soils
h^ve been less dissipated than the
enough
the
of
poor
Let's turn to the good. These
types.
trated
into
They
the
the
But here
But
sources.
is
often
in
the
non-commer¬
or
which
on
the
from outside
too-small farm, if
comes
a
family's
a
small
all
small
Many are
Certainly
not
problems.
homesteads
we run
the
of
are
family living
it
seg¬
problem
part-time farms
cial
pro¬
are
agriculture is concen¬
them.
on
more
prosperous
sole support, is
position as a
same
The struggle to cover
costs and farm main¬
may be a losing battle,
with soil depletion as the inevita¬
farm.
poor
both living
tenance
ble result.
the objective of
farm
residential farms, and retirement
homesteads on which operating
intentions
problem
higher than in Grandfather's time.
The money must 'come in- or it
number can't be paid out. Trouble comes
total
cqst, by
farm lands into misuse and deteri¬
or
than
replaced,
farms
to
total
What
be
farm.
Not many persons are now
(one-third of
that aggregate
tle.
nationally rising standard of
living is throwing a part of our
These farms have
At the other extreme
base, this fact is not serious.
A
considerable acreage (probably 20
to 25% of our present farm land)
is involved.
But it produces lit¬
our
rtuctrve land would be minimized.
2 million farms
destructive
submarginal lands remain in use.
Speaking solely from the view¬
point of the national agricultural
ment of
of a
quality scale. We
exploitive
and soilfarming as long as
have
and
duce about 90% of the commercial
businesses.
lower end of the
will
ductive
farm products.,
are
steel mills, low-cost
high-cost
producers.
The
price of farm products can
never
be high enough to assure
the maintenance of soils at the
among
poor
production, it is found that 2.5
(40% of all farms) pro¬
million
always have a "land
problem." We have among farms,
will
march.
The
indicates
tural science progresses,
we
widening as a virile
agricultural science continues its
soils, keeps
oration.
The
low. quality.
this mar¬
exists, and that it
move upward as agricul¬
point
tends to
advance¬
ments contribute most to the land
least for
But*the very fact that
exception,
scientific
and
,
market
supported
produced
once
Land
a
and
the income with which to put up
times
"
ginal
as
can
limiting conditions of drainage or
texture
or
other handicaps, the
mostly that
was
the land
ductivity.
decline
nificantly).
It means
the
population
growth
production.
specific
real
was
It
though during the recent war, for
less
Changes After 1830
period
one-quarter.
the
in agricultural
farm
were
By 1920 the figure
does
the
in
are
four hours.
or
a
nearly constant rate of
decade. In 1875, only half
three
of
proceed
care or he
his
else
someone
of the
6
in
then
As
other lines of
wheat
the forest
he
With
be assured of his essential
of food. Up to 1850 the
yielding 20
bushels required 50 hours of labor.
Our farmers can now accomplish
the same production in as little as
acre
an
pened
virgin.
When he clears
or plows down the
grass
the
well the condi¬
lution/ describes what
it
is
that
goal it will not be attained in full.
To explain that statement, and
and
calls
a
On soil
willing to
are
farmer
state
rose
at
us
The
that
came
more.
This
No doubt it was the Great Depres¬
with its natural environment.
finds it in
techniques
slowly into use.
techniques each farmer could
duce
high state of pro¬
Others are naturally
Have
Problem
a
sive to proper care and intelligent
management. Still others are in¬
fertile and for no expense that
rapidly in this country,
nevertheless, than in the rest of
world.
^ighly fertile and .easily
less fertile but are
more
the
are
maintained in
Will Always
compost pile to
pavement. The
a
the very forefront
science and
farming
But
stands
time to change.
some
sion that made
an
Soil
formation
takes
place
slowly, progressing more defi¬
nitely by geologic than by calen¬
dar time. Over many hundreds of
years it
comes into
equilibrium
of
a
nroerress.
on
new
the
that
They are right.
But the
average thinking of the public,
conditioned to a history of expan¬
coun¬
It is
a
machine
heavily into
comes
varied
and
continuing,
increasing yield. And as
an
more
pre¬
The
to
ago.
cause
For this
stood
agricultural
50 years
argue
to exist
ceased
frontier
more
produce
industrial
our
as
that when properly man¬
will
aged
life
most
try has been endowed.
resource
of
the single link
lifelessness.
It
as
of
down
other.
to the
Their problems of pro¬ plagued older societies and more
ducing personal security and a crowded countries. General pub¬
concern
over
conservation,
satisfying life are the problems lic
such as has developed within the
of
establishing
a
permanent,
stable, and prosperous agriculture. last decade or so, is potent evi¬
That
can
exist
only within a dence that the country is now
coming-of-age.
We want a mini¬
framework of national prosperity.
As for the 116 millions of citizens mum of destructive exploitation
tinuing supply of food and in an
increasing supply
of industrial
since
country
were
still on farms.
Since 1850,
expansion was the object, of the
times.
The essential point is this: #e percentage of the labor force
an
expanding pioneer economy engaged in agriculture has de¬
custody;
who live off the farm, their vital
stake in agriculture is in a con¬
the
of
sterility of
best
beyond measure to
biological science that has
leased from
day farm practice.
is
merely to project
this reason my
purpose on the Forum shall be to
discuss the land, together with the
the
damaged. The fact is not surpris¬
ing.
In the first place, soil sci¬
ence
is a very recent develop
ment.
Many secrets of the soil
Society
contributed
seriously
been
has
much
that
conservation
fall separately.
or
pointed out that more than
50 milliorij acres of our farmlands
have
been
essentially destroyed
for tillage,
and that four times
the
Thursday, May 15, 1947
living above expenditures for
maintaining the farm.
"Little
No
The
farm and
is cherished
idea
Security
Farm" for
"little
security'*
large seg¬
ment of the American public. But
it just isn't so, except for a few
very intensive types of farming;
or where it
is primarily a home
that is wanted.
Many once-ade¬
by
a
farms
(in horse
power
too small to be success¬
up-to-date equipment.
I don't mean that all farms should
quate
days)
ful
are
with
be
"big-business"
neither
It's
should
nor
units.1
ever
They
will be.
just that the average family
farm
now
needs
more
acres
than
formerly if it is to provide for
both good living and good main¬
tenance.
are making the ad¬
That is the explanation
of the increasing average size of
farm as reported by the Census.
Fewer tarms of larger size mean
another
problem
of
displaced
Many farms
justment.
farmers.
the
But to
too-small
the
farm
degree that
unit is ab-
Igolume 165
Number 4594
CTHE COMMERCIAL1 & FINANCIAL CHRONICLE
Lm
sorbed,
the
trend
farm
well
promises
Expenditures for soil research,
use
adjustments, and for
soil conservation should
certainly
fee directed toward our more
More
important
ductive lands.
It is essential to
the public interest that we
deter¬
mine the marginal
rate in
ity (both present and
prospective),
about
high bnxn rate
last
point of qual¬
concentrate
on
of
use
one
recent
in
Farm experts
over
the
at
years
our
history.
majority of
overwhelming
are
more
An
more
farms
who
cities and went
Their expec¬
of
Face
Surely the present generation
-American
consumers will
face
of
no
^shortage of food. Nor can I be¬
lieve that future
generations will
Tare
worse.
Given
reasonable
^prosperity for agriculture the
ture of
our
.Farming, is
wvlth
soils is
fairly assured.
long-time business
a
slow turnover.
a
anercial
farmers
when their
^soils
fu¬
Most
com-
maintain
their
economic
posi¬
tion permits, because on
no other
fbasis could they continue
level of soil
ing
to
More and
the
more
productivity is
com¬
be
recognized
in
land
^values.
Therefore it is less prof¬
itable and less common
than for¬
merly to skin a farm and then
:sell
out.
.^assure
About
all
continued
we
need
bumper
From U. S. farms is sun
and
their proper
seasons
In
to
crops
rain
and
a
■prosperous nation.
left
number
the
of
was
increasingly
a
commercial.
higher
pro¬
Need
of Adequate
national
They
lay themselves off when
prices drop.
Taxes, interest, in¬
surance, and other overhead
go on
xegardless of market
conditions.
As prices
drop the farmer may
-dispense with some hired
and
defer
and soil
ihis
help
building,
maintenance.
equipmer/t,
But he and
family struggle on,
producing
as they can while
a big¬
and bigger proportion of
their
ger
production goes to
cover
their
un¬
avoidable costs and
they have less
and less to live on.
Trend Toward
Specialization
of
Further,' the one-time
stability
widely diversified farming has
Ibeen lost in the
trend toward spe¬
cialization; i Specialization
is dic¬
tated by
competition, but it in¬
creases: - the
vulnerability to de¬
pression;
*
>
•
«
Agriculture's positive needs for
national
prosperity are sufficient¬
ly important to be given
special
attention.!
First:
chronically
and
only
fords
a
farming
is
a
industry
overcrowded
general
solution.
prosperity af¬
The long-con¬
tinued: decline' in the
proportion
the national labor
force en¬
gaged in agriculture gives the
of
first clue to this
situation.
In
actual number of
people the farm
.
population
•.until
the
cently
on
the
continued
mid-thirties.
to
increase
More re¬
even the number of
land
has
declined.
people
With
continued
improvement in agri¬
cultural methods,
permitting each
us
were
to
vigorous
not
one
it
General
will, be
possible " will
true when
tion
started
What
had
been
con¬
sidered a surplus of production
turned out to have been a deficit
of consumption.
People
eat,
when
even
on
the
they eat cheap foods:
wheat
and
the
low-
starches.
Surpluses of farm
produce are unavoidable anytime
the American
public turns toward
that
kind
of
diet.
a
Such
foods
provide neither good nutrition for
the
consumer
for
the
nor
good
farmer.
is
The
what
we
business
principle
might call
"feeding power" of foods. If
consuming public were will¬
our
ing to accept corn as their only
food, all the agriculture we would
need in this
country is one-half of
the crop
acerage of the Corn Belt
states.
We
would
then
have
enough to
we
eat,
would
calories,
acres
in
have
and
and
the
all
the
farm
that
sense
adequate
other
people
food
farm
could
be
done away with.
But
if
instead
meal mush
we
we
of
eating
feed it to
livestock,
get back higher quality,
tasty,
more
more
generally
smaller
corn
corn-
nutritious, and more
desirable foods, but in
quantity.
will feed
a
A
man
bushel
of
It
a
would
But
now.
na¬
scribed
the
cultural"'
whole
idea
as
|
al¬
I
cannot
no
are
these:
in
proportion
man—Jood and fiber.
Second.
which
is
Agriculture
the
much
of
the
non-farm
population acquires its livelihood.
Third.
Agriculture is a natural
in contradistinction to
"unnaturalness" of city and
industry,
factory life. In keeping1 men close
to
the
soil, it stimulates inde¬
pendence
and self-reliance,
stability in society.
creates
and
tion, and is thus in this
important sense essential
continuing life of the city.
second
the
to
personally puzzled long
the strong adherence to this
doctrine
in
an
Industrial
Age.
And it should be recognized that
it is not
only farmers who accept
it.
At one time I
thought it was
primarily
a
political
hangover
from the days when agriculture
dominant in
it
that
as
often
the
seems
it
a
supply.
nation. How¬
much
so
general
unconscious
food
for
is
our
not
to
be
though
concern
Everyone,
no
nearly a matter how
remote from the land
When fed to animals and,
he may be, is more less aware of
converted to ham and
eggs and. his
dependence on it. At least sub¬
milk it would provide his food
for
only three or four days. Thus the consciously he knows his nonfarm work can continue
only as
feeding power of a bushel of
long as someone else produces his
cereals depends on how we
use it.
agricultural needs.
The intense
No one could
possibly eat 20 or 30
public interest in soil resources
oounds of corn or wheat a
day. and in the welfare
of
farmers
But if he eats livestock
products must
stem from this fact.
And it
that much grain
may well have
must be that influence also
which
gone
into
producing
one
food.
In
a
sense
it
day's
gives to
an
the political
might be consid¬
ered wasteful to feed
the
food people want to
eat.
kind of
Consum¬
in
our
sumer
purchases
has
the
proportion of
foods in their diet
shown that
these
choice
increases with
their income.
During the
But
much
even
with the
discussed
shortages, our
civilian population consumed an
8 to 10% better diet
than before
industrial
-
in
■.
truth, the very, changes
through which the national econ¬
omy has been going has removed
agriculture from any position of
primacy.
come
Nearly
everyone
to be a specialist.
The
mercial
war,
dominantly
society.
ers
buy these foods when they can
afford to.
Every study of con¬
agricultural minority
weight it now exerts
farmer
sells
his
has
com¬
produce
and
buys his living to nearly the
same
degree that the industrial
worker
,
sells
his living.
his
labor
and
buys
Each must be prosper¬
before
2%
Net
income
higher than in
current
to
lower
profits
and
recoveries.
income taxes, at $302
million, were 9% higher than in
1945, and were more than four
the amount paid in 1942.
Federal and State income taxes 1
absorbed 26% of net
profits be¬
fore taxes in
1946, compared
with 25% in 1945 and
15% in
1942.
Of the
$902 million of net
profits, after income taxes, $290
unprecedented level
1945,
Chairman
million
Federal
in
Maple T. Harl of the
Deposit Insurance Cor¬
or 33% was
distributed
dividends and interest on
poration announced on May 8. He
added that net profits after taxes
of the large
city banks were less
capital. This amounted to 3.3%
of average total
capital accounts,
the same as in the
preceding
than in 1945
year.
as
a
result of
lower
profits on securities sold;
else¬
where throughout the
country he
Mr. Harl stated that the
reten-1
tion in the capital account of
$603
said net profits after taxes of in¬
sured
commercial
banks
were
generally higher.
reports
covering
Tabulations
FDIC
banks
million,
net
profits after taxes Of $902,000,000.
Mr. Harl stated that all major
categories of current earnings re¬
increases
1945.
over
advices added:
of
net
profits,
continuance
a
conservative
insured
showed
67%
or
represents
of
dividend
of
the
practice
which
these
Federally insured
banks have followed in each
year
since the establishment of
Federal
insurance of deposits.
Total
His
sured
'
He added:
capital accounts of in¬
commercial
banks
in¬
creased
Income
(
from
loans
by $616 million, or 7%,
during the year, and amounted
to $9,288 million on Dec.
31,
achieved
largest gain, increasing 31%
$950,000,000,;- the
highest
amount in any year since the
to
establishment of Federal insur¬
of
deposits.
Income
accounted
for
33%
of
total current operating earnings
in 1946, as compared with 29%
in
1945.
from
a
The
loans
gain
in
resulted
income
both
>
and a firming of interest rates.
Average
loan
holdings
were
18% higher in 1946 than in 1945.
rate
of
increased
income
from
loans
on
3.09%
in
1945
to 3.43%5in
1946, reversing the
downward;
trend
which
The amount of income
curities
every
increased
year
counted
for
had
operating earnings,
ing
The
year.
income
S.
ligations
million
dends
to
of
Interest
other
on
of
to
in 1945. Inter¬
1.49%
$177 million,
age holdings.
rate
rose
Government
amounted
or
holdings.
in
as com¬
average
1.46%
U.
on
has
in the preced¬
securities
.on
1.56 from
se¬
on
since 1940, and ac¬
49% of totalf cur¬
pared with 52%
est
it
as
ob¬
$1,219
average
and
divi¬
securities
were
2.34% of
or
Mr.
Harl
operating
1945 to
gories
aver¬
item
also
stated
that
sharing
total
16% from
expenses rose
and
in
major cate¬
the increase.
the largest
expense in recent
showed „the greatest in¬
crease, rising by 20% to $831 mil¬
lion.
In the preceding year
they
had risen 10%,; the largest
pre¬
years,
vious increase since the establish¬
ment of
Federal insurance of
posits.
The
number
of
de¬
officers
and employees increased 5
9%, respectively, over 1945..
and
From the further advices of Mr.
Harl
we
The
quote:
I
of offi¬
that of em¬
ployees, 13%.
Interest paid 911
time
and
savings
deposits
amounted to
$269 million, an
cers
salary
average
increased 10%;
increase of 16%.
was
the
growth
in
deposits;
decline
result
the
there
in
the
This increase
of
continued
volume
of
such
further
average rate of
was
a
1
.
Senate
Groups Passes
Cutting Bill
Tax
The
Senate Finance Committee
May 9 approved legislation to-
on
cut all personal
income tax levies
by I0V2 to 30%, commencing July
1, Associated Press Washington
advices reported.
payers would be
*
Individual tax¬
saved
mately $4,000,000,000
year's
operation,
approxi¬
a full;
over
according
to
committee experts' estimates. The
bill, if it became law, would give
smallest taxpayers the
great¬
percentage reductions, with
larger taxpayers gaining the big¬
the
est
gest individual dollar benefits.
In
1947
taxpayers- would benefit by
only half the year's total esti¬
mated
saving
if
the
legislation
to be effective after June
30.
The bill which the Senate Com¬
mittee has approved is an amend¬
ed version of a House
were
introduced
Knutson
and
all
wages,
of .bank
.'
1
bill
1946 with
Salaries
ratio of total capital
accounts to
total assets.
tr!
"
from
growth in the volume of loans
The
1946. This increase
coupledwith
a decline in
assets, resulted in a
rise from 5.5% to
6.3% in the
from
loans-
over
month.
to
Federal
sured commercial banks continued
in 1946 at the
rent
have
and
times
existed since 1939.
Agriculture .replenishes
self-consuming city popula¬
ever
num¬
by these banks in
17%
7%
operating
were
sufficiently high¬
bring about this increase
despite higher charge-offs and
profits, after taxes, of in¬
attained
recov¬
Losses
earnings
er
•
Net
1945.
increased
were
1945.
Commercial Banks
Fourth.
was
their
in
profits,
taxes,
Net Profits of Insured
ance
,
major source of primary wealth,
providing the raw materials from
the processing and distribution of
over
to
Profits
million,
than
Net
speak for agriculture.
one person who can.
It is in proportion to their
greater political power.
still
higher than,
year.
$283 million.
responsibility for statesmanship is
not
war
charge-offs
the
Agriculture is a continu¬
ing, indeed an eternal industry,
producing the most basic needs of
I
less
only from agriculture.
My thought is this: the farmers1
bers
much
other assets sold and
eries were $200
full
There is
was
on
production, full consump¬
tion, full prosperity, and full se¬
curity in our way of life,
Its
First.
the
lion, it
in any other
Nothing less than superior states¬
manship from each group in its
dealings with all others will give
ported
"Agri¬
Fundamentalism."
essentials
the
low the 1945
figure of $267 mil¬
of all groups within the nation has
reached
extreme
proportions.
us
1946,
sold,
chiefly U, S. Government obli¬
gations, were $209 million. Even
though this item was 22% be¬
the
nor
(2<553) ' g
interest paid-to
0.84% in
from 0.87% in 1945.
Profits
on
securities
max¬
And surely
any group, can
commercial
seem
adher¬
unquestioning intensity.
Joseph S. Davis has well de¬
con¬
buy
farmers.
to it has continued with
ence
and
largely
were
most
of produce
piled up in warehouses
and on the farms.
When Unem¬
disappeared
of
we
be less true
were
ruinously low, still the "surpluses"
ployment
Prosperity Not Depend¬
Agricultural Prosperity
on
There is a widely accepted doc¬
trine, particularly among farmers
and farm
leaders, that general
prosperity for the country must
have
its
origin
in agricultural
prosperity.
Obviously,
it
was
to
gain.
other, nor capital,
fairly claim a
place of priority.
The entwining interdependence
nor
of
on the purchasing power
(the real incomes, not the money
incomes) of the consuming public.
ent
exchange of
goods is to proceed with the
imum of mutual
health,
-
depend
assure an
how to sell the stuff." Prices
much
as
for
measure
Whether
adequate market.
Back in
the
Thirties farmers were
saying, "We
know how to produce.
Tell us
the
cannot
millions of
prosperity
farm people in the attempt.
among
urban
essential,
r
could
large
a
Markets
prosperity is to
involved
three-quarters
there
A second postive rural need for
„
fixed, because
U. S. farms the
operators and their
families do
three-quarters of the work.
quantity of livestock prod¬
surpluses.
birth rates are too low to main¬
tain their populations unless farm
areas send their
surplus.
portion of fixed costs than
almost
•any
other business.
Even
the
labor cost is about
on
ahead, each
years
142
eat
the
/
I can speak
into the
on
not possibly be farm
On the contrary, with¬
out a great deal of expansion our
agricultural plant could not sup¬
ply the need. But we could build
for
too,
and
Earming involves
shortage.
as
employment can draw
otherwise burdensome surplus
of people from the land.
And the
cities need them,
But
farming has
prewar
to
non-farm
dole.
as
hollered
we
if
ous
an
beans
vulnerability
over
great
cost
Increased directly
&>ecome
one-third
eat the
sion periods when it can ill afford
do so.
Only a high level of
Nothing is
farmers than
depression.
Their
to price drops has
Fluid milk consumption
ucts and fruits and
vegetables that
nutritional scientists tell us we
to
poverished people pass their
suf¬
fering to the soil."
a
getting
back
so
summer.
by
wasn't
ever
should
perity. It is essential
dreaded
still
than
persons
buying as they will
when they can, the "sur¬
pluses" melted like a snowball, in
more
If,
opposite direction.
Thus by re¬
taining surplus population and by
absorbing additional refugees
from the city, the farm becomes a
Social Security System in depres¬
sumers
to the main"tenee of the land and to
the well-
food
of the
early
But I wish to
emphasize strong¬
ly that point of national
pros¬
ftjeing of farm people. As Charles
IE,. Kellogg has so well
said, "Im¬
better
and
consuming
still louder.
to reverse the normal flow in the
to farm
^successfully.
depression of
the Old Homestead
intensified
scientific
discov¬
an
Food Shortage
no
the
was
But
Meat supplies increased
15% per
capita, and we hollered shortage
where
25% above
application
and
increased
they are not
they tend actu¬
ally to reduce the average rural
level of living.
In
going abroad.
Front
levels, yet
the
eries and farm
equipment.
and
one
were pro¬
maximum. Some stuff
Home
enough.
Thirties
on
the
needed and where
continuing
prewar.
was
course
before
farms it has been
than 6ver short¬
The Bureau of Agricultural
Economics has estimated
postwar
Jlarm production at a
based
a
of
75%
on
the
our
concerned
surpluses
is
"prosperity" of wartime
it possible, the situa¬
happy one
made
ducing at
employment. In depression times
they cannot. They are stranded on
ages.
tation
birth
larger cities has been
our
bogus
buy it.
anything but the
been
gether with displaced farm work¬
ers, must find jobs in non-farm
pro¬
in
the
had
half times the maintenance rate.
This surplus of young people, to¬
pot at a wholesale rate.
Refuting
^evidence is a total of farm
duction
decades
it
tion would have been a
for everybody. Farmers
Over tne
farms.
on
of
If
that
con¬
a
going to
ihighest levels
couple
Our farms produced it.
Consumers could afford to
war.
But
proper
should get the idea that
vital soil heritage is
our
in
the
of the rate necessary
for maintenance of the
population.
'the land above that point.
No
still
tributing to rural crowding is the
pro¬
and
to
accomplish ever
greater
production,
agriculture
has become an industry of shrink¬
ing employment opportunity.
Tor soil maintenanceifor land
worker
Committee.
most
important
the effective date.
voted to
to
approved
Chairman
(R., Minn.) of the Ways
Means
The
b y
make
last Jan.
1.
change
is
The House has
the cut
date
That would
back
entail
sending out refunds to taxpayers
for
overpayments
from
January
through June.
Following is the schedule of
ductions
approved
by the
re¬
Sena¬
tors:
30% off for persons with net
incomes
(after exemptions and
deductions) of $1,000 or less; from
30 to 20% off on incomes between
$1,000 and $1,396; 20% reduction
from
$1,396 to $79,728; 15% reduc¬
tion from
10.5%
The
vation
The
$79,728 to $302,396, artd
off above $302,396.
15%
of
bracket
the
House
was
Senate
bill
carries
cut bracket straight
$1,396 to $302,396.
an
inno¬
Committee.
the
20%
through from
>
MOODY'S
Average Yields)
U. S.
Daily
Averages
May 13_i
Govt.
121.64
117.40
12_.
121.67
117.40
Avge.
Corpo-
on
Proclamation of Pres.
5
121.61
117.40
3—
a
117.40
122.50
10—
9
121.64
117.40
121.61
_
117.40
121.61
121.61
6—IIII
117.40
117.40
.
121.64
117.40
117.40
117.40
122.50
122.50
117.40
121.80
18
122.02
117.40
122.50
117.40
122.50
122.27
117.40
122.50
122.24
117.20
122.29
14
122.27
112.37
121.04
110.34
112.56
118.80
121.04
110.34
112.56
118.80
121.04
110.34
112.56
118.80
121.25
110.15
112.37
118.80
121.04
110.34
112.37
118.80
121.25
110.15
112.56
118.60
121.04
110.34
110.15
117.00
112.75
118.60
121.04
112.56
118.40
121.04
110.34
112.75
118.20
120.84
112.75
118.40
120.84
112.75
118.40
122.09
120.02
117.00
122.09
110.52
14—
122.20
117.40
122.20
117.60
122.09
122.08
117.40
121.88
122.39
117.60
121.88
120.02
117.00
120.22
111.20
120.02 ,117.20
120.22
117.20
120.22
117.40
120.43
117.40
120.22
117.40
119.82
117.20
119.61
116.80
3 ill"II"
17
122.24
117.40
121.88
10
122.17
117.20
121.67
122.14
116.80
121.25
1947..
122.39
117.60
122.50
1947—.
121.61
116.80
123.45
118.80
High
Low
tion
121.04
122.09
Y4_
121.25
118.80
117.40
Jan.
118.80
118.80
117.20
122.09
at the time of a
112.56
122.14
117.20
refers to
121.04
112.56
122.20
122.17
121.04
118.80
112.56
28
7
121.25
118.80
112.56
21
Feb.
121.04
118.80
112.56
110.52
•
•
118.80
112.37
110.34
120.02
122.09
117.20
121.04
117.00
120.43
120.22
28IIII—
118.80
116.80
117.20
120.43
21
Mar.
112,37
117.00
116.80
116.80
120.43
122.17
11
121.04
117.00
117.00
120.43
120.43
120.63
120.43
122.50
121.74
Indus.
118.80
117.00
120.43
122.50
121.61
2-..—
Apr. 25—
P.U.
112.37
120.84
110.70
112.93
118.40
121.04
110.88
113.12
118.40
111.07
113.31
118.60
113.31
118.80
118.80
113.12
118.60
113.12
118.40
120.43
110.15
112.75
118:00
120.02
117.40
116.80
111.07
113.31
118 80
110.15
112.37
117.80
122.92
121.25
118.40
112:75
116.22
119.20
arguments by Malvin T. David¬
son, attorney for George Yengel, the landlord, had ruled that
•options contained in the lease,
based upon the phrases "for the
duration of the war" and "after
the
termination of
the war,"
could not-be exercised at this
120.02
120.84
1 Year Ago
May
1946_
13,
2 Years
»
AVERAGES
Individual Closing Prices)
BOND
MOODY'S
(Based
U. S.
1947
.
Bonds
Aa
Aaa
2.78
9
2.53
2.63
3.16
3.04
2.71
2:60
provided for
a
2.78
2.53
2.63
2.81
3.15
3.04
2.71
2.60
duration
the
2.78
2.53
2.63
2.81
3.15
3.04
2.71
2.60
2.78
2.53
2.63
2.81
3.15
3.04
2.71
2.59
1.57
10—
2.81
8——I'
1.57
2.78
2.53
2.63
2.81
3.15
3.03
2.71
2.78
2.53
2.63
2.81
3.15
3.03
2.78
2.53
2.63
2.80
3.14
3.03
2.71
3.15
3.03
2.71
2.60
2.53
2.63
2.80
2.53
2.63
2.80
3.15
3.03
2.71
2.60
years.
2.53
2.63
2.80
3.15
3.03
2.71
2.60
2.60
rendered, Mr. Minkin elected to
renew
his lease for 10 years,
2.78
1.57
1.57
2.78
2.53
2.63
2.80
3.15
3.03
2.71
1.56
2.78
2.53
2.62
2.80
3.15
3.03
2.71
2.59
1.56
2.78
2.53
2.63
2.81
3.16
3.04
2.71
2.60
13
11
1.54
2.78
2.53
2.63
2.81
3.15
l_,
Apr. 25
?.
—
,
2.71
2.72
2.53
2.63
2.81
3.16
2.78
2.53
2J63
2.79
3.15
3.02
1.53
2.78
2.54
2:64
2.80
3.15
3.02
2.73
2.60
25—
1.53
2.79
2.54
2.64
2.80
3.16
3.03
2.73
2.60
21
—
2.55
2.79
3.15
2.80
2.65
14
1.56
1.57
2.79
2.55
2.65
1.56
2.79
2.55
2.65
21
1.57
2.78
2.55
2.64
2.79
1.56
2.78
2.55
2.65
2.79
1.56
2.77
2.55
2164
2.79
1.57
2.78
2.56
2.64
2.78
3.12
2.99
2.63
2.78
3.12
2.99
—
7IIIIIII
Jan.
31—
24.
2.56
2.77
1.55
—
"
2.61
2.74
3.02
28——II
Feb.
2.80
3.14
3.02
2.73
3.14
3.02
2.73
2.61
3.13
3.01
2.73
2.60
3.12
3.00
2.73
2.61
•
2.71...
1.56
2.78
2.56
2.64
2.78
3.13
3.00
2.72
1.57
2.79
2.57-
2.66
2.79
3.14
3.00
2.73
2.63
2.81
2.59
2.67
2.81
3.16
3.02
2.75
2.65
1.57
2.81
2.60
2,67
2.81
3.16
3.04
2.76
2.65
1.53
2.77
2.53
2.62
2.78
3.11
209
2.71
2.59
3.02
2.84
2.69
2.61
3.33
3.05
1.57
; High
v
;
1947—
1947
.
19462 Years Ago
1.51
2.71
2.51
2.59
2.73
1945-
1.64
2.89
2.61
2173
2.87
May
:
13,
May
12,
coupon,
the
or
yields on the basis of one "typical"
prices are computed from average
*These
(3%%
level
Illustrate in
a
;of yield averages,-the lattej being the true picture of
NOTE—The'list used in compiling the averages
■
the bond market.
was given in the Sept. 5, 1946
our
was
for Week Ended May 10,1947
19.0% Ahead of That for Same Week Last Year
'
Institute, in its current weekly report, esti¬
The Edison Electric
electrical energy distributed by the electric
light and power industry for the week ended May 10, 1947 was 4,653,137,000 kwh., an increase of 19.0% over the corresponding week of
last year when electric output amounted to 3,910,760,000 kwh.
The
current figure also compares with 4,640,371,000 kwh. produced in the
week ended May 3, 1947, which was 15.7% in excess of the 4,011,670,creases
Rocky Mountain groups
INCREASE
PERCENTAGE
week last year.
OVER
SAME
May
Division—
Apr. 12
19.1
6.4
the
18.1
10.8
16.9
\
17.5
18.1
15.5
18.3
19.0
18.4
16.3
18.0
25.2
22,2
20.0
stance.
18.3
18.7
20.2
21.7
23.1
of words should be
19.0
15.7
17.4
16.9
FOR
Week Ended—
RECENT
WEEKS
'(Thousands
1947
1946
Over 1946
19.9
4-20.5
1
4,777,207
Feb.
8-——
4,801,179
4,778,179
4,777,740
3,948,620
3,922,796
+ 21.0
+ 21:8
4,797,099
4,000,119
+19.9
4,786,552
3,952,539
+21.1
4,763,843
4,759,066
3,987,877
4,017,310
4,728,885
3,992,283
4,693,055
4,619,700
4,660,320
4.867.997
4.640,371
4,653,137
3,987,673
+19.5
+18.5
+18.5
+17.7
+15.1
+16.9
+17.4
+15.7
+19.0
15—
Feb.
22
1
-
—
Mar.
8——
Mar.
—
15—
Mar. 22
Mar. 2i—
.
—
Apr.
5
Apr. 12
*.
Apr. 19——
Apr. 26—
May
3-,
—
May 10—
„
—
of
:; Form
3,982,775
3,983,493
4,014,652
3,987,145
3.976.750
4,011,670
+
„
1945
1932
1929
<1,578,817
1,545,459
1,512,158
1,519,679
1,538,452
1,537,747
1,514,553
1,480,208
1,465,076
1,726,161
1,718,304
1,699,250
1,706,719
1,702,570
1,687,225
1,683,265
1,679,589
1,633,291
1,696,543
1,709,331
1,699,822
1,588,43?
i 1,698,942
1,704,426
1,705,460
1,615,085
4,415,889
3,939,281
May 24
3,941,865
4,329,605
May 31
3,741,256
4,203,502
-
3,910,760
'
prevail over sub¬
and a sensible meaning
not
and
$3,021,834,000
or
9.7%
of net
worth in
1945, $3,025,595,000 or
10.1% of net worth in 1944, $2,758,208,000 or 9.7% of net Worth
1943, $3,134,863,000 or 12.0%
of
of dividends the Minnesotan de¬
with
clared;
worth
upon
have
1,480,738
1,469,810
1,454,505
1,429,032
1,436,928
1,435,731
1,425,151
1,381,452
1,435,471
sought."
$1,276,780,000 or 5.1% of net
in 1938, $2,638,820,000 or
11.1% of net worth in 1937 and
can
the
tween
man
who
first
con¬
double^ taxation
ceived
a
horse."
In addition to
outlining these
aspects of his projected 1948 tax
program, Mr. Knutson predicted
that
023,000 in 1936.
and
Jesse James is that Jesse had
agreement would soon
the Senate-House
on the" budget ceiling
to cut the President's budget for
1,689,925
Committee.
As
a
member
on
of ^a
congressional committee investi¬
gating war -devastation in Europe,
he
travelled
through - England,
France
and
Germany in 1945.
these
percent of Net Sales for
companies was 4.2% in 1945, 3.8%
in 1944, 3.9% in 1943, 7.3%
in
1941; and 5.3% in 1938, 8.9% in
1937, and 9.2% in 1936.
an
be reached by
taxes as
Net Profit after Income
a
for
Provisions
Taxes
Income
$3,156,612,000 in 1945,
amounted to
conferees
$5,151,798,000 in 1944, $5,166,437,000 in 1943, $3,296,78Q,000 in 1941;
compared
with $319,339,000 in
five billion dollars. The Senate
1938, $566,535,000 in
1937 and
has agreed tP*a cut of $4,500,$441,233,000 in 1936. Income tax
000,000, while-' the House has data as shown in the table in¬
fiscal 1948 by
until
now
slightly
more
than
held Put for $6,000,-
excess-profits
clude
000,000.
since
taxes
1940, but are net of post-war cred¬
and "carry-back" refunds of
its
income and excess
sto
Individuals in March
payments to individuals
Income
March
continued
attained
in
peak
January and
at
profits taxes.
1940,
companies
have
made provision out of income for
war
and
related
contingencies.
Since
the
provisions, which are shown
Such
in
the
table
amounted
separate
item,
$96,319,000 in
1945,
as
to
a
$343,720,000 in 1944, $476,573,000
i943, $439,946,000 in 1942, $308.*
in
183,000 in 1941 and $99,963,000 in
1940.
...
:
.
of
the
table,
the
of
:
1945
■ v.
be noted,
should
It
use
in making
contained in
renegotiation
figures
that the
contracts
war
by the re¬
porting companies was only par¬
tially completed and reported at
payments
resulting from con¬ the time of this compilation,
tinued expansion
of wages and whereas data for prior years re¬
flect in most cases the completion
salaries, according to the Com¬
of renegotiation of war contracts.
merce Department announcement,
It should be noted that a material
which also added:
payments to individuals
and salaries, the
net income of proprietors (both
farm and nonfarm), dividends and
Income
include
wages
number of reports for
trants
1945 regis¬
included
have
amounts in their
unstated
provision for in¬
taxes, representing provision
renegotiation of war contracts.
come
for
These income taxes hre
of
deduction
after the
and
current
prior
adjustments and refunds ap¬
income payments were .at an an¬ plicable to accelerated amortiza¬
tion of emergency facilities. * V\
nual rate of $177 billion, 7% above
vidual incomes.
For the first
quartet, of
1947,
years
full-year record total of $165
Although this rate
in each, month of the
quarter as well as for the quarter
May 5 from Allentown, Pa., of the
as- a whole,
some'.Shifts: occurred
death of Representative Charles
in the components of total income
L.
Gerlach
(R.-Pa.),. who was
payments.^Nonagricultural income
serving his fifth consecutive term
rose during the quarter as a result
in Congress, Associated Press ad¬
of increase wage and salary pay¬
vices stated.. Mr. Gerlach, who
ments, while agricultural income
was 51 years old, was first elected
has fallen slightly because of de¬
to Congress in 1938, and was a
clining farm marketings.
member of the Foreign Relations
was;-made;
compared
1941
in
worth
net
yet to meet a man
of net
give ipe a satisfactory $2,285,625,000 or 10.1%
explanation for taxing the earn¬ worth in 1936.
Net Sales reported by these cor¬
ings of industry and later tax¬
ing the same earnings when porations amounted to $72,033,they
are
distributed to
the 337,800 in 1945, $78,943,203,000 in
stockholders. Even the United 1944, $71,184,135,000 in 1943, $42,Kingdom, with its great need 859,931,000
in
1941;
compared
for money, has never stooped with $24,085,621,000 in 1938, $29,so low. The only^-difference be¬
592,339,000 in 1937, and $24,885,-
who
the
Announcement
4,538,552
4,505,269
4,472,298
4,473,962
4,472,110
4,446,136
4,397,529
4,401,716
4,329,478
4,321,794
4,332,400
4,411,325
4,397,330
should
Rep. Gerlach Dies v
Kilowatt-Hours)
4,302.381
4,377,221
-rfrMay 17
.
"lli
Feb.
Feb.
there b y
13.6
Total United States—.
Mar.
intentions
manifested
19.4
:
as
wrinkles
the obligations as a
10.2
8.3
17.3
so
whole, and interest, net rents received^ by
of. the parties landlords and other types of indi¬
6.9
10.3
% Change
.
considered,"
he
wrote, "'not as if isolated from
the context, but in the light of
be
20.1,
Coast
DATA
!
19
the phrases
words or ex¬
23.7
States—
Rocky Mountain
V
YEAR
Apr.
9.5
'
Central—
Pacific
LAST
Apr. 26
10.2
10.7
Industrial—,
Southern
May 3
24.2
Middle Atlantic-.
West
10
8.5
.
"general
should
Week Ended-
Major Geographical
New England-
Central
WEEK
Johnston, dis¬
pressions in common use in the
recent conflict. Particular words
which showed gains of 24.2%, 23.7% and
20.1%, respectively, over the same
companies carried to surplus was
powers
Justice John B.
were
that these
amount
the
is
in
levels
senting, argued that
produced in the week ended May 4, 1946.
The largest in¬
were reported by the Central Industrial, Southern States and
000 kwh.
after Income Taxes
Profit
Net
which
his proposal
Elaborating
correct.
purpose."
include 872 companies
1936, 972 in 1937, 1013 in 1938,
1033 in 1939, 1055 in 1940, 107'6
in 1941, 1090 in 1942, 1088 in 1943,
1135 in 1944, and 1146 in 1945. ,
the "Department
of
of the Presi¬ February,
dent and Congress did not auto¬ Commerce said on May 7.
The Department's index of in¬
matically cease upon the term¬
payments' to individuals
ination of actual fighting. We come
must assume that the parties which makes allowance for seas¬
and
their
attorneys
realized onal influences, declined frac¬
this, and we may assume that tionally to 263.0 in March from
when, they prepared the con¬ 263.3 in February (1935-39=100).
tract
they
employed
words Declining farm income offset an
which were best suited to their increase in nonagricultural income
Electric Output
$31,268,654,000.
The data
to eliminate the double taxation
in
war
the
worth
in
remove
code
possible
opinion this determination
"The
mates that the amount of
his
exercise
attempted to
option period. In
tenant
the
when
•1
1321.
the "Chronicle" on page
issue of
bond
maturing in 25 years) and do not purport to show either the average
movement of actual price quotations.
They merely serve to
more comprehensive way the relative levels and the relative movement
of
bugs."
instrument.
meaning of the contract the war
had not terminated at the time
than half
of all man¬
,
Court and the Ap¬
pellate Term read the words
employed in their legal sense,
and determined that within the
average
to
"all
ordinary
legal
significance,"
Nolan contended. "The
2.69
2.93
more
ufacturing
enterprises
in
United States, and a net
Federal
revenue
Justice
closed.
Market
a
:
words
be
to
.
3. Rewrite the entire
general rule is that
shall be given their
the
ments
the
the Senate.
Municipal
1 Year Ago
estimated
of the combined assets
bill, how under consideration by
the inter¬
used in a
constructing such instru¬
"In
2.61
17
Low
formal written
2.62
-
a
but calls for
pretation of words
2.62
2.71
.
"in
men,
2.61
2.72
2.99
3.11
of the words
conversation between lay¬
volve the meaning
2.61
2.80
-
10
'
landlord.
The majority opinion, written
by Justice Gerald Nolan, held
that the "problem" did not in¬
2.60
2.78
1.53
interpretation was chal¬
lenged by the
2.60
1.53
When the Japanese sur¬
but the
2.59
2.72
3.04
3.03
Mar. 28
for one
after the
the
2.78
„
a
2
of
2.78
1.57
5—
in
war" the
tenant would have the option of
a
renewal for a period of 10
2.59
1.57
war"
that
and
"termination
2.60
6—IIII
of
only,
year
2.60
1.57
2.71
7_ww
'
'
1943,
renewal "for the
written
lease,
a
—
>12
"
The
Indus.
P. U.
aggregate assets in 1945 amount¬
ing to $49,387,294,000, which is
personal income taxes on top of
the tax cuts embodied in his
"I
time.
Corporate by Groups*
R. R.
Baa
A
1.57
.May 13
.
YIELD
Corporate by Earnings*
rate*
1.57
Averages
on
Avge,
Corpo¬
Govt.
Daily
,
119.20
114.46
112.19
107.09
115.63
,118.40
120.84
115.24
122.26
1945-
12,
May
Ago
manufacturing
corporations in their annual re¬
ports filed with Commission, cov¬
ering the ten years fr6m 1936 to
dicated in the New York "Journal 1945, both inclusive. The compa¬
covered by the
data had
of Commerce" in advices from its nies
after hearing
The lower courts,
121.25
121.04
120.63
119.-61
public a survey
data' reported by
-
120.84
110.52
pro-;
in mind for 1948 which will,
among
other things, stress tax
relief for business. This was in¬
who
160
Empire
Boulevard,
Brooklyn,
as a garage and service station.
120.63
110.70
tax
new
a
on
gram
by a tenant, Meyer Minkin,
occupies the premises at
120.63
113.31
has
he
Washington bureau on that date
in a
(May 2.) which 5 set out his pro¬
New
posals as follows:
York "Times" of May 9, was dis¬
Here's what he proposes in
closed on May 8, that paper also
his 1948 tax program:
j
having
the
following
to
say
1. Eliminate double taxation
regarding the ruling:
of dividends, which he contends
The question was brought to
is an "inequity forced on us by
the higher tribunal on appeal
the New Deal in the 1930s."
from decisions in the Municipal
Court and the Appellate Term
2. Make a further reduction in
120.84
110.88
Con-'
and
President
the
by
that
tee
gress, has been lauded down
4-to-l decision. This, said the
-120.84
110.88
period that terminates
formal proclama-
a
Commission
Ways and Means Commit¬
House
and Exchange
April 22, made
of selected income
Securities
The
May 2 by
on
;
Of Listed Corps.
Chairman Harold Knutson of the
A ruling whereby the Appelate
Division, Second Department, of
New York, holds that legally, the
term "for the duration of the war"
R. R.
Aaa
,117.40
a
—
8
-
Corporate by Groups
Corporate by Earnings*
Aa
A
Baa
122.50
120.43
116.80
110.15
110.34
122.50
120.43
116.80
110.34
122.50
120.43
116.80
110.34
122.50
120.43
116.80
110.34
122.50
120.43
116.80
122.50
120.43
116.80 110.34
122.50
120.43
117.00 110.52
122.50
120.43
117.00 110.34
rate*
Bonds
revealqd
was
Operations
Profits and
Knutson for 1948
It
BOND PRICES
(Based
1947
SEC Survey of
of
and bond yield averages are
Moody's computed bond prices
given in the following table:
p
15, 1947
.
39
Moody's Bond Prices and Bond Yield Averages "Duration
,
Thursday, May
FINANCIAL CHRONICLE
THE COMMERCIAL &
'(2654)] 1
gfi
billion in 1946.
V
prevailed
and salary pay ments in the first quartet of 1947
Private
were
of
wage
equivalent to an annual rate
billion,r, more than 3%
the fourth quarter of 1946.
$96.7
above
r
.
vW-iH.
Tuesday, May,
Wednesday,
•
,«:;
.397.2
May^?£_=ti^.i,_'.
Thursday, May
Friday, May,''
ILVLL'l "r401.5
i-Iiiiit.' i 40116
■Li-i&ii'ttfOk*
-I5—v.'; 401:4
Saturday, May 10399.4
Monday, May 12——il'
Tuesday,- May -12——Jl—. —399.2
396i6
Two weeks agb, April 29—.
415.3
Mouth ago, April 12—J.-*—. .■-ki'-JL
.
.
•'
Year
iiiL
ago
1946 High
Low
1947 High
Low
Dec/ 24l—
-273JO
——
March 26—1
Jan.
20—
' ;380.'ft
264.7
Jari. 2_'—
,L„—
4318
Volume
165
Number 4594
THE COMMERCIAL & FINANCIAL CHRONICLE
ih thfe Middle Atlantic
States with
23.
This
represented
fiie Slate of Trade
(Continued from page 3)
and the bhiy
question was, | - Railroad • Earnings
Class I
"Will I get it on
time?"
railroads of the United States in
The* major sore
spot *n the sicei lviarun, 1947, xxctu an cai.xnioivv.vA ii>..
ih mc steel March,
had an estimated het
lnnliv
supply t-nnfuVA +W~ above
pictutb, the
trade
.
ply
i
.
.
.
..
income, after interest and rentals,
notes,
involves flat- of aboUt $43,600,000 compared With
rolled products.
On an allocation
authority
.
7
-**
*
—
v»*
—■
V
VU
JLIO V"
-
^
basis, however, supplies are
being
divided as
fairly as possible and
specified
delivery dates ate
adhered to.
Large steel
say that mills have
in the past few
the
being
on
and
That
the
and
be
reporting a falling-off in
demand for consumer
goods
made from steel.
In spite of
more
this,
there, is
"The
Iron Age,"
optimism among
manufac¬
turers over the
availability of
metals than has been
the case in
the past
year or so.
Large
goods
makers
such
as
of
ances are more
than
ried
over
consumer
household
trifle
a
inventories
appli¬
of
products which ih most
somewhat
wor¬
finished
cases
are
higher
than
in
the
fourth quarter Of
1946. Total inventories in Some
quarters are up
as high as
70% over last
Septem¬
ber Refrigerators
.
in
were
far
above
one
the
instance
average
In¬
ventory for all consumer
products
handled by that
industry; radios
were up
in the
even more.-
washing
said to be full.
The pipeline
machine field Was
A AA
2
*11 IF
Association
fears
of
•
off
for
,
tne
the
first
three
in
one
months
of
1947, they had an estimated net
income, after interest and rentals;
corresponding week
a year
the
manufacturers
ders to
ago.
Wholesale Food Price Index Off
cover
quirements.
limited
their
or¬
only immediate
re¬
year
net
a
It marks a decline of Moderately Higher—Total retail
over the $5.40 recorded on volume for
the country at large
8, 1946, just before major rose moderately in the
week, dol¬
foqd price controls were lifted.
lar volume continued to
railway operating income, be--
Oct.
to
$174,095,470
compared
With
$110,718,526 in the same period of
1946.
.
■
compare
.
Total operating revenue^ iri the
first three months of 1947
totaled
$2/039,308,947 compared
with
$1,J'
866,454,829 in the same/period"bf'
1946, or an increase of 9.3%: Op¬
erating expenses in the first thrfee
1947
year ago.
11 4%
fore interest and rentals amounted
sulted in greater
activity and a
rising sales volume. The increase
Domestic wool prices for
department stores
Moderately—There was a further remained unchanged despite a
$87,200,000 compared with $19r
moderation
in
the
downward 6-point rise in wool parity for the
000,000
in
the
corresponding
month ended April 15.
trend of the wholesale food
In foreign
price
period of 1946.
wool auctions held
Ih March, 1947, the carriers had index, compiled by Dun & Bradearly in the
Street,
prices advanced sharply.
Inc.,
a
during the
latest week,
net railway operating.
income*
Week.
A
of
desirable
drop of two
cents Offerings
before interest
grades,
and
rentals, of
$72,782,112 compared with a net brought the May 6 figure to $6, however, continued very limited
with buying
as
compared with $6.02 a week
mostly for the ac¬
railway operating deficit of $5,earlier.
The current index com¬ count of European countries.
702,877 in March, 1946. For the
pares with $4.20 on the like date
first three months of this
Retail
and
Wholesale
Trade
of
months of
.
A A
carriers with the
In
were
states
rt
a
.
metalworkihg
indus¬
try is in a "transition"
period was
proved last" week
by the shutting
down of a few
plants due to lack
of
steel, while other channels
the
rfvrvrt
mill operations
and I agOi
Most buyers ordered mer¬
possible curtailment of chandise
only in quantities suffi¬
for the Middle At¬ consumption ahd exports
during cient to meet their immediate
lantic arba, sihce cohcerns
failing the balance of the current year. needs.
Resistance to high prices
there totaled 26 a week
ago.
The Prices turned upward in the lat¬ and inferior
quality gobds con¬
sharpe&t ' rise appeared in the ter part of the week, aided
by a tinued to increase. Deliveries im¬
East North Central States
where heavy buying movement by the
proved slightly and stocks in rhost
failures jumped from
only four Commodity Credit Corporation to lines were
considerably above the
last Week to 26 in the week
just meet the
requirements
of
the level of a
year ago.
ended, some five times the num¬ United Nations Relief and Re¬
Department store sales on a
ber in 1946's comparable week. habilitation
Administrating
An¬ country-wide
basis, as taken from
Ih the Pacific
States, failures fell other factor was the slight ad¬ the Federal
Reserve Board's in¬
only
slight fchange
from 29 a week
ago to 18 this vance reported in the
mid-April dex for the week ended May 3,
week> but (continued to outnumber parity price for cotton rather than
1947, increased 12% above the
are over¬ those last
year by three to one. a decline.
The mid-April parity same
stated to the extent of the
period of last year.
This
inclu_ At least one concern failed in each price at 28.52 cents was a
new
sioh of about $97,000,000 charged
compared with an increase of 15%
region Whereas three districts did record high and
compared with a (revised
in that month as retroactive Wage
figure) in the preceding
not have any failures in
the com¬ revised figure of 28.15 cents for
week.
For the four weeks ended
payments applicable to the months
parable week of last year.
Con¬ mid-March.
of January and
May 3, 1947, sales increased by
February, 1946. cerns
failing did not rise as high
Domestic wools were quiet last
For that reason, the net earnings
3% and for the year to date
as 10 in any area in the
by
week as they have been
same week
shown for March, 1946, are some¬
through¬ 10%.
of 1946.
out the entire month of
what understated, thus affecting
April.
Retail trade here in New York
Ten Canadian failures were
Price Uncertainties continued to
re¬
the comparison between
the past week was stimulated
March, ported, rising from
by
only two in the be the
principal drawback as Mother's Day purchases
1946, and March, 1947.
which re¬
previous week and
prior
may
n
ment ih cbttoh
11
month
fourth quarter
quotas are hot ex¬
pected to
be less than
second
quarter allotments
more.
i
Operating
expenses
of March, 1946,
been prompt
weeks
»
of American Railroads.
consumers
delivery commitments, third
«•
1946, according to reports filed by
(2655)
at
approximately
similar week of
was
5%
placed
above
1946.
ing in the week's purchases
main-floor
Price
were
and
accessory
items, including
candy.
the
Outstand¬
^
hosiery
gift
and
;
reductions
turers to
move
by manufac¬
inventories charac¬
terized wholesale markets, but re¬
ports state that most replacement
prices showed
cline.
The
no
tehdency to deM>
was
slow
in
women's apparel markets as man¬
ufacturers
pace
concentrated
on
their
Moving upward during the favorably with that of the corre¬ Fall lines which
open the current
^eek were flour, corn, oats, beef, sponding week a year
It is also reported that
ago, states week.
hams, potatoes and hogs.
On the Dun & Bradstreet, Inc., in its most rayon mills in the fabric
down side were
wheat, barley, weekly review of trade.
Warm field are sold through September.
lard, butter,.cheese, milk, coffee, weather in many sections of the
A strong demand obtained in
cocoa and eggs.
Retail food prices country, together with clearance the durable goods lines last
week,
do not enter into the construction sales and scattered
price reduc¬ but it is understood that some im-f
ollhe index. It should not, there¬ tions, were
among the factors re¬ provement in delivery dates has
amounted to $1,The next 60 days will
present 597,733,863
compared with $1,- fore/be confused with or used as ported as contributing to the in¬ taken place.
severe test both
to distributors
It is in¬ crease in
567,879,401 in J&e corresponding a cost-of-living index.
consumer
Following in the footsteps of
purchasing.
and
manufacturers
Of
general period of 1946, or an increas£ of tended to show primarily the gen¬ Retail inventories
generally were primary markets, declines were
household
appliances
eral trend in food costs at the at a
and
just i.9%.
the order of wholesale food
high level.
howv well - these
prices',
inventories are
wholesale level. The index
Retail food volume
repre¬
Paper and Paperboard
increased stemming from
the - pressure of
dissipated the magazine
Producf
concludes, tion Higher—Paper production in sents the sum total of the price noticeably last week and dollar losses on overstocked inventories.
will-be -an; .indication of
how the United
per pound of -31 foods in general volume was well above that of
a
States for the week
According to the Federal Re¬
heavy steel orders from these
use.
ended May 3, was
year ago.
The supply of canned serve Board's Index," department
108.2% of mill
consuming groups will be later on
Daily Wholesale Price Index foods was abundant in most lo¬ store sales in New York City for
capacity, against 105.3% (revised
this year.
figure) in the preceding week and Shows Narrow
Changes—Com¬ calities as interest in frozen foods the weekly period to May 3, 1947,
:
The American
Iron and Steel 107.3% in the
increased moderately.
like 1946
The de¬ increased 5% above the same pe¬
week, ac¬ modity price movements as a rule
Institute announced on
Monday of cording to the American Paper were less severe during the past mand for ineat, fish and poultry riod last year.
This compared
this, week the
operating rate, of & Pulp Association. The above week and the Dun & Bradstreet was heavy. Stocks of fresh fruits with an increase of 12% (revised
steel companies
having 93%; of figures represent paper produc¬ daily wholesale price index of 30 and vegetables were ample. Paper figure) in the preceding week.
the steel
capacity of the industry tion exclusive of
basic commodities fluctuated products,
such as toilet tissue, For the four weeks ended May 3,
newsprint.
will be 94.2% of
capacity for the Paperboard output for the same within a narrow range during the towels and napkins, generally re¬ 1947, sales rose 1% and for the
week
beginning May 12, 1947, as Week, Was! 102%
mained in short supply. Consum¬ year to date increased 10%.
period.
The
index
compared with
ct°fe5t
compared with 90.6%,one
253.39 on May
wfeek 100% in the
6, as against 253.35 ers continued to display resistance
preceding week, and
ago, 94.5%
One
month agb hnd 101% in the
a week earlier and
compared with to high prices.
corresponding week
]
a
..
.
.
*
*
.
.
48.9%
sents
4.0%
one
year ago. This
repre¬
increase of 3.6 points or
from the
an
189.28
year agb.
Failures Rise Sharply
—Rising to 98 in the week ending
preceding week.
operating rate is May
8, commercial
1,648,400 tons of
failures
The ..week's
equivalent
year ago.
Business
a
to
on
the corresponding date a
Volume,
corn
arid industrial
Interest in Summer apparel in¬
creased
" of
,
trading
in
,
wheat
and oats increased consider¬
slightly
the past_ week.
Women's cotton dresses, hosiery
and blouses were reported to be
among the best sellers.
Clearance
To Hear
Airport Future
At N. Y. Luncheon
Presidents and executives of 18
ably last week.
Prices continued
Airlines
highest total to back and
operating out of New
fill but the undertone sales of
castings com¬ for
any week since March, 1943,
Spring suits and dresses York City, representatives of the"
pared
with
1,585,400
tons One
generally was firmer.
The May attracted
reports Dun &
many shoppers.
There Civil Aeronautics Board and Civ&'
week
Bradstreet, Inc. wheat contract
ago,
1,653,700
tons
One The 98
displayed consis¬ was an increasing demand tor Aeronautics
concerns failing exceeded
month ago and
Authority, leaders in
tent strength while cash wheat
861,800 tons one
men's
and
women's
by a considerable margin the
sportswear industry, many officials of the
year ago.
pre¬ was
nominally firm with few spot while men's Summer suits and
vious week's 70 and were
over
City of New York, and the Port
Electric Production Off
sales noted
during the week. Re¬ slacks were eagerly sought. The of New York
The four times as numerous as in
the
Authority, will at¬
Edison
steel
ingots
reached the
and
.
,
—
Electric
Institute
reports
that the output of
electricity de¬
creased 4,640,371,000 kwh.
iri the
week ended
May.f 3,
comparable week" a year ago When
only 23 were reported.
Most of the increase occurred
1947; from
among
large failures involving
kwh. in the
preceding liabilities of
$5,000 or more.
week. Output for the
To¬
week ended
May 3, 1947, was 15.7% above that taling 81, these large failures rose
4,667,997,000
for the
corresponding
period one year ago.
weekly
*
1946,
were
..
■
.
.
ciihe—Car
loadings
failing
of
revenue
freight for the week ended
May
3,
1947, totaled 882,684 cars, the
of
American
Rail¬
to the Winter wheat
crop
a billion-
and
ranked
second,
retailing,
supply
of
men's
shirts
and
fur¬
tend the Fourth Annual Luncheon
the Aviation Section — New
bushel (crop forecast for this
year's
nishings
continued
to
improve
with demand for children's cloth¬
(of
harvest^ according to
inary private estimate.
ing
the
that in recent weeks.
a
prelim¬
Corn de¬
clined sharply early in the
period
under pressure of
heavy liquida¬
tion, but most of the losses were
later
recovered
as
the
CCC
en¬
and
footwear
heavier
than
Mahogany bedroom suites and
electrical
refrigerators continued
to be in very heavy demand.
Re¬
quests for table electrical appli¬
ances were
numerous,
interest in
lawnmowers, rakes and other
gar¬
York
Board of
Hotel
Trade, May 16 at
Commodore, to hear
Mayor
William
O'Dwyer
and
Howard S. Cullman, Chairman of
the Port of New
review
future
York
plans
Authority,
the de¬
velopment of New York City Air¬
ports.
John F. Budd, Chairman of the
for
dening tools increased moderately
The demand for automobile
sup¬
plies,
building
materials
and
Aviation
hardware
the plans of the Port of New York
continued
at
the
high
Section,
the luncheon
on
in announcing
May 8 said.
"Mr. Cullman will tell
more
of
levels
of previous weeks.
The Authority to develop 'New York's
LaGuardia
Field, Idlewild Air¬
supply of house furnishings,
Par¬
ticularly lamps, improved consid¬ port, and Floyd Bennett Airfield.
The agreement between the City
erably.
Retail volume for the Country in and the Bi-State Agency was con¬
the week ended last Wednesday cluded a month ago at City Hall.
,
was
estimated
to
be
..
from
.
6
to
Many
citizens have
expressed
a
With
26, stocks of lard showed an increase 10% above that of the
desire to know more about the
correspond¬
sharpest rise of almost 7,000,000 pounds during
ing week a year ago
both from last week and
Regional 50-year lease for the three air¬
the month of
a year
April.
estimates
exceeded
those
of
a
the
fields and the new program which
wholesale trade.
After
early weakness, cotton year ago by the following per¬
starts June 1, in which the Port of
wholesalers fail¬ values worked
This was a de¬
steadily upward centages: New England, 3 to 7,
ing this week totaled 19, twice as
and
York
crease of 11,092
closed
with
moderate
Authority plans to
net East, 6 to 10; Middle West and New
cars, or 1.2% be¬
many-as in the previous week and
low the
gains for the week.
The early South, 4 to 8; Northwest, 5 to 9; spend a minimum of
preceding week, ahd 211,- almost 10 times
$100,000,000
the riumber in the
373 cars, or 31.5%
reaction was influenced
above the cor¬
by uncer¬ Southwest, 7 to 11, and Pacific during the next seven years on.
corresponding week of 1946.
tainties regarding the new
responding week for 1946. Com¬
crop Coast, 8 to 12.
New York's Airports, and nearly
GeographicallyK the
increase and the expectation of a decline
pared With the similar period of
Wholesale
volume
rose
frac¬
was apparent in all
a quarter of a billion dollars dur¬
regions except in the mid-April parity pricefor
1945, an increase of 16,650
tionally in the week and continued
cars, or the Pacific States.
The largest the staple.
Other bearish factors at a level moderately above that ing the 50-year period of the con¬
1.9%, is shown.
number of failures was
reported included reports of some curtail¬ of the
corresponding week a year tract."
Association
roads announced.
'
as
almost five times as tered the
market for substantial
heavy. Small failures with losses auantities of
cash corn for
export.
under $5,000 were
only a fifth as Oats showed independent
strength.
numerous
as
the
big
failures. Offerings of cash oats
ended May 4;
were sihall
1947, compared with Concern's
failing
in
this
size and
prices rose sharply.
181,200,000 kwh.', for the corre¬
Flour
group, however, did rise
slightly, mills continued to operate at a
sponding! week of 1946, or an in¬
numbering 17 against 13 a week
crease of 8.4%. Local
good rate, mostly on orders for
distribution ago and 10 last yean
of electricity amounted
export.
Domestic flour business
to 186,All industry and
trade groups was confined
400,000 kwh. compared with
largely to scattered
171,- suffered a
higher number of fail¬ small lots for fill-in
200,000 kwh. for the correspondpurposes.
ures
in
the
week
just ended. Hog prices showed a slight gain
ing week of last year, an increase
While
for the
of 8.9%.
manufacturing, with 26, had
week, but weakness in
..
the largest number of
concerns lard
continued.
Cold
Railroad Freight Loadings Destorage
.Consolidated Edison Co. of New
•York reports system
output of
196,400,000
kwh.. in the week
.
from 57 last week
and* compared
with only 13 in the same week
of
ports
continue excellent, with
ago
occurred
The number
in
of
.
12
week, is 18% above the 1946 week. Federal
is 17% above last week, but 41% below the
in Week
Wholesale Friges decrease 0.1 %
and municipal
total
dropped 1.8%." In its
further reported:
"Farm Products and Foods—Led by grains, market prices of
farm products declined 1.7% during the week. Quotations for most
grains were lower reflecting decreased activity, as traders anticipated
future price
declines.
Decreases for corn were especially large
because of abundant suppliesi
Barley quotations advanced slightly
demand remained strong.
Hog prices decreased 5% with a slight
improvement in supplies but other livestock advanced. Lower prices
reported for eggs in most markets.
Cotton quotations dropped
than 4%.
As a group prices of farm products were 5.2% below
the peak of mid-March and 28.8% above early May 1946.
"Food prices rose 1.5% during the week.
Higher prices were
reported for most meats, but cured and smoked pork were slightly
lower because of light demand.
Butter prices rose, reflecting in¬
creased movement into storage, whereas plentiful supplies caused
During the last five weeks it has
advices for the week ended May 2 the Bureau
year
earlier.
last
week, and the 1946 week are:
time, President Birnie announced,
the appointment of A. C. Arm¬
May 1,1947
May 9,1946
$102,480,000 $137,595,000
Private Construction
54,724,000
77,872,000
Public Construction
* 47,756,000
59,723,000
State and Municipal
33,108,000
30,873,000
Federal
14,648,000
28,850,000
In
the
clasified
construction»groups, waterworks, sewerage,
bridges, industrial buildings, and public buildings gained this week
over last week. Five of the nine classes recorded gains this week
over the 1946 week as follows: sewerage,
bridges, public buildings,
industrial buildings, and unclassified construction.
May 8,1947
$95,160,000
41,724,000
53,436,000
36,279,000
17,157,000
Total U. S. Construction-
as
were
more
capital for
New
strong,
COMMODITY GROUPS
1947
ENDED MAY 3,
WEEK
(1926=100)
Percent changes to
declined; in the preceding week 15 advanced and 30 declined;
second preceding week 11 advanced and 35 declined.
WEEKLY WHOLESALE COMMODITY PRICE INDEX
May 3, 1947 from—
Commodity Groups—
„
147.2
148.8
109.9
177.6
175.4
181.2
135.6
1.7
3.6
+ 28.8
at
Virginia Beach, the name was
160.3
162.2
164.4
110.7
1.5
1.0
+ 47.C
and
4.4
+
38'. 6
0.1
0.9
+
29.3
87.0
0.1
0.1
+ 19.5
'140.8
140.9
140.3
109.1
0.1
0.3
+
29.0
126.6
0.3
0.4
+
41.0
1.5
4.4
+ 33.8
1.5
+ 18.3
96.1
128.6
128.6
128.1
126.7
108.7
115.4
115.2
115.6
115.7
96.2
1
Housefurnishings goods.
Special GroupsRaw
159.4
160.3
144.7
146.0
145.6
141.1
142.1
123.1
101.5
105.5
164.0
142,2
142.8
1.2
— 1.7
+ 0.8
—
—
+ 20.0
products'.
—
—
17.3
Miscellaneous
All
Farm products
APRIL 26,
1947 TO MAY 3,
0.4
—
0.8
—
0.2
—
0.4
4.4
3.7
2.4
—1.5
Meats
feed
Cattle
—:
;
and skins-
Dairy
Other
vegetables
and
Fruits
products-—,—
textile products—_r—_—______
Oils
—
_■
and
13.6
"
May
and
Grains
foods
Other
products!
0.3
™
0.2
0.1
Livsstock
Other
and
farm
poultry
products
—
'
Paint
•Based
on
the
BLS
and
0,8
rubber.
Anthracite
-
.
"
4.7
1.7
1.3
goods-
weekly
index
of
prices
of
about
900
—
•;(); 4
' 0.4
0.2
other miscellaneous
Iron and steel
0.9 Non-ferrous metals-'
paint materials—
0.1
—.—„
0.1
I
0.1
commodities
which
general level »f primary market prices. This index should
be distinguished from the daily index of 28 commodities.
For the most part, prices
are
those- charged
by manufacturers or producers or are those prevailing on com¬
measures
changes
in
tne
exchanges.
The weekly index is calculated from one-day-a-week
designed as an indicator of week-to-week changes and should not
directly with the monthly index.
-
modity
prices. It is
be compared
.
Engineering Construction Totals
§05,160,000 for Week
Civil engineering
Materials
Machinery
All groups
1926-28
on
1946,
...
combined
base
were
'
May
222.6
144.5
240.3
317.8
147.4
302.0
433.1
163.1
241.1
247.6
175.7
335.4
327.8
261.7
243.9
258.3
174.1
227.7
235.6
162.9
169.8
170.3
158.1
158.6
134.5
215.0
216.5
166.7
147.9
148.3
117.9
203.3
203.4
167.8
156.9
158.4
127.5
127.5
127.6
116.6
134.5
133.7
119.8
observe
125.5
126.3
105.8
if it desired,
195.6
199.5
145.8
153.2;
1947
10,
May
construction volume in continental
May 8 went on to say:
$41,724,000 is 24% less than last
week, and 46% below the week last year.
Public construction,
$53,436,000, is 12% above last week, but 11% less than the week last
.year.
State and municipal construction, $36,279,000, 10% above last
and
152.4;
Consumer
credit
outstanding
about
March, a
somewhat larger rise than in the two preceding months.
Repair
and modernization loans outstanding, which customarily show sea¬
sonal gains in March, increased 4% during-the month.
Instalment credit outstanding on automobile sales continued to
increase in March and at the end of the month was 9% larger than
Feb. 28.
Other instalment sale credit outstanding rose 2% to
by about 3% in
on
$1,002 millions.
Charge accounts receivable,
rose $173 millions or about 7%
prewar
February.
levels.
_
which customarily increase in March,
from the amount outstanding at the
This type of indebtedness continued well above
CONSUMER CREDIT
(Short-term
OUTSTANDSNG
In millions of dollars.
credit.
Feb. 28,
credit
+
10,047
—.—
Instalment sale credit:
Automobile
Other
■(■Instalment
-—
—
——-
——
loans
Charge accounts
Single-payment loans
■.
•Includes service credit
•(Includes repair and
689
1,002
—L.—L'-,2,638
——:——
2,775
2,066
not shown
1947
March 31, 1947
..
consumer
legislators explaining
designed to meet com¬
munity wishes.
that it was
Harrisburg, Pa., advices to
Philadelphia "Evening Bulle¬
tin"
by Robert F. Hill of the
separately.
modernization loans. » j
+
+
331
58
24
stated:
designed to .provide a
five-day week for bank
clerks
throughout the State, is a permis¬
sive measure and has been inter¬
preted
areas
Decrease
Mar.
31,
1946
+
3,059
+
425
+
361
.
+
87
„
+
173
+
803
14
+
361
as giving banks in
the right to close on;
The
measure,
duced
by
rural
other
them
days if it is necessary for
to stay open on Saturdays.^
/,
originally',^intro¬
Fraziep,. / was
feti^u'rels pro¬
Senator
amended to include
LorqTn^lUain^g
posed by Senator
permissive instead pf a mamdatory requirement. It*passed 4he
the
Senate April 7 by a
and
.
tx
-provide#
bill
The
,yote! o"f -4jf 'tj>
-.by {■<»
April
the House
vote of 121 to 48.
0
give 15 days'
must
Figures estimated) or
Increase
From
•Total
would permit any bank to
Saturday banking hours
The bill,
$330 millions
millions
approxi¬
April 30, by the
With the
all types of indebtedness showec
increased
exception of single-payment loans,
moderate gains, the announcement added.
Instalment loans outstanding increased
of
also
"Bulletin" staff, it was
Outstanding in larch
during March to an estimated total of $10,047
or
mately the prewar peak level, said a report issued on
Board
of Governors of the Federal Reserve System.
end
Banks
Pennsylvania on
May 1 signed a bill passed by the
State Legislature permitting;
banks in the State to close on
Saturdays throughout the year. It
was stated on April 23 when the
bill passed the House that the bill
In
United States
$95,160,000 for the week ending May 8, 1947, as reported by
"Engineering News-Record." This volume is 7% below the previous
week, 31% below the corresponding week of last year, and 11%
below the previous four-week moving average.
The report issued
Private construction this week,
130.8
By Pa.
of
Duff
Gov.
the
totals
on
1947,
3,
Sat. Closing
113.6.
Consumer Credit
0.6
products--'—™
urer.
215.9
196.7
Drugs—
0.
_
Petroleum
Cotton
Farm
11,
Ago
1946
1947
0.9
Lumber
Crude
.3
•Indexes
1.2 Woolen and worsted goods
1.0 Furnishings
6.9
fats—
Fertilizer
and
Fertilizers
100.0
INDEXES FROM
1947
Decreases
Leather
.3
+27.2
Clothing
Cereal
Washington, with Gary
125.5
Chemicals
+34.8
Increases
Hides
maintained in
M. Under¬
bill as Executive Director. Other
Washington
staff members are
Robert
R.
Spooner,
SecretaryTreasurer, and Margaret E. Gold¬
smith, Assistant Secretary-Treas¬
offices are
ecutive
134.5
Building Materials
.3
+
Bankers Associ¬
72 member banks*
which
operate
in
87
cities
throughout the United States. Ex¬
The Consumer
127.5
Metals
6.1
banking
daily
ation now has
1947
.
7.1
'
103.6
132.3
SUBGROUP
IN
CHANGES
PERCENTAGE
I
132.4
132.0
131.8
and foods
104.3
"
'
s
141.7
141.1
140.1
140,6
products
commodities other than
their
this year.
duties
157.5
Commodities
Textiles
8.2
2.8 +29.5
2.3 +40.1
0.4 +34.8'
from
time
203.3
Fuels
All commodities other than
Farm
annual
157.9
—
.—
1.3
Semi-manufactured articles..
Manufactured
161.3
142-2
materials
0.3
0.2
+
immediately preceding the
meeting of the American
Bankers Association, was to en¬
able
members
to
attend both
meetings with a minimum loss of
City,
232.5
Cotton
10.8
commodities^
principal reasons for deciding to
the convention in Atlantic-
nold
344.9
Livestock
134.5
said that one of
246.5
Farm Products
23.0
community.
the
member in any
Mr. Birnie
302.0
Grains-
0
177.8
132.5
one
227.8
Oil,
Cottonseed
revised.
petitive policy of the Association
to be maintained, i.e., having only
May 11,
__
Oils
and
Fats
were
permit additional members for
the first time, with the non-com¬
to
147.9
3.0
106.7
103.9
178.4
and by-laws
216.4
120.3
139.3
104.1
178.0 f
tution
169.8
174.3
138.8
103.9'
130.5
general banking busi¬
time, the consti¬
At the same
ness.
250.2
Foods
25.3
172.5
137.8
128.6
were
gaged in a
214.6
Total Index
the."Morris.
longer had
words
their corporate names,
for the most part en¬
in
1947
171.9
178.5-
no
distinguishing
Year
Ago
members
its
Plan"
Apr. 12,
May 3,
May 10,
Group
Bears to the
140.7
Building materials.———Ji
Chemicals and allied products™.
Miscellaneous
146.8
Week
Week
the name
under
changed to its current designation*
in view of the fact that most of
in the
Month
Preceding
Latest
Bankers
..organized at
was
1919
National Fertilizer Association
Each Group
104.0
materials,,
metal products-™
and
+ 33.5
166.7
products
Fuel and lighting
Metals
1.4
0.1
138.0
and leather products
Hides
The Consumer
in
1935-1939=100*
%
162.7
products
Compiled by The
5-4
1946
174.6
Foods...™.
Textile
4-5
1947
146.7
All commodities.
Farm
1947
1947
1947
1947
4-26
1947
5-4
1946
4-5
4-19
4-26
5-3
The
Associ¬
Cleveland
"Morris
Plan Bankers Association," and its
first annual conventionJ was held
New Capital
the< following year in Chicago. At
construction purposes this week totals $17,168,000 the 26th convention, held last fall
1
ation
Commodity Price Index Moves Upward
FOR
General Convention
announcement in
as
Chairman.
the matter says:
Association Wholesale
CHANGES IN WHOLESALE PRICES BY
Duluth*
Bank,
State
Minn.,
Prices of fruits and vege¬ and is made up of $8,418,000 in state and municipal bond sales and
tables averaged 1.5% higher.
Substantial price increases were re¬ $8,750,000 in corporate securities. New capital for construction pur¬
poses for the 19-week period of 1947 totals $590,542,000, 18% greater
ported for the new crop of white potatoes at Boston, but there were
small declines from pervious high levels in other markets.
Prices of than the $498,885,000 reported for the corresponding period of 1946.
apples, oranges and onions also advanced.
There were declines for
dried fruits, bananas and sweetpotatoes.
Wheat flour prices declined
National Fertilizer
with grains.
Lower prices of corn, together with abundant supplies,
caused decreases for corn cereals and corn syrup.
Lower costs and
improved supplies caused further substantial decreases in prices ol
animal and vegetable fats and oils, black pepper and coffee.
Tea
During the week ended May 10, 1947, the weekly wholesale com¬
prices were up sharply. As a group foods were 47.0% above the cor¬
modity price index compiled by The National Fertilizer Association
responding week of last year.
and made public on May 12, rose to 196.7 from 195 6 in the preceding
"Other Commodities—Prices of all commodities other than farm
week.
This is the first time that the index has advanced from the
products and foods decreaied 0.2% as a group. Further declines were level of the preceding week since the week ended March 29, 1947.
A
reported for a number of commodities, including inedible fats and month ago the index stood at 199.5 and a year ago at 145.8, all based
oils and scrap steel among industrial commodities and cotton goods
on the 1935-1939 average as 100.
The Association's report added:
and soap among consumer goods.
The decrease for hides and leather
During the week four of the composite groups in the index ad¬
products was due chiefly to lower prices for some leathers, not pre¬ vanced while two declined; the other five remained at the level of
viously reported. Higher quotations were reported for redwood lum¬ the preceding week.
Higher prices for cotton, grains, and livestock
ber and further increases occurred for Ponderosa Pine.
Prices of caused the farm products index to advance. The textiles index ad¬
Douglas Fir lath and shellac were lower. Higher prices were reported vanced slightly, as did the index for chemicals and drugs.
An in¬
for fuel oil and kerosine.
A few additional mines lowered prices of crease in the price of sand was responsible for the rise in the index
anthracite.
Increased foreign supplies caused small decreases for for the building materials group. Prices for most meats, cocoa, ham,
mercury and bar silver.
Crude rubber quotations also declined. In¬ and potatoes rose but the lower prices for butter, cheese, eggs, coffee,
creased piece goods costs resulted in higher prices for men's suits, and
and most fats and oils caused the foods index to decline.
The higher
burlap quotations were higher in anticipation of increased demand.
quotations for hides, wood pulp, and middlings were not enough to
As a group, cattle feed prices were up, with substantial advances
offset the lower prices for leather, rubber, cottonseed meal, and lin¬
for bran and middlings, in demand for poultry feed, and decerases
seed meal, with the result that the index for the miscellaneous com¬
for cottonseed meal and soybean meal, in abundant supply.
One modities group declined.
company raised prices of electric ironers."
During the week 26 price series in the index advanced and 24
•r
North¬
President of the
western
milk.
and evaporated
decrease for cheese
J.,
September 25-27, it isi announced,
by Joseph E. Birnie, President of
The Bank of Georgia, at Atlanta,,
and current President of the Na¬
tional Association. At the same
current week,
construction volume for the
engineering
N.
City,
Atlantic
Brighton,
date, is 37% above 1946.
$185,280,000, dropped 13% below the 19-week
1946.
of
Civil
Bankers
held at The
will be
Association
construction, $550,061,000 to
Federal construction,
a
annual national con¬
27th
The
vention of the Consumer
1947
Public
1946.
of the
Bureau's
Department of Labor, which on May 8 said that at 146.7%
1926 average, the lowest level since early March, "the
index of commodity prices in primary markets was 33.5% above
To
totals $1,104,646,000 which is 4% below that for
construction, $735,341,000, is 20% greater than the
cumulative total for the corresponding period of 1946, whereas state
struction in
the
primary market prices decreased' 0.1% during
week ended May 3,. 1947, according to the Bureau of Labor Statistics,
Bankers'
Meet in Atlantic Cily
Consumers
week last year.
engineering construction for'the 19-wedk' peritid OP 1947
records a cumulative total of $1,839,987,000, which is 4% above the
total for a like period of 1946. On a cumulative basis, private con¬
*
Average
U. S.
construction, $17,157,000,.
Total
Mag 3, Labor Department Reports
Ended
15, 1947,
Thursday, May
CHRONICLE
& FINANCIAL
THE COMMERCIAL
(2656)
,'vky■"/;
,
V'l®il-)aa^ks
notice do 'thfe
contemplated chapges>i;a
It is expected that a num¬
public of
closing.
ber
of
ally in
bank directorates,
day to act
+1,036
The
those
especi¬
Philadelphia, will meet
under
first
Saturday closing
banks
to¬
the"bill/'
adopt it, would be
for
immediately
on May 17.
which
Volume 165
THE COMMERCIAL & FINANCIAL
CHRONICLE
Number 4594
(2657)
i
Daily Average Crude Oil Production for Week
~
'•
#
K
;
■ i
Ended
Weekly Goal and Coke Production Statistics
"
'
-
May 3,1947 Increased 20,800 Barrels
The American Petroleum Institute estimates that the
The total production of
bituminous coal and lignite in
ended
Mines,
day over the pre¬
per
ceding week and a gain of 229,500 barrels per day over the corre¬
sponding week of 1946.
in
The current figure
fey the United States Bureau of Mines
month of
also 100,700 barrels
was
of the daily average figure of 4,850,000 barrels estimated
excess
April, 1947.
requirement for the
the
as
Daily output for the four weeks ended May; 3,
1947 averaged 4,926,400 barrels.
The Institute's statement adds:
whole
as a
to stills
ran
on
barrels of gasoline; 1,904,000 barrels of kerosine; 5,294,000 barrels of
7,836,000 barrels of residual fuel oil during the
week ended May 3,
of
10.1%
when
compared with the
1947; and had in storage at the end of that week
ESTIMATED
103,505,000 barrels of finished and unfinished gasoline; 9,560,000 bar¬
UNITED
STATES
PRODUCTION
(In Net
rels of kerosine; 31,899,000 barrels of distillate fuel, and 42,944,000
•
May 3,
Bituminous coal &
AVERAGE
CRUDE
OIL
•B. of M.
••♦New
York-Penna
Week
Ended
May 3,
♦Revised.
Ended
Ended
May 3,
Week
1947
1946
49,850
48,750
250
+
1,200
7,600
+
150
7,750
7,300
♦Total
•♦Ohio—Southeast -1
Ohio—Other
8,000
.
+
550
6,450
5,800
{Commercial
100
+
2,450
.Indiana
'•
2,700
2,550
18,200
+
150
18,200
136,700
+
500
185,900
211,800
29,000
24,950
—
47,000
39,700
—
„
_
Nebraska
500
{600
iKansas
275,000
tOklahoma
600
{385,800
—
277,300
363,700
650
382,000
20.850
+
100
158,350
+
350
158,100
—
District II
District
III
District
IV
District
V
431,900
•Other
850
111,550
and
State
are
2,120,000 *2,186,125
Louisiana—'..!
•
or
79,000
-
450
136,300
400
84,950
.Arkansas
2,170,500
74,400
650
96,450
85,200
313,650
291,450
410,100
650
376,650
'
106,000
Montana
24,000
38,000
.Total
Montana
4,850,000,
Unit^tates-
ri I
>
57,050
102,800
450
3,200
114,900
105,750
900
22,600
20,050
550
37,300
26,850
910,050
860,70U
+20,800
4,926,400
4,721,200
'
t
4,950,700
*>*■
«
■
+
-•
' 64,300
:
1,900
+
64,200
62,950
'
'
•
Y *Theso are Bureau of Mines calculations of the requirements of domestic crude oil
"'tmsed upon certain premises outlined in its detailed
forecasts.
They include the
.•condensate that is moved in crude
pipelines.
The A. P. I. figures are crude oil only.
As requirements may be
supplied either from stocks or from new production, con.
15,000
-templated withdrawals from crude oil inventories must be deducted, as pointed out by
the Bureau, from its estimated
requirements to determine the amount of new crude
mately the
435,000
14,000
41,000
42,000
"to
be
produced.
1,000
if
$
{This Is
.Includes
'^shutdowns
lor
4
the
days,
required
no
to
basic
net
shut
'operate leases,
allowable
are
of
as
for
week
ended
exemptions
were
Texas
down
SRecommendation
46,000
70,000
24,000
activity. The balance
913,000
55,000
38,000
of
43,000
27,000
3,053,000
3,118,000
40,000
141,000
131,000
8,000
4,000
1,000
152,000
.3,000
417,000
Virginia
3,000
152,000
366,000'
11,000
______
>
.
20,000
2,603,000
1,248,000
125.000
.150,000
.
JOther Western States
!
54,000
48.00C
,
:',..4i00r
1,000
■
f
,
Total
bituminous and lignite
{Includes operations
the B.
&
O.
in
on
12,860,000
12,850,000'*
the N. & W.; C. & O.;
Virginian; K.
& M.; B. C. & G.; and
{Rest of State, including the
Slncludes Arizona and
Kanawha, Mason and Clay Counties.
Panhandle District and Grant, Mineral
Oregon.
♦Less than 1,000 tons.
and
824,000
Tucker
Counties
RUNS
AND
TO
7:00
a.m.
May
1,
1947.
as
of
best
suits
April
their
Conservation
STILLS;
operating
schedules
United States Savings Bonds Issued and
Redeemed Through March 31,1947
Committee
of
or
labor
needed
to
(Dollar amounts In
during the calendar month.
PRODUCTION
California
Oil
millions—rounded
and
will
not
necessarily add to
Figures
1
..
♦Amount
t*
.
of barrels of 42
in
estimate
,•
v
this
of
reported
amounts
Bureau
of
and
Mines
are
to Stills
Capac.
Daily
Report'g Av.
District—
Coast;
—J
Product'n
totals plus an
therefore on a
basis—
tStks. of tStks.
§Gasoline {Finished
Crude Runs
Refin'g
{Stocks
% Op¬
Inc. Nat.
Gasoline
erated
Blended
Stocks
of
& Dist.
Resid.
Kero¬
Fuel
Fuel
sine
Unfin.
Gas, Oil
of
and
at Ref.
Oil
Oil
..
■
,
$11
95.69
423
39
91.56
Series
C-1937
583
275
{308
47.17
654
148
505
807
20.00
216
981
18.06
518
82
436
15.83
$4,677
$1,590
$3,087
Total Series A-D__
Series E:
4,422
9,357
6,006
2,593
1,138
179
391
246
39
75
21,333
10,199
1,306
2,660
375
1,104
934
Series
Series
Series
E-1945
Series
E-1946_„
1,342
Inland Texas \{—
Texas <?ulf Coast
59.8
223
67.6
1,059
4,394
214
298
1,058
86.3
3,069
14,013
1,255
5,199
5,138
97.4
378
117.8
1,031
5,530
721
1,862
989
55.9
52
41.3
147
2,047
205
401
100
19.0
12
92,3
39
77
15
35
47
70.9
118
71.5
371
2,957
64
482
678
85.5
812
81.7
2,355
16,289
765
10,035
26,051
Rocky Mountain—
,,New Mexico
Rocky Mt
U. S.—B.; of M.
1947—
85.8
4,816
86.6
14,383 n03,505
85.8
4,725
85.0
14,213
9,560
31,899
42,944
9,724
32,286
42,668
May
»■
4,
of
M.
Series
Total
.
basis
1946.:
—
the
expenditures in
diiq mostly .to gains in.
the Types of activity : which nor¬
mally rise sharply at this season,
Margjl
was
such as public utilities, streets and
highways, and farm construction.
Public
utilities
expenditures in¬
by 17% to reach a'March
$90 million and to provide
employment to 182,000 workers.
Street and highway construction
accounted for expenditures of $51
4,664
-
-I-
13,788
{98,196
11,042
32,485
40,039
and. in pipe lines. " §ln ~ addition, there were
produced 1,904,000 barrels of kerosine,
5,294,000 barrels of gas oil and distillate fuel oil and 7,836,000 barrels of residual fuel oil
In the week ended-May-* 3,-4947) as,
compared with 2,123,000 barrels, 5,435v000 barrels
and 8,186,000 barrels,
^respectively,. in the * preceding week and 1,917,000 barrels,
5,346,000 barrels and 8,861,000 barrels, respectively, in the week ended May 4,' 1946.
.
38.45
4,902
7,722
38.83
3,539
6,334
35.85
824
19.04
10
3,504
§1,009
$46,690
$15,867
$30,823
33.98
.98
redemptions:
A-E
98
A-E
$51,367
$33,812
34.18
1,527
F
and
G-1945-
Series
F
and
G-1946
F
and
G-1947
Series
G-1944
l,35l
11.53
415
2,764
13.05
3,353
F
176
3,179
Series
and
26%, respectively,
all
financed
426
2,927
3,348
12.71
3,685
(3
337
3.141
•
179
2,962
a
in
ago
year
and
repairs,
all
46
2,946
1.54
expenditures
•♦Less
totaled
of
1947,
increase
an
G
$18,763
Private
1946.
tures of $879
as
builders'
expendi¬
million for non-farm
repair
and
were
the
same
private
time,
work,
the first
non-residen¬
on
increase
an
At
builders
of
18%.
quarter of 1946, in,
spite
$17,183
of
the
this
in
drop
year.
commercial
Construction
by public utilities
was
50%.
8.42
times
as
much
-
agree
than
38%
nearly 50% larger than during the
building
885
$1,580
of
9.15
$70,130
$19,136
$50,995
27.29
♦Includes accrued discount.
{Current redemption values. {Includes matured
bonds,
have not been presented for payment.
Slncludes $33 million reported on public
debt stattement as "unclassified sales."
flincludes Series A and B
Statement.
classifications
compared with the first quarter of
over
which
not
Is
With the inclusion of minor build¬
tial
5.70
2,992
885
months)
series—
therefore, does
work
except commercial establishments.
work
F
Feb¬
over
running well ahead of the level of
higher, while 2V3
IITotal
engaged
ruary.
spent $938 million
Series F and G-1941
Series F and G-1942
Series F and G-1943
Total
and
first three months of last year.
—98
$17,555
Series F and G;
and
March
homebuilding
Series E
series
in
82,000 workers—an increase of 19
32.43
6,648
§1,019
♦Includes, unfinished
gasoline stocks of 9,005,000 barrels.
{Includes unfinished
gasoline "stocks of 8,131,000 barrels.
{Stocks at refineries, at bulk terminals, in transit
4,455
4,153
4,328
months)
Series
103,860
2,138
9,873
(3
Series
Total U. S.—B. of M.
1947
Total
E-1947
Unclassified
20.78
12,624
745
89.2
1,151
6,592
89
2,596
36.6
302
10,801
E-1942
1,921
236
92.8
B.
were
"The moderate increase in total
construction
ing
1,453
E-1944
108.1
V.
highways
$2,687 million for the first quarter
E-1941
Series
67
basis April 26,
and
34.00
I
Series D-1941
22,935
406
total
streets
22.63
202
1,196
C-1938
Series D-1939___
Series D-1940
Series
'
1,010
Series
280
807
basis May 3,
v
$244
462
1,858
84.7
California
•
$255
65.7
■
*
various
most important components.
"Privately
(matured)
(matured)
94
78.3
Louisiana Gulf CoastNo, La. & Arkansas
Amt. Issued
A-1935
94.0
87.4
Other
made up
and
Redeemed of
Outstdg.
B-1936
Series E-1943
District No. 2^
{Amount
Series
76.3
District No. 1
*Amount
Redeemed
A-D:
789
Ind., 111.1, Ky.„_
tOkla., Kans., Mo
v
'
Series
99.5
•Appalachian—
.
Issued
Series
gallons each)
include
section
unreported
—
% Daily
East
construction
was
construction
million
totals)
Producers.
OF
GASOLINE; STOCKS OF FINISHED
UNFINISHED GASOLINE,
KEROSINE, GAS OIL AND DISTILLATE
FUEL AND RESIDUAL
FUEL, OIL, WEEK ENDED MAY 3, 1947
'•'!
H
farm
constituted
total
total of
entirely
(Figures in thousands
.
72%
types of non-building construction
of
which
public
utilities
and
2,000
2,388,000
994,000
-
8,000
Percent
CRUDE
of
1,000
(bituminous and lignite)
residen¬
as
building
about
28,000
(lignite)
Washington
fWest Virginia—Southern
fWest Virginia—Northern
Wyoming
the
for
exempted
total equivalent to 4 days shutdown time
a
residential
42,000
Utah
1 calculated on a 30-day basis and
entire month.
With
the
exception of
and for certain other fields for which
ordered for from 4 to 12 days, the entire State was ordered shut down
definite dates during the month
being specified; operators only being
and
which
were
level
creased
shutdowns
fields
same
29,000
(bituminous)
dropped
approxi¬
to
building (including public and
private, new construction and re¬
pair work). Non-residential and
52,000
,
tOklahoma, Kansas, Nebraska figures
\-several
funds
March
57,000
Tennessee
m
and
tial
42,000
'
•
,
;
in
43,000
-
Pennsylvania
ac¬
from
private
5%
38,000
Oklahoma
5,100
913,400
with
about
112,000
Ohio
1,150
95,300
—
ing
459,000
Dakota
era-
and
repair in
private finan¬
New non-residential build¬
1,168,000
105,000
o
and South
550
—
<»
building
807,000
Morth
86,550
—
Workers
expenditures of
were
1,305,000
-
(bituminous and lignite)
500
22,250
15,000
Missouri-
Mexico
100
8 JO
cing.
318,000
527,000
.
300
+
37,650
§843,200
^♦Pennsylvania Grade (included above)—
f
77,950
1,000
1,308,000
38,000
and
+
113,300
.
860,000
6,000
March
1,000
.
•California
.
73,850
450
Wyoming
96,000
idential
34.00C
526,000
Kentucky—Eastern
Kentucky—Western
Maryjand
+
■
103,400
Mexico—Other—j
Colorado
11.00C
1946
1,362,000
—
Michigan
,
900
+
87,000
112,000
7.000
17,000
—
Iowa
2,114,800
Apr. 27,
•
for
million in
6,000
.—
Illinois
+17,350
Apr. 19,
559,000
$332
March, showing gains of
13,000 workers and $20 million
over February.
Nearly 9 of every
10 dollars put into non-farm res¬
ship¬
from district
1947
Georgia and North Carolina
+
750
river
over
"Homebuilding and repair
counted
358,000
Alaska
37,100
1,400
and
from last year.
ployed
98,000
+
+
carloadings
on
tapering-off of
carried
worK
19,000
Colorado
+
flEstimated from
6,000
36,350
82,693
102,000
railroad
work started in
new
March to offset the
authorized
423,000
489,100
2,100
,*3Srew Mexico—So. East)
on
January level due to failure of
the volume of
1947
150
84,000
Alabama
based
are
Apr. 26,
12,650
411,700
447,000
from
receipt of monthly tonnage reports
of final annual returns from
the operators.)
+
314,200
410,000
Mississippi
v
the
Alabama
rr
.•Arkansas
CNew
1,317,600
and
Week Ended
Mew
■
19,486,000
1,214,700
+
+
"Total expenditures of $913 mil¬
for all types of construction
in March were about 1% below
lion
20,465,000
+
97,500
Total Louisiana-.—
„
1937
2,070,800
250
Louisiana
•
:
May 8,
1946
2,000
State-
Kansas
SNorth
Coastal
May 4,
1947
138,700
350
2,183,500
higher costs.
-Calendar Year to Date-
May 3,
1946
128,600
subject to revision
sources
con¬
during February and
March and resistance
to
early
May 4,
1947
weekly estimates
Indiana
Total Texas
COKE
20,512,000
+
136,650
85,250
X
AND
21,284,000
36,450
IX
District
ANTHRACITE
19,140,000
18,403,000
478,600
VIII
District
165,326,000
1,573,000
1,409,000
1,355,000
37,350
VII-C
District
and
335,200
111,750
VI
+
ments
The Bureau's advices
"Failure of construction to at¬
tain tne expected volume has been
attributed to unfavorable weather
1946
2,043,000
PENNSYLVANIA
38,050
VII-B
District
1947
212,707,000
1,071,000
1,030,000
washery
it
few months
a
tinued:
May 4,
91,000
242,050
100
generally predicted
1,052,000
total
(The current
480,950
400
+
335,850
Dist.
District
1,300
+
38,150
East Texas
+
242,350
States
peak,
falls short of the high
spring level
545,000
§ April 26,
1,094,000
March level of activity
since 1942, when the war construc¬
tion program was at its
ESTIMATED WEEKLY PRODUCTION OF
EITUMINOUS COAL AND LIGNITE
BY
STATES, IN NET TONS
20,800
I
pioduc.
are
highest
2,143^000
dredge coal and coal
shipped by truck
jperations
{Excludes colliery fuel.
{Subject to revision.
§Revised.
weekly carloadings reported by 10 railroads.
244,650
Texas—
District
1946
workers at the site
as
conditions
1947
coll. duel
♦Includes
750
1,450
—
{279,750
378,125
380,000
550
.
iiUnited
31,150
46,050
25,100
41,500
incl.
{May 3;
Beehive Coke—
19,250
210,000
Illinois
^Kentucky
Michigan
1947
OF
{May 3,
Penn. Anthracite—
wen
included, said the Bureau, which
added that "although this is the
ago."
(In Net Tons)
-Week Ended-
51,100
600
Statistics, U. S. Department of La¬
bor, made available on April 20.
Central office and
shop employees,
as
12,860,000
12,570,000
2,095,000
PRODUCTION
'.
6,850
8,000
estimates of the Bureau of Labor
Jan. 1 to date——
'
49,200
__
employment for 1,605,000
workers, according to preliminary
Tons))
May 4,
7% in March and pro¬
rose
vided
BITUMINOUS COAL AND LIGNITE
{Subject to current adjustment.
ESTIMATED
May 4,
550
Virginia
including mine fuel—
average
Week
4 Weeks
from
Previous
1947
Florida
♦♦West
Total,
BARRELS)
IN
Change
ables
Begin.
Apr. 1
April
(FIGURES
OF
♦April 26,
1947
—Actual Production—
Allow¬
Calculated
Requirements
lignite—
Daily
PRODUCTION
State
-
activity as meas¬
by the value of work put iii
place
corresponding
—Week Ended
barrels of residual fuel oil.
DAILY
Construction
ured
The Bureau also reported that
the estimated production of bee¬
hive coke in the United States
for the week ended
May 3, 1947,
showed a decrease of 10,100
tons when compared with
the output for
the week ended April
26, 1947; and was 126,600 tons more than for
the corresponding week of 1946.
mately 4,816,000 barrels of crude oil daily and produced 14,383,000
distillate fuel, and
decrease
a
period of 1946.
Bureau of Mines basis approxi¬
a
was
shows
Reports received from refining companies indicate that the in¬
•
dustry
Up in March
Says Labor Hep}.
the week
May 3,
1947, as estimated by the United -States Bureau of
12,570,000 net tons, a decrease of 290,000
tons, or 2.3%
from the preceding week.
Output in the corresponding week of 1946
amounted to only
545,000 tons because of the miners' strike.
During
the current calendar
year to May 3, production of soft coal
approxi¬
mated 212,707,000 net
tons, an increase of 28.7% over the 165,326,000
tons produced in the
corresponding period of last year.
Output of Pennsylvania anthracite for the week
ended May 3,
1947r as estimated by the Bureau of
Mines, was 1,094,000 tons, an
increase of 23,000 tons
(2.1%) over the preceding week. When com¬
pared with the production in the
corresponding week of 1946, there
was a decrease of
315,000 tons, or 22.4%. The calendar
year to date
daily aver¬
crude oil production for the week ended May 3, 1947 was
age gross
4,950,700 barrels, an increase of 20,800 barrels
13
it
with
totals
$500,000.
'
Under
(matured),
interest-bearing
debt
on
Public
and
was
spent
on
construction
of 1947
as
street and highway
in
the
in the
Debt
1946."
"
-
first
Same
quarter
period of
\
14
New York Exchanges
on
New York Stock Exchange
ended April 19, continuing
a series of current figures being published weekly by the Commis¬
sion.
Short sales are shown separately from other sales in these
members of these exchanges in the week
figures.
Trading on the Stock Exchange for the account of members
(except odd-lot dealers) during the week ended April 19 (in roundlot transactions) totaled 2,565,700 shares, which amount was 17.01%
of the total transactions on the Exchange of 7,542,070 shares.
This
week ended April 12 of
1,659,820 shares, or 16.14% of the total trading of 5,145,310 shares.
On the New York Curb Exchange, member trading during the
week ended April 19 amounted to 464,415 shares, or 13.88% of the
total volume on that Exchange of 1,673,550 shares.
During the week
ended April 12 trading for the account of Curb members of 331,590
shares was 13.98% of the total trading of 1,186,180.
with member trading during the
compares
on the New York
Transactions for Account of
Stock Sales
Total Bound-Lot
WEEK ENDED
Stock Exchange and
Members'* (Shares)
Offerings
have
erage
Foreign
er
Total
Total
The
21,450
—
at a
206,370
<
sales—
264,210
1,173,800
147,130
purchases
Short
sales
J Other
sales
1,244,770
sales
1,391,900
Total
;
Total Bound-Lot Stock Sales on the New York Curb
Transactions for
Total
sales
Total
3. Other
the floor26,030
European consumers
willing buyers of lead
been
premium.
10,300
tOther
sales
32,820
compares
sales—
sales
208,975
short
sales
.
totaled
April
paid
tons,
163,697
The
tion
less fea¬
May
New
ISales
marked
with "other sales."
"short exempt" are
quota¬
yesterday to
issue of May 8,
the domestic
market and tjie volume was sufficient to lift "E. & M. J. M. &
M. M.'s" average quotation more than lJAc per pound. The tonnages
sold for consumption in this country in the last two days of the week
were
not impressive.
There were indications that important con¬
sumers
were
confused over the^
Copper
price situation and disposed to (1)
reduce their inventories and (2)
After hesitating for most of the
eliminate copper from their prod¬
week, domestic consumers pur¬
"E. & M. J. Metal and Mineral Markets," in its
"Duty-free
figured in transactions in
copper
ucts wherever this could be done
conveniently.
trend
with
Lead
toward
In other words, the
a
opposition from
and
zinc
were
Silver declined 2c
inum
sten
market
24c
met
consumers.
unchanged.
an ounce.
Plat¬
dropped $4 an ounce. Tung¬
was
higher."
The
publica¬
tion further went on to
part as follows:
say
in
chased
foreign
duty-free
copper
beginning with May 6 on the basis
virtually at 24c
delivered Connecticut Valley. A
custom smelter booked the busi¬
of 23.75c, f.a.s., or
ness on
May 6. On May 7 another
foreign cop¬
-
May
PRICES
OF
METALS
Exp. Refy.
Refy.
the
ing
market
declined
recent
weakness in
AND
STOCK EXCHANGE
Odd-Lot Sales by Dealers—
(Customers' purchases)
&
M.
J."
York
Number
New York
St. Louis
Customers'
short
sales
657
other
sales
Customers'
total
sales
18,646
19,303
80.000
15.000
14.800
10.500
23.675
80.000
15.000
14.800
40.500
23.675
80.000
15.000
14.800
10.500
Customers'
short
salcs__.
23,683
15.000
14.800
10.500
•Customers'
other
sa:esT^.
10.500
Customers'
total
sales—
528,429
552,112
80.000
23.675
6
22.525
23.700
80.0QO
15.000
22.865
23.675
80.000
15.000
14.800
80.000
14.800
Number of Shares:
10.500
15.000
10.500
23.679
21.715
Average—
f.o.b. refinery, 21.225c; export copper,
Number of Shares:
Short
f.o.b. refinery 23.675c;
Straits tin, 80.000c; New York
St. Louis zinc, 10.500 c.;
and silver 74.175c.
lead and zinc quotations are
tin quotations are for prompt
deliveries;
prompt and future
prices are quoted on a delivered basis: that is,
delivery charges vary with the destination, the
at refineries on the Atlantic seaboard. Delivered
prices in New England average 0.275c per pound above the refinery basis.
"E. & M. J. M. & M. M.'a" export quotation for copper reflects prices obtaining in
the open market and is based on sales in the foreign market reduced to the f.o.b.
refinery equivalent, Atlantic seaboard.
On f.a.s., transactions, 0.075c is deducted for
lighterage,' etc., to arrive at the f.o.b. refinery quotation.
the
In
at
delivered
trade, domestic copper
consumers' plants.
As
above
shown
figures
are
net prices
for copper are for the ordinary forms, of
ingots an extra 0.075c per pound is charged;
up, depending on weight and dimension;
Quotations
For
standard
for
cakes
up,
depending on
discount
0.225c
of
0.125c
dimensions and quality.
per pound.
Quotations for zinc
are for
wirebars and ingot bars.
fop slabs 0475c up,, and
for billets an extra 0.95c
Cathode^ in standard sizes are sold at a
ordinary Prime, Western brands.-
Contract; prices for
in the East and Middle West in nearly all instances com¬
premium of }c per popna pvpr the purrent market iot Prime Western but
than lc over the "E. & M. J." average for Prime Western for thq previous
the premium on Special High Grade in most instances is \V*o. ' <
High-grade zinc delivered
a
less
month;
Quotations for lead reflect
sales in the Chicago,
135,129
292,619
shares--
of
fSales, marked I'shprt-exempt"
ported with "other sales."
-
are
■
re¬
:
to offset customers' odd-lot or¬
and sales to,liquidate a long position
tSales
ders
reported
which is less than a round lot are
"other
with
sales."
Wm. E. Warne Named
,
Asst Sec'y of Interior
A
on
White
House
;<
;;
announcement
May 7 stated that William E.
of
California had
been
Warne
nominated
by President Truman
Secretary of the
succeeding Warner W•
Gardner, who, is resigning, effec¬
tive
June
30, Associated Press
Washington advices stated.
Mr*
to
be, Assistant
Interior,
Warne, a former newspaper man,
entered the Departmeht in 1935,
and since July 1943
has >een As^
The differential
jqrpoints uwfexjfeuf^orj^for New England^dd sistqnt, Commissioner - of |tecla«*
mation.
•
^
basis.
prices qbtafnfdjfir, ponunop Ipat} only.
district;
points to the New York
—
.Tptah-sale^—v—
,
•
based on sales for both
delivery only.
9
135,129
—
Rbuhd-Lot Purchases by Dealers—
Number
quotations are "E. & M. J. M. & M. M.'s" appraisal of the major United
States markets, based on sales reported by producers and agencies.
They are reduced
to the basis of cash, New York or St. Louis, as poted. All prices are in cent^ per pountf.
Copper,
sales.
tOther sales
lead 15.000c; St. Louis lead, 14.800c;
The above
1- $19,971,783
Dollar value—
Round-Lot Sales by Dealers-
May 3 are: Domestic
five
—-
•Customers'
St. Louis
7
on
shares
of
Number of Orders:
Zinc
Lead
of orders——.——
value
Dealers—
(Customers'sales)
May
mand
t
Total
For Week
24,034
685,126
$26,030,719
Odd-Lot Purchases by
QUOTATIONS)
Straits Tin,
New
Number
Dollar
May
for domestic consumption on
the same terms.
Domestic pro¬
ducers took no action pricewise
business
TRANSACTIONS FOR THE ODD*
ODD-LOT DEALERS
SPECIALISTS ON THE N. Y.
LOT ACCOUNT OF
the
14.800
not
and continued to take on
STOCK
Week Ended April 26, 1947
New York quotation.
("E.
the Commission
and spe¬
23.675
21.225
5
custom smelter sold
per
filed with
the odd-lot dealers
cialists.
during the week to 44%d, follow-:
the
continu¬
26
April
ended
week
from outside sources has
London
The
reduced
of complete figures
ing a series of current figures be¬
ing published by the Commission.
The figures are based upon re¬
that
Average prices for calendar week ended
Metals—Copper Quotations Up on
Sales of Foreign Metal to Domestic Consumers
summary
a
showing the daily volume of stock
for odd-lot account
of all odd-lot dealers and special¬
ists who handled odd lots on the
New York Stock Exchange for the
21.225
3
Included with "other sales."
Non-Ferrous
7,
transactions
recent
indicating
ounce,
an
Exchange
and
21.225
2
copper,
stated:
in
Securities
The
Commission made public on May
Official
York
that "there
NYSE Odd-Lot Trading
by
the Exchange
rules are included
mar¬
clarification
by the Cartel,
than
lowered
further said
to be a feeling that money
21.225
1
May
restriction by the Commission's
He
ports
was
71 %c
of refined platinum $4 an
ounce, effective May 5.
This es¬
May
volume includes only sales.
IRound-lot short sales which are exempted from
States
Silver
remain tight,
-
-
,
misrepresentation
siace
funds
spent
for
reclamation projects
were
public investments, which
are
profitable.
weeks.
and
—Electrolytic Copper—
includes all regular and
better
little
a
month pre¬
on
spent on reclamation is a sort of
charity to Western States," adding
that nothing could be more of a
to roughly $85 duty
York.
Business was
New
is.";
appears
was
inclined to do
to disturb the market.
basis ex foreign ports is
pressure
sellers
71,441
"members"
Scandi¬
our
lem.
quicksilver
nothing
carry
delegates were told by J. A.
Krug, Secretary of the Interior,
that development of natural re¬
sources was a great national prob¬
the domestic trade concerned with
The $65
in the fine
which have
country the great nation
to
increased.
DAILY
associate Exchange members, their
firms and their partners, including special partners.
tin calculating these percentages the total of members' purchases and sales Is
compared with twice the total round-lot volume on the Exchange for the reason that
term
of the latest move
(D.-
McClellan
The
reasons."
further
L.
Co., of Lon¬
the United
"technical
Pending
The price structure was
73,412
73,412
purchases-
in
for
ket
including
Except that Prime Western
Dom.
sales
and
equivalent
0
sales
London
made
that it
don, has terminated its agreement
to act as selling agent for the
price
13.88
John
Ark.), expressed the hope that
Congress would "have the good
placed during the last week in do¬
mestic metal at $85. Demand was
Leading
190,220
other
The
navian Metallurgical
in March.
expprt,
for
a
to
silver,
viewed as steady.
18,755
Customers'
•The
reduction of £3 10s. Ac¬
adjust price was taken
after
a
recent
meeting of the
group held in Zurich to establish
a
uniform world price of quick¬
tion
Platinum
sales—
§Customers'
Total
ish agent lowered the price in the
British
market
to
£17
5s
per
flask,
President,
organization's
The
traditions of progress
here
received
also announced that the Brit¬
was
Cartel
Institute
Zinc
advices
during the last week report that
Mercurio Europeo reduced its of¬
ficial price to $65 per flask, Italian
or
Spanish ports.
The previous
quotation was $67.50 a flask.
It
zinc, amounted to 10,528 tons in April,
against 6,805
tons in March. Stocks at the end
XJ. Odd-Lot transactions for Account of Specialists—
Total
were:
•
American
tureless.
255,440
Total purchases-
Total
origin,
of
countries
Total-
tOther
London
3.45
43,120
sales-
Short
tons,
17,374
to
in
lead
refined
of
amounted
the market was more or
72,310
sales
Total
Demand was active.
situation in lead re¬
tons.
Special High Grade
floor-
purchases
Short
4.
1.50
24,100
sales
the
tin
(guaranteed 99%
minimum) 78.90c per pound.
vious.
21,900
,
transactions initiated off
Total
upon which our
nation depends."
Senator
Chinese
activities
prosperity as a
important
the
among
Quicksilver
against 162,0.49 tons a
2,200
.
sales
tOther
on
80.000
of
8.93
141,755
sales
transactions initiated
June
drawback
6,255
135,500
Total purchases
Short sales
_
wisdom
Shipments
157,100
.
sales
2. Other
servation
80.000
tons, against 68,983 tons
they are registered—
purchases
instruments of progress.
"Navigation, flood control, con¬
and
reclamation
are
sary
80.000
80.000
1___
2—
placed production of slab zinc for
April at 73,891 tons, against 75,376 tons in March. Domestic ship¬
ments in April
came
to 61,715
Members:
stocks in which
1, Transactions of specialists in
Total
80.000
80.000
The
\%
B. Round-Lot Transactions for Account of
tOther
80:000
7—
Zinc
1,673,550
—
Short
6
1,120 tons.
1,646,900
sales
Total
May
May
Canada, 5,974 tons; Mexico, 9,856
tons; Peru, 424 tons, and Australia,
Exchange and Stock
Total for Week
26,650
Sales:
sales
tOther
of 1947 the
growth by lack of the neces¬
our
80.000
1947
19,
sales
Short
80.000
45,800
February
by
17.01
(Shares)
Account of Members*
WEEK ENDED APRIL
A. Total Round-Lot
80.000
May
May
May
23,047
with 10,843 tons
and 14,595 tons in
January, according to the Bureau
of the Census. Imports in March,
in
adequate program to this
to avoid
We cannot risk retarding
an
end at all times if we are
80.000
5
Kingdom imported 67,192
which
3.12
4. Total—
Total
out
80.000
80.000
March
235,420
and we must plaq and carry
war,
July
8,0.000
Imports
28,790
——
sales
Total
Totals
50,635
our
become
nomi¬
was
to protect and im¬
national resources has
acute as a resqlt of the
need
waste.
3—
price
have
3.27
318,570
sales-
prove
tightening
any
pound,
follows: *■■•-** ■
as
flood
said:
Truman
''The
not
80.000
mains firm.
floor—
purchases
Short
tOther
have
80.000
the first quarter
9,140
297,120
sales
Total
nally
producers booking June
business, the sales volume for the
week
increased
moderately
to
10.62
174,820
1.
sales-;
3. Other transactions initiated off the
1947
per
Lead
initiated on the floor-
j.
Mr.
domestic program.
cents
and
Rivers
gress listed navigation and
control among "important
Straits qualit/tin for shipment,
in
With
809,120
sales
for
May
712,230
,
purchases
Short
fOther
tin
80.000
28,887
United
tional
for
consumers
,May
86,060
12,982
—
March
96,890
1
transactions
of
session of the Na¬
Harbors Con¬
to the opening
year.
sales
2. Other
in the
!ong tons, according to the Min¬
istry of Supply:
792,610
sales
Total
domestic
to
been reflected in
sumption statistics, by months, in
February
:
A letter from President Truman *
activ¬
ities" on which prosperity de¬
pended, Associated Press advices
allocating from Washington stated on May 2.
is
government
duction
in the United Kingdom in
;he first quarter period of 1947
showed
wide
variations.
Con¬
specialists in stocks In which
sales—
various
from
May shipment on the unchanged
sellipg basis of 80c per pound for
■'Grade A,"
So far, the recently
lowered estimates on world pro¬
tops pf virgin eppper, against 44,048 tons in the same period last
purchases
tOther
tin
copper
17,150
10,065
16,913
Resources Protection
metal
precious
Tin
The
Owing chiefly to severe weath¬
conditions,
consumption
of
33,485
the
settlement.
of
Scrap
President Urges Nat'!
becahie available in a larger
contributing to the price qn-
way,
some
the situation and
23.75c to 23.85c, f.a.s
New York equivalent.
-
they are registered—
Short
was
prices paid outside of the United
States in the last few days showed
range
of
increased
During the last week it
reported that Russian plati¬
num
showed
buyers
nervousness over
Dealers and Specialists:
Total
22.525c
was
refinery, and for May 7 it
In
1. Transactions of
6,
May
on
quotation at $59 an
sources.
22.865c.
was
Transactions for Account of Members
for the Odd-Lot Accounts of Odd-Lot
Except
leveling off on ?tn even
basis. Our weighted av¬
quotation for the domestic
market
f.p.b.
7,542,070
sales
Total
B. Round-Lot
the
7,184,570
a
the
ounce on wholesale transactions
and at $62 on sales tp consumers.
selling
January
f fc
357,500
sales—
}Other
the
in
be
to
Virgin
Total for Week
sales-
Short
as
process of
1947
APRIL 19,
Sales:
A. Total Round-Lot
Round-Dot Stock
diminish
to
appeared
market
figures showing the volume of total round-lot stock sales on the
and the New York Curb Exchange and
the volume of round-lot stock transactions for the account of all
7
seemed
level
public on May
The Securities and Exchange Commission made
j.
tablishes
21V2C, though offerings at that
at
Trading
Thursday, May 15, 1947
FINANCIAL CHRONICLE
THE COMMERCIAL &
(2658)
is
.
"Volume
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4594
165
(2659)
15
Total Loads
Railroads
Freight Car Loadings During
Ended May 3, 1947 Decreased 11,092 Cars
Revenue
Total Revenues
District—
1947
Atl.
&
Tennessee
W.
Atlantic
of revenue freight for the week ended May 3, 1947,
totaled 882.684 cars, the Association of American Railroads an¬
nounced on May 8.
This was* an increase of 211,373 cars °r 31.5,%
above the corresponding week in 1946, and an increase of 16,650 cars
or 1.9% above the same week in 1945.
-
P.—W.
&
Northern
RR.
of
433
of
Ala
Columbus
Durham
Western
&
&
1,999
1,903
8,769
10,067
4/485
4,819
3,970
4,386
4,290
449
4S0
428
1,661
1,267
614
1,776
3,853
2,231
289
411
230
231
279
Carolina
99
above the preceding week, and an
above the corresponding week in 1946.
29,606
below the preceding week but an
cars,
Livestock loading
the
Air
Line
1,300
427
1,741
516
478'
8,923
1,236
11,313
12,731
13,211
11,874
9,009
24,483
25,262
25,491
21,553
327
593
697
893
555
123
142
160
850
804
115,520
130,015
111,412
102,071
21,802
16,351
20,308
14,006
12,214
Central
a
2,292
2,449
3,492
20,750
11,100
9,180
3,664
3,612
4,146
3,703
19,413
15,126
26,966
485
210
872
668
1,131
678
9,160
6,901
9,263
661
5 OS
415
171
113
21,859
11,700
22,388
6,782
4,858
Des Moines & South
Weeks
Four
of
Weeks
Four
526
456
272
2,203
78
2,171
1,574
2,168
2,675
2,144
6,978
5,147
7,035
3,692
3,487
10,938
9,270
11,124
5,063
International
Portland & Seattle
Spokane
Spokane,
reported increases • compared with the correspond¬
Southwestern.
except the Northwestern and
Alton
Week • of May
3,168,397
2,883,863
3,003,655
3,179,198
2,866,876
Chicago
3,232,247
2,604,049
882,684
671,311
222
589
Rio
&
Salt
2,331
96,783
132,921
69,297
54,765
24,697
22,157
26,090
11,045
1-0,740
A
-
——
—
13,006,339.
14,633,646
-
North
3,598
3,529
2,976
33
415
81
5
15,721
16,791
11,263
10,055
3,066
364
2,202
776
1,000
12,947
11,558
12,83S
12,888
11,370
2,731
2,106
2,874
3,636
2,957
654
1,624
1,625
1,436
3,916
5,164
3,604
&
e
e
*
from
<>
Southern
1,544
1,474
New
2,106
1,486
merce"
1,070
467
481
the separate
Freight Loaded
Boston
tK.
—Connections—
—
Litchfield
&
1945
1947
338
263
1,688
1,328
1,503
452
398
7,901
7,062
13,244
11,630
1,097
1,129
2,496
1,76]
11
32
28'
31
33
1,071
1,172
2,387
2,073
Texas
&
5,635
4,912
3,580
11,414
9,129
Texas
&
7,661
8,244
6,216,
356
;
.
381
,—
1946
2,746
410
368
431
3,299.
11,753
16,677
4,260
8,523
220
170
1,878
2,775
1,018.
9,078
7,536
9,549
2,382
3,995
New York Central
6,035
281
19
2,063
18
43,200
51,078
52,038
& Shawmut
Pittsburg
19,718
15,387.
Pittsburg,
968
832
2,550
15,222
404
446
1,446
8,003
9,413
5,163
7,255
6,161
,133
889
30
264
11.
941
419.
.
-213
1,127
Union
Constitution,
courts
5,804
5,396
6,012
7,463
6,676
97
140
83
63
43
22
44
38
11
18
Pacific
1,847
1,042
2,675
•
Total
64,097
firginian
Total
—...—■
Denver
Rio
&
Grande
Ada-Atoka
Ry.
SStrike.
Western
Judge Witmer also held that
no jurisdiction to
Surrogate has
act on the combined fund since it
ing
RR.
Midland Valley Ry. and Oklahoma City**Frevious week's figure.
HAbandoned.
NOTE—Previous year's figures
well
as
still liv¬
those of estates.
as
revised.
Weekly Statistics of Paperboard Industry
We
give herewith latest figures received by
2,832
806
,
Trade Barometer were 9.3% above
production for the week ended
May 3, 1947., In the same week
The
cates
members
;
of
5,982
2,667.
..813
6,046
v
.
-
5
8
14,960.
.526
.
166
11
13
,
~
>14
'
Received
Tons
Tons
579,562
102
99
181,017
599,009
104
99
169,624
178,458
589,544
102
177,282
565,571
103
100
61,126
86,890
61,936
43;827
Mar.
U
16,684
11,365
23,636
16,706
Mar.
8
6,803
18,768
7,051
3,515
Mar. 15—
4,68'4
2,221
3,849,
10,981
7,354
Mar, 22
Feb. 15
Feb. 22__
.
192,670
6,415
■
51,629
14,805
51,629
15,907
8,818
2,814
4,397
14,806
24,854
66,1-30 t.
'■
..
1,189
25,988
15,448
25,988
15,448
,
May... 3^———
101
104
101
176,918
574,090
103
101
180,729
549,774
102
100
181,064
597,373
102
102
165,902
569,809
96
101
170,806
177,478
153,415
19—
26
.
102
228,306
—
102
614,471
595,648
139,487
512—
,
101
574.856
179,025
179,819
155.794
160,450
—
Mar. 29—
Apr.
181,709
163,207
160,227
232,682
181,063
560,739
.
.
102
534,297.
100
582,603
102
101
;
101.
ments
of
unfilled
orders.
mills
were
amounted to
81%
of stocks.
For
reporting softwood mills, unfilled
orders are equivalent to 27 days'
production at the current rate, and
gross stocks are equivalent to 31
days' production.
For the year
of
to date, shipments
reporting identical mills were
9.8%
were
above
production;
orders
above production.
12.7%
Compared to the average corre¬
sponding 1935-39 week, production
of
reporting
mills
was
11.8%
above;
shipments
above;
orders were
Compared
to.
were
the
week
in
porting
shipments
new
production
1946,
mills
was
were
orders
9.9%
15.8%
above,
corresponding**
101,
orders for the prior week, plus orders received, less production
do not necessarily equal the unfilled orders at the close.
Compensation for delinquent
reports, orders made for or filled from stock, and other items made necessary adjust¬
NOTES—Unfilled
these
above production.
Unfilled
order files of the reporting mills
Current Cumulative
237,292
.
—
of
orders
3.4%
100
147.458
19,733
27,021
Unfilled Orders
Production
Percent of Activity
Remaining
179,347
87,371
7,935
These
Tons
1,862
35,971
figure which indi¬
202,189
4,486
113,647
a
the time operated.
204,033
1,923
153,034
on
1
4.073
185,439
total
8
75
127,583
the
Feb.
1.956,
.
of
Feb.
1947-Week Ended
1,977,
'
83%
advanced to equal 100%, so that they represent the total
Period
0
6
represent
statement each week from each
production, and also
of the mill based
Orders
1,662
J
a
STATISTICAL REPORT—ORDERS, PRODUCTION, MILL ACTIVITY
1,557
3
Association
includes
industry.
12,9,73 i
.56
•
new
714
:
"3-;.
22
are
1,345;
66,130
this
program
the activity
21,286
0
297-
888
c
24,500;
r.7,012.,.
-
1,227
...
46,240,
from the National
lumber shipments
paperboard industry.
158,554
636
us
According to the National Lum¬
Manufacturers
Association,
of 396 mills re¬
porting to the National Lumber
ber
Paperboard Association, Chicago* 111., in relation to, activity in the
212,668
27*025,
Weekly Lumber Shipments
9.3% in Excess of Output
158,213
—
legislation and the
always re¬
heretofore
tlncludes Kansas, Oklahoma & Gulf Ry.,
Apr..
Apr.
--
61,135
64,136
79,506
59,670
has
quired."
included trusts of persons
•Included in
145,377
.
Pocahontas District—
Jhesapeake- & Ohio—i———-—
Jorfolk & Western.---^-—------
Southern
&
Weatherford M. W. & N. W
member of the orders and
■
189,345
—
science of the people of the State
of New York as expressed by the
5,368
Apr.
Total
4,277
15,516
§
6,271
13,274
-—
the kind of notice which the con¬
4,158
15,654
168
11,917
73
—
338
7,377
17,414
180
9,921
Orleans
Falls
re¬
4,631
9,555
Wichita
personal
quired, the law "fails to provide
167
1,877
(Pittsburgh);—,
Maryland—
that because
5,367
3,104
,
T
Western
held
13,513
8
3,067,
-
Y
6,864
—
He
service of trust notices is not
5,392
Lines
Pacific
&
New
pro¬
16,540
Arkansas
industry, and its
1,237 r:
-
.
984
9;991
681
Cornwall
Pennsylvania System——;
Reading
Co—.--j--——
1,579
1,095
43,934
5,971..
—
337
11,812
4,255
-
6,235
4
Ligonier Valltey—
Long Island———i.
PennrReading Seashore^ Lines
288
.
7,113
Allegheny District-
Cumberland & Pennsylvania-
350
Madison
393
:
171,688
——
2,486
7,446
6,145
458;
,
6,099;
6,559
&. Indiana,—
3,077
2,246
243
117
••
Central RR. of New Jersey,—,,—,
3,568
Acme
figures
Cambria
2,090
3,673
5,216
47
127
:—
Akron, Canton- & Youngstown
Baltimore^ & Ohio——.—,—.
Bessemer & Lake Erie,.——
.....
1,331
5,727
2,419
C.-A.-A
7,963
5,580
11
v
999
2,908
2,424
V.-O.
3,080
1,228,
—J,,
Total
1,662
1,075
2,839
Arkansas
connec¬
ceedings.
73
1,463
5,744
:
6,579
Erie,
4,923
9,854
3,598
11,077
'
Wheeling & Lake
4,150
198
2,196
7,111
404
.
3,289
in
settlement
estate
2,707
'
6,762
Shawmut & Northern-
Pittsburgh & West Virginia,
Rutland———
—.—
2,238
beneficiaries
with
7,427
14,970
6,996
——
2,160
trust
tion
34,897
10,980
,
1,041
Chicago & St. Louis,——
N. Y., Susquehanna & Western
Pittsburgh & Lake Erie——
Pere
Marquette,,-———
434
2,685
provision for equal
protection under the law" by fail¬
ing to provide adequate notice to
143
785
7,367
New York,
894
2,567
13
10,133
32-page decision which
a
declared the amendment "violates
220
52,053
Lines,,
& Hartford,
Ontario & Western
Y., N. H,
295
8,326
Com¬
yesterday dis¬
Security Trust Co. peti¬
combined
2,626
3,039
204
2,856
——
434
6,227
of
1, which further
Witmer
a
fund in
all
362
5,329
Island
appearing in the
tion for accounting of a
9,353
6,875
2,695
Judge
missed
Louis-Southwestern
2,120
2,291
1,378
8,469
Montour
74,908
District—
Pacific
^uanah
St.
6,182
8,588
Monongahela
&
84,112
12S.3U
111,573
129,761
_
in¬
County Sur¬
it was
"Journal
May
1
2,79.1
12,413
4,847
2,710
Central—,——
6
3,534
of
St. Louis-San Francisco
1,800
12,429
193
.—
&
York
14,339
557
2,369
857
4,788
—
Western
Hudson River
Lehigh & New England
Lehigh Valley
New
14,565
Missouri-Kansas-Texas
Missouri
200
1,415
Missouri
8,287
260
1,759
2,243
10,090
226
13,561
N.
16,296
0
2,352
Southern
&
1,405
Lackawanna & Western—
Detroit, Toledo & Ironton,
Detroit & Toledo Shore Line
Maine
12,736
835
2,073
G.-M.
City
1,055
Detroit & Mackinac..
Lehigh
&
1,879
———
Vermont—,
Trunk
15,954
:
i
Lines
Louisiana
7,034
Maine
Delaware & Hudson
Grand
O.
Kansas
260
1947
•/
Indianapolis & Louisville—
Delaware,
98
0
_
Coast
1946
*
Aroostook
Indiana,
Central
9,394
218
Southwestern
2,193
District-
&
Chicago,
Central
10;969
318
International-Great Northern
Total Loads
&
32,868
0
_
Received from
Total Revenues
Railroads
Arbor
33,508
Pacific
Total
Gulf
LOADED AND RECEIVED FROM CONNECTIONS
(NUMBER OF CARS) WEEK ENDED MAY 3
Eastern
0
32,199
_
for
said:
526
0
Burlington-Rock
REVENUE FREIGHT
Bangor
84
551
3
York
constitutional
roads reported gains over the week ended
May 4, 1946.
Ann
146
861
4
for
of freight carloadings
summary
a
railroads and systems for the week ended May 3, 1947.
this period 79
During
is
table
following
1,454
611
Union Pacific System
Utah
Western
The
1,497
(Pacific)
by Monroe
Rochester
1,166
1,971
8
smaller
fund
stated in Associated Press advices
1,957
1,059
permitting
pool
to
common
G. Robert Witmer,
1,045
Union
a
tutional
rogate
1,224
Pacific
Paciiic
in
vestment has been ruled unconsti¬
2,380
City
Toledo, Peoria & Western_____
14,321,599
in
1,455
Pekin
&
sim¬
State Bank¬
amendment
companies
trusts
—
_
Northern
Western
Peoria
trust
2,505
,
New York
Law
20,625
Terminal
Nevada
1943
ing
378
Western
_
of
on
In N. Y. Unconstitutional
523
Lake
bills
Pooling of Trust Funds
2,735
Denver
&
maturity
a
of
491
3,049
District—
Grande
&
Worth
was
issue
May 15
the amount of $1,301,981,000.
2,431
Garfield-.:
Burlington & Quincy
& Illinois Midland
Rock Island & Pacific
& Eastern Illinois
Denver
866,034
1
—:
ilar
116
&
Denver
4,022,088
3,377,335
-
There
61
2,269
Colorado & Southern
3.052.487
3,982,240
Total
946
199
_
Bingham
Illinois
1945
4,170,420
April
906
2,603
& Santa Fc System
Top.
Fort
1946
Western
Central
Chicago,
Chicago
Chicago,
increase of 8,904 cars above the
of the amount bid for at
4,761
Paul & S. S. M
Pacific—
cars, a decrease of 2,860 cars
increase of 38,717 cars above the
January
of
Weeks
(67%
the low price was accepted.)
9,195
Northern
February—
of
6,759
Minneapolis & St. Louis.
March——
of
Weeks
per annum.
540
12,295,
127,154
an
annum.
Low, 99.905, equivalent rate of
discount
approximately
0.376%
Green Bay & Western
Lake Superior & Ishpeming
14,650 cars, an increase of 364 cars
competitive
2,967
20,399
Missouri-Illinois
Four
per
2,398
Ft. Dodge,
decrease of 285
above
accepted
High, 99.908, equivalent rate of
approximately
0.364%
Minn., St.
cars,
of
•
bids:
Duluth, Missabe & Iron Range
1947
Five
alent
discount
North Western
&
$1,202,500,000,
Average price, 99.095-f; equiv¬
rate of
discount
approximately 0.376% per annum.
8,151
28,399
System
Duluth, South Shore & Atlantic
Elgin, Joliet & Eastern
ing week-in 1946 and all reported increases compared with the same
week in 1945,
1,646
405
498
22,049
3,584
Atch.
preceding week and
districts
1,662
436
accepted
(includes $16,769,000 entered on a
fixed price base at 99.905 and ac¬
cepted in full).
Chicago, Milw., St. P. & Pac
Chicago, St. Paul, Minn. & Omaha
corresponding week in 1946.
All
3,991
1,126
Total
410
4,084
May 12.
on
Total applied for $1,761,294,000.
65 884
amounted to
loading amounted to
the
413
3,527
i'(200
Chicago Great Western
corresponding week in 1946.
above
390
3,440
eral Reserve banks
Northwestern District
week in 1946.
decrease of 197 cars
amounted to 15,479 cars, a
below the preceding week, but an
Coke
1,112
401
3,525
L
134,509
Chicago
preceding week but an increase of 1,388 cars
loading
176
273
St.
corresponding week in 1946.
Ore
265
812
In the Western
1946.
products loading totaled. 47,267
below the
10,268
1,100
•
Range
corresponding week in 1946.
Forest
cars
10,397
'237
&
Total
below the
corresponding week in 1946.
In the Western Districts alone loading
of livestock for the week of May 3 totaled 12,021 cars, an increase
of 177 cars above the preceding week, but a decrease of 2,329 cars
below the
26,715
Winston-Salem Southbound
preceding week and a decrease of 2,920 cars
the
below
15,707
dated May 15 and to
mature/
Aug. 14, which were offered ori
May 9 were opened at the Fed¬
13,045
Fred. & Potomac
Tennessee
decrease
increase of 8,523 cars
above the corresponding
increase of 6,474 cars
an
14,964
Northern
Southern
Districts
and grain products loading for the week of May 3 totaled
a decrease of 3,252 cars below the preceding week, but
alone, grain
28,480
be
3,751
21,141
Southern
Seaboard
products loading totaled 43,951 cars, a
corresponding week in
the
Norfolk
Richmond,
the
preceding week, but an increase of 146,066 cars above
corresponding week in 1946, which included coal mine strike.
above
907
5,216
26,027
i
Chattanooga
Piedmont
1,914
408
5,408
Central—
Nashville,
1,973
433
4,541
27,309
system
Nashville
Mississippi
cars
below the.
of 3,627 cars
&
1,245
about of 91-day Treasury bills to
107
1,360
Secretary of the Treasury
on
May 12 that' the
tenders for $1,200,000,000 or there¬
1,215
126
The
announced
337
1,650
43
430
Macon, Dublin & Savannah
de¬
decrease of 1,683 cars below the preceding week, and a
crease of 6,131 cars below the corresponding week in 1946.
Coal loading amounted to 178,672 cars, a decrease of 5,487
a
Grain and grain
Louisville
than carload freight totaled 124,14y
Loading of merchandise less
cars,
Central
680
2,463
100
5,111
„
Gulf Mobile & Ohio
Illinois
113
4,002
1,116
.
102
2,232
'112
Coast
Midland.
Georgia
Georgia & Florida—
,
increase of
increase of 16,826 cars
172
894
13,346
Southern
East
Gainesville
loading totaled 392,632 cars an
438
913
Greenville
&
Florida
466
15,839
Clinchfield
the week of May 3 decreased
1.2% below the preceding week.
,
cars
1946
906
Georgia—.
Charleston
Loading, of revenue freight for
2,683
1947
443
15 022
—
Line,--
J
cars or
Miscellaneous freight
1945
2,280
Coast
Central
,
.
—Connections-
1946
'
Alabama,
Loading
11,092
Result of Treasury
Bill Offering
Received from
•Freight Loaded
Southern
4,4%
of
,
rq-f
above;
11.5% above, and
were
8.3%
above.
16
THE COMMERCIAL & FINANCIAL CHRONICLE
(2660)
Pittsburgh on June 1, ac¬
to the Pittsburgh "Post
of May 9, from which
the following has also been taken:
pany of
Thursday, May 15, 1942!
cording
Items About
,
Trust
Walter Reid
President
Bank
and
Wolf, Senior Vicedirector
and
Farmers
Trust
Vice-President
tional
has
City
Empire
elected
The
New
Na¬
York,
member
of
State
He is
sity,
as
of
is
Wolf
trustees
of
and
City
Artillery in the first World War.
Vice-Presi¬
Senior
McElvare,
dent of The Bank for Savings.
Irving Mead
his
served
President
Savings
25th
of
May 8 ob¬
anniversary as
the South
Brooklyn
it
Brooklyn,
Bank,
was
When Mr. Mead was
announced.
elected to the
Presidency in 1922
the amount on deposit was $31,775,000. Today it is over $111,000,000.
title of the iree Travel Exhibition
being neld at the main office
of The iaanK ior Savings,
at 2zna
4th Ave.
depositors and the
general puoiic.
Three spacious
exnibiuoii rooms
are given
over
to displays of resorts and trips
near
anu
far, with details and
St., for
Literature
on
where to go—how to
Featured in
pictorial history
go—wnat to see.
room
is
a
one
of
Bermuda witn color reproductions
of tbe murals
of the House of
JLoros, London,, with captions that
trace
developments
the
that
led
to tiie establishment of the colony
tne
on
Bermuda.
of
tsies
Other
and
dioramas
displays picture a
quaint New England fisning vil¬
Harry W. Sage, Assistant VicePresident of
Sterling National Bank & Trust
Company of New York announced
thjat Patrick A. d'Onofrio and Mrs.
Helen
Herje have been named
Assistant Managers of the Foreign
Department. Mrs. Herje, who is
the Lrst woman to
be elected
officer
Rochester, N. Y.,
his associates upon
anniversary of his con¬
nection with the bank. According
Sterling
member
of the
bookkeeper
and
teller.
Elected Assistant Secretary Apr.
14,
1927, he became Secretary
Apr. 16, 1942, and Assistant VicePresident
Trust,
after
Seuffert
F.
May
on
Vice-President
officer
the
of
Union
8
and
Trust
also taken:
Seuffert
trust
the
served
1927.
bank
take
Executive
officer.
trust
as
and
Lengeman
Executive
will
Vice-
1944
Seuffert
trust
trust officer.
named
was
officer
and
in
Institute of
Banking, serving at
various times as President, Na¬
Mr.
tional
Chairman
Public
of
fairs, and
as an instructor in
institute's banking classes.
for 16 years, rising to the rank of
Af¬
the
Vice-President.
President
was
of
Bank
&
1930,
and
Trust
elected
a
Vice-
Sterling
National
Company in June
located
at
the
bank's main office serving as one
was
of the credit officers.
Reporting
the
90th
birthday
celebration of the Howard Savings
Institution
N. J., the
Newark "Evening News" of May
5
stated that it was
that
also
Shields
Dunn, President, an¬
the election of Murray
as
a
of
the
Bank
of
the
Manhattan
Company, the announcement also
said.
the
direction
of
Miss
Olive Riley, Chairman of the Art
Department, Washington Irving
High School is holding its Third
Annual
Bank
Art
Exhibition
at
tions
child's
Art
of the
New
York
death
the
their
of
President and director John Earle
Reynolds
Sunday, May 4.
on
quote:
An
bank
-
named
was
Howard,
after
John
Englishman
of 1790,
history for his work
the poor.
Howard
devoted a large inheritance to
improving hospitals and prisons.
honored in
in
noted
by the board of
governors of the Federal Reserve
was
System in its May 3 bulletin that
the
Commonwealth
Trust
Com¬
of
Bank, McKees Rocks, Pa.,
member
insured
May 1.
In
absorption
a
a noneffective
bank
connection with the
branch was estab¬
lished at McKees Rocks.
The Commonwealth Trust Com¬
Pittsburgh on April
Vice-Presidents
of
pany
30
two
in
charge
of
branch
banks.
The
Pittsburgh "Post Gazette" of May
1 reporting this, added:
G.
Henry
Haupt,
Chartiers
years,
Cashier
for
Bank
of
many
elected Vice-Presi¬
was
dent in charge of the Chartiers
branch, effective today.
M.
George
Hawkins, with the Mt. Leb¬
Bank for the past 23 years,
elected Vice-President in
charge
the
of
Mt.
Lebanon
branch.
The Baltimore National Bank of
Baltimore,
election
Md.,
of
Cashiers
three
as
the
announced
Assistant
new
follows:
Edward
H.
Appleby, Manager of the North
Avenue branch; Daniel H. Bailey,
Manager of the Essex and Middle
River
branches,
and
Brice
J.
Worthington, Jr., Manager of the
Greenmount Avenue branch, it
was
reported
in
the
Baltimore
Mr.
Appleby and Mr. Bailey
will remain at their respective
branches, and Mr. Worthington
office.
J.
Kehoe has
been
ap¬
pointed Manager of the Greenmount Avenue branch.
was organized by a
of 27 businessmen, some
of families long distinguished in
Newark affairs.
one
of the
Descendants of
incorporators
are
on
'
Public
Streets, Newark's poulation was 64,000. Deposits in the
first year statement were $16,280. Today, with deposits over
$135,000,000, Howard is the larg¬
est mutual savings bank in the
state.
There are over 200,000
depositors.
of
direction of
the
cade.
of
ernors
System,
the
the
W.
un¬
Kin-
industrial
war
activity
reached $128,000,000 and still re¬
an all time high for nor¬
times, totaling $102,000,000."
Reserve
Federal
Savings
Company, of Cin¬
cinnati, Ohio, a State member,
absorbed on April 26 the Sharonville Bank of Sharonville, Ohio, a
was
insured
William
A.
Borders
has
Vice-President
the
absorption
a
tne
In celebration of its 60th anni¬
a
brochure
tracing the
bank's history and progress, from
its foundation in 1887 to the pres¬
From the brochure
Bank
and
the
on
Patton.
staff
Mr. Borders
of
General
formerly
with Halsey, Stuart &
Company in
Chicago and St. Louis and was
later
was
The
Sewickley Valley Trust
Company of Sewickley, Pa., will
become a branch of the Peoples
Wichita
First National Bank & Trust Com¬
1887, in the swirl of
"The Fourth National
was
founded
a
Island
closed
banks
remain
will
Saturdays.
on
;
,•
,
New
Hampshire — Beginning
May 3, 1947, a substantial number
of New Hampshire banks will re*
main closed
on
Saturdays,
Federal Reserve
Bank of Atlanta and
commercial
closed
Atlanta
the
remain
will
banks
Saturday,
on
examiner for the Federal
an
Reserve Bank of Atlanta is closed
will not constitute
determining the time when*
credit will be given, pursuant to
our time schedules, for deferred-
credit items
1945 he became Vice-President
cated
the
Industrial
Bank
of
of
Louis
St.
from which he resigned on May
to accept his present position.
The
surplus
pany
of
week
was
of
account
Bank
and
Kansas
Trust
City,
increased
to
transfer of
undivided profits.
City
Com¬
$500,000
$1,000,000 and capital of $1,000,000. Of the $6,000,000 capital ac¬
count, all but $400,000 has been
earned, the
latter representing
paid-in capital.
of
the
last
Hoffman, Manager for
the
of
year
partment
of
Credit
De¬
National
City
the
Bank arid Trust
Company of Kan¬
sas City, was elected an Assistant
Vice-President at a meeting last
week of the City National direc¬
tors! Mr. Hoffman is a director
of the Kansas
City Association of
Credit Men and
Robert Morris
Kearney
of
a
member of the
the
Mexican
Kansas
his
was
States
a
luncheon
President's
visit
on
to
City last week. This visit
last stop on his United
tour.
mond
First
National
Colo.,
increased
has
its
of
Bank
effective
May
City
capital
from
reported by the Comptroller
ment
in
an
Bank
all other
Re¬
of
Rich¬
banks in
Baltimore
of
closed
will
the
remaira
Saturdays.
We
un¬
however, that a num¬
banks
outside the City
on
derstand,
of
of
Baltimore
and
on
will
after..
remain
June
opera
7,
1947.
Maryland statute permitting
banking institutions to close ora
Saturdays does not apply to the
The
five
Eastern
Shore
Counties
-
of
Caroline, Queen Anne's, Somer¬
set, Wicomico and Worcester.
On and after June 7,
1947, Sat¬
urday will not constitute a busi¬
ness day in determining the time
when
credit
suant
to
will
banks located
by
the
be
time
our
deferred-credit
St.
ing
given, pur¬
schedules, for
items
the
in
Baltimore
drawn
area
branch
ora
served
the
of
Louis, Missouri—The follow¬
banks
announce¬
issued May 5.
board of directors.
Good-
be
not
on
limited
transactions,
the
themselves:
tional
of
The
Bank
of
principally
Valley
issued
paper
Boatmen's
St.
Louis;
National Bank in St.
cash
Trust
payable
items
such
at
by
Na¬
First:
Louis; Mis¬
Company;
The Plaza Bank of St. Louis
All
for
open
Saturdays, except for
payment
drawn
banks
.
on
or
received
by the Federal Reserve Bank of
St. Louis
on
Saturday, will not be
presented until the next business
day.
Meyer, President, Union
Bank & Trust Co. of Los Angeles,
announces election of Edward H.
Ben R.
will
business
1,
$500,000 to $1,000,000 by the dec¬
laration of a stock dividend,
it
of the Currency
Federal
the
Reserve
and
sissippi
The
of
lo¬
the
by
mond.
the
Miguel Aleman at
Office
banks
on
served
area
Bank of Atlanta.
Federal
Vice-Presi¬
Wornall,
drawn
the
FederaJ Reserve Bank of Rich¬
associates.
City National Bank
and Trust Company and President
of
Kansas
City's
Chamber
of
Commerce, introduced President
dent
Head
serve
ber
The bank has undivided profits
John E.
in
Maryland—Beginning June 7„
1947, the Baltimore branch of the
Mo., last
$4,000,000
through the
from
1
business day
a
in
Deposit Insurance Corporation. In
Noncash items drawn
on
or'
payable at such banks received by
the Federal Reserve Bank of
:St;
Louis
be
on
Saturday, will also not
presented until the
following:
business day, except with
respect
to items which are
included with4in
the
types the banks
are
pre¬
enough, Bart., who was recently pared to pay and yhich the Fed¬
elected Chairman of the Board of eral Reserve Bank
of St. Louis is
directors of Barclays Bank Lim¬
specifically instructed to present.
ited, has resigned his Chairman¬
Mr. Sproul adds:
ship and seat on the board of
In view of the
Barclays Bank
(Dominion, Co¬
closings of banks;
lonial and Overseas).
as above
,
indicated,'there will be?
we
Sjfrialey Crossley, a
Deputy Cha®OT*> I138 been elected
in
Chairman or the board of Barclays
quote:
substantial number of other,
a
Trust
established at Sharon¬
versary this year, the Fourth Na¬
tional Bank in Wichita, Kansas,
and
Rhode
beginning
Company, St. Louis and in May 3, 1947, except in weeks
another
his new position will devote his where
holiday
is
ob¬
The Birmingham, Jack¬
entire time to the Correspondent served.
Bank Relations Department.
sonville, Nashville and New Or¬
Mr.
branches
of
Federal
the
Borders is a native of Mississippi leans
and a graduate of the
University Reserve Bank of Atlanta will not
of Missouri.
His entire business be affected by this holiday and
will remain open, except on legal
career, with the exception of five
holidays in the states in which
years in the Army, has been spent
in the banking and financial field. they are located.
Any Saturday on which Federal
During the war he served as a
Mercantile-Commerce
Sir William MacNamara
has issued
been
of
LeBreton, Treasurer, Consolidated
In Steel Corporation, to the banks'
bank.
of
Bank
Reserve
Georgia—The
Provident
Bank and Trust
ent time.
A.
Deposits during the height
the
was
According to the board of gov¬
Federal
years
Pueblo,
Paul
The
New York, through its President,
Allan Sproul, issued on May 5 a
survey
National
named
and
at
the Fourth National Bank
der
-
aiding
group
of
a
ten
Colonel
It
ville.
Schools; Miss Helen Hird, Chair¬
man of
Art, High School of Music
and Art, New York City; and Miss
announced
branch
Judges of the exhibition are
Miss Virginia Murphy, Director
of
and
Trust Company of Meadville, Pa.
Bank
include advertising,
design, painting, portraits,
book illustration,
textile
"
of
connection with
classifica¬
sculpture.
officers
directors
The Merchants National Bank and
opened, in a building at the
northwest corner of Broad and
are
various
Sewickley
fice.
at
which
costume
and
in
of
excess
of¬
non-member
being made
by The Bank for Savings for the
work
in
The
will be its eleventh
the board today. When the bank
Savings, 4th Ave.
22nd St., New York City.
best
with
system
resources
branch
The
for
Sixteen awards
banking
largest
has been transferred to the main
paper
The bank
Under
city's
anniversary window at the
birthday. The
opened
bank marks the
trustee of the North
River Savings Bank. Mr. Shields
is a Vice-President and economist
the
is
$360,000,000.
The
bank,
Saturday j
Closing of Banks
circular concerning Saturday clos¬
of the record of
ing of certain banks, this supple¬
from 1936 to 1946
menting information
in
earlier
it is shown that deposits have in-,
circulars issued by the Bank, viz:
creased in that period 333%; loans
July 30, 1946; Feb. 11, 1947; Feb.
304%; investments 704% and capi¬
27, 1947, and March 18, 1947. From
tal, now $4,053,857, 124%.
the May 5 circular we quote:
In the brochure it is staled:
Rhode Island—Beginning March
"The period 1940 to 1946 wit¬ 8,
1947, members of the Provinessed an unprecedented growth dence Clearing House Association
In
the
elected
total
business,
the
the
31, 1887, totaled only
$149,757. That it survived the first
year was cause for rejoicing."
National
"Sun" of May 11, which also said:
bank
the
affected
deposits of
Year-Round
close of Dec.
mal
May 5, 1857,
its doors.
referred to we
the
From
Harris A.
nounced
of Newark,
the
capital
drouth
main at
He has been
active in work of the American
seriously
Sewickley Valley Trust
Company has total resources of
$3,663,000.
The Peoples First
anon
1940
In
assistant
Atkins joined the Public National
Bank in 1914 and remained there
Mr. Atkins
James B.
The
was
He
field,
be
Davis.
the
Lengeman,
Vice-President
.continue
54 years old.
banking
Frank F. Brooks and
per¬
formed by Nelson E.
After working for some time in
private
will
Webster, Martin L. Moore,
J. D. C. Miller, R. H; McCague,
over
formerly
of
will
He
duties
trust
the
in
the
department
since
,
has
President.
illness.
board
Pittsburgh, Pa., a state
member, has absorbed Chartiers
Union," from which the following
was
department for
brief
a
this
on
Mr.
pany
1945.
St.
Avenue
the
6,
Company of Rochester, N. Y., it
was
announced
by William W.
Foster,
President,
following
a
meeting of the board of directors,
according to the Rochester "Times-
Atkins, Vice-President
of
Sterling National,
died
on
May 8; at his home at 607 West
was
July
named
trust
Rochester
Lincoln
of
Charles
was
the last 10 years.
Ira
will continue to serve
Sewickley branch as a mem¬
of
the
advisory
board.
clerk,
eign Department for the past 12
years, and Mr. d'Onofrio has been
a
Rochester
the
"Times-Union,"
Mr. Sage joined the old Rochester
Trust and Safe Deposit Company
May 1, 1912, as messenger and
successively held the positions of
National, has
of
Lewis,
the
35th
an
been employed in the bank's For¬
Roches¬
feted by
was
the
lage; the colorful gaiety of Mex¬
ico; the historic South; the gran¬
deur
of tne West;
the striking
scenic beauty of Canada.
tne Lincoln
ter Trust Co. of
to
Rose, an attorney with
Eichenauer, Stewart &
branch
"Your Vacation Preview" is the
now
Mr.
Rose,
ber
on
on
Robert C. Downie, President of
the Peoples First National, said.
Others
D.
its
May 8.
Rose,
J. K. Webster, Vice-President
of the Sewickley bank, has been
named to head the new branch,
E.
a
Lieutenant of Field
a
the
to
R.
philanthropic organizations.
a graduate of Yale Univer¬
class of 1918, and served
overseas
prizes
of
of
York
New
numerous
Presentation
winners will be made by Dr. Mary
Bank
Mr.
boards
Art
Meade, Principal of Washington
Irving High School, and Rowland
York, it is announced by
Charles Diehl, President of the
institution.
Assistant
"Mademoiselle."
Dingivan,
Director,
•
affiliation, Roy
President, announced
of
New
latter
Gloria
the
trustee
a
Savings
City
City
which had endured several years
Shareholders of the Sewickley
bank have voted approval of
Companies
Company
of
of
Bank
been
of
frenzy.
The
authorized
was
$200,000.
A severe
Gazette"
Mr.
Julian
a
delay in
many instances in the
presentment of items and in the
,
Bank
March
14,
commercial
Bank
(Dominion,
Overseas).
Colonial
and
advice of dishonor and. return of
unpaid items.
@FedFRASER