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The
nflimerci3I
Volume 136
financial
iirtmtde
New York, Saturday, May 20 1933.
Number 3543 al
The Financial Situation
N CABLING,on Tuesday, his message on disarma- definite pact of non-aggression; that they should
I ment and economic peace to the heads of the 54 solemnly reaffirm the obligations they have assumed
nations who are participating in the General Dis- to limit and reduce their armaments, and, provided
armament Conference at Geneva, and who will par- these obligations are faithfully executed by all signaticipate in the World Monetary and Economic Con- tory powers, individually agree that they will send
ference, to be held in London on June 12, President no armed force of whatsoever nature across their
Roosevelt rendered an inestimable service in char- frontiers."
acteristic fashion. Things were rapidly drifting
This naturally brought a quick response of full
towards a crisis. with Germany becoming increas- accord from Chancellor Hitler, who was scheduled
ingly defiant, and with the other countries becoming to make an address before the Reichstag on Wednesimpatient over the course and proceedings of the day, as to the character of which the whole world
Hitlerites and a new war appeared to be brewing. was apprehensive, in view of the past attitude of
In his recent speech before the House of Lords at the Hitlerites. Mr. Hitler naturally insisted on the
London, Viscount Hailsham, British Secretary for maintenance of the rights of Germany, but in most
War, spoke of possible punitive action against Ger- unequivocal fashion declared that Germany stood
many; that is, the application of the so-called "sanc- ready to endorse Mr. Roosevelt's method of remedytions." This was very provocative to the Germans ing the international crisis, because he, too, believes
and was certainly a very inept suggestion at a time that without a solution of the disarmament question
of such extreme tension as has latterly been develop- no enduring economic recovery is imaginable. Gering between Germany and the other leading coun- many, he declared, was ready at any time to
retries of Europe. On the other hand, under the Hit- nounce aggressive weapons if the whole world will
lerite regime, Germany has been flaunting the war also ban them. Germany was ready, he affirmed,
to
spirit and glorifying those advocating military join any solemn non-aggression pact because
she
achievements as in the nature of heroes and as exem- thinks not of attack, but of her security.
plifying the proper functioning of the male species.
But while the immediate results have been beneFor instance, on Saturday last the Associated Press ficial in averting a grave crisis that threatened,
it
sent out a cable dispatch from Muenster saying that by no means follows that the Disarmament Conferon that night Vice-Chancellor von Papen, in attack- ence itself will also prove successful, since so many
ing pacifism at a stahlhelm meeting, had declared conflicting interests are involved, not all of which
that "The battlefield is for a man what motherhood it will be easy to reconcile. We should also counsel
is for a woman."
against going too far in these international affairs.
It was at this juncture that President Roosevelt Judging from comment in foreign newspapers,
parstepped in with his telling appeal and made a plea ticularly the French and English papers,
a belief
for the observance of the dictates of ordinary is gaining ground that the United States
has or is
humanity and the exercise of common sense. His about to abandon its policy of aloofness
with referproposition was a very simple one and presented in ence to European affairs, even those
with which we
such a clear, straight-forward manner that no one have no immediate concern. Anything
of the kind
in possession of human instincts could take excep- would have to be deeply deplored. The fullest
cotion to it. In effect, the President said to the dif- operation to avert impending troubles
such as the
ferent nations,"Stop adding to your armaments and one that has just been averted,
is to be highly comresolve never to cross the border into your neighbor's mended, but the means to be used
would be simply
territory." What could be more reasonable than to employ,
as in this instance, moral suasion, and
this; what more convincing? In his message the nothing beyond that. Public sentiment
would never
President said: "I believe that the overwhelming approve anything
of
more than that. But we discuss
majority of peoples feel obliged to retain excessive that phase of the subject
more at length in a separate
armaments because they fear some act of aggression article on
a subsequent page.
against them, and not because they themselves seek
to be aggressors." "If all nations will agree wholly IT IS also well to measure carefully the degree of
to eliminate from possession and use the weapons
success we are attaining in international affairs
which make possible a successful attack, defences by means of some of the temporary arrangements
automatically will become impregnable, and the which are supposed to be accruing
to the benefit or
frontiers and independence of every nation will be- advantage of the United States. We have
in mind
come secure." He therefore proposed "That all the particularly the Tariff Truce, about which so much
nations of the world should enter into a solemn and has been heard of late. The popular understanding
3396
Financial Chronicle
May 20 1933
has been that these involved important concessions ings of the Conference, adopt any new initiatives
on the part of other countries. As a matter of fact, which might increase the many varieties of difficulties now arresting international commerce, subject
they appear to involve little or no concession of any to the proviso
that they retain the right to withbe
to
great consequence, if newspaper accounts are
draw from this agreement at any time after July 31
trusted, or, if that is not the case, foreign comment 1933, on giving one month's previous notice to the
is difficult to understand. Take the matter of the Conference."
Truce with Great Britain. The British Government
appears to be continuing to arrange new treaties IN EXPRESSING unqualified approval of that
giving it preferred treatment over the United States,
part of President Roosevelt's cable message dealnotwithstanding the supposed limitation imposed ing with the subject of armaments,it must not be ununder the Tariff Truce arrangement with that coun- derstood that we endorse also what he says about the
try. We would direct particular attention to the things to be achieved at the coming world Monetary
following cablegram from London, May 15, which and Economic Conference. In that portion of his
message, Mr. Roosevelt had the following to say:
appeared in the New York "Herald Tribune":
"The
Conference must establish order in place of the
"Great Britain to-day signed trade treaties with present
chaos by a stabilization of currencies, by
pubwill
be
made
terms
Sweden and Norway. Their
freeing
the
flow of world trade, and by international
authoritatively
stated
It
is
days.
few
within
a
lic
action
to
raise
price levels." "Freeing the flow of
only
that, in view of the present tariff truce, the
country
which
this
world
trade"
is,
of course, to be commended, but
negotiations
in
new trade treaty
will engage during the period of the truce will be when the President also speaks of "a stabilization of
with Finland. A delegation from that country is currencies" and "international action to raise price
to arrive next week. Negotiations with Iceland, levels," he is going too far, and, what is more, is
already in progress, will be continued.
attempting the impossible, for we do not think that
"The new treaty with Norway, it is understood, all the nations of the earth
combined could bring
gives Great Britain a quota of about 70% in the
the
raising
of
price
about
a
levels
if the current were
treaty
and
the
coal,
annual Norwegian imports of
running the other way. What is meant by "a stabilwith Sweden gives a similar quota of about 50%.
"Neville Chamberlain, Chancellor of the Exche- ization of currencies" is, of course, well known. The
quer, announced in the House of Commons this President means to debase the American dollar to
afternoon that, in view of the tariff truce, the the depreciated level of some other leading currenBritish Government would refrain for the present cies, as part of his plan to raise commodity values
from making orders for increased customs duties not generally. That is the most objectionable feature of
requested before May 12, although the Import Du- all in his proposed plan of inflation,
and nothing in
ties Advisory Committee would continue with its
be
said.
defense
of
it
can
statutory duties, including the receipt and examinaIf the producer is to get higher prices for his goods
tion of applications for new or altered duties.
and
is to receive his pay in a unit of value worth
"'This means,' according to the "Times," 'that
less, we cannot see how he is to
correspondingly
the works of the British Government for revival of
agriculture by quantitative regulation of supplies profit at all by the process. Not alone that, but it
from abroad will not be essentially interrupted, and has already been demonstrated by recent events
that the conclusion of such trade agreements as that Mr. Roosevelt's scheme for depreciating curhave not yet been published will not be interrupted rencies, misnamed "stabilization," is
fraught with
at all, even if they contain a provision for quantitacapacity for mischief. In deliberately forcinfinite
tive regulation of imports.'"
ing the United States off the gold standard and in
In view of all this,it is difficult to see what advan- refusing to pay out gold, the President has placed
tage the United States is gaining, or likely to gain, in jeopardy the currency and economic systems of
from the Tariff Truce arrangement with Great the countries still remaining on the gold basis, more
Britain. The agreement itself, as given out, was particularly France, Belgium and Holland. As the
rather cryptic in its form of expression, and yet only countries still paying out gold in the ordinary
seemed to be all-inclusive, and, accordingly, to forbid way, there appears to be grave danger that these
just the kind of new arrangements discussed in the countries may not be able to continue on the gold
foregoing newspaper comment. As given by the level, and thus the effect would be to drag them
Associated Press, in a cable dispatch from London, down to the depreciated levels of Great Britain,
May 12, the first two paragraphs of the Tariff Truce the United States, Japan and the other countries
pact read as follows:
already forced off the gold standard. Is that calcu"The Governments of the United Kingdom, Ger- lated to promote good international relations, and
many, Belgium, the United States, France, Italy, is it to be viewed as being in accord with fair and
Japan and Norway, represented on the Organizing just dealings with the countries concerned? AnyCommittee for the Monetary and Economic Confer- way, why should we engage in attempts to underence, convinced that it is essential for the successful mine their economic and currency systems?
conclusion of the Conference that measures of all
kinds which at the present misdirect and paralyze
NOTHER message to Congress has come from
international trade be not intensified pending an
President Roosevelt the present week. On
opportunity for the Conference to deal effectively Wednesday he sent to Congress what
is called an
with the problems created thereby, recognize the Industrial Recovery bill, combining a
plan for Fedurgency of adopting at the beginning of the Confereral direction of business under fair competition
ence a tariff truce, the provisions of which shall be
with an outlay by the Government of $3,300,000,000
laid down by common agreement.
for
public works "to prime the pump of activity and
"The said Governments, being further convinced
As summarized in newspaper acemployment."
that immediate action is of great importance, themwould be conferred upon the
powers
counts,
broad
selves agree and strongly urge all other Governments participating in the Conference to agree that President, and if, after public notice and hearing,
they will not, before June 12 nor during the proceed- he should find that it is essential to license business
A
Volume 136
Financial Chronicle
to make a code of fair competition effective, he may
lay down a requirement for licensing under such
regulations as he may prescribe. The measure,
which would make the President practically a supervisor of all industry, as well as dictator of the Government public improvement policies for the next
two years, was accompanied by a message urging
prompt action in order that improvement in business, already evident, may be sustained and the
country enabled "to pass on to better things."
The outlay of $3,300,000,000 for public works
would require the imposition of new taxes and the
question now is as to the best way of raising the
taxes. "In carrying out this program," the President said, "it is imperative that the credit of the
United States Government be protected and preserved. This means that at the same time we are
making these vast emergency expenditures, there
must be provided sufficient revenue to pay interest
and amortization on the cost, and that the revenues
so provided must be adequate and certain, rather
than inadequate and speculative." The President
went on to say that:"Careful estimates indicate that
at least $220,000,000 of additional revenue will be
required to service the contemplated borrowings of
the Government. This will of necessity involve some
form or forms of new taxation."
The President remarked that he would not make
any specific recommendation as to the best means
of raising these new taxes, and expressed the hope
that the Committee on Ways and Means of the House
of Representatives would make a careful study of
revenue plans and be prepared by the beginning of
the coming week to propose the taxes which they
judge to be best adapted to meet the present need
which will at the same time be least burdensome to
the people. ,At the end of that time, if no decision
has been reached, or if the means proposed do not
seem to be sufficiently adequate or certain, he deelared it to be his intention to transmit to Congress
his own recommendation in the matter. He also
threw out the suggestion that whenever the repeal
of the Eighteenth Amendment, now pending before
the States, shall have been ratified, the revenue to
be obtained from that source would "yield enough
wholly to eliminate these temporary taxes."
A sales tax has been suggested for the purpose,
and current comment has been to the effect that the
President might waive his previous objections to
this form of taxation. We imagine, however, that
he will hesitate about assenting to this kind of tax
when he discovers how the new sales tax in New
York State, which has just gone into effect, is
working. Mark Graves, President of the New York
Tax Commission, is making public, from day to day,
his rulings as to how the tax is to be applied. He
has just laid down the rule that deductions of business costs and expenses cannot be made in computing the amount of the tax, since it is a tax on gross
sales. He gives the following illustration to show
how the tax must be computed: "The merchant
tailor who makes a suit of clothes cannot deduct the
cost of the materials used or the labor employed in
making the suit. The seller at retail who borrows
money to carry on his business cannot deduct interest paid, nor can the retailer subtract from receipts
the cost to him of rent, heat, light, advertising or
any other business expense." This statement is certainly plain enough. But consider how it works in
the case of the merchant tailor referred to. He
3397
makes one suit a day, for which he gets, let us say,
$35. As the sales tax is 1%, this means that he
would have to pay a tax of 35c. for each suit made.
It is obvious that at that rate he would have to pay
35c. tax on each of the six suits he made during the
week, or a total of $2.10 per week. Just think of a
poor tailor being obliged to pay $2.10 a week to the
State. If, now, the Federal Government comes
8% or
along with another tax of the same kind (11/
1 1/5% has been mentioned in the discussion), this
would oblige aforesaid tailor to pay $2.52 in addition to the $2.10 which the State, under its new
law, is exacting from him. Is there not danger of
the country's industries being taxed to death under
the free and easy way in which the two forms of
government are authorizing new appropriations and
new expenses?
HE Federal Reserve condition statements reveal no new features the present week, and
if inflation is to occur as a result of the inflationary
rider attached to the Farm Relief bill it still remains for the future to show it. Both the Reserve
banks themselves and the member banks show a further improvement in their general condition. Borrowings of the member banks, as reflected in the
discount holdings of the 12 Reserve institutions,
were further slightly reduced during the week, dropping from $338,241,000 to $330,225,400. At the same
time member bank reserve balances at the Reserve
banks moved up from $2,089,115,000 to $2,114,283,000. The holdings of acceptances purchased in
the open market of the 12 Reserve institutions also
were further reduced during the week, decreasing
from $112,607,000 to $77,543,000. The changes in
the holdings of United States Government securities
by the 12 Reserve banks were again inconsequential,
the total for this week (May 17) being $1,836,598,000, and for last week (May 10) $1,837,193,000.
As a result of the lower discount holdings, and of
holdings of acceptances, the volume of Reserve credit
outstanding, as measured by the total of the bill and
security holdings, suffered a further contraction
from $2,293,505,000 to $2,249,770,000. The amount
of Federal Reserve notes in circulation also underwent some further contraction, falling from $3,349,753,000 to $3,299,995,000, though as partial offset
to this the amount of Federal Reserve bank notes in
circulation (against which no cash reserve is required) increased from $62,835,000 to $74,218,000.
Gold holdings moved still higher, and at $3,467,508,
May 17, compare with $3,442,134,000, May 10, and
with only $2,919,032,000 12 months ago, on
May 18 1932.
With gold holdings larger and liabilities diminished, both on deposit account and on account of
Federal Reserve note issues, the ratio of total gold
reserves and other cash to deposit and Federal Reserve note liabilities combined has risen still higher,
and this week stand at 67.1% against 66.4% last
week. It is proper to say, however, that the Reserve
authorities have this week changed their method of
computing the reserve ratio. They now include the
"non-reserve" cash, previously excluded, with other
cash, thereby swelling the reserve ratio. This item
last week amounted to $100,316,000. The amount
of United States Government securities held as part
collateral for Federal Reserve note issues diminished
during the week from $633,400,000 to $613,400,000.
Holdings of domestic acceptances for account of
T
3398
Financial Chronicle
May 20 1933
foreign central banks keeps steadily moving lower, and of imports $38,522,000, or 30.4%. For the 10
along with the holdings of acceptances by the Re- months of the current fiscal year exports have
serve banks themselves, and the reason presumably amounted to $1,206,158,000 and imports to $938,is that with the decline in acceptance rates the yield 602,000, the excess of exports being $267,556,000.
from the acceptances keeps diminishing. The for- For the same period of the preceding fiscal year exeign holdings of bills this week are down to $38,- ports were $1,672,287,000 and imports $1,507,886,000 as against $41,340,000 last week.
714,000, exports exceeding imports by $164,573,000.
The reduction in exports for the 10 months of the
NE of the country's great public utilities, present fiscal year is $466,129,000, or
27.9%; the
namely, the Associated Gas & Electric Co., is decrease in imports $569,112,000,the loss
being equal
taking time by the forelock and arranging for the to 37.7%. The decline in the value of
both exports
reduction of fixed interest charges in advance of and imports for April was relatively less
severe than
the actual need for the step in order to maintain and that for the 10 months' period, but in
some measure
improve its credit. The action is to be commended this difference was due to the fact that
it was at
as being in line with a wise policy. In the circular this time last year that the recession
in the foreign
just issued to the debenture-holders the Associ- trade of the United States became
more marked.
ated Gas & Electric Co. offers a plan for rearrang- This was especially true as to exports.
ing capitalization with that end in view. The cirRaw cotton contributed a further loss to the value
cular points out that so far, notwithstanding a sub- of exports last month, but actually in
dollars as
stantial decline in earnings, bank holidays, slow well as in the ratio of loss, exports other
than cotton
collections, higher taxes and reductions in rates, the showed a heavier reduction. Cotton exports
in April
debenture interest has been paid. The materially 1933 were 451,700 bales against 501,600
bales in
lessened use of electricity and gas for industrial March and 553,900 bales in April
1932. Last
and commercial purposes, which for some time was month's shipments abroad of cotton
were the lowest
largely offset by increased use for residential pur- of any month since last June. The
value of cotton
poses, has been followed by considerable curtailment exports in April of this year was
$16,935,000, comof consumption for domestic purposes. For the 12 pared with $20,650,500 a year ago.
Exports other
months ending March 31 1933, the fixed interest than cotton last month were about
$88,000,000, comcharges were $12,388,091.
pared with $114,444,500 last year, the decline being
For the same period of 12 months the consolidated $26,380,000, this year's figures being
23.0% lower.
net earnings of the company and its subsidiaries,
Gold exports and imports in April were materially
after depreciation and after all charges of subsidi- reduced from those of the two
preceding months.
aries, were $14,801,844. This left a margin of Gold exports last month amounted
to $16,741,000
;2,413,749 in excess of the company's fixed interest and imports to $6,769,000. For
the 10 months of
charges, which the managers do not consider a mar- the current fiscal year gold exports
have amounted
gin sufficiently large to maintain high credit. It is to $108,088,000 and imports to
$396,052,000, leavurged that while the company may be able to meet ing an excess of imports of
$287,964,000. During the
debenture interest if general conditions do not be- same period in the preceding
fiscal year, gold excome decidedly worse, the dangers of fixed interest ports were $795,498,000 and
imports $483,244,000.
securities at times like the present are becoming Exports at that time exceeding
imports by $312,more and more apparent. Readjustment of fixed 254,000. The silver movement was
further reduced
interest charges is in accord with the requirement in April, exports amounting to only
$171,000, while
of the time. Accordingly, three options for the ex- imports were $1,520,000.
change of the present fixed interest debentures for
income debentures on which payment of interest
HE New York stock market this week has conwould be required only as earned, are offered for the
tinued to maintain a firm tone, though prices
acceptance of the debenture holders, and it would have been more or less reactionary at times. Bond
appear to be the part of wisdom for these deben- prices have continued to move almost steadily upture holders to give ready assent to the exchange ward, especially in the case of the low-priced and
under one of the options.
speculative issues, and this constitutes the best
feature of the market, inasmuch as improvement in
HE country's foreign trade in April was again bond prices should obviously
precede a rise in the
reduced in value, after the slight improvement stock market. One depressing agency
the early part
that appeared in the March statement. Both ex- of the week was the troubled
outlook in Europe. The
ports and imports, of merchandise last month were German Chancellor,
Adolf Hitler, was scheduled to
below those of the preceding month, and with the make an address before
the Reichstag on Wednesexception of the short month of February, and, as day, the Reichstag having
been called in special sesto imports, of July of last year, they were the low- sion to hear his remarks, and
this address was looked
est of any month for many years past. As to the forward to
with decided apprehension in'view of the
merchandise exports, it is necessary to go back to belligerent attitude that the
Hitlerites have been
April 1899 for any equally low amount for that displaying. There were really fears
that because of
month, and for imports to April 1908. Exports last the fast-developing hostility between Germany and
month were valued .at $105,000,000, and imports at the other leading countries of Europe, a new Euro$88,000,000. The balance of trade continues on the pean war might be precipitated at almost any time.
export side, and amounted to $17,000,000. In April As reflecting this, the stock market was reactionary
of last year exports were $135,095,000, and imports and lower on Saturday last, and again on Monday
$126,522,000, the excess of exports for that month and Tuesday. On Tuesday came the news of the
being $8,573,000.
special cable dispatch addressed by President RooseThe decline in the value of exports last month velt to the 54 potentates who are participating in the
from a year ago was $30.095,000, equal to 22.3%, Disarmament Conference at Geneva, and which for
O
T
Volume 136
•
Financial Chronicle
over a year has been barren of results, making an
urgent appeal for disarmament all around in oraer
to remove the menace of another general conflagration in Europe. This caused somewhat of an improvement in the stock market towards the close of
Tuesday.
Mr. Roosevelt's message was evidently timed with
a view to modifying the temper and utterances of
Chancellor Hitler in his address on Wednesday, and
in this the message was successful, as the German
'Chancellor declared unqualified approval of the
Roosevelt propositions for disarmament. The Hitler address was received by a radio broadcast early
on Wednesday, and had the effect of causing a sharp
upward spurt in stocks on that day. A further
favoring feature on the same day, and tending further to stimulate the rise in stocks, was the action
of the American Tel. & Tel. Co. in maintaining the
quarterly dividend at 2/
1
4%, or 9% per year. This
action had been looked forward to with much interest, and the fact that the dividend rate was continued at the old figure, in face of heavily reduced
earnings, was taken to indicate that the directors
of the company had faith that the Signs of recovery
in trade and business which have latterly been multiplying on every side would continue to make progress, thereby correspondingly improving the outlook
for the American Tel. & Tel. Co. On Thursday extensive sales to realize profits caused some shading
of prices, and the same was true of Friday, though
the selling was well taken and the tone of the stock
market and the bond market continued strong and
confident, with the railroad stocks especially strong.
The commercial markets the present week have been
less buoyant, and this had its effect in tempering
the rise in stocks. Both grain and cotton prices have
moved slightly lower after the recent large advances,
and silver prices also have receded. Besides this,
the foreign exchanges have turned more in favor
of New York, which means that the depreciation of
the American dollar has lessened,'while the speculative fraternity is inclined to regard further depreciation rather than less depreciation as part of
the scheme for raising commodity values to higher
levels. The rate for cable transfers on London sold
down to $3.853
4 yesterday, and closed .at $3.863
/
4 as
against $3.97/
3
4 the close on Friday of last week;
the French franc on cable transfers dropped to
4.52/
1
4c. May 17, and closed yesterday at 4.59c.,
against 4.631
/
2c. on Friday of last week. The price
of silver in London yesterday was 18/
1
2 pence per
ounce against 19 pence last Friday. The July option
for wheat in Chicago touched 71c. on Friday, closing at 713
/
4c. against 75c. the close on Friday of last
week. September corn in Chicago closed yesterday
at 47/
1
2c. against 49c. the previous Friday. Spot
cotton at New York was quoted yesterday at 8.50c.
against 8.95c. the previous Friday.
A strong feature the present week, the same as in
previous weeks, has been the growing activity of the
iron and steel trade. The "Iron Age" now reports
the steel mills of the country engaged to 35% of
capacity against 31% last week, 29% the previous
week, 25% the week before, and only 15% at the
beginning of April. Some further dividend reductions and omissions have been reported during the
week. The Standard Gas & Electric Co. omitted the
quarterly dividend on the $4 cumul. pref. stock, and
the Engineers' Public Service Co. deferred action on
the quarterly dividend on the $5 cumul. pref. stock,
3P9
also on the $5.50 cumul. pref. stock, and on ,the $6
cumul. pref. stock until the June meeting. The Mergenthaler Linotype Co. passed the quarterly dividend on its capital stock, and the Waldorf System,
Inc., also omitted the quarterly dividend payable
about July 1 on its no-par common stock. Of the
stocks sold on the New York Stock Exchange, 626
touched new high levels during the present week
and five stocks dropped to new low levels, while for
the New York Curb Exchange the record is 206 new
highs and six new lows. The call loan rate on the
New York Stock Exchange has again continued unchanged all through the week at 1%.
Trading has continued active. On the New York
•Stock Exchange the sales at the half-day session on
Saturday last were 2,273,617 shares; on Monday
they were 3,151,760 shares; on Tuesday, 3,291,711
shares; on Wednesday, 4,794,300 shares; on Thursday, 4,112,720 shares, and on Friday, 3,279,562
shares. On the New York Curb Exchange the sales
last Saturday were 308,030 shares; on Monday,
363,323 shares; on Tuesday, 414,989 shares; on Wednesday,612,751 shares; on Thursday, 528,680 shares,
and on Friday, 421,425 shares.
As compared with Friday of last week, irregular
changes are disclosed, the most of them small. Gen1
2 against 201
/
2
eral Electric closed yesterday at 19/
on Friday of last- week; North American at 25
against 261/
8; Standard Gas & Elec. at 11% against
15; Consolidated Gas of New York at 53 against
/8; Co54%; Pacific Gas & Elec. at 24% against67
1
2; Electric
/8 against 17/
lumbia Gas & Elec. at 167
3
4; Public Service
Power & Light at 7/
3
4 against 8/
1
4; International
of New Jersey' at 47 against 47/
Harvester at 33 against 35; J. I. Case Threshing
Machine at 59/
1
2 against 62; Sears, Roebuck & Co.
at 26/
1
2 against 281
/
a; Montgomery Ward & Co. at
217
/8 against 24; Woolworth at 361/
2 against 371/
4;
1
2 against 487
/8; Western
Safeway Stores at 48/
/
4; American
Union Telegraph at 40% against 421
/
8; International
4 against 1067
Tel. & Tel. at 1093
/
2; Brooklyn Union
1
2 against 131
Tel. & Tel. at 12/
1
2; United States Indus4 as against 78/
Gas at 761/
8; American Can
3
4 against 291/
trial Alcohol at 30/
1
4
/8 against 82¼; Commercial Solvents at 16/
at 817
1
/
4
Co.
at
87
/
8
against
Shattuck
&
9
,
and
/8;
against 167
Corn Products at 69 against 70%.
4
Allied Chemical & Dye closed yesterday at 1013
8 on Friday of last week; Associated Dry
against 971/
/
4; E. I. du Pont de Ne4 against 111
Goods at 121/
8; National Cash Register
4 against 641/
mours at 621/
/
8
A at 16/
3
4 against 151/8; International Nickel at 133
/
8 ex-div.
against 141
/
4; Timken Roller Bearing at 223
4; Johns-Manville at 30 against 30; Gilagainst 231
/
/
8 •against 13%; National
lette Safety Razor at 125
Dairy•Prodncts at 19 against 18½; Texas Gulf Sulphur at 257/s against 26; American & Foreign Power
at 10% against 11%; Freeport-Texas at 31 against
313
4; United Gas Improvement at 18% against
18%; National Biscuit at 49% against 30%; Coca1
2; Continental Can at 543
Cola at 86% against 84/
/
8
against 56; Eastman Kodak at 75 against 721
/
2; Gold
2; Standard Brands
Dust Corp. at 201/
8 against 201/
at 18 against 1834;Paramount Publix Corp. ctfs. at
3
4 against %; Westinghouse Elec. & Mfg. at 3614
against 38; Drug, Inc., at 47 against 48; Columbian
Carbon at 52 against 54%; Reynolds Tobacco class
B at 40 against 401
/
4; Lorillard at 18% against
1834 ; Liggett & Myers class B at 823
4 against 8314,
and Yellow Truck & Coach at 53/ against 514.
3400
Financial Chronicle
The steel shares have moved with the general market. United States Steel closed yesterday at 47%
against 491/
8 on Friday of last week; United States
Steel pref. at 84% against 84; Bethlehem Steel at
257
/
8 against 26%, and Vanadium at 191/
4 against
18%. In the auto group, Auburn Auto closed yesterday at 49% against 477
/
8 on Friday of last week;
General Motors at 223
/
4 against 24%; Chrysler at
2014 against 2014; Nash Motors at 173/8 against 18;
Packard Motors at 4% against 4/
1
4; Hupp Motors
at 41/
8 against 4, and Hudson Motor Car at 71/
4
against 71/
2. In the rubber group, Goodyear Tire &
Rubber closed yesterday at 303
/
4 against 317
/8 on
Friday of last week; B. F. Goodrich at 11% against
12%, and United States Rubber at 8% against 91/
8.
The railroad shares have continued to display
extra strength at times.
,Pennsylvania RR. closed
yesterday at 24% against 243
/
4. on Friday of last
week; Atchison Topeka & Santa Fe at 611/
8 against
60%; Atlantic Coast Line at 42% against 38%;
Chicago Rock Island & Pacific at 81/
4 against 8;
New York Central at 28% against 287
/
8; Baltimore
& Ohio at 16% against 15%; New Haven at 22%
against 197
/
8; Union Pacific at 90 against 87; Missouri Pacific at 334 against 3%; Southern Pacific
/
8 against 231/
8; Missouri-Kansas-Texas at 12
at 233
. against 11%; Southern Ry. at 15% against 15;
Chesapeake & Ohio .at 35% agalinst 35%; Northern
Pacific at 22 against 223
/
4,and 4reat Northern at 21
against 18%.
The oil shares have continued weak features on
account of the demoralized state of the oil trade, but
recovered yesterday on news that a bill had been
introduced in Congress providing that the Secretary
of the Interior may enforce oil production quotas
for all the States. Standard Oil of N. J. closed
yesterday at 343
/
4 against 34% on Friday of last
week; Standard Oil of Calif. at 31 against 31%;
Atlantic Refining at 22% against 20%, and Texas •
Corp. at 181
/
4 against 17%. In the copper group,
Anaconda Copper dosed yesterday at 127
/
8 against
131/
8 on Friday of last week; Kennecott Copper at
171/
8 against 17%; American Smelting & Refining
8 against 29; Phelps Dodge at 11% against
at 281/
4,
11%; Cerro de Pasco Copper at 20% against 201/
4 against 47
/8.
and Calumet & Hecla at 43
EXCHANGES in the leading European
STQCK
financial centers were unsettled early this week
by the European political crisis on the disarmament
question, but sharp rallies were registered on all
markets when it appeared that President Roosevelt
would make a statement designed to aid the successful outcome of the Geneva Disarmament and
the London Economic conferences. The war scare
caused precipitate declines Monday, at London,
Paris and Berlin, but improvement followed Tuesday and was continued Wednesday, with the result
that almost all the initial losses were regained. Subsequent movements on the European exchanges were
irregular. Even the important question of the gold
standard was overshadowed for a time by the political crisis. There was increasing evidence, however,
that France will be able to remain on the gold basis
for a time at least. Officials of the French
Finance Ministry maintained stoutly, over the last
week-end, that the gold standard would not be abandoned by France. This view was reiterated by
'Finance Minister Georges Bonnet,in a speech before
the French Senate, Wednesday. Trade reports from
may
20 1933
the leading industrial countries of Europe reflect
no change of importance from week to week, despite
the occasional hopeful pronouncements regarding
the future. As the international situation eased
this week, conjecture in European centers again
turned to the prospects of the World Economic Conference, but the optimism regarding this meeting is
rather subdued.
Trading on the London Stock Exchange.was dominated, Monday, by apprehensions regarding the
European sitUation, and prices were marked down
in all departments of the market. German bonds
were especially weak, not only because of the political developments, but also because of the rumored
intentions of Reichsbank authorities to declare a
transfer moratorium. British funds sagged and industrial stocks also declined. Transatlantic trading favorites recovered part of their early losses on
good reports from New York. After a quiet opening, Tuesday, prices recovered briskly at London,
largely owing to the expectations raised by the announcement in Washington that President Roosevelt would attempt to help the prospects of. the
European conferences by a statement. British funds
were in good demand, and all other sections of the
market also improved. The cheerful tone was continued in Wednesday's dealings, but profit-taking
caused recessions from best levels in some groups.
German bonds were weak throughout. British
funds made some progress and most industrial
shares also advanced. Oil stocks dropped as a result
of a price cut in gasoline. Anglo-American issues
improved sharply. The opening Thursday was good,
owing to the excellent impression created by Chancellor Hitler's speech, but a reaction developed and
curtailed the early advances. British funds eased,
but most industrial stocks showed net improvement
for the session. International 'securities were
irregular. Dealings yesterday were quiet, with
British funds dull, while most industrial stocks advanced. International issues were irregular.
Prices fell precipitately on the Paris Bourse in the
initial session of the week, mainly because of the
disturbing news that Chancellor Hitler would speak
on the German disarmament demands before the
Reichstag. Selling developed on a large scale, while
buying orders were scarce, and prices at the close
were the lowest of the day. Money for the mid.
month settlement was 34%. The Paris market
strengthened Tuesday, on the news that President
Roosevelt would send a message on American policy.'
Rentes were especially good as Finance Minister
Bonnet announced that he would need no further
loans until the end of this year. French bank and industrial stocks were moderately better, and international securities also improved. The firm tendency
was continued in Wednesday's trading. Rentes
again surged forward as the French Senate took a
determined stand for a balanced budget. Other
securities were quiet but firm. The opening Thursday was firm, but prices sagged when reporks were
received of the excellent impression created by
Chancellor Hitler's address. Net changes for the
session were small, but in most instances declines
were recorded. Declines predominated in yesterday's trading on the Bourse.
The Berlin Boerse was weak, Monday, and the
tendency was attributed to the strained international situation. Great uncertainty prevailed regarding the future, dispatches said, and liquidation
Volume 136
Financial Chronicle
was the rule. .Equities dropped as much as 6 points,
while bonds fell heavily as well. The market tone
was distinctly better Tuesday, but advances were
confined to stocks, while bonds again were soft.
Speculative favorites among the equities soared,
some issues advancing as much as 8 to 10 points.
The belief prevailed that the promised statement by
President Roosevelt would constitute an attempt
to mediate in the dispute between France and Germany on armaments. The advance on the Boerse
was continued Wednesday, and in this session all
groups of issues participated in the forward movement. Optimism prevailed regarding Chancellor
Hitler's speech before the Reichstag, and sizable
gains were reported in most securities. A reaction
developed Thursday at Berlin, the movement being
attributed mainly :to profit-taking. Bonds were
fairly firm, but stocks weakened and sharp declines
appeared in the more speculative issues. Movements yesterday were uncertain, and most issues
showed losses for the session.
s ALREADY indicated in the earlier part of
this article, several remarkable pronouncements on peace and disarmament were placed before
the world this week by.President Franklin D.Roosevelt and Chancellor Adolf Hitler of Germany. Mr.
Roosevelt issued an appeal to all the world, Tuesday, for peace through practical measures of disarmament at the General Disarmament Conference
in Geneva, and for victory in the struggle against
economic chaos to be taken up at the World Monetary and Economic Conference in London, beginning
June 12. His message was devoted chiefly to disarmament, and it constituted another attempt to
solve this problem, which has become of high importance since the Fascists rode into powOr in Germany on a wave of renascent nationalism. The
change of European political alignments implied
in the German switch from Republicanism to Fascism, and the aggressive tone of some Nazi declarations had caused a "war scare" throughout Europe
which has been in progress for more than two
months, and which reached its highest pitch early
this week, after an announcement at Berlin that
Chancellor Hitler would proclaim the German armaments position in a set speech, Wednesday. President Roosevelt's appeal on the preceding day was
widely construed as an attempt to ward off belligerent statements by the new Fascist leader of Germany. Herr Hitler, in his speech before the Reichstag, warmly endorsed the aims of thg President, and
mildly reiterated the German demand for equality
of armaments status. There is every; indication that
President Roosevelt's message will be a ieading
factor in the further international deliberations on
the problems of peace and disarmament, as it contains proposals which would clearly go far toward
Solving the problems if they are universally accepted.
There .were several interesting sidelights on the
message, which are of especial importance because
of their.bearing on the foreign policy of the country.
President Roosevelt transmitted the text of the message to Congress, Tuesday, in a special communication which explained the need for his action on the
basis of threats to world political and economic
peace and stability. "It is high time," Mr. Roosevelt informed Congress, "for us and for every other
nation to understand the simple fact that the inva-
A
3401
sion of any nation, or the destruction of a national
sovereignty, can be prevented only by the complete
elimination of the weapons that make such a course
possible to-day. Such an elimination will make the
little nation relatively more secure against the great
nation. Furthermore, permanent defenses are a
non-recurring charge against governmental budgets,'
while large armies, continually rearmed with improved offensive weapons, constitute a recurring
charge. This, more than any other factor to-day, is
responsible for governmental deficits and threatened bankruptcy."
Exceptionally important was a semi-official explanation at the White House, Wednesday, that the
proposals made in the message to 54 nations do not
involve any departure from the long-standing international policy of the United States. There were
very distinct impressions in Paris and London that
the United States was abandoning its traditional
policy of aloofness from European affairs. "It was
made plain at the White House," a Washington dispatch to the New York "Herald Tribune" said,"that
the proposed pact would not bind the United States
to action or in any way invOlve a departure from
this Government's established policy of forming its
own conclusions and assuming its own position in
any particular case. The belief that the President
contemplated committing the United States to a
pseudo League of Nations or anything of the sort
was considered over-enthusiastic on the part of some
foreign commentators and over-fearful on the part
of some domestic commentators."
According to the informal White House explana:
tion the United States, under the President's proposals, would be under no obligations except the
following: (1) If every nation agrees to eliminate
weapons of offensive warfare the United States will
do the same; (2) if during the disarmament period
every nation agrees not to invade its neighbors, subject to existing treaty rights, the United States will
do the same; (3) if there is a violittion of any such
agreement, the United States wonld. consult with
other nations. All reports emphasized that in the
President's opinion this is no change from the longstanding and existing policy. • Nor does the communication to 54 nations impose any obligations on
the 'United States, it was maintained. In a report
to the New York "Times" it was remarked that‘the
expression of willingness to consult, together with
the reservation regarding full liberty of decision and
action by the United States, was Precisely what M.
Herriot and the members of the French mission left
Washington believing President Roosevelt had in
mind regarding American participation in world
affairs."
Also of importance in connection with this message was the fact that President Mikhail Kalinin,
of the Russian Soviet Government, was among the
heads of nations addressed directly by President
Roosevelt. It was pointed out in Congressional and
other circles that this constituted direct dealing
with the Communist Government of Russia, and
might have the effect of recognition. President
Roosevelt informed inquirers at a press conference
Tuesday, however, that he did not intend the action
to have the effect of formal recognition. "The President merely acted in the realization that the Soviet
Government, whe,ther recognized by us or not, would
participate in the London Economic Conference and
had a delegation at the Geneva Disarmament Con-
3402
Financial Chronicle
ference," a Washington report to the New York
"Times" said. "Under these circumstances, it never
occurred to the President to ignore the Soviet officials in their capacity as fellow-conferees with the
United States delegates at the two gatherings." In
some reports it was contended that the Administration eventually will move to bring about formal
recognition of Russia.
HANCELLOR ADOLF HITLER'S address on
disarmament before a special session of the
German Reichstag, Wednesday, was a forceful but
diplomatic presentation of the German case which
all nations found acceptable and distinctly reassuring. It contrasted sharply with widespread expectations that the Chancellor would utter bellicose sentiments that might increase the international strain
almost to the breaking point. The Chancellor, as
one-able correspondent put it, broke no diplomatic
china. He welcomed with "warm thanks" the proposals made by President Roosevelt the previous day
for the political and economic peace, and declared
that the German Government is ready to participate
in the work of bringing order into political and economic relations. Herr Hitler expressed the conviction, moreover, that "there is and can be only one
great task to-day, namely, that of securing the peace
of the world." Germany, more than any other
nation, is in need of security, owing to her disarmed
state, Chancellor Hitler pointed out, and he promised that the German Government will go the limit
in disarmament if other Powers would do likewise.
He warned, however, that the German Government
and people "would under no circumstances put their
signatures to any sort of document perpetuating the
discrimination against Germany." The Reichstag
approved the address by a unanimous rising vote
that constituted a demonstration of unity which all
observers considered remarkable in view of the highhanded suppression of all opponents of the Nazis.
International interest in the address by Chancellor Hitler was raised to the highest possible pitch
by a series of antecedent incidents which reflected
the world-wide anxiety regarding the aims of the
German Fascist Government, and by some dramatic
pronouncements within the Reich. It was announced in Berlin, late May 12, that Herr Hitler
would address the Reichstag on the momentous question of disarmament. The Reichstag had adjourned
last month indefinitely, after delegating all its powers to the Fascist leaders, and a special session had
to be called. This method of setting the stage for
Herr Hitler's address caused apprehension regarding his possible statements, even though it was
rather plainly intimated in Berlin that he was intent on refuting the charge that the Reich is sabotaging the Geneva Disarmament gathering by insisting
on the right to re-arm. This right was granted
Germany "in principle" last December, and the
Reich was thus induced to return to the conference
which the German delegates deserted last August.
It was widely assumed in Europe that the Fascist
Government would actually attempt to put this
right into practice and re-arm to the level of other
countries, since the other European Powers have
persistently avoided their obligation under the Versailles Treaty to disarm to the German level.
This situation occasioned fears of another World
War in every European chancellery, and the restlessness was readily communicated to the peoples
C
May 20 1933
o- f all European nations. The "war scare" was, indeed, the most acute in recent years. Contributing
greatly to the general alarm was an address by the
German Vice-Chancellor, Colonel Franz von Papen,
last Saturday,in which he glorified a war-like spirit
and "sacrificial death," and urged all Germans to
ignore the "foreign political ring similar to that
which surrounded Germany in 1914." The disappointment and alarm felt in London at the apparent development of a dangerous militaristic spirit
in Germany was made especially manifest last Sunday, when Dr. Alfred Rosenberg, special envoy of
Chancellor Hitler, was jeered at in that city by
hundreds of angry demonstrators. During his stay
of nine days in the British capital, Dr. Rosenberg
was rebuffed by the Government and by all parties,
and he admitted as he left London that British
opinion was solidly against the Reich. Interpellations of Cabinet Ministers in the British House of
Commons, early this week, reflected a similarly antagonistic attitude toward Germany.
Significant, also, were indications that the Fascist
Government of Italy felt little sympathy with the
nationalistic aspirations of the German Government
and people. Signor Dino Grandi, Italian Ambassador to London, was said to have informed Norman
H. Davis, of the United States, last week, that Italy
stood shoulder to shoulder with Great Britain and
France in the "crisis" provoked by the German desire for arms equality. The Government of France,
which is the most highly armed country in the world,
was reported over the last week-end to be considering what "sanctions" could be invoked against Germany if that nation attempted to re-arm. Foreign
Minister Joseph Paul-Boncour indicated late last
week, a Paris dispatch to the New York "Times"
said, that France is "now prepared to take a strong
aggressive stand and join all the foes of Nazidom
in an effort to crush the National-Socialist regime
by peaceful means." Paris reports went so far as
to indicate that France, Great Britain and the
United States might join in a "common front"
against Germany. A dispatch to the New York
"Times" stated that the "menace of Nazi Germany
to world peace and what can be done about it formed
the subject of discussion, Monday, between Norman
H. Davis and M. Paul-Boncour." Premier Edouard
Daladier assured the French Senate, last Saturday,
that France is fully prepared to resist invasion in
the event of a war of aggression.
The keen apprehensions reflected in such statements and reports were dispelled by Chancellor Hitler in his address before the Reichstag, Wednesday.
Germany, he declared, would be ready without further ado to dissolve her whole military establishment and destroy the scanty remnants of arms left
her if neighboring nations took a similar course.
"If, however, the others are not willing to carry out
the disarmament provisions under the Versailles
Treaty, which are equally binding upon them, then
Germany must at least insist upon its claim to
equality," the Chancellor said. "The German Government sees in the English plan a possible basis
for a solution of this question. Germany is in the
main inclined to accept a transitional period of five
years for the establishment of its national security,
in the expectation that after this period Germany's
real equalization with other nations will occur.
Germany is further unqualifiedly ready to put forward no claims whatever to the concession of
Volume 136
Financial Chronicle
weapons if within a certain period the armed nations themselves destroy offensive arms and if their
further use is forbidden by international covenant.
Germany has only a single desire—to be able to preserve its independence and protect its border."
Much of the address was devoted to German objections to the Versailles Treaty and its harsh terms.
The Reich, Chancellor Hitler said, has fulfilled the
obligations of the treaty with "suicidal fidelity, despite their inherent irrationality and easily foreseeable consequences in the international economic
crisis." He scored again the statement in the treaty
that Germany is solely responsible for the. World
War, and remarked that "the vanquished is the
guilty because the conqueror, thanks to victory, possesses the possibility of incorporating this conclusion as an introduction to the peace treaty." Again
and again the Chancellor demanded that the highly
armed countries of Europe disarm and thus afford
the Reich a security which she lacks more than any
other great nation. "According to League of Nations figures," Herr Hitler said, "France possesses
of airplanes in service 3,046; Belgium, 350; Poland,
700, and Czechoslovakia, 670, to which are added
unmeasured quantities of reserved airplanes, thousands of armored cars, thousands of heavy guns, as
well as all technical means for conducting war with
poison gases. Has not Germany more right, in
view of its defencelessness and lack of weapons, to
demand security than the armed States interbound
by coalitions?"
For President Roosevelt's proposal the German
Government is indebted with warm thanks, the
Chancellor continued. "It is ready immediately to
endorse this method of remedying the international
crisis, because it, too, believes that without a solution of the disarmament question no enduring economic recovery is imaginable," he remarked. "It is
ready to participate unselfishly in this labor of putting the political and economic world in order."
French and Polish fears of German aggression can
hardly be justified, for Germany does not possess
modern offensive weapons and is even forbidden to
construct border defenses, it was maintained. "Germany is ready at any time to renounce aggressive
weapons if the whole world also bans them," Herr
Hitler stated. "Germany is ready to join any
solemn non-aggression pact because she thinks, not
of attack, but of her security." If an attempt is
made to threaten Germany with sanctions, he declared, then such a monstrous procedure could only
be regarded as punishment for demanding disarmament of other nations, in accordance with treaties,
the Chancellor remarked. Insisting again upon the
need for revising the peace treaties, Chancellor Hitler declared that "as a nation under a perpetual
stigma, we would find it difficult to belong any
longer to the League of Nations."
PROSPECTS
of some measure of international
disarmament, or at least for some agreement
on this troublesome problem, have unquestionably
been improved by the message of President Roosevelt and the temperate speech of Chancellor Hitler.
Although the General Disarmament Conference in
Geneva had come virtually to a halt because of differences regarding the computation of effectives
under the British plan, this and other phases of the
problem were taken up with renewed optimism at a
plenary session of the gathering yesterday. The
3403
discussion had originally been set for last Monday,
and in many quarters it was believed the meeting
would be the last ever held by this long-drawn-out
and hitherto ineffectual conference. Successive
postponements staved off the meeting and perhaps
prevented a final collapse of the conference. Subcommittees of the gathering began to work on the
new phases of the disarmament question presented
by President Roosevelt immediately after his message was made known. It was indicated Wednesday that the doctrine of non-aggression urged by
the President would be incorporated into the Conference's definition of an aggressor State. This subject remains to be debated by the Conference as a
whole.
The formal session of the General Disarmament
Conference yesterday reflected some of the developments of the last week. Arthur Henderson of Great
Britain, as President of the Conference, •appealed
to the assembled delegates to withdraw amendments
to the British -plan which were blocking its general
acceptance as.a basis for a convention. "The Conference cannot continue indefinitely," he said.
"What we do in the next few days may be decisive!'
Count Rudolph Nadolny, of Germany, relieved the
tense atmosphere somewhat by announcing
promptly that his Government is now prepared to
accept the British plan of disarmament. "This constitutes further proof of Germany's moderation,
and we hope other States will bring a contribution,"
he said. Rene Massigli of France made a brief
speech, in which he declared that the time has come
to act. "France is ready," M. Massigli declared
significantly. Norman H. Davis, of the United
States, made no comments, as he was awaiting detailed instructions from Washington. The Conference adjourned until to-day, and it is expected that
the real debate on the British proposals will begin
without further delay. That the path of the Conference will remain thorny was indicated in an address of Premier Daladier of France, yesterday, in
which he informed the Senate in Paris that the
French army must be kept strong. Something may
be achieved by the General Disarmament Conference, M. Daladier admitted, but "for the present we
would be deluding ourselves if we slackened military preparations."
Interest in Geneva centered specifically on the
reactions by other nations to the Roosevelt message
and the speech by Herr Hitler. Official British and
French declarations were awaited with some
anxiety, as the nature of the almost inevitable reservations will perhaps indicate the extent to which
the sweeping Roosevelt proposals will be whittled
down and rendered ineffectual by such tactics. In
a London report of Thursday to the New York
"Times" it was stated that the British will insist
that the pledge of non-aggression exclude "police"
work in outlying parts of the world. At least one
other reservation by Great Britain is looked for,
according to the report. French views will depend,
it was thought in Geneva, on the nature of the socalled consultative pact in which the United States
is confidently expected by Paris to join. Washington dispatches have persistently stated that no
genuine change in policy is likely in Washington
on this point, but some of the European leaders who
recently conferred in Washington appear to have
very definite ideas of an impending change in the
isolationist attitude of the United States. Norman
3404
Financial Chronicle
H. Davis, United States Ambassador-at-large in
Europe, is expected to announce in detail at Geneva,
next week, the American attitude on consultative
pacts, neutrality and non-aggression.
President Roosevelt's message was received in
almost all parts of the world with tremendous acclaim. Replies promptly were received from the
heads of the numerous States to which it was addressed, and the usual expressions of courtesy naturally were incorporated in all instances. King
George of Great Britain and President Lebrun of
France remarked that the message had been transmitted to their respective Governments for study.
President von Hindenburg of Germany pointed out
that the sentiments for peace coincided with those
expressed by Chancellor Hitler. King Victor Emmanuel of Italy merely expressed thanks. The Japanese reaction remains uncertain, as the Tokio Government is now engaged in an invasion of China
which is in flagrant violation of the proposal for
non-aggression made by the President. Reports
from the Japanese capital indicate that the message will gain acceptance "in principle" by Japan,
but that there will be important reservations which
will practically nullify its effectiveness. Almost
all the smaller countries of the world expressed
eager appreciation of the message and wholehearted acceptance of the proposal for a new nonaggression treaty. In Moscow the message was
viewed with "undisguised satisfaction," according
to an Associated Press report, not only because
of its peaceful implications, but also because it
seemed to bring recognition by the United States
one step nearer.
Chancellor Hitler's address before the Reichstag
promptly dispelled the war scare of recent months
and placed the whole disarmament problem back on
the fundamental basis of all the post-war years.
The Roosevelt Administration's reaction to the address of the German leader ranged from pleasure to
barely concealed surprise, a Washington dispatch
to the New York "Herald Tribune" said. "The conciliatory tone and lofty note of the address made
an extremely favorable first impression, which the
President did not hesitate to express in an informal
statement from the White House," the dispatch
added. British observers were cheered by the mildness of Herr Hitler's address, London reports said,
but the tendency was to await transformation of
the sentiments into proofs of positive good-will at
Geneva. There was relief in Paris at the moderate
tone of the Chancellor's words, but also a good deal
of concern over the awkward situation which now
faces France as the most highly armed country in
the world and the least willing to disarm. "Herr
Hitler's speech unquestionably places France in a
delicate position," a Paris dispatch of Thursday
to the New York "Times" remarks. "Had he been
threatening, France could have refused to disarm
and would have had the world behind her. Now,
although she considers the German threat as great
as ever, the force of circumstances may compel her
to weaken her military power."
PREPARATIONS
for the World Monetary and
Economic Conference, which is to begin in
London on June 12, were continued at Washington
and in other capitals this week, with the choice of
delegates perhaps the most important concern. The
preliminary arrangements for this gathering were
may
20 1933
completely overshadowed by the political crisis in
Europe, as it was realized that the economic conference can achieve a measure of success only if the
disarmament question appears to be on the way to
amicable adjustment. Expectations regarding the
London conference were modified markedly in
Washington, owing to the political developments in
Western Europe and the divergent ideas of various
nations on the economic problems, a dispatch of
Sunday to the New York "Herald Tribune" said.
Secretary of State Cordell Hull expressed the
opinion, on Monday, reports said, that the world as
a whole will gravitate toward bankruptcy unless
the principal topics on the agenda of the World Economic Conference are dealt with in a fundamental
way without delay. It was made known the same
day that President Roosevelt had selected Secretary
Hull, J ames M. Cox and Senator Key Pittman as
delegates to the gathering, while others were under
consideration. In London it was announced Thursday by Prime Minister Ramsay MacDonald that the
British delegation would be headed by Neville Chamberlain, Chancellor of the Exchequer, and would
include the Prime Minister himself, Foreign Secretary Sir John Simon, Walter Runciman, President
of the Board of Trade, and other officials. Stanley
Baldwin, Lord President of the Council, was a conspicuous exception, and comment aroused by the
omission was met with intimations that Mr. Baldwin, who negotiated the original debt funding agreement at Washington, was expected to conduct war
debt conversations while the Conference was in
progress.
PRESIDENT
ROOSEVELT continued the preliminary conversations in Washington to
which special representatives of 11 nations had been
invited in an attempt to insure the success of the
World Economic Conference. He completed exchanges with Alberto Pani, Mexican Finance Minister, on Thursday, and a joint statement was issued
in which "special and fruitful" progress toward stabilization of the price of silver was announced. "In
the course of our conversations," the statement said,
"it has been highly satisfactory to confirm that the
judgment of the two governments coincides not only
as regards the imperative need of co-ordinated
efforts of all nations to restore economic equilibrium
in the world, but also, specifically, in connection
with the outstanding subjects in the agenda which
with such purpose is to regulate the work at the
London Conference." Removal of obstacles in the
way of normal trade relations between the two countries also was considered, according to the statement. The President began conversations with the
Brazilian delegate, J. F. de Assis-Brasil, soon after
the arrival of the latter in the capital, Wednesday.
These preliminary talks will be continued next week
with Viscount Kikujiro Ishii, of Japan, who is now
on his way to Washington.
ROAD hints were given in New York last Saturday by Dr. Hjalmar Schacht, President of the
Reichsbank, that a partial transfer moratorium impends on the external debt service due from German
private borrowers. These hints gained practical but
unofficial confirmation in Berlin, Monday. The
Board of Directors of the Reichsbank met that day
and issued an invitation to the private creditors of
German borrowers to assemble in Berlin on May 26.
B
Volume 136
Financial Chronicle
The Berlin action plainly reflected a decision
reached by Dr. Schacht, who issued a long statement on the subject of the private German debts to
foreigners on his departure for Germany last Saturday. "I have taken the opportunity to-day," Dr.
Schacht said, "of talking about banking and currency subjects, which, because they concern private
creditors, could not be the subject of discussion between governments. The problem of meeting our
foreign private debts does not lie in the possible
difficulty of having payments made by the individual debtor, but in the difficulty of securing the
foreign exchange which is needed for making the
transfer in foreign currency. As all the foreign exchange flowing into the country has to be delivered
under the present law to the Reichsbank, the debtor
can obtain foreign exchange only from the Reichsbank."
The Reichsbank President pointed out that two
and a half years ago the German central bank had
approximately $750,000,000 in gold and foreign exchange, derived partly from trade and partly from
other sources. Since that time, however, German
debtors have paid back $2,500,000,000 in gold and
foreign exchange on foreign debts, and these payments, he said, have brought the gold and foreign
exchange reserves of the Reichsbank to an exceedingly low figure. "From the Reichsbank status it
is to be seen that this figure is decreasing every
week," he continued. "In view of this situation, I
intend to ask representatives of holders of German
obligations in the various foreign countries to convene in Berlin at once and to go into the situation
with us and have them consider what would be the
best means of meeting the present situation." The
invitations sent from Berlin added nothing to this
statement. It was generally assumed in the German
capital, however, that German debtors will be requested to deposit debt service on their foreign indebtedness with the Reichsbank in blocked account
s
in marks. Such mark balances would be transferred
into foreign currencies only to the degree permitt
ed
by accumulation of gold or devisen by the Reichsbank.
In New York it was announced Tuesday that
Albert H. Wiggin, former head of the Chase National Bank and Chairman of the American delegations to several "standstill committee" meetings,
would again represent American short-term cerditors of the Reich,in the Berlin conference. A statement issued by the Federal Reserve Bank of New
York, Thursday,indicated that the problem of representation of long-term creditors of the Reich in this
country had been referred to the Foreign Securities
Committee of the Investment Bankers' Association
of America, which in turn arranged a meeting of
American houses of issue which sponsored German
bond flotations here. At that meeting it was decided
to invite John Foster Dulles, of Sullivan & Cromwell, to attend the Berlin meeting "with a view to
informing himself on the entire situation and reporting thereon," the statement said. It was announced yesterday at Berlin that the meeting would
be postponed until May 29.
Also of profound interest in connection with German external indebtedness was an announcement
by the Bank for International Settlements, May 12,
that Germany had decided to pay debt service on the
Reich Government international 5/
1
2% loan of 1930
and the 7% loan of 1924 in paper currencizs -in those
3405
countries which have abandoned the gold standard,
instead of the gold equivalent as provided in the
loan contracts. Count Krosigk, the German Minister of Finance, informed the B. I. S. of this decision, according to the announcement. As trustee
for the 5/
1
2's, the B. I. S. will refuse payment in depreciated currencies and has asked Germany to comply with the gold clause, as she has done heretofer,
it was stated. It was indicated that the trustees for
the 7's will take similar action. The German decision was prompted, according to the account of the
B. I. S., by "the decisions of certain courts of Great
Britain to the effect that the interest and principal
of sterling bonds containing the gold clause are
nevertheless payable in sterling at the nominal
amount only, and also in view of the action of the
United States Government to the effect that dollar
bonds containing a gold coin clause are payable in
current legal tender at the nominal dollar amount
only."
ER several uncertain moves into China
proper, south of the Great Wall, Japanese
forces early this month abandoned all discretion and
began an invasion of ancient Chinese territory in
order to push forward the "first line of defense"
of the Japanese puppet State, Manchukuo. Just
where this process is to end remains a question, as a
similar "need" for safeguarding territory already
captured sent the Japanese troops on several of their
earlier invasions of Chinese lands. The troops of
the invaders advanced several times in April in a
relatively small sector bounded on the south by the
Lwan River, but they were withdrawn each time.
On May 4 it was indicated by Japanese diplomatic
officials in northern Chinese cities that much more
extensive operations would be undertaken with the
objective of establishing a line through Miyun, 30
miles north of Peiping, to the coast. This advance
would be necessary, it was indicated, because of an
"ambiguous situation which has lasted too long and
become intolerable." The usual bland hopes were
expressed that the United States and Europe would
not misinterpret the motives for the Japanese
action. The contemplated movement was completed
Thursday, when the city of Miyun was taken by the
Japanese. There were warnings that Peiping itself
might be seized in the event of further Chinese "provocations." The Japanese are said to plan the establishment in the newly-occupied territory of another
buffer State, with a local autonomous administration.
'T
HERE have been no changes the present week
in the discount rates of any of the foreign
Central banks . Present rates at the leading centers
are shown in the table which follows:
T
DISCOUNT RATES OF FOREIGN CENTRAL BANKS.
amntrg.
Amnia
Belgium.-Bulgaria.._
Chile
Colombia-Csechoslovalda___
Danzig.--Denmark__
England
Estonia-Finland.-France.__
Germany_ _
Greece
Rate in
Effect
Date
May19 Established.
Preotous
Rage.
5
334
834
434
5
Mar. 23 1933
Jan. 13 1932
May 17 1932
Aug. 23 1932
Sept.19 1932
334
4
84
2
534
6
234
4
9
Jan. 25 1933 4%
July 12 1932 5
Oct. 12 1932 4
June 30 1932 2%
Jan. 29 1932 634
Jan. 31 1933 7
Oct. 9 1931 2
Sept.31 1932 5
Dee. 3 1932 10
6
234
934
534
8
Country.
Holland...
Hungary.-India
Ireland.—
Italy
Japan
Lithuania.Norway_ —
Poland _ _ _ Portugal__
Rumania.. South Africa
Spain
Sweden
Switzerland
Rate in
Effect
Dale
Mas19 Established.
3% May 11 1933
434 Oct. 17 1932
334 Feb. 16 1933
3
June 30 1932
4
Jan. 9 1933
4.38 Aug 18 1932
7
May 5 1932
4
Sept. 1 1932
6
Oct. 20 1932
8
Mar. 14 1933
6
Apr. 7 1933
4
Feb. 21 1933
6
Oct. 22 1932
34 Sept. 1 1932
2
Jan 22 um
PreMous
Rate.
234
5
4
334
5
5.11
7%
4%
7%
634
7
5
634
4
2!.O
In London open market discounts for short bills
on Friday were 7-16@3/
2%, as against %(4)3/2% on
may 20 1933
Financial Chronicle
in foreign currency, bills of
2og9-16% for three months' vious year. Reserve
Friday of last week, and 3/
, other daily maturing
advances
checks,
and
e
exchang
week.
bills, as against 3/2@9-16% on Friday of last
s reveal decreases of
liabilitie
other
and
ns
obligatio
At
Money on call in London yesterday was /%.
11,837,000 marks, 151,370,000 marks, 2,128,000
Paris the open market rate remains at 231% and in
marks, 1,423,000 marks and 13,230,000 marks,
Switzerland at 13/2%.
respectively. The proportion of gold and foreign
week
the
for
t
statemen
currency to note circulation now stands at 14.2%
HE Bank of England
in
£67,509
of
increase
an
shows
as compared with 25.3% a year ago and 65% the
ended May 17
high
new
a
to
total
the
brings
year before. Notes in circulation decreased 73,365,gold holdings which
d
amounte
ago
year
a
holdings
Gold
000 marks, reducing the total of the item to 3,336,of £186,976,757.
attended
was
gold
in
gain
the
As
504,000 marks. A year ago circulation aggregated
,501.
to £123,522
reserves
on,
circulati
in
00
£1,874,0
of
3,922,946,000 marks and 3,909,909,000 marks. An
ion
contract
by a
rose £1,941,000. Public deposits rose £4,220,000 increase is shown in silver and other coin of 55,945,000
and other deposits £4,301,100. Of the latter amount marks, in notes on other German banks of 3,372,000
£10,101,388 was to bankers' accounts, while other marks, in investments of 345,000 marks and in
accounts decreased £5,800,288. The reserve ratio other assets of 33,430,000 marks. A comparison
is now at 50.80%, in comparison with 52.48% a of the various items for three years is furnished below:
REICHSBANK'S COMPARATIVE STATEMENT.
week ago and 31.15% last year. Loans on Governon
those
and
00
£6,235,0
d
increase
Changes
ment securities
May 15 1933. May 14 1932. May 15 1932.
for Week.
other securities £349,155. The latter consists of
Relehsmarks. Retchtmarks. Retchamarks. Refehsmarks.
Assets—
—15,775,000 385,024,000 851,484.000 2,370,289,000
and bullion
discounts and advances which decreased £39,602 Gold
98,795,000 207,638,000
20,238,000
Of which depos. abroad No change
rate
The
.
—11,837,000
87,558,000 139,192.000 170,803.000
£388,757
curl%
d
increase
foreign
In
Reserve
which
s
securitie
and
0
0
0 1,417.420,000
2,928,805,00
—151,370,00
3.015,040.00
cheeks
and
Bills of exch.
+55.945,000 276,951,000 236,875,000 186,171,000
and other coin—
of discount remains at 2%. Below we show a com- Silver
18.549,000
11,370.000
7.272,000
+3.372.000
Notes on other Ger.bks.
69,642,000 102,401.000 180,833,000
—2,128,000
Advances
parison of the various items for five years:
+345,000 317,142,000 361,561,000 102,681,000
3406
STATEMENT.
BANK OF ENGLAND'S COMPARATIVE
May 17
1933.
May 18
1932.
May 20
1931.
May 21
1930.
May 22
1929.
£
.
£
2
2
£
362.363,774
370,637.000 358.439.566 351.540.860 354.694,062 15.299.748
Cireulation_a
15.595,000 21,426.913 14.966.095 21,177.728 92.822.000
Public deposits
134.670.791 107.219.991 90.659.369 95.071,654 57.507,302
Other deposit,,
56.633.516 57.836.199
Bankers accounta. 97,298.183 74,602,046 34,025,853 37,235.455 35.314,698
37,372,608 32.617,945
accounts_
Other
31.879,684 49,787,629 38.486,855
72.944.656
68,452,127
Govt.securities
23,248,481 33.387,561 31.845.895 20.480.300 27,035.158
Other securities
5.956.300 6,837.628 6,915,678
11.689,473
11,573,805
Disct.& advances_
20,119,480
11,674.676 21,698,088 25,889.595 13.642.672 60,383,523
Securities
59,664.826 63.749.487
Reserve notes & coin 76,339,000 40,082,935 151,205,686
162,747,297
158,443,549
123,522,501
186.976,757
Coin and bullion
Proportion of reserve
55.84%
54.82%
56.48%
31.15%
50.80%
to liabilities
3%
514%
24%
2%
24%
Bank rate
England
of
Bunk
with
amalgamated
wan
currency
fiduciary
he
a On Nov 29 1928
England
of
Bank
of
amount
note issues, adding at that time 2234,199,000 to the
notes outstanding.
In veAments _
Other assets
Liabilities—
Notes In circulation....
Other daily malts'. oblig
Other liabilities
Propor.of gold &foreign
curr. to note circurn.
+33,430.000
386,627,000
821,083.000
491,195,000
—73,365,000 ,336,504,000 3,922,946,000 3.909,909,000
—1,432,000 358,486,000 353,917,000 279,419,000
—13,230,000 144,978.000 690,619,000 261.282,000
_
ONS in the New York money market
—0.5%
14.2%
25.361
6861
ONDITI
remained unchanged this week, a plethora of
C
funds being available at the low rates induced by
the open market policy of the Federal Reserve banks.
Call loans on the New York Stock Exchange were
again 1% for all transactions, whether renewals or
new loans. In the .outside unofficial market loans
3 %, or a conwere reported effected every day at 4
cession of Yi% from the official rate. A slight
hardening was reported in early maturities of time
money, but there was no fundamental change. An
issue of $75,000,000 in 91-day Treasury discount
bills was awarded .Monday at an average discount
of 0.45%, against a rate of 0.48% on a similar
issue sold a week earlier. Brokers' loans against
stock and bond collateral increased $54,000,000 in
the week to Wednesday night, according to the
report of the Federal Reserve Bank of New York.
HE Bank of France statement for the week
ended May 12, shows a decrease in gold holdings of 2,937,843 francs. The total of gold which is
now at 80,904,169,894 francs compares with 78,651,492,256 francs last year and 55,628,047,909 francs
the previous year. A decrease of 1,000,000 francs
appears in credit balances abroad and in bills bought
abroad. Notes in circulation reveal a contraction
of 774,000,000 francs reducing the total of notes outstanding to 84,025,402,770 francs. A year ago the
amount of circulation was 81,749,819,735 francs and
EALING in detail with call loan rates on the
two years ago, 77,309,848,335 francs. The proporStock Exchange from day to day, 1% has
is
now
s
at
liabilitie
tion of gold on hand to sight
ruling quotation all through the week for
French
the
been
year.
last
77.37% as compared with 71.91%
loans and renewals. The market for time
new
current
both
creditor
and
commercial bills discounted
ly at a standstill this week.
accounts record increases of 132,000,000 francs and money has been practical
ions in 90-day maturities.
656,000,000 francs while advances against securities There were two transact
at 34@,1% for 30- to 60-day perfell off 49,000,000 francs. Below we furnish a com- Rates are nominal
4 % for four months
iods, 1% for three months, 1@13'.
parison of the various items for three years:
T.
and
STATEMEN
six
five
for
IVE
months. The market
and 1@13/2%
BANK OF FRANCE'S COMPARAT
has
paper
been
quiet this week, and
for commercial
Changes
May 12 1933 May 13 1932. May 151931.
for Week.
is
paper
of
supply
somewhat larger, it is
while the
Francs.
Francs.
Francs.
Planer.
e
the
moderat
of
demand. Rates are
09
short
still
—2.937,843 80,904,169,894 78.651.492,256 55,628.047.9 6
Gold holdings
—1,000.000 2,482,477,045 4.654.225,930 5,574,436,81
Credit bale, abroad.
choice
extra
running from 4 to
for
names
134@2%
a French commercial
3.551 465.276 4.775.590.055
bills discounted.- +132.000.000 3.089.431,421 6.232.571.84
2%
10
for
234@23/
5
20.587,809,4
less known.
and
0
names
1,372,583,62
months
6
—1,000.000
b Bill, bought abr'd
2,656.352.576 2.767.225.746 2.840,568.476
D
—49,000.000
Adv. against secure.
35
35
Note circulation. _ —774,000.000 84.025.402.770 81,749,819.770 77.309,848.3
22,319,576,954
Credit current accts. +658,000,000 19,594,169.327 27,826,646,6
Propor of gold on
55.83%
71.91%
77.37%
+0.09%
hand to eight liab_
abroad.
a Includes bills purchased In France. b Includes bills discOunted
HE market for prime bankers' acceptances has
been smaller this week though the supply of
offerings has been somewhat improved. Rates are
ns of the American AccepHE Reichsbank's statement for the second quar- unchanged. The quotatio
up
bills
to and including threefor
Council
tance
of
bullion
and
ter of May shows a loss in gold
/% bid and IA% asked; for four
15,775,000 marks. The total of bullion is now months' bills are
3 % asked; for five and six
bid and 4
385,024,000 marks in comparison with 851,484,000 months, 'M%
13/8% bid and 1% asked. The bill buying
marks last year and 2,370,289,000 marks the pre- months,
T
3407
Financial Chronicle
to London, as it has for months past, as the only
rate of the New York Reserve Bank is 2% for bills
secure repository. Hence the position of Lombard
running from 1 to 90 days; 24% for 91 to 120 days,
abnormally easy, with loan charges
and 23/2% for bills due in 121 to 180 days. The Fed- Street remains
at more or less nominal figures. Cureral Reserve banks' holdings of. acceptances have and bill rates
to rent rates for bills, as during the past few months,
dropped during the week from $112,607,000
t. There is no possible way at
$77,543,000. Their holdings of acceptances for are without preceden
all the money which has been flowforeign correspondents also decreased during the week present by which
during the past several months can
from 1,340,000 to $38,886,000. Open market rates ing to London
find profitable employment and it seems quite
for acceptances are as follows:
.
probable that these funds, which are chiefly foreign,
SPOT DELIVERY
—180 Days— —150 Days— —120 Days—
Asked.
will remain and even increase in volume until world
Bid.
Asked.
Bid.
Asked.
Bid.
31
1
74
1%
1
1;i
bills
conditions are more clearly resolved. With the upPrime eligible
—90Days— —60Days— —30Days—
in security prices in the New York market
swing
Asked•
Bid.
Asked.
Bid.
Akked.
34
34
34
has developed during the past few weeks,
34
which
34
bills
Prime eligible
DAYS.
FOR DELIVERY WITHIN THIRTY
funds should be rushing to this side from all European
134% bid
Eligible member banks
134% bid
centers greatly to the relief of London, but under the
Eligible non-member banks
--0-circumstances where no degree of acumen can forethe
in
week
cast the trend of currency and fiscal matters in this
HERE have been no changes this
banks.
Reserve
country, such a movement cannot take place and in
rediscount rates of the Federal
in
effect
now
rates
view of the great confidence in the pound funds must
The following is the schedule of
t
differen
the
at
paper
of
continue to accumulate in the London reservoir.
for the various classes
Call money against bills in London is in abundant
Reserve banks:
DISCOUNT RATES OF FEDERAL RESERVE BANKS.
supply at 4% down to Yi.%. Two-months' bills are
to
quoted 4% to /%; three-months' bills
Rate in
Previous
Date
Illfeet on
Federal Reserve Bank.
six4%;
to
at
9-16%
Rate.
bills
'
-months
EvlablIshed,
four
9-16%;
19.
May
234
3 % to 13-16%. Gold continues to
Oct. 17 1931
months' bills at 4
334
BOErtOn
334
Apr. 7 1933
3
New York
3
Oct. 22 1931
334
come to the open market in London, the only open
Philadelphia
3
Oct. 24 1931
334
Cleveland
4
1932
Jan. 25
334
market for gold in the world, attracted by the high
Richmond
3
Nov. 14 1931
334
Atlanta
234
1933
4
Mar.
334
premium.
chicalto
234
Oct. 22 1931
334
St. Louis
4
Sept. 12 1930
334
MInneapolLs
For the last few weeks it would seem that
3
1931
23
Oct.
334
Kansas City
4
1932
28
Jan.
334
Dallas
neither the Exchange Equalization Fund nor the
234
Oct. 21 1931
334
San Francisco
Bank of England has taken any of the open market
with
offerings owing largely perhaps to the high price, but
TERLING exchange is exceptionally dull,
market,
due also to the fact that the Bank of England's gold
trading highly nominal in the New York
other
in
holdings are now at record high levels and can be
although the pound is in greater demand
of
thinness
still further increased at will as the British authorities
financial centers. Due largely to the
e
exchang
foreign
have large amounts of gold earmarked in New York,
the market and to the hesitancy of
high
the
from
and doubtless in one or two other centers. At
Paris
traders, quotations have receded
ago,
weeks
two
all the open market offerings of gold are
y
present
Saturda
ranges of last week. On
in
opened
s
foreign account and represent purchases
for
transfer
taken
cable
it will be recalled, sterling
been
has
week
ntal and other gold hoarders. This dethis
Contine
by
range
The
New York at 4.044.
4 for bankers' sight bills, com- mand is so keen that there is a substantial premium
from 3.974 to 3.853
4 and 4.044 over franc parity in the price being paid. On Saturpared with a range of between 3.903
this week
last week. The range for cable transfers has been day last the premium was one shilling and
On
pence.
three
shilling
4, compared with a range of has been as high as one
4 to 3.853
from 3.973
gold
of
£10,000
bought
s
hoarder
between 3.91 and 4.044 a week ago. The foreign Saturday last gold
exchanges everywhere continue in the state of de- in the open market at 123s. 6d. On Monday £25,000
moralization which developed with the break in the was taken for export at 123s. 3d. On Tuesday
dollar. The condition has spread to all currencies £180,000 was taken for export at a premium of
acof the world. Traders are utterly at sea and there On Wednesday £90,000 was sold for Continental
y
On
Thursda
3d.
is.
of
m
premiu
trading
a
e
count at 124s.,
is no possibility of any foreign exchang
2d.
at
123s.
account
foreign
for
sold
in
was
l
0
position
£120,00
room of any bank taking a technica
regard to any currency for the time being. There On Friday £100,000 was taken for Continental
can be no change in this respect until the conclusion account at a premium of 10d.; the quotation was
of the World tconomic Conference scheduled to 123s. id. The Bank of England statement for the
meet in London on June 12. The interest of world week ended May 17 shows an increase in gold holdmarkets continues to be centered upon the course ings of £67,509, the total standing at the record high
of the United States dollar. Since February and of £186,976,757, which compares with £123,522,501 a
particularly during the past few weeks the probable year ago, and with the minimum of £150,000,000
status of the dollar is largely responsible for all the recommended by the Cunliffe committee.
At the Port of New York the gold movement for
doubts and uncertainties in the foreign exchange
in
swings
sterling
the week ended May 17, as reported by the Federal
markets of all countries. The
ly
are
units
extreme
e
Reserve Bank of New York, consisted of imports of
and in all other foreign exchang
most
icuous
the
inconsp
$27,000, chiefly. from Latin American countries.
erratic and often result from
all
on
curmarket
the
of
The
views
Exports consisted of $1,064,000, of which $864,000
transactions.
is
barely
it
possible
and
was shipped to Uruguay, $100,000 to England, and
hourly
change
almost
rencies
ns
and
operatio
sizable
0 to France. • The Reserve Bank reported a.
to
through
put
8100,00
traders
for
loss.
without
of $1,064,000 in gold earmarked for foreign
out
decrease
come
can
they
that
know
ng
increasi
steadily
is
.
In tabular form the gold movement at the
of
account
sterling
prestige
The
throughout the world and money continues to flow Port of New York for the week ended May 17, as
Volume 136.
T
S
3408
Financial Chronicle
May 20 1933
reported by the Federal Reserve Bank of New York, it would only be due to the
absolute impossibility of
was as follows:
maintaining parity of exchange. Such a hypothesis,
GOLD MOVEMENT AT NEW YORK, MAY 11-MAY 17, INCL.
however,should be out of the question for a long time,
Imports:
Exports.
$27,000 chiefly from Latin Amenas the gold reserves of the Bank of France are ex$864,000 to Uruguay.
can countries.
100,000 to England.
cessively large and capable of taking care of any
100,000 to France.
withdrawals of foreign funds now on deposit in Paris.
$27,000 total
$1,064,000 total.
The Bank of France is the only central bank which
Net Change in Gold Earmarked for Foreign Account.
delivers on demand gold without restriction. The
Decrease: $1,064,000.
The above figures are for the week ended Wednes- Bank of France statement for the week ended May
day evening. On Thursday and Friday there were 12 shows a loss in gold holdings of fr. 2,937,843, the
no gold imports or exports, nor any change in gold total standing at fr. 80,904,169,894, which comheld earmarked for foreign account. There have pares with fr. 78,651,492,256 a year ago and with
been no reports at all during the week of gold having fr. 28,935,000,000 in June 1928, when the unit was
been received at any of the other United States ports. stabilized.
German marks, while largely nominally quoted,
Canadian exchange continues at a severe discount.
continue
to fluctuate rather widely in common with
On Saturday last Montreal funds were at a dismovement
the
s of all foreign currencies. The mark
count of 123%, on Monday at 123/
2%, on Tuesday
situation
is
uncertain
at present and there are no safe
at 123
4%, on Wednesday at 12%%, on Thursday
data
upon
which
traders
can prognosticate the
at 123
4%,and on Friday at 133%.
Referring to day-to-day rates, sterling exchange on course of economic and financial conditions in the
Saturday last was quiet but steady. Bankers' sight Reich. The market seems to be generally bearish
on the German outlook.
was 3.96% ® 3.97%; cable transfers 3.963
4 ®
The London check rate on Paris closed on Friday
3.973
4. On Monday the market was quiet with the
86.03, against 85.75 on Friday of last week. In
at
list generally lower. The range was 3.943
4 ®
New
York sight bills on the French centre finished
3.953 for bankers' sight and 3.94% @ 3.95% for
Friday
on
at 4.58%, against 4.63 on Friday of last
cable transfers. On Tuesday sterling was inclined
transfers at 4.59, against 4.633/2, and
week;
cable
to ease. Bankers' sight was 3.913/ @ 3.94; cable
commercia
sight
bills at 4.58, against 4.623/
l
2. Anttransfers 3.91% ® 3.943. On Wednesday sterling
eased off further in dull trading. The range was werp belgas finished at 15.94 for bankers' sight bills
and at 15.95 for cable transfers, against 16.38 and
1 for bankers' sight and 3.885
3.883/ ® 3.93%
%@
3.933 for cable transfers. On Thursday the mar- 16.39. Final quotations for Berlin marks were 26.96
for bankers' sight bills and 26.97 for cable transfers,
ket was dull and easy. The range was 3.90 @ 3.913
comparison with 27.67 and 27.68. Italian lire
in
for bankers' sight and 3.903/i ® 3.913
% for cable
closed
at 5.963/ for bankers' sight bills and at.5.96%
transfers. On Friday sterling was still easier, the
for
transfers, against 6.133
cable
4 and 6.14. Ausrange was 3.859.'@ 3.893.( for bankers' sight and
trian
schillings
closed
at
16.00,
against 16.50; ex3.853
4 ® 3.899' for cable transfers. Closing quotations on Friday were 3.863
% for demand and 3.86% change on Czechoslovakia at 3.45, against 3.56; on
for cable transfers. Commercial sight bills finished Bucharest at 0.71, against 0.73; on Poland at 13.10,
at 3.85; 60 day bills at 3.84; 90 day bills at 3.835
%; against 13.25, and on Finland at 1.74, against 1.80.
documents for payment (60 days) at 3.84, and Greek exchange closed at 0.643/2 for bankers' sight
seven-day grain bills at 3.853. Cotton and grain bills and at 0.653/2 for cable transfers, against 0.67
and 0.68.
for payment closed at 3.85.
XCHANGE on the Continental countries presents no features of importance. All are quoted
excessively high with respect to the dollar. Trading
is extremely limited and the entire market is under a
cloud of uncertainty, as pointed out in the resume of
sterling exchange. French francs and the few remaining gold currencies, while firm in dollar quotations, are nevertheless coming under severe attack
by speculative operators abroad. This is causing
much anxiety to the Bank of France and every now
and again the market discovers evidence that the
financial policies of Paris are being supported by the
London authorities. Trading in francs in the New
York market is practically at a standstill. The
market is in every way abnormal. Were it not for
the uncertainties in the fiscal plans on this side, the
French franc would probably now be ruling under
par with respect to the dollar, as all normal business
and financial factors are entirely in favor of the
United States. Paris reports that all foreign exchange markets abroad are disrupted and that the
fluctuations are attributed entirely to the confusion
following the action on gold here. Paris bankers say
that anyone can be sure that no government will
ever voluntarily devaluate the franc and that if ever
, the gold standard were to be abandoned by France
E
XCHANGE on the countries neutral during the
war is somewhat to the fore at present owing to
what appear to be severe attacks on the part of
European speculators directed against Swiss francs
and Holland guilders. These skirmishes are part of
the general attack on the gold currencies which has
been more or less in evidence since the abandonment
of gold by Great Britain in September 1931. The
attacks have become more intense during the past
few weeks owing to the position taken by Washington
on fiscal matters. At present speculative attack
appears to be centered on Holland guilders. It was
partly in order to offset an unnecessary gold drain
that the Nederlandische Bank increased its rediscount rate on Thursday of last week from 23/2% to
33/2%. The rate had been at 23/2% since April 18
1932. Gold speculators in Paris have drawn down
considerable quantities of Dutch gold in recent weeks.
It is the opinion of the Amsterdam market that there
will be a further stiffening of money rates there and
that the Nederlandische Bank will raise its rediscount
rate again shortly, indicating its determination to
defend the gold standard in Holland. Amsterdam is
strongly of the opinion that the guilder can be defended against every attack. Dutch balances abroad
are far larger than the balances held in Holland by
foreign banks. The Swiss National Bank has de-
E
Volume 136
Financial Chronicle
3409
•
cided positively against the sale of gold for hoarding
purposes. The demand for French francs in Swiss
centers has depressed the Swiss franc to a point
where gold must be shipped from Switzerland to
Paris on an exchange basis in order to hold the Swiss
franc steady.
Bankers' sight on Amsterdam finished on Friday
at 45.85, against 47.30 on Friday of last week; cable
transfers at 45.86, against 47.31, and commercial
sight bills at 45.75. against 47.20. Swiss francs
closed at 22.04 for checks and at 22.05 for cable
transfers, against 22.713/ and 22.72. Copenhagen
checks finished at 17.24 and cable transfers at 17.25,
against 17.69 and 17.70. Checks on Sweden closed
at 19.89 and cable transfers at 19.90, against 20.39
and 20.40; while checks on Norway finished at 19.69
and cable transfers at 19.70, against 20.19 and 20.20.
Spanish pesetas closed at 9.743/i for bankers' sight
bills and at 9.75 for cable transfers, against 10.073/2
and 10.08.
XCHANGE on the South American countries
continues to be nominally quoted; transactions,
even of the "bootleg" variety, are extremely limited.
Quite all the South American exchange control
boards are quoting their currencies in terms of sterling
and francs, particularly the latter, where until a few
weeks ago these units were posted on their several
markets in terms of dollars. All Argentine exchange
transactions have been practically impounded by
British interests owing to the recent trade agreement
between London and Buenos Aires. Last week
nominal quotations for Brazilian milreis were advanced in Rio de Janeiro in terms of dollars. The
Banco do Brazil, acting for the Government, will
pay in June £545,163, the balance due on the £6,500,000 loan from the Rothschilds. This liquidation will free the bank from payments arnounting to
about £20,000 daily, which it is expected will be
diverted by the bank to cover foreign unpaid shipments and free large amounts of frozen accounts of
foreign exporters and private invested capital.
Argentine paper pesos closed on Friday nominally
4 for bankers' sight bills, against 253
at 253
4 on
Friday of last week; cable transfers at 25.80, against
25.80. Brazilian milreis are nominally quoted 7.60
for bankers' sight bills and 7.65 for cable transfers,
against 7.95 and 8.00. Chilean exchange is nominally quoted 63/
s, against 63/8. Peru is nominal at
18.50, against 17.25.
E
XCHANGE on the Far Eastern countries presents no new features of special interest. The
Chinese units are irregular and show a slightly easier
tone, as exchange on China is largely governed by
world silver prices. On Saturday last the official
silver quotation in New York was 333/ cents a fine
8; on Tuesday 323
/
8; on Wedounce; on Monday 323/
nesday 333/i on Thursday 323/2, and on Friday
333á cents. Japanese yen fluctuate rather widely
owing to the demoralization of exchange since the
fall in the dollar. The yen is firm with respect to
the dollar when it is considered that only a few months
ago the Japanese authorities were hopeful of maintaining the rate steady around 203/2. The range this
week has been between 23.75 and 24.30. The Indian
rupee is strong owing to the general firmness in
sterling to which the rupee is anchored at the rate of
one shillingland:six!pence per rupee.
E
Closing quotations for yen checks yesterday were
23%, against 243,/i on Friday of last week. Hong
Kong closed at 273/g @ 273/2, against 275
% @ 27
15-16; Shanghai at 24M. @ 24%, against 25 @ 253's;
/
2; Singapore at 45%,
Manila at 50%, against 501
against 463
4; Bombay at 299', against 303, and
Calcutta at 29%, against 303/g.
PURSUANT
to the requirements of Section 522
of the Tariff Act of 1922, the Federal Reserve
Bank is now certifying daily to the Secretary of the
Treasury the buying rate for cable transfers in the
different countries of the world. We give below a
record for the week just passed:
FOREIGN EXCHANGE RATES CERTIFIED BY FEDERAL RESERVE
BANKS TO TREASURY UNDER TARIFF ACT OF 1922.
MAY 13 1933 TO MAY 19 1933. INCLUSIVE.
Noon Buying Rate for Cable Transfers in New York,
Value In United Ctoiee Money.
Country and Monetary
Unit.
May 13. May 15. May 16. May 17. May 18. May 19.
S
EUROPES
$
$
$
$
.147400* .146500* .145625* .144500* .149166* .143125*
Austria,schilling_ _ _
163490 .162736 .162275 .161307 .161190 .159863
Belgium, belga
008000* .007833 .007825* .008000* .008000* .007733*
Bulgaria, lev
Czechoslovakia, kron .035150 .035050 .034912 .034906 .034700 .034456
Denmark. krone
176958 .175836 .175420 .173991 .174291 .173000
England. Pound
3.970000 3.955500 3.931696 3.911333 3.904166 3.882232
sterling
Finland, markka....... .017575 .017475 .017458 .017333 .017283 .017240
France,franc
046230 .045941 .045888 .045453 .045401 .045110
Germany, reichsmark .274915 .269718 .268223 .267692 .271520 .270466
Greece, drachma
006582 .006610 .006578 .006439 .006498 .006571
471976 .469850 .468692 .463946 .463957 .461050
Holland, guilder
186250* .182500* .180000* .179166* .182500* .202000*
Hungary. Peng°
Italy, lira
061023 .060633 .060491 .060139 .060275 .059950
Norway, krone
201653 .200841 .199725 .198246 .198566 .197400
Poland, zloty
132333* .133000 .132833 .131300 .130200 .131833
Portugal, escudo
036204 .036005 .035975 .035840 .035660 .035500
Rumania,leu
007000 .007033 .007000 .007050 .006975 .007000
Spain, peseta
100514 .099925 .099714 .098876 .098764 .098146
Sweden,krona
203527 .203016 .202209 .200525 .201090 .199460
Switzerland, franc
.226825 .225450 .225053 .223021 .223085 .221515
Yugoslavia, dinar.... .016300 .0162(10 .016033 .016075 .016033 .015700*
ASIAChinaChefoo dollar
246250 .240416 .235833 .240666 .241666 .238333
Hankow dollar_ _ _ _ .246250 .240416 .235833 .240666 .241666 .238333
Shanghai dollar._ _ _ .246250 .240937 .236875 .240812 .241406 .238906
Tientsin dollar
246250 .240416 .235833 .240666 .241666 .238333
Hong Kong dollar
.272916 .269062 .265000 .267500 .269375 .267031
India, rupee
.298630 .297150 .295725 .293610 .294240 .292450
Japan, yen
240750 .240500 .239525 .238525 .238900 .238125
Singapore (8.8.) dollar .460625 .458125 .450000 .451250 .453125 450625
NORTH AMER.Canada, dollar
876979 .874583 .872708 .870937 .971770 .871363
Cuba, peso
999162 .999287 .999162 .999162 .999162 .999212
Mexico, peso (silver). .289520 .287580 .288300 .288000 .287250 .283866
Newfoundland, dollar .874750 .872125 .870250 .868500 .869500 .869000
SOUTH AMER.Argentina, Peso (gold) .683549 .680791 .679899* .672952* .672052 .671366,
Brazil, milrels
.076350 .076350 .076350* .078350* .076350* .076466,
Chile, POW
060250* .060250 .060250* .060250* .060250* .072500,
Uruguay, peso
525000* .537500 .542500* .537500* 542500* .555000,
Colombia, peso
862100* .862100 .862100* .862100* .862100* .862100,
OTHER3.161250 3.157500 3.132033 3.109166 3.110416 3.095208
Australia, pound
New Zealand, pound.,3.169166 3.165416 3.140418 3.117083 3.118750 3.103541
0.....1, s.....• ...,...,.4
,2 02sniin 'a 010000 a RA7Ann 2004275 2000212 2.037812
•Nominal rates. arm rates not available.
HE following table indicates the amount of gold
bullion in the principal European banks as of
May 18 1933, together with comparisons as of the
corresponding dates in the previous four years:
T
Ranks of-
1933.
£
England _ _ _ 186.976,757
Franco a--- 847.233.359
Germany b
18,239,300
Spain
90,372,000
Italy
68,284,000
Netherlands
71,536,000
Nat. Belg
76,451,000
Switzerland.
77,345,000
Sweden
12,056,000
Denmark- _
7,397,000
Norway... _
8,380,000
1932.
1931.
£
£
123,522.501 151,205.686
629,211,938 445,024,383
37,825,850 108,132,550
96,929,000
90,064,000
57,479,000
60,876,000
37,498,000
75,892,000
72,163,000
41,312,000
25.710,000
71,818,000
13,316,000
11,441,000
9,552,000
8.032,000
8,133,000
6,561,000
Total week.. 1,264,270,416 1,187.407,289
Pres. week 1 274 104 700 1 170 0912 200
994,291,619
002 107 091
1930.
1929.
£
£
158,443,549 162,747,297
345,498,568 292.275,292
121,393,850
80,0118,850
98,796,000 102,401,000
56,279,000
56,520,000
85,993,000
36.420,000
34,135,000
27,491,000
23,152,000
19,843,000
13,517,000
13,031,000
9,567,000
9,594,000
8,144,000
8,156,000
904,918,967
ow 900 ARA
808,587,439
010 702 coo
a These are the gold holdings of the Bank of France as reported in the new form
of statement. b Gold holdings of the Bank of Germany are exclusive of gold held
abroad, the amount of which the present year is £1,011,900.
-- -The Implications of President Roosevelt's Appeal
and Chancellor Hitler's Speech.
It would be easy both to over-estimate and to
under-estimate the significance of the appeal for
peace which President Roosevelt made on Tuesday to
the heads of States throughout the world, and of the
speech which Chancellor Hitler delivered on Wednesday at an extraordinary session of the Reichstag.
Taken together, they may well be regarded asfar and
away the most striking political incidents of the year
3410
Financial Chronicle
thus far, but the significance to be attached to them
will depend quite as much upon the interpretations
that are read into them as upon the immediate reactions which they produce. Opponents of American
"isolation" will see in President Roosevelt's dramatic
appeal not only a skilfully planned effort to avert the
political rupture and possible war into which Europe
appeared to be rapidly drifting, but also a clear purpose on the part of the Administration to make the
United States more than ever a factor in so much of
European and world politics as is concerned with the
maintenance of peace. Critics of the Hitler regime,
on the other hand, will interpret the Reichstag speech
as in effect an abandonment, except for some facesaving reservations, of the aggressive and irritating
course which the Hitler Government has pursued,and
an indication of a conciliatory temper which may at
least save the Disarmament Conference from a complete breakdown and make possible some useful results from the World Economic Conference.
There can be no doubt that at the moment when
Mr. Roosevelt launched his appeal the European outlook was dark. The refusal of Germany to support
any proposal of disarmament that did not fully recognize its right to equality in arms, and the belief elsewhere that if the right were conceded German.armament would be increased, had not only called a halt
in the deliberations of the Disarmament Conference,
but had arrayed Italy, France,Great Britain and the
members of the Little Entente against Germany and
intensified the discussion of sanctions and a possible
resort to armed force. On May 12 the French Foreign Minister, Joseph Paul-Boncour, revived the
threat of publishing a secret dossier purporting
to show the extent of Germany's illegal armament,
and the next day the Associated Press correspondent
at Paris reported indications that Great Britain and
France were "ready to send their armies back into
the Rhineland if Germany seeks greater armaments
than permitted under the Versailles Treaty." A
flamboyant speech by Vice-Chancellor von Papen on
May 13 was likened to the saber-rattling speeches of
the Kaiser in 1914, while on Tuesday, the day on
which 'Mr. Roosevelt's appeal was sent out, a checkup of the resources of the French factories which
produce war materials was officially ordered. On
May 11 Viscount Hailsham, British Secretary of
State for War, had told the House of Lords that any
re-arming of Germany in excess of treaty limits
would necessitate the imposition of sanctions, although it was later admitted at Paris that the situation was one to which the provisions of the League
Covenant did not apply.
Into this menacing atmosphere Mr. Roosevelt
launched his appeal for peace. On the general question of the imperative need of peace he could not, of
course, offer anything new. He found the basis of
the present reasons for armaments, however, in "the
desire, disclosed or hidden, on the part of governments to enlarge their territories at the expense of
a sister nation" (a purpose, he declared, which he believed to be harbored by "only a small minority of
governments or of peoples"), and in "the fear of nations that they will be invaded." This fear, he admitted, was justified by the vast superiority of offensive weapons over the weapons of defense. The
"ultimate objective" of the Disarmament Conference, he continued, must be "the complete elimination of all offensive weapons," and its "immediate
objective" a "substantial reduction of some of these
May 20 1933
weapons and the elimination of many others." The
so-called MacDonald plan at Geneva is "only a first
step toward our ultimate goal," but it was nevertheless welcomed for the promise it held, and Mr. Roosevelt accordingly proposed, as the first of three steps
that should be taken, the acceptance of the MacDonald plan with its general outlines of procedure,
together with, second, an agreement upon the time
and procedure for taking the steps that necessarily
follow, and, third, an agreement that in the meantime"no nation shall increase its existing armaments
over and above the limitations of treaty obligations."
In order that peace might be insured during "the
whole period of disarmament," however, the appeal
added the further proposal that the nations of the
world "enter into a solemn and definite pact of nonaggression," and that they "solemnly reaffirm the
obligations they have assumed to limit and reduce
their armaments, and, provided these obligations are
faithfully executed by all signatory Powers,individually agree that they will send no armed force of whatsoever nature across their frontiers."
Chancellor Hitler's address on Wednesday showed,
in tone and content, evidences of having been influenced by President Roosevelt's appeal. The appeal
was greeted with "warm thanks," and the German
Government was declared "ready immediately to endorse this method of remedying the international
crisis." It would welcome the United States• as "a
guarantor of peace." and "desires to negotiate with
other nations peacefully and amicably concerning all
difficult questions of a political and economic nature." It is further "ready at all times to assume
further international obligations for security if other
nations likewise are ready and Germany enjoys equal
benefits therefrom." Turning particularly to France,
however, the Chancellor pointed out that Germany
has already assumed obligations connected with
security "arising from the signature of the Versailles
Treaty,entry into the League of Nations,the Locarno
pact, the Kellogg pact, the arbitration treaties, the
pact for the prevention of war and the no-force
declaration," and asked: "What are the concrete
guarantees of security which are to be undertaken by
Germany in addition to her international obligations," and "what guarantees has Germany in return ?" Surely, he continued, it is not a fear of German invasion that constitutes a reason for the French
and Polish armaments, while of the modern defense
weapons which are so superior to weapons of offense
Germany possesses none at all. "Germany is ready
at any time to renounce aggressive weapons if the
whole world also bans them. . . . The German
Government and German people will not, however,
under any circumstances, submit to being compelled
to affix their signature to anything that would be
tantamount to perpetuating Germany's disqualification. . . . If, in newspaper articles and unfortunate speeches, an attempt is made to threaten
Germany with sanctions, then such monstrous procedure could only be regarded as punishment for
demanding the disarmament treaties' fulfilment.
Such procedure could only lead to a definitive moral
and actual cancellation of the treaties themselves."
Taken as a whole, Chancellor Hitler's references
to France and Poland, and his clear indication of a
line beyond which Germany would not go, were only
a reiteration of Germany's demands for equal treatment in armaments and for genuine disarmament by
other Powers which have been made several times,
Volume 136
Financial Chronicle
3411
praise for the earnest and courageous atbut more aggressively, in the past. His allusion to nothing but
Roosevelt to bring the world to prompt
Mr.
of
tempt
the welcome which would be accorded to the United
vital needs, and he has certainly
regarding
action
States as "a guarantor of peace," on the other hand,
without some settlement of the
that
clear
it
made
Presibrings up the question of the extent to which
controversy the prospect for economic codent Roosevelt, in outlining the steps which he armament
dim. Whether he has actually accomwished to see taken for disarmament, bound the operation is
than this, or whether Chancellor HitUnited States to further political co-operation with plished. more
are not more important than his
Europe. An official White House statement on Wed- ler's reservations
remains to be seen. The most
concessions,
nesday, issued after the Hitler speech had been de- apparent
as peace is concerned, is that
far
as
said,
be
can
livered, undertook to clarify the American position. that
than it was before.
delicate
less
is
situation
the
The United States, it was declared, has assumed no
obligation except to eliminate offensive weapons if
other nations agree to do so, to agree, if "every other
Preserve the Railroads for Posterity.
nation" does so,"not to invade its neighbors, subject
If future generations of Americans were to lose
to existing treaty rights," during "the disarmament
there
"if
nations
other
the tremendous advantages of railroad developments
period," and to consult with
agreements."
or
agreement
of the past century the loss would be deplorable.
is violation of any such
followtaken
be
to
action
n
the
Steam applied to ocean traffic has driven the old
of
determinatio
The
ing such consultation, the statement added, would sailing vessels pretty much off the seven seas, a sailrest with the United States at the time. "That does ing vessel of any pretension now being a curiosity.
not mean that the United States will, in company Yet old pictures of the harbors of New York, Philawith other nations, meet to determine this policy. delphia and Boston show only craft of the ancient
The policy will be determined right here in Washing- type.
There has been great progress in construction of
ton by officials in the light of events and circumships and of their motive power. People were
stances prevailing at that time."
addressed
was
amazed when it was revealed that iron hulls could
The fact that Mr.Roosevelt's appeal
prime
to
than
be substituted for wooden vessels. The
rather
safely
or
presidents
to sovereigns
its
in
delay
marine battle of the Civil War between the
for
part
in
famous
accounts
doubtless
ministers
political recognition, but a scrutiny of the replys Conferenate iron-clad Merrimac and the metal
made public thus far at Washington, and of opinions Monitor with its revolving turrets astounded the
reported as voiced in foreign Government circles world, being in strange contrast to the pictures of
other than that of Germany, do not show much more former sea fights when a victorious ship would be
than an attitude of friendly interest. No official ex- lashed to the defeated one, which would be boarded
pression of opinion has come from the Italian Gov- and the struggle finished in a hand-to-hand contest.
The widely heralded victory of the '60's was the
ernment, although the Italian press has made favorPrime
of
spite
beginning of progress which has resulted in the
able comments, while in England, in
apof
the
tion
characteriza
present huge battleships for navies of the world, and
Minister MacDonald's
repare
circles
political
"a
great landmark,"
the modern freight and passenger carriers which
peal as
resented as disappointed at Mr. Roosevelt's non-com- cross the oceans at high speed to-day. Voyages
mittal attitude toward American co-operation. across the Atlantic have been reduced from weeks to
There appears to be even greater disappointment a few days.
in France. A favorable impression is reported
Progress in construction of marine engines and in
from Russia, but the appeal appears to have been utilizing oil and electricity for power have worked
without effect upon the military operations or wonders in transportation on the seas. The high
general policy of Japan in northern China. Chan- development of maritime progress, unlike the railcellor Hitler's speech, on the other hand, has been roads, has been free from other forms of competiwidely recognized in Europe as a shrewd piece of tion. Thus far only one possible competitor has
statesmanship, effective in breaking the "iron appeared, namely, transportation of passengers
ring" about Germany and distinctly cooling the overseas by airplanes. What the future has in store
enthusiasm of Great Britain for supporting France in this respect may only be surmised, but to date the
in a policy of sanctions. Its conciliatory tone, ocean-borne traffic has no such rival as have the
however, has by no means allayed distrust, and railroads which now must compete with inland
even M. Herriot warns France that if Germany is waterways and improved highways, with their
granted equality in land armament, it will. ask for freight-carrying trucks and buses for passengers,
naval equality also. An additional reason for French with privately-owned and operated passenger autoaloofness is found in the fact that the MacDonald mobiles, and with airplanes transporting mails and
disarmament plan, which Mr.Roosevelt supported as passengers.
Railroads and shipping have worker hand-in-hand
an initial step, contemplates the adhesion of both
naval
the
London
and
to
Italy
treaty, and in building up commerce of the world, each suppleFrance
the
Franco-Italian
of
revives
issue
rivalry. menting the other in distribution of cargoes and
naval
thus
be
for
to
a con- carloads for ultimate destination, serving well the
appears
outlook
immediate
The
tinuance of the disarmament debate at Geneva, with process of bringing producers in contact with disthe question of how much and what kind of arma- tributors and consumers, and an interchange of surment increase shall be conceded to Germany as the plus among all nations, balancing overproduction
main issue, and for a possible increase of interest in with unusual high demand. Rail transportation,
the World Economic Conference. The announce- coupled with ocean traffic, has knit the nations toment yesterday that Germany accepted the Mac- gether in trade ties, to the advantage of consumers
Donald plan ought to help matters, notwithstand- if not always in the interest of rival manufacturers,
ing Premier Daladier's declaration that France who are apt to seek a leveling process by means of
would not consent to reduce its army. There can be protective tariffs.
3412
Financial Chroniclt.
May 20 1933
Were railroads crippled so that they could not commodi
ties, the policy of Congress is to establish,
function properly, what would become of the traffic as
rapidly as feasible, but having regard to the inon the high seas? How could American crops, terest
of consumers, such balance between the progrown at the interior of the United States, be moved duction
and consumption of agricultural commodito the elevators for transportation to the seaboard?
ties, and such marketing conditions, as will restore
Exports and imports on the present scale of magni- the
purchasing power of farm products to the level
tude could not be maintained. Not only would faciliof the base period. In the case of all agricultural
ties for transportation be inadequate but the cost of commod
ities except tobacco the base period is desigshipments in small lots would be prohibitive, as nated as
the pre-war period from August 1909 to
handling would have to be done in smaller lots than July 1914.
In the case of the latter, however, the
railroad facilities now afford.
base period selected is the post-war period, August
Navigation on the Great Lakes is largely de- 1919 to July
1929.
pendent upon the rail carriers as a connecting link
The Secretary of Agriculture is endowed with the
between the farms and elevators on the Lake front power to provide
for reductions of acreage or reducwhere vessels take on cargoes, and again the rail tions product
of
ion, or both, of the basic agricultural
carriers are needed to transport grain from the foot commodities, through
agreements with producers or
of Lake Erie to North Atlantic ports, as well as to by other volunta
ry methods, and to provide for
move such heavy freight as coal for reshipment up rental
or benefit payments in such amounts as he
the Lakes.
deems fair and reasonable.
But it may be said that the St. Lawrence project
He is also authorized to enter into marketing
of a ship canal will enable cargoes of grain to be agreements with
processors, associations of proshipped to foreign ports without making use of the ducers and others engage
d in the handling, in the
railroads or utilizing the facilities of the American current
of inter-State or foreign commerce, of any
North Atlantic ports. The St. Lawrence Canadian agricultural commod
ity or product thereof. Furscheme is not yet assured.
ther, he is permitted to issue licenses permitting
Welfare of American producers and consumers is processors, associa
tions of producers, and others
as closely tied in with the railroads as is that of the engage
d in the handling,in the current of Inter-State
investors in railroad stocks and bonds.
and foreign commerce, or of any agricultural comConditions are so broad and yet so closely inter- modity or product thereof.
These licenses are subwoven that it is absolutely impossible to separate the ject
to such terms and conditions as may be neceswell-being of manufacturers, exporters, importers sary to eliminate unfair
practices and to effect the
and consumers from each other as all of them are restoration of normal econom
ic conditions.
very largely dependent upon the rail carriers for
The necessary revenue to meet extraordinary extheir own prosperity.
penses incurred by reason of the national economic
Is it not time for all Americans of every station emergency is to be
obtained through a levy of
and calling to awaken to a comprehension of what process
ing taxes. But in order to provide funds
the investment of billions of dollars not only in rail- for immedi
ate use an appropriation of $100,000,000
road rights of way and tracks, but in equipment and has
been authorized. The processing tax is to be
costly and essential terminals is worth to growers, levied, assesse and collecte
d upon the first domestic
d
manufacturers, distributors and consumers? If process
ing of the commodity, whenever the Secrethere is to be a railroad czar, he will have a mighty tary of Agriculture determi
nes that rental or benefit
task first in removing unreasonable handicaps and payments are to be made. It
is indicated that the
second in imposing regulation which will aid the tax rate will be sufficient to
yield the difference
public without destroying an essential agent of com- between the current average farm
price of the commerce.
modity and the price necessary to raise farm purAt times one hears that Government ownership is chasing power to the level base.
the cure-all for the railroads. The putting of such a a rate should cause a decline in However, if such
domestic consumppowerful club in the hands of a political party might tion or a fall in the farm price of
the commodity the
prove to be the undoing of the Republic for which Secretary is empowered to fix
the rate at a point
reason opponents of such a plan are numerous, but that will prevent these results.
the movement has never assumed a definiteness
In order to protect the general public interest,
which called for concerted opposition. The better the Secretary is required to
divulge such informaplan will be to both strengthen and regulate the rail tion as he deems necessary in
regard to comparative
carriers; strengthen them for efficiency but regulate price relationships before and
after the imposition
them to assure fairness, leaving the details of opera- of a processing tax.
tion and employment to the management representThe basic commodities named in the Act are
ing ownership.
wheat, cotton, hogs, field corn, rice, tobacco, milk
and its products in any regional market classificaThe Farm Relief Provisions of the New Act.
tion, type or grade. The Secretary, however, after
The purpose of the Farm Relief bill, which was adequate hearings, is authorized
to exclude from
signed by the President on May 12, is to relieve the the operation of the Act any
commodity or part
existing national economic emergency by increasing thereof when its inclusion would
not further the
agricultural purchasing power, to raise revenue for purposes of the Act.
extraordinary expenses incurred by reason of such
With respect to cotton, the Act authorizes the
emergency, to provide emergency relief with respect use of the Smith Option Contrac
t. In reality, the
to agricultural indebtedness, to provide for orderly Option Contract gives the farmer a
call on cotton
liquidation of Joint Stock Land Banks, and for which is to be in the hands of
the Government, and
other purposes.
permits him to collect a profit on this cotton, should
In order to offset the severe and increasing dis- the price rise. In no event is the producer to be
parity between the prices of agricultural and other held liable for financial loss incurred in the holding
Volume 136
Financial Chronicle
3413
of such cotton. If any cotton remains with the local National Farm Loan Association or the bank.
Secretary after Jan. 1 1934, he is authorized to enter
In order to effect an exchange of first mortgages
into similar option contracts for another year. He for bonds, it is anticipated that in many cases the
is compelled, however, to dispose of all cotton by amount of such mortgages will have to be curtailed
Jan. 1 1936. The Smith plan requires for participa- to come within the sum which can be loaned under
tion a 30% reduction of acreage, farm by farm. It the terms of the Federal Farm Loan Act. The bank
may be used either alone, or in conjunction with also may purchase such mortgages. In exchanging
rental benefits for land taken out of production.
bonds for mortgages or making new loans, the banks
The Secretary of Agriculture is endowed with the will not be relieved of any of their responsibility for
power to appoint such officers, employees and ex- making sound investments.
perts as are necessary. He is also authorized to
It is stated that 60 days hence rates of interest
establish State and local committees, or associations on all of the more than $1,000,000,000 of Federal
of producers; he may permit processors and co- Land Bank loans to nearly 400,000 farmer borrowoperative associations of producers, when in his ers will be reduced to 4/
1
2%. This rate is applicable
judgment they are qualified, to act as agents of to the next five years, and it will mean a saving to
their members and patrons in connection with dis- the borrowers of approximately $55,000,000 during
tribution rental or benefit payments. Speculation that period.
on the part of any person having any part in the
New loans made by these banks through National
administration of the Act, directly or indirectly in Farm Loan Associations will bear not to exceed
any way, in any of the agricultural commodities 4/
1
2% interest; while loans made directly by the
to which the Act applies, is strictly prohibited.
banks will bear 5%, and in Puerto Rico the rate is
If the Secretary, after proper hearings, finds that reduced to 5%. This reduction in interest rates,
a particular processing tax will prevent in large it is expected, will cause others in the mortgage
measure the use of a commodity, he may provide for loan business to do likewise.
an abatement or refund of the processing tax. SubDuring the five-year period, if borrowers are not
ject to certain restrictions, he is also authorized to in default with respect to any covenant of their
provide regulations for exemption from the tax of mortgage, such as payment of interest, taxes, insurcommodities processed by the producers thereof or ance, water or drainage or levee assessments, they
processed for the producers. When a processing will be required to pay the Land Banks' intaiments
tax on a basic commodity causes to the processor on the principal of their loans.
a disadvantage in competition with competing comQuite separate and distinct from Land Bank
modities, he is given the further right to impose loans, there is provided a fund of $200,000,000 to be
upon the competing commodities a tax sufficient to administered by the Farm Loan Commissioner of
remove the disadvantage. Whenever a processing the new Farm Credit Administration. This fund
tax is in effect, with respect to any commodity, an is to be made accessible through the Commissioner's
equal tax is to be imposed upon the importation of representatives located in the Federal Land Banks
any article manufactured wholly or in chief value districts.
from such commodity.
Those eligible to borrow from this fund are actual
The President is given the power to terminate the farmers engaged in farming operations, either perAct as a whole whenever he finds that the national sonally or through an agent, the principal part of
economic emergency in regard to agriculture is whose income is derived from farming operations,
ended, or terminate the application of the Act to any including the personal representative of a deceased
basic agricultural commodity whenever he finds farmer.
that as to such commodity the further application
It is stipulated that the amount of the mortgage
of the Act is not requisite to carrying out the de- given by any farmer, together with all prior mortclared policy.
gages or other evidences of indebtedness secured by
EMERGENCY FARM MORTGAGE FEATURE.
such farm property of the farmer, shall not exceed
By virtue of the new farm mortgage bill authority 75% of the value thereof, as determined upon apis given by Congress to the Federal Land Banks to praisal, nor shall a loan in excess of $5,000 be made
issue during the next two years $2,000,000,000 of to any one farmer. The loans are to be secured by
their consolidated, tax-exempt, long-term bonds to first or second mortgages upon the whole or any
bear not to exceed 4%,the interest to be guaranteed part of the farm property, real or personal, includby the United States. The Federal Government not ing crops, of the farmer. Interest payments are to
only guarantees the interest on these securities but be made only for a period of three years, after which
Congress has made them eligible for 15-day loans annual instalments on the principal must be paid.
from Federal Reserve banks to member banks, assur- Interest is not to exceed 5% per annum.
ing them of a wider market and greater liquidity.
This law prohibits Joint Stock Land Banks from
Loans made by the Federal Land Banks, accord- making any further loans or issuing any additional
ing to the Farm Loan Act, may not exceed 50% of tax-exempt bonds except such as are necessary for
the appraised normal value of the land for agricul- the refinancing of existing loans or bond issues, or
tural purposes plus 20% for the insured improve- for the sale of any real estate now owned or acments. Bonds exchanged for first mortgages can quired. The Farm Loan Commissioner is authorized
not be in excess of this amount or the amount of to make loans from a fund of $100,000,000 to these
the mortgage offered in exchange, whichever is the banks to facilitate their orderly liquidation.
smaller. Where such exchange is made the farmer
Public improvement districts, such as irrigation,
pays the bank on the basis of the face value of the drainage and levee districts, are permitted to apply
bonds exchanged, and the loan is amortized over a to the Reconstruction Finance Corporation for loans
1
2% interest. to refinance their projects by purchasing their delong period, bearing not to exceed 4/
Each borrower will be required to purchase capital preciated securities outstanding, but reduction in
to the extent of 5% of his new loan, either in the indebtedness of such districts obtained by refinanc-
Financial Chronicle
3414
ing must be passed on pro rata to the farmer-owners
in such areas. Loans may be made only when the
Corporation is convinced of the economic soundness
of the project.
Death of John H. Morrison, Formerly of
Chronicle Staff.
Among those of the older generation in Wall Street
many will recall John H. Morrison-a former member of
the Chronicle staff. Mr. Morrison died this week (May 16)
at his home in this city. He was in his 88th year. He
represented the Chronicle in its business department for
some thirty-odd years, his service with it having dated
from about 1881 to 1913, at which time he retired.
Mr. Morrison was of the old school type and was highly
esteemed by officials of banking houses, railroads, etc., of
his day, with whom he came in intimate contact during
his daily missions in behalf of our paper. He was the oldest
member of the board of directors of the Seamen's Church
Institute, with which he was associated for 56 years. Mr.
Morrison enjoyed the confidence of every one and rendered
invaluable services to the Chronicle during the period of his
connection with it.
The Course of the Bond Market.
Bonds continued their upward trend this week and are
now at the year's high levels reached in January. The price
average for 120 domestic bonds of all grades now stands at
84.10, compared with a high on Jan. 12 of 83.97. The
present level represents an increase in the averages of 12.9%
from their low of 74.15 on April 20. Indications of reviving
business activity became increasingly apparent in the last
week, contributing to the strength in bonds, as well as stocks
and commodities. All grades of bonds participated in the
upward movement, with the exception of foreign bonds, in
the forepart of the week, because of political tension in
Europe.
United States bonds were off fractionally this week. Plans
for public works to be financed at a cost of $3,300,000,000
have been incorporated into the National Industrial Recovery
bill, now before Congress. While new taxes to be collected
for amortization of this future debt give this operation a
vestige of financial orthodoxy, it is nevertheless to be admitted that large issues of government bonds would be difficult to finance in these times without the promised support
of the Federal Reserve system. Technically, therefore, the
market for governments is entitled to firmness. Later on,
if world recovery should really start, this market might better
be able to stand on its own feet without such support because
the position of the Treasury would become stronger and perhaps the public works program might not then have to be
pushed to its full authorized limits. Up to Wednesday
night, the Federal Reserve statements disclosed no change in
the government portfolio of the Federal Reserve banks.
Apparently, the Administration wishes to give prices and
business a chance to revive of their own accord.
Railroad bonds as a group tended to be firm in the past
week. There were some gains, but for the most part bonds
consolidated the advances made in the previous week. Fluctuations in high grade issues were limited to fractions. For
instance, net changes from a week ago for Atchison, Topeka
& Santa Fe 4s, 1995, were from 929/i to 92%, Union Pacific
4s, 1947,from 97 to 973 and Chesapeake & Ohio 43's, 1992,
from 99% to 100. Gains were recorded for certain of the
less actively traded issues. Nashville, Chattanooga & St.
Louis 4s, 1978, gained 6 points from .69 to 75 and Peoria &
Eastern 4s, 1940, 6 points from 48 to 54. Certain of the
more highly speculative issues advanced, Chicago & North
Western 4%s, 1949,from-193/ to 24%, Chicago, Milwaukee,
St. Paul & Pacific 5s, 1975, from 24% to 26% and Alleghany
Corporation 5s, 1950,from 163 to 193/. The firm tendency
of railroad bonds as a whole, and the price advances recorded
for individual issues, were a reflection of the general strength
of the security markets, as well as the reports of improvement
in railroad traffic, carloadings for the past week having
exceeded those of a year earlier.
After an uncertain start, utility bonds moved into higher
ground during the week. Wednesday was a particularly
strong day and issues of all classes were up considerably.
Consolidated Gas of N. Y. 43's, 1951 went from 955' to
96%, Minneapolis Gas Light 43's, 1950 from 763 to 80 and
West Texas Utilities 5s, 1957from 50 to 52%. Utility bonds
as a class, however, as well as utility stocks, have not kept
up with the general pace of the bond market.
Generally higher prices with numerous new highs for the
year in industrial bonds were again the characteristics of
the week's market. A number of groups and issues reacted
somewhat on individual days, but most of them rallied
thereafter. Matching the spectacular performance of the
company's stocks, Crown Cork & Seal 6s, 1947, touched a
new high at 983/2. Tire and rubber company bonds held
past gains and Goodrich 6%s and U. S. Rubber 1st 58
reached new high ground. Steels did well, Republic 53s
and Vanadium 5s being strong features. Oil company issues
were firm to higher. Seasonal activity and reports of public
works programs aided International Cement 5s in advancing
to a new high at 73. Better automotive industry activity
stimulated prices for Dodge 6s, 1940.
The foreign bond market was very irregular during the
last week. Argentine issues were off a couple of points on
the average, while Brazilian, Belgian and German issues
were up somewhat. Slight recessions occurred in Japanese
and Finnish bonds. French city bonds were somewhat lower,
Danish and Norwegian steady and Swedish issues higher.
Moody's computed bond prices and bond yield averages
are given in the tables below:
MOODY'S BOND PRICES.*
(Based on Average Yields).
75.61
74.46
74.77
77.8879.11
74.67
78.77
81.30
83.23
82.38
83.11
82.99
83.85
81.66
83.97
74.15
82.82
67.67
92.25
92.10
91.67
91.11
90.97
91.25
90.55
90.69
89.17
88.50
87.69
87.56
87.30
86.25
85.87
85.10
84.97
85.35
83.35
Stock
85.87
85.10
85.48
87.83
89.17
85.48
89.31
90.83
92.88
92.53
92.39
91.81
92.25
90.69
92.97
82.99
89.72
71.38
m a a.4.4a.4cemoomm..4.4.4.4.41.4.4.4.40000gg
m
.a..m...o.mam,aommw.me, e.e,acsl4I. ammmoo
m a WoakttMbaboCeaMm;..g naaaW.VovioMa;e.aL4
m ..acom
;. a
-4o
wawmaaaga
77.11
74.67
CIss4Vatett
s
6
5
4
3
2
1
Weekly-.
Apr. 28...
21
14
13
7
1
Mar. 24
17
3
Feb. 24
17
10
3
Jan. 27
20
13
84.10
83.72
83.72
83.23
82.99
83.11
82.74
82.38
80.95
80.26
80.03
79.91
79.68
78.66
77.99
77.55
77.44
*.s,1.1:9ittttiltg:V6'ttlts
May 19
18
17
16
15
13
12
11
10
9
All
120 Domestics by Rasing
120
,
.
DomesBaa.
Ac.
A.
Awl.
tic.
gemongogngsoomm8
mommssoocoonE
m .pmmm
m•
. vm
a a
w.mm . mm
-Am ?expo?,
t 8
1933
DaUy
Averagu.
May 20 1933
MOODY'S BOND YIELD AVERAGES.•
(Based on Individual Closing Prices.)
120 Domestics
by Groups.
RR.
P. U. Indus.
All
1933
120
DomesDaily
Averages. tic.
120 Domestics by Ratings.
Ac.
A.
Bea.
RR.
5.87
5.90
5.90
5.94
5.96
5.95
5.98
6.01
6.13
6.19
6.21
6.22
6.24
6.33
6.39
6.43
6.44
4.55
4.56
4.56
4.59
4.60
4.59
4.61
4.63
4.70
4.73
4.77
4.77
4.79
4.82
4.82
4.83
4.82
5.26
5.27
5.30
5.35
5.33
5.38
5.37
5.48
5.53
5.59
5.60
5.62
5.70
5.73
5.79
5.80
6.15
6.16
6.17
6.21
6.22
6.22
6.27
6.30
6.40
6.47
6.48
6.48
6.51
6.61
6.68
6.68
6.68
7.51
7.59
7.56
7.62
7.66
7.67
7.67
7.73
7.93
8.04
8.00
8.02
8.05
8.20
8.34
8.40
8.44
5.93
5.98
6.00
6.05
6.05
6.04
6.07
6.07
6.22
6.30
6.32
6.31
6.34
6.47
6.55
6.61
6.63
80.14
79.91
80.14
79.91
79.68
79.34
79.11
78.66
77.22
76.78
76.89
76.46
75.92
74.88
74.05
74.15
74.05
89.31
89.17
88.90
88.23
87.83
88.10
87.69
87.17
86.12
85.10
84.72
84.85
84.85
84.22
83.97
83.60
83.60
58.32 74.36
55.73 71.38
nge do sod.
54.80 71.09
53.28 70.62
53.88 71.38
57.24 73.65
58.52 74.57
54.18 69.59
57.98 73.15
60.60 75.50
62.48 77.77
81.34 76.25
62.95 76.25
83.11 75.09
84.31 75.71
61.58 71.96
66.98 83.35
53.16 69.59
67.86 78.99
37.94 47.58
74.05
72.06
83.35
81.30
8.47
6.70
4.77
4.89
5.77
5.93
74.67
73.25
73.35
78.10
80.49
76.35
80.60
83.85
85.99
85.99
87.56
88.23
89.17
88.23
89.31
71.96
87.69
85.71
81.90
79.91
80.14
82.14
82.74
78.44
83.11
84.97
86.25
85.48
86.38
86.84
87.56
86.38
89.31
78.44
85.81
62.09
6.61
6.72
6.69
6.40
6.29
6.70
6.32
6.10
5.94
6.81
5.95
5.96
5.89
6.07
5.88
13.75
5.99
8.74
4.75
4.76
4.78
4.65
4.61
4.81
4.57
4.48
4.40
4.43
4.42
4.45
4.42
4.48
4.39
4.91
4.51
5.75
5.73
5.79
5.76
5.58
5.48
5.76
5.47
5.38
5.23
5.24
5.25
529
5.28
5.37
5.21
5.96
5.44
7.03
5__
Mar.24_ _
Feb. 24_
17__
10._
Jan. 27.-
40
e
Ace.
83.35
82.74
82.50
81.90
81.90
82.02
81.66
81.66
79.91
78.99
78.77
78.88
78.55
77.11
76.25
75.61
75.40
66.98
66.30
66.55
66.04
65.71
65.62
65.62
65.12
63.50
62.64
62.95
62.79
62.58
61.41
60.38
59.95
59.65
120 Dotneenct
by Groupe.
J.34
6.72
6.95
Stock
6.77
6.90
6.88
6.50
6.45
6.96
6.55
8.26
6.08
8.17
6.11
6.12
6.05
8.27
6.05
6.98
6.34
9.23
P. U. /efts
signs
-10.08
6.20
6.22
6.20
6.22
6.24
6.27
6.29
6.33
6.46
6.50
6.49
6.63
6.58
6.68
6.76
6.75
6.76
5.47
5.48
5.50
5.55
5.58
5.56
5.59
5.63
5.71
5.79
5.82
5.81
5.81
5.86
5.88
5.91
5.91
8.83
6.73
6.76
9.02
7.03
6.96
Excite nge do sed.
9.17
7.06
6.70
9.42
7.11
6.84
9.32
7.03
6.83
8.79
6.80
6.38
8.60
6.71
6.17
9.27
7.22
6.54
8.68
6.85
6.16
8.31
6.62
5.89
8.06
8.41
8.72
8.21
6.55
5.72
8.00
6.55
5.60
7.98
6.68
5.55
7.83
6.60
548
8.1e
8.97
5.55
7.51
5.03
5.47
9.44
7.29
6.97
7.41
C..i0
6.59
12.96 10.49
7.68
5.93
6.10
10.23
10.58
6.05
6.22
8.20
6.03
5.98
6.35
5.96
5.80
5.70
5.76
5.69
5.67
5.80
5.69
6.47
6.35
5.75
8.11
10.0J
10.20
9.88
10.16
10.21
10.33
10.23
10.09
10.07
9.94
9.96
10.02
10.08
9.93
9.89
9.84
9.83
9.80
9.93
9.88
9.82
13-9.98
6-9.60
High 1933
Low 1933
11.19
Low 1933
High 1933
9.86
WO 1932
Low 1932
15.83
Low 1932
High 1932
Year AgoYr. Ago41.78 52.93 71.19 65.45 May19'32 8.07
7.69 14.63
8.58 11.85
May 19 1932.. 62.40
77.55
6.43
9.48
7.05
5.42
2 Yrs.Ago
Two Years AgoNA... On 10.
11
RQ 00
005.5
RQ RA
RR 51
06 70
5409
7.21
5.86
5.67
7.19
5.68
4.98
4.37
4.78
May20'31 5.50
• Note -These prices are computed from average yield on the basis of one "Ideal" bond 43(% coupon, maturing in Si years) and do not purport to show either
the average level or the average movement of actual mice quotations. They merely serve to I hietrete In a more comprehensive way the relative levels and the relative
movement of yield averages, the latter being the truer picture of the bond market.
ot bonds used in computing these indexes was published In the "Chronicle" on Jan. 14 1933. page 222. For bloody's Index of bond prices
t The laid comPlete
by months back to 1928. refer to the "Chronicle" of Feb. 6 1932, page 907.
6
Volume 136
Financial Chronicle
3415
by Congress and Signed by
Text of Farm Relief-Currency Inflation Bill as Passed
Far Prices, Refinancing
President Roosevelt—Makes Provision for Increased
Banks, Expansion of
of Farm Mortgages, Liquidation of Joint Stock Lan
of Greenbacks, DevaluFederal Reserve Credit Up to $3,000,000,000, Issuan
Coinage of Silver.
ation of Gold and Payment of War Debts in Silver, and
(1) In making such settlements with regard to cotton, including
operations to which such cotton is related, such cotton shall be taken
over by all such departments or agencies other than the Secretary
of Agriculture at a price or sum equal to the amounts directly or indireedy loaned or advanced thereon and outstanding, including loans by
the Government department or agency and any loans senior thereto,
plus any sums required to adjust advances to growers to 90 per centum
in the first instance
of the value of their cotton at the date of its delivery
as collateral to the department or agency involved, such sums to be
to growers
computed by subtracting the total amount already advanced
from 90 per cent um
on account of pools of which such cotton was a part,
of
such
delivery
the
time
of
as
over
taken
of the value of the cotton to be
and operating costs
as collateral, plus unpaid accrued carrying charges
the borrower derived
on such cotton, less, however, any existing assets of
such cotton, and from
from net income, earnings, or profits arising from
as
all
determined by the
related;
is
operations to which such cotton
department or agency making the settlement.
(2) The Secretary of Agriculture shall make settlements with respect
by him on such
to cotton held as collateral for loans or advances made
and to carry out the
terms as in his judgment may be deemed advisable,
or furnish bonds to
provisions of this section, is authorized to indemnify
warehousemen for lost warehouse receipts and to pay the premiums on
such bonds.
When full legal title to the cotton referred to in (b) has been acquired,
for the purposes of this
It shall be sold to the Secretary of Agriculture
section, in the same manner as provided in (a).
to purchase
(c) The Secretary of Agriculture is hereby authorized
the cotton specified in paragraphs (a) and (b).
to borrow
authority
have
shall
Agriculture
Sec. 4. The Secretary of
and deposit as colmoney upon all cotton in his possession or control
for such cotton.
lateral for such loans the warehouse receipts
n is hereby authorized
The inflation section Is considered generally as the broadest factor in
Sec. 5. The Reconstruction Finance Corporatio
Reserve
loans to the Secretary of
make
to
the Act, involving as it does authority to increase Federal
money and
advance
to
directed
and
the classing, carrying,
credit by 83,000,000,000, to issue an equal amount of new currency and
Agriculture to acquire such cotton and to pay
such amounts and upon such terms
to reduce the gold content of the dollar by as much as 50%.
and merchandising costs thereon, in
the Reconstruction Finance
as may be agreed upon by the Secretary and as
No Statement on Inflation.
collateral security: ProCorporation, wich such warehouse receipts
is impossible or impractiit
where
There is no indication as to hew much, if any, of this sweeping auinstance
in any
That
however,
vided,
warehouse receipts as collateral
thorization will be utilized by Mr. Roosevelt, except that in a recent
cable for the Secretary to deliver such
herein provided to be made, the
radio speech he reaffirmed his promise to maintain a sound money system.
security for the advances and loans
in lieu of all or any part
Reconstruction Finance Corporation may accept
The text of the newly enacted legislation follows:
acceptable for the purposes
thereof such other security as it may consider
s of the equity and
(Public—No. 10-73rd Congress(
aforesaid, including an assignment or assignment
to secure other
M. R. 38351
interest of the Secretary in warehouse receipts pledged
and other
AN ACT
indebtedness. The amount of notes, bonds, debentures,
n is auCorporatio
such obligations which the Reconstruction Finance
To relieve the existing national economic emergency by increasing agriany one
at
outstanding
have
to
ry
and
issue
cultural purchasing power, to raise revenue for extraordina
thorized and empowered to
to
expenses incurred by reason of such emergency, to provide emergency
time under existing law is hereby increased by an amount sufficient
relief with respect to agricultural indebtedness, to provide for the
carry out the provisions of this section.
is
hereby authorized to
Sec. 6. (a) The Secretary of Agriculture
orderly liquidation of Joint-Stock Land banks, and for other pursell to any
enter into option contracts with the producers of cotton to
poses.
not in excess of
such producer an amount of cotton to be agreed upon
Be it enacted by the Senate and House of Representatives of the United
below
the amount of reduction in production of cotton by such producer
States of America in Congress assembled,
all cases
the amount produced by him in the preceding crop year, in
of
cotton
the
amount
reduce
to
TITLE I.
where such producer agrees in writing
the previous year,
produced by him in 1933, below his production in
Agricultural Adjustment.
not less than 30 per centum, without increase in commercial fertilizaby
Emergency.
Declaration of
tion per acre.
the SecreThat the present acute economic emergency being in part the conse(b) To any such producer so agreeing to reduce production
of
agrithe
prices
able-option contract
between
disparity
quence of a severe and increasing
tary of Agriculture shall deliver a nontransfer
to the amount
cultural and other commodities, which disparity has largely destroyed
agreeing to sell to said producer an amount, equivalent
possession and control of
the purchasing power of farmers for industrial products, has broken
of his agreed reduction, of the cotton in the
has
seriously
impaired
and
down the orderly exchange of commodities,
the Secretary.
buy said cotton at the averthe agricultural assets supporting the national credit structure, it is
(c) The producer is to have the option to
of
industry
agriculbasic
the
in
conditions
these
that
declared
hereby
paid by the Secretary for the cotton procured under Section 3,
price
age
to Jan. 1 1934 to exercise his
ture have affected transactions in agricultural commodities with a naand is to have the right at any time up
with his contract and with all
tional public interest, have burdened and obstructed the normal currents
option, upon proof that he has complied
the
immediate
of Agriculture with respect
Imperative
render
and
Secretary
of commerce in such commodities,
the rules and regulations of the
by him of his option price
enactment of Title I of this Act.
thereto, by taking said cotton upon payment
or the Secretary may sell
and all actual carrying charges on such cotton;
Declaration of Policy.
paying him the excess of
such cotton for the account of such producer,
price above referred
average
Sec. 2. It is hereby declared to be the policy of Congress—
the market price at the date of sale over the
(1) To establish and maintain such balance between the production
to after deducting all actual and necessary carrying charges: Provided,
or liable for finanand consumption of agricultural commodities, and such marketing conThat in no event shall the producer be held responsible
greem ofo
the carryaccount
ditions therefor, as will re-establish prices to farmers at a level that will
loss incurred in the holding of such cotton or onaac
to
curtail
rIii
articles c
such
c
l
further, That
a
therein: Provided
give agricultural commodities a purchasing power with respect
lug
ing charges i
of
such
that
power
provision
cotton
agricultural
further
purchasing
the
that farmers buy. equivalent to
Cotton production shall contain a
cotton
case
of
cotton
all
for
the
the
agriin
of
production
period
out
base
The
taken
period.
s
the
land
base
in
commoditie
producer shall not use the
cultural commodities except tobacco shall be the prewar period, August
production for sale, directly or indirectly, of any other nationally pro1909-July 1014. In the case of tobacco, the base period shall be the
duced agricultural commodity or product.
postwar period. August 1919-July 1929.
(d) If any cotton held by the Secretary of Agriculture is not disposed
(2) To approach such equality of purchasing power by gradual corof under subsection (c), the Secretary is authorized to enter into similar
rection of the present inequalities therein at as rapid a rate as is deemed
option contracts with respect to such cotton, conditioned upon a like
feasible in view of the current consumptive demand in domestic and
reduction of production in 1934, and permitting the producer in each
foreign markets.
case to exercise his opt ion at any time up to Jan. 1 1935.
farm
readjusting
by
production
interest
(3) To protect the consumers'
Sec. 7. The Secretary shall sell the cotton held by him at his disthe
consumers'
of
retail
percentage
the
not
increase
as
will
level
at such
cretion, but subject to the foregoing provisions: Provided, That he shall
expenditures for agricultural commodities, or products derived theredispose of all cotton held by him by March 1 19:16: Provided further,
from, which is returned to the farmer, above the percentage which was
That the Secretary shall have authority to enter into additional option
1014.
1909-July
August
period,
returned to the farmer in the prewar
contracts for so much of such cotton as is not necessary to comply with
the provisions of Section 6, in combination with benefit payments as
PART 1—COTTON OPTION CONTRACTS.
provided for in Part 2 of this title.
Sec. 3. The Federal Farm Board and all departments and other
PART 2—COMMODITY BENEFITS.
te
agencies of the Government, not including the Federal Intermedia
General Powers.
Credit banks, are hereby directed—
at such price as may be
Sec. 8. In order to effecuate* the declared policy, the Secretary of
(a) To sell to the Secretary of Agriculture
agreed upon, not in excess of the market price, all cotton now owned
Agriculture shall have power—
(1) To provide for reduction in the acreage or reduction In the producby them.
as
are
necessettlements
such
make
tion for market, or both, of any basic agricultural commodity, through
(b) To take such action and to
on
which
money
all
cotton
to
title
legal
full
acquire
to
sary in order
agreements with producers or by other voluntary methods, and to prothat
by any department or agency of the United
vide for rental or benefit payments in connection therewith or upon
has been loaned or advanced
is held as colfor
States, including futures contracts for cotton or which
part of the production of any basic agricultural commodity required
such
of
loans
lateral for loans or advances and to make final settlement
So
•
In
and advances as follows:
farm
Herewith we give the text of the Administration's
with
relief-currency inflation measure, as enacted into law
12.
May
on
Roosevelt
D.
Franklin
its approval by President
Details of the passage of the new legislation by Congress
our
and its signing by President Roosevelt were given in
the
issue of May 13, page 3269, and on page 3270 we gave
statement issued by the President in affixing his signature to
the measure. In this statement the President asked farm
mortgage creditors to refrain from foreclosure proceedings
until the provisions of the new measure become effective.
According to a dispatch from Washington May 12 to the
New York "Times," those present at the signing of the bill
were Secretary of Agriculture Wallace; Assistant Secretary
Tugwell; Senator Smith of South Carolina; Henry Morgenthau, Jr., Farm Board Chairman; Professor M. L. Wilson,
author of the allotment plan; Edward A. O'Neal of the Farm
Bureau Federation; Louis Taber, head of the National
Grange; Mordecai Ezekiel; Jerome Frank, who figured in
the shaping of the farm section; Representatives Doxey of
Mississippi, Clarke of New York, Jones of Texas and Fulmer
of South Carolina; W. W. Meyers and George N. Peek of
Moline, Ill. From the same dispatch we quote:
3416
Financial Chronicle
May 20 1933
domestic consumption, in such amounts as the Secretary deems
fair and
(3) In case of tobacco, the term "processing" means
reasonable, to be paid out of any moneys available for such payments
the manufac.
turing or other processing (except drying or convertin
Under regulations of the Secretary of Agriculture requiring
g into insecticides
adequate
and fertilizers) of tobacco.
facilities for the storage of any non-perishable agricultur
al commodity
(4) In case of hogs, the term "processing" means the
on the farm, inspection and measurement of any such commodit
slaughter of
y so
hogs for market.
stored, and the locking and sealing thereof, and such other
regulations
(5) In the case of any other commodity, the term "processi
as may be prescribed by the Secretary of Agriculture for the
proteetion
any manufacturing or other processing involving a change ng" means
of such commodity and for the marketing thereof, a reasonabl
in the form
e perof the commodity or its preparation for market, as
centage of any benefit payment may be advanced on any
by regulations
such comof the Secretary of Agriculture; and in prescribingdefined
modity so stored. In any such case, such deduction may
such regulations the
be made from
Secretary shall give due weight to the customs of the industry.
the amount of the benefit payment as the Secretary of Agricultu
re de(e) When any processing tax, or increase or decrease
termines will reasonably compensate for the cost of inspectio
therein, takes
n and sealeffect in respect of a commodity, the Secretary of
ing, but no deduction may be made for interest.
Agriculture, in order
to
prevent
pyramidi
of
ng
the
processin
g
tax
(2) To enter into marketing agreements with processor
and profiteering in the sale
s, associations
of the products derived from the commodity, shall
of producers, and others engaged in the handling, in the current
make public such
of inter- information as he deems necessary regarding (1)
State or foreign commerce of any agricultural commodit
the relationship bey or product
tween the processing tax and the price paid to producers
thereof, after due notice and opportunity for hearing to
of the cominterested parties.
modity, (2) the effect of the processing tax upon prices
The making of any such agreement shall not be held to be in
to consumers of
violation of
products of the commodity,(3) the relationship, in
any of the anti-trust laws of the United States, and any such
previous
agreement
tween prices paid to the producers of the commodity and periods, beshall be deemed to be lawful: Provided, That no such
prices to conagreement shall
sumers of the products thereof, and (4) the situation in
remain in force after the termination of this Act. For the
foreign countries
purpose
of
relating
prices
to
paid
producers
to
of
the
commodity and prices to concarrying out any such agreement the parties thereto shall
sumers of the products thereof.
loans from the Reconstruction Finance Corporation underbe eligible for
the Reconstruction Finance Corporation Act. Such loans Section 5 of
Miscellaneous.
shall not be
in excess of such amounts as may be authorized by the agreement
• Sec. 10. (a) The Secretary of Agriculture may appoint
s.
(3) To issue licenses permitting processors, associations of
producers, and employees, subject to the provisions of the Classificasuch officers
and others to engage in the handling, in the current of
inter-State or
1923 and Acts amendatory thereof, and such experts as tion Act of
foreign commerce, of any agricultural commodity or
product thereof,
to execute the functions vested in him by this title and ar3 necessary
or any competing commodity or product thereof. Such
the Secretary
may make such appointments without regard to the
be subject to such terms and conditions, not in conflict licenses shall
civil
with existing
or regulations: Provided, That no salary in excess of $10,000service laws
Acts of Congress or regulations pursuant thereto, as
may be necessary
shall be paid to any officer, employee, or expert of the per annum
to eliminate unfair practices or charges that prevent or tend
Agricultural
Adjustment Administration, which the Secretary shall
the effectuation of the declared policy and the restoratio to prevent
Department of Agriculture for the administration of the establish in the
economic conditions in the marketing of such commodities n of normal
functions
vested
or products
in him by this title. Title II of the Act entitled "An
and the financing thereof. The Secretary of Agricultu
Act to maintain
re may suspend
the credit of the United States Government," approved March
or revoke any such license, after due notice and opportuni
20 1933,
for violations of the terms or conditions thereof. Any ty for hearing, to the extent that it provides for the impounding of appropriations on
account of reductions in compensation, shall not operate to
retary suspending or revoking any such license shall be order of the Secrequire
such
final if in accord- impoundment under appropriations contained in this Act.
ance with law. Any such person engaged in such
handling without a
(b) The Secretary of Agriculture is authorized to
license as required by the Secretary under this section
for the
more effective administration of the functions vested inestablish,
a fine of not more than $1,000 for each day during shall be subject to
him by
which the violation
State and local committees, or associations of producers, and this title,
continues.
to
co-operative associations of producers, when in his judgment permit
(4) To require any licensee under this section to furnish
they are
qualified to do so, to act as agents of their members and
as to quantities of agricultural commodities or products such reports
patrons in conthereof bought
nection with the distribution of rental or benefit payments
and sold and the prices thereof, and as to trade practices
.
(c) The Secretary of Agriculture is authorized, with
and to keep such systems of accounts, as may be necessaryand charges,
the approval
for the purof the President, to make such regulations with the
pose of Part 2of this title.
force and effect
of
necessary
law
may
be
as
to
carry
out
the
powers
vested
(5) No person engaged in the storage in a public warehous
title, including regulations establishing conversion factorsin him by this
basic agricultural commodity in the current of inter-State e of any
modity and article processed therefrom to determine the for any comcommerce, shall deliver any such commodity upon which a or foreign
amount of tax
warehouse
imposed or refunds to be made with respect thereto. Any
receipt has been issued and is outstanding, without prior
violation of
surrender
regulatio
any
and
shall
subject
n
be
to
such
penalty,
not
in excess of $100,
cancellation of such warehouse receipt. Any person violating any
as may be provided therein.
provisions of this subsection shall, upon conviction, be punishedof the
(d) The Secretary of the Treasury is authorized to make
by a
fine of not more than 85,000, or by imprisonment for not more
than two
tions as may be necessary to carry out the powers vested such regulayears, or both. The Secretary of Agriculture may revoke any
in him by this
title.
Issued under subsection (3) of this section, if he finds, after due license
notice
(e) The action of any officer, employee, or agent in
and opportunity for hearing, that the licensee has violated the
provisions
amount of and in making any rental or benefit payment determining the
of this subsection.
shall not be subject to review by any officer of the Government other than
Processing Tax.
the Secretary
of Agriculture or Secretary of the Treasury.
Sec. 9. (a) To obtain revenue for extraordinary expenses
(f) The provisions of this title shall be applicable to the
incurred
by
reason of the national economic emergency, there shall be levied
and its possessions, except the Philippine Islands, the United States
procesVirgin Islands,
sing taxes as hereinafter provided. When the Secretary of Agricultu
American Samoa, the Canal Zone, and the island of Guam.
re
determines that rental or benefit payments are to be made with
(g) No person shall, while acting in any official capacity in
respect
to any basic agricultural commodity, he shall proclaim such
istration of this title, speculate, directly or indirectly, in any the admintion, and a processing tax shall be in effect with respect to determina
agricultural
such com- commodity or product thereof, to which this title applies, or in
modity from the beginning of the marketing year therefor next
contracts
relating thereto, or in the stock or membership interests of
following
any
the date of such proclamation. The processing tax shall be levied,
association or corporation engaged in handling, processing, or
disposing
sessed, and collected upon the first domestic processing of the asof
com- such commodity or product. Any person violating this subsection any
modity, whether of domestic production or imported, and shall be
shall
upon conviction thereof be fined not more than 810,000
paid
or
imprisoned
by the processor. The rate of tax shall conform to the requirements of
not more than two years, or both.
subsection (b). Such rate shall be determined by the Secretary of
(h) For the efficient administration of the provisions of Part
2 of this
Agriculture as of the date the tax first takes effect, and the rate so detitle, the provisions, including penalties, of sections 8,
9,
termined shall, at such intervals as the Secretary finds necessary to
Federal Trade Commission Act, approved Sept. 28 1914, and 10 of the
are made apeffectuate the declared policy, be adjusted by him to conform to such
plicable to the jurisdiction, powers, and
requirements. The processing tax shall terminate at the end of the mar- istering the provisions of this title and duties of the Secretary in adminto any person subject to the
proketing year current at the time the Secretary proclaims that rental or
visions of this title, whether or not a corporation. Hearings
authorized
benefit payments are to be discontinued with respect to such comor required under this title shall be conducted by the
of Agrimodity. The marketing year for each commodity shall be ascertained
culture or such officer or employee of the DepartmentSecretary
as
and prescribed by regulations of the Secretary of Agriculture: Provided,
nate for the purpose. The Secretary may report any he may desigviolation
of any
That upon any article upon which a manufacturers' sales tax is levied
agreement entered into under Part 2 of this title to the
Attorney-General
under the authority of the Revenue Act of 1932 and which manufacof the United States, who shall cause appropriate
proceedings to enforce
turers' sales tax is computed on the basis of weight, such manufacturers' such agreement to be commenc
ed and prosecuted in the proper courts
sales tax shall be computed on the basis of the weight of said finished
of
the United States without delay.
article less the weight of the processed cotton contained therein on which
Commodities.
a processing tax has been paid.
(b) The processing tax shall be at such rate as equals the difference
Sec, 11. As used in this title, the term "basic
between the current average farm price for the commodity and the fair
modity" means wheat, cotton, field corn, hogs, rice, agricultural comtobacco, and milk
exchange value of the commodity except that if the Secretary has reason
and its products, and any regional or market
tion, type, or
to believe that the tax at such rate will cause such reduction in the quangrade thereof but the Secretary of Agriculture classifica
shall
tity of the commodity or products thereof domestically consumed as to
operation of the provisions of this title, during any exclude from the
period,
any such
result in the accumulation of surplus stocks of the commodity or products
commodity or classification, type, or grade thereof if
he finds, upon
thereof, or in the depression of the farm price of the commodity, then he
investigation at any time and after due notice and
shall cause an appropriate investigation to be made and afford due notice
ing to interested parties, that the conditions of opportunity for hearproduction, marketing,
and opportunity for hearing to interested parties. If thereupon the
and consumption are such that during such period
this title can not be
Secretary finds that such result will occur, then the processing tax shall
effectively administered to the end of effectuating
be at such rate as will prevent such accumulation of surplus stocks and
with respect to such commodity or classification, type,the declared policy
or grade thereof.
depression of the farm price of the commodity. In computing the current
Appropriation.
average farm price in the case of wheat, premiums paid producers for
protein content shall not be taken into account.
Sec. 12. (a) There is hereby appropriated, out of
(c) For the purposes of Part 2 of this title, the fair exchange value
Treasury not otherwise appropriated, the sum of any money in the
$100,000,000 to be
of a commodity shall be the price therefor that will given the commodity
available to the Secretary of Agriculture for
administrative expenses
the same purchasing power, with respect to articles farmers buy, as such
under this title and for rental and benefit payments
with respect
commodity had during the base period specified in Section 2; and the
to reduction in acreage or reduction in production made
for market under
current average farm price and the fair exchange value shall be ascerPart 2 of this title. Such sum shall remain available
until
expended
.
tained by the Secretary of Agriculture from available statistics of the
(b) In addition to the foregoing, the proceeds derived
from all taxes
Department of Agriculture.
imposed under this title are hereby appropriated to
(d) As used in Part 2 of this title—
Secretary of Agriculture for expansion of markets and be available to the
removal of surplus
(1) In case of wheat, rice, and corn, the term "processing" means
agricultural products and the following purposes
under Part 2 of this
the milling or other processing (except cleaning and drying) of wheat, title: Administrative expenses, rental and
benefit payments
refunds
rice, or corn for market, including custom milling for toll as well as comon taxes. The Secretary of Agriculture and the Secretary of, andTreasury
mercial milling, but shall not include the grinding or cracking thereof
shall jointly estimate from time to time the amounts, the
addition
to
in
not in the form of flour for feed purposes only.
any money available under subsection (a), currently
such
(2) In case of cotton, the term "processing" means the spinning,
purposes and the Secretary of the Treasury shall, required for
out of any money
manufacturing, or other processing (except ginning) of cotton; and the
in the Treasury not otherwise appropriated, advance to the Secretary
term "cotton"shall not include cotton linters.
of Agriculture the amounts so estimated. The amount of any such
Volume 136
Financial Chronicle
advance shall be deducted from such tax proceeds as shall subsequently
become available under this subsection.
(c) The administrative expenses provided for under this section shall
include, among others, expenditures for personal services and rent in
the District of Columbia and elsewhere, for law books and books of
reference, for contract stenographic reporting services, and for printing
and paper in addition to allotments under the existing law. The Secretary of Agriculture shall transfer to the Treasury Department, and is
authorized to transfer to other agencies, out of funds available for
administrative expenses under this title, such sums as are required to
pay administrative expenses incurred and refunds made by such department or agencies in the administration of this title.
Termination of Act.
Sec. 13. This title shall cease to be in effect whenever the President
finds and proclaims that the national economic emergency in relation
to agriculture has been ended and pending such time the President shall
by proclamation terminate with respect to any basic agricultural corn
modity such provisions of this title as he finds are not requisite to carrying out the declared policy with respect to such commodity. The
Secretary of Agriculture shall make such investigations and reports
thereon to the President as may be necessary to aid him in executing
this section.
Separability of Provisions.
Sec. 14. If any provision of this title is declared unconstitutional,
or the applicability thereof to any person, circumstance, or commodity
is held invalid, the validity of the remainder of this title and the applicability thereof to other persons, circumstances, or commodities shall
not be affected thereby.
SUPPLEMENTARY REVENUE PROVISIONS.
Exemptions and Compensating Taxes.
Sec. 15. (a) If the Secretary of Agriculture finds, upon investigation at any time and after due notice and opportunity for hearing to
interested parties, that any class of products of any commodity is of
such low value compared with the quantity of the commodity used for
their manufacture that the imposition of the processing tax would prevent in whole or in large part the use of the commodity in the manufacture of such products and thereby substantially reduce consumption and
increase the surplus of the commodity, then the Secretary of Agriculture
shall so certify to the Secretary of the Treasury, and the Secretary of the
Treasury shall abate or refund any processing tax assessed or paid after
the date of such certification with respect to such amount of the commodity as is used in the manufacture of such products.
(b) No tax shall be required to be paid on the processing of any
commodity by or for the producer thereof for consumption by his own
family, employees, or household and the Secretary of Agriculture is
authorized, by regulations, to exempt from the payment of the processing
tax the processing of commodities by or for the producer thereof for sale
by him where, in the judgment of the Secretary, the imposition of a
processing tax with respect thereto is unnecessary to effectuate the declared policy.
(c) Any person delivering any product to any organization for charitable distribution or use shall, if such product or the commodity from
which processed, is under this title subject to tax, be entitled to a refund
of the amount of any tax paid under this title with respect to such product
so delivered.
(d) The Secretary of Agriculture shall ascertain from time to time
whether the payment of the processing tax upon any basic agricultural
commodity is causing or will cause to the processors thereof disadvantages in competition from competing commodities by reason of excessive
shifts in consumption between such commodities or products thereof.
If the Secretary of Agriculture finds, after investigation and due notice
and opportunity for hearing to interested parties, that such disadvantages in competition exist, or will exist, he shall proclaim such finding.
The Secretary shall specify in this proclamation the competing commodity and the compensating rate of tax on the processing thereof necessary to prevent such disadvantages in competition. Thereafter there
shall be levied, assessed, and collected upon the first domestic processing
of such competing commodity a tax, to be paid by the processor, at the
rate specified, until such rate is altered pursuant to a further finding
under this section, or the tax or rate thereof on the basic agricultural
commodity is altered or terminated. In no case shall the tax imposed
upon such competing commodity exceed that imposed per equivalent
unit, as determined by the Secretary, upon the basic agricultural commodity.
(e) During any period for which a processing tax is in effect with respect to any commodity there shall be levied, assessed, collected, and
paid upon any article processed or manufactured wholly or in chief value
from such commodity and imported into the United States or any possession thereof to which this title applies, from any foreign country or
from any possession of the United States to which this title does not apply,
a compensating tax equal to the amount of the processing tax in effect
with respect to domestic processing at the time of importation: Provided,
That all taxes collected under this subsection upon articles coming from
the possessions of the United States to which this title does not apply
shall not be covered into the general fund of the Treasury of the United
States, but shall be held as a separate fund and paid into the Treasury
of the said possessions, respectively, to be used and expended by the
governments thereof for the benefit of agriculture. Such tax shall be
paid prior to the release of the article from customs custody or control.
Floor Stocks.
Sec. 16. (a) Upon the sale or other disposition of any article processed
wholly or in chief value from any commodity with respect to which a
processing tax is to be levied, that on the date the tax first takes effect
or wholly terminates with respect to the commodity, is held for sale or
other disposition (including articles in transit) by any person, there shall
be made a tax adjustment as follows:
(1) Whenever the processing tax first takes effect, there shall be
levied, assessed, and collected a tax to be paid by such person equivalent
to the amount of the processing tax which would be payable with respect
to the commodity from which processed if the processing had occurred
on such date.
(2) Whenever the proces..ing tax is wholly terminated, there shall be
refunded to such person a sum (or if it has not been paid, the tax shall
be abated) in an amount equivalent to the processing tax with respect
to the commodity from which processed.
(b) The tax imposed by subsection (a) shall not apply to the retail
stocks of persons engaged in retail trade, held at the date the processing
tax first takes effect but such retail stocks shall not be deemed to include
stocks held in a warehouse on such date, or such portion of other stocks
held on such date as are not sold or otherwise disposed of within thirty
days thereafter. The tax refund or abatement provided in subsection (a)
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shall not apply to the retail stocks of persons engaged in retail trade, held
on the date the processing tax is wholly terminated.
Exportations.
Sec. 17. (a) Upon the exportation to any foreign country (including
the Philippine Islands, the Virgin Islands, American Samoa, and the
island of Guam) of any product with respect to which a tax has been
paid under this title, or of any product processed wholly or in chief value
from a commodity with respect to which a tax has been paid under this
title, the exporter thereof shall be entitled at the time of exportation to
a refund of the amount of such tax.
(h) Upon the giving of bond satisfactory to the Secretary of the Treasury for the faithful observance of the provisions of this title requiring
the payment of taxes, any person shall be entitled, without payment
of the tax, to process for such exportation any commodity with respect
to which a tax is imposed by this title, or to hold for such exportation
any article processed wholly or in chief value therefrom.
Existing Contracts.
Sec. 18. (a) If (1) any processor.jobber,or wholesaler has, prior to the
date a tax with respect to any commodity is first imposed under this
title, made a bona fide contract of sale for delivery on or after such date,
of any article processed wholly or in chief value from such commodity,
and if (2) such contract does not permit the addition to the amount to
be paid thereunder of the whole of such tax, then (unless the contract
prohibits such addition) the vendee shall pay so much of the tax as is
not permitted to be added to the contract price.
(b) Taxes payable by the vendee shall be paid to the vendor at the
time the sale is consummated and shall be collected and paid to the United
States by the vendor in the same manner as other taxes under this title.
In case of failure or refusal by the vendee to pay such taxes to the vendor,
the vendor shall report the facts to the Commissioner of Internal Revenue
who shall cause collections of such taxes to be made from the vendee.
Collection of Taxes.
Sec. 19. (a) The taxes provided in this title shall be collected by
the Bureau of Internal Revenue under the direction of the Secretary
of the Treasury. Such taxes shall be paid into the Treasury of the
United States.
(b) All provisions of law, including penalties, applicable with respect
to the taxes imposed by Section 600 of the Revenue Act of 1926, and
the provisions of Section 626 of the Revenue Act of 1932, shall, in so far
as applicable and not inconsistent with the provisions of this title, be
applicable in respect of taxes imposed by this title: Provided, That the
Secretary of the Treasury is authorized to permit postponement, for a
period not exceeding ninety days, of the payment of taxes covered by
any return under this title.
(c) In order that the payment of taxes under this title may not impose
any immediate undue financial burden upon processors or distributors'
any processor or distributor subject to such taxes shall be eligible for
loans from the Reconstruction Finance Corporation under Section 5 of
the Reconstruction Finance Corporation Act.
TITLE II.
Agricultural Credits.
PART 1—AMENDMENTS TO FEDERAL FARM LOAN ACT.
Issuance of Bonds by Land Banks.
Section 21. Section 32 of the Federal Farm Loan Act, as amended
(U.S.C., title 12, sec. 991), is amended by adding at the end thereof
the following new paragraph:
"Until such time as the Farm Loan Commissioner determines that
Federal farm-loan bonds (other than those issued under this paragraph)
are readily salable in the open market at a yield not in excess.of 4 per
centum per annum, but in no case more than two years after this paragraph takes effect, Federal Land banks may issue farm-loan bonds as
authorized under this Act, for the purpose of making new loans, or for
purchasing mortgages or exchanging bonds for mortgages as provided
in paragraph 'Second' of Section 13 of this Act. The aggregate amount
of the bonds issued under this paragraph shall not exceed $2,000,000,000,
and such bonds shall be issued in such denominations as the Farm Loan
Commissioner shall prescribe, shall bear interest at a rate not in excess
of 4 per centum per annum, and shall be fully and unconditionally
guaranteed as to interest by the United States, and such guaranty shall
be expressed on the face thereof. In the event that it shall appear to
the Farm Loan Commissioner that the issuing bank or banks will be
unable to pay upon demand, when due, the interest on any such bonds,
the Secretary of the Treasury shall, upon the request of the Commissioner, pay the amount thereof, which is hereby authorized to be appropriated out of any money in the Treasury not otherwise appropriated.
Upon the payment of such interest by the Secretary of the Treasury the
amount so paid shall become an obligation to the United States of
the issuing banks or banks and shall bear interest at the same rate
as that borne by the bonds upon which the interest has been so paid.
After the expiration of one year from the date this paragraph takes
effect, if in the opinion of the Farm Loan Commissioner any part of
the proceeds of the bonds authorized to be issued under this partsgraph is not required for the purpose of making new loans or for purchasing mortgages or exchanging bonds for mortgages as herein provided, such bonds may be issued within the maximum limit herein
specified for the purpose of refinancing any outstanding issues of Federal
farm-loan bonds but no such bonds shall be issued after two years from
the date this paragraph takes effect for the purpose of such refinancing.
Any borrower who obtains a loan from a Federal Land Bank after the
date this paragraph takes effect may, at any time after the expiration
of five years from the date such loan was made, tender to such bank on
any regular instalment date, bonds issued under this paragraph in an
amount not to exceed the unpaid principal of his loan, and the bonds
so tendered shall be accepted by the bank at par in payment of any part
of such unpaid principal."
Purchase, Reduction, and Refinancing of Farm Mortgages.
Sec. 22. Paragraph "Second" of Section 13, of the Federal Farm
Loan Act, as amended, is amended by adding at the end thereof the
following new sentence:
In order to reduce and (or) refinance farm mortgages, to invest
such funds as may be in its possession in the purchase of first mortgages
on farm lands situated within the Federal Land Bank district within
which it is organized or for which it is acting, or to exchange farm-loan
bonds for any duly recorded first mortgages on farm lands executed
prior to the date this paragraph, as amended, takes effect, at a price
which shall not exceed in each individual case the amount of the unpaid
principal of the mortgage on the date of such purchase or exchange, or
50 per centum of the normal value of the land mortgaged and 29 per
centum of the value of the permanent insured improvements thereon as
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Financial Chronicle
determined upon an appraisal made pursuant to this Act, whichever is
the smaller: Provided, That any mortgagor whose mortgage is acquired
by a Federal Land Bank under this paragraph shall be entitled to have
his farm-mortgage indebtedness refinanced in accordance with the provisions of Sections 7 and 8 of this Act on the basis of the amount paid by
the bank for his mortgage."
Extension of Loans.
Sec. 23. Paragraph "Tenth" of Section 13 of the Federal Farm
Loan Act, as amended (U.S.C., title 12, sec. 781), is amended by adding
at the end thereof the following: The terms of any such extension shall
be such as will not defer the collection of any obligation due by any borrower which, after investigation by the bank of the situation of such borrower, is shown to be within his capacity to meet. In the case of any
such extension made prior to the expiration of five years from the date
this paragraph as amended takes effect, or in the case of any deferment
of principal as provided in paragraph 'Twelfth' of Section 12 of this Act,
It shall be the duty of the Secretary of the Treasury, on behalf of the
United States, upon the request of the Federal Land Bank making the
extension, and with the approval of the Farm Loan Commissioner,
to subscribe at such periods as the Commissioner shall determine,
to the paid-in surplus of such bank an amount equal to the amount
of all such extensions and deferments made by the bank during the
preceding period. Such subscriptions shall be subject to call, in whole
or in part, by the bank with the approval of the Commissioner upon
thirty days' notice. To enable the Secretary of the Treasury to make
such subscriptions to the paid-in surplus of the Federal Land banks,
there is hereby authorized to be appropriated the sum of $50,000,000,
to be immediately available and remain available until expended. Upon
payment to any Federal Land Bank of the amount of any such subscription, such bank shall execute and deliver a receipt therefor to the Secretary of the Treasury in form to be prescribed by the Farm Loan Commissioner. The amount of any subscriptions to the paid-in surplus of
any such bank may be repaid in whole or in part at any time in the discretion of the bank and with the approval of the Farm Loan Commissioner, and the Commissioner may at any time require such subscriptions to be repaid in whole or in part if in his opinion the bank has resources available therefor."
Reduction of Interest on Loans and Deferment of Principal.
Sec. 24. Section 12 of the Federal Farm Loan Act, as amended
(U.S.C., title 12, secs. 771-772), is amended by adding at the end
thereof the following new paragraph:
'Twelfth. Notwithstanding the provisions of paragraph 'Second,'
the rate of interest on any loans on mortgage made through national
farm loan associations or through agents as provided in Section 15,
or purchased from joint-stock land banks, by any Federal Land bank,
outstanding on the date this paragraph takes effect or made through
national farm-loan associations within two years after such date, shall
not exceed 4% per centum per annum for all interest payable on instalment dates occurring within a period of five years commencing sixty
days after the date this paragraph takes effect and no payment of the
principal portion of any instalment of any such loan shall be required
during such five-year period if the borrower shall not be in default with
respect to any other condition or covenant of his mortgage. The foregoing provisions shall apply to loans made by Federal Land banks through
branches, except that the rate of Interest on such loans for such five-year
period shall be 5 per centum in lieu of 4% per centum. The Secretary
of the Treasury shall pay each Federal Land Bank, as soon as practicable
after Oct. 1 1933,,and after the end of each quarter thereafter, such
amount as the Farm Loan Commissioner certifies to the Secretary of
the Treasury is equal to the amount by which interest payments on
mortgages held by such bank have been reduced, during the preceding
quarter, by reason of this paragraph but in any case in which the Farm
Loan Commissioner finds that the amount of interest payable by such
bank during any quarter has been reduced by reason of the refinancing
of bonds under Section 32 of this Act, the amount of the reduction so
found shall be deducted from the amount payable to such bank under
this paragraph. No payments shall be made to a bank with respect
to any period after June 30 1938. There is authorized to be appropriated, out of any money in the Treasury not otherwise appropriated,
the sum of $15,000,000 for the purpose of enabling the Secretary of the
Treasury to make payments to Federal Land banks which accrue during
the fiscal year ending June 30 1934, and such additional amounts as may
be necessary to make payments accruing during subsequent fiscal years.
Increase of Amount of Loans to Borrowers.
Sec. 25. Paragraph "Seventh" of Section 12 of the Federal Farm
Loan Act, as amended (U.S.C., title 12, sec. 771) (relating to the limitations as to amount of loans), is amended by striking out "$25,000"
and inserting "$50,000, but loans to any one borrower shall not exceed
$25,000 unless approved by the Farm Loan Commissioner."
Direct Loans.
Sec. 26, Section 7 of the Federal Farm Loan Act, as amended, is
amended by striking out the last paragraph and inserting in lieu thereof
the following new paragraphs
"Whenever it shall appear to the Farm Loan Commissioner that
national farm-loan associations have not been formed in any locality
.n the continental United States, or that the farmers residing in the
territory covered by the charter of a national farm-loan association are
unable to apply to the Federal Land Bank of the district for loans on
account of the inability of the bank to accept applications from such
association, the Farm Loan Commissioner shall authorize said bank
to make direct loans to borrowers secured by first mortgages on farm
lands situated within any such locality or territory. Except as herein
otherwise specifically provided, all provisions of this Act applicable
with respect to loans made through national farm-loan associations shall,
insofar as practicable, apply with respect to such direct loans, and the
Farm Loan Commissioner is authorized to make such rules and regulations as he may deem necessary with respect to such direct loans.
"The rate of interest on such direct loans made at any time by any
Federal Land Bank shall be one-half of 1 per centum per annum in excess
of the rate of interest charged to borrowers on mortgage loans made at
such time by the bank through national farm-loan associations.
"Each borrower who obtains a direct loan from a Federal Land Bank
shall subscribe and pay for stock in such bank in the sum of $5 for each
$100 or fraction thereof borrowed. Such stock shall be held by such
Federal Land Bank as collateral security for the loan of the borrower
and shall participate in all dividends. Upon full payment of the loan,
such stock shall, if still outstanding, be canceled at par, or, in the event
that such stock shall have become impaired, at the estimated value
thereof as approved by the Farm Loan Commissioner, and the proceeds
thereof shall be paid to the borrower.
"Each such borrower may covenant in his mortgage that, whenever
there are ten or more borrowers who have obtained from a Federal
May 20 1933
Land Bank direct loans under the provisions of this section aggregating
not less than $20,000, and who reside in a locality which may, in the
opinion of the Farm Loan Commissioner, be conveniently covered by
the charter of and served by a national farm-loan association, he will
unite with such other borrowers to form a national farm-loan association.
Such borrowers shall organize the association subject to the requirments
and the conditions specified in this section, so far as the same may be
applicable, and in accordance with rules and regulations of the Farm
Loan Commissioner. As soon as the organization of the association has
been approved by the Farm Loan Commissioner, the stock in the Federal Land Bank held by each of the members of such association shall
be canceled at par, and in lieu thereof the bank shall issue in the name
of the association an equal amount of stock in said bank, which stock
shall be held by said bank as collateral security as provided in this section with respect to other loans through national farm-loan associations.
Thereupon there shall be issued to each such member an amount of
capital stock in the association equal to the amount which he previously held in said bank, which stock shall be held by said association
as collateral security as provided in Section 8 of this Act. The board of
directors of said association shall adopt a resolution authorizing and
directing its secretary-treasurer on behalf of said association to endorse,
and thereby become liable for the payment of, the mortgages taken
from its charter members by the Federal Land Bank. When it shall
appear to the satisfaction of the Farm Loan Commissioner that all the
foregoing conditions have been complied with, and upon the granting of
the charter by the Farm Loan Commissioner, the Interest rate paid by
each charter member of such association whose loan is in good standing
shall, beginning with his next regular instalment date, be reduced to
the rate of interest paid by borrowers on new loans made through national farm-loan associations in the same Federal Land Bank district
at the time the said loan was made to such charter member.
"Charges to be paid by applicants for direct loans trom a Federal
Land Bank shall not exceed amounts to be fixed by the Farm Loan
Commissioner and shall in no case exceed the charges which may be
made to applicants for loans and borrowers through national farm-loan
associations under the provisions of Sections 11 and 13 of this Act."
Loans to Receivers.
Sec. 27. Any receiver appointed by the Federal Farm Loan Board
pursuant to Section 29 of the Federal Farm Loan Act, as amended,
or any receiver appointed by a district court of the United States,
is authorized, for the purpose of paying taxes on farm real estate owned
by the bank or securing the mortgages held by it, with the approval
of the Farm Loan Commissioner, to borrow from the Reconstruction
Finance Corporation and to issue receiver's certificates against the assets
of such bank as security for any loan received from the Corporation under
this section, and such certificates shall constitute a prior lien on such
assets. The Reconstruction Finance Corporation is authorized to
make loans to such receivers for the purposes of this section.
Federal Farm Loan Bonds as Security for Advances by Federal Reserve Banks.
Sec. 28. The eighth paragraph of Section 13 of the Federal Reserve
Act, as amended, is amended by inserting before the period at the end
thereof a comma and the following: "or by the deposit or pledge of
bonds issued pursuant to the paragraph added to section 32 of the Federal Farm Loan Act, as amended by Section 21 of the Emergency Farm
Mortgage Act of 1933."
PART 2—JOINT-STOCK LAND BANKS.
Limitations on Issue of Bonds and Lending.
Sec. 29. After the date of enactment of this Act, no joint-stock land
bank shall issue any tax-exempt bonds or make any farm loans except
such as are necessary and incidental to the refinancing of existing loans
or bond issues or to the sale of any real estate now owned or hereafter
acquired by such bank.
Loans to Joint-Stock Land Banks to Provide for Orderly Liquidation.
Sec. 30. (a) The Reconstruction Finance Corporation is authorized
and directed to make available to the Farm Loan Commissioner, out
of the funds of the Corporation, the sum of $100,000,000, to be used,
for a period not exceeding two years from the date of enactment of this
Act, for the purpose of making loans to the joint-stock land banks
organized and doing business under the Federal Farm Loan Act, as
amended, at a rate of Interest not to exceed 4 per centum per annum,
payable annually. Such loans shall be made upon application therefor
by such banks and upon compliance with the requirements of this section. The amount which may be loaned hereunder to any such bank
shall not exceed an amount having the same proportion to the said $100,000,000 as the unpaid principal of the mortgages held by such bank on
the date of enactment of this Act bears to the total amount of the unpaid
principal of the mortgages held by all the joint-stock land banks on such
date.
(b) Any joint-stock land bank applying for a loan under this section
shall deliver to the Farm Loan Commissioner as collateral security
therefor first mortgages or purchase-money mortgages on farm lands,
first mortgages on farm real estate owned by the bank In fee simple,
or such other collateral as may be available to said bank, including
sales contracts and sheriff's certificates on farm lands. The real estate
upon which such collateral is based shall be appraised by appraisers
appointed under the Federal Farm Loan Act, as amended, and the borrowing bank shall be entitled to borrow not to exceed 60 per centum of
the normal value of such real estate as determined by such appraisal.
Fees for such appraisals shall be paid by the applicant banks in such
amounts as may be fixed by the Farm Loan Commissioner. No such
loan shall be made until the applicant bank, under regulations to be
prescribed by the Farm Loan Commissioner, (1) shall have agreed to
grant to each borrower then indebted to the bank under the terms of a
first mortgage a reduction to 5 per centum per annum In the rate of interest specified in such mortgage, beginning at his next regular Instalment
date occurring more than sixty days after the date of enactment of this
Act, and (2) shall have agreed to the satisfaction of the Commissioner
that during a period of two years from the date of enactment of this Act
the bank will not proceed against the mortgagor on account of default
In the payment of interest or principal due under the terms of Its mortgage and will not foreclose its mortgage unless the property covered by
such mortgage is abandoned by the mortgagor or unless, In the opinion
of the Commissioner, such foreclosure is necessary for other reasons.
Such loans shall be made to aid the orderly liquidation of any such bank
in accordance with such plan as may be approved by the Farm Loan
Commissioner. Before any such plan is approved by the Commissioner
he shall be satisfied that the plan carries out the purposes of this section
and that such part of the proceeds of the loan as is devoted to settlements
with bondholders will be used only to effect an equitable settlement with
all bondholders. After the plan has been approved by the Commisstoner he shall require the bank to mail a copy thereof to all its known
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Financial Chronicle
bondholders and to publish a notice setting forth its provisions in at least
three newspapers having general circulation.
Loans by the Farm Loan Commissioner to Joint-Stock Land Banks for
Emergency Purposes.
See. 31. (a) Out of the funds made available to him under section 30,
the Farm Loan Commissioner is authorized to make loans,in an aggregate
amount not exceeding $25,000,000, at a rate of interest not to exceed
4 per centum, to any joint-stock land bank for the purpose of securing
the postponement for two years from the date of the enactment of this
Act of the foreclosure of first mortgages held by such banks on account
of (1) default in the payment of interest and principal due under the
terms of the mortgage, and (2) unpaid delinquent taxes, excluding
interest and penalties, which may be secured by the lien of said mortgage:
Provided, That during the period of postponement of foreclosure such
bank shall charge the mortgagor interest at a rate not exceeding 4 per
centum per annum on the aggregate amount of such delinquent taxes and
defaulted interest and principal with respect to which loans are made
pursuant to this section. The amount loaned to any joint-stock land
bank under this section shall be made without reappraisal: Provided,
That the amount loaned with respect to any mortgage on account of
unpaid principal shall not exceed 5 per centum of the total unpaid
principal of such mortgage, and the total amount loaned to any such
land bank with respect to any mortgage shall not exceed 25 per centum
of the total unpaid principal of such mortgage.
(b) No such loan shall be made with respect to any mortgage unless the
Farm Loan Commissioner is satisfied that the mortgagor, after exercising
ordinary diligence to pay his accrued delinquent taxes, and meet accrued interest and principal payments, has defaulted thereon and
unless the bank shall have agreed to the satisfaction of the Farm Loan
Commissioner that during such two-year period the bank will not foreclose such mortgage unless the property covered thereby is abandoned
by the mortgagor or unless in the opinion of the Farm Loan Commissioner
such foreclosure is necessary for other reasons.
(c) Each such loan shall be secured by an assignment to the Farm
Loan Commissioner of the lien of the taxes and (or) of the bank's mortgage with respect to which the loan is made: Provided, That the part
of each such lien so assigned representing the interest and principal
due and unpaid in any such mortgage which has been assigned to the
farm loan registrar shall be subordinate to the existing lien of the bank
for the balance of the indebtedness then or thereafter to become due
under the terms of such mortgage but the Farm Loan Commissioner
may require the bank to furnish additional collateral as security for such
loan, if such collateral is available to the bank.
(d) The Farm Loan Commissioner is authorized to make such rules and
regulations as may.be necessary to carry out the purposes of this section
and to make the relief contemplated immediately available.
PART 3—LOANS TO FARMERS BY FARM LOAN
COMMISSIONER.
Reduction of Debts and Redemption of Foreclosed Farms.
Sec. 32. The Reconstruction Finance Corporation is authorized and
directed to allocate and make available to the Farm Loan Commissioner
the sum of $200,000,000, or so much thereof as may be necessary, to be
used for the purpose of making loans as hereinafter provided to any
farmer, secured by a first or second mortgage upon the whole or any
part of the farm property, real or personal, including crops, of the
farmer. The amount of the mortgage given by any farmer, together
with all prior mortgages or other evidences of indebtedness secured by
such farm property of the farmer, shall not exceed 75 per centum of
the normal value thereof, as determined upon an appraisal made pursuant to the Federal Farm Loan Act, as amended nor shall a loan in
excess of $5,000, be made to any one farmer. Every mortgage made
under this section shall contain an agreement providing for the repayment of the loan on an amortization plan by means of a fixed number of
annual or semiannual installments, sufficient to cover (1) interest on
unpaid principal at a rate not to exceed 5 per centum and (2) such payments equal in amount to be applied on principal as will extinguish the
debt within an agreed period of not more than 10 years or, in the case
of a first or second mortgage secured wholly by real property and made
for the purpose of reducing and refinancing an existing mortgage within
an agreed period no greater than that for whilh loans may be made
under the Federal Farm Loan Act, as amended, from the date the first
payment on principal is due: Provided, That during the first three
years the loan is in effect payments of interest only may be required
if the borrower shall not be in default with respect to any other condition
or covenant of his mortgage. No loan shall be made under this section
unless the holder of any prior mortgage or instrument of indebtedness
secured by such farm property arranges to the satisfaction of the Farm
Loan Commissioner to limit his right to proceed against the farmer
and such farm property for default in payment of principal. Loans
under this section shall be made for the following purposes only: (1) Refinancing, either in connection with proceedings under chapter VIII
of the Bankruptcy Act of July 1 1898, as amended (relating to agricultural compositions and extensions), or otherwise, any indebtedness,
secured or unsecured, of the farmer, (2) providing working capital for
his farm operations, and (3) enabling any farmer to redeem and (or) repurchase farm property owned by him prior to forelcosure which has
been foreclosed at any time between July 1 1931, and the date of the
enactment of this Act, or which is foreclosed after the enactment of
this Act. The provisions of paragraph "Ninth" of section 13 of the
Federal Farm Loan Act, as amended (relating to charges to applicants
for loans and borrowers from the Federal Land banks), shall, so far as
practicable, apply to loans made under this section. As used in this
section, the term "farmer" means any individual who is bona fide engaged in farming operations, either personally or through an agent cr
tenant, or the principal part of whose income is derived from farming
operations and includes a personal representative of a deceased farmer.
Regulations.
Sec. 33. The Farm Loan Commissioner is authorized to make such
rules and regulations, and to appoint,employ,and fix the compensation of
such officers, employees, attorneys, and agents as may be necessary to
carry out the purposes of this title and to make the relief contemplated
to the provisions of
by rids title immediately available, without regard
other laws applicable to the employment and compensation of officers
no salary or comof
the
That
United States: Provided,
and employees
pensation in excess of $10,000 shall be paid to any person employed
under the terms of the foregoing section.
Facilities of Federal Land Banks and National Farm Loan Associations
Made Available.
Sec. 34. The Federal land banks and the national farm loan associations are authorized, upon request of the Farm Loan Commissioner,
to make available to him their services and facilities to aid in administering the provisions of this title.
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Penalties.
Sec. 35. Any person who shall knowingly make any material false
representation for the purpose of obtaining any loan under part 3 of this
title, or in assisting in obtaining any such loan, shall, upon conviction
thereof, be fined not more than $1,000, or imprisioned not more than
six months, or both.
PART 4—REFINANCING OF AGRICULTURAL IMPROVEMENT
DISTRICT INDEBTEDNESS FOR THE BENEFIT OF FARMERS.
Loans by Reconstruction Finance Corporation.
Sec. 36. The Reconstruction Finance Corporation is authorized and
empowered to make loans as hereinafter provided, in an aggregate
amount not exceeding 850,000,000 to drainage districts, levee districts,
levee and drainage districts, irrigation districts, and similar districts,
duly organized under the laws of any State, and to political subdivisions
of States, which prior to the date of enactment of this Act, have completed projects devoted chiefly to the improvement of lands for agricultural purposes. Such loans shall be made for the purpose of enabling
any such district or political subdivision (hereafter referred to as the
"borrower") to reduce and refinance its outstanding indebtedness incurred in connection with any such project, and shall be subject to the
same terms and conditions as loans made under section 5 of the Reconstruction Finance Corporation Act, as amended except that (1) the
term of any such loan shall not exceed forty years (2) each such loan
shall be secured by refunding bonds issued to the Corporation by the
borrower which are a lien on the real property within the project or on
the amount of the assessments levied on such property by the borrower
pursuant to State law, or by such other collateral as may be acceptable
to the Corporation (3) the borrower shall agree not to issue during the
term of the loan any bonds so secured except with the consent of the
Corporation (4) the borrower shall pay to the Corporation, until all
bonds of the borrower held by the Corporation are retired, an amount
equal to the amount by which the assessments against the real property
within the project collected by the borrower exceed the costs of operation
and maintenance of the project and interest on its outstanding obligations
and (5) the borrower shall agree, to the satisfaction of the Corporation,to
reduce the outstanding indebtedness to the borrower of the landowners
within such project by an amount corresponding to that by which the
indebtedness of the borrower is reduced by reason of the operation of
this section, to distribute the amount of such reduction among such
landowners on a pro rata basis, to cancel and retire its outstanding
bonds in an aggregate amount equal to the amount of the reduction so
distributed, and to permit the Corporation, in the case of the payment
of the bonds of the borrower or the liquidation of such project, to participate in such payment or in the proceeds of such liquidation on the
basis of the face amount of the bonds so retired plus the face amount
of the bonds held by the Corporation as security for the loan. No loan
shall be made under this section until the Reconstruction Finance
Corporation (A) has caused an appraisal to be made of the property
securing and (or) underlying the outstanding bonds of the applicant,
(B) has determined that the project of the applicant is economically
sound, and (C) has been satisfied that an agreement has been entered
into between the applicant and the holders of its outstanding bonds
under which the applicant will be able to purchase or refund such bond
at a price determined by the Corporation to be reasonable after taking
into consideration the average market price of such bonds over the six
months' period ending March 1 1933, and under which a substantial
reduction will be brought about in the amount of the outstanding indebtedness of the applicant.
Sec. 37. The Reconstruction Finance Corporation, upon request of
the Secretary of the Interior, is authorized and empowered to advance
from funds made available by section 2 of the Act of Jan. 22 1932 (47
Stat.L. 5), to the reclamation fund created by the Act of June 17 1902
(32 Stat.L. 388), such sum or sums as the Secretary of Interior may deem
necessary, not exceeding $5,000,000, for the completion of projects or
divisions of projects now under construction, or projects approved and
authorized. Funds so advanced shall be repaid out of any receipts and
accretions accruing to the reclamation fund within such time as may
be fixed by the Reconstruction Finance Corporation, not exceeding five
years from the date of advance, with interest at the rate of 4 per centum
per annum. Sums so advanced may be expended in the same way as
other moneys in the reclamation fund.
PART 5—INCREASE OF LENDING POWER OF
RECONSTRUCTION FINANCE CORPORATION.
Sec. 38. In order to provide funds to carry out the purposes of this
title, the amount of notes, debentures, bonds, or other such obligations
which the Reconstruction Finance Corporation is authorized and empowered under section 9 of the Reconstruction Finance Corporation
Act, as amended, to have outstanding at any one time, is hereby increased by $300,000,000.
PART 6—FUNCTIONS OF FARM LOAN COMMISSIONER
UNDER EXECUTIVE ORDERS.
Sec. 39. If and when any executive order heretofore transmitted to
the Congress pursuant to title IV of part II of the Legislative Appropriations Act of 1933, as amended, shall become effective, all functions,
powers, authority, and duties conferred upon or vested in the Farm
Loan Commissioner by this title shall be held and exercised by him
subject to all the terms and conditions in any such Executive order
the same as if such functions, powers, authority, and duties were specifically named in such Executive order or orders.
PART 7—MISCELLANEOUS.
Perfecting Organization Farm Credit Administration.
Sec. 40. The Governor of the Farm Credit Administration is authorized, in carrying out the powers and duties now or hereafter vested in
him or the Farm Credit Administration by law or under any Executive
order made under title IV of part II of the Legislative Appropriation
Act of 1933, as amended, to establish, and to fix the powers and duties
of, such divisions, agencies, corporations, and instrumentalities as he
may deem necessary to the efficient functioning of the Farm Credit
Administration and the successful execution of the powers and duties
so vested in the Governor and the Farm Credit Administration. This
section shall not be construed to restrict the authority of the President
under title IV of such Act, as amended: Provided, That no salary or
compensation shall be paid to any officer, agent,or other person employed
under this section in excess of $10,000 per annum.
Loans to Fruit Growers.
Sec. 41. That in making loans to owners of groves and orchards, including citrus-fruit groves and other fruit groves and orchards, the
3420
Financial Chronicle
May 20 1933
Federal land banks, the farm land banks, and all Government agencies
The
silver accepted and received under the provisions
(c)
making loans upon such character of property may, in appraising the
section shall be deposited in the Treasury of the United States,of this
to be
property offered as security, give a reasonable and fair valuation to
held, used, and disposed of as in this section provided.
the fruit trees located and growing upon said property and constituting
(d) The Secretary shall cause silver certificates to be issued in
a substantial part of its value.
denominations as he deems advisable to the total number of dollarssuch
for
which such silver was accepted in payment of debts. Such
PART 8—SHORT TITLE.
tificates shall be used by the Treasurer of the United States insilver cerSec. 42. This title may be cited as the "Emergency Farm Mortgage
payment
of any obligations of the United States.
Act of 1933."
(e) The silver so accepted and received under this section
TITLE III.
shall be
coined into standard silver dollars and subsidiary coins
Financing—and Excercising Power Conferred by Section 8 of
the opinion of the Secretary of the Treasury, to meet any sufficient, in
demands for
Article I of the Constitution: To Coin Money and to Regulate
redemption of such silver certificates issued under the provisions
of this
the Value Thereof. '
section, and such coins shall be retained in the Treasury for
the
payment
Sec. 43. Whenever the President finds, upon investigation, that (1)
of such certificates on demand. The silver so accepted
and
received
the foreign commerce of the United States is adversely affected by
under this section, except so much thereof as is coined under
reason of the depreciation in the value of the currency of any other
visions of this section, shall be held in the Treasury for the sole the propurpose
government or governments in relation to the present standard value
of aiding in maintaining the parity of such certificates as
of gold, or (2) action under this section is necessary in order to regulate
existing law. Any such certificates or reissued certificates,provided in
when
preand maintain the parity of currency issues of the United States, or (3)
sented at tha Treasury, shall be redeemed in standard silver
an economic emergency requires an expansion of credit, or (4) an exin subsidiary silver coin, at the option of the holder of the dollars, or
pansion of credit is necessary to secure by international agreement a
Provided, That,in the redemption of such silver certificates certificates:
issued under
stabilization at proper levels of the currencies of various governments, this section, not to exceed one third of the coin
required for such rethe President is authorized, in his discretion—
demption may in the judgment of the Secretary of the Treasury be
made
(a) To direct the Secretary of the Treasury to enter into agreements
In subsidiary coins, the balance to be made in standard
silver dollars.
with the several Federal Reserve banks and with the Federal Reserve
(f) When any silver certificates issued under the
provisions
of this
Board whereby the Federal Reserve Board will, and it is hereby ausection are redeemed or received into the Treasury from
thorized to, notwithstanding any provisions of law or rules and reguwhatsoever, and belong to the United States, they shall not any source
be
retired,
lations to the contrary, permit such reserve banks to agree that they
canceled, or destroyed, but shall be reissued and paid out
again and
will, (1) conduct, pursuant to existing law, throughout specified periods, kept in circulation but nothing herein shall
prevent the cancelation
open market operations in obligations of the United States Government
and destruction of mutilitated certificates and the
issue
of
other ceror corporations in which the United States is the majority stockholder, tificates of like denomination in their stead, as
provided by law.
and (2) purchase directly and hold in portfolio for an agreed period or
(g) The Secretary of the Treasury is authorized to make rules
and
periods of time Treasury bills or other obligations of the United States
regulation for carrying out the provisions of this section.
Government in an aggregate sum of $3,000,000,000 in addition to those
Sec.46. Section 19 of the Federal Reserve Act,as
amended,
is
amended
they may then hold, unless prior to the termination of such period or
by inserting immediately after paragraph (c) thereof
the following new
periods the Secretary shall consent to their sale. No suspension of
paragraph:
reserve requirements of the Federal Reserve banks, under the terms of
"Notwithstanding the foregoing provisions of this section,
the Federal
section 11(c) of the Federal Reserve Act, necessitated by reason of
Reserve Board, upon the affirmative vote of not less
than five of its
operations under this section, shall require the imposition of the graduated
members and with the approval of the President, may declare
that an
tax upon any deficiency in reserves as provided in said section 11(c).
emergency exists by reason of credit expansion, and may
Nor shall it require any automatic increase in the rates of interest or
during such emergency increase or decrease from time by regulation
discount charged by any Federal Reserve bank, as otherwise specified
discretion, the reserve balances required to be maintainedto time, in its
against either
in that section. The Federal Reserve Board, with the approval of the
demand or time deposits."
Secretary of the Treasury, may require the Federal Reserve banks to
Approved May 12 1933.
take such action as may be necessary, in the judgment of the Board and
of the Secretary of the Treasury, to prevent undue credit expansion.
Processing Taxes and Acreage •Reductio
n Program,
(b) If the Secretary, when directed by the President, is unable to
Authorized in Farm Relief Act, to
secure the assent of the several Federal Reserve banks and the Federal
be Postponed
Because
Tariff
of
Truce
Reserve Board to the agreements authorized in this section, or if opera-Major Operations of
Measure to be Delayed Pending Outcome
tions under the above provisions prove to be inadequate to meet the
of Ecopurposes of this section, or if for any other reason additional measures
nomic Conference.
are required in the judgment of the President to meet such purposes,
Some of the most important powers granted to the
then the President is authorized—
executive branch of the government under the provisions of
(1) To direct the Secretary of the Treasury to cause to be issued in
the
such amount or amounts as he may from time to time order, United
farm-relief act passed by Congress last week and
signed by
States notes, as provided in the Act entitled "An Act to authorize the
the President on May 12 are not likely to be exercised
Issue of United States notes and for the redemption of funding thereof
for
and for funding the floating debt of the United States", approved Feb. the present, according to instructions given to
Secretary of
25 1862, and Acts supplementary thereto and amendatory thereof, in
Agriculture Wallace by President Roosevelt on
the same size and of similar color to the Federal Reserve notes heretofore
May 13.
Passage of the bill was noted in our issue of May
issued and in denominations of $1, $5, $10, $20, $50, $100, $500, $1,000
13, page
$10,000 but notes Issued under this subsection shall be issued only for
3269. In the same issue, on page 3271, it was indicated that
the purpose of meeting maturing Federal obligations to repay sums
the President was opposed to the imposition of compensaborrowed by the United States and for purchasing United States bonds
and other Interest-bearing obligation of the United States: Provided, tory tariffs authorized under the farm relief bill,
pending
That when any such notes are used for such purpose the bond or other
the World Monetary and Economic Conference. In his
obligation so acquired or taken up shall be retired and canceled. Such
instructionsgiven after signing the bill, President Roosevelt
notes shall be issued at such times and in such amounts as the President
stated that because of the American pledge of a tariff truce
may approve but the aggregate amount of such notes outstanding at
any time shall not exceed $3,000,000,000. There is hereby appropriated, Secretary Wallace is not to undertake
any acreage-reduction
out of any money in the Treasury not otherwise appropriated, an amount
program or to levy processing taxes without his consent.
sufficient to enable the Secretary of the Treasury to retire and cancel
The processing tax cannot be levied on domestic processing.
4 per centum annually of such outstanding notes, and the Secretary of
the Treasury is hereby directed to retire and cancel annually 4 per
without being applied as well to imports of the same
comcentum of such outstanding notes. Such notes and all other coins and
modities from abroad.
currencies heretofore or hereafter coined or issued by or under the authority of the United States shall be legal tender for all debts public
Plans of the administration with regard to carrying out
and private.
the provisions of the farm-relief legislation were
(2) By proclamation to fix the weight of the gold dollar in grains
described,
in part, as follows, in a Washington dispatch to the New
nine tenths fine and also to fix the weight of the silver dollar in grain
nine tenths fine at a definite fixed ratio in relation to the gold dollar at
York "Times" May 13:
such amounts as he finds necessary from his investigation to stabilize
Secretary Wallace, under the farm relief bill signed
yesterday by the
domestic prices or to protect the foreign commerce against the adverse
President, has broad powers to enter into agreements
with producers for
effect of depreciated foreign currencies, and to provide for the unlimited
reducing output by curtailment of acreage, leasing
land out of cultivation
coinage of such gold and silver at the ratio so fixed, or in case the Gov- and with processors and distributors for
controlling the marketing of theernment of the United States enters into an agreement with any govprocessed commodities. The cost of all such
operations
would be borne
ernment or governments under the terms of which the ratio between the
by a fund raised by taxing the first processing of
wheat, cotton, hogs, field
value of gold and other currency issued by the United States and by
corn, rice, tobacco and milk and its products.
any such government or governments is established, the President may
To equalize the competitive conditions as between
domestic and foreign
fix the weight of the gold dollar in accordance with the ratio so agreed
producers, the act provides compensating
duties on that part of imports
upon, and such gold dollar, the weight of which is so fixed, shall be the
of such commodities as contain the processed
materials,
and the domestic
standard unit of value, and all forms of money issued or coined by the
processing cannot be taxed unless It is applied
with equal force to importaUnited States shall be maintained at a parity with this standard and it
tions.
shall be the duty of the Secretary of the Treasury to maintain such
The only modification of the provision is that
the President is empowered
parity, but in no event shall the weight of the gold dollar be fixed so
to waive the application of any provision of the
act in his discretion, but
as to reduce its present weight by more than 50 per centum.
when once so waived the provision cannot be
reinstated without a special
Sec. 44. The Secretary of the 'treasury, with the approval of the
act of Congress.
President, is hereby authorized to make and promulgate rules and
Assistant Secretary Tugwell of the Department
and other
of
regulations covering any action taken or to be taken by the President
members of the administration said that the United Agriculture with all
States could
under subsection (a) or (b) of section 43.
propriety apply the compensating tax on imports,
since
barrier to foreignSec. 45. (a) The President is authorized, for a period of six months
ers in selling products here would be no greater than the
be met by dofrom the date of the passage of this Act, to accept silver in payment
mestic producers and processors. But the President must
represented
as being
is
of the whole or any part of the principal or interest now due,or to become
opposed on the ground that it would create an unfavorable psychologY
due within six months after such date, from any foreign government
abroad.
or governments on account of any indebtedness to the United States,
In his public discussion of what is intended to be done under the new
such silver to be accepted at not to exceed the price of 50 cents an ounce
legislation, Secretary Wallace said that he proposed to
every possible
in United States currency. The aggregate value of the silver Accepted
method at his disposal to raise farm prices. Among use
these he included
under this section shall not exceed $200,000,000.
marketing agreements for controlled distribution with a view to price lifting
(b) The silver bullion accepted and received under the provisions of
and acreage reduction by voluntary contracts with farmers under the allotthis section shall be subject to.the requirements of existing law and the
ment plan and the leasing of parts of farms out of cultivation.
regulations of the mint service governing the methods of determining the
A further obstacle in the way of placing the various provisions fully in
amount of pure silver contained, and the amount of the charges or
effect this year was cited in the fact that a large part of the acreage of crops
deductions, if any, to be made but such silver bullion shall not be
Involved already has been planted, with the result that any reduction in
counted as part of the silver bullion authorized or required to be pur- acreage would involve actual crop destruction.
chased and coined under the provisions of existing law.
This, Mr. Wallace admitted, most farmers would be loath to do.
Volume 136
Financial Chronicle
3421
THE COMING
INTERNATIONAL EXPOSITION
AT CHICAGO, ILLINOIS
"A Century of Progress" in the Theatre of the World
The World's Exposition at Chicago.
Chicago continues to be a busy place—perhaps
the busiest in the country for the time being. Feverish activity is being displayed in pushing the work
for the completion of the Exposition. President
Roosevelt finds, to his regret, that he will not be
able to attend the opening exercises, scheduled to
take place on Saturday, May 27, but the Exposition
will nevertheless be opened at the appointed time.
As previously noted, the deepest interest in the
Exposition is felt by everyone in Chicago. The
people of Chicago are determined to have it rank as
the greatest success of the age, and everyone in
the city is boosting it from morning to night. It
looks, too, as if the Exposition was to inaugurate a
new era in the life of the city and of the West. The
Fair seems likely to revive trade and business
throughout the West, and the benefits are sure to
flow to all parts of the country.
It seems certain that the attendance will be large,
when the merits of the undertaking become known.
People will flock to Chicago from all parts of the
United States and also from Europe and other parts
of the world. Chicago is so located that it may be
called the heart of the country, and the railroads will
have an influx of traffic such as they have not seen
before for many a long year. We are confident that
this accession of special traffic will play an important
part in placing the railroads of the country on their
feet once again. We opine, too, that many of the
transatlantic steamship lines, in carrying passengers
to these shores, will get a large amount of new
business for the time being which will be of great
benefit to them.
In a word, we feel that greater activity in the
country's trade and business will result all along the
line, and with that in view we are recording here
from week to week the leading events and happenings connected with the undertaking as they unfold
during the holding of the Exposition so that the
world may not be left in the dark as to this marvelous record of achievement to which all the nations
of the world have contributed.
President Roosevelt Unable to Attend Opening of
• Century of Progress Exposition—Continuance of
Congress, Economic Conference and Other International Discussions Factors Operating to Prevent
President's Presence at Exposition.
President Roosevelt has made known to Rufus C. Dawes,
President of the Chicago Century of Progress Exposition,
his regret at his inability to open the Exposition on May 27
as he had tentatively planned. With a view to endeavoring
to make possible the opening of the Exposition by the
President, the date for its start had been advanced from
June 1 to May 27, as was noted in these columns May 6,
page 3046, and May 13, page 3235. President Roosevelt,
in indicating his inability to function at the opening, explains
that "Congress will probably be entering its closing days,
and in addition to that the Economic Conference and
other international discussions require my close attention."
The President's letter to Mr. Dawes was made public at
Washington May 16 as follows:
My Dear Mr. Dawn:
It is with extreme regret that I find it necessary to cancel my tentative
engagement to open the Chicago Century of Progress Exposition. I am
particularly sorry because I wanted to see for myself what had been accomplished, and to pay tribute to the imagination and creative ability of
a people who celebrate a centenary by evidencing the achievements and
cultural advancement of our modern world.
I have reached this conclusion because every indication now points
to the fact that it will be impossible for me to be away from the Capital
at the time of the opening.
Congress will probably be entering its closing days. and in addition
to that the Economic Conference and other international discussions require
my close attention. I do not think that I should, therefore, hold the
matter open any longer, thus preventing your completing your plans.
It is my hope that the Exposition will be successful in every way and
prove an inspiration to the countless many who will visit it.
Sincerely yours.
FRANKLIN D. ROOSEVELT.
Annual Convention of American Bankers' Association
to Take Place at Chicago Sept. 4-7--Century
of Progress Exposition Provides Entertainment
"Which Is an Opportunity of a Lifetime."
The 59th annual convention of the American Bankers'
Association will be held at the Stevens Hotel, Chicago,
Sept. 4 to 7 inclusive, it was announced at New York on
May 16 by F. N. Shepherd, Executive Manager of the
Association. Mr. Shepherd said:
The entire proceedings, consisting of committee meetings, division
meetings and general sessions will be held at the Hotel Stevens,. which,
with its 3.000 rooms, is adequate to house all delegates. In accordance
with the specific request of the American Bankers' Association the Chicago
Clearing House Association will provide no entertainment features in
connection with the convention. Arrangements will be made for golf
privileges at some of Chicago's excellent clubs for those who wish to piny
golf, and a tournament will be held on Friday, Sept. 8. after the close
of the convention in order that the American Bankers'.Association trophies
may be played for by members.
In the Century of Progress Exposition, the citizens of Chicago have
already provided an entertainment which is an opportunity of a lifetime.
There has been nothing in this country comparable to it since the World's
Fair in Chicago 40 years ago.
The Association has previously met in Chicago five times;
in September 1885, October 1893, which was the time of
the previous World's Fair there, September 1909, September
1918 and September 1924.
The Pennsylvania RR. Exhibit at the
Chicago World Exposition.
A full-size steel engine cab, from one of the Pennsylvania
RR.'s largest locomotives, is now being installed in the center
of the railroad's exhibit in the Travel and Transport building
at A Century of Progress in Chicago. The cab will have
a complete boiler back-head, with all equipment, including
cab signals which reproduce for the locomotive crew the
roadside signals and therefore make for safe railroad operation. The cab signals will be synchronized with full-size
position-light roadside signals, which will be in continuous
operation at each end of the exhibit space.
An 82-inch driving wheel, rotating above a 152-pound
rail on a section of modern roadbed, will be another feature
of the display. Contrasted with this huge modern wheel,
3422
A Century of Progress
at the opposite end of•the exhibit space will be a driving
wheel from the "John Bull," the Pennsylvania RR.'s centuryold locomotive. The "John Bull" wheel will rotate above
a section of roadbed taken from the old Camden & Amboy
RR. in 1832 a stretch of the original roadbed—several
hundred feet long, which i3 still in existence near Jamesburg,
N. J. The old "T" rail will be spiked to the original stone
blocks used a century ago.
Artistic wood carvings 3f the "John Bull" engine and
a modern P.R.R. locomotive will be set in the frieze above
the wheel and track displays. Other wood carvings will
give a touch of the romantic development of transport Won
through the years. Three original Pennsylvania RR.
calendar paintings will lend an artistic touch.
By use of dioramas the Pennsylvania's exhibit will
illustrate how the nation's railroads give unmatchable and
dependable transportation service, day and night, and in
all seasons of the year. A 'miniature four-track roadbed
will be installed in the foreground of these dioramas, and
passenger and freight trains of all classes will be operated
continuously. Through the night scene the trains will be
automatically lighted.
The locomotives and cars used on this miniature railroad
are not toy trains, but actual reproductions of the Pennsylvania RR.'s most modern equipment, built to the scale of
one-quarter inch to the foot. Miniature dioramas of the
Civil War period, including passenger and freight train
reproductions of that time, als will be displayed.
Co-ordinatian of railroad service with all other modes of
transportation, including airplane, bus, car-ferry, steamship
and truck, will be illustrated by large velour murals.
Since the Penn ylvania RR.'s line between Chicago and
New York is the longest stretch of heavy steel rail in the
world, 130 pounds to the yard (152 pounds for many miles),
a rail development display is being provided as an attraction
of the exhibit. It will show how the Pennsylvania has
improved its rail from the "T" rail of the early 19th century
to the present-day 152-pound standard. Another illustration for comparison in railroad development will be shown
through models of the early link-and-pin coupler and the
modern automatic coupler.
The color scheme of the exhibit will be Tuscan red and
gold and the display's illumination and play of lights will
be in complete harmony with unusual lighting effects which
will be featured throughout A Century of Progress.
In addition to its exhibit in the Travel and Transport
building, the Pennsylvania RR. will participate in the
outdoor Pageant of Transportation on the Lake front,
displaying "The Pioneer," an engine of pre-Civil War days
and one of the monster P.R.R. locomotives of to-day. The
original "John Bull" locomotive of 1831, together with
tender and coach, also will be displayed by the Pennsylvania
RR. in the dome of the Travel and Transport building.
Harry T. Wilkins, Manager of Exhibits, will be in charge
of the Pennsylvania RR.'s exhibit in A Century of Progress,
under the direction of Vice-President H. E. Newcomet
of Chicago.
Czechoslovak Business Interests Assigned All Available
Space at Century of Progress Fair at Chicago.
All space at the Century of Progress Fair at Chicago
which was made available for Czechoslovak exhibitors has
now been assigned and future applications are to be denied,
according to a report from the consulate at Prague made
public by the Commerce Department. The Department, in
announcing this on May 15, added:
A total of 56 Czechoslovak firms, representative of the glass, porcelain,
ceramic, leather tanning, toy, textile, foodstuffs and agricultural industries
of that country, have completed arrangements to exhibit products at
the World's Fair.
It is believed that at least 1,000 Czechoslovak visitors will attend the
Fair at Chicago provided necessary foreign exchange arrangements can
be perfected.
May 20 1933
Locomotive 999, which made the famous run from Buffalo
to Batavia, N. Y., in 1893 at an average speed of 112 miles
per hour, pulling the Empire State Express, arrived at
A Century of Progress Exposition on Monday, May 15,
under its own steam. The famous locomotive is part of
the New York Central exhibit at Chicago's 1933 World's
Fair.
Trailing behind it were two flat cars carrying the crack
train of 1831, the DeWitt Clinton, named for New York's
famous Governor of early railroad and canal days, the
man who swept aside all obstacles to build the Erie Canal.
The DeWitt Clinton consists of locomotive, tender and
three coaches, and operated over 17 miles of track between
Albany and Schenectady, N. Y.
Charles Hogan, engineer of 999 on her famous run, will
be in Chicago June 3 to operate the locomotive. He is
85 years old. He will tell visitors how the run was made to
recover lost time and bring the Empire State into Albany
on schedule.
The old Atlantic locomotive, dating from 1832, also arrived on Monday to be part of the Baltimore & Ohio exhibit
in the Travel and Transport building.
From first day to last of A Century of Progress the Western
Union will play a large part in the 1933 Chicago World's
Fair. Light from the star Arcturus will be transmitted
from two of the four observatories chosen to capture the
rays by Western Union wires, thus giving this great telegraph system direct participation in the opening ceremonies.
The telegraph's Century of Progress is represented in 30
graphic displays, which trace the progress of the industry
from the first electric bell in 1829 down to the super-speed,
multichanneled telegraph and cable systems of the present
day.
Instruments which have been epoch-making in the field
of telegraphy, either originals or exact replicas, will be
part of the display. They include Henry's electric bell of
1829; Morse's first transmitter, relay and register of 1844;
Woodman and Farmer's repeater of 1856; Steam's duplex
of 1872; various Morse types of 1860 to 1890; House's
printing telegraph of 1846; the Simplex printing telegraph
of 1926; Calahan's stock ticker, 1867; self-winding ticker,
1910; Thomas A. Edison's universal ticker; universal ticker
and piano keyboard, 1900; high speed stock ticker, 1930,
and mirror galvanometer for ocean cables, 1870.
Other displays show the extent of telegraph and cable
service, a Western Union bulletin ticker bringing the latest
news flashes from all parts of the world; the messenger call
box system; the high-speed sending and receiving units of
the transatlantic cables; an automatic printer, and a time
service display.
Artificial lightning is produced in a section of the display
and devices shown that protect the telegraph wires. Automatic fire protection, sprinkler supervision, burglar alarms
and other protective devices complete the exhibit.
"Make this, Kreusi!"
With these words Thomas Alva Edison handed his laboratory assistant a few scraps of paper, scrawled upon roughly
in pencil. Kreusi "made it" —roughly. in keeping with
the sketch. When he returned with the contraption the
inventor affixed a mysterious wax instrument to it and
turned a switch. Out came the sqeaking wor is, "Mary
had a little lamb. Its fleece was white as snow . . ."
The human voice had been reproduced for the first time.
Kreusi had made a phonograph.
The original phonograph and the pencil drawing from
which it was made are one of the interesting exhibits now
being installed in the Edison Memorial Building on Northerly
Island of the World's Fair —A Century of Progress.
Volume 136
A Century of Progress
3423
faith of industry and business in the future not only of your
own country but of the world.
"It was faith that pushed your great railway systems
across the Continent, faith in the future of your country.
It is faith that is bringing your great industries out of the
depression and setting business on the highroad to recovery.
That faith is concentrated in this marvelous setting—in
these buildings and exhibits. I don't think I am being too
optimistic when I say that this Exposition will likely be
the catalytic agent which will resolve the depression."
Mr. Lemon saw in the huge buildings of General Motors,
the Chrysler Co., Firestone and other industries, and in
the extensive displays in the General Exhibit group, monuments to the continued greatness of American industry.
"I wouldn't have missed it for anything," he said. He
found the modernistic treatment in design and coloring of
particular interest. "These buildings probably will have
a very definite bearing on the architecture of the future.
You have gone much farther than we in the use of presentday materials for construction."
Mr. Lemon inspected the tracks on which the exhibit of
the
company, the famous Royal Scot, will stand during the
his
to lead
Great Britain looks to the United States
months of the Exposition. He found the advanced
Vicefive
Lemon,
H.
world out of the depression, said E. J.
Ry., in an principles of the Travel and Transport dome, with its
President of the London Midland & Scottish
ion on Monday, breathing roof "something of real value in design" and
interview at the Century of Progress Exposit
sees the first expressed the opinion that much use would be found for the
May 15—and in A Qentury of Progre is he
world is waiting. principle in future building construction.
indications of the recovery for which the
"You should compel people to visit this Exposition," he
of Mr. and
Mr. Lemon and his wife were luncheon guests
Building, at said. "It will give them a real incentive of hope for the
Mrs. Rufus C. Dawes at the Administration
's leading future."
which were present a score or more of Chicago
was held
"We won't have to compel them," Mr. Lemon was told.
which
n,
luncheo
the
After
railroad executives.
,
grounds
"They are coming in greater numbers than to any previous
the
in the trustees' room, the party toured
rt
Transpo
Exposition."
and
paying particular attention to the Travel
The Royal Scot, crack train of the London Midland &
group.
visit Scottish Ry., will arrive at A Century of Progress May 25.
"This is the most cheerful thing I have seen on this
has come to It is now making a tour of the United States, following
to the United States," said Mr. Lemon, who
a visit to Canada.
America many times. "It is a marvelous record of the
tells the ever-romantic
The exhibit—gripping, because it
to world wide fame in
rise
can
story of how a poor newsboy
—will trace the life of
America if he has courage and idess
birth until his death
Thomas Edison from the time of his
not long ago.
of the great beneBesides the phonograph, many other
the progress of
to
tions
contribu
nt
factor's most importa
gave them
first
that
civilization will be seen in the form
meters;
electric
earliest
life. Here will be seen one of the
printer,
stock
the
lamps;
the first incandescent electric
chalk telephone,
forerunner of the modern "ticker"; the
talking motionthe
ent;
instrum
ancestor of the present
experimented in the
picture machine with which Edison
tube; the junction
early years of the 20th century; the X-ray
box, and a host of others.
and his inventions
The inspiring story of the inventor's life
men who worked
by
visitors
Fair
World's
will be told to
for years in his laboratory.
Indications of Business Activity
ME.
THE STATE OF TRADE—COMMERCIAL EPITO
Friday Night, May 19 1933.
There has been no fundamental change in the condition
of business in the United States. In general it either holds
its own or is gradually increasing, although the European
situation has intruded itself again here and thus adds another complication to our troubles during an experimental
time. Trade keeps going well, but a seasonal set-back
would not be surprising. Crop weather is better too. The
export retail and wholesale business is expanding. There
are excellent reasons for this. In the first place, as everybody knows, stocks have become gradually depleted in both
retailers' and wholesalers' hands after a long period of
abstention from usual purchases, but in the nature of the
case it could not continue indefinitely. Stocks had to be
replenished and this has been going on for some weeks past.
The stock market has been advancing, although of late
there has been some reaction. President Roosevelt's appeal
to 54 nations to join in the disarmament movement had an
excellent effect at home and for the most part abroad and
was itself the cause of some advance in stocks. Also, Hitler's
speech on Wednesday was more conciliatory than had been
expected. This also had an excellent effect.
The electric power output is 2.6% higher, showing a
distinct advance over the fractional increase in the last week.
Wages are being increased here and there in many different
lines of business. Producion tends to increase. Steel output
industries
is up to 35%. The condition of manufacturing
s such as
is very promising, especially the textile branche
cotton, woolen and worsted. Some reports show that wholeare at a new high
sale orders of various kinds of merchandise
level. In any case, the period of pessimism has disappeared
ness,
and one of optimism, or at any rate, of greater cheerful
has taken its place.
Textile prices are higher. The sales of print cloths here
show no little activity. In other words the consumers have
greater confidence. They show it by increased purchases.
Better shopping weather has helped business. Some of the
department stores and large specialty shops report that sales
are fully 10% in excess of the record for the same week in
1932. One incentive to buying is the fact that buyers fear
that prices may advance further under the stimulus of inflation and inflationary measures. Dealers at the West are
cautioning purchasers on this point, warning them not to
expect present low prices to continue indefinitely. Wool has
been in good demand and firm. The sales of hardware,farm
implements and gardening tools are larger. In foodstuffs
further price advances have been announced. Canning
companies are having the best business seen for several
years past and the carry-over pack is being rapidly reduced.
Consumers are buyung large quantities particularly of flour,
sugar and canned goods. There is a better sale for low
priced automobiles but there is no particular activity in the
more costly ones. There is less business in women's coats
and millinery than last week but there is no falling off in
the demand for shoes, hosiery and dresses. Novelty jewelry
is said to be in better demand. Men's clothing is now making
a larger gain than women's apparel. It is pointed out that the
wave of buying in the wholesale trade has carried business
substantially ahead of that of last year in many divisions.
This refers not only to quantity but dollar volume as well
with cotton goods especially prominent. Orders for hardware, paints, dry goods, grocedes and knitwear are being
extended well into the fall season in order to take advantage
of current prices. Orders for automobile accessories are 2
to 5% larger than for the same week last year. There is
some increase in the demand for wall paper. In other words
taking American trade by and large in most divisions, sales,
3424
Financia
l Chronicle
May 20 1933
are larger than at the beginning of the quarter and some its
flair for legislative plans promulgated by Washin
gton.
manufacturers are running ahead of the same period for Bond
trading was quieter with transactions of $10,90
1932. In fact this is becoming common place. It is rarely
0,000.
Foreign bonds as a group were weak with Germa
n issues
now that reports show no increase. Wage increases are makin
g the poorest showing. On the 16th prices advanc
ed
becoming more numerous even in the textile industry where
again an average of about 1M points. The princip
al reason
deflation of course was carried to a greater extent than some given
was the effect of President Roosevelt's disarm
ament
other branches of trade.
message. Transactions amounted to 3,291,
711 shares.
There is an increase in most branches of the steel business Trade
news continued bullish, but it is being oversh
and also in brass, copper and other non-ferrous metals.
adowed
In as a market factor of late by the international
political
other words the buying wave is beginning to penetrate
the situation. The German list was markedly strong
as were
metal trades where inventories have been allowed to drop
to French and United Kingdom issues. Total
sales were
a noticeably low mark. The leading rubber plants are
operat- $11,743,000.
ing at capacity 24 hours a day. There has been a steady
On the 17th stock averages were about a point above
improvement in the glass industry with plate and window of
those
the previous day at the close in an active
market with
glass in large quantities being sold particularly to the auto- transa
ctions of 4,794,300 shares. President Hitler'
s address
mobile trade. The demand for beer bottles has been active to
the Reichstag was well received, trade news
continued
and restaurant and hotels are buying more glassware. Also on
the mend and the declaration of the regular
quarterly
there has been a good business in cases, kegs and barrels. divide
nd by the American Tel. & Tel. Co. caused
renewed,
New breweries are entering the field.
confidence in the financial district. Estima
tes issued of
After some falling off in the production during the winter steel produc
tion at 35% of capacity, and the increase
months the rayon industry has resumed production at ca- 2.2%
of
in electric output for last week over the
same period
pacity with a better demand for goods and better prices for of the
year before were other constructive factors
. Bond
yarns. Silk mills are more active. Thread manufacturers prices
were also stronger, except for United States
Governare receiving large orders. At Kansas City wholesale trade ments.
Foreign bonds, particularly German
issues, adhas brightened and store sales are the highest of the year. vanced
in decisive fashion and domestic corporation
bonds
Retail trade is the best since July 1931. The talk of infla- were buoyan
t. Total sales were $14,927,000.
tion has stimulated business. Comparisons with last year
On the 18th, after a rather sharp decline, prices
recovered
make a steadily improving showing. Hogs are the highest in
the last hour and the close, while somewhat
lower than
since September 1st last.
on the previous day, was substantially higher
than the low
In Minneapolis hogs and live stock have been most active. points
. Weakness prevailed in the commodity
markets and
Store gales have increased very noticeably. Prices for shoes,
the uncertainty over the United Corp. divide
nd tended to
woolen goods, men's clothing and furniture advanced.
keep prices down. Railroad stocks gave
an excellent
Retailers say it is hard to secure immediate delivery on
account of themselves and did better is a rule
than indusclothing especially men's lines. Hogs are the highest in six
trials. Total sales were 4,112,720. Bonds sagged
months. In San Francisco wolesale trade fearing higher
off with
stocks and rallied also in the afternoon. Total
transactions
prices from inflation was more active though retail business
amounted to $15,509,000. Profit-taking in the
was "spotty."
speculative
issues was very apparent. To-day stocks,
after backing
In Chicago wholesale trade in dry goods noticeably exand filling, closed irregularly lower on most groups
. There
ceeded that of last year in dollar volume with cotton goods
was some improvement towards the close
but sales were
leading. Also the output of steel increased and pig-iro
n only 3,279,562 shares. Bonds were higher,
with sales of
prices advanced 50 cents. The higher prices for grain have
$12,220,000. Industrials were generally improv
ed with oils
encouraged farmers to buy more freely of wire and impleand copper leading the way. Foreign bonds
were generally
ments parts and also of general merchandise through mailstronger.
order houses. Many firms added to the number of their
Chicago reports a 10% reduction made in
workers, especially in the automobile accessory plants. New
salaries of a
group of Sears, Roebuck & Co. employees in
March has been
building was slow.
restored. The company is said to have
confirmed the inIn St. Louis all lines show improvement. The steel and
formation. At Manchester, N. Y., on May
15, the Amosiron production has been increased and new workers added.
keag Mfg. Co., largest cotton goods
manufacturer of the
Retail trade was larger. The recent rise in grain and cotton
country announced a 15% increase in
wages, effective
has heartened the farming population. Employment is July
29, following a marked increase in output
for 45 days.
gradually increasing in various trades, especially in the About
7,500 are now steadily employed.
Amoskeag is the
cotton industry and in some cases wages have been advanced. first
of the larger cotton industrials to increas
e wages and
In Cleveland steel output has been up to 54%, at Youngs- it is felt
in textile circles that other large
concerns will fall
town 33, at Lorain 80 and Pittsburgh 30. At Akron tire in line.
The Stevens woolen and the Subway
hosiery mills
prices have been advanced, with a better demand and higher at Franklin have
stepped up production to
capacity and
production has also caused some advance in wages. In the Nashua mills
are also adding help.
some cases, plants have been operating at capacity. At
A dispatch from Montgomery, Ala., states
that increases
Canton factories employment was the highest since July for 1,000 textile operat
ors and 425 new jobs were
1930. Retail sales have increased. Higher prices have by cotton mills.
reported
Increases of 5 to 10% for
employes of the
given more snap to trading and more cheerfulness to senti- Bradfo cotton
rd
mills operating here and at
Prattville were
ment.
announced by H. C. Dowell, Manager, who
added that the
In Philadelphia employment has increased. In general mills were operat
ing at full capacity twenty-four hours
May is making a better showing in trade than April and The
a day.
Tallassee Cotton mills increased the numbe
r of operatives
prospects for June are considered good. The steel outlook from
1,100 to 1,400 and T. H. Floyd, Manag
er, said their
is better. The anthracite coal trade is quiet. Leather busine approx
ss
imated the peak of 1929. Tacom
a, Washis in better demand and firmer. Some stress is laid on ington
reported that the Peterman Manufa
cturing Co.,
larger trade in textiles, metals and building materials. De- makers
of doors and veneer will increase the wages
of 360 men
partment store trade is stimulated by new spring styles at 10%
or more effective Saturday.
attractive prices. In Boston wool has been active and firm
Over the week-end cloudy and rainy
weather was still
and in woolens and worsteds trading has been on a con- quite
general all over the country. Abilene,
Texas, reported
spicuously large scale. Cotton textiles have shown
an 2.24 inches precipitation. In New York it was
partly cloudy
unmistakable improvement also.
with showers on Sunday. Temperatures here
were 58 to 72;
In the stock market on Saturday, the 13th, trading rein Baltimore, 70 to 84; Boston, 60 to 76;
Chicago, 54 to 74;
mained active with total sales of 2,273,617 shares. Profit
Denver,36 to 60; Montreal, 50 to 64; San Antoni
o, 74 to 92,
taking continued and average prices declined a little over a and
St. Louis, 56 to 72. On the 16th it was cloudy and
point. Trade news was bullish. In fact, the comment is rainy
in New York and clearing in the Middle
West. Here
now made that business statistics have improved with such it was
47 to 69. Boston had 52 to 68; Chicago,
50 to 64;
monotonous regularity recently that good news of this
Cleveland, 52 to 56; Denver, 50 to 74; Kansas City,
00 to 82;
sort is beginning to be discounted as a market factor. On Montre
al, 42 to 60; San Francisco, 48 to 58, and Winnipeg,
the 15th activity died down again and total sales were 48 to 82.
On the 18th inst., the temperature in New York
3,151,760 shares. Prices backed and filled for the most was
64 to 73; at Chicago, 74 to 76; Cincinnati, 72 to 78;
part with the close irregularly lower. Rails and utilities Detroit,
70 to 76; Boston, 64 to 78; Montreal, 70 to 80;
were generally weaker. The revival of Germany's militant Philadelphia
, 66 to 78; Cleveland, 70 to 76; Milwaukee,
spirit caused weakness and the market seemed to have lost 58 to 64; Kansas
City, 82 to 86, and Minneapolis, 78 to 82.
115.6
115.8
115.0
115.3
116.4
116.0
114.9
ACTIVITY AND
TABLE I-THE "ANNALIST" INDEX OF BUSINESS
COMPONENT GROUPS.
PERCENTAGE INCREASE OR DECREASE FROM A YEAR AGO.
Boston
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
MUMS CityDallas
San Franciseo
.v.,(.1
-12
-10
...
-9
- 10
-5
-13
-13
-12
-6
-7
-I
-6
-9
-22
Number
ot
('We:.
52
54
41
29
44
23
62
18
17
23
25
80
28
29
17
9
23
16
32
9
12
15
10
27
439
227
*ppm figures preliminary. In most districts the month had one less business
day Ws year than last year.
"Annalist" Monthly Index of Business Activity Higher
During April than During March.
Index of Business Activity stands at 56.2
"Annalist"
The
(preliminary) for April, as against 52.7 for March, 56.4 for
February, 57.2 for January and 56.5 for April 1932. In
issuing its index yesterday (May 19), the "Annalist" also
said:
are available,
which April figures
All of the components of the index for
increases over March. the most
except boot and shoe production, showed
loadings and steel Ingot producpronounced gains appearing in freight car
zinc production, which had already
tion. The smallest increases were in
coal production, which
experienced a substantial rise, and in butuminous
to a limited extent in the current
appears thus far to have participated only
general busines improvement.
56.4
52.7
6,561.000,000 kwh..
*Subject to revision. a Based on an estimated output ofkwh.
n March and
as against the "Geological Survey" total of 6,636,000.000
Daily News" estimate
6.790,000,000 kwh. in April 1932. b Based on "Automotive
as against Department of
Canada),
and
States
(United
trucks
and
cars
of 168,700
and 154,823 cars and trucks
Commerce total of 125,224 cars and trucks in March
pairs, as against the
In April 1932. c Bawd on an estimated output of 24,000,000 and 25,945,784 pairs
March
in
pairs
28.374,157
of
total
Department of Commerce
in April 1932,
1928.
TABLE II-THE COMBINED INDEX SINCE JANUARY
Preliminary figures on the value of department store sales show an increase from March to April of more than the estimated seasonal amount.
The Federal Reserve Board's index,which makes allowance both for number
of business days and for usual seasonal changes, was 68 in April on the basis
of the 1923-1925 average as 100, compared with 55 in March and 60 in
February.
In comparison with a year ago the value of sales for April. according to
preliminary figures, was 9% smaller. In making the comparison with a
year ago, allowance should be made for the fact that the date of Easter,
which was very early last year (March 27) was late this year (April 16).
and that consequently this year sales during April included a much larger
part of Easter buying than they did last year. The aggregate for the first
four months of the year was 22% smaller than last year.
Number of
Jan. 1
Reporting
to
Stores.
April 30.*
.59.2
fIrtrnhinarl Inrlax
Two weeks ago, Fri., May 5_110.0
95.1
Month ago, April 19
85.0
Year ago. May 21
103.9
Sept. 6
1932High,
1
79.3
Low. Dec. 31
116.4
1933 High, May 17
78.7
Low, Feb. 4
April.'
18.5
18.1
22.6
27.0
53.1
53.0
63.3
a64.0
61.0
55.7
31.7
b36.1
72.1
75.3
--70.6
95.3
i
.
.
c115
40.0
42.0
Pig iron production
Steel ingot production
Freight car loadings
Electric power production
Bituminous coal production
Automobile production
Cotton consumption_
Wool consumption
Boot and shoe production
Zinc production
Revised Statement on Department Store Sales During
April Issued by Federal Reserve Board Shows
Increase Instead of Decrease as Compared with
March.
The Federal Reserve Board has issued the following statement, revising its previous report on department store sales
during April (noted in our issue of May 13, page 3242) showing an increase of more than estimated seasonal amount in
the sales, as compared with March, instead of a decrease
of less than the estimated seasonal amount:
Federal neserre Distret.
February.
March.
xboQ.
:o 63;e
April.
t2.34,1:3422t55
Moody's Daily Index of Staple Commodity Prices
Declines After Reaching New High for Year.
Basic commodity prices showed signs of resistance to
further advances during the week in review. Moody's
Index of Staple Commodity Prices reached a new high for
the year on Wednesday, the Index number of 116.4 representing an advance of nearly 48% from the low point of
Feb. 4. Declines in the Index on two successive days
followed and the net change for the week was a slight decline,
the first in eight weeks.
The chief factor in bringing about a new high for the
Index, as well as in limiting the decline for the week, was
a belated spurt in the prices of hogs, which had lagged
considerably behind other prices during recent weeks. Hides
were also strong, reaching the highest price in almost two
years; while wool tops advanced on every day but one to
hew record highs since trading began two years ago. However, with the exception of steel scrap, copper and lead,
which were unchanged, all the other commodities contained
in the Index were lower, cotton and wheat showing the most
important declines, whereas corn, rubber, coffee, silk, sugar,
silver and cocoa all showed smaller losses.
The movement of the Index for each day of the past week,
with comparisons, is shown below:
each of which is
Table I gives the combined index and its components,
trend.
adjusted for seasonal variation and where necessary for long-time
by months
for the last three months. Table II gives the combined index
back to the beginning of 1928.
1933.
January
February
March
April
May
June
July
August
September
October
November
Tlanarnhar
57.2
56.4
.52.7
*56.2
1932.
C.,.C..CA MO I
Z,
,
,,,
t.V.C5 Z,,
0000CANNI•40.1.2t4 1
.N:40o
It was 53 to 75 degrees here to-day and clear. Thundershowers are predicted for to-morrow. Overnight Boston
had 56 to 78 degrees; Buffalo, 58 to 72; Portland, Me.,54 to
70; Chicago, 66 to 76; Cinoinnati, 58 to 78; Cleveland,62 to
76; Milwaukee, 56 to 66; Kansas City, 70 to 86; St. Louis,
64 to 82; Los Angeles, 52 to 70; Portland, Ore., 46 to 60;
San Francisco, 46 to 60, and Montreal, 60 to SO.
Fri. --May 12
Sat._May 13_
Mon. May 15
Tues. May 16
Wed. May 17
Thurs. May 18
May 19
Fri.
3425
Financial Chronicle
Volume 136
1931.
1930.
1929.
1928.
74.4
76.2
78.0
80.8
78.1
76.5
78.2
73.5
70.8
66.3
65.1
115 5
95.0
94.2
91.2
95.0
90.0
89.0
86.4
83.1
82.4
79.5
76.1
7f1 1
105.5
106.1
104.3
108.8
110.1
108.9
109.9
108.1
107.3
105.7
96.9
92.1
98.0
99.7
99.4
99.9
101.3
98.7
100.5
102.1
102.4
105.0
103.7
102.0
*Subject to revision.
Sixth Consecutive Advance Noted in "Annalist" Weekly
Wholesale Price Index During Week Ended May 16
-April Indices of Domestic and Foreign Prices.
With a gain of 1.6 points for the week, the "Annalist"
Weekly Index of Wholesale Commodity Prices advanced to
90.9 on May 16. The "Annalist" further said:
Since April 4, when it stood at 81.7 and the present advance commenced,
on Feb.28
it has risen 9.2 points, while its gain from the post-war low of 79.7
textile groups
amounted to 11.2. The indices for the farm products and
index for
now stand at the highest levels since 1931. In terms of gold the
last week,
all commodities advanced for the second week. to 77.9 from 76.2
in foreign
and 75.0 two weeks ago, the gold value of the dollar (measured
exchange) rising slightly to $0.857 from $0.853.
COMMODITY
THE "ANNALIST" WEEKLY INDEX OF WHOLESALE
PRICES.
Unadjusted for Seasonal Variation (191100).
May 16 1933. May 9 1933. May 17 1932
Farm products
Food products
Textile products
Fuels
Metals
Building materials
Chemicals
Miscellaneous
•II netrnynruiff Igba ---------------
81.1
97.3
*81.8
96.9
96.1
106.7
95.5
74.1
a76.9
94.1
a80.6
102.6
95.8
106.6
a95.5
74.1
67.0
92.0
71.3
135.4
95.8
108.0
96.2
81.3
on 0
S9.3
88.8
*Provisional. a Revised.
factor in the
The final passage of the farm relief bill was the principal
applied In time to affect
rise, though it is unlikely that its provisions will be
-production feature
this year's crops materially. The defeat of the cost-of
the wheat crop has
of the bill was also a constructive feature. Although
industries conleather
suffered further damage, and the steel, textile and
still to be
tinued to report improvement, the advance in the index appears
consequent
largely due to the expectation of inflation in some form and the
speculative and investment buying.
1933.
DOMESTIC AND FOREIGN WHOLESALE PRICE INDICES-APRIL
(Measured in curtency of country, no adjustment for depreciation; 191100).
April
1933.
March
1933.
Feb.
1933.
April
1932.
Per Cent Change
Year,
Month
-7.7
+2.2
90.7
80.4
81.9
83.7
United States Amer.
-4.4
+1.5
106.8
99.3
100.6
102.1
Canada
-5.1
-0.4
102.4
98.9
97.6
97.2
United Kingdom
-9.6
-0.3
425
390
385
384
France a
-7.7
-0.3
98.4
91.2
91.1
590.8
Germany
*
*
319
293
Italy
+14.4
-0.7
116.4
135.8
134.1
5133.2
Japan
*Not available. a July 1914=100.0. 5 Provisional.
Indices used: U. S. A. "Annalist": Canada, Dominion Bureau of Statistics
United Kingdom, Board of Trade: France, Statististique Generale: Genmany,
Federal Statistical Office; Italy, Milan Chamber of Commerce; Japan, Bank of
Japan.
In foreign countries the trend of prices in April was generally downward,
except in Canada, which shared appreciably in the gains in this country.
The United Kingdom, France, Germany and Japan declined slightly, as
did Italy, although that country's average is not available. Weekly figures
for early May from the United Kingdom. Germany and Italy. however.
show rises, suggesting that the advances on this Continent may extend
later to Europe, as they did last summer.
Loading of Railroad Revenue Fright Still Small.
Loading of revenue freight for the week ended on May 6
totaled 523,819 cars, the car service division of the American
Railway Association announced on May 16. This was a
decrease of 11,857 cars below the preceding week, 10,132
cars under the same week in 1932 and 221,921 cars under
the same week in 1931. Details follow:
3426
Financial Chronicle
Miscellaneous freight loading for the week
of May 6 totaled 197,066 cars,
a decrease of 9.224 cars below the precedin
g week, but 632 cars above the
corresponding week in 1932.
It was, however, a decrease of 102,873 cars
under the same week in 1931.
Loading of merchandise less than carload
lot freight totaled 164,343 cars,
an increase of 2,224 cars above
the preceding week, but 20.784 cars below
the corresponding week last year
and 61,884 cars under the same week
two years ago.
Grain and grain products loading
for the week totaled 39,412 cars,
2,102 cars below the preceding week,
but 10,834 cars above the corresponding week last year and 4,159 cars above
the same week in 1931. In the
Western districts alone, grain and
grain products loading for the week ended
May 6 totaled 26,002 cars, an increase
of 7,887 cars above the same week
last year.
Forest products loading totaled 19,167
cars, 418 cars above the preceding week, but 255 cars under the same
week in 1932 and 13,662 cars
below the corresponding week in
1931.
Ore loading amounted to 5,766 cars, an increase
of 44 cars above the
week before, and 3,572 cars above
the corresponding week in 1932 but
5.027 cars below the same week in 1931.
Coal loading amounted to 76,665 cars,
a decrease of 630 cars under the
preceding week, 3,729 cars below the corresp
onding week in 1932, and
34.978 cars below the same week in 1931.
Coke loading amounted to 3,481 cars, 129
cars below the preceding
week, but 256 cars above the same week last
year. Compared with the
same week two years ago, it was a decrease
of 3.072 cars.
Live stock loading amounted to 17,919 Cars,
a decrease of 2,458 cars
below the preceding week, 658 cars below the
same week last year and
4.584 cars below the same week two years ago.
In the Western districts
alone, loading of live stock for the week ended
on May 6 totaled 14,408
Cars, a decrease of 476 cars compared with the
same week last year.
May 20 1933
All districts reported increases in the
total loading of all commodities
compared with the same week in 1932
except the Eastern, Allegheny and
Central Western, which reported reductio
ns. All districts reported
reductions compared with the same week in
1931.
Loading of revenue freight in 1933 compare
d with the two previous
years follows:
Four weeks in January
Four weeks in February
Four weeks In March
Five weeks In April
Week ended May 6
Total
1033.
1932.
1,910,496
1,957,981
1,841,202
2,504,745
523,819
2.266,771
2,243,221
2,280,837
2,774,134
533,951
2,873,211
2,834,119
2,936,928
3,757,863
745,740
8,738,243
10.098.914
13,147,861
1931.
The foregoing, as noted, covers total loadings by
the railroads of the United States for the week ended
May 6. In
the table below we undertake to show also the loadin
gs for
the separate roads and systems. It should be
understood,
however, that in this case the figures are a week
those of the general totals-that is, are for the week behind
ended
April 29. During the latter period a total of 30 roads
showed
increases over the corresponding week last year, the
most
important of which were the Atchison Topeka &
Santa Fe
Ry., the Chicago Milwaukee St. Paul & Pacific
Ry., the
Louisvitie & Nashville RR., the Illinois Central Syste
m, the
Norfolk & Western Ry. and the Missouri Pacific
RR.
REVENUE FREIGIIT LOADED AND RECEIVED FROM
CONNECTIONS (NUMBER OF CARS)-WEEK
ENDED APRIL 29.
1931.
1,762
2,715
7,204
701
2,261
9,727
642
2,117
3,093
7,665
711
2,437
10,878
625
2,015
3,939
10,755
918
3,349
14,216
755
25,012
27,526
36,947
3,975
7,717
10,166
260
1,445
6,189
1,532
17,819
1,628
294
256
6,478
9,876
12,093
276
1,870
8,928
1,520
18,009
2,121
389
345
9,019
13,026
16,233
345
2,563
11.105
1,631
27,174
2,038
614
432
51,281
61,905
84,170
452
1,194
7,589
24
283
258
1,328
3,371
6,328
2,680
3,977
4.283
3,224
1,075
5,356
2.638
598
1,220
7,557
41
252
226
1.702
2.754
6,155
3,772
4,283
4,495
3,725
824
5,034
2,050
636
2,014
10.410
59
483
324
2,015
5,090
9,146
4,446
5,667
6,628
5.327
1.616
6,921
3.238
44,060
44,688
64,020
Grand total Eastern District___
120,353
134.119
184,137
Allegheny DistrictBaltimore & Ohio
Bessemer & Lake Erie
Buffalo Creek & Gauley
Central RR. of New Jersey....
Cornwall
Cumberland & Pennsylvania...
Ligonier Valley
Long Island
Pennsylvania System
Reading Co
Union (Pittsburgh)
West Virginia Northern
Western Maryland
22,769
1,544
224
4,830
51
164
75
1,203
51,029
10,326
3,237
32
2.554
26,023
740
149
7.633
55
224
78
1,189
56,500
13,673
3,940
52
3,066
34,247
2.083
195
10.802
3
350
114
1,554
80,247
18,398
8.761
54
3,262
98,038
113,322
16,578
13.556
1,944
2,293
Total
Croup B:
Delaware & Hudson
Delaware Lackawanna & West.
Erie
Lehigh & Hudson River
Lehigh dr New England
Lehigh Valley
Montour
New York Central
New York Ontario & Western.
Pittsburgh & Shawmut
Pitts. Shawmut & Northern....
Total
Group C:
Ann Arbor
Chicago Ind. & Louisville
Cleve. Cin. Chic. & St. Louis._
Central Indiana
Detroit & Mackinac
Detroit & Toledo Shore LineDetroit Toledo dc Ironton
Grand Trunk Western
Michigan Central
Monongahela
New York Chicago & St. Louis_
Pere Marquette
Pittsburgh & Lake Erie
Pittsburgh & West Virginia...._
Wabash
Wheeling & Lake Erie
Total
Total
Pocahontas DistrictChesapeake & Oblo
Norfolk & Western
Norfolk & Portsmouth Belt Line
Virginian
Total
Southern DistrictCroup A:
Atlantic Coast Line
Clinchfield
Charleston & Western Carolina.
Durham & Southern
Gainesville & Midland
Norfolk Southern
Piedmont & Northern
Richmond Frederick. & Potom_
Seaboard Air Line
Southern System
Winston-Salem Southbound...
'l'otal
1933.
1932.
Croup B:
269
447 Alabama Tenn. & Northern.4.440
4,814 Atlanta Birmington & Coast-8,644
10,089 Atl. dr W.P.-West.RR.of Ala
1,993
2,130 Central of Georgia
2,176
2,685 Columbus & Greenville
9,810
11,749 Florida East Coast
843
1,146 Georgia
Georgia it Florida_ -.
28.175
33,060 Gulf Mobile dc Northern
Illinois Central System
Louisville & Nashville
Macon Dublin & Savannah...-.
Mississippi Central
6,465 Mobile & Ohio
5,644 Nashville Chat), & St. Louis12,545 New Orleans-Great Northern_
1,937 Tennessee Central
1,043
6,743
Total
30
26,851 Grand total Southern District2,273
43
238
Northwestern DistrictBelt Ry. of Chicago
55,863
62,812 Chicago & North Western
Chicago Great Western
Chic. Milw, St. Paul & Pacific.
Chic. St. Paul Minn.& Omaha.
841
895 Duluth Missabe & Northern...
1.606
1.583 Duluth South Shore & Atlantic_
8,849
8,734 Elgin Joliet & Eastern
40
79 Ft. Dodge Des M.dr Southern..
67
108 Great Northern
1,521
1,663 Green Bay & Western
643
889 Minneapolis & St. Louis
4,734
5,279 Minn. St. Paul & S. B. Marie_
6,704
7,291 Northern Pacific
188
216 Spokane Portland dc Seattle6.681
7,261
3.569
3,399
Total
3.662
4,120
667
644
6,478
6,785
Central Western District2.217
1,839 Atch. Top.& Santa Fe System_
Alton
48,462
50.785 Bingham & Garfield
Chicago Burlington & Quincy
132,505 146,657 Chicago Rock Island
& Pacific_
Chicago dc Eastern Illinois....
Colorado dr Southern
Denver & Rio Grande Western_
11,260
11.405 Denver dc Salt Lake
797
790 Fort Worth & Denver City....
- - Northwestern Pacific
9,176
810,i60 Peoria & Pekin Union
36
49 Southern Pacific
(Pacific)
16
10 St. Joseph & Grand
Island
5
19 Toledo Peoria & Western
2,223
3,286 Union Pacific System
29,872
32,231 Utah
13.324
14,432 Western Pacific
872
679
1
3.337
1
3,275
160,070
-
70,926
76,437
16,665
13,138
2,018
2,483
19,931
17,513
2,025
3,038
7,443
4,065
1,070
626
5,277
3,102
1.278
525
34,371
34.304
42,557
13,203
10,182
9.109
899
407
174
62
1.507
523
298
7,628
18,864
168
8,376
781
357
136
49
1,552
483
304
7,535
18,909
200
12,429
1,258
657
149
88
1,987
597
482
10,258
25,973
211
3,963
1,293
1,010
316
98
1,178
734
3,628
3,132
11.064
616
3.504
1.070
684
239
113
1,172
658
3,715
2,849
9,870
618
39,839
38,882
54.089
27,032
24.492
• Figures of preceding week. a Estimated. y Includes in Gulf Coast Lines.
Total Loads Received
from Connections.
1933.
1932.
1931.
208
681
764
3.630
194
1,664
864
286
780
16,693
13,972
118
155
1,881
3,221
575
330
197
604
671
3,701
217
909
780
286
747
16,580
13,763
114
121
2,157
2,975
525
398
1933.
1932.
Total
Southwestern DistrictAlton & Southern
Burlington-Rock Island
Fort Smith & Western
Gulf Coast Lines
yHouston & Brazos Valley
International-Great Northern_
Kansas Oklahoma & Gulf
Kansas City Southern
Louisiana & Arkansas
Litchfield & Madison
Midland Valley
Missouri & North Arkansas_
Missouri-Kansas-Texas Lines__
Missouri Pacific
Natchez & Southern
Quanah Acme & Pacific
St. Louis-San Francisco
St. Louis Southwestern
ySan Antonio Uvalde & Gulf..
Southern Pacific in Texas & La.
Texas & Pacific
Terminal RR. Assn. of St. Louis
Weatherford Min. Wells & N.W
Total
157
838
994
2,063
168
502
1,346
377
759
8,903
3,785
411
303
1,506
2,421
416
508
148
679
908
1,950
214
397
1,140
278
667
7,100
3,273
341
233
1,123
2,033
285
470
45.916
44,725
64,238
25,457
21,239
85,555
83,407
118,327
52.489
45,731
809
13,878
'2,328
17,114
3,835
2,788
299
3,621
301
7,731
526
1,575
4,217
7.052
907
1,176
14,199
2,454
16,207
3,050
411
343
3,206
309
6,794
499
1,787
3,940
7,660
1,146
1,250
21,519
3.055
23,224
4,504
2,186
1,357
5,923
360
10,399
668
2,683
5.678
9,395
1,224
w w
'07-i0k000w 000'0e.2
occ..
wwwwcww=.00
*.ww,w0wyww
co..o.m.
..
Eastern DistrictCroup A:
Bangor & Aroostook
Boston & Albany
Boston dc Maine
Central Vermont
Maine Central
New York N. H. & Hartford..
Rutland
1932.
Total Revenue
Freight Loaded.
Railroads.
,
1933.
Total Loads Received
from Connections.
NN
Wt.
...Ca
r.b.2
a
OCICCela.0024.W .
...W.
..WWW
00..00.000004.0,00
.W
Total Revenue
Freight Loaded.
Railroads.
1,304
6,986
2,080
5,831
3,105
63
356
3,127
115
1,992
391
1,308
1,935
2,301
792
67,379
63.181
93,425
32.374
31.684
19.132
3,172
171
13,741
11,905
2.204
759
1,426
152
1,194
413
102
12,960
306
436
10,778
201
1,045
17,931
3,066
154
14,068
11,977
2,087
894
1,558
146
1,092
456
174
14,277
241
416
11,233
242
1,496
24,505
3,699
241
19,509
16,926
3,057
1,118
2,077
263
1.053
709
173
19,448
317
279
14,598
271
1.796
4,630
1,363
28
5,453
6,118
1,720
620
1,665
5
866
183
82
2,882
390
930
5,683
5
1,139
4,661
1,509
15
4,872
5,800
1,637
566
1,908
12
576
214
63
3,455
239
646
6,334
3
1,373
80,097
81.508
110,039
33,762
33,883
135
164
128
2,860
167
119
162
3,105
1,638
133
1,396
1,042
99
500
72
4,301
12,001
39
75
7,050
1,970
2,678
343
147
819
--.
2,154
1,085
1,230
583
564
350
242
2,465
7.129
20
88
3.260
1,368
--- 2,699
3,472
1,889
37
2,205
343
108
941
3,809
76
1,500
1,237
109
465
120
4,810
12,420
50
122
7,669
2,096
- --6,204
3,869
1,967
73
287
182
177
x3,429
-- - 6,075
285
2,014
1,892
264
692
133
5,061
17,491
41
87
10,107
2,913
6,779
5.661
2,552
65
2-,390
648
1,243
876
321
543
229
2,725
6,525
15
113
2,910
1.192
49,883
44.356
32.622
31.089
5,i17
3,155
1.874
42
66.187
2,856
3,113
1,774
40
Wholesale Prices Increased Slightly During Week of
May 6, According to United States Department of
Labor.
The Bureau of Labor Statistics of the U. S. Department
of Labor announces that its index number of wholesale
prices for the week ended May 6 stands at 61.9, as compared with 61.5 for the week ended April 29, showing an
increase of approximately 0.7 of 1%. The Bureau continued:
These index numbers are derived from price quotations of 784 commodities, weighted according to the importance of each commodity and
based on average prices for the year 1926 as 100.0.
The accompany statement shows the index numbers of groups of commodities for the weeks ended April 8, 15, 22. 29, and May 6 1933:
INDEX NUMBERS OF WHOLESALE PRICES FOR WEEKS OF APRIL 8
15, 22, 29, AND MAY 8 1933 (1926=100.0).
Week EndedApril 8. Apr1115. Aprl122. April 29. Map 6.
60.3
44.5
55.7
68.3
50.9
62.6
76.9
70.4
71.2
72.2
57.9
60.1
44.0
55.3
68.5
50.9
82.9
76.7
69.9
71.3
72.3
57.6
All commodities
Farm products
Foods
Hides and leather products
Textile products
Fuel and lighting
Metals and metal products
Building materials
Chemicals and drugs
Housefurnishing goods
Miscellaneous
60.4
44.6
56.2
69.1
51.4
62.4
76.8
70.2
71.3
72.2
57.7
81.9
47.8
58.2
73.3
53.7
62.1
77.5
70.8
72.4
71.7
58.8
61.5
46.4
58.1
71.8
52.4
62.5
77.8
70.5
72.0
72.3
58.6
Commodities Continued Upward Advance During
of May 13 According to National Fertilizer
Week
Asso-
ciation.
The recent advance in commodity prices continued during
the latest week according to the index of the National
Fertilizer Association. When computed for the week ended
May 13, this index showed a gain of five points. During
the preceding week the index advanced seven points and two
weeks ago it advanced four points. The latest index number,
59.8 (the three-year average 1926-1928 equals 100), is
27 points higher than it was a month ago and is only slightly
lower than it was at this time last year. Several groups in the
index are higher than they were a year ago. The latest
index number is a new high for 1933. The Association also
noted the following:
During the latest week seven major groups advanced, four declined and
three showed no change. The advancing groups were grains, feeds and
livestock, textiles, fats and oils, foods, building materials, metals and
fertilizer materials. Large gains were shown for grains,feeds and livestock,
textiles, and fats and oils. The declining groups were fuel, miscellaneous
commodities and automobiles. The fuel group declined rather sharply
because of reduced prices for petroleum.
Sixty-four commodities advanced, the largest number in several weeks.
During the preceding week 51 commodities showed price gains. During the
latest week 10 commodities were lower compared with 11 price reductions
In the preceding week. Individual commodities that advanced included
cotton, cotton yarns, cottonseed oil, wool, lard, butter, flour, corn, wheat
rye, cattle, hogs, pig iron, copper, rosin, hides, rubber and sulphate of
ammonia. The outstanding advances were in cotton, lard, hogs and
grains. The declining commodities included silk, oranges, silver, camphor,
rubber tires and petroleum. The sharpest reductions occurred in the
prices for petroleum and rubber tires.
WEEKLY WHOLESALE PRICE INDEX-BASED ON 478 COMMODITY
PRICES (1926-1928=100).
Fee Cent
Each Group
Rears to the
Total Index.
23.2
16.0
12.8
10.1
8.5
6.7
6.6
6.2
4.0
3.8
1.0
.4
.4
.3
100.00
Group.
Foods
Fuel
Grains, feeds and livestock_ _
Textiles
Miscellaneous commodities
Automobiles
Building materials
Metals
House-furnishing goods
Fats and oils
Chemicals and drugs
Fertilizer materials
Mixed fertilizer
Agricultural implements
All groups combined
Latest
Week
Mau 13
1931.
Preceding
Week.
80.5
48.4
49.3
51.1
60.0
84.4
71.8
70.3
75.2
51.8
87.2
83.7
62.4
90.2
60.1
50.7
45.5
48.8
60.5
84.9
71.5
69.6
75.9
49.3
87.2
63.2
82.4
90.2
59.8
59.3
Month
Ago.
Year
Ago.
57.6
50.6
41.6
43.7
58.2
84.9
71.6
86.9
75.9
43.9
87.1
61.5
62.4
90.2
61.6
63.8
42.5
43.3
60.0
87.7
73.0
71.3
80.0
38.3
87.9
70.0
71.9
92.2
57.1
60.9
Production of Electricity for the Week Ended May 13
1933 Was 2.2% Over That for the Same Period
Last Year.
According to the Edison Electric Institute, the production
of electricity by the electric light and power industry of
the United States for the week ended May 13 1933 was
1,468,035,000 kwh., compared with 1,435,707,000 kwh. for
the week ended May 6 1933 and 1,436,928,000 kwh. for the
week ended May 14 1932. The percentage increase for the
week of May 13 1933 was 2.2% over the same period last
year, as against 0.5% for the preceding week over the week
ended May 7 1932. The Institute's report follows:
PER CENT CHANGES.
Week Ended
1Week Ended
Week Enaed
Week Ended
Male? Geographic
Regions. -May 131933, Matt 6 1933. APTIl 29 1933. April 22 1933.
Atlantic Seaboard- New England (alone).
Central Industrial... _
Pacific Coast
+0.5
+1.4
-7.2
+3.8
+2.5
+0.1
+1.1
-0.2
-3.5
--4.2
-1.3
-3.6
-6.4
Total United States-
+2.2
+0.5
--1.8
-2.6
3427
Financial Chronicle
Volume 136
+4.2
+7.7
-f2.9
Arranged in tabular form, the output in kilowatt hours of
the light and power companies for recent weeks and by
months since and including January 1930 is as follows:
Jan. 14
Jan. 21
Jan. 28
Feb. 4
Feb. 11
Feb. 18
Feb. 25
Mar. 4
Mar. 11
Mar. 18
Mar. 25
Apr. 1
Apr. 8
Apr. 15
Apr. 22
Apr. 29
May 6
May 13
May 20
May 27
June 3
IVeek of-
1933.
Week of-
1,495,116,000 Jan. 18
1,484,089,000 Jan. 23
1,489,636,000 Jan. 30
1,454,913,000 Feb. 6
1,482,509,000 Feb. 13
1,469,732,000 Feb. 20
1,425,511,000 Feb. 27
1,422,875,000 Mar, 5
1,390,607,000 Mar,12
1,375,207,000 Mar. 19
1,409,655,000 mar. 26
1,402,142,000 Apr. 2
1,399,367,000 Apr. 9
1,409,603,000 Apr. 16
1,431,095,000 Apr. 23
1,427,960,000 Apr. 30
1,435,707,000 May 7
1,468,035,000 May 14
May 21
May 28
June 4
1932.
1931.
Week of-
1,602,482,000 Jan. 17
1,598,201,000 Jan. 24
1,588,967.000 Jan. 31
1,588,853,000 Feb. 7
1,578,817,000 Feb. 14
1,545,459,000 Feb. 21
1,512,158,000 Feb. 28
1,519,679,000 Mar. 7
1,538,452,000 Mar. 14
1,537,747,000 Mar.21
1,514,553,000 Mar. 28
1,480,208,000 Apr. 4
1,485,076,000 Apr. 11
1,480,738,000 Apr. 18
1,489,810,000 Apr. 25
1,454,505,000 May 2
1,429,032,000 May 9
1,436,928,000 May 16
1,435,731,000 May 23
1,425,151,000 May 30
1,381,452,000 June 6
1933
Under
1932.
1,716,822,000 6.7%
1,712,786,000 7.1%
1,887,160,000 7.5%
1,679,016,000 8.4%
1,683,712,000 6.1%
1.680,029,000 4.9%
1,633,353.000 5.7%
1,684,125,000 8.4%
1,676,422,000 9.6%
1,682,437,000 10.6%
1,689.407.000 6.9%
1,679,764,000 5.3%
1,647,078,000 4.5%
1,641,253,000 4.8%
1,875,570,000 2.6%
1,644,437,000 1.8%
1,637,298,000 a0.5%
1,654,303.000 a2.2%
1,844,783,000
1,801,833,000
1.593,682.000
a Increase over 1932
DATA FOR RECENT MONTHS.
Month of-
1933.
1932,
1931,
1930.
1933
Under
1932.
7.6%
January..._ _ 6,480,897,000 7,011,736,000 7,43.5,782.000 8,021,749,000 10.1%
7,066,788,000
February ___ *5,835.263,000 8,494,091,000 6,878,915,000 7,580,335,000
8.7%
6,182,281,000 6,771,684,000 7,370,687,000
March
6,294,302,000 7,184,514,000 7,416,191,000
April
____
6,219,554,000 7,180,210,000 7,494,807,000
May
_6,130,077,000 7,070,729,000 7,239.697.000
June
-7.363,730,000
7,286,578,000
6,112,175,000
July
_6,310,687,000 7,166,086,000 7,391,196,000
August
_6,317.733,000 7,099,421.000 7,337,106,000
September _
-7,718,787.000
7,331,380,000
8,633,865,000
October
6,507,804,000 8,971,844,000 7,270,112,000 .._
November _
6,638,424,000 7,288,025,000 7,566,601,000
December-__
--__
77,442,112,000 88,063,969.000 89,467,099,000
Total
• February 1933 has one less working day than February 1932 (Leap Year).
approxicovering
reports
on
Note.-The monthly figures shown above are based
mately 92% of the electric light and power industry and the weekly figures are
based on about 70%.
Continued Gain in Proportion of Goods Sold for Cash
Shown in Retail Credit Survey of United States
Department of Commerce.
Continuance of recent trends in retail credit extension,
with a larger portion of goods being sold for cash, customers
taking a little longer to pay their bills, and bad debt losses
Increasing slightly, are recorded in the United States Department of Commerce's "Retail Credit Survey, July-December
1932," made public May 6. An announcement with regard
to the "Survey," issued by the Commerce Department on
May 6, said:
During the last six months of 1932, the report shows, 47.6% of the
sales of reporting stores were made for cash, compared with 45.8% in the
corresponding period of 1931. The proportion of goods sold for cash by
retailers extending credit has climbed slowly but steadily from 41.3% for
the first six months of 1929, when this survey was first conducted by the
Department, to the present figure of 47.6%. Open credit sales were 42.5%
of total business in the 1932 period and 42.8% in 1931, while instalment
sales were only 9.9% of the total last year and 11.4% in 1931.
Customers took an average of 86 days to pay their open-account obligations to retail stores in the latter half of 1932, six days longer than they
did in 1981. Instalment accounts were outstanding seven months and 21
days last year compared with six months and 23 days the year before.
Bad-debt losses amounted to approximately 1% of the total sales of the
reporting concerns in 1932, compared with a little less than 0.7% in 1931,
the survey reveals. Of the sales made on regular monthly charge accounts,
however, 1.5% were lost on bad debts in 1932, compared with 0.9% in 1931.
The average bad-debt loss on instalment accounts of all stores reporting this
figure is shown to have been 4.3% last year and 3% the year before.
These figures were gathered in the Commerce Department's sixth semiannual "Retail Credit Survey," made at the request and with the co-operation
of the National Retell Credit Association and its numerous affiliated associations. They are based on reports from 415 retail establishments in principal
cities throughout the country, in the following eight lines of trade: Department, furniture, jewelry, men's clothing, shoe, women's specialty, electrical
appliance, and automobile accessory stores.
The purpose of the credit survey, as stated in the report, is to promote
sound credit management through the building up of a fund of reliable
factual information which may be used by retailers as a guide in their credit
operations.
An encouraging trend revealed by this latest survey is a tendency for
consumers to return less of the merchandise which they buy. Returns and
allowances (including repossessions on instalment sales) were 9.1% of total
gross sales in the last six months of 1932, and 9.4% in 1931. The decrease
in returns and allowances in department stores was from 9.9% of sales In
1931 to 9.5% in 1932. Decreases were also recorded in furniture, men's
clothing, shoe, and women's specialty stores, while increases were reported
for jewelry, electrical appliances, and automobile accessory stores.
Retail sales of $509,125,548 by the 415 reporting retail establishments
represented a decline in dollar volume for July-December 1932 of 23.9%
from those of the same period in 1931. It is estimated that retail prices
fell 12 to 14% during 1932, indicating that dollar sales declined more
than the general price level, it is pointed out.
The Department has announced that copies of the "Retail
Credit Survey, July-December 1932," containing summary
tables and separate reports for each of the eight lines of
trade. may be obtained for 5c. each from branch offices of
the Bureau of Foreign and Domestic Commerce, located in
principal cities, or from the Superintendent of Documents,
Government Printing Office, Washington, D. C.
3428
Financial Chronicle
Definite Upturn in National Sales and Payments
Seen by National Association of Credit Men.
Definite improvement in both wholesale sales and collections throughout the country is noted in the May survey released by the National Association of Credit Men and published in its official magazine, "Credit and Financial Management" The survey is based on monthly reports from
correspondents in 104 of the major markets of the country,
Including every State. It reveals that "good" collections
were in evidence in April in San Diego, Cal.; Cedar Rapids,
Iowa; Springfield, Mass., and Detroit, Mich. San Diego is
also represented in the "good" sales column. Cedar Rapids
is the sole city reporting to have held its position in the
"good" column from the April survey.
'Contrasting the May and April surveys brings out the
especially strong improvement, 51% of the reports in May
noting "fair" conditions in sales as compared with 33% in
April. In collections the May percentage reaches 41% in
the "fair" column compared with 19% in April. Supplementary reports reveal comments as follows:
California.-San Diego reports sales and collections improving
considerably, but Oakland finds the failure of one bank to
reopen affecting conditions.
Indiana.-Terre Haute lin& business much better and believes
the return
of beer is responsible for this.
Kentucky.-Louisville notes improvement since the
bank moratorium.
Massachusetts.-Springfield reports "a period of confidence
has set in
since the election-this from a hard-boiled Republican."
Analysis of Imports and Exports of the United States
in March.
The Department.of Commerce at Washington on April 25
issued its analysis of the foreign trade of the United States
in March and the three months ended with March of 1932
and 1932. This statement indicates how much of the merchandise imports and exports consisted of crude or of partly
or wholly manufactured products. The following is the
report in full:
ANALYSIS BY ECONOMIC GROUPS OF DOMESTIC EXPORTS
FROM AND
IMPORTS INTO THE UNITED STATES FOR THE MONTH
OF
MARCH 1933.
(Value in 1.000 Dollars.)
Month of March.
1932.
Three Months Ended March
1933.
1932.
1933.
Per
Per
Value. Cent. Value. Cent.
Vatue.
50.400 33.2 29,359 27.6
8.510 5.6 3,524 3.3
13,213 8.7 9,873 9.3
18,296 12.1 16,507 15.5
61,348 404 47,047 44.3
152,777 34.0
25.197 5.6
42,941 9.5
55,443 12.3
173,373 38.6
103,453 31.9
11,431 3.5
30,981 9.5
45,585 14.1
132,868 41.0
Total domes. expts_ 151,776 100.0 106,310 100.0
449,730 100.0
324,298 100.0
Crude materials
Crude foodstuffsManufac'd foodstuffs_
Semi-manufactures-Finished manufactures
Crude materials
Crude foodstuffe..
Manufac'd foodstuffs_
Semi-manufactures_ _ _
Finished manufactures
Total Imports
36,024
24,870
17.485
20,02/
32.789
275
190
13.3
/5.3
24.9
23,633
18.411
15,145
14,751
22,924
24.9
19.4
16.0
15.5
24.2
131,189 100.0 94,864 100.0
111,456
71,155
47,276
70,710
97,091
Per
Cent.
28.0
17.9
11.0
17.8
24.4
397,687 100.0
Value.
71,898
54,204
40,090
44,514
63,914
Per
Cent.
26.2
19.7
14.6
16.2
23.3
274.620 100.0
Mercantile Failures During April.
The record of business failures for April this year is greatly
improved over that of the first two months of 1932, as well
as for April 1932. For the month just closed, Dun & Bradstreet, Inc., report 1,921 business defaults in the United
States, against 2,816 in April 1932 and 2,383 in that month
two years ago. Liabilities, too, were very much less this
year. The total for the month of April was $51,097,384,
against $101,068,693 for April 1932. The April figures are
printed below, separated by leading trade classifications,
and accompanying them the report for both preceding years
as well as the monthly record for the year to date:
Number.
April.
Retail
Wholesale
1933.
1932.
FAILURES BY FEDERAL RESERVE DISTRICTS-APRIL.
Number.
Liabilities,
Districts.
1933.
1932.
1931.
Boston (1)
New Yorx (2)
Philadelphia (3)Cleveland (4)
Richmond (5)__.
Atlanta(6)
Chicago (7)
St. Louis (8)
Minneapolis(9)- Kansas City (10)
Dallas (11)
San Francisco (12)
196
475
118
182
98
73
258
68
64
121
65
203
265
707
173
212
143
123
432
151
65
140
82
323
197
473
176
166
156
121
339
153
99
120
85
298
United States_
1,921
2,816
2,383
1933.
$5,602,331
16,493,266
5,081.377
6,008,397
1,449,006
1,401,400
7,982,100
996,043
578,051
1,479,485
852,051
3,173.877
1932.
$6,383,206
30.903,154
10,568,121
8,027,465
8,036,214
2,080,171
14,821,486
5,599,920
1,045,612
4.170,787
1,732,916
7,699,641
1931.
$4,720,057
12,189,594
3,897,348
4,647,834
3,873.402
2,117,635
7,242,725
2,916,962.
1,966.076
1,284,051
1.650,741
4,361,710.
$51,097,384 5101,068,693 $50,868,133
Labor Federation Review Notes Signs of Business
Improvement - •Holds Revival of Confidence
Generated Upturn in Several Lines-Would Balance Inflation by Advance in Wage Level.
A combination of favorable influences, generated by a.
revival of confidence, has acted to "put several hundred
thousand men back to work," the American Federation or
Labor remarked on May 7 in its monthly survey of business
for April. The favorable factors noted included marked
increases in steel output, automobile production, and the
level of commodity prices. The Federation warned, however, that after the spring season was over it was probable
that business would continue downward unless government measures turn the tide. Discussing inflationary
proposals, the survey said that by whatever method prices
are raised purchasing power will be relatively reduced unless
provision is made to increase wages proportionately. The
Federation said:
The danger of inflation is that it may create an unbalance
of economic
forces and get out of control. Assuring increases in workers'
buying proportionate to increases in prices and productivity would
provide a strong
balancing force.
The Federation asserted that a fundamental cause of the
collapse of the gold standard was the world shortage of gold,
and it declared that "nations must choose between falling
prices, accompanied by increasing depression and unemployment, or a lower gold value, for their currencies. The
Federation further observed:
Financial experts point out that the gold, or gold and
silver value of
currency, can be adjusted to the price level and prices can
thus be kept
relatively stable. This method has been used with success
in Sweden.
It could be adopted by other nations. To guard against
price changes
would benefit wage-earners the world over. Experts
discussing stabilization of the dollar and pound propose fixing these values*
the dollar between
80 cents and $1; the pound at $3 50 (England's figure) or
$4 (America's
figure).
The Federation said that recovery also involves the
problems of disarmament and removal of trade barriers.
The World Monetary and Economic Conference, it added,
is "a new approach to joint action to international agreement after the nations for three years tried to solve world
problems by individual action."
Liabilities.
1931.
1,224
128
1933.
1932.
1931.
$22,129,899
3,824,135
Total trading-- 1,352
Manufacturing _ _
422
Agents & brokers
147
2,006
641
169
1,710
515
158
$25,954,034 $41,736,272 326,386,171
18,736,800 43,138.172 18,719,144
6,40(1,550 16,194,249
5,762,820
Total April
1,921
March
1,948
February _ _ 2,378
January
2,919
2,816
2,951
2,732
3,458
2,383
2,347
2,563
3,316
$51,097,384 $101,068,693 $50,808,135
48,500,212 93,760.311 60,386,550
65,576,068 84,900,106 59,607.612
70,100,602 96,860,205 94,608,212
The comparison by Federal Reserve districts shows a
marked betterment for each district. The New York and
Chicago districts continue to lead in the number of defaults
and the total of indebtedness, as they do in each month.
There was, however, a heavy reduction in both of the leading divisions in the number of failures and the amount of
liabilities for April this year.
May 20 1933
In New England, insolvencies in April were very much
below those of April last year, and there was some reduction
in the indebtedness shown. Owing to some heavy manufacturing defaults in that section, the amount involved this
year was rather larger than it would have been otherwise.
The Philadelphia and Cleveland districts both show a reduction in the number of business defaults in April this year,
and a somewhat smaller amount as to the liabilities. Losses,
however, for the Fourth District were above those of most
of the other sections of the country.
The South Atlantic States make a particularly good showing, especially those in the Fifth Federal Reserve District.
The St. Louis and the Dallas districts, which in the main
complete the sections covered by the South, both make exceptionally good reports.
Valuation of Construction Contracts Awarded as
Compiled by F. W. Dodge Corp. Shows
5334%
Decline for April.
The valuation of construction contracts awarded in the
37 States east of the Rocky Mountains in the month of
April 1933 was $65,131,800 less than in April 1932, the
figure for April of this year being $56,573,000, against
$121,704,800 in the same month of last year, a decline of
533'% as compared with a decline of only 404% in March
of 1933 in comparison with March of 1932. For the first
four months of the year the decline from 1932 was $155,183,700.
Residential building contracts awarded during April showed an expansion
of almost 20% as contrasted with the record for the preceding month
according to F. W. Dodge Corp. This gain is of large significance when
contrasted with the fact that for total construction awards, Inclusive of
residential, a decline of almost 6% occurred between the two months.
Financial Chronicle
Volume 136
For residential building April contracts amounted to $19,143.600 as
compared with $16,021,000 for March and $28,894,700 for April of last
year. Although the contract total for residential building was only about
two-thirds as large as that of a year ago, singularly this class of building
made the best showing as against April 1932.
For non-residential building April contracts totaled $23,806,700. as compared with $26,359,100 for March and $45,515,000 for April 1932.
For public works the April total was $11,232,500, as against $15.079.400
for March and $42.384,200 for April of last year. It is probable that for
this latter class of construction some improvement may occur later in the
year as a result of governmental work to bejaunched under authority likely
to be granted in Congress.
For public utilities the April contract total was $2,390,200. as compared
with $2,499,000 in March and $4,910,900 for April of last year.
April construction awards showed gains over March in the New England,
Up-State New York, Middle Atlantic and the Central Northwest districts:
the remaining nine territories reported losses. All districts showed declines
from April 1932.
April residential building awards showed gains over March in the New
England, Metropolitan New York, Up-State New York, Middle Atlantic,
Pittsburgh, Southeast, Chicago, Central Northwest, Kansas City and
Texas territories; declines were shown only in the Southern Michigan, St.
Louis and New Orleans territories. Losses from a year ago were general.
Contemplated construction reported during April for the 37 eastern
States as a whole totaled $132,566,200. as compared with $144,768,200 in
March and $152,551,500 for April of last year. Gains in contemplated
construction over March reports were recorded in the Pittsburgh Southeastern, Southern Michigan, New Orleans and Texas territories.
CONSTRUCTION CONTRACTS AWARDED-37 STATES EAST OF THE
ROCKY MOUNTAINS.
New Floor
No. of
Projects. Space (Sq. Ft.).
loath of April1933-Residential building
Non-residential building
Public works and utilities
Total construction
1932-Residential building
Non-residential building
Public works and utilities
Total construction
First Four m0uth,1933-Residential building
Non-residential building
Public works and utilitlos.......-
Valuation.
4,034
2,535
885
5,813,900
4.972,000
84,500
519.143,600
23,806,700
13,622,700
7,254
10,870,400
556,573,000
4,018
2,179
1,458
7,174,200
8,501,000
211,400
28,894,700
45,515,000
47,295,100
7,653
13,886,600
5121,704,800
10,912
7,787
2,542
16,896,100
18,517.800
1,181.800
558,920,800
102,567,800
91,111,200
Total construction
21,241
36,595,500
5252,599,800
1932-Residential building
Non-residential building
Public works and utilities.--
13,247
7,488
3,431
28,690,000
28,138,000
884,600
3114,024,900
164,272,800
129,485,800
Total construction
24,166
55,710,600
5407,783,500
NEW CONTEMPLATED WORK REPORTED-37 STATES EAST OF THE
ROCKY MOUNTAINS.
1933.
No. of
Projects.
Month of AprilResidential building
Non-residential building
Public works and utilities
Valuation.
1932.
No. of
Protects.
Valttadon.
4.607
3,212
1,049
826,874,000
64,801,900
41,090,300
4,825
2,886
1,530
537,853.300
55,058,100
59.640.100
8,868
5132,586,200
9,041
5152,551.500
First Four MonthsResidential building
13,699
Non-residential building_
10.631
Public works and utilities._ 4.879
$101,825,000
202,884,300
188,774,300
16,408
10,338
5,840
$178,449,700
231,402,000
298,911,500
$493,483,600
32,676
8706.763.200
Total construction
Total construction
29,009
Larger Than Seasonal Increase Noted in Industrial
Operations and General Business Conditions in
Cleveland Federal Reserve District During First
Three Weeks in April-Tire and Rubber Industry
Reviewed.
"A spurt in industrial operations and general business
developed in the Fourth (Cleveland) District and most
parts of the country in the first three weeks of April at a
greater than seasonal rate," states the Cleveland Federal
Reserve Bank. "At the end of that time," the Bank continues, "the advance had been extensive enough so that the
drop in operations in March at the time of the bank holiday
was more than overcome. Factors contributing to the rise
were numerous and varied." In its May 1 "Monthly Business
Review" the Bank adds.
The recent advance in the combined commodity price index has been
very moderate compared with the drop in the past four years. judging by
the Bureau of Labor's compilation which is shown on the chart. [This we
omit.-Ed.] But the upward movement in some of the various groups has
been quite sharp. Grain prices have risen sensationally, thus causing the
index of farm prices to advance sharply from the low level touched earlier
this year. Food prices also have improved and prices of other raw materials
including nonferrous metals and textiles have been advanced.
The failure of some banking institutions to re-open as yet was a retarding
factor to several communities, particularly Cleveland and northern industrial towns, but in the main the situation has been met with considerable
fortitude.
While no information regarding employment in April is yet available,
reports Indicate a decided improvement in most lines in that month from
the low levels of March, only part of which was seasonal.
The most important industry in this District was the one which showed
greatest improvement following the bank holiday. Steel operations about
doubled in the six latest weeks and production at some local steel centres
was at a rate considerably above the average for the entire country. Increased automobile parts' and materials' orders, some demand for pipe
and an expansion in miscellaneous steel requirements were responsible for
3429
the rise in output. Prices of raw materials have increased slightly, but
finished goods' prices remain firm.
Tire demand improved in April and operations at local factories were
speeded up. Sale of glassware was much improved, though demand for
plate glass was limited except from the automobile industry. Paint
sales were larger in April than in March and demand for boxboard and
containers increased.
Shoe production in March was 22% ahead of last year and was greater
than in any corresponding month since 1927. In the first quarter output
was up 13% from 1932.
The number of automobiles manufactured in March exceeded output in
the same month last year, the first time since December 1930, and a further
Increase was indicated in April by the weekly production estimates.
The agricultural situation, so far as this District is concerned, was
somewhat brighter in late April in view of the rise in grain prices. The
April 1 condition of winter wheat in this District was about equal to the
average of past years, whereas in the entire country in was the lowest
on record. Because of an increase in acreage sown, the Fourth District
wheat crop is expected to be about as large as was harvested in 1932.
Regarding wholesale and retail trade conditions in the
Fourth District the Bank reported as follows.
Retail.
Several factors combined in March to reduce retail trade, as reflected
in department store sales throughout the Fourth District, to the lowest
levels on record. The banking holiday caused a virtual cessation in
buying for a short time generally and the fact that banks in some 00131munities have not yet been permitted to reopen was a retarding factor in
a few sections. The lateness of Easter was another factor of importance
which distorts the comparison of dollar sales this year with the same month
of 1932. Last year Easter was March 27 so that all seasonal buying which
usually develops prior to that holiday occurred in that month. This
year with Easter coming in mid-April, much of the seasonal purchases
occurred In April, particularly in view of the unsettled conditions prevailing
in March.
The decline in prices also was a factor responsible for part of the drop
in the dollar volume. According to Fairchild's index. department store
retail prices on April 1 were 12% below a year ago, and only 70% of what
they were in January 1931. The drop in March, however, was one of
the smallest recorded in the past three years, and several items showed
slight increases.
As a result of the foregoing the dollar value of sales in March was 32.5%
below the same month of 1932, and was only 41.6% of the 1923-25 monthly
average. Allowing for seasonal variations and changes in. the Easter
date, the adjusted index was 46.7%, a reduction of about24% from last
year. According to preliminary reports retail trade improved considerably
in April. Instalment buying increased in March, and, as a percentage
of total sales, was greater than a year ago. Regular charge sales in relation to total sales were smaller than in March 1932.
The dollar value of stocks at department stores increased less than
seasonally in March and the adjusted index as of March 31 was 50.5%
of the 1923-2.5 monthly average, a drop of about 4% from February and
of 26% from a year ago.
Collections declined in March and amounted to only 25.7% of the value
of accounts receivable at the beginning of the month. The decline occurred
largely in collections on regular 30-day accounts.
Wholesale.
Sales of three reporting wholesale lines were larger in March than in
February, but excluding grocery sales, the increase was less than seasonal.
Conditions in all wholesale lines were very much depressed generally and
there was little indication of any stocking-up in March. Sales of all
reporting firms in March were only 45% of the 1923-25 monthly average
and were about 22% below the same month of 1932.
As to the tire and rubber industry the Bank said.:
According to reports, tire production in March was about 28% below
output in the same month of 1932, but most of the reduction occurred in
the first three weeks of the month,for following March 20. when Cr,prices
were again reduced, the volume of sales increased sharply and schedules
were expanded. In the first half of April sales were reported to be somewhat larger than a year ago.
Accompanying the price reduction, most producers stopped making their
lowest grade tires so that tire inventories of both dealer and manufacturer
can now be reduced further. It is no longer necessary for dealers to carry
tires of four or more grades to meet adequately retail demand.
As a result of the larger number of sales in April, production schedules
were increased and the industry as a whole in the third week of the month
was operating five days a week. Employment in March was 58% of
the 1926 average, a drop of 2% from February, and was 12% below a
year ago. In the preceding five years there was little change in employment in the rubber industry from February to March.
Final February figures of the Rubber Manufacturers' Association reveal that shipments in that month were down 10% from the same period
of 1932 and were slightly under production. Output, however. was
39.6% below a year ago, but was up 3.6% compared with January. Manufacturers' stocks on March 1 were about 20% smaller than a year ago.
but were up 2% in the month.
Crude rubber consumption in the entire country in March was only
18,047 tons, the lowest since 1922. This was a drop of 16% from February
and of 35% from March last year. in the first quarter consumption was
down 27% from 1932. Imports of crude rubber in March were 34% below
a year ago, but at 27,879 tons, were up 48% from February. As a result
of these changes rubber stocks increased 2% in the period and were 17%
larger than on March 31 1932.
Rubber prices in April advanced to the highest levels since last autumn.
At 4U cents a pound, ribbed smoked sheets were materially above a year
ago when they were quoted at less than 3 cents a pound. The rise continued in the latest month despite the unfavorable crude rubber statistiCs-40Business and Agricultural Conditions in Minneapolis
Federal Reserve
District-Minneapolis Reserve
Bank Finds Volume of Business Affected by Higher
Prices for Farm Products.
"Higher prices for farm products had a stimulating effect
on the volume of business ia the Ninth (Minneapolis) District during April," according to the Federal Reserve Banv
of that place. "The country check clearings index reached
the highest point since the fall of 1931," continues the Bank
which also states that "marketings of grain in April were
larger than in March and much larger than in the same month
Financial Chronicle
3430
last year, bread wheat marketings being five times as large,
durum wheat three and one-half times as large and rye nearly
three times as large as in April 1932." In its preliminary
summary of conditions in the Ninth District issued May 18,
the Bank continues:
Increases in April over the corresponding period of the preceding year
occurred in carloadings of coal, coke and forest products, building permits,
flour and linseed products shipments and marketings of cattle and sheep.
Decreases from last year's April volume occurred in carloadings of ore,
miscellaneous merchandise and 1.c.I. commodities, building contracts and
receipts of calves and hogs. Department store sales were only 6% smaller
In April than in April last year, whereas March sales were 23% smaller,
February sales were 22% smaller and January sales were 21% smaller
than sales in the corresponding months of 1932. Only a portion of the
Improvement in trade shown in April was due to the later date of Easter.
Our estimates of cash income to the Northwest from the marketing of
seven important farm products were 8% larger in April than in the same
month last year. This is the first time since August 1929 that farm income
In any month has exceeded the total for the same month in the preceding
Year. The increase in farm income was due to rising farm product prices
and to increased marketings of grains. The stated percentage of increase
in farm income under-estimates the effect of higher prices on the farmer's
Purchasing power and debt-paying power because prices at the farm have
risen more in percentage than prices at terminal markets have advanced.
Prices of hogs, ewes, butter and eggs were higher in April than a year ago.
Prices of grains continued to advance in the early part of May.
ESTIMATED VALUE OF IMPORTANT FARM PRODUCTS MARKETED
IN THE NINTH FEDERAL RESERVE DISTRICT
Per cent
Apr. 1933.
April 1932.
April 1933.
of Apr.1932.
Bread wheat
Durum wheat
Rye
Flax
Potatoes
Dairy products
Hogs
Totx1 nt fwvPn items
$5,276,000
959,000
306,000
238,000
708,000
7,612,000
4,183,000
$1,018,000
284,000
113,000
225,000
1,122,000
9,788,000
5,290,000
518
338
271
106
63
78
79
$19282000
$17,840,000
108
Volume of Business in Richmond Federal Reserve
District from Middle of March to About Middle of
April Nearly Same as Before Bank Holiday—.
Seasonal Increases Indicated in Some Lines.
The Federal Reserve Bank of Richmond reports that "the
banking holiday retarded business in the Fifth (Richmond)
Federal Reserve District during the first half of March, but
since that time available reports indicate that business has
been in about the same volume as in the weeks preceding the
banking holiday, with indications of seasonal increases in
some lines." In its April 30 "Monthly Review," compiled
April 21, the Bank also notes:
There were marked changes in the statements Of condition of the Federal
Reserve Bank of Richmond and of reporting member banks between March 16
and April 15. About half of the large volume of rediscounts held by the
Reserve bank when the banking holiday ended has been paid off by borrowing banks, and the circulation of Federal Reserve notes has declined materially. Member banks, finding no unusual demand for currency when they
reopened, have reduced their cash in vaults, lowered their reserve balances
at the Reserve bank, increased their investments In securities, and reduced
their borrowing at the Reserve bank. Their deposits, both demand and
time, have advanced moderately, although they have not regained all the
deposits which were withdrawn during the weeks preceding the banking
holiday. Debits to individual accounts figures during the first four weeks
after the bank holiday were 13.9% below debits In the corresponding four
weeks last year. The commercial failure record in the Fifth District in
March was better than the record for any month for two years, and was
the best record for March since 1920. The district figures were better than
the national figures in both number of insolvencies and in aggregate liabilities involved. There was no improvement in employment conditions between
the middle of March and the middle of April except for some additional
spring work such as painting, &c., and that was probably not up to the
usual level in amount. Coal production in March declined materially in corn.
parison with production in both February 1933 and March 1932, but West
Virginia continued to lead the country in output. Textile mills in the
Fifth District used less cotton per day than in February, but cotton consumption in the Carolinas and Virginia in March exceeded consumption in
March 1932, and made up a larger percentage of United States consumption
than the cotton used in the same month last year. South Carolina led all
States in average hours at operation per spindle in place during March.
Spot cotton prices increased during March and the first three weeks of
April. Retail trade, as reflected in department store sales in March, averaged 29.2% less in dollar amount than trade in Marcia last year, but in
view of the banking holiday this year, which greatly retarded cash sales,
and the occurrence of Easter in March last year, this year's record is on the
whole favorable. As in recent months, wholesale trade in March in five
representative lines was in less volume than in the corresponding month
of the preceding year, but showed a seasonal increase over the volume of
trade in February this year. Collections were slower in both retail and
wholesale establishments in March 1933 than in March 1932, chiefly due
to the effects of the banking holiday and the freezing of funds in banks which
were unable to reopen. Prospects for agricultural production are better at
this time than they were in April last year, and surplus stocks of some farm
crops have been reduced. One unfavorable element is a material increase in
tobacco acreage which farmers intend to set out this year, but in some sections
of the Fifth District tobacco plants have been attacked by blue mold, which
may prevent the production of too large a crop.
As to wholesale and retail trade conditions in the Richmond Reserve District, the Bank said:
Retail.
Department store sales in 32 Fifth District stores in March 1933 averaged
29.2% less than sales in March 1932, a very satisfactory comparison in view
of the banking holiday this year and the occurrence of Easter in March last
year. Among the individual cities from which three or more stores reported,
Washington, with a decrease of 26.1% in sales, made the best record for the
May 20 1933
month. In total sales during the first three months of 1933, the 32 stores
averaged a decrease of 24.4% in comparison with sales in the first quarter
of 1932, Washington again leading with a decline of 21.9%.
Stocks in the reporting stores increased seasonally during March, rising
by 2.8% over those on hand at the end of February, but on March 31 this
year stocks averaged 20.0% less than stocks on hand a year earlier. Part
of this decline was due to price changes during the year. The reporting
stores turned their stock an average of .279 times during March, and between
Jan. 1 and March 31 stock was turned .757 times, both of these averages
being lower than those for the corresponding periods in 1932.
The percentage of collections in March 1933 to total accounts receivable
on March 1 was materially lower than the percentage for March 1932, a
natural result of the banking holiday which tied up all funds for more than a
week and some funds indefinitely. Richmond reported the highest collection percentage, while Baltimore reported the lowest.
Wholesale.
Sixty-one wholesale firms in the Fifth Reserve District sold more goods
In March 1933 than in February this year, a seasonal increase, but in comparison with March 1932 sales those for March 1933 were lower in dollar
amount in all lines reported upon. All five lines for which data are available report lower total sales for the first quarter of 1933, in comparison
with sales in the first quarter of 1932.
Stocks of the reporting firms did not change materially during March
this year, but on March 81 all lines showed smaller stocks than on the
corresponding date a year ago, most of the decreases being chiefly due to
the years' decline in wholesale prices.
Collections in March did not show the usual seasonal improvement over
February collections, being adversely affected by the banking holiday. Collections in all lines except shoes were slower in March 1933 than in
March 1932.
Business and Industrial Activity During March in
Dallas Federal Reserve District—Increases Noted
in Wholesale and Retail Trade as Compared with
February.
In its district summary compiled April 15, the Federal
Reserve Bank of Dallas states that "business and industrial
activity in the Eleventh (Dallas) Federal Reserve District
was well sustained during March despite the interruptions
caused by the bank holiday." The district summary,
noted in the May 1 "Monthly Business Review" of the
Bank, continued:
Sales of department stores during the month were 18% larger than in
February, and while there was a decline of 21% from last year, the comparison was slightly more favorable than in February even though Easter
came in March during 1932. All reporting lines of wholesale trade showed
an increase in business between February and March, which was in part
seasonal, and in some lines the declines from a year ago were smaller than
In the previous month. A better feeling Is in evidence throughout the
trade, and consumer buying is showing some improvement. Reports
indicate that business in both wholesale and retail channels held up well
in the first half of April and in some instances closely approximated the
volume of the same period last year.
Commercial insolvencies in this district for March were greatly reduced
both in number and the amount of liabilities involved as compared with
the previous month and the corresponding month last year. In fact, it
Is necessary to go back to October 1390 to find lower figures. This is
merely an extension of the favorable trend which began with respect to
insolvencies last fall.
Banking operations gradually resumed a more normal proportion during
the past month. Federal Reserve Bank loans reflected a steady decline
throughout the period, the total on April 15 being $5,762,000 as compared
with $7,253,000 on March 15, and $12,655,000 on the corresponding date
in 1932. Federal Reserve notes in actual circulation, which had risen to
$57,645,000 at the middle of March,had declined to $41,628,000 on April 15,
and on the latter date they were only $3,936,000 greater than a year ago.
As member banks' balances were again shifted to Eastern centres, reserve
deposits of member banks receded. The loans, investments, and deposits
of member banks in selected cities declined during the period between
March 15 and April 12. The daily average of combined net demand and
time deposits of member banks in this district amounted to $602,323,000
in March, as compared with $607,612,000 in February, and $656,444,000
In March 1932.
Conditions in the agricultural and livestock industries were generally
favorable during the past month. Farmers made rapid progress with
land preparation and the planting of row crops. The seeding of corn is
about completed and cotton planting is becoming general. Except in a
few areas, moisture has been ample but recently the north winds have
dried out the surface moisture with the result that a general rain would
be very beneficial over most of the district. Prospects for winter wheat
are very poor. Range vegetation has made good growth and livestock
are putting on flesh.
While the valuation of building permits issued at principal cities during
March was 10% lower than in February, and 72% below last March year,
a majority of the reporting cities had a substantially higher valuation in
March than in February. The production and shipments of cement from
Texas mills in March were nearly double those of the low figures of February,
and production was materially higher than in March 1932.
In its "Review" the Dallas Bank reviewed wholesale
and retail trade as follows:
Wholesale Trade.
An improvement in business was witnessed during March in all sections
of the Eleventh Federal Reserve District, with few exceptions. Every
reporting line of wholesale trade showed an expansion in sales over the previous month, two of which were contrary to the usual trend in March.
In two other cases the increases were of larger than seasonal proportions.
Reductions as compared with the same month a year ago ranged from
4.1% in the case of groceries to 41.6% In the case of farm implements,
whereas in the preceding month they ranged from 8.7% to 47.8%. In
the lines of hardware and dry goods, however, the comparisons were less
favorable than in February. While there is still a general tendency on
the part of merchants to await further developments before making advance
commitments, a note of optimism was visible in certain quarters. Price
changes during the past several weeks have been slight, and some stiffening
is noted. Collections showed varying trends as compared with the previous month, but a slight net decline was in evidence.
Contrary to the usual trend In this month, the business of wholesale
dry goods firms during March showed an increase of 4.1%. Nevertheless,
Financial Chronicle
Volume 136
than in February. a
the comparison with a year ago was less favorabledecrease for the first
decline of 20.2% being reflected. The average
amounted to 14.8%•
three months of the year, as compared with 1932, strengthening; yet
Indications are that the undertone of confidence is
to maintain low
continue
and
basis
dealers are proceeding,on a cautious
than those of the
inventories. March collections were in larger volume
previous month.
in the distribution of drugs
A general increase of 10.1% was reflected
22.5% below that of
through wholesale channels. The volume was
same as was shown in February.
March 1932, this comparison being the
leas than in the
Total sales from Jan. 1 through March 31 were 16.7%
decline was reflected in the
corresponding Period last year. A substantial
amount of collections during March.
to seasonal increase
Distribution of farm implements reflected a contrary
year ago. Sales in the first three
5.6%, but was on a scale 41.6% under a
less than in 1932. Some
months of the current year averaged 35.8%
about by the favorable
improvement in business sentiment was brought
of March. There was a
weather conditions which obtained during most
with February.
decrease in the volume of collections as comparedMarch sales of wholesale
A seasonal gain of 5.3% was shown in the
of 15.7% from
reduction
a
hardware firms in this district. There was
compared with 11.7% in Febthe corresponding month a year ago, as
equipment had a somewhat
ruary. A declining demand for oil well drilling
were 5.1% smaller
adverse effect upon business. The month's collections
than the February volume.
demand for groceries
More than the usual expansion was shown in the
than in the same
wholesale during March. While sales were 4.1% less preceding month.
in the
month last year, they totaled 13.9% more than
prospects during
current
Several firms reported an improvement in the
over February.
during recent weeks. Collections reflected a gain of 7.0%
CONDITION OF WHOLESALE TRADE MIRING MARCH 1933.
Percentage of Increase or Decrease in-
March
1932.
Feb.
1933.
Net Sales
Jan. 1
to Date
Compared
with Same
Period
Last Year.
-4.1
-20.2
-41.6
-15.7
-22.5
+13.9
+4.1
+5.6
+5.3
+10.1
-5.0
-14.8
-35.8
-9.9
-16.7
Net Sales
March 1933
Compared
with
Droceries
Dry goods---Faun Implements
hardware
'
Drugs
SiOCR1
Kan° 01
March
1932.
Collections
During Mar.
to Accounts
and Notes
Outstanding
Feb.
1933. on Feb. 28.
-19.2
-18.2
+0.2
-15.9
-15.0
-0.8
-4.9
+4.4
-1.7
-2.2
March 1933
Compared
with
51.9
21.9
1.6
25.7
30.8
Retail Trade.
of confidence was
Despite disturbing factors, a strengthened undertone stores in principal
department
witnessed during March in the business of
averaged 18.2% above those
cities of the Eleventh District. Total sales
registered as compared
In February, and while a decrease of 21.0% waswas more favorable than
figure
with the corresponding month of 1932, this
February. The latter percentage
that recorded for a similar comparison in
recalled that department store
is also particularly encouraging when it is
purchases. while this year
business in March 1932 included total Easter
As a result of the seasonal
the holiday occurred in the middle of April.
for March, this Bank's
increase in sales being smaller than the average from 58.0 in February
adjusted index of department store sales dropped during the first quarter
to 54.3 in March. The distribution of merchandiseof 1932.
quarter
or 1933 was 20.7% less than in the initial
4.1% during March
Merchants increased their stocks of merchandiseinventories continued
their
but
buying,
in preparation for the Easter
stock turnover during
materially below those a year ago. The rate of
previous year. During the
1933 continued on the same scale as that of the
first quarter of each year the rate was 0.62.
evidenced a decline
Contrary to the usual seasonal trend, collections
ratio of March colduring March, and were leas than a year ago. The month was 19.8%
the
lections to accounts outstanding at the beginning of
1932.
as against 30.9% in February and 30.7% in March
3431
year ago. Building activity remains dormant, although there were some
seasonal gains reported for the District as a whole.
Business insolvencies in this District in March and the forst three months
of 1933 were less numerous, and total liabilities involved were smaller than
in any corresponding month or three months in recent years.
Trade conditions in the Tenth District were reviewed as
follows by the Bank:
Department store sales for March, as reported by 32 stores in this District,
showed about the normal seasonal increase, 18.3%, over February, but were
22.7% below those for the corresponding month a year ago. Sales are based
on the dollar volume and the decrease, as compared to last March, reflected
In part lower prices and the fact that Easter, which fell on April 16 this year,
was 20 days earlier last year. Dollar sales during the first quarter of 1933
were 22.5% less than in the first quarter of 1932. March and first quarter
sales have shown four consecutive declines, those of 1933 compared to 1931
being the largest.
Inventories were enlarged 2.2% in March, or slightly less than the usual
seasonal amount, and stocks as of March 31 were 23.5% smaller than one
year earlier, thus recording the seventh consecutive and most severe decline
in annual comparisons.
Collections for March totaled 31.7% of amounts outstanding Feb. 28.
This collection figure compares with 32.1% for the preceding month and
35.5% for the corresponding month last year.
Wholesale distribution of merchandise in this District in March, as indicated by the reports of a number of representative firms in five reporting
lines, increased substantially. The 11.9% increase in dollar sales of dry
goods was somewhat larger than usual, whereas, increases of 14.2% for
furniture and 2.8% for drugs were somewhat smaller. Sales of groceries
and hardware displayed about normal strength, increasing 11.6 and 30.4%,
respectively. All lines reported their dollar volume as substantially short
of that of March 1932, declines being as follows: Dry goods, 17.4; groceries,
12.5; hardware, 16.5; furniture, 34.8, and drugs, 20.6%.
Inventories, except those of groceries, were reduced in March and stocks
at the close of the month were considerably smaller for all lines than on
March 21 1932, the combined reduction being 15.5%.
Review of Building Activity in Illinois During April
and First Four Months of 1933 by Illinois Department of Labor.
"During April 1933," reports Howard B. Myers, Chief of
the Division of Statistics and Research of the Illinois Department of Labor, "a total estimated expenditure of
$900,018, for 1,143 building projects, was authorized by
building permits in the 65 reporting cities of Illinois. These
figures represent increases over March 1933 of 93.4% in the
number of projects and 19.1% in the estimated cost," continues Mr. Myers, who also noted that "the April increase
was the second consecutive gain reported." Further reporting on the Illinois building situation, Mr. Myers, under date
of May 13. said:
The increase of 19.1% in the total estimated expenditure is comparable
to the average March-April gain for the preceding 12 years of 23.1%.
Compared to April 1932, the total expenditure of $900,018 represented a
decline of 57.9%.
The total estimated expenditure for new residential building in all reporting cities of the State increased from $93,725 in March to $172,616 in
April, or 84.2%, and the number of families provided for in housekeeping
dwellings increased from 28 to 44. New non-residential building, however, declined from $368,852 in March to $260,805 in April, or 29.3%.
Thus, despite the increase in new residential building, the estimated expenditure for all new building, both residential and non-residential, declined from
Reserve $462,577 in March to $433,421 in April, or 6.8%. Expenditure for all
Business Conditions in Kansas City FederalNoted in proposed addition, alteration, repair and installation projects increased from
District-Increase of Seasonal Amount
2293,196 in March to $466,597 in April, or 59.1%. In April the total
Wholesale and Retail Sales of Merchandise.
estimated cost of building projects in Chicago increased 39.5%, and that
projects in the group of 34 Chicago suburban cities increased 67.7%.
"Nearly all classes of business and industry were affected for
The total estimated expenditure for projects authorized in the 30 cities
banking
of
resumption
the
but
March,
by the bank holiday in
the Chicago metropolitan area declined 16.8%.
which, in outside
In Chicago the estimated expenditure for each of the three main building
was accompanied by a decidedly improved morale,
the Federal classifications showed gains in April over the preceding month.* New
the Tenth (Kansas City) District," according to
d residential building increased from $34,250 in March to $36,750 in April,
strengthene
further
been
Reserve Bank of that place, "has
or 7.3%; new non-residential increased from $80,475 to $102,575, OT
its
in
Bank,
27.5%; and additions, alterations, repairs and installations increased from
by the sharp advance in grain prices." The
Addition, alteration, repair and installa"Monthly Review" of May 1, states that "the upward surge $157,408 to $240,265, or 52.6%.
tion permits included an authorization for a large electric sign, estimated
in grain prices carried quotations on all classes, as of to coat $76,000. The increase for new residential building wae the third
April 20, to or above the prevailing levels of a year ago, with consecutive monthly gain, while the gain in new non-residential building
increase reported. Neither classificawheat 10e. per bushel higher. Continuing, the Bank further was the fourth consecutive monthly
tion, however, disclosed a total estimated expenditure above that for
reported as follows:
April 1932. The April 1933 index for total Chicago building was 2.1; that
for new residential building, 0.5; for new non-residential building, 1.1;
Aside from the improvement in prices of grains, agricultural commodity
they
present
at
although
gains,
substantial
and for additions, alterations, repairs and installations, 28.0. (Monthly
prices have failed to record any
Marketings of all commodities were
average 1929= 100.)
are somewhat above the recent lows.
in
light,
although
comparatively
were
and
March
in
For the group of 34 reporting suburban cities the total estimated cost
restricted
somewhat
volume.
of
year's
last
proposed new residential building increased from $48,275 in March to
exceeding
instances
scene
in March.
$58,866 in April, or 21.9%, and that for additions, alterations, repairs
The condition of fall-sown grains showed further deterioration
the
DeStates
United
by
reported
and installations increased from $65,130 in March to $74,989 in April,
The April 1 condition of winter wheat, record, indicates heavy abandonor 15.1%. New non-residential structures in this group of cities increased
partment of Agriculture as the lowest of
of
but
States
District
Tenth
seven
the
for
a
from
harvest
the low total of $26,127 in March to $100,192 in April. Twenty of
ment and promises
the 34 cities in this group showed gains in total estimated expenditure for
116,014,000 bushels, the smallest since 1904. Rye prospects are also poor.
somewhat by cold weather
all building projects over March 1933 and 11 showed gains over April 1932.
Spring planting operations have been retarded
part of the District and by inadequate
The March-April decline in the total proposed expenditure for the group
and frequent rains in the eastern
of 30 reporting cities outside the Chicago metropolitan area was caused by
moisture supplies in the western part.
by
retail
increased
about
the
and
wholesale
both
at
new non-residential building which declined from $262,250 to $58,038, or
Sales of merchandise
to 1932, the dollar volume of
77.9%. New residential buildings estimated to cost $77,000 were authorusual seasonal rate in March. Compared
stores
over
22%,
declined
department
32
sales
ized
quarter
at
in April, compared to an extremely low total of $11,200 in March.
first
Mai ch and
wholesale lines, combined, averaging
Additions, alternations, repairs and installations increased from $70,658
with declines for the five reporting
three months.
In March to $151,343 in April. Nineteen of the 80 reporting cities outside
17.6% for the month and 14.9% for the
the Chicago metropolitan area reported gains over March 1933, and eight
Production of flour, crude oil, and cement was larger than one month or
was
coal
smaller.
bituminous
of
Shipments
that
whereas
reported increases over April 1932.
one year earlier,
but
month
the
exceeded
the
during
March
ore
declined
lead
and
of zinc ore
•The index of seasonal variation for total Chicago building for April is
1932 totals. Operations at meat packing establishments were stepped up
less livestock of all species than a
,
for March, 118.8.
189.8and
during the month, but packers purchased
Financial Chronicle
Of the total estimated expenditure authorized by permits issued in the
65 reporting cities of Illinois in April, 42.2% was to be expended on
Chicago building projects, 26.0% in the 34 reporting municipalities in the
Chicago suburban area, and 31.8% in the 30 reporting cities outside the
Chicago metropolitan area. The proportion of the total proposed expenditure to be expended for new residential structures was 19.2%; for new
non-residential building, 29.0%, and for additions, alterations, repairs and
installations, 51.8%.
A cumulated total estimated expenditure amounting to $2,745,075 was
authorized by 65 Illinois cities during the first four months of 1933. This
represents a decline of 54.6% from the total of $6,046,200 1' authorized by
Identical cities for the same period in 1932. In Chicago, the total estimated
cost of permit building projects for the same comparative periods declined
from $2,635,665 t in 1932 to $1,088,833, or 58.7%; for the 34 Chicago
suburban cities the total proposed expenditure declined from $1,392,513 t to
$443,153, or 53.8%; for the 30 reporting cities outside the Chicago metropolitan area the total estimated expenditure declined from $2,018,022 t to
$1,013,089, or 49.8%. An analysis of the cumulative totals by building
classification disclosed that for the same comparative periods, new residential
building declined from $1,490,919 t to $399,491, or 73.2%; new non-residential building decreased from $2,647,589 t to $960,797, Or 63.7%, and
additions, alterations, repairs and installations declined from $1,907,692 t
to $1,384,787, or 27.4%. Fourteen of the 65 reporting cities-seven in
the Chicago suburban area, and the same number among those outside the
Chicago metropolitan area-reported authorized expenditures for the first
four months of 1933, in excess of expenditures for the same period in 1932.
t Revised.
National Farming and Agricultural Conditions-Higher
Prices-Weather Unfavorable.
From the Alabama "Economic Review of the Alabama
.Polytechnic Institute for May, we take the following interesting account of agricultural and farming conditions in the
United States during the current year.
The weather has been a disturbing factor in several parts of the United
States. Pasture condition which is determined chiefly by weather was
but 84.4% of normal on April 1, this being the poorest condition on the
date for the nine-year period for which data are available. An average
condition of 81.1% was reported for April 1 during the years 1924 to 1929.
Some parts of the corn belt reported retarded oats sowing and spring
plowing. The weather bureau reported for the week of April 25 that
"planting of cotton was decidedly backward, with continued poor progress
reported generally over the cotton belt. In Texas, germination of early
planting was MOW, stands mostly poor, and in the Northern half of the
State seeding is awaiting more favorable weather. In the Central States of
the belt, firogresa of planting is slow and decidedly behind an average year.
In the Eastern belt advance has been made, especially in South Carolina
and Georgia."
The index of farm prices in the United States in mid-March was
50%
of the pre-war average but advanced to 53% by April 15. The advances
were featured by about a 37.5% rise in corn prices and about 23% rise In
wheat prices dming the month. In general, animal and animal products
shared only to a small degree in the rise. One of the chief elements causing
the advances is the prospects of monetary inflation.
Farm wages decreased since Jan. 1. The United States Bureau of Agricultural Economics states that, "the general level of farm wage rates was
72% of the 1910-1914 average on April 1 1933, according to an index
computed by the Crop Reporting Board of the United States Department
of Agriculture. The two point decline in the index during the first quarter
of this year, reduced April 1 farm wages to a level 22 points lower than a
year earlier, and to the lowest point during the past 33 years. Day wages
without board ranged from $2.10 in Massachusetts and Rhode Island to
$0.55 in South Carolina, Georgia and Alabama on April 1.
The reduction In farm wages since Jan. 1 was in direct contrast to the
usual seasonal advance during the first three months of the year. As a
result of an Increase in the demand for hired farm workers, this advance
averaged 5.8 points from 1923 to 1930. Since 1930, however, the effects of
a declining agricultural products price level have more than offset the
Increase in demand for hired workers during the spring planting season and
wage rates throughout the country as a whole have declined from January
to April."
With the banking holidays in March there was a marked decline In Industrial activity and industrial unemployment reached a new high level in
March and the incomes of consumers fell to the lowest level since the
depression began. More recently business activity has shown some advance
which it is hoped will increase employment and consumer purchasing power.
Farm Prices in the United States.
The movements of farm prices in the last two months have been viewed
with more intense interest and hope perhaps than at any other time In the
last four years. According to the United States Department of Agriculture,
"rising prices of farm products carried the farm price Index of the Bureau
of Agricultural Economics to 53 as of April 15 up to 3 points since March 15,
and to the highest figure since last November. The index on April 15 a
year ago was 59.
"The Bureau notes that changes In wholesale prices of farm products at
the large terminal markets centres indicate further advances in prices paid
farmers since April 15.
"There were gains in prices paid farmers for nearly all the twenty-seven
commodities included in the index,from March 15 to April 15, with grains
in the lead. The farm price of cotton was unchanged; farm prices of
calves,milk,and hogs declined slightly. Prices of milk declined seasonally
to the lowest point on record says the Bureau."
INDExall OF PRICES OF GROUPS OF FARM COMMODITIES.*
April
1932.
March
1933.
A aril
1933.
Drains
so
36
47
Fruits and vegetables
78
60
66
Meat animals
66
56
57
74
Dairy products
59
59
Chickens and eggs
60
54
56
Cotton and cottonseed
46
48
49
Unclassified
44
43
44
Farm price index
59
50
53
•As reported by the United States Bureau of Agricultural Economies
The indexes of farm prices of all groups of commodities advanced from
March 15 to April 15 except the index of the dairy products group. Grains
rose 11 points, fruits and vegetables advanced 6 points; chickens and eggs
advanced 2 points; and the meat animal, the cotton and cottonseed and
the unclassified groups advanced 1 point each.
May 20 1933
FARM PRICES IN THE UNITED STATES.*
Sprit 1932,
March 1933.
April 1933
Beef cattle, per pound30.042
30.034
80.035
Butter, per pound _
- .219
1.80
1.86
Chickens, per pound
.126
.091
.098
Corn, per bushel
.314
.206
.282
Cotton, per pound
.057
.061
.061
Cottonseed, per ton
9.780
9.220
10.030
Eggs, per dozen
.102
.101
.103
Bay, per ton
8.740
6.120
5.800
Hogs, per pound
.036
.032
.032
Potatoes, per bushel
.464
.390
.424
Sweet potatoes, per bushel
.640
.466
.499
Wheat nor bushel
.431
345
448
• As reported by the United States Bureau of Agricultural Economies.
Of the individual farm commodities, wheat and corn made the most
spectacular advances in price. The Bureau offers comments on the price
of wheat. "Prospects for the smallest winter wheat crop since 1904, delayed seeding of the spring wheat crop, Increasing evidence that the carryover of wheat in this country will be smaller than a year ago at the close
of the present crop marketing season, and the possibility that the then.
pending agricultural and finance legislation would result in a sustained rise
in the general level of commodity prices may be listed as the principal
influences favoring the sharp advance in the farm price of wheat."
The Bureau also says with regard to corn, "the general advance in prices
of grains, a renewed commercial demand for corn for the manufacture of
brewers' grits, a possibility that alcohol distilled from corn might be required
In all motor fuels, and prospects of controlled inflation, raised the price paid
farmers for corn about 37% during the month ended April 15."
With regard to cotton the Bureau points out that "prices paid farmers
for cotton averaged 6.1 cents per pound on April 15 or the same as a month
earlier. This was about 7% higher than the price in April 1932. The domestic consumption of American cotton was about 5% larger during the
present marketing season (August 1932-March 1933) than in the corresponding period a year earlier, but textile stocks are reported as having
Increased during recent weeks and exports have lagged. In consequence
the April 15 farm price of cotton did not share in the general rise of agricultural product Prices."
Wholesale Prices.
Wholesale prices made some gains and fluctuated sharply during March
and April. The prices of grains, cotton, and pig iron are among those
which have shown the most advances. The level of wholesale prices in
March was 60.2 of the 1926 average against 59.8 for February and 66 for
March 1932, according to the Bureau of Labor Statistics index. The
weekly index for April 22 was 60.4. From February to March farm
products as a group gained 434%. Food prices moved up 114 %. Smaller
changes were made in the other groups.
WHOLESALE COMMODITY PRICES.
(Bureau of Labor Statistics. 1926=100.1
Commodity Grew).
March
1932.
February
1933.
March
1933.
All commodities
Farm products
Foods
Ilidm and leather productsTextile products
Fuel and lighting materials.
Metals and metal products_
Building materials
Chemicals and drugs
House furoishing goods.
Miscellaneous
Raw materials
V1,1101.1 nrniim 1,7
66.0
50.2
62.3
77.3
58.0
67.9
80.8
73.2
75.3
77.1
64.7
56.1
71.5
59.8
40.9
53.7
68.0
51.2
63.6
77.4
69.8
71.3
72.3
59.2
48.4
65.7
60.2
42.8
54.6
68.1
51.3
62,9
77.2
70.3
71.2
72.2
58.9
49.4
65.7
Week Ending
.4 aril 29
1933.
61.5
46.4
58.1
71.8
52.4
62.5
77.6
70.5
72.0
72.3
58.6
_
Farm Exports Smallest for March in N neteen Years
Volume exports of farm products in March had an index of 67 compared
with 71 in February, and with 111 in March 1932, according to the Bureau
of Agricultural Economics. This year's March index was the lowest for
that month in nineteen year. Excluding cotton, the March index was 59.
The index for exports of wheat and flour in March, at 24, made a new
low record for any month. Total exports of wheat and flour for the season
up to March 31 were 36,231,000 bushels, or about one-third the volume
of exports during the corresponding nine months in the preceding season.
But exports of other grains, especially barley and corn, were larger this
March than last, and larger this season than last.
Foreign buying of American cotton was curtailed greatly in March.
European countries bought more cotton during the nine months ended
March 31, than in the same period a year ago, but the increase has been
more than offset by smaller shipments to the Orient. Total exports for
the nine months ended March 31 totaled 6,910,000 bales compared with
7,503,000 bales in the corresponding period of 1931-32.
Heavier exports of bright flue-cured leaf tobacco to the United Kingdom
and Japan raised the index for unmanufactured tobacco to 112 In March,
a gain over the three preceding months and also over March a year ago
when the exports index was 90. Fruits as a group made the most favorable
export showing in March, with an index of 220. Exports of cured pork
were slightly better In March, but exports of lard were considerablybelow
those of the preceding three months. Foreign countries took a much
larger volume of lard during the nine months ended March 31 than during
the corresponding period a year ago, but the exports were made at greatly
reduced prices.
The exports index for animal products was 63 in March compared with 58
in March last year; dairy products and eggs, 76 against 100 last March:
grains and products, 31 against 79; fruit, 220 against 269; hams and bacon.
25 against 17; and cotton fiber, Including linters, 72 against 135.
Farmer Buying Power Increased.
Two months age the purchasing power of farm products in terms of
other commodities was at the lowest point in twenty-three years ofstatistical
records of the Bureau of Agricultural Economics,says the U.S. Department
of Agriculture. There was a slight gain in March, but in April the sharP
gains in prices of farm products lifted the index to 53. In April a year ago
the index was 52.
The effect of abandonment of the gold standard by this country, the
depreciation of the dollar in foreign exchange, the bursting forth or the
"reinflation" sentiment into legislative action, the coincident rise in stocks
and in many basic commodity prices, has been good for farmers so tar,
says the bureau in its May 1 report on the agricultural situation. Wheat
and other grains, hides, butter, and cotton prices have advanced 10 to 40%.
But the improvement in prices has been selective, the bureau points out.
Livestock have not yet felt the influence of rising prices as have the important cash crops which are sensitive to world markets. Yet butter,
one of the principal livestock products, advanced about one-third in price
at New York. This marked rise in butter, says the bureau, occurred In
Financial Chronicle
Volume 136
the face of a milk situation so serious that it has led to "strikes" and serious
disturbance in Wisconsin and New York, and even to the fixing of milk
Prices by legislation.
Lumber Orders Continue to Climb-Year to Date
Only 4% Below 1932.
The high record of the previous week in lumber orders
was exceeded during the week ended May 13 1933, when
this new business reached a total of 224,111,000 feet, the
heaviest volume this year or last, states the National Lumber
Manufacturers Association. Lumber production was the
highest of any week of this year or last and lumber shipments
were the heaviest of any week except one, that ended October 1, according to telegraphic reports to the Association
from regional associations covering the operations of 653
leading hardwood and softwood mills. Total production
was 134,003,000 feet and shipments, 167,265,000 feet, adds
the Association, further going on to say:
Orders as reported by West Coast mills were the heaviest this year or
last; by Southern pine mills, heaviest except for one week last September;
by Southern hardwood mills, heaviest except for the preceding week.
Compared with corresponding week of 1932, production was 4% greater,
shipments 9% greater and orders 56% above. • For the 19 weeks of 1933
to date, orders were only 4% less than for similar period of 1932; production
was 10% lighter. All regions except Northern hemlock shared in the week's
gain over last year, West Coast orders being 83%. Southern pine 71%
and Southern hardwoods 76% heavier.
For the first time in many months, unfilled orders were as high as 19
days' average production of the reporting mills. This record was reached
on May 13, as compared with 15 days' average production a year before.
Forest products carloadings during the week ended May 6 were 19,167
cars, the heaviest since a year ago except for one week in October. They
were only 255 cars less than for the week ended May 7, 1932 but 13,662
less than for corresponding week of 1931.
Lumber orders reported for the week ended May 13 1933 by 422 softwood
mills totaled 199,588.000 feet, or 61% above the production of the same
mills. Shipments as reported for the same week were 146,822,000 feet, or
19% above production. Production was 123,719,000 feet.
Reports from 247 hardwood mills give new business as 24,523,000 feet,
or 138% above production. Shipments as reported for the same week
were 20,443,000 feet, or 99% above production. Production was 10,284,000
'
deet.
Unfilled Orders.
Reports from 367 softwood mills give unfilled orders of 503,042,000 feet,
on May 13 1933, or the equivalent of 18 days' production. The 537 identical
mills (hardwood and softwood) report unfilled orders as 586,884.000 feet
on May 13 1933, or the equivalent of 19 days' average production, as compared with 463,320,000 feet, or the equivalent of 15 days' average production on similar date a year ago.
Last week's production of 408 identical softwood mills was 119.963,000
feet, and a year ago it was 113,358,000 feet; shipments were respectively
141.076,000 feet and 134,992,000; and orders received 195,252,000 feet
and 127,006.000. In the case of hardwoods, 187 identical mills reported
production last week and a year ago 8,805,000 feet and 10,305,000; ship.ments 17.255,000 feet and 10,753,000; and orders 20,830.000 feet and
11,315,000.
West Coast Movement.
The West Coast Lumbermen's Association wired from Seattle the following new business, shipments and unfilled orders for 180 mills reporting for
the week ended May 13:
SHIPMENTS
NEW BUSINESS
UNFILLED ORDERS I
Feet.
Feet.
Fed. 1
!Coastwise and
Domestic cargo
Domestic cargo
delivery.
.... _ 60.739,000 delivery......161,723,0001 intercoastal _ 23,570,000
19,395.000
.Export
84,459,000 Export
20.359,000 Foreign
25,003,000
Rail
73.383,000 Rail
29,885.000 Rail
I Local
5,996,000
. 5,996,000
'Local
Total
319,565,0001
116,979.000 Total
Production for the week was 68,547,000 feet.
Total
73.964,000
3433
Hardwood Reports.
The Hardwood Manufacturers Institute, of Memphis, Tenn., reported
production from 231 mills as 9,444.000 feet, shipments 18.733,000 and new
business 22.780,000. Production was 20% and orders 48% of capacity,
compared with 19% and 55% the previous week. The 172 identical mills
reported production 21% less and new business 76% greater than for the
same week last year.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh, Wis., reported production from 16 mills as 840,000 feet, shipments 1.710,000 and orders 1,743.000 feet. Orders were 29% of capacity,
compared with 17% the previous week. The 15 identical mills reported a
gain of 253% in production and a gain of 263% in orders, compared with
the same week last year.
Automobile Financing During March 1933.
A total of 101,016 (preliminary) automobiles were financed
in March, on which $33,436,244 was advanced, compared
with 86,881 (revised) on which $29,118,537 was advanced
in February, and with 140,779 on which $51,148,285 was
advanced in March 1932, the Department of Commerce
reported on May 18.
Volume of wholesale financing in March was $27,641,561
(Preliminary), as compared with $27,502,928 (revised) in
February and $34,121,364 in March 1932.
Monthly statistics on automobile financing, based on data
reported to the Bureau of the Census by 290 identical automobile financing organizations, are presented in the table
below for December 1932, and January, February and
March 1933. The month of December 1932 is included in
both series to afford comparability. Data for 1931 and 1932
include reports from 313 organizations. The figures include
complete revisions to date.
Retail Financing.
Year
and
Month.
1931.
January
February
March
April
May
June
July
August
September
October
November
December
Total year
1932
January
February
March
April
May
June
Jab`
August
September
October
November
December
Total year
whotesale
Financing
Volume
in Dollars.
Total.
Number
of Cars.
40,164,672
49,812.959
63,089,716
71,194,343
72,623,199
58,171,936
48,853,330
43,942,549
35,840,571
25,770,269
15,719,974
29,257,137
New Cars.
Volume
In Dollars.
Number
of Cars.
160,490
61,691,837
58,499
66.130,134
172.958
67.599
237.273
91,997,270 102,665
290,076 112,982.254 133,347
277,950 109,372,143 126.729
265,389 104,642,284 115,106
95.910,307 100.832
236,878
83.602
204.878
79.598.201
67.609
176.663 68,284.838
60,691.614
159,980
58,055
131,047
48,568,648
44,701
50,432,428
134,643
48,131
554,440,655 2,448.245
950,301.958 1,006,875
Volume
in Dollars.
32,945.588
36.854,428
55,022,086
70.544,761
68.564.134
63,554.955
59,300,107
46,865,947
38.609,797
33,195,759
25,394,801
27,305,927
558,158,290
122.344
123,574
140,779
155,691
164,721
177,961
132,467
131,069
111.189
97,922
82,161
82,110
44,628,529
44,829,138
51,148,285
56.415.652
58,435,573
63,169,095
44,716,907
45,068,741
38,837,225
33,623,573
27,727,369
27,025,018
41,375
40,780
46,234
57,661
63,885
74,205
45,816
46,416
39,513
31,241
24.666
26,194
23,475.671
23,623,496
26,887,515
31,835,792
33,590.555
38,329,334
24,149,326
24,644,532
21,551,246
17,644,406
13,980.978
14,090,821
330,267,440 1,521,988
535,625,105
537,986
293,803,672
34,841,766
33,276,393
34,121,364
33,903,704
38,608,439
43,682,471
26.016,208
22,104,084
18,676,535
13,131,603
11.774,473
20.130,580
1932.
December
20,088,951
81,437
26,756,711
26,020
13,933,408
1933.
aJanuary
aFebruarY
bMarch
91,673
30 133,331
86.881
27 502,928
27,641.561 c101,016
31,203,703
29,118,537
33,436.244
35,475
32,535
38,184
18,299,175
16,826,821
19.376,973
Southern Pine.
The Southern Pine Association reported from New Orleans that for
alo mills reporting, shipments were 37% above production, and orders
.59% above production and 16% above shipments. New business taken
during the week amounted to 41,756,000 feet(previous week, 33,562,000
at 102 mills); shipments, 36,044,000 feet (previous week, 27,209,000);
and production 26,227,000 feet (previous week, 23,479,000). Production
was 41% and orders 65% of capacity, compared with 39% and 56% for
the previous week. Orders on hand at the end of the week at 107 mills
were 83,844,000 feet. The 107 identical mills reported an increase in
production of 11%,and in new business an increase of 71%, as compared
-with the same week a year ago.
Western Pine.
The Western Pine Association reported from Portland, Ore., that for
109 mills reporting, shipments were 21% above production, and orders
.39% above production and 14% above shipments. New business taken
during the week amounted to 38,021,000 feet (previous week, 37,969.000
.at 114 mills); shipments 33,213,000 feet (previous week, 31,881,000); and
_production 27,445,000 feet (previous week, 27,466,000). Production was
21% and orders 29% of capacity, compared with 20% and 28% for the
previous week. Orders on hand at the end of the week at 108 mills were
125,422,000 feet. The 107 identical mills reported a decrease in production
.of 10%, and in new business a decrease of 2%, as compared with the same
week a Year age.
Northern Pine.
The Northern Pine Manufacturers of Minneapolis. Minn., reported
production from seven mills as 1,180,000 feet, shipments 2,131,000 feet
and new business 1,989,000 feet. The same mine reported production
23% less and new business 22% greater than for the same week last year.
Retail Financing.
Year and
Month.
Number
of Cars.
1931.
!antler,'
February
warch
5prIl
Way
lime
filly
August
September
October
November
December
Total year
Volume
in Dollars.
Unclassified.
Number
of Cars.
Volume
in Dollars.
97,834
100,696
128,311
149,112
142,796
141,935
128,707
115,020
103,234
97,437
82,816
82,757
27,236,324
27,707,242
34,688,428
39,546,288
37,781,543
37,988,162
34,126,071
30,486,513
27.580,567
25,882,006
21,891,123
21,859,828
4,157
4,663
6,297
7,617
8,425
8,348
7,339
6,256
5,820
4,488
3,530
3,775
1,509,925
1,568,464
2,286,756
2,891,205
3,026,466
3,099,167
2,484,129
2,245,741
2,094,474
1,613,849
1,282,724
1,266,673
1,370,655
366,774,095
70,715
25,369,573
77,321
78,802
90,121
93,398
96,010
99,513
82,687
80,648
67,724
63,791
54,969
53,609
19,974,286
19,941,665
22,779,892
23,066,269
23.257.953
23,394,676
19,225,478
18,908,584
15,989,259
15,035,731
12,833,770
12,174,121
3,648
3,992
4.424
4,632
4,826
4,243
3.964
4,005
3,952
2,890
2,799
2,307
1,178,572
1,263,977
1,480,878
1.513.591
1,587,065
1,445,085
1,342,103
1,515,62.5
1,296,720
943,436
912,621
760.076
938,320
226,581,684
45.682
15.239.749
52,980
12,033,690
2,437
789,613
1932.
January
February
March
April
May
June
July
August
September
October
November
December
Total year
Northern llemlock.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh, Wis., reported production from 16 mills as 320,000 feet, shipments 1,470.000 and orders 843,000 feet. Orders were 10% of capacity
.compared with 10% the previous week. The 15 identical mills reported a
gain of 191% in production and a loss of 1% in new business, compared
with the same week a year ago.
Used Cars.
1932.
December
1933.
aJanusuy
53,887
779,900
12,124,628
2,311
aFebruary
52,228
11,669,547
622,169
2,118
bMarch
60,322
748.722
13,310.549
2,510
a Revised. b Preliminary. c Of this number. 37.80% were new ears. 59.72%
used cars and 2.48% unclassified.
3434
Financial Chronicle
Shipments of Pneumatic Casings and Tubes in March
1933 Slightly Exceeded Production-Small Change
Noted in Inventories.
Shipments of pneumatic casings for the month of March
1933 amounted to 2,091,878 casings, a decrease of 8.7%
under February and 29.2% below March 1932, according
to statistics released by the Rubber Manufacturers Association, Inc. Production of pneumatic casings for March
1933 amounted to 2,037,899 casings, a decrease of 12.9%
under February and 44.5% under March 1932. Pneumatic
casings in the hands of manufacturers March 31 1933
amounted to 7,289,976 units, a decrease of 1.2% under
Feb. 28 1933 stocks, and 26.2% under March 31 1932.
The actual figures are as follows:
PRODUCTION AND SHIPMENTS OF PNEUMATIC CASINGS.
(From figures estimated to represent 100% of the industry.)
March 1933
February 1933
March 1932
Shipments.
Production.
2,091,878
2,292,463
2,954,040
2,037,899
2,339,373
3,671,090
Inventory.
7,289,976
7,376,946
9,877,823
The Association, in its bulletin dated May 10 1933,
gave the following data:
PRODUCTION AND SHIPMENTS OF PNEUMATIC CASINGS AND INNER
TUBES (BY MONTHS).
[From figures estimated to represent 80% of the industry.]
Pneumatic Casings.
Inverttory,
1933January
February
March
Inner Tubes.
Shipments.
InvenWry,
Output.
Shipmews.
5.789,476 1,806.277 2,077,268 4,957,298 1,674,557 2,028,100
5.901.557 1,871,498 1,833,970 5.085,321 1,778,818 1,681.853
5,831,981 1,630,319 1,673,502 5,095,340 1.506,141 1,521,736
Total
1932
January
February
March
April
May
June
July
August
September
October
November
December
Output.
6,329.417
7,337,796
7.902,258
7,876,656
7,502,953
x3,999,260
4.962,285
5,327,179
4,876,878
5,500,784
5,963,554
6,115,487
Total
5,308,094 5,584,740
4,959,516 5.231,689
2,769,988 2,602,469 6,175,055
3,098.976 2,042.789 7,007,567
2,936,872 2,363,323 7,558,177
2,813,489 2,958.014 7,552.674
3,056,050 3,406,493 7,130,625
4,514.663 x8,051,932 x4,139,358
2,893.463 1,923,276 4,779,814
2,471,381 2,123.890 4,901,884
2,030,976 2,465,828 4,602,160
2,054,913 1,439,309 4,970,898
1,842.836 1,369.038 5,329,819
1.586.145 1,454,960 5,399,651
2,718,508 2,803,369
3,056,988 2,182,405
2,801,602 2,148,899
2,579,768 2,708,186
2,727,462 3,093,593
4,222,816 17,215,371
2,349,761 1,727,750
2,198,560 2,002,347
2,081,146 2,478,234
1,749,188 1,326,824
1,604,071 1,262,634
1,423,376 1,378,924
32,067,732 32,200,820
19317,165,846 2,939,702 2,995,479
January
7,628,520 3,188,274 2,721,347
February
March
8,011,592 3,730,061 3,297,225
April
8,025.135 3,955,491 3,945,525
May
8,249,856 4,543,003 4,332,137
June
8,357,768 4,537,970 4,457,509
July
7,935,565 3,941,187 4,369,526
7,117,037 3,124,746 3,967,987
August
6.526,762 2,537,575 3,145,488
September
6,640.062 2,379,004 2,281,322
October
November_ _ _ _ 6,335,227 2,000,630 2,309.971
6,219,776 2,114,577 2,225,036
December
2,898,405
3.132.770
3,559,644
3,693,222
4,329,731
4,286,467
3,964.174
3,548,335
2,769,431
2,461,578
1,954,915
2,077,704
3,249,734
2,720,135
3,031,279
3,708,949
4,224,594
4,317,543
4,664,964
4,240,403
3,320,103
2,250,494
2,075,716
2,213,261
Tntril
38.002.220 40.048.352
38.666.376 40.017.175
Revised
CONSUMPTION OF COTTON FABRICS AND CRUDE RUBBER IN THE
PRODUCTION OF CASINGS, TUBES, SOLID AND CUSHION TIRES
AND OUTPUT OF PASSENGER CARS AND TRUCKS.
Consumption.
Colton
Fabrics
(80%).
Crude
Rubber
(80%).
Production.x
Gasoline
(100%)•
Passenger
Cars
Trucks
(100%). (100%).
Calendar years:
(Pounds.)
(Gallons.)
(Pounds.)
1929
208,824,653 598,994,708 14,748,552,000 4,811,107 810,549
1930
158,812,462 476,755,707 16,200,894,000 2,939,791 569,271
1931
151,143,715 456,615.428 16,941,750,000 2,036,567 435,784
1932
128,981,222 416,577,533 15,698,340,000 1,196,357 245,285
First three months:
61,344,421 173,054,588 3,071,166,000 1,348.017 197,516
1929
42,982,127 126,398,004 3,384,240,000
888,152 157,024
1930
38,781,431 114,820,737 3.528,042,000
1931
572,545 124,946
1932
306,522 66,725
35,966.888 112,525,001 3,421,152.000
21,526,846 74,000,392 3,276,294,000
1933
312,236 56,513
Month of Jan. 1933
7.809,233 27,368,276 1,110.564.000
111,318 22,154
979,608.000
Month of Feb. 1933
7,263,337 25,123,700
94,517 15,595
Month of Mar. 1933
6,364,276 21,508,416 1.186,122,000
106,472 18,752
S These figures include Canadian production and cars assembled abroad the
parts of which were manufactured In the United States.
Average Prices.
Index Numbers.
1926=100.
Commodity.
All commodities
Crude rubber (cents per pound)
Smoked sheets (cents per pound)- .030
Latex crepe (cents per pound)_.- .037
Thee (dollars per unit)
Balloon (dollars per unit)
KiL
Cord (dollars per unit)
4.55
Truck and bus (dollars per unit)
25.16
Tubes, inner (dollars per unit)
2.25
Feb.
1933.
Mar.
1932.
.030
.037
Oil
.045
9.10
4.77
26.38
2.25
8.48
4.46
24.29
1.96
Mar. Feb. Mar.
1933. 1933. 1932.
60.2
6.3
6.2
7.4
41.3
39.7
47.8
41.1
40.0
59.8
6.1
6.1
7.4
42.6
41.3
50.1
43.1
40.0
66.0
7.2
6.9
9.1
39.2
38.5
46.9
39.7
34.7
Crude Rubber Consumption Increased 45.3% in AprilImports Off 30.2%-Inventories Decline.
Consumption of crude rubber by manufacturers in the
United State's for the month of April 1933 amounted to 26,226 long tons. This compares with 18,047 long tons for
March this year and represents an increase of 45.3% ac-
APRIL REPORT OF COTTON CONSUMED. ON HAND, IMPORTED
AND EXPORTED, AND ACTIVE COTTON SPINDLES.
(Cotton in running bales, counting round as half balm, except foreign, which is in
590-pound bales.)
Cotton Consumed
During-
Colton on Hand
April 30.
Cotton
Eight
In Con- In Public Spindks
Months sliming
Storage
Active
Ended Establish- & at Coon- During
Apra API% 30. meats
presses
April.
(f,ain). (bales). (bales). (bales).
(Number)
I 1933 470,685 4,218.001 1,367,956 8,151,547 23,416,680
1 1932 366,481 3,932,370 1,533.599 8,212,738 23,362,862
Year
United States
Cotton-growing states......_f 1933 389.316 3,523,288 1,100.658 7,660,899
1932 310.946 3,230.793 1,213,257 7,770,511
1933 68,336 581,078 219,094 286.678
New England States
1932 44,277 672,595 267,413 233,408
1933 13,033 113,635
All other States
48,204 203,070
1932 11,258 128.982
52,929 208,819
Included Above60,809
Egyptian cotton
25,850
11933 6,217
36.878
60,445
1932 6,427
27,558
12,198
29.738
1933 3,336
Other foreign cotton
28,276
5,166
33,714
1932 3.118
22,903
6,301
13,429
Amer.-Egyptian cotton__ 1933 1,150
6,249
7,127
10,573
713
1932
5,850
13,331
Not Included Abovej 1933 54,731 463,178 277,361
Linters
63,278
1 1932 52,174 501,707 323,160
52,451
16,752,042
16,506,850
6,041,556
5,933,090
623,082
832,922
Imports of Foreign Cotton (500-lb. Bales).
April
Country of Production.
1933.
Egypt
Peru
China
Mexico
British India
All other
Total
9 Afos. End. Apr. 30,
1932.
1933.
1932.
6.124
49
609
8
502
45
12,319
598
639
89
1,996
179
50,010
3,410
39,966
8
1,607
742
39,619
2,074
4,874
20,427
13,328
1,313
7,337
15,720
95,743
81,630
Exports of Domestic Cotton Exclud ng Linters
(Running Bales-See Note for L niers).
April
Country to Which Exported.
WHOLESALE PRICES OF COMMODITIES.
Mar.
1933.
Census Report on Cotton Consumed and on Hand,&c.,
in April.
Under date of May 13 1933 the Census Bureau issued its
report showing cotton consumed in the United States, cotton
on hand, active cotton spindles and imports and exports of
cotton for the month of April 1933 and 1932. Cotton consumed amounted to 470,685 bales of lint and 54,731 bales of
linters, compared with 494,167 bales of lint and 50,082 bales
of linters in March 1933 and 366,481 bales of lint and 52,174
bales of linteres in April 1932. It will be seen that there is
an increase over April in 1932 te the total lint and linters
combined of 106,761 bales, or 25.50%. The following is the
official statement:
29,513,246 30,328,536
7,551,503
9,936,773
8.379,974
8,330,155
8,438,799
8,403,401
7,671,801
7,019,217
6,476,191
6.658.913
6,495,708
6.337,570
May 20 1933
cording to statistics released by the Rubber Manufacturers
Association. Consumption for April 1932 was reported to
be 27,518 long tons. Consumption for first four months 1933
amounted to 88,817 long tons as compared with 118,492
longs tons for same period 1932.
The Association reports imports of crude rubber for April
to be 19,459 long tons, a decrease of 30.2% under March
and 47.4% below April 1932. Total domestic stocks of
crude rubber on hand April 30 are estimated at 382,167 long
tons, which compared with March 31 stocks of 390,135 long
tons. April stocks show a decrease of 2.0% as compared
with March of this year, but were 11.4% above the stocks
of April 30 1932.
The participants in the statistical compilation report 30 745 long tons of crude rubber afloat for the United States
ports on April 30, compared with 29,531 long tons afloat
on March 31 this year, and 40,387 long tons afloat on April
30 1932.
April reclaimed rubber consumption is estimated to be
4,407 long tons, production 4,617 long tons, and stocks on
hand April 30, 14,370 long tons, according to the Association.
United Kingdom
France
Italy
Germany
Spain
Belgium
Other Europe
Japan
China
Canada
All other
9 Mos. End. Ayr. 30.
1933.
1932.
63,664
36,733
47,900
130,063
23,057
7,775
44,165
50,919
7,883
12,144
10,347
107,798 1,117,474 1,091,275
718,254
51,580
385,074
54,695
628,489
541,567
104,611 1,422,545 1,344,296
25,472
253,130
231,458
5,800
145,553
114,755
30,174
399,630
302,570
74,970 1,362,241 2,040,013
233,061
50,285
963,404
131,082
15,847
146.268
109,725
23,322
236,316
1933.
1932.
Total
436,450
544,563 6,521,184 7,396,996
Note.-Linters exported, not included above, vere 15,275 bales dud ig Apriiiin
1933 and 9,355 bales in 1932; 124,763 bales for the nine months ending April 30.1n
1933 and 89,084 bales In 1932. The distribution for April 1933 follows: United
Kingdom, 4,019; Netherlands, 717; Belgium, 338: France, 2,023; Germany, 6,909;
Italy, 250; Canada, 714; Latvia. 125; Spain, 10; Panama, 70; South Africa, 100.
WORLD STATISTICS.
The world's production of commercial cotton, exclusive of linters, grown in 1932, as
compiled from various sources, was 22,771,000 bales, counting American in running
bales and foreign in bales of 478 pounds lint, while the consumption of cotton (exclusive of linters in the United States) for the year ending July 31 1932 was approximately 22,896,000 bales. The total number of spinning cotton spindles, both
active
and idle, Is about 161,000,000.
Financial Chronicle
Volume 136
Statistical Position of Leather Industry Much Improved Following 100% Rise in Hide Prices,
According to David G. Ong, President of United
States Leather Co.
David G. Ong, President of the U. S. Leather Co., said, on
May 10, that the recent 100% rise in hide prices marks the
first important turn for the better which has taken place in
the leather industry since 1927.
Mr. Ong stated that the betterment of prices had gone a
long way to pull the entire hide and leather industry-from
the sattleman to the retailer of shoes and other leather
products-out of the morass of depression. Tanners and the
leather companies, he added, have greatly benefited from
the increase in value of their inventories. Banks also find
their loans in healthier condition. Continuing, Mr. Ong also
said:
The position of the hide and leather industry is one of the best among the
major industries. This is to be expected because production, as well as consumption, of hides is automatically curtailed when general business slackens.
But to-day we have an unusual condition in which actual consumption of
leather is much greater than production.
In 1926, which is often designated as a "normal" year, domestic production of cattle hides totaled 19,058,000 hides. Domestic consumption
totaled 22,545,000. For the past three years the production and consumption figures were: In 1930, 15,880,000 hides were brought to market
against consumption of 15,573,000; in 1931, 14,250,000 against 14,254,000;
and in 1932, 12,759,000 against 13,058,000. In other words, the surplus
of production over consumption in 1930 was 107,000 hides. In 1931, the
two were about balanced. But in 1932 there were nearly 100,000 more
hides consumed than were produced.
Raw cattle hides in all hands in the United States have also been reduced.
At the end of March 1932 there were 4,332,000 pieces on hand; at the end
of March 1933 the figure was 3,646,000, a decrease of 686,000 pieces.
This improvement in the statistical position of the industry has been
reflected in recent improvement of prices on the hide division of the Commodity Exchange, Inc. Against a price of 4%c. a pound for heavy native
steers (Chicago packer hides), which was touched in the first week of
March, the present price is 9%c. a pound. This advance of over 100% is
large in temis of percentage, but in terms of dollars and cents the gain is
not so great. Figures compiled by Edward L. McKendrew, Vice-President
of Coimnodity Exchange, Inc., and an authority on the hide market, show
that a low point of 9%c. a pound for native steers was touched only twice
before in the Twentieth Century-on March 1 1908 and April 1 1921.
In effect, the recent advance has simply carried prices of native steers
to a point where, at their new high for 1933, they are now touching the
bottommost points reached in the 1907-1908 and 1921 depressions.
Census Report on Cottonseed Oil Production
During April.
On May 12 the Bureau of the Census issued the following statement showing cottonseed received, crushed and on
hand, and cottonseed products manufactured, shipped out,
on hand and exported for eight months ended April 30 1933:
COTTON SEED RECEIVED, CRUSHED AND ON HAND
(TONS).
State.
Received at Mills.*
Crushed
On Hand at Mills
Aug. 1 to ApriI30. Aug. I to April 30.
April 30.
1033.
Alabama
Arizona
Arkansas
California
Georgia
Louisiana
Mississippi
North Carolina
Oklahoma
South Carolina
Tennessee
Texas
All other States
1932.
1933.
1932.
253,650 364,778 234,100 347,031
27,706
48,343
34,588
41,339
357,917 522,366 317,691 458,021
48,896
70,042
48.525
75,044
330,574 435.420 294,254 414,747
174,092 247,969 162.412 241.617
506,977 715,623 447,660 650,215
232,244 251,569 220,517 238,379
349,362 375,967 349,275 334,342
212,978 226,548 207,409 218,449
406.260 482,327 325,790 405,033
1,406,243 1,617,490 1,362,283 1,427,302
56,159
75.861
56.549
73,818
1933.
1932,
29,644
216
48,034
5,626
46.497
14,018
83,614
10,506
39.890
7,864
89,835
219,228
25
18,416
7.053
54.942
5,198
22.052
7,004
66,489
14,197
40,420
9,004
77,622
203,347
2,0294
United Staten
4,363,056 5,443,303 4.067,053 4,925.337 594.997 127 718
•Includes seed destroyed at mills but not 300,024 tons and 24,784
tons on hand
47.827
tons
nor
and 37.642 tons reshipped for 1933 and 1932, respectively.
Aug. 1
COTTONSEED PRODUCTS MANUFACTURED, SHIPPED
OUT AND ON
HAND.
Item.
Season.
On Hand
Aug. I.
Produced
Aug. I to
April 30.
Shipped Out
Aug. I to
April 30.
On Hand
April 30.
Crude oil. lbs___ 1932 33 *29,523,581 1,263,946,800 1.195,682,540
*122,517.427
1931-32
8,086,071 1,555,951,926 1,476,351,371 118,132,055
Refined oil, lbs. 1932-33 a628,420,148 b1037310.406
4804,201,303
1931-32 277,836,530 1,306,501,305
705,371,493
meal,
1932-33
Cake and
114,656
1,838,240
1,731,443
221,453
1931-32
wns
146,888
2,214,851
2,204,720
157,019
1932-33
Hulls, tons
162,773
1.151,795
1,219.859
94,709
1931-32
47,723
1,390,218
1,230,889
207,552
Linters, running 1932-33
235,521
643,044
624,579
253,986
1931-32
bales
175,904
798,310
691,243
282,971
4,138
Hull fiber, 500- 1932-33
16,277
8,202
12,211
1931-32
lb. bales
3,564
31,574
29.671
5,467
Grabbots, motes
1932-33
&c., 500-lb.
15,250
22,848
23,223
14.875
1931-32
12,475
bales
28.437
20.672
20,24(
• Includes 4,182,006 and 15,387,967 pounds held by refining and manufacturing
establishments and 7,235,770 and 20,759,395 pounds In transit to refiners
and consumers Aug. 11032 and April 30 1933, respectively.
a Includes 4,652,177 and 5,176,834 pounds held by refiners, brokers, agents and
warehousemen at places other than refineries and manufacturing establishments,
nnd 5,598,691 and 3,426,770 pounds In transit to manufacturers of lard
oleomargarine, soap, &o.. Aug. 1 1932 and April 30 1933, respectively. substltute,
b Produced from 1,127,489,963 pounds of crude oil.
EXPORTS OF COTTONSEED PRODUCTS FOR EIGHT MONTHS ENDED
APRIL 30.
Rens-1933.
1932.
Oil, crude, pounds
30,659,637
30.182,052
Oil, refined, pounds
5,840,884
4,405,450
meal,
tons
of 2,000 pounds
Cake and
139,335
188,031
Linters. running bales
109,488
79,709
3435
Cotton Ginned from the Crop of 1982.
The Bureau of the Census will shortly distribute the annual
bulletin on Cotton Production in the United States from the
crop of 1932. The statistics were compiled from the individual returns collected from 13,570 active ginneries located
in 919 counties in 19 States. The final figures of cotton
ginned are 12,709,647 running bales, counting round as
half bales,equivalent to 13,001,508 bales of 500 pounds each.
The total as shown in the bulletin is 6,366 running bales
in excess of the preliminary figure issued on March 20. At
the March canvass the ginners reported the number of bales
ginned and furnished an estimate of the number,if any, that
they expected to gin thereafter. These estimates totaled
30,500 bales, for some ginneries amounting to as many as
400 bales. In order that the final figures of eotton ginned
might represent the actual condition, an additional mail
canvass was made of the ginneries showing considerable
quantities remaining to be ginned. In some instances the
ginners fell short of their expected ginnings, while in other
cases they handled a larger amount than estimated at the
March canvass.
The bulletin shows the ginnings by States and by counties.
It also shows the ginnings to specified dates throughout the
season by counties. These detailed figures are of local
interest and permit of a closer analysis of the statistics.
The following tabular statement shows the final figures of
cotton ginned by States for the last three crops. The quantities are given in both running bales, counting round as half
bales, and in equivalent 500-pound bales.
COTTON GINNED FROM THE CROPS OF 1932, 1931 AND 1930.
(Linters are not included.)
Running Bales
(Counting Round as Half Bates.)
State.
1932.
Alabama
Arizona
Arkansas
California
Florida
Georgia
Louisiana
Mississippi
Missouri
New Mexico_ _ _ _
North Carolina
Oklahoma
South Carolina_
Tennessee
Texas
Virginia
All other States a
933,756
67,135
1,283,432
124,361
15.580
861,789
599,473
1,161,188
300,695
67,485
680,279
1,072,022
722,229
467,491
4,307,383
31,360
13,989
1931. ' 1930.
1,385,021 1,444,886
150,545
110.922
1,836,132 863,443
171,238
256,337
43,405
51,118
1,393,715 1,597,475
876,593 704,750
1,719,454 1,458,488
280,367
153,337
93,762
95,841
771,186 800,582
1,235,856 856,748
1,010,271 1,015.273
577,994' .371.433
5,068,779 3,886,126
42,477
42,713
11,702
6,423
Equivalent 500-Pound Bales.
1932.
948,8541
69,193
1,326,556
129.371
15,151
854,357
610,509
1,179,781
306,835
69,868
663,359
1,083,713
716,225
480,353
4,501,800
31,165
14,418
1931.
1930.
1,419,689 1,473,287
115,061
155.409
1,906,736 874.356
176,560 263,766
43,164
50,306
1.392,665 1,592,539
899,922 714,529
1,761,203 1,464,311
288,991
150,955
98,124
98,462
756,294 774,734
1,261,123, 853,584
1,004,730; 1,000,892
594,512i 376,912
5,322,453 4,039,136
42,423
41,952
11,944
6.467
United States *12709647 *16628874*13755518 13,001,508 17,095,594113,931.597
a Includes Illinois. Kansas, and Kentucky.
•Includes 71,063 bales of the crop of 1932 ginned prior to Aug. 1 which was
counted in the supply for the season of 1931-32, compared with 7,307 and 78,188
bales of the crops of 1931 and 1930.
Niamomie.mmolmn•
Merger of National Raw Silk Exchange, Rubber Exchange of New York, National Metal Exchange
and New York Hide Exchange Under Name of
Commodity Exchange, Inc. Now Effective-Jerome
Lewine Elected President-Committees Also Named
-First Seat Sold at $2,000.
With the opening of business May 1, the order of consolidation signed by Justice Valente of the Supreme Court,
New York County, on Feb. 10 1933, was filed with the
Secretary of State of New York, officially launching the
new Commodity Exchange, Inc. as a consolidated corporation composed of the National Raw Silk Exchange, Inc.,
The Rubber Exchange of New York, Inc., National Metal
Exchange, Inc., and New York Hide Exchange, Inc. Each
member of the four constituent exchanges is now a member
of the Commodity Exchange, Inc. An announcement in
the matter also noted:
While the various constituent exchanges have now been formally consolidated, each of the constituent exchanges will continue trading in its
respective quarters pending occupation of the new Exchange rooms at 81
Broad Street. Each of the members of Commodity Exchange, Inc. is
entitled to full privileges of trading on each of these floors and members'
rates of commissions will be enjoyed by all the members of Commodity
Exchange, Inc. in respect to silk, rubber, hides, silver, copper and tin.
Work on the trading floor and executive offices for the consolidated
exchange in the International Telephone and Telegraph Building has progressed to the point where the Board of Governors confidently expect
that the Exchange will be in operation in its own quarters early in June.
At the first official meeting of the Board of Governors of Commodity
Exchange, Inc., held May 1 at the National Raw Silk Exchange, 58 Water
Street, Jerome Lewine, who has been Temporary Chairman of the members
of the four constitutent exchanges selected to compose the Board of Governors, was elected President to serve until the first annual election which
will take place on the third Tuesday in January,1934. Mr. Lewine has
been President of the National Raw Silk Exchange, Inc. J. Chester Cuppia, Paolino Gerli, Edward McKendrew, Ivan Reitler and Charles Slaughter were elected Vice-Presidents. Floyd Y. Reeler was elected Treasurer
and Walter Dutton, Secretary, with Alfred H. Rorndorfer, First Assistant
Secretary and Henry J. Fink and James J. Murphy, Assistant Secretaries.
Standing committees have been appointed by the Board of Governors
as well as by the Trade, Commission House and Non-Trade Groups of
the new Exchange.
3436
Financial Chronicle
The announcement noted that the following comprise the
Board of Governors divided as to the various groups of the
New Exchange, which will act until the first annual election:
HIde—Leo Arrstein, Milton R. Katzenberg, Edward L. McKendrew.
Fraser M. Moffat and Armand Sthmoll Jr.
Metal—Benno Elkan, Addison B. Hall, Irving J. Louis, Ivan Reitler,
and Martin H. Wehncke.
Rubber—Robert 13adenhop, William E. Bruyn, Marcus Rothschild.
Charles Slaughter and Charles T. Wilson.
Silk—Paolino Gerli, Frederic D. Huntington, Charles Muller, Paul A.
Salembier and Douglas Walker.
Commission Houses—Harold L. Bathe, J. Chester Cuppia, John L.
Julian, Floyd Y. Keeler and Jerome Lewine.
Non-Trade—I. Henry Hirsch, Kuo C. Li and Frank W. Lovatt.
Mr. Salembier was elected to the Board Silk Group to fill the vacancy
caused by the death of Alfred Lindenberg.
The announcement continued:
By-laws and rules for the new Exchange which were previously approved
by the Board of Governors were ratified and adopted by the membership
at the meeting May 1.
Those members of the Commodity Exchange who were members of the
constituent exchanges which had assets in excess of the amounts required
under the Consolidation Agreement will be entitled to receive a dividend
thereon. The amount of such dividends have not yet been determined.
The Board will liquidate the assets and satisfy the remaining liabilities of
the constituent exchanges and will distribute the surplus funds at the
earliest possible time.
Members of the new Exchange who were members of the Rubber and
Silk Exchanges will receive voting trust certificates representing their
respective interests in the property at 119-121 Pearl Street, New York
City. These two exchanges conveyed their respective interests in
this property to Rust Corp., the stock of which has been issued to the following voting trustees: J. Chester Cuppia, William A. Overton, Samuel
Swerling, Floyd Y. Keeler, Alfred H. Korndorfer and Charles Muller. The
voting trustees will issue to those who were members of the Rubber and
Silk Exchanges a voting trust certificate representing one share of stock
for each membership owned. .. .
The membership of the new Exchange is limited to 1,031 members and
the only memberships which are available for purchase are extra memberships held by various present members. Recent trading activity has increased the demand for memberships with the result that a special committee, headed by Harold L. Bache, has been designated to negotiate for
extra memberships sought by members of the New York Stock. NewYork
Cotton and other exchanges. including the Chicago Board of Trade.
It is announced that Jerome Lewine, President, J. Chester
Cuppia, Paolino Gerli, Charles Slaughter, Edward L. McKendrew and Ivan Raider, Vice-Presidents, have been
elected to comprise the Executive Committee of Commodity
Exchange, Inc. Mr. Lewine is Chairman, ex-officio, of the
Executive Committee. It is further stated:
The Finance Committee consists of Floyd Y. Keeler, Chairman, exofficio; Leo Arnstein, Paul Salembler, Martin H. Wehncke and Charles
T. Wilson.
The Committee on Business Conduct consists of I. Henry Hirsch, Chairman; J. Chester Cuppia, Claude Douthit, Arthur L. Dunn, Leon B. Lowenstein, George R. Siedenburg and Erwin Vogelsang.
The Committee on Admissions for the Hide Trade Group consists of
Fraser M. Moffat, Chairman; James P. Clarendon, Howard H. Dietrich,
'Claude Douthit and Lester A. Strasser.
The following have been named as the Committee on Admissions of the
Metal Trade Group: A. B. Hall, Chairman: S. K. Butterworth, B. N.
Jackson, E. J. Schwabach and E. Vogelsang.
The Committee on Admissions for the Rubber Trade Group consists of
Marcus Rothschild, Chairman; Robert L. Baird, Lawrence G. Odell, Joseph
S. Rodenbough and Charles T. Wilson.
The Committee on Admissions for the Silk Trade Group consists of Paul
A. Salembier, Chairman; Adolph J. Berner, George F. Fisher, Allan MacFarien and Milton K. Yorks.
A previous item regarding the Commodity Exchange
appeared in these columns March 25, page 1984.
Sale by Federal Farm Board of Cotton Holdings of
Cotton Stabilization Corporation—Bids on 19,306
Bales Asked—In Case of 2,800 Bales Bids Not
Accepted—Average Price Nine Cents Per Pound.
At the sale in New Orleans on May 16 of the remaining
holdings of cotton (19,306 bales) belonging to the Cotton
Stabilization Corporation, bids on 2,800 bales which are
located in Genoa, Italy, were not accepted. The cotton
disposed of brought prices averaging better than nine cents
per pound basis American ports, according to New Orleans
advices May 16 to the New York "Journal of Commerce,"
which stated that the total realized was approximately
$775,000. The sale was effected by the American Cotton
Co-operative Association, said the paper quoted, which
also stated:
Buyers were firm in foreign markets where the cotton is stored. They
were: Cotton at Dunkirk, France, S. A. R. L. Caulliez Freres, 200 bales;
H. G. & D. Dufour, 1.000 bales; S. A. Des Etab. Alb. Masurel & Co., 599
bales; Filature Fremaux, 348 bales; Filature De St. Sever, 300 bales;
Zeller Freres & Co.. 100 bales; at Shanghai, China, Volkart Bros.' Agency,
12,000 bales; at Lodz, Poland, N. Ejtington & Co.,Textil A.0.299 bales;
at Venice, Manifattura Festi Rasini, 380 bales; at Genoa, Crump & Co.,
30 bales, and Cotonifcicio Fratelli Pozzi, 1,250 bales. Bids rejected were
on cotton in Genoa.
The following is the announcement made on May 17 by
the Federal Farm Board regarding the bids accepted:
Henry Morgenthau, Jr., Chairman, Federal Farm Board and Governordesignate of the Farm Credit Administration, announced to-day (May 16
1933) that bids have been accepted on the sale of 16,506 bales of cotton
offered for sale in accordance with his announcement made on Friday,
May 12 1933. In this announcement it was stated that the remaining
19.306 bales of cotton belonging to the Cotton Stabilization Corporation,
May 20 1933
all of which is now in storage at various foreign locations, would be offered
for sale to the highest bidder on sealed bids May 16 1933.
Bids on the remaining 2,800 bales which are located in Genoa. Italy,
were not accepted.
Practically all of the cotton was sold to spinners in the foreign countries
in which it is stored. In accordance with the announcement made by Mr.
Morgenthau yesterday (May 15 1933), an equal number of bales of cotton
sold will be purchased in the United States and located at domestic points
In order that it may be more conveniently available for the Secretary of
Agriculture, who is to acquire and use the cotton in accordance with the
provisions of the Agricultural Adjustment Act.
While a brief reference to the proposed sale of the cotton
appeared in our issue of May 14 (page 3248), we give herewith the announcement issued May 12 by the Farm Board:
Henry Morgenthau,Jr., Chairman of the Federal Farm Board,announced
to-day(May 12 1933) that the last remaining stocks of cotton of the Cotton
Stabilization Corporation, consisting of 19,306 bales, all of which are in
storage at various foreign locations, have been offered for sale to the highest
bidder on the basis of sealed bids. The bids will be received at the office
of the Cotton Stabilization Corporation in New Orleans and will be opened
at 11:00 a.m. Tuesday, May 16 1933. The Corporation has reserved the
right to reject any bids.
The bulk of this cotton, 12,000 bales, is in storage in Shanghai. China,
but there are also consignments at Genoa and Venice, Italy; Dunkirk,
France, and Lodz and Gdynia, Poland.
Since storage and carrying charges have been constantly accruing on this
foreign consignment cotton ever since it was shipped abroad last year, Mr.
Morgenthau and his associates in the Farm Board thought it wise to dispose of it, so that the affairs of the Cotton Stabilization Corporation may
be completely liquidated. All other remaining stocks of the cotton of the
Corporation are in process of delivery to the Red Cross for relief purposes,
as directed by Congress. The cotton on foreign consignment was not
available for that purpose.
The only other cotton to which the Farm Board has a claim Is that pledged
as collateral in the 1930-31 season by the American Cotton Co-operative
Association and the Staple Cotton Co-operative Association. There are
1,557,000 bales of this cotton, upon which the Farm Board made loans to
permit advances to growers of 90% of the market value at the time the
advances were made in the case of the American Cotton Co-operative Association cotton, and 80% in the case of the Staple Association cotton.
The loss to the Farm Board's revolving fund through the operations of the
Cotton Stabilization Corporation is estimated at approximately $94.000.000.
The terms of sale of the foreign cotton as announced by the Farm Board
are as follows:
"Bids will be received on units of 100 bales or more at each location, terms
based on buyer's call July New York contracts fixations by May 2,5. Exwarehouse where located.
"Controller's landed weights.
"Gross weight tare not to exceed nine bands and 3 9-16th per cent bagging.
"Grade and staple guaranteed, arbitration in usual markets, excepting
Shanghai. Shanghai stocks to be arbitrated if necessary by Department
of Agriculture, Bureau of Agricultural Economics, Washington.
"May delivery.
"Reimbursement New York funds on delivery."
The location and description of the cotton follows:
Location. Description.
Location. Description.
Dunitirk:
No. B-C.
No. B-C.
Shanghai:
149 Strict Middling
15-16 In.
2,000 Strict Middling
15-16 in.
2,398 Strict Middling
31-32 in.
4,000 Middling Bright
.14 in.
Genoa:
2,000 Middling Bright
15 161n.
30 Middling Bright
15-16 in.
2,000 Middling Bright
31-32 in.
550 Middling Bright
29-32 in.
2,000 Strict Middling
31-32 in
650 Middling Bright
31-32 In.
200 Strict Low Middling_ _31-32 in. Venice500 Middling
31-32 In.
250 Middling Bright
29-32 in.
1,550 SLM Bright
31-32 In.
100 Middling
15-16 in.
100 SLM Bright
15-16 In.
30 Middling Bright
34 in.
550 SLM Bright
1 In.
Lodz and Gdynia:
19,306 B-C.
1 in.
199 Strict Middling
31-32 in.
50 Good Middling
A further statement May 15 by the Farm Board said:
Last Friday May 121, Henry Morgenthau, Jr., Chairman of the Federal
Farm Board and Governor-designate of the Farm Credit Administration,
announced that the remaining 19,306 bales of cotton belonging to the Cotton
Stabilization Corporation, all of which Is now in storage at various foreign
locations, would be offered for sale to the highest bidder on sealed bids.
May 16 1933.
Because parts of this announcement were not printed in all the papers,
there has been some uncertainty as to the purpose of selling this cotton.
which is now piling up carrying charges in foreign ports and which is unavailable for use in connection with the cotton options to be given to growers by the Secretary of Agriculture under the Agricultural Adjustment Act.
This cotton or its equivalent, like all other cotton covered by the Agricultural Adjustment Act, will of course be turned over to the Secretary of
Agriculture and handled strictly in accordance with the terms of that legislation. This,like other adjustment sales and purchases which will have to
be made from time to time, is being made in order to protect the Government's interests without altering its position in cotton as of the date the Act
was enacted. Accordingly, in this, as in other like cases, the cotton in
foreign ports when sold will inunediately be replaced in the regular way by
a like amount of cotton which will be more conveniently located.
Activity in Domestic Cotton Mills at Highest Rate in
Several Years, According to New York Cotton
Exchange Service.
Domestic cotton mill activity has made marked upward
advances during the past few weeks, and is now at the highest rate In several years, according to the New York Cotton
Exchange Service, wrhich, under date of May 15, continued:
During the first part of May cotton mills operated at about 100 (19221927 equals 100), as against an average of 92 in April, 61 in May last year,
86 two years ago, 86 three years ago, and 119 four years ago. The present
rate of cotton mill activity is the highest since January 1930, when business
activity and manufacturing production were just beginning to feel the economic depression.
The present cotton mill rate of 100% compares with 103 in January 1930,
and 119 in May 1929, when general business activity reached its peak and
began to decline. General manufacturing production has registered considerable gain in recent weeks, but not as much as cotton mill activity.
The index of general manufacturing during the first part of this month
Volume 136
Financial Chronicle
'was about 68 as against 103 in January 1930 and 128 at the peak in
May 1929.
Sugar Trading on New York Co-fee and Sugar Exchange
During Period from March 15 to May 15 Increased
100% as Compared with Same Period Year Ago.
The New York Coffee and Sugar Exchange reports that
for the two months' period from March 15, when the Exchange re-opened after the banking holidays, until May 15,
the volume of sugar trading on the Exchange shows a 100%
increase as compared with the same period last year. Exchange memberships have increased 50% in value and the
price of raw sugar has improved about 45%, according to
the Exchange. Coffee prices are about unchanged for the
period. Under date of May 15, the Exchange also reported:
Volume of sugar trading for the period from March 15 to May 15 of this
Year is approximately 2,100,000 tons, compared with 1,063,800 tons for
the same period in 1932. On March 15 of this year memberships were selling at $4,100, and since then have advanced to $6,000, at which price a
sale was made on Wednesday. On March 15 raw sugar, cost and freight,
New York, was selling at 96c. a pound compared with to-day's price of
about 1.38c.
Petroleum and Its Products-Administration Pushing
Measure Through Congress to Declare Two-Year
Federal Control of Industry-Stringent Penalties
Provided in Marland Bill-Oil Factors Non-committal on "Dictator" Policy.
Representative Marland of Oklahoma yesterday introduced in the House of Representatives a Bill, presumably
sponsored by the Administration, which would place the
petroleum industry under the direct control of Federal agencies for a two-year period, with stringent penalties provided
for violations by individuals or corporations of any restrictions imposed by the Federal referee.
As President Roosevelt this week took personal cognizance
of the chaotic conditions in the oil industry, there is little
doubt in the minds of Washington observers that the Marland Bill will pass through Congress as speedily as had other
emergency legislation requested by the President.
Salient points of the Marland Bill include authority for
the appointment of a Federal referee to allocate to each oil
producing stita a "fair share" of the general market; limitation of imports to a figure equal to the lay average )f imports during the last six months of 1932; authorization for
Secretary of the Interior Ickes ta estAblish minimum prices;
a tax of 50c. a barrel on all oil produced in excess of the
annunt ordered by Secretary Ickes; a fins )f $1,000 to $5,000
and or imprisonment for one to five years for individual
violators of regulations, and fines ranging from $5,000 to
$10,000 for corporations found guilty of violations. M x land, denying that there was any intention of establishing a
"dictatorship" in the petroleum industry, pointed out the
current difficulties facing the industry, which have apparently grown to such a point that they are insoluable by factors
within the industry itself.
Directors of the American Petroleum Institute, who were
in session yesterday at Tulsa, Okla., declined to speak
publicly on the impending Congressional action, but one oil
executive declared that "most of us would be willing to take
our chances with other industries in the general bill already
introduced, but singling out oil puts us right out in the
open, the target of all shots, and when the need for help
passes, repeal of the law might prove more difficult than
its enactment."
However, the latter sentiment expressing fear of continuance of Federal supervision is discounted by the provision
of the Marland Bill causing the measure to end automatically
at the termination of a two-year period.
Meanwhile, the past week brought no relief to the industry,
but rather added further to its troubles, due to continued
high production in East Texas, with production exceeding
1,000,000 barrels a day. One helpful factor, however, was
the fact that prices in East Texas have been generally
balanced on a 25e. basis, this price being adopted by practically all companies operating in that territory. However,
this price is not satisfactory to producers either in East
Texas or in other fields of the mid-continent. Producers
in fields in Oklahoma, Kansas, Ohio and Texas are shutting
down their wells by the thousand in protest against the
low prices.
With the prospects of Federal control now apparently a
certainty within the immediate future, all pending steps
being considered by public and private groups, boards, commissions, Sze., have been automatically brought to a standstill. The authority which would be vested in Secretary
Ickes permitting him to establish minimum prices is one of
3437
the most important Federal measures ever considered insofar
as oil is concerned.
Sentiment, not only among the A. P. I. directors but
among petroleum men as a whole, continues mixed concerning the benefits to be derived from Roosevelt's plan. There
seems to be a widespread tendency to hold off a final decision
until more definite information is known concerning the
limitations to be finally placed upon such Government supervision as may be established.
The States of Kansas, Texas and Oklahoma yesterday
agreed to conduct a concerted investigation of oil storage
facilities in their respective States, to ascertain the actual
facts of existing conditions. This action was brought on
by the charge of Governor Murray of Oklahoma that major
oil companies were beating down the price of crude so as to
fill "vast storage" at a low price, thereby benefitting greatly
when prices ultimately advance.
Aside from the readjustment of East Texas prices to a
25c. basis, there were no further price changes in crude
during the past week.
Prices of Typical Crudes per Barrel at Wells.
(All gravities where A. P. L degrees are not shown.)
$1.27 Eldorado, Ark.,40
.52
Bradford, Pa
.75 Rusk, Tex., 40 and over
.25
Corning, Pa
.47 Salt Creek, Wyo..40 and over....
.23
IllinoIs
.42 Darst Creek
as
Western Kentucky
Mid-Continent. Okla.. 40& above__ .25,Midland District. Mich
.70
Mitchinson, Tax., 40 and over__ .18 Sunburst, Mont
1.05
.75
Spindletop, Tex., 40 and over.... .25 I Santa Fe Springs, Calif., 40 & over
.25 Huntington. Calif.. 28
.75
Winkler,Texas
.20 1Petrolia. Canada
Smackover, Ark., 24 and over....
1.75
REFINED PRODUCTS-GASOLINE DEMAND IMPROVES B'UT
PRICES FAIL TO SHOW BENEFICIAL REACTION-LULL
DUE TO UNCERTAINTY OF FULL SCOPE OF FEDERAL
CONTROL-BUNKER
FUEL
OIL
ACTIVE-KEROSENE
PURCHASERS INACTIVE.
Gradual improvement in gasoline demand was noted during
the week, which was featured by the introduced of lubricated gasoline by Tide Water. This gasoline is being sold
at no advance over regular prices, and it is understood that
within the next month all of the major companies will be
offered the same inducement. This gasoline, containing a
certain amount of lubricant, is reported as giving excellent
service through its dual purpose of ignition and lubrication.
There has been a lull in the general movement of not only
stocks but of prices as well. This has been occasioned by the
uncertainty of the industry RS to how soon Federal supervision
will be enacted, and also as to how far such supervision will
extend. It seems probable, in view of yesterday's developments, that the immediate future will see the Government
assuming control of all phases of the petroleum industry,
with minimum prices established, strict production schedules
adopted and enforced, and a general tightening-up of all the
phases which have brought about the present situation.
Grade C bunker fuel oh has been moving actively at The.
a barrel for spot, in bulk, with a Sc. discount allowed ocean
vessels under contract. Diesel is steady and in fair volume,
and the price holds firm at $1.65 a barrel, at refinery.
Kerosene has been extremely dull, with 41-43 water whit,e
4e., tank car, as against posted prices
reported available at 43
of Sc. to 53.c.
There were no price changes posted this week.
Gasoline, Service Station, Tax Included.
5.15 New Orleans
New Yorz
5.145 Cleveland
5.128
.18 Philadelphia
Atlanta
19 Denver
.12
115 San Francisco:
Baltimore
.15 Detroit
17
Third grade
Boston
145 Houston
144
Above 65 octane... .185
195
Buffalo
.165 Jacksonville
133 Premium
Chicago
.12 Kansas City
219
.125 St. Louis
Cincinnati
.15 Minneapolis
.14
Kerosene, 41-43 Water White, Tank Car, F.O.B. Ltd. Refinery.
I
New
Orleans,
ex_
N. Y.(nayonne)S.05-.05i4'Chicago
3-.03)4
_
_
.
5.02
$.03%
North Texas
.03 I Los Aug..ex.. .04%-.06 'Tulsa
S.043-.03%
Fuel Oil, F.O.B. Refinery or Terminal.
Gulf Coast C
N. Y.(Bayonne)California 27 plus D
$.65
5.75-IOC/Chicago 18-22 0..42%-.50
Bunker C
$ .75
60 Philadelphia C
Diesel 28-30 D_
. _ 1.65 New Orleans C
.70
Gas 011, F.O.B. Refinery or Terminal.
N.Y.(Bayonne)'ChicagoTulsa
S.01%
23 plus G 0_$.03%-.041 32-36 G 0
$.013
U. S. Gasoline, Motor (Above 65 Octane), Tank Car Lots. F.O.B. Refinery,
N.Y.(Bayonne)Chicago
N. Y.(Bayonne)$.04-.04)4
Standard Oil, N.J.
Shell Eastern Pet_$.0434 New Orleans ex.. .05-.0534
Motor, U. S___$.04% New YorkArkansas
04-.0434
Motor,standard .05
Colonial-Beacon- .05 California
05-.07
Stand. Oil, N. Y. .05
z Texas
.0434 Los Angeles, ex_ .0434-.07
Tide Water 011 Co .05
.05
Gulf ports
Gulf
05-.0534
Richfield Oil(Cal.) .0634
Republic 011
.05 Tulsa
05-.0534
Warner-Quin. Co_ .0534
Pennsylvania _ __
.0534
is "Fire Chief," $.05.
Weekly Crude Oil Output Continues to Increase.
The American Petroleum Institute estimates that the
daily average gross crude production for the week ended
May 13 1933 was 2,733,850 barrels, compared with 2,648,850
barrels per day during the preceding week, a daily average
production for the four weeks ended May 13 of 2,390,350
barrels and an average daily output of 2,237,400 barrels for
the week ended May 14 1932.
Financial Chronicle
3438
Stocks of motor fuel at all points fell off 222,000 barrels
during the week ended May 13 1933 as compared with a
decline of 27,000 barrels during the previous week.
Reports received for the week under review from refining
companies controlling 91.6% of the 3,856,300 barrel estimated daily potential refining capacity of the United States,
indicate that 2,243,000 barrels of crude oil daily were run
to the stills operated by those companies, and that they had
in storage at refineries at the end of the week, 32,880,000
barrels of gasoline and 123,308,000 barrels of gas and fuel
oil. Gasoline at bulk terminals, in transit and in pipe lines,
amounted to 20,334,000 barrels. Cracked gasoline production by companies owning 95.4% of the potential charging
capacity of all cracking units, averaged 478,000 barrels daily
during the week.
The report for the week ended May 13 1933 follows in
May 20 1933
to 200,000 barrels In March. The upward trend of production in Kansas
was continued, whereas Louisiana produced more oil in March than for
any month since January 1931.
The substantial gain in crude production, only partially offset by an
Increase in demand, was reflected in crude stocks, which increased 6,648,000
barrels during the month. Total stocks of all oils were increased by 8,114,000
barrels, reaching a total of 593,096,000 barrels on March 31.
Daily average crude runs to stills showed a small increase, which, in
combination with a gain in percentage yield of gasoline, resulted in a
substantial rise in motor-fuel production. Both daily average exports and
domestic demand for motor fuel in March were substantially higher than in
February, but considerably below the levels of a year ago. The daily average
domestic demand for motor fuel was 911,000 barrels, or 4.5%, below the
average of March 1932. Stocks of motor fuel continued to Increase, amounting to 60.556,000 barrels on March 31. Because of seasonal Influences, the
daily average domestic demand for both kerosene and fuel oil decreased in
March. Stocks of kerosene were increased, but fuel-oil stocks showed a
small decline.
The refinery data of this report were compiled from refineries with an
aggregate daily recorded crude-oil capacity of 3,499,735 barrels. These
refineries operated during March at 63% of their capacity, given above,
or the same ratio as recorded for February.
SUPPLY AND DEMAND OF ALL OILS.
(Including wax, coke, and asphalt in thousands of barrels of 42 U. S. gallons.)
DAILY AVERAGE PRODUCTION OF CRUDE OIL.
(Figures in Barrels of 42 Gallons Each.)
Mar.
1933.
Week
Ended
May 13
1933.
Week
Ended
May 6
1933.
Average
4 Weeks
Ended
May 13
1933.
484,200
115,950
43,700
49,600
21,200
157,750
58,550
807,600
73,550
49,750
27,450
29,950
114,750
42,250
87,750
16,400
30,950
5,900
2,650
38,050
477,900
407,100
117,050
47,000
51,300
22,800
161,250
58,600
807,750
54,500
50,250
28,400
30,100
115,450
41,150
91,700
16,600
30,950
5,900
2,400
36,000
472,600
421,650
116,000
45,700
51,250
22,650
159,150
58,450
541,350
54,500
47,550
28,450
30,150
114,750
41,000
88,350
16,750
30,500
5.500
2,450
36,100
477,200
Oklahoma
Kansas
Panhandle Texas
North Texas
West Central Texas
West Texas
East Central Texas
East Texas
Conroe
Southwest Texas
North Louisiana
Arkansas
Coastal Texas (not incl. Conroe)
Coastal Louisiana
Eastern (not including Michigan)
Michigan
Wyoming
Montana
Colorado
New Mexico
California
Week
Ended
May 14
1932.
442,800
96,450
51,650
50,000
25.450
184.300
56,850
332,900
New SupplyDomestic:
Crude petroleum
Daily average
Natural gasoline
Benzol b
Total production
Daily average
Imports:
Crude petroleum
Refined products
Total new supply, all olis
Daily average
55,300
29,500
34,400
112,450
37,600
107,800
17,900
35,900
7,050
3,200
36,400
519,500
DemandTotal demand
Daily average
Exports:
Crude petroleum
Refined products
Domestic demand
Daily average
Excess of daily average domestic
production over domestic::demand
2.733.850 2.648.850 2.390.350 2.237.400
Total
Note.-The figures indicated above do not include any estimate of any oil which
might have been surreptitiously produced.
CRUDE RUNS TO STILLS, MOTOR FUEL STOCKS AND GAS AND FUEL
OIL STOCKS, WEEK ENDED MAY 13 1933.
(Figures in barrels of 42 gallons each.)
Daily Refining Capacity
of Plants.
Crude Runs
to Stills.
District.
644,700
144,700
434,900
459,300
315,300
555,000
146,000
89,300
152,000
915,100
Total.
%
99.1
95.0
97.5
84.9
56.4
97.7
97.3
88.5
90.8
94.6
%
Daily OperAverage. ated.
483,000
97,000
310,000
214,000
92,000
448,000
103,000
39,000
36,000
421,000
1,
1,
1
I bPts.4.....100CatT ,
LO CO CD N.J.
•—•
I 0,;—,4,,in:46000;—,;Zi:C.
East coast
Appalachia's
Ind., Ill., Ky
Okla.,Ifans.,Mo.
Inland Texas_ _ _
Texas gulf
Louisiana gulf..
North La.-Ark
Rocky Mountain
California
t—co...co.o...co
coco-14.4.-.3.tooacc
Reporting.
Potential
Rate.
a Motor
Fuel
Stocks.
Gas and
Fuel Ott
Stocks,
16,653,000 6,405.000
2,142,000
876,000
8,543,000 3,689,000
4,968,000 3,057,000
1,591,000 2,134,000
5,698,000 6,035,000
1,524,000 1,920,000
319,000
591,000
1,319,000
641.000
13,964,000 97.960,000
Totals week:
May 13 1933_ 3,856,300 3,532,500 91.6 2,243,000 63.5 c56719000 123.308,000
May 6 1933 3,856,300 3,532,500 91.6 2,238,000 63.4 56,941,000 123,153,000
a Below are set out estimates of total motor fuel stocks on U.8. Bureau ot Mines
basis for week of May 13 compared with certain May 1932 Bureau figures:
A. P. L. estimate of B. of M. basis, week May 13 1933.b
58,220,000 barrels
U. S. B. of M. motor fuel stocks, May 1 1932.
68,811,000 barrels
U. S. B. of M. motor fuel stocks, May 31 1932
69,135,000 barrels
b Estimated to permit comparison with A. P. I. Economies report, which Is on
Bureau of Mines basis.
c Includes 32,880,000 barrels at refineries, 20,334,000 bulk terminals, in transit
and pipe lines and 3,505,000 barrels of other motor fuel stocks.
Crude Petroleum Production in March 8,113,000
Barrels Higher Than in Same Month in 1932Oklahoma Succeeds California as Second Ranking
Producing State-Inventories Continue to Gain.
According to reports received by the Bureau of Mines,
Department of Commerce, the production of crude petroleum
in the United States during March 1933 totaled 75,302,000
barrels, or a daily average of 2,429,000 barrels. This represents a gain of 249,000 barrels over the daily average of
the previous month and is 262,000 barrels above the average
of a year ago. The increased output in March resulted
principally from gains in production in Texas, Oklahoma
and Kansas; on the other hand, production in California
declined to the lowest level in more than 10 years and the
State was succeeded by Oklahoma as the second ranking
producing State. The Bureau further reports as follows:
Production in the East Texas field rose from about 450.000 barrels daily
on March 1 to about double that figure late in the month. The average
for the month was 560.000 barrels, compared with 380.000 barrels in
February. Daily average productoin in the Texas Gulf Coast Increased
from 130,000 barrels In February to 146.000 barrels in March. The major
portion of this gain was due to developments In the Conroe field, where
production averaged 39,000 barrels daily in March. The Oklahoma City
field, although shut down for about 10 days. showed a material gain In
output, which Increased from a daily average of 150,000 barrels In February
Increase in stocks, all °its
Stocks (End of Month)
Crude petroleum:
East of California
California c
Total refillable crude
Natural gasoline d_
Refined products c
Feb.
1933.a
Mar.
1932.
Jan-Mar. Jars-Mar,
1933.
1932.
75,302
2,429
2,771
88
78,161
2,521
61,029
2,180
2,543
88
83,660
2,274
67,189
2,167
3,198
117
70,504
2.274
200,329
2,226
8,190
271
208,790
2,320
196,557
2,160
9,688
344
208,589
2.270
3.803
1,506
83,470
2,693
2.369
1,615
87,644
2,416
4,840
4,028
79,372
2,560
9,003
4,296
222,089
2,468
11,595
11,114
229,298
2,520
8,114
1,097
123
4,987
409
75.356
2,431
66,547
2,377
79,249
2,556
217,102
2.412
228,889
2,515
2,137
5,418
67,801
2,187
1.886
4,480
60,181
2,149
2.090
7,051
70,108
2,282
5,960
16,214
194,928
2,166
5,579
19,973
203.337
2,234
334
125
12
154
36
301,799 295,092 329,144
39,909 39,968 42,259
341,708 335,060 371,403
3,548
3,397
4.035
247,840 246,525 257,594
801,799
39,909
341,708
3,548
247,840
329,144
42,259
371,403
4,035
257.594
593,096 584.982 633,032 593,096 633,032
Grand total stocks,all oils
246
244
Days' supply
248
246
252
Bunker oil (included above In do2.812
2,779
mestic demand)
3.499
R203
a ARA
a Revised. b Based upon production of coke reported to Coal Division by those
by-roduct coke plants that recover benzol proudcts. c California heavy crude and
residual fuel included under refined products. d Includes motor blends held at
natural gasoline plants.
PRODUCTION OF CRUDE PETROLEUM BY STATES AND PRINCIPAL
FIELDS.
(Thousands of barrels of 42 U. S. gallons.)
Feb. 1933.
March 1933.
Total.
Arkansas
California:
Kettleman Hills
Long Beach
Santa Fe Springs
Rest of State
Total California.-.
Colorado
Illinois
Indiana:
Southwestern
Northeastern
Total Indiana
Kansas
Kentucky
Louisiana-Gull Coast
Rest of State
Total Louisiana....
Michigan
Montana
New Mexico
New York
Ohio-Central & Eastern
Northwestern
Total Ohio
Oklahoma-Okla. C:ty
Seminole
Rest of State
Total Oklahoma
Pennsylvania
Tennessee
Texas-Gulf Coast
West Texas
East Texas
Rest of State
Total Texas
West VirginiaWyoming-Salt Creek
Rest of State
Total Wyoming....
U.S. total
nativity.
Total. Datly4s.
Jan.March
1933.
Jan.March
1932.
-2,713
2,947
949
30
821
29
1,846
1.925
1,509
8,135
13,415
87
314
60
62
49
262
433
3
10
1,611
1,963
1,472
8,061
13,107
74
263
57
70
53
288
468
3
9
5,252
6,013
4.675
25,1142
40,982
249
874
5,461
7,335
5,986
26,943
45,725
337
1,298
51
1
52
3,597
380
1,127
924
2.051
441
159
1,175
272
278
84
362
6,207
3,419
6.073
15,699
1,011
2
204
8
212
8,509
1,488
2.560
2,378
4,036
1,337
593
3.401
918
869
256
1,125
10,065
11,487
18,054
39,606
3.078
1
9.394
16.388
29,427
21.412
76,591
163
2,051
1,388
3.438
106,557
44
1
45
2,806
336
920
739
1,659
381
136
1.024
240
249
69
318
4,204
3,040
5,566
12,810
902
2
--_ _
2
100
12
33
26
59
14
5
37
g
9
2
11
150
109
199
458
32
4,521
4,974
17,360
7,217
34,072
286
633
347
980
2
116
12
36
30
86
14
5
38
9
9
3
12
200
110
196
506
33
146
160
560
233
1,099
9
21
11
32
3,628
4,577
10,845
6,127
24,977
262
566
302
868
130
163
380
210
892
9
20
11
31
143
3
146
9,336
1,154
3,083
2,539
5,822
1,269
464
3,202
765
800
239
1,039
13,632
9,863
17,496
40,991
2,887
1
11,963
14,511
38,452
20,009
84,935
842
1.865
993
2,858
75,302
2,420
61,029
2,180
200.329
NUMBER OF WELLS COMPLETED IN THE UNIfED STATES.a
March
1933.
011
Gas
Dry
480
57
284
February
1933.
485
78
312
March
1932.
664
94
245
Jan.-Mar,
1933.
Jan.-Mar.
1932.
1,610
211
862
1,881
318
631
2,830
873
827
1,003
2,683
a From "011 dr Gas Journal" and California office of the American Petroleum
Institute.
Total
March Production of Natural Gasoline 13% Below a
Year Ago-Inventories Show a Further Gain.
Although the total production of natural gasoline in
March was nearly 10,000,000 gallons higher than in February, the daily average output declined 60,000 gallons,
reports the United States Bureau of Mines, Department of
Commerce. Gains in output in March were recorded in the
East Texas, Panhandle, Oklahoma City, and other fields,
but these were balanced by decreases in California and other
States. Production in March 1933, was 13% below that
in March 1932, and the cumulative for the past three months
of 1933 was 15% below 1932. In spite of the decline in production, stocks continued to increase and totaled 31,594,000
gallons on March 31, compared with 27,343,000 gallons on
hand the first of the month.
on the actual movement of metal into consumptive channels,
and appear to be satisfied that shipments are going forward
in such volume as to remove all doubt that may have existed
regarding the extent of tne trade revival. Toward the
close of the period operators felt more encouraged over
the European political outlook. Activity in major metals,
taken as a whole, was wall maintained considering the
recent heavy buying. Copper advanced to 7c., delivered
Connecticut, a new high for the movement. Lead and
zinc prices were about unchanged, but firm. Tin sold off
from the high established early in the week, yet scored
a small net gain for the period. Silver weakened on liquidation by speculators. The same publication says:
PRODUCTION OF NATURAL GASOLINE (THOUSANDS OF GALLONS).
Stocks End of Mo.
Production.
Jan.March
1932.
March
1933.
6,000 18,700 22,400
2,300
2,000
800
25,400 84,000 102,800
7,300
6,200
2,100
25,200 83,600 91,500
3,500 10,200 13,500
5,100
3,800
1,100
4,300 14,100 14,800
38,400 121,100 147,500
6.059
599
9,926
611
9,781
793
114
1,096
2,715
4,065
230
7.694
356
9,954
831
103
1,075
3.035
116,400 106,800 344.000 406,900
4,470
3,820
3.810
3,750
9,688
8,190
2,543
2,771
106
91
91
89
31,594
27,343
"iii
651
6,300
Appalachian
700
Illinois. Kentucky,Indiana_
29,800
Oklahoma
1,900
Kansas
29,900
Texas
3,200
Louisiana
1,300
Arkansas
4,900
Rocky Mountain
38,400
California
Total
Daily average
Total (thousands of bbls.)
Daily average
Jan.March
1933.
Feb.
1933.
March
1933.
Feb.
1933.
Portland Cement Shipments Exceeded Production in
April-Inventories Lower.
According to the United States Bureau of Mines, Department of Commerce, the Portland cement industry in April
1933 produced 4,183,000 barrels, shipped 4,949,000 barrels
from the mills, and had in stock at the end of the month
20,532,000 batrels. Production of Portland cement in
April 1933, showed a decrease of 23.6% and shipments a
decrease of 24.3%, as compared with April 1932. Portland
cement stocks at mills were 22.5% lower than a year ago.
In the following statement of relation of production to
capacity the total output of finished cement is compared
with the estimated capacity of 164 plants both at the close
of April 1933, and of April 1932.
RATIO (PER CENT) OF PRODUCTION OF CAPACITY.
Copper Steady at 7c.
Volume of copper sales held at about the same level as.in the preceding
two weeks, with the price advancing on Friday to a 7c. delivered Connecticut
basis. Although much of the buying was on the part of subsidiary companies, a fair proportion of the total business was for independent account.
Demand was particularly active early in the week. Beginning with
Tuesday, however, inquiry slackened, with the market becoming generally
Inactive yesterday. Some of the buying reflected immediate requirements
of consumers, but the bulk of the metal was sold for third-quarter shipment. Fabricators uniformly reported an improvement in the outlet
for their products, one stating that the business of the week was better
than for any similar period in the last year.
On Tuesday fabricators announced an advance of Hie. to )(a. on rolled
products, bringing their quotations up to a 7c. copper market basis.
The foreign market was fairly active throughout the seven-day period,
Dewith prices advancing from 6.60c. to 7.125c., c.i.f., over the week.
mand abroad will probably continue on a substantial basis. it is said.
maintain
to
as
so
output
control
will
as traders believe that producers
production and consumption about in balance.
Canada produced 17,165,922 pounds of copper during February. against
22,950,527 pounds in January, and 22,428,571 pounds in February 1932,
according to the Dominion Bureau of Statistics. The decline in production during February resulted from a strike at the mines and smelter
at Anyox, B. C. Blister production in Canada during February totaled
14,867,637 pounds, against 20,727,972 pounds in the preceding month.
World production of copper (smelter output) amounted to 975,515
metric tons in 1932, against 1,412,112 metric tons in 1931, according to
the periodic review of the "Metallgesellschaft." Production of copper
during 1932, by months, together with the daily rate of operations, as
reported by the German authority, follows
Daily Rate.
Metric Tons.
19323,069
95,135
January
3,026
87,754
February
2,857
88,578
March
2,442
73,246
April
2,446
75,834
May
2,600
77,999
June
2,684
83,196
July
2,431
75,353
August
2,579
77,368
September
2,691
83,423
October
2.506
75,165
November
2,660
82,464
December
Total
Apr. 1932. Apr. 1933.1 Mar. 1933. Feb. 1933. Jan. 1933.
The month
The 12 months ended..._
12.9%
27.6%
13.4%
27.1%
16.1%
26.7%
18.9%
26.2%
24.8%
41.7%
PRODUCTION, SHIPMENTS, AND STOCKS OF FINISHED PORTLAND
CEMENT, BY DISTRICTS, IN APRIL 1932 AND 1933. (IN THOUSANDS OF BARRELS).
Production.
District.
Total
1933.
Stocks at End
of Month.
Shipments.
1932.
1932.
1933.
1933.
....
WW
10.4.0,
We. W
000000000000
COIWWW0A,PO.WW
1932.
Eastern Pa., N. J., dr Md
New York & Maine
Ohio, Western Pa. & W. Va
Michigan
Wis., III., Ind. & Ky
Va., Tenn., Ala., Ga., Fla. & La_
Eastern Mo., Ia., Minn.& S. Dak
W.Mo.,Neb., KAM.,Okla.& Ark
Texas
Colo., Mont., Utah, Wyo.& Ida_
California
Oregon and Washington
1,027
195
218
161
276
493
389
386
372
114
500
52
1,720
522
520
259
611
537
591
505
368
126
554
223
1,058
271
417
149
386
589
403
548
347
134
547
100
5.478
4.183
6536
4 040 26 406 20.632
6,014
1,924
3,190
2,045
3,772
1,549
3,636
1,484
800
398
1,072
612
3,612
1,514
2,675
1,600
2,635
1,571
2,889
1,432
666
351
1,135
452
PRODUCTION, SHIPMENTS, AND STOCKS OF FINISHED PORTLAND
CEMENT BY MONTHS,IN 1932 AND 1933 (IN THOUS. OF BARRELS).
Production.
Month.
1932,
January
February
March
April
May
June
July
August
september
October
November
December
3439
Financial Chronicle
Volume 136
5,026
3,971
4,847
5,478
6,913
7,921
7,659
7.835
8,210
7,939
6.462
4,248
1933.
2,958
2,777
3,684
4,183
Shipments.
1932.
3,393
3,118
3,973
6,536
8,020
9,264
9,218
10.968
9,729
8.743
4,782
2,835
1933.
2,502
2,278
3.510
4,949
Stocks at End of
Month.
1932,
1933.
25,778
26,657
27,545
26.496
25,394
24,043
22,512
19,398
17,878
17,084
18.788
20,205
20,624
21,125
21,298
20,532
80,579
76,509
Total
reports for April
Note.-The statistics above presented are complied from
plants except four, for
received by the Bureau of Mines from all manufacturing
returns.
actual
of
which estimates have been included in lieu
Copper Advanced to 7c., Delivered, on Steady BuyingLead and Zinc Firm.
"Metal and Mineral Markets" for May 18 reports that
though some irregularity occurred in a few items in the
market for non-ferrous metals, the general trend of prices
for the week was upward. Producers are following reports
975,515
Lead Unchanged but Firm.
Demand for lead was rather quiet, contrasted with recent weeks, but.
with producers in a comfortable position, the undertone of the market
was firm throughout the period. The buying of lead that took place
late in April and early May removed a large tonnage from the market.
With production curtailed, it is now a question of only another month
or so before the statistics will, in the opinion of producers, show up to the
advantage of sellers. The April refined lead statistics, to be released
In the very near future, are expected to show little change one way or the
other, though it I: possible that a slight reduction in stocks took place
during the month.
American
The market held at 3.65c., New York, the contract basis of the
not
Smelting & Refining Co., and 3.525c., St. Louis. Most sellers were
though a few
at all anxious to part with metal beyond June shipment,
scattered lots of July did receive attention in the week's sales. Business
booked so far for May shipment lead brings the total up to 21,500 tons.
Slightly more than 17.000 tons have been sold for June.
Fair Zinc Sales.
Sales of zinc were in fair volume last week, with the upper level of the
some
price range holding at 3.75c., St. Louis. On Thursday, however,
metal was disposed of on the basis of 3.70c., and later in the week several
other lots sold at 3.725c.-the split of the 3.70c.©3.75c. range. Trading
was fairly active throughout the seven-day period until yesterday, when
Inquiry slackened materially. Sales for the calendar week ended May 13,
according to statistics circulating in the industry, total edabout 3,800 tons.
Tin Fairly Active.
Early in the week the market for Straits tin in New York touched 37c.
per pound, prompt shipment, a new high for the movement. Rumors to
the effect that the London pool may alter the agreement now in force in
connection with liquidating stocks brought out profit-taking in that market,
and prices weakened. The reports from abroad on the operations of the
"pool" referred to some of the smaller groups that have been operating to
support values, and not to the International Pool that controls 21,000 tons
of metal, according to advices received here late in the week. The smaller
groups, traders hold, h*e been selling metal on the recent rise, and the
technical position of the market remains firm. Buying of tin here was
fairly active all week, and yesterday Straits tin sold in good volume at
36.25c., a net gain of Xc. for the week.
Chinese tin, 99%, prompt shipment, was quoted as follows: May 11,
33.25c.; May 12, 33.25c.; May 13, 33.20c.; May 15, 32.20c.; May 16.
32.375c.; May 17, 33c.
Steel Output Reaches New High-Operations Increase
to 36% of Capacity-Pig Iron Price Again Advanced.
The upward swing of iron and steel demand has lost
some of its force, according to the "Iron Age" of May 18.
While buying continues to gain, the increase is at a slower
rate than heretofore. Tin plate is conspicuous because of
3440
Financial Chronicle
a further sizable increase in output, which now averages
65% of capacity, but steel specifications from the automobile industry, which have been the major factor in the
recent rebound in iron and steel requirements, have ceased
to expand materially. Orders from miscellaneous sources
continue to show encouraging growth, with better business
emanating from plate fabricators and fair initial releases
coming from the heretofore inactive farm equipment industry, yet it is doubtful whether further important gains
in steel output can be made without the support of the
railroads and the building industry, continues the "Age,"
further reporting as follows:
Fabricated structural steel awards, at 3,750 tons, are the smallest for
any week this year and compare with 4,700 tons in the previous week.
Structural shops in the Chicago district are operating at less than 10%
of capacity.
Hopes for construction tonnage are centered in the inauguration of a
vigorous public works program. It is now the President's move, in the
opinion of the steel trade, and there is genuine confidence that he will
make that move with characteristic promptness and energy. The belief
that action on public projects would be without immediate effect on the
steel industry is not well founded,since bids are in on a considerable number
of jobs and the signing of contracts is the only official step yet to be taken.
Railroad shops in the Middle West are commencing to take steel in a
small way, but purchases by the carriers are still at a low ebb. An Impending rail purchase by the New York Central will total only 7,000 tons.
While a proposed survey of railroad rolling stock is expected to disclose
that a large proportion of existing equipment is not worth repairing, there
are as yet no signs that the carriers will undertake extensive purchases
of either cars or locomotives.
Indications of a loss of momentum in iron and steel demand are already
reflected in scrap, always a sensitive commodity. The advancing tendency of scrap prices has not been universally checked, but signs of weakness have appeared at Cleveland and at Pittsburgh. A decline in heavy
melting grade at Pittsburgh has offset an advance at Philadelphia, leaving
the "Iron Age" composite price for steel melting scrap unchanged at
$9.83 a gross ton.
Prices in other primary materials continue to move upward. Pig iron
prices have been marked up 50c. a ton at Chicago: 50c. to $1 a ton at Cleveland and Lake furnaces, and $1 a ton at Pittsburgh and Youngstown.
The "Iron Age" composite price for pig iron has risen from $14.33 a week
ago to $14.41 a gross ton, its highest level since March 1932. Jackson
County producers have advanced silvery iron $2 a ton and Bessemer ferrosilicon $1.50 a ton.
Among finished products, reinforcing bars have been marked up $4 a
ton by various distributors. Further advances by the mills on various
products are in early prospect. New prices on wire and nails may be
announced shortly, and third-quarter quotations on sheets and strip will
soon be named.
The "Iron Age" composite price for finished steel is unchanged at1.867c
a pound.
The course of the steel production curve is still ascendant. Increases
are reported in the Valleys and the Wheeling district, as well as at Pittsburgh, Chicago, Cleveland, Birmingham and in eastern Pennsylvania.
The National average of ingot output now stands at 35%, compared
with 31% a week ago.
It seems doubtful whether the automobile industry, which has contributed so heavily to production increases to date, can be counted on to
life output to still higher levels. Nevertheless, motor car makers now
are confident of maintaining a good rate of operations for some time to
come. Their faith In the permanence of recent improvement is business
is reflected in preparations for capital improvements. Orders for $70,000
worth of machine tools, just placed by the Chrysler Corp., constitute the
first sizable purchase of such equipment since Ford retooled for the V-eight
car.
Great Britain's bilateral trade agreements are opening up prospects
for increased business in iron and steel. British pig iron producers look
for heavier orders from Denmark as a result of such a compact, and are
reported to be quoting prices below cost. The Continental Steel Cartel
has established selling agencies as follows: Steel bars at Luxemburg*
beams at Paris; semi-finished steel at Liege; plates and sheets at Dusseldorf.
THE "IRON AGE" COMPOSITE PRICES.
Finished Steel.
May 16 1933, 1.8870. a Lb.
(Based on steel bars, beams, tank plates,
One week ago
1.867c.I wire, rails, black pipe and sheets.
One month ago
1.8870.1 Thew products make 85% of the
One year ago
1.9700.1 United States output.
High
Low
1933
1.948c, Jan. 3
1.867c. Apr, 18
1932
1.977c. Oct. 4
1.928e. Feb. 2
1931
2.037c. Jan. 13
1.945e. Dec. 29
1930
2.273c. Jan. 7
2.0180. Dec. 9
1929
2.317c. Apr. 2
2.283e. Oct. 29
1928
2.2860. Dec. 11
2.217e. July 17
1927
2.402c. Jan. 4
2.212o. Nov. 1
Pig Iron.
May 16 1933, $14.41 a Gross Ton. Based on average of basic iron at Valley
One week ago
$14.33 furnace foundry irons at Chicago.
One month ago
Philadelphia, Buffalo, Valley and Bir13.68
One year ago
14.06
mingham.
High.
Low.
1933
$14.41 May 16
813.56 Jan. 3
1932
14.81 Jan. 5
13.56 Dec. 6
1931
15.90 Jan. 8
15.79 Dec. 15
1930
18.21 Jan. 7
15.90 Dec. 16
1929
18.71 May 14
18.21 Dec. 17
1928
18.59 Nov. 27
17.04 July 24
1927
19.71 Jan. 4
17.54 Nov. 1
Steel Scrap.
110 1
May 16 1933, 89.83 a Gross Ton.
(Based on No.
heavy melting atee
One week ago
99.831 quotations at Pittsburgh, Philadelphia
One month ago
7.871 and Chicago.
One year ago
7.411
High.
Low.
1933
$9.83 May 9
$6.75 Jan. 3
1932
8.50 Jan. 12
6.42 July 5
1931
11.33 Jan. 6
7.62 Dec. 29
1930
15.00 Feb. 18
11.25 Dee. 9
1929
17.58 Jan. 29
14.08 Dec. 3
1928
18.50 Dec. 31
13.08 July 2
1927
15.25 Jan. 11
13.08 Nov. 22
New bookings for finished steel were sufficiently heavy
last week not only to push up the steelworks operating rate
3 points to 36%, highest since June 1931, but also to build
moderate backlogs in some products and to defer deliveries,
stated the magazine "Steel" of May 15. This publication
further reported as follows:
May 20 1933
The virility of the rise in steel demand and production, initiated immediately following the bank holidays in March, convinces iron and steel
interests that the present improvement is deeper rooted than a belated
spring rise. Persistent buying by steelmakers in their efforts to accumulate
stocks of basic materials indicates the foundation is being laid for a long
upswing in operations, which seasonal conditions this summer will not
vitiate.
Steelworks operations in the Wheeling district last week led the country
with a rate of 65%. up 4 points. Cleveland was second at 54%,
a gain
of 6 points. Youngstown district advanced 10 points to 43%: Chicago,
134 to 31%; Pittsburgh. 2 to 24%: Birmingham, 6 to 20%; Philadelphia.
1 to 163,5%; Detroit and Buffalo districts held at 38%. Some tin plate
mills were operating at 100%, the average for all being 60.
Steelworks still are avid for scrap, but the rise in prices apparently
has slowed up for the present, for one reason because scrap prices have
practically caught up with pig iron. At Pittsburgh prices are definitely
weaker due to the long position of dealers. Following its recent purchaseof 89,000 tons of Southern By. scrap, Weirton Steel Co. has acquired
260.000 tons from the Baltimore & Ohio.
Heavier buying of pig iron has been induced by prospects for higher
prices. Chicago furnaces have advanced 50c. a ton; Pittsburgh and
Cleveland producers probably will move up this week. Lake blast furnaces have shipped more iron so far In May than in all April; bookings are
far ahead of the comparable period last month. Furnace coke is being
contracted for the remainder of the year. Chrome and magnesite brick
prices are up $2.50 to 67 per 1,000.
Sheet and stripmakers, some of whom now are equipped with backlogs.
for two to three weeks, believe the peak has not been reached in the buying
movement for automobiles, household equipment and miscellaneous requirements. The market for commercial steel bars, which enter into a
wider range of products than any other finished steel, has broadened to
include many lines of manufacture long idle.
This surge in steel mill activity is reflected in equipment orders, three
large strip mills having been purchased by independent steel companies.
And it also is evident in new requirements for manufacturing plants.
Repair orders for presses in the last two weeks at Cleveland have increased
300%; one builder has received inquiries for $3,000,000 worth of new
presses and repair work.
Plate, shape and pipe requirements have not responded as broadly
to the upswing in industrial conditions. At Pittsburgh, inquiries for 160
oil barges,requiring 40,000 tons of plates, are pending. The $3,000,000,000
Government construction program, nearing release, will revitalize Federal
and State bridge and highway work. Structural steel awards for the
week, 9,910 tons, include 6,000 tons additional for the San Francisco..
Oakland bridge.
The recent swift transition in steel demand is further Indicated by the
output of steel ingots for April, which at a daily average of 53,392 gross
tons, highest in 14 months, was up 61.7% over March. Total production
for the month was 1,334,797 tons, compared with 891,153 in March and
1.233,603 in April 1932.
"Steel's" iron and steel price composite this week is up 4c. to $28.33:
the finished steel composite is unchanged at $45.10, while the scrap composite has advanced 16c. to $9.16.
Steel ingot production for the week ended May 15 is
placed at approximately 344% of capacity, in the compilation by Dow, Jones & Co., which further reports as,
follows:
This compares with 3234% in the week before, and 2834% two weeks
ago. U. S. steel is estimated at 2934%' against 2734% in the previousweek and,a shade over 24% two weeks ago. Independents are credited
with a rate of 4035%. compared with 3834% in the preceding week and
a fraction over 32% two weeks ago. There should be a further increase'
in the current week as additions are being made to the rates at active
plants.
The following table gives the percentage of operation in the corresponding
week of previous years, with the approximate change from the week immediately preceding:
Industry.
1932.a
1931
1930
1929
1928
1927
44-2
75-1
96-1
82-234
80-1
U. S. Steel. Independents.
46 -2
80 ..._
100 88li-2Si
87 -2
42-2
70-2
93-1
78-2
7.1.-1
a Not available.
Bituminous Coal Output Continues Ahead of Corresponding Period in 1932-Anthracite Production
Declines.
According to the United States Bureau of Mines, Department of Commerce, there was little change in the trend of
coal production during the week ended May 6 1933. The
total output of bituminous coal is estimated at 4,810,000
net tons,compared with 4,824,000 tons in the preceding week
and 4,475,000 tons in the corresponding period in 1932.
Anthracite production in Pennsylvania during the week
under review is estimated at 664,000 net tons, as against
675,000 tons during the week ended Apri129 1933 and 968,000
tons during the week ended May 7 1932.
During the calendar year to May 6 1933 there were produced 102,212,000 net tons of bituminous coal and 16,156,000
tons of anthracite, compared with 110,942,000 tons of bituminous coal and 18,908,000 tons of anthracite during the calendar year to May 7 1932. The Bureau's statement follows:
MONTHLY PRODUCTION OF BITUMINOUS COAL AND AlITHRACITE.
IN APRIL (NET TONS).
Bituminous Coal.
Month.
Anthracite.
No. of Aver.Per
No. of Aver.Per
Working Working
Total
Total
Working Working
Dau.
Production. Days.
Production. Days.
Day.
March 1933._ 23,685.000
April 1933a._ 19.523,000
April 1932.... 20,300,000
a Revised.
27
24.7
25.7
877,000
790,000
790,000
4,519,000
2,891,003
5.629,000
27
24
25
167,400
120,500
225,200
Financial Chronicie
Volume 136
ESTIMATED UNITED STATES PRODUCTION OF COAL AND BEEHIVE
COKE (NET TONS).
Calendar Year to Date
Week Ended
Mag 6
1933.c
Apr. 29
1933.d
May 7
1932.
1933.
1932.
1929.
Xliturn. coal: a
Weekly total 4,810,000 4,824.000 4,475,000 102,212,000 110,942,000 185,544,000
Daily aver__ 802,000 804,000 746,000
956,000 1,039,000 1,734,000
Pa. endue.: b
Weekly total 664,000 675,000 968,000 16,156.000 18,908,000 25,712,000
243,700
179,200
Daily aver__ 110,700 112,500 161,300
153,100
Beehive cone:
321,800 2,168,200
Weekly total
11,200
11,000
317,100
9,900
20,076
2,936
2,980
• Daily aver__
1,867
1,833
1,650
a Includes lignite, coa made into coke, local sales, colliery fuel. b Includes
Sullivan County, washery and dredge coal, local sales and colliery fuel. c Subject
to revision. d Revised.
ESTIMATED WEEKLY PRODUCTION OF COAL BY STATES(NET TONS)
Week Ended
State.
Apr. 29
1933.
Apr. 22
1933.
Apr. 30
1932.
May 2
1931.
April
Average,
1923.
a
228,000
412,000
Alabama
151,000
149,000
151,000
Arkansas and Oklahoma
30,000
70,000
14,000
13,000
13,000
94,000
184,000
Colorado
74,000
73,000
73,000
685,000 1,471,000
Illinois
85,000
445,000
498,000
223,000
514,000
Indiana
176,000
133,000
190,000
100,000
Iowa
52,000
42,000
43,000
58,000
138,000
Kansas and Missouri
68,000
81,000
71,000
61,000
Kentucky-Eastern
531,000
620,000
384,000
393,000
376,000
188,000
Western
127,000
113,000
97,000
102,000
35,000
52,000
Maryland
28,000
24,000
22,000
Michigan
2,000
22,000
8,000
1,000
1,000
32,000
42,000
Montana
29,000
28,000
25,000
New Mexico
28,000
59,000
16,000
21,000
17,000
North Dakota
19,000
16,000
19,000
16,000
18,000
Ohio
766,000
322,000
87,000
251,000
212,000
Pennsylvania (bituminous) 1,355,000 1,260,000 1,478,000 1,814,000 3,531.000
86,000
121,000
Tennessee
49,000
57,000
53,000
Texas
11,000
20,000
9,000
14,000
14,000
38,000
70,000
Utah
40,000
35,000
38,000
167,000
249,000
Virginia
127,000
157,000
134,000
Washington
35,000
29,000
33,000
18,000
' 18,000
West Virginia-Southern b 1,055,000
972,000 1,170,000 1,313,000 1,256,000
Northern c
455,000
778.000
460,000
293,000
269,000
116,000
Wyoming
84,000
71,000
62,000
59,000
Other States
4,000
6,000
3,000
1,000
2,000
Total bituminous
Pennsylvania anthracite
Total coal
4,824,000 4,634,000 4,717,000 6,490,000 10,836,000
569,000 1,415,000 1,699,000 1,974,000
675,000
5 490 nna A 203 (inn 6132000 8.189.000 12.810.000
a Average weekly rate for the entire month
b Includes operations on the
N. & W.: C. dr O.; Virginian: K.& M.: and B. C. dr G. c Rest of State, including
Panhandle.
Anthracite Shipments Again Off During April 1933.
Shipments of anthracite for the month of April 1933, as
reported to the Anthracite Institute, Primos, Pa., amounted
3441
to 2,460,919 net tons. This is a decrease as compared
with shipments during the preceding month of March of
1,404,883 net tons, and when compared with April 1932
shows a decrease of 2,552,990 net tons. Shipments by
originating carriers (in net tons) are as follows:
April 1933 Mar. 1933 April 1932 Mar. '32
Month of-
462,587
393,910
189,216
280,282
274,370
284,278
256,610
195,409
124,257
Reading Co
Leahigh Valley RR
Central RR.of New Jersey
Delaware Lackawanna & Western RR_
Delaware & Hudson RR. Corp
Pennsylvania RR
Erie RR
New York Ontario & Western Ry
Lehigh & New England RR
Tntn1
747,337
598,857
309,250
479,049
436,205
492,615
359,295
272,058
171.106
991,116
785,844
448.410
659,653
680,642
516,375
423,960
244,179
263,730
780,142
616,687
390,407
601,341
595,304
523,388
351,760
257,646
196,364
246091e 3.865.802 5.013.909 4.313.039
Decreases Reported in Both Employment and Wages
in Pennsylvania Anthracite Collieries by Philadelphia Federal Reserve Bank.
The volume of employment in anthracite mines in Pennsylvania decreased over 5% and the amount of payrolls declined over 23% from March to April, according to indexes
compiled by the Philadelphia Federal Reserve Bank from
reports received by the Anthracite Institute from 141 collieries employing about 71,000 workers with a weekly payroll
of about $1,485,000. The Department of Research and
Statistics of the Bank, in noting the foregoing, continued:
The employment index in April was 50.3% of the 1923-1925 average,
or 26% lower than in April 1932: the payroll index was 31.3% of the threeyear average, or 48% below a year ago.
Monthly comparisons for the past two years are shown below:
(1923-1925 Average=100 )
Employment.
January
February
March
April
May
.lune
July
August
September
October
November
December
V....Way-m..7n
!Valle Payments.
1931.
1932.
1933.
1931.
1932.
1933.
88.3
87.1
79.9
82.9
78.3
74.2
63.4
65.5
77.8
84.4
81.2
77.7
74.2
69.3
71.7
68.1
65.1
51.5
43.2
47.8
54.4
62.1
61.0
60.6
51.1
57.2
53.1
50.3
75.0
85.5
59.6
63.1
63.9
55.9
45.0
47.2
54.4
76.3
66.6
65.6
51.5
48.0
51.3
60.4
48.6
31.4
29.0
34.6
39.4
56.0
42.7
47.1
36.3
47.7
40.9
31.3
in A
an A
63.2
45.0
Current Events and Discussions
The Week with the Federal Reserve Banks.
The daily average volume of Federal Reserve bank credit
outstanding during the week ending May 17, as reported
by the Federal Reserve banks, was $2,286,000,000, a decrease
of $62,000,000 compared with the preceding week and an
increase of $342 ,000,000 compared with the corresponding
week in 1932. After noting these facts, the Federal Reserve
Board proceeds as follows:
tion 18 of the Federal Reserve Act as amended by the Act of March 9 1933.
2. "Redemption fund-Federal Reserve bank notes," representing the
amount deposited with the Treasurer of the United States for the redemption of such notes.
3. "Special deposits-member banks" and "special deposits-nonmember banks," representing the amount of segregated deposits received
from member and non-member banks.
A new section has also been added to the statement to show the amount
of Federal Reserve bank notes outstanding, held by Federal Reserve banks
and in actual circulation, and the amount of collateral pledged against
outstanding Federal Reserve bank notes.
On May 17 total reserve bank credit amounted to $2,254,000,000, a
decrease of $43,000,000 for the week. This decrease corresponds with
decreases of $40,000,000 in money in circulation and $4,000.000 in unexpended capital funds, non-member deposits, &c., and an increase of $24,000.000 in Treasury currency, adjusted, offset in part by an increase of
$25,000,000 in member bank reserve balances.
Bills discounted decreased $6,000,000 at the Federal Reserve Bank of
Cleveland and $8,000,000 at all Federal Reserve banks. The Systems'
holdings of bills bought in open market declined $35,000.000, while holdings
of United States Treasury notes increased $6,000,000 and those of Treasury
certificates and bills declined a like amount.
Following the passage of the Act of May 12 making all coins and currencies coined or issued by or under authority of the United States legal
tender for all debts public and private, amounts formerly reported against
Items "Reserves other than gold" and "Non-reserve cash" have been combined and are now shown against item "Other cash" and the item "Total gold
reserves and other cash" has been substituted for "Total reserves."
Changes in the amount of reserve bank credit outstanding
and in related items during the week and the year ending
May 17 1933, were as follows:
Beginning with the statement of May 28 1930, the text
accompanying the weekly condition statement of the Federal
Reserve banks was changed to show the amount of Reserve
bank redit outstanding and certain other items not included
in the condition statement, such as monetary gold stocks and
money in circulation. The Federal Reserve Board's explanation of the changes, together with the definition of the different items, was published in the May 31 1930 issue of the
"Chronicle" on page 3797.
The statement in full for the week ended May 17, in comparison with the preceding week and with the corresponding
date last year, will be found on a subsequent pages, namely,
3485 and 3486.
Beginning with the statement of March 15 1933, new
items were included, as follows:
1. "Federal Reserve bank notes in actual circulation," representing
the amount of such notes issued under the provisions of paragraph 6 of sea-
Bills discounted
Bills bought
U. S. Government securities
Other Reserve bank credit
Increase (+) or Decrease (-)
Since
May 13 1933. May 10 1933. May 18 1932.
8
--8,000,000 --135.000,000
330,000,000
78,000,000 -35,000,000
+37,000.000
+171,000,000
1 837,000,000
-7.000,000
9,000,000
TOTAL RES'VE BANK CREDIT_ _2.254,000,000 -43,000,000
4,313,000,000
Monetary gold stock
1,929,000,000 +24,000,000
Treasury currency adjusted
Money in circulation
5 852,000,000 -40,000,000
Member bank reserve balances
2 114,000,000 +25,000,000
Unexpended capital funds, non-mem-4,000,000
ber deposits, &c
529,000,000
+266,000,000
+39,000,000
+130,000,000
+403.000,000
-78,000,000
+108.000,000
Returns of Member Banks in New York City and
Chicago-Brokers' Loans.
Beginning with the returns for June 1927, the Federal
Reserve Board also commenced to give out the figures of
the member banks in New York City, as well as those in
Chicago, on Thursday, simultaneously with the figures for
the Reserve banks themselves, and for the same week, instead
of waiting until the following Monday, before which time the
statistics covering the entire body of reporting member banks
in the different cities included cannot be got ready.
Below is the statement for the New York City member
banks and that for the Chicago member banks, for the
current weeks, as thus issued in advance of the full statement
of the member banks, which latter will not be available until
the coming Monday. The New York City statement, of
course, also includes the brokers' loans of reporting member
Financial Chronicle
3442
banks. The grand aggregate of brokers' loans the present
week shows an increase of $54,000,000, the total of these
loans on May 17 1933 standing at $618,000,000 as compared
with $331,000,000 on July 27 1932, the low record for all
time since these loans have been first compiled in 1917.
Loans "for own account" increased from $541,000,000 to
$594,000,000, while loans "for account of out-of-town banks"
remain unchanged at $17,000,000, and loans "for account
of others" increased from $6,000,000 to $7,000,000.
CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL
RESERVE CITIES.
New York.
May 17 1933. May 10 1933. May 18 1932.
Loans and investments-total
6,847,000,000 6.790,000,000 6,604,000,000
Loans-total
3,352,000,000 3,305,000,000 3,879,000,000
On securities
All other
000,000 in time deposits and $49,000,000 in borrowings from Federal
Reserve banks.
Loans on securities increased 835,000,000 in the New York district and
$17.000,000 at all reporting member banks. "All other" loans declined
$22,000,000 in the New York district and $17,000,000 at all reporting
banks, and increased $8,000,000 in the Chicago district.
Holdings of United States Government securities declined 816.000,000
in the Chicago district and increased $9,000,000 in the Philadelphia district, all reporting banks showing llttle change for the week. Holdings of
other securities increased $29,000,000 in the New York district and $31,000.000 at all reporting banks.
Licensed member banks formerly included in the condition statement
of reporting member banks in 101 leading cities, but not now included
In the weekly statement, had total loans and Investments of $711,000,000
and net demand,time and Government deposits of $650,000,000 on May 10,
compared with 8708,000,000 and 3653,000,000, respectively, on May 3.
A summary of the principal assets and liabilities of the reporting member
banks, In 90 leading cities, that are included in the statement, together
with changes during the week and the year ended May 10 1933, follows:
1,735,000,000 1,711.000,000 1,840,000,000
1,617,000,000 1,594,000,000 2,039,000,000
Investments-total
3,495,000,000 3,48.5,000,000 2,725,000,000
U.S. Government securities
Other securities
2,378,000,000 2,357,000,000 1,759,000,000
1,117,000,000 1,128,000,000 966,000.000
Reserve with Federal Reserve Bank
Cash in vault
823,000,000
36,000,000
797,000,000
38,000,000
850.000,000
43,000,000
May 10 1933.
Loans and investments-total- _16,318.000,000
Loans-total
On securities
All other
Net demand deposits
Time deposits
Government deposits
5 558,000,000 5,425,000,000 5,092.000,000
692,000,000 723,000,000 766,000,000
105,000,000 112,000,000 120,000,000
Investments-total
Due from banks
Due to banks
68,000,000
81,000,000
1 300,000,000 1,251,000,000 1,098,000,000
Reserve with F. R. banks
Cash In vault
81,000,000
Borrowings from Federal Reserve BankLoans on secur, to brokers & dealers,
For own account
594,000,000
For account of out-of-town banks
17,000,000
For account of others
7.000,000
Total
On demand
On time
Loans and investmente-total
618,000,000
541,000,000
17,000,000
6,000,000
367,000,000
41,000,000
8,000,000
564,000,000
414,000,000
472,000,000 422,000,000 315,000,000
90,000,000
146,000,000 142,000,000
Chicago.
1 146,000,000 1,147,000,000 1,352,000.000
Loans-total
On securities
All other
Investments-total
U.S. Government securities
Other securities
637,000,000
634,000,000
903,000,000
335,000,000
302,000,000
335,000,000
299.000,000
520,000,000
383,000,000
509.000.000
513,000,000
449,000,000
312,000,000 . 313,000,000
197,000,000 200,000,000
262,000.000
187,000,000
Reserve with Federal Reserve Bank._._ 184,000,000
Cash in vault
42,000,000
179,000,000
45,000,000
196,000.000
15,000,000
Net demand deposits
Time deposits
Government deposits
860,000,000
350,000,000
8,000.000
852.000,000
352,000,000
9,000,000
885,000,000
382,000,000
20,000,000
Due from banks
Due to banks
221,000,000
254,000,000
204,000,000
253,000,000
172,000,000
284,000,000
Borrowings from Federal Reserve Bank_
1,000,000
May 20 1933
In reserve balances with Federal Reserve banks, and decreases of $12.-
U.S. Government securities_
Other securities
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from F. R. banks
Increase (±) or Decrease (-)
Since
May 3 1933.
May 11 1932
+30,000,000
-675,000,000
8,404,000,000
-1,768.000,000
3.715,000,000
4,689,000,000
+17,000,000 -693,000,000
-17,000,000 -1,075,000,000
7,914,000,000
+30,000,000 +1,093,000.000
_ 4,908.000,000
3,006,000,000
-1.000,000 +1,031,000,000
+31,000,000
+62.000,000
1,536,000,000
211,000,000
+72,000,000
+4,000,000
-38,000,000
+32,000,000
10,509,000.000
4,318,000,000
231,000,000
+161,000,000
-12,000,000
-27,000,000
+124.000,000
-309,000,000
-108,000,000
1,255.000,000
2,700,000,000
+38,000,000
+77,000,000
+122,000,000
+92,000,000
80.000,000
-49,000,000
-43.000,000
Production of Gold and Silver in the United States
According to the Director of the Mint-Final
Estimates for 1932-Silver Output Lowest Since
1872.
Final estimates of gold and silver production in the
United States in 1932 were made available by the Director
of the Mint on May 10. The earlier estimates were given in
our issue of Jan. 7 1933, page 44. The final figures show
2,449,032 ounces of gold produced in 1932, valued at $150,626,000, while in the case of silver 23,980,773 ounces, valued
at $6,762,578 were produced. The May 10 announcement
of the Bureau of the Mint says:
The 1932 final production estimate compares as follows with that for the
prior Years: gold increase, 31,098,800; silver decrease, 6,951,277 fine
ounces. The 1932 totals are less than those for the year of largest pro-
duction, 1915. gold $101.035.700 and silver 74,961.075 ounces, by gold,
$50.409,700: silver, 50,980,302 ounces The 1932 output of silver was the
lowest since 1872.
Complete Returns of the Member Banks of the Federal
The 1932figures of production were made public as follows,
Reserve System for the Preceding Week.
The Federal Reserve Board resumed on May 15 the May 10, by the Director of the Mint
The Bureau of the Mint, with the co-operation of the Bureau of Mines,
publication of its weekly condition statement of reporting has issued the following statement of the final estimate
of refinery promember banks in le- ing cities, which had been discontinued duction of gold and silver in the United States during the calendar year 1932.
GOLD
PRODUCTION
AND
OF
SILVER
IN
THE UNITED STATES IN 1932.
after the report issued on March 6, giving the figures for
(Arrivals at United States Mints and Assay Offices and at private refineries).
March 1. The present statement covers banks in 90
leading cities instead of in 101 leading cities as formerly,
Gold
Silver.
Slates.
and shows figures as of Wednesday, May 10, with comOunces.
Value.
Ounces.
l'alue.x
parisons for May 3 1933 and May 11 1932. Corresponding Alaska
433,193 $8,954,900
256,673
$72,382
data by weeks beginning March 1 will be published, it is Alabama
34
700
8
2
66,666
Arizona
1,378,100
2,137,259
602,707
stated, in the Federal Reserve Bulletin.
570,404 11,791,300
California
508,692
143,451
270,131
Colorado
5,584,100
1,653,084
466,170
Licensed member banks formerly included in the condition Georgia
258
5,300
30
8
40,959
846,700
statement of reporting member banks in 101 leading cities, Idaho
6,590,951
1,858,648
Michigan
71,408
20,137
but not now included in the weekly statement, had total Montana
38,405
793,900
2,336,100
958,780
127,530
2,636,300
1,305,082
368,027
loans and investments of $711,000,000 and net demand, Nevada
New Mexico
20.008
413,600
312,502
1,108,164
193
North Carolina
4,000
10,094
2.847
time and Government deposits of $650,000,000 on May 10, Oregon
19,921
411,800
2,546
9,027
82
1,700
compared with $708,000,000 and $653,000,000, respectively, Pennsylvania
221
783
68
South Carolina
1.400
1
5
on May 3.
479,154
South Dakota
9,905,000
35,360
125,383
160
Tennessee
3,300
5,443
19,300
As is known, the publication of the returns for the New Texas
10
200
1,414
399
145.952
3,017,100
2,185,867
York and Chicago member banks was never interrupted. Utah
7,680,378
15
Virginia
300
These are given out on Thursday, simultaneously with the Washington
4,407
91,100
4,938
17,512
Wyoming
1,650
84
34,100
298
figures for the Reserve banks themselves and covering the Philippine
229,728
Islands
4,748.900
42,055
149,131
106
2,200
3
12
same week, instead of being held until the following Monday, Puerto Rico
2.449,032 $50,626,000 23,980 778 $6,762,578
Totals
before which time the statistics covering the entire body
a Value at 28.2c. per ounce, the average New York price of silver.
of reporting member banks in 90 cities cannot be got ready.
Figures of gold and silver produced in 1931 were given in
In the following will be found the comments of the Federal
Reserve Board respecting the returns of the entire body of our issue of Aug. 13 1932, page 1082.
reporting member banks of the Federal Reserve System for
World Production of Gold in 1932, 22,000,000 Ouncesthe week ended with the close of business on May 10: •
160,000,000 in Silver Given as Output, Bureau of
The Federal Reserve Board to-day resumed publication of its weekly
condition statement of reporting member banks In leading cities. The
Mines Reports After Study.
statement covers banks in 90 leading cities instead of In 101 leading cities
World
production of gold last year was approximately
formerly,
and shows figures as of Wednesday. May 10. The 90 cities
as
22,500,000 ounces, while that of silver was approximately
now included in this statement are those In which all or nearly all reposing
banks have been licensed to resume full banking operations. Corresponding
160,000,000 ounces, it was estimated on May 2 by the
data by weeks beginning March 1 will be published in the Federal Reserve
Bureau
of Mines of the Department of Commerce. We
Bulletin.
quote from Washington advices, May 2, to the New York
The statement shows increases for the week of 830,000,000 in total
"Journal of Commerce" which further said:
loans and Investments,8161,000,000 In net demand deposits and $72,000.000
Volume 136
Financial Chronicle
Gold production from 1493 through 1931 is estimated at approximately
1,085,000,000 ounces and silver production through the same period is
placed at 15,300,000,000 ounces.
A study of the production and movement of gold and silver was undertaken by the Bureau in response to numerous requests for information as a
result of current monetary and other economic problems.
Production Since 1790.
Production of gold in the United States since 1790 is placed at approximately 226,384,295 ounces, with a value of $4.679,778.700; silver production in the same period was 3,222,630,693 ounces valued at $2,520,683,786.
The 1932 output of gold is estimated at 2,507,587 ounces valued at
$51,836,400. This, it was stated, was within the margins of the production
figures for the period from 1920 to 1931. inclusive, when output ranged
between $44,000,000 and $52,000,000 a year. The highest yearly production was $101,036,000, in 1915.
Silver production last year is placed at 24,425,089 ounces, with a value (at
28.2 per ounce, the average New York price of bar silver) of $6,887,875; this
was considerably below the 1931 output of 30,932,000 ounces and less than
half the 1928-1930 average production of 56.000,000 ounces.
The bulk of the domestic production of gold last year, it was shown was
confined to California, 566,031 ounces, valued at $11,700,900; South Dakota
485,051 ounces, valued at $10,026,900; Alaska, 434,514 ounces, valued at
$8.982.200: Colorado, 306,668 ounces, valued at $6,339,400; Philippine
Islands, 228,282 ounces, valued at $4,719,000; Utah, 153,557 ounces.
valued at $3,174,300: Nevada, 130,037 ounces, valued at $2,388.100. and
Arizona, 66,980 ounces, valued at $1,384,600, but 15 other States had
gold production ranging from 10 to 24.000 ounces.
Nearly two-thirds of the silver production was in Utah, 7,815,956 ounces,
valued at $2,204,099, and Idaho, 6,733,760 ounces, valued at $1,898,920,
but 18 other States and Alaska. the Philippines and Puerto Rico reported
production valued at from $1 to $700,000.
Movement Last Year.
A study of the movement of the two metals for last year shows exports of
gold contained in domestic ore and base bullion amounting to $55,752.
against $33,354 in 1931: imports of gold in foreign ore and base bullion of
$15,244,602, against $32.694,434; imports of refined domestic bullion of
$1,033,229, against $55.058,583 and exports of $710.196.647, against
$385,957,242; imports of refined foreign bullion of $254,799,204, against
$111,053,605 and exports of $4,491,629, against $5,666: imports of United
States coin of $38,558,595, against $311,766,842, and exports of $85,790,248, against $80,783,994; imports of foreign coin of $53,579,497.
against $101,545,747, and exports of $8,993,248, against $14,203.
The total import movement of gold last year, accordingly, was $363,315.127, against $612.119.211 in 1931. and the export movement was
$809,527,524, against $466,794,459, resulting In an export excess of $446,212.397 in 1932, against an import excess of $145,324,752 in 1931.
With respect to silver, the Bureau reported exports last year of domestic
ore and base bullion valued at $6,940 against $3,380 In 1931; imports of
foreign ore and base bullion of $6,775,674 against $11,734.914; imports of
refined domestic bullion of $373, against $52,350 and exports of 310,160,831
against $21,664,216; imports of refined foreign bullion of $9,982,644 against
$11,478,777, and exports of $1,582,101 against $2,092,870; imports of
United States coin of $1,771,807 against $3.496,197, and exports of 836.701
against $51,629; imports of foreign coin of $1,119,445 against $1,901,901,
and exports of $2,063,321 against $2.673.158.
The total inward movement was $19,649,943 in 1932 against $28,664,139
the preceding year, and the outward movement $13,849,894 against
$26,485,253, there being an import excess of $5.800,049 for last year against
an import excess of 82,178.886 in 1931.
Silver Stocks at Record High—Far East, the Big
Consumer, Now Shipping to U. S. to Sell in Advanced Market—Break in Price.
The following Is from the "Wall Street Journal" of
May 15:
Stocks of silver on hand in New York are probably at the highest levels
ever reached, according to well-informed silver circles in this city. No
statistics are available showing the amount of silver which is held in vaults
here, but it is estimated that somewhere between 75,000,000 and 100,000,000
ounces of metal are on hand at the present time.
The situation is unique. In previous years silver was never allowed to
accumulate in New York, which was more or less a clearing house for the
metal in the process of its passage from the producer to consumer. Possibly
2,000,000 to 3,000,000 ounces would accumulate between steamers, but the
stocks were always cleared out quickly.
Accumulation of metal at this time is due to the fact that domestic speculation has lifted the dollar price of silver well above the world price. New
York has been as much as 3 to 3%c. above Shanghai and has been well
above London consistently.
Orient Has Not Been Buying.
The great consuming demand for silver comes from the Orient, particularly
China.
India has not been a market factor either way for some
India and
time. China, instead of buying, has been selling in this market because of
on
premium
silver
here.
the
In other words, the consumer has been selling to the producer.
Silver is actually being shipped from Shanghai to New York in large
quantities for delivery here. The Department of Commerce reports that
between April 24 and May 3 a total of 15,251,457 ounces of metal were
shipped from Shanghai to New York. Shipments from New York to China
for the entire year 1932 amounted to 21,479,000 ounces, while during the
fint quarter of this year only 1,905,000 were sent. In local circles it is
believed that silver now en route to New York from Shanghai is well in
excess of 15,000,000 ounces.
Movement Likely to Go On.
No end of the movement is seen as long as the dollar premium continues,
unlesi the Chinese Government imposes a further export duty on silver.
Shanghai stocks at present amount to about 348,000,000 ounces, and the
/
2c. above the world price.
dollar premium is about 1 to 11
Shanghai has been selling steadily in this market and has been the
the
in
decline
in silver prices since the top of 3714c. a fine
prime factor
ounce was reached on April 24. The decline has been accentuated by the
touching off of stop loss orders with which the market is understood to be
honeycombed.
One of the sharpest breaks of the decline took place Monday, when the
Official price for spot silver broke 1%c. to 32%c. a fine ounce. The
futures market was active and lower, with declines at 2:30 p. m. ranging
from 110 to 140 points on a volume of 281 lots, or 7,025,000 fine ounces.
3443
Regarding the trading on May 16. the "Times" of May 17
said:
Silver futures, which had lost heavily on the preceding day, closed yesterday with net gains of 110 to 130 points in active trading. There was an
4c. in the spot price to 32%c. an ounce. The turnover in
advance of 1/
futures was 9,400,000 ounces.
Administration's Inflation Measure—Silver Tenderable
in Payment for War Debts—Comment by Henry
Hentz & Co.
In their markets letter, May 13, on silver futures, Henry
Hentz & Co. had the following to say regarding the Administration's inflation measure, and its provision for the payment of war debts in silver:
A further change was made in the Administration's inflation bill when
the amount in silver, at a maximum price of 50c. per ounce, tenderable for
payment of war debts was raised from $100,000,000 to $200,000,000. The
motive for this alteration was an effort to satisfy the debtor and creditor
alike. By making it possible to pay up to $200,000,000 in silver instead
of the original figure, it is hoped to ease the June 15 payments and to
attract the Dec. 12 payments in which so many nations were delinquent.
Should the debtor powers respect their obligations and redeem them in
full and at the same time the defaulters pay the arrears, a total of $168,597,805 would be due to our country. Designed as an instrument to reduce
the heaviness of these contracts by enabling governments to buy silver at
one price and dispose of it to our Government at a higher valuation, the
proposal seems to be based on a presumed situation rather than an actual one.
If Great Britain be excepted (as she possesses a supply of silver recently
appraised at $238,458,000 and has the virtually unlimited resources of
India to draw upon freely), not one of the debtors has enough silver to
meet the sums to be exacted from them at the fast-approaching zero hour.
Even if the nations were to resort to the costly and coercive practice of
decreeing that all outstanding silver coin be turned over to them before a
specified date, and the edict were complied with, France and Belgium, the
two first ranking payers, would have but a small percentage of the requisite
sums available, and percentages for other countries would be still less impressive. The situation is such that, to procure silver, the nations would
collectively have to turn to the East. India would presumably be singled
out as the source of silver. In 1932 her supply was calculated at $1,453,037,000, which is greatly in excess of any demands which would be made.
Now the next step would rest entirely with India, and, determinative of
her attitude, would be such concrete advantages as would result from
meeting the European demand. Not to reflect upon her helpful qualities,
does it not appear as if India might plausibly withhold silver, except at a
price too high to interest the European bargainers? Two factors make this
seem logical, one the reality of a much higher price for silver shortly,
achieved by means other than in the discussed plan, and, secondly, expanded
international trade with Asia which would revive demand for the metal
within India and outside as well.
All considerations, therefore, point to this double purposed remedy as a
signal failure.
But discouragement should not be the lot of silver well-wishers. The
World Economic Conference will assemble on June 12 and begin the momentous discussions upon which the fate of the world seems contingent.
Paramount as a topic in the deliberations will be monetary stabilization.
This is imperative.
When formulating measures to arrest the depreciation and put the currencies back on a firm and secure foundation any failure to include the Orient
would be unforgivable. The traditional threat of a world destroyed by the
cheap production of the East would be greatly magnified if the currencies
of the world were restored to normalcy and the East's untouched. China
with her productive capacities enlarged by installation of machinery, a
depreciated currency, and wages which still are a pittance compared to the
West's, might too easily be the rampant bull in the reconstructed economic
storeplaces of the world. To prevent this calamity from overtaking us,
silver must be increased in price, thereby upraising the status of the Arian
currencies. As was cited in a recent survey of our Government, there does
exist in the legislative provisions of many countries a considerable potential
silver demand for subsidiary coin. Perhaps this course will open up to the
conferees at London as the least expensive and most effective for revaluation
of the white metal.
Until the Conference is under way, very little incentive for wide price
changes in our market is to be expected. Fluctuations around current levels
will probably be the rule, but should recessions develop we recommend
purchases.
Senate Passes Wheeler Resolution Urging U. S. Delegates to World Monetary and Economic Conference
to Work for International Agreement to Remonetize Silver at 16 to 1.
On May 8 the United States Senate adopted the Wheeler
resolution, urging the delegates appointed by President
Roosevelt to the World Monetary and Economic Conference
to "work unceasingly for an international agreement to remonetize silver on a basis of a definite fixed ratio of not to
exceed 16 fine ounces of silver to one fine ounce of gold."
The resolution was introduced by Senator Wheeler (Democrat) of Montana. The preamble asserts that one of the chief
causes of the depression is due to the shortage and maladministration of gold, remarks that more than 40 nations are
off the gold standard, and says remonetization of silver
would raise commodity prices. As adopted by the Senate,
reads as follows:
Whereas the whole world, including the United States of America, is
suffering from an unprecedented depression, resulting in unemployment,
starvation, falling commodity prices, and the collapse of the financial structure, which in turn threatens to destroy our present social and economic
system; and
Whereas all thoughtful students of economics and finance are agreed that
one of the chief causes of this depression is due to the shortage and maldistribution of gold, which is to-day the primary money of the world, seven
creditor nations having $9,000,000,000 of gold out of a total world supply
3444
Financial Chronicle
of about $11,000,000,000, which in turn leaves only $2,000,000,000 of gold
for all the debtor nations of the world; and
Whereas increasing the value of gold held by these seven creditor nations
will not increase the purchasing power of the rest of the world, nor give
them primary money on which to base credit and with which to carry on
their domestic and foreign trades; and
Whereas more than 40 countries are off the gold standard, including
England and the United States of America, and 60% of the population of
the world use silver as their monetary yardstick, and will continue to use it
regardless of all efforts to place them on a gold- or managed-currency
basis; and
Whereas the stabilization of currency exchange and the removal of trade
barriers between nations is essential in order to successfully conduct foreign
trade and commerce; and
Whereas this stabilization of exchanges of world currencies can best be
accomplished by fixing the ratio of value between the two metals, silver
and gold, upon which world currencies are based; and
Whereas the depreciated currencies of silver-using nations, due to the
low price of silver, gives silver-using nations a lower cost of production than
gold-using nations, which in turn makes it impossible for gold-using nations
to successfully compete with silver-using nations in the markets of the
world; and
Whereas the remonetization of silver at its historic ratio with gold would
raise world commodity prices upon which our surplus products of farm
and factory are sold, increase the purchasing power of silver-using countries
in the United States, increase production costs in silver-using countries so
that the American farmer and manufacturer would not be so handicapped
by their depreciated currencies; and
Whereas the remonetization of silver would end the present uncertainty
relative to inflation; and
Whereas both Democratic and Republican national platforms have favored
the international remonetization of silver, and Republican and Democratic
leaders in the United States Congress have repeatedly stated that they favored
bi-metallism if it could be on an international basis; and
Whereas the President is about to appoint delegates to attend an international conference to be held in London in June of this year of our Lord
1933, which has for its purpose the stabilization of international exchange, Sze.: Now, therefore, be it
Resolved, That it is the sense of the Senate of the United States that the
delegates so appointed by the President of the United States of America
shall work unceasingly for an international agreement to remonetize silver
on a basis of a definite fixed ratio of not to exceed 18 fine ounces of silver
to one fine ounce of gold.
Secretary of State Hull Opposes Proposition of U. S.
Senate that American Delegates to Monetary and
Economic Conference Be Instructed to Vote for
the Coinage of Silver on the Basis of 16 to 1.
Associated Press advices from Washington, May 17, stated
that opposition of the State Department to any legislation
which would "tie the hands" of American economic conference delegates on silver was transmitted to the House Foreign Affairs Committee on that day by Secretary Hull. The
Committee was considering a resolution similar to that approved by the Senate, which would suggest that the Secretary
of State instruct American delegates to work for an international 16-to-1 bi-metallism agreement. Representative
Fish, Republican, of New York, said he had communicated
with the State Department that morning and that the following statement was given to him for transmission to the Committee:
"The Secretary of State would regret it exceedingly if the Congress passed
any legislation on the matter which tied the hands of the delegates and
made it more difficult for them to achieve the best possible result."
Senator Wheeler, Democrat, of Montana, told the Committee the previous day that his resolution had been read by
the President and that he felt there would be "no serious
objections by the Administration to such a measure." Silver
advocates said the proposed resolution simply would express
It as the "sense of Congress" that the American delegates
seek 16-to-1 bi-metallism. Such legislation, they said, would
not "tie the hands" of the American delegates but would
leave them free to agree on something else if their efforts
for 16-to-1 failed. Representative Luce, Republican, of
Massachusetts, had told the Committee earlier that an international agreement on 16-to-1 silver would "be in effect a
creation of fiat money," since the white metal would be accepted as money simply because it "has the stamp of the
Government on Its face."
Robert J. Grant, Former Director of Mint, Opposes
Plan for Acceptance of Silver by U. S. for War
Debt Payments.
From Denver, Associated Press advices, May 13, stated:
Robert J. Grant, who will leave Tuesday [May 161 for Shanghai to advise
the Chinese Government in the operation of a new mint, said to-day that
acceptance of silver by the United States as proposed in payment of foreign
debts would harm American miners and industry.
A Denver mining engineer and director of the United States Mint at
Washington during the Harding, Coolidge and Hoover Administrations,
Mr. Grant said in an interview "our Treasury already has enough silver in
storage to last us half a century."
"There is a half billion silver dollars, $75,000,000 in smaller coins, and
more than $30,000,000 worth of silver bars," he added.
"If Europe pays America in silver Europe will buy silver from China and
pay for it in European goods. That strikes at the sale of American goods
to China. Dumping foreign silver in our Treasury is bound to hurt the
American silver market."
May 20 1933
Aid to Silver Seen in London Parley—Plan to Improve
Its Status in Monetary Systems of Leading Countries Predicted—International Group Suggests
Project for Wider Use of Metal, Keeping Gold
Standard.
From the New York "Times" of May 14 we take the
following:
Because of the relation of silver to other commodities, it is believed here
that some plan will be evolved at the forthcoming World Economic Conference in London through which silver will receive an improved status in the
monetary systems of the important commercial nations. The adoption of
international bi-metallism is not considered likely, but it is believed to be
probable that at this meeting an international agreement will be reached for
the greater use of silver as a medium of exchange.
A group of international industrialists who have made a study of silver
and its relation to world business is advocating a plan which calls for the
larger use of silver for monetary purposes and at the same time contemplates
adhering strictly to a gold standard policy. Its members believe silver
should be utilized with gold on a basis that will insure some increase in
commodity prices, that will avoid excessive inflation, and at the same time
Insure a relative stability to the various monetary systems when measured
in terms of commodity prices.
The plan as outlined provides that the principal industrial countries, the
United States, Great Britain, France, Holland, Switzerland, Belgium, Italy
and the three Scandinavian countries, agree to increase gradually their subsidiary coinage up to the same per capita level as Germany and maintain
it there. In this connection, it is pointed out that Germany has authorized
an issue of silver subsidiary coinage to about $7.50 per capita, which, it is
believed, has been an important factor in the recent stability of that
country's monetary system in spite of its low gold reserve.
Would Maintain Silver Stocks.
These governments, it is contended, should agree also that in the future
they will not sell any silver out of their stocks except directly to other governments and that all such purchases of silver shall remain held by the
buying country for coinage purposes. It is also suggested that countries
which have debased their silver coins withdraw annually not less than 10%
of such debased coins and replace them with coins of not less than .850%
fineness. The other European participating countries and those American,
Asiatic and Australasiatic countries that have maintained a currency on a
metallic base, it is said, should agree gradually to increase their subsidiary
coins to at least a $3 per capita basis.
The suggested plan further provides that all agreements for increasing
coinage should be suspended if the price of silver in New York has remained
for thirty days at or above 75 cents an ounce on any one day, but should be
resumed whenever the price of silver has been for thirty consecutive days
at or below 65 cents an ounce. Alternatively, it is suggested, it might be
provided that an international commission should regulate the purchases in
accordance with economic conditions and with the special view of avoiding
disturbances of trade of China and India.
Present Supply Inadequate.
It is not believed that there is enough silver available to carry out this
plan immediately. If the plan is carried out over a period of ten years,
the annual additional requirements would amount to about 140,000,000
ounces, or more than one-half of the maximum production of the world in
any year so far. This demand, it is argued, would maintain the price of
silver at a sufficiently high level.
It is estimated that at present there is in circulation in the United States
about $250,000,000 in subsidiary coins. If the total were increased to $7.50
per capita, about $750,000,000 face value additional would be required, or
about 500,000,000 ounces. If carried through over a period of ten years
the annual increase would be barely $70,000,000, which, it is argued, could
not have a serious inflationary effect on the currency system.
Silver Circulation Under Limit Abroad—Survey Shows
59 Countries Have Not Issued Coins Up to Their
Legal Amount.
Considerable quantities of silver might be employed as subsidiary currency throughout the world under existing laws,
but while a number of countries and colonies have limited the
amount of silver which may be issued, fifty-nine of them have
not in circulation all the silver that is legally issuable, according to a survey made public on May 8 by Herbert M. Bratter
of the Department of Commerce. A dispatch from Washington May 8 reported Mr. Bratter as saying:
"Thus, if necessary, a certain amount of additional silver could be put
into circulation.
"In still other countries, where there is no legal limit, more silver may
issue
be issued without formality. The general practice, however, is to
coins only as public demand for subsidiary money requires."
in
coins
The survey showed that in several countries there are no silver
active circulation.
"Until the latter part of March 1933, for a period of a number of years
no silver had circulated in France and practically none in any French colony
other than French Indo-China and Pondicherry. The recent issuance of silver
circulation
by the French Government undoubtedly will be followed by the
of the new coins in the colonies where the coinage system of France applies.
"Turkey is expected soon to issue silver coins."
"Since in every country there is normally a certain minimum demand for currency as a medium of exchange," Mr.
Bratter pointed out, "within the limit It is possible to vary
the character of the money whether metal or paper with the
utmost freedom. The "Journal of Commerce" also reports
him as saying:
"Such stock of money may consist in whole or part of commodity money,
or it may be entirely fiduciary. Within this limit nations may safely substitute copper for nickel, nickel for silver, or silver for gold secured paper
without affecting the price level.
"Recently as this study shows, this principle has been resorted to in Germany, France, Colombia, Mexico, Poland and Spain, as a device to improve
the gold ratio. The same principle made safe the substitution in many
countries of base metal coins or small notes for silver coin which may be
issued, it being explained that the experience of the United States proves,
in the case of the silver dollar and the silver certificates that when coins be-
Volume 136
Financial Chronicle
come too cumbersome a more convenient mediutn of exchange is demanded.
Germany has also had this experience,'much complaint having arisen recently
regarding the issuance of five mark silver pieces with the result that steps
are being taken to substitute smaller coins.
Drop in Transvaal Gold—April Output 895,097 Ounces,
Against 946,863 in March.
From the New York "Times" we take the following from
London May 13:
Transvaal gold production continues to decline as a result of the policy
of treating lower grade ore now that the mines are obtaining a high premium
on gold. The April output amounted to 895.097 ounces, against 946,863
ounces in the previous month and 949.796 ounces in April 1932.
Last month the output was the smallest, with the exception of last
February, since April 1931, while the aggregate production for the first
four months of the current year at 3,693,562 ounces compared with 3,760,627
ounces for corresponding period of last year.
Canadian Gold Exports in March—Total of $6,565,027
Went to United States.
From the Montreal "Gazette" we take the following
from Ottawa May 6:
Imports of British and Canadian coins and foreign gold coins in March
totaled in value $79,636 of which $78.136 came from the United States,
says a report issued to-day by the Dominion Bureau of Statistics. The
import of gold in bars, &c.,totaled $9,119 of which $6,937 came from the
United States and $1,638 from the United Kingdom. This made an aggregate import of $88.755.
The aggregate export of coin and bullion In March was $6.565,027. The
Canadian product was: Silver coin $6,196, copper coin $33, gold bullion
$3.024.308, total $3,030,537, all of which went to the United States.
Foreign product exported was: Gold coin $3.500.000, silver coin $30.387,
copper coin $4.103, total $3,534.490. all of which went to the United States.
World Return to Gold Urged by American Section of
International Chamber of Commerce—Asks Moves
to Stabilize Currencies—Budget Balance Is First—
Report to Be Submitted at Vienna Congress Also
Calls for Debt Solution.
Establishment of a definite relationship between the
currencies of the major countries and the perpetuation of
such stabilization through an international balancing of
budgets are urged in a report on monetary aaid trade policies
made public at Washington on May 6 by a special committee of the American Section of the International Chamber
of Commerce.
Advices from Washington to the New York "Times" state
that the report, which urged a resumption of the gold standard with the international monetary stabilization program
based upon that commodity, contains what is described as
"an American business opinion," to be submitted to the
congress of the international chamber when it convenes in
Vienna during the first week of June. The Washington
account to the "Times" May 6 continued:
The outstanding proposals were summarized as follows:
"That the World Monetary-Economic Conference should state one of
Its first objectives to be the establishment of a definite relation of the
Important commercial currencies of the world to gold and to each other
and agree upon a program to achieve It.
Budget Balance Put First.
"That the first step to be taken in such a program is balance in public
budgets of all countries, to be accomplished primarily by reduction in
government expenditures; secondly, by adequate taxation.
"That the following additional measures are prerequisite to a return to
currency stability:
"The elimination of foreign exchange controls, the final settlement of
reparations and intergovernmental debts, the stabilization of currencies in
relation to gold and to each other at a time and level consistent with the
Internal economic situation and external trade and financial relations of
the country concerned; and following such stabilization the elimination of
trade restrictions superimposed upon the protective structure by reason
of monetary instability."
The report also states that "the maintenance of currency stability is
.dependent upon a continuance of budgetary equilibrium, central
bank
co-operation and prompt steps to bring about a greater liberty of
trade."
Disarmament Is Urged,
As a means of balancing budgets, the Committee urges further
disarmament.
The report strikes sharply at foreign exchange restrictions said
to be
practiced by more than SO countries, saying:
"The abolition of these controls of foreign exchange is urgently
needed.
it must be recognized, however, that claims from abroad for the payment
of short-term indebtedness, or even for payment of interest and principal
on long-term indebtedness, or even for payment of interest and principal
on long-term obligations, are so great in many cases as to make immediate
and complete elimination of these restrictions impossible.
"In such event, modification of the controls which will permit of commodity movements without hindrance created by exchange restrictions
should be promptly adopted."
As to the determination of the gold value of the currency unit and the
recommended stabilization, the Committee reports that such stabilization
depends more upon a balanced budget, the absence of currency inflation,
reasonable assurance that there would not be continuing adverse balance
of international payments, and the promise of a comparatively stable price
level, than upon gold holdings.
"With currencies quoted internationally substantially below par value,"
the report states, "internal and external trade and business must adapt
themselves to the low value currency.
"If a new par were fixed at too high or too low a value In relation to
gold and to other important commercial currencies, a maladjustment would
result requiring a new shift in international price levels and a serious
disturbance of the internal economy of the country."
The Committee recommends that steps be taken as soon as possible to
remove trade restrictions, such as quotas on imports, surtaxes, license
3445
requirements and higher tariffs, imposed by reason of currency instability.
The report was drafted by a committee of seven business and financial
executives under the Chairmanship of E. G. Miner, Chairman of the
Board of the l'faudler Co. at Rochester. The other members are:
W. Averell Harriman, Brown Brothers, Harriman & Co., New York.
W. S. McLucas, President of the National Bank of Detroit.
Clark H. Miner, President of the International General Electric Co..
New York.
Henry M. Robinson, Chairman of the Board of the Security First National Bank at Los Angeles.
Melvin A. Traylor, President of the First National Bank at Chicago.
Oscar Wells, Chairman of the Board of the First National Bank of
Birmingham.
Premium Raised on Canadian Gold--Payment on
Basis of Sterling Rate Instead of the Dollar Increases Income—Gains for Three Mining Companies.
Under date of May 6 advices from Toronto to the New
York "Times" said:
Canadian mining companies are now receiving payment for geld in terms
of the sterling premium rate, which displaced the valuation worked out
on the United States premium rate on May 1. Under the new arrangement
they received at Thursday's rate of sterling exchange a premium of approximately 30% in addition to the regular price of $20.67 an ounce. against
14% if payments had been based on United States funds. Under the new
ruling that day's price was $27.49 an ounce, although the price will fluctuate
according to sterling and yesterday was above $28. From this price are
deducted 16 cents an ounce for shipping and insurance charges to Great
Britain.
While bullion is being shipped to the mint at Ottawa as formerly, it is
stated that it is being sold to Great Britain and that a large part is earmarked for the Bank of England. It is because the metal will go to London
that the regular price is shown with the deduction of 16 cents for shipping
and insurance charges. .
It is understood that some of the larger producers shipped gold to Ottawa
In April, but withheld settlements until the beginning of this month.
This is taken to indicate that those that shipped with this understanding
expect to show a substantial increase in earnings from April production.
Increase Si, Falcon bridge Nickel.
The gross operating profits of Falconbridge Nickel Mines, Ltd.. for the
first quarter before write-offs were $331,184, the company reports. This
compared with 6315,269 in the previous quarter and $113.511 in the first
quarter of 1932. Non-operating profit was $16,264, against $15.389 in
the previous quarter. Net profit was $255,992, against $248.996 in the
previous quarter.
Pioneer Gold Mines of British Columbia, Ltd., operating in the Lillooet
district,showed record earnings in March, with gross production of $165,000
and net income of $115,000. The mill for the first time reached its rated
capacity, averaging 298 tons daily.
President Roosevelt, in Message to 54 Nations, Asks
Disarmament and Adoption of New Pact of NonAggression—Acceptance of MacDonald Plan Named
as First Step—Message to Congress, Transmitting
Copy of Note, Says Way to Disarm is "To Disarm"
—Asks Nations to Pledge Troops Will Not Cross
Their Frontiers.
President Roosevelt, in a message addressed to the peoples
of 54 nations through their rulers and heads of State on May
16, issued an appeal for world peace through the removal of
the instruments of offensive warfare and through the conclusion of an international pact of non-aggression. On the
same day he transmitted a copy of the note to Congress,
accompanied by a message couched in even more forceful
terms, in which he stressed the fact that "the way to disarm
is to disarm."
The nations to which the President's message was sent
comprised the participants in the Geneva disarmament conference and the World Monetary and Economic Conference
to be held at London. In each instance the note was
addressed directly to the titular head of the government.
Somewhat unusual significance was attached unofficially to
the fact that one of the addresses was President Mikhail
Kalinin, All Union Central Executive Committee, Moscow,
Russia. Because of President Roosevelt's departure from
recent practices of this government in so communicating
directly with Soviet Russia, his action was variously interpreted as implying formal recognition of the Soviet Union
by the United States. Later, however,at a press conference,
the President explained that his inclusion of Russia in the
list had of itself nothing to do with the question of recognition.
The President did not mention in the text of his message
any specific country by name, but he did condemn "petty
aims" and mischievous demonstrations by heads of nations
who seek to increase armaments beyond present treaty
limitations. This was generally understood to constitute
a warning to Germany, which is the only power to fall
within the category mentioned. At the same time it was
widely believed that one of the purposes which induced the
President to deliver the message on the date selected was
the fact that on the following day Chancellor Hitler was
scheduled to address the Reichstag on the subject of disarmament. It was hoped, at least, in international circles,
that the subject matter of President Roosevelt's message
would be sufficient to induce Chancellor Hitler to modify
his address, insofar as it might contain passages of a bellicose
3446
character. (Chancellor Hitler's address to the Reichstag,
delievered on May 17, is given elsewhere in this issue.)
The section of the President's message in which he endeavored to pledge all nations during the process of disarmament to "send no armed force of whatsoever nature
across their boundaries," except to punish violations of the
disarmanemt treaty, was considered to apply to the Japanese
armies in Manchuria, the war between Bolivia and Paraguay,
and armed encounters on the boundaries of Peru and
Colombia.
In suggesting a definite procedure by which the nations
might act to insure world peace, the President specified four
distinct steps to be agreed upon:
1. Adoption of the broad outline ofthe MacDonald plan for disarmament.
2. Agreement upon the time and procedure for taking additional steps
in the disarmament program.
3. While these steps are being taken no nation is to increase existing
armaments above limitations provided by treaty.
4. Adoption by the nations of the world ofa definite pact ofnon-aggression,
Including an agreement that they will send no armed force of any nature
across their frontiers. "provided these obligations are faithfully executed
by all signatory powers."
In his message to Congress the President said that the
way to prevent invasion was to make it impossible, and that
this can be done by eliminating weapons of offense. Mr.
Roosevelt again emphasized that "the assurance of world
political and economic peace and stability is threatened by
selfish and short-sighted politics, actions and threats of
actions."
The text of the message on disarmament and economic
peace cabled by President Roosevelt on May 16 to the sovereigns and Presidents of the 54 nations participating in the
General Disarmament Conference at Geneva and the World
Monetary and Economic Conference at London,follows:
The President's Message to the Nations of the World.
A profound hope of the people of my country impels me, as the head of
their government, to address you and, through you, the people of your
nation. This hope is that peace may be assured through practical measures
of disarmament and that all of us may carry to victory our common struggle
against economic chaos.
To these ends, the nations have called two great world conferences.
The happiness, the prosperity and the very lives of the men, women and
children who inhabit the whole world are bound up in the decisions which
their governments will make in the near future. The improvement of
social conditions, the preservation of individual human rights, and the
furtherance of social justice are dependent upon these decisions.
The World Economic Conference will meet soon and must come to its
conclusions quickly. The world cannot await deliberations long drawn out.
The conference must establish order in place of the present chaos by a
stabilization of currencies, by freeing the flow of world trade, and by
international action to raise price levels. It must, in short, supplement
individual domestic programs for economic recovery, by wise and considered
international action.
The Disarmament Conference has labored for more than a year and.
as yet, has been unable to reach satisfactory conclusions. Confused purposes still clash dangerously. Our duty lies in the direction of bringing
practical results through concerted action based upon the greatest good
to the greatest number. Before the imperative call of this great duty,
petty obstacles must be swept away and petty aims forgotten. A selfish
victory is always destined to be an ultimate defeat. The furtherance of
durable peace for our generation in every part of the world is the only
goal worthy of our best efforts.
If we ask what are the reasons for armaments, which, in spite of the
lessons and tragedies of the World War, are to day a greater burden on
the peoples of the earth than ever before, it becomes clear that they are
twofold:
First the desire, disclosed or hidden, on the part of governments to
enlarge their territories at the expense of a sister nation. I believe that
only a small minority of governments or of peoples harbor such a purpose.
Second, the fear of nations that they will be invaded. I believe that the
overwhelming majority of peoples feel obliged to retain excessive armaments
because they fear some act of aggression against them and not because
they themselves seek to be aggressors.
There is justification for this fear. Modern weapons of offense are vastly
stronger than modern weapons of defense. Frontier forts, trenches, wire
entanglements, coast defenses—in a word,fixed fortifications—are no longer
impregnable to the attack of war planes, heavy mobile artillery, land battleships called tanks and poison gas.
If all nations will agree wholly to eliminate from possession and use the
weapons which make possible a successful attack, defenses automatically
will become impregnable, and the frontiers and independence of every
nation will become secure.
The ultimate objective of the Disarmament Conference must be the
complete elimination of all offensive weapons. The immediate objective
is a substantial reduction of some of these weapons and the elimination of
many others.
This Government believes that the program for immediate reduction of
aggressive weapons, now under discussion at Geneva, is but a first step
toward our ultimate goal. We do not believe that the proposed immediate
steps go far enough. Nevertheless, this Government welcomes the measures
now proposed and will exert its influence toward the attainment of further
successive steps of disarmament.
Stated in the clearest way, there are three steps to be agreed upon in
the present discussions:
First, to take, at once, the first definite step toward this objective, as
broadly outlined in the MacDonald plan.
Second, to agree upon time and procedure for taking the following steps.
Third. to agree that while the first and the following steps are being
taken, no nation shall increase its existing armaments over and above the
limitations of treaty obligations.
But the peace of the world must be assured during the whole period of
disarmament, and I, therefore, propose a fourth step concurrent with and
wholly dependent on the faithful fulfillment of these three proposals and
subject to existing treaty rights:
That all the nations of the world should enter into a solemn and definite
reaffirm the obligations
pact of non-aggression: that they should solemnly
May 20 1933
Financial CLionicle
they have assumed to limit and reduce their armaments, and, provided
these obligations are faithfully executed by all signatory powers,individually
agree that they will send no armed force of whatsoever nature across their
frontiers.
Common sense points out that if any strong nation refuses to join with
genuine sincerity in these concerted efforts for political and economic
peace, the one at Geneva and the other at London, progress can be obstructed and ultimately blocked. In such event the civilized world, seeking
both forms of peace, will know where the responsibility for failures lie.
I urge that no nation assume such a responsibility, and that all the nations
joined in these great conferences translate their professed policies into
action. This is the way to political and economic peace.
I trust that your Government will join in the fulfillment of these hopes.
FRANKLIN D. ROOSEVELT.
The list of sovereigns and Presidents to whom the message
was sent, as made public by the Department of State at
Washington on May 16, follows:
Rulers Addressed by Mr. Roosevelt.
His Majesty, Zog I, King of the Albanians, Tirana, Albania.
His Excellency. Agustin P. Justo, President of the Argentine nation,
Buenos Aires, Argentina.
His Excellency, Wilhelm Miklas, President of the Confederation of
Austria, Vienna, Austria.
His Majesty, Albert, King of the Belgians, Brussels, Belgium,
His Excellency, Getullo Vargas, President of the United States of Brazil,
Rio de Janeiro, Brazil.
His Excellency, Enrique Olaya Herrera, President of the Republic of
Colombia, Bogota, Colombia.
His Excellency, Daniel Salamanca, President of Bolivia, La Paz, Bolivia.
His Majesty, Boris III, Sing of the Bulgarians, Sofia, Bulgaria.
His Excellency, Arturo Alessandri, President of the Republic of Chile,
Santiago, Chile.
His Excellency, Ricardo Jiminez, President of Costa Rica, San Jose,
Costa Rica.
His Excellency, Lin Sen. President of the National Government of the
Republic of China, Nanking. China.
His Excellency, Gerardo Machado. President of the Republic of Cuba,
Havana, Cuba.
His Excellency, Thomas G. Masaryk, President of Czechoslovakia
Prague, Czechoslovakia.
His Majesty, Christian X, King of Denmark, Copenhagen, Denmark.
His Excellency, Rafael Leonides Trujillo, President of the Dominican
Republic, Santo Domingo, Dominican Republic.
His Excellency, Juan de Dios Martinez Mira, President of the Republic
of Ecuador, Quito. Ecuador.
His Majesty, Fuad I, King of Egypt, Cairo, Egypt,
His Excellency, Konstantin Pats, head of State, Tallinn, Estonia.
His Imperial Majesty, Haile Selassie I, Emperor of Ethiopia, Addis
Ababa, Ethiopia.
His Excellency, Pehr Evind Svinhufvud, President of Finland, noisingfors, Finland.
His Excellency, M. Albert Lebrun. President of the French Republic.
Paris, France.
His Excellency, Field Marshal Paul von Beneckendorff and von Hindenburg, President of the Reich, Berlin, Germany.
His Majesty, George V. King of Great Britain, Ireland and tit* British
Dominions beyond the Seas, Emperor of India, &c., &c., London.England.
His Excellency, Alexander Zamis, President of the Hellenic Republic.
Athens, Greece.
His Excellency, Jorge Ubico, President of the Republic of Guatemala,
Guatemala, Guatemala.
His Excellency, Stenio Vincent, President of Haiti, Port au Prince, Haiti.
His Serene Highness. Admiral Nicholas de Horthy, Regent of the Kingdom
of Hungary, Budapest, Hungary.
His Excellency, Tiburcio Carias A., Constitutional President of the
Republic of Honduras, Tegucigalpa. Honduras.
His Majesty, Feisal I, King of Iraq, Bagdad, Iraq.
His Majesty, Victor Emanuel III, King of Italy, Rome, Italy.
His Majesty, Hirohito, Emperor of Japan, Tokyo, Japan.
His Excellency, Alberts Kviesis, President of the Republic of Latvia.
Riga, Latvia.
His Excellency, Antanas Smetonia, President of the Republic of Lithuania, Kaunas, Lithuania.
Her Royal Highness Charlotte, Grand Duchess of Luxemburg, Luxemburg, G. D.
His Excellency General Abelardo L. Rodriguez, President of the United
Mexican States, Mexico City, Mexico.
Her Majesty Wilhelmina, Queen of the Netherlands, The Hague, Netherlands.
His Excellency Juan B. Sacasa. President of the Republic of Nicaragua.
Managua, Nicaragua.
His Majetity Haakon VII, King of Norway, Oslo, Norway.
His Excellency Harmodlo Arias, President of Panama. Panama, Panama.
His Excellency Eusebio Ayala, President of the Republic of Paraguay.
Asuncion, Paraguay.
His Imperial Majesty Reza Shah Pahlavi, Shah of Persia, Teheran, Persia.
His Excellency Ignace Moscicki, President of the Republic of Poland,
Warsaw, Poland.
His Excellency General Oscar Benevides, President of Peru, Lima, Peru.
His Excellency General Antonio Oscar de Fragoso Carmona, President or
the Republic of Portugal, Lisbon, Portugal.
His Majesty Carol II, King of Rumania, Bucharest, Rumania.
President Michall Kalinin, All Union Central Executive Committee,
Moscow. Russia.
His Majesty Prajadhipok. King of Siam, Bangkok, Slam.
His Excellency Alcala Zamora, President of the Spanish Republic,
Madrid, Spain.
His Majesty Gustaf V. King of Sweden, Stockholm, Sweden.
His Excellency Edmond Schulthess. President of the Swiss Confederation,
Berne, Switzerland.
His Excellency Gazi Mustafa Kemal, President of the Turkish Republic,
Ankora, Turkey.
His Excellency Gabriel Terra, President of the Republic of Uruguay,
Montevideo, Uruguay.
His Excellency Juan V. Gomez, President of the United States of Venezuela, Caracas, Venezuela.
His Majesty Alexander I, King of Yugoslavia, Belgrade, Yugoslavia.
The text of the message sent by President Roosevelt to
Congress on the afternoon of May 16, advising it of his
appeal to foreign nations for disarmament and economic
peace, follows:
Volume 136
Financial Chronicle
Text of Message to Congress.
To the Congress:
For the information of the Congress I am sending herewith a message
that I have addressed this morning to the Sovereigns and Presidents of
those nations participating in the disarmament conference and the World
Monetary and Economic Conference.
I was impelled to this action because it has become increasingly evident
that the assurance of world political and economic peace and stability is
threatened by selfish and short-sighted policies, actions and threats of
actions.
The sincere wish for this assurance by an overwhelming majority of
the nations faces the danger of recalcitrant obstruction by a very small
minority, just as in the domestic field the good purposes of a majority
in business, labor or in other co-operative efforts are often frustrated by
a selfish few.
The deep-rooted desire of Americans for better living conditions and
for the avoidance of war is shared by mass humanity in every country.
As a means to this end, I have, in the message to the various nations,
stressed the practical necessity of reducing armaments. It is high time
for us and for every other nation to understand the simple fact that the
Invasion of any nation, or the destruction of a national sovereignty, can
be prevented only by the complete elimination of the weapons that make
such a course possible to-day.
Such an elimination will make the little nation relatively more secure
against the great nation.
Furthermore, permanent defenses are a non-recurring charge against
governmental budgets, while large armies, continually re-armed with
improved offensive weapons, constitute a recurring charge. This, more
than any other factor to-day, is responsible for governmental deficits and
threatened bankruptcy.
The way to disarm is to disarm. The way to prevent invasion is to
make it impossible.
I have asked for an agreement among nations on four practical and
simultaneous steps;
First. That through a series of steps the weapons of offensive warfare
be eliminated.
Second. That the first definite step be taken now.
Third. That, while these steps are being taken, no nation shall increase
existing armaments over and above the limitations of treaty obligations.
Fourth. That, subject to existing treaty rights, no nation during the
disarmament period shall send any armed force of whatsoever nature
across its own borders.
Our people realize that weapons of offense are needed only if other
nations have them, and they will freely give them up if all the nations of
the world will do likewise.
In the domestic field, the Congress has labored in sympathetic understanding with me for the improvement of social conditions, for the preservation of individual human rights, and for the furtherance of social justice.
In the message to the nations, which I herewith transmit, I have named
the same objectives. It is in order to assure these great human values
that we seek peace by ridding the world of the weapons of aggression
and attack.
FRANKLIN D. ROOSEVELT.
The White House, May 16 1933.
Great Britain Signs Commercial Treaties with Norway
and Sweden—Scandinavian Countries Agree to
Take British Coal in Return for Purchases of
High-Grade Steel.
Trade agreements with Norway and Sweden were signed
by Great Britain on May 15 at the Foreign Office in London.
Following, as they do, commercial treaties recently signed
with Germany and Denmark, it is anticipated in industrial
circles that British coal exports would be increased by 4,000,000 tons annually. The Norwegian and Swedish markets
for coal were gained in exchange for concessions on certain
grades of high-grade steel. Norway agreed to supply about
70% of her coal requirements from Great Britain, while
Sweden contracted to import nearly 50% of her coal from
Britain
White House Statement Indicates United States Willingness to Consult with Other Nations to Preserve
Peace, While Retaining Right to Determine Own
Action.
In a statement issued at the White House on May 17,
clarifying the President's message of the previous day on
peace and disarmament, it was indicated that the United
States would be willing to consult with other nations in the
event of violation of pacts concluded under the President's
proposals, but that this country would retain the sole right
to decide its own course of action. The statement read:
There is no obligation on the United States except in the following three
possibilities:
1. If every other nation agrees to eliminate weapons of offensive warfare the United States will do the same.
2. If during the disarmament period every other nation agrees not to
invade its neighbors subject to existing treaty rights, the United States
will do the same thing.
3. If there is violation of any,such agreement or agreements, the United
States would consult with the other nations. This is no change from the
long-standing and existing policy.
Determination of action following any consultation as referred to would,
of course be fully open to determination by the United States at that time.
That does not mean that the United States will in company with other nations meet to determine this policy. The policy will be determined right
here in Washington by officials in the light of events and circumstances prevailing at that time. Further, it is held that the communication sent yesterday imposes no obligation on the United States.
Principal Objectives of the McDonald Disarmament
Plan Endorsed in President Roosevelt's Message.
The principal proposals in the arms convention sponsored
by Prime Minister J. Ramsay MacDonald of Great Britain,
which President Roosevelt in his message to the nations
of the World on May 16 declared constituted the "first
definite step" toward the objective of disarmament, were
outlined as follows, in United Press advices from Washington
on May 16:
1, Security by consultation under the Kellogg Pact; for any concerted
action, Ragland, the United States, France, Germany, Italy and Soviet
Russia must be in unanimous accord.
2. A numerical reduction of all armies by approximately one-third,
Germany to be allowed a total land army of 200,000; France 400,000,
Including 200,000 overseas troops; Italy, 250.000, including 50,000 overseas troops; Poland, 200,000; Csechoslovakia, 100,000; Russia, 500,000;
Jugoslavia, 100,000; Spain. 170,000; Hungary, 60,000. Figures for non.
European armies are to be fixed later.
2. Reduction of caliber of mobile guns to 4.5 inches, with right to main
tam n existing guns up to 155 millimeters.
4. Reduction of the size of tanks to 16 tons.
6. Holiday on battleship construction and submarine building over
2,000 tons until the end of 1936; adherence of France and Italy to the
London Naval Treaty; convocation of a general naval conference in 1935.
3447
6. Complete abolition of bombing from the air except for police purpose,
in certain outlying regions; limitation of the military and naval airplanes
of England. France, the United States, Italy and Japan to 500 each;similar
reductions for other nations.
7. Complete prohibition of gas, germ and flame warfare, with control
of preparations for such warfare.
8. Creation of a permanent disarmament commission to supervise the
functioning of the convention.
9. The convention to remain in force for five years, before which another
convention will be written.
10. Abrogation of the military clauses of all the peace treaties binding
Germany, Hungary, Austria and Bulgaria.
Italy Agrees at Disarmament Parley to Allow Blackshirts to Be Counted as Conscripts.
.The Italian Government announced to the disarmament
conference at Geneva on May 10 that it was willing to have
the Blackshirts counted on the same basis as conscript
soldiers, representing 42,000 effectives. According to this decision, if the disarmament treaty should be signed, Italy, in
order to retain the Blackshirts, would be required to sacrifice 42,000 regular soldiers.
The announcement was viewed as making it more difficult
for Germany to keep the Nazi and Stahlhelm organizations
from being included us soldiers, although no final decision
on this point has as yet been reached by the conference.
Canada Restricts News Broadcasts—Stations Limited
to Matter Authorized by Canadian Press and Local
Papers—Advertising Time Not to Exceed 5% of a
Program and Mention of Prices Forbidden.
News broadcasting in Canada is restricted to matter authorized by the Canadian Press except in the case of local
news, which must be obtained by arrangement with local
newspapers, under regulations made public on May 8 by the
nadian Radio Broadcasting Commission. The regulations
have been approved by the Cabinet, said a Canadian Press
dispatch, May 8, to the New York "Times" from Ottawa,
which also had the following to say:
5%, except
Time given to advertising matter in a program is limited to
forbidden.
where special permission is given and reference to prices is
regulations
News broadcasting is dealt with in Section 2 of Part 5 of the
pertaining to programs as follows:
or
"Canadian radio broadcasting stations shall not transmit any news
information of any kind published in any newspaper or obtained, collected,
or
collated or co-ordinated by any newspaper or association of newspapers
any news agency or service, except the following:
"Such news bulletins as are released regularly from the various bureaus
of Canadian Press for the express use of broadcasting stations in Canada.
"Local news under arrangements to be made by each station individually,
with its local newspaper or newspapers, or such news as it may collect
through its own employees or through such collection agency or agencies
as may be employed by the said station.
"Newspapers broadcasting false or misleading news shall be prohibited
from further broadcasting unless extenuating circumstances can be shown.
Editorial Opinion Barred.
"The broadcasting of editorial opinions of a controversial nature is
prohibited."
The Commission reserves the right to prohibit the broadcasting of any
matter "until the continuity or record or transcription of both have been
submitted to the Commission for examination and have been approved by
them."
It is also provided that programs shall be filed weekly with the Commission. Licenses broadcasting sustaining programs originating outside Canada
must, when requested to do so by the Commission, give priority to programs originating In Canada. They must also, upon request of the Commission, give right of way to such programs as are, in the opinion of the
Commission, of national interest. The use of recorded programs, either by
phonograph or gramaphone records, must be confined to such hours as
may be defined to each station by the Commission.
The regulations set forth that no station shall broadcast advertising spot
announcements between 7:30 and 11 at night. No such announcements may
exceed 100 words in length nor total more than three minutes in any hour.
Rules for Electrical Records.
Electrical transcriptions or records designed for broadcast advertising
must not be broadcast more than once from any station. Mechanical reproductions must be announced as such just before they are broadcast.
Negotiations had been going on for some time between the Canadian Press
and the Radio Commission toward supply of radio news bulletin service
authorized by the Canadian Press.
3448
Financial Chronicle
This will replace the present broadcasting of news, much of which is
frankly stolen from Canadian Press member papers, while other news picked
up on the street by broadcasting stations proved misleading to the Commission and to the public.
value basis," the New York "Herald Tribune" of May 13
added in part:
Germany Holds Dr. Schacht of Reichsbank Hinted
Moratorium—Government Spokesman Says Difficulties Will Be Laid Before Creditors.
According to a Berlin account May 14 to the New York
"Times," the statement that Dr. Hjalmar Schacht, President of the Reichsbank, issued on his departure from New
York on May 13, was generally interpreted in. Berlin. as an
announcement that unless other agreements were concluded
Germany would declare a moratorium on her foreign indebtedness. The message to the "Times" went on to say:
Official government sources, while noncommittal, do not deny that a
moratorium may have been intimated in Dr. Schacht's statement, although
they do not admit that.
"The statement was quite unequivocal and clearly revealed the difficulties Germany faces despite her willingness to pay," one governmental
spokesman said. "These difficulties will be laid before the creditors and
we shall see."
The lIugenberg Press states flatly "it will be impossible for Germany
this year to raise the necessary exchange for her foreign payments."
According to information here invitations to a creditors' meeting will
probably be issued by the Reichsbank for the end of the month, possibly
May 25.
Germany's Notice to Bank for International Settlements That Payment on Dawes and Young Plan
Loans Will Not Be Made in Gold—Statement in
Behalf of Bank by J. P. Morgan & Co.
In our issue of May 13 (page 3262) we referred to the
press advices from Basle, Switzerland, to the effect that
Germany had informed the Bank for International Settlements that she intends to pay on June 1 the interest on the
dollar, pound and kronor portions of the international
Young 53/% loan on the basis of the face value of these
respective currencies instead of upon the gold basis. Similar
advices respecting the decision not to pay in gold the Oct. 15
interest on the 7% Dawes plan loan were conveyed by the
German Government to the Bank. On behalf of the Bank
for International Settlements the following announcements
regarding Germany's decision were issued on March 12 by
J. P. Morgan & Co.:
The President of the Bank for International Settlements announces that
the Finance Minister of the German Reich has to-day informed the Bank
for International Settlements, in its capacity as Trustee of the German
Government International 5%% Loan 1930 (Young Loan), that in view
of the decisions of certain courts of Great Britain to the effect that the
Interest and principal of sterling bonds containing the gold clause are
nevertheless payable in sterling at the nominal amount only, and also in
view of the action of the United States Government to the effect that
dollar bonds containing a gold coin clause are payable in current legal
tender at the nominal dollar amount only, consequently provision will be
made for the payment of the interest due June 1 1933 on the dollar sterling
and Swedish kronor trenches of the German Government International
5%% Loan, in those currencies at the nominal amount only of the respective coupons and not on a gold value basis. The general bond securing
all trenches of the loan provides: ". . . payable ... in the currency of
the country in which it is issued, the unit of such currency being defined
. . . in all circumstances by the weight of fine gold determined by law as
at present in force. The bondholder is entitled to receive the equivalent
at the due date of the same gold value in the currency of the place of payment, but not less than the nominal amount of the principal and interest
specified in each bond." Since Sept. 1931, when sterling and the Swedish
kronor left the gold standard, the above quoted clause has been faithfully
observed by the German Government, all maturities of the coupons of the
British and Swedish trenches having been paid at the full gold value.
Thus on Dec. 1 1932, the sterling coupon in the nominal amount of £2.15.0
was in fact paid at f4.3.0. The Bank for International Settlements, as
Trustee for the bondholders, has informed the German Government that
it cannot agree to the proposed change providing for payment on June 1
1933 in the various currencies at the nominal amount only of the respective
coupons and not on a gold basis; and further that it considers that such
a change is contrary to the obligations undertaken in the general bond.
Consequently the Trustee has requested the German Government to continue to comply with the terms of the general bond in the same manner
as heretofore, and has reserved all the rights of the bondholders with
respect to coupons maturing June 1 1933, and with respect to sinking
fund payments due.
BANK FOR INTERNATIONAL SETTLEMENTS,
Trustee.
The Trustees of the German External Loan 1924 (Dawe's Plan Loan)
announce that the Finance Minister of the German Reich has ha-day
informed them, through their Fiscal Agents, that it is the intention of the
German Government to effect future payments on account of the American
Tranche of the German External Loan 1924 in legal tender current in the
United States at the nominal dollar amount of the coupons and bonds
now outstanding. The definitive bond of the American Tranche of the
German External Loan 1924 provides for payment of principal and interest
"In gold coin of the United States of America of the standard of weight
and fineness existing on Oct. 15 1924.- The Trustees of the German External Loan 1924 have notified the German Government that the proposed
method of payment does not appear to them to correspond to the strict
terms of the definitive bond and that they reserve all the rights of the
bondholders.
BANK FOR INTERNATIONAL SETTLEMENTS,
Agents for Trustees.
1933.
May12
Noting that "thus the interest on the $164,000,000 of
these bonds outstanding in the United States will not be
paid, as provided in the general bond contract, on a gold
May 20 1933
German Bonds Break.
Notification that the June 1 coupon would be paid by the'Reich in paper
currency in this country, Great Britain and Sweden was sent to J.P. Morgan
& Co., which headed the syndicate floating the bonds in this country, by
the B. I. S., with the request that the announcement be given out here.
Although the news of the method of payment was not for general release
until to-day the bond market rather seemed to anticipate the German
Government's decision and the 61,60 dropped 4 points to a new low for the
year at 37. The German 7s, the Dawes plan bonds, declined 3% points.
After Great Britain and Sweden left gold in the fall of 1931 the German
Government lived up to the gold clause in the Dawes and Young loan
bond contracts. While it did not pay the British and Swedish holders in
actual gold it gave the gold equivalent in depreciated sterling and kronor.
But when the United States refused to honor its own gold clause, the German
Government, it appeared, felt that it could afford to ignore the gold clause
on that portion of its bonds held in paper currency countries. The B. I. S.,
nevertheless, has requested the German Government to continue to comply
with the terms of the general bond.
Germany Justifies Refusal to Pay Gold—American and
British Actions Cited as Precedents.
From the New York "Times" we take the following from
Berlin May 13:
Germany's decision to make payment of amounts falling due under the
Young plan on Tuesday not in gold but in bills of exchange, as communicated by the Reich Finance Minister to the Bank for International Settlements, is Justified on the grounds of alleged British and American prec.edents.
British court rulings are cited in regard to sterling loans. "Further,"
the semi-official commentary continues, "the United States Government
has taken the stand that dollar loans carrying a gold clause may be paid
even in foreign countries by legal means of payment without reference to
the gold clause."
"It will be the business of the World Economic Conference," the commentary concluded, "to effect a universal and uniform interpretation of
the scope of gold payment clauses."
German financial circles assert that, all other considerations apart, for
Germany to attempt to pay in gold would run counter to physical possibilities because she cannot obtain the gold. They are inclined, on the
whole, not to take the protest of the World Bank seriously. One spokesman said:
"This protest is to be regarded simply as notice of legal reservations,
which the Bank for International Settlements as the trustee for bonds is
obliged to file to prevent laying Itself open to subsequent retroactive
claims by bondholders."
Berlin Banks Buy Reich Bills—Fear That Cut in
Interest Rates Will Be Compulsory.
Berlin advices May 13 to the New York "Times" stated:
Fears that it will be compulsory for banks to reduce interest rates led
to buying of Treasury bills this week. To the payment of interest on the
Dawes loan is due the loss of 9,742,000 gold reichsmarks in the Reichsbank
return of May 6, but the real loss to the reserves is only half that, as in
the discount portfolio were booked 5,000,000 marks of new foreign currency bills which, owing to their long maturities, are not yet eligible as
currency reserve.
The prospect of replenishing reserves through export is negligible as
surpluses are small.
Prussia's Deficit Increases,
Advices May 13 from Berlin to the New York "Times"
said:
Prussia completed the financial year 1932-33 with an ordinary budget.
deficit of 181,000,000 marks and an extraordinary deficit of 38,000,000
marks, Including the deficit of preceding years carried over, the total
deficit is 367,000.000 marks and the floating debt 420,000,000.
Reichsbank Will Not Move to Reduce Germany's Private
Obligations According to Dr. Schacht—Before
Departure from United States Issues Statement
Indicating Representatives of Holders of Obligations Will Be Asked to Confer in Berlin.
Before his departure from the United States on May 13,
Dr. Hjalmar Schacht, President of the German Reichsbank,
issued a statement bearing on Germany's obligations, in
which he said that "the problem of meeting our foreign
debts does not lie in the possible difficulty of having payments made by the individual debtor, but in the difficulty
of procuring the foreign exchange which is needed for making
the transfer into foreign currency." In view of the foreign
exchange situation he said, "I intend to ask representatives
of holders of German obligations in the various foreign countries to convene in Berlin at once and go into the situation
with us and have them consider what would be the best
means of meeting the present situation."
A further statement by Dr. Schacht that the Reichsbank
will not make any proposal for the scaling down of private
foreign debts or suspension of payments or reduction of
interest was contained in a message by him from the Europa
on May 14 on which he departed for Berlin on May 13, after
conferences with President Roosevelt preparatory to the World
Monetary and Economic Conference. As to this message
we quote as follows from the New York "Journal of Commerce" of May 15:
lie added that no moratorium for mark payments of debtors will be
asked for.
The message was sent to Dr. Karl Nordhoff. a director of the Reichsbank,
who accompanied Dr. Schacht on his visit to the United States, but who
Is remaining over here for a few days.
Volume 136
Financial Chronicle
To Protect Creditors.
The message follows:
"At the request of a New York newspaper for further information please
communicate to the press as follows:
"No proposal regarding scaling down of private foreign debts or suspension of payment or reduction of interest will be made by Reichsbank.
We intend to protect the creditors in every respect. No moratorium for
mark payments of debtors will be asked for.
"The sole problem is how to convert marks into foregn exchange which
Is lacking because of permanent shrinkage of trade. Furthermore, no
proposal as to discriminating between groups of creditors will come from
our side. We just want to discuss the situation with all groups and to
get advice."
Dr. Schacht's statement of May 13, regarding the proposed
cenference on German debts was given out by him at a
reception in his honor at the Hotel Sherry Netherland before
he boarded the Europa. This statement follows:
•I have just come back from Washington, where I have been a special
envoy of the German Government, on the invitation of the President,
In order to confer with the respective authorities about the agenda for the
World Economic Conference to be held in London June 12. I have been
received in the kindest manner, and opportunities were given to me to
talk over various problems which have arisen from the depressed state of the
world's economic life. I have told my impressions about my Washington
conversations already to the representatives of the press in Washington
before leaving, so I have nothing to add on that subject.
On my return to Europe, for which I am leaving to-night, by the North
German Lloyd steamer Europa, I have had time for only one day's stop
in New York. I have come to New York not in the capacity of a Government envoy, but in my capacity as head of the Reichsbank. On the invitation of the Governor of the Federal Reserve Bank of New York, I have
made my headquarters in New York at that Bank, where I have passed
many instructive days in the past.
I have taken the opportunity to-day of talking about banking and
currency subjects, which, because they concern private creditors, could
not be the subject of discussion between governments.
The problem of meeting our foreign private debts does not lie in the possible difficulty of having payments made by the individual debtor, but
In the difficulty of securing the foreign exchange, which is needed for making
the transfer in foreign currency.
As all the foreign exchange flowing into
the country has to be delivered under the present law to the Reichsbank,
the debtor can obtain foreign exchange only from the Reichsbank.
Two years and a half ago the Reichsbank had some $750,000,000 in
gold and foreign exchange, derived partly from trade and partly from other
sources. Since then German debtors have paid back $2,500,000.000 In
gold and foreign exchange on foreign debts, which has brought the gold
and foreign exchange reserve in the Reichsbank down to an exceedingly
low figiure.
From the Reichsbank status it is to be seen that this figure is decreasing
every week. In view of this situation, I intend to ask representatives of
holders of German obligations in the various foreign countries to convene in
Berlin at once and to go into the situation with us and have them consider what would be the best means of meeting the present situation.
Formation of Syndicate of American Creditors Owning
German Blocked Accounts—Plans Exchange of
Them for Dollars.
The formation of the Syndicate of American Creditors
Owning German Blocked Accounts to exchange with the
consent of German Exchange Control marks held by Americans in Germany for the dollars of buyers of German goods
having bills in marks to pay, is being completed under the
auspices of the Harriman International Co. 0.C. Harriman,
son of Oliver Harriman of Harriman & Co., is the head of
the Harriman International Co. We quote from the New
York "Sun" of last night (May 19), which also had the following to say:
Mr. Harriman said that the exchanges of blocked marks for dollars
would be on a commission basis, his company acting as intermediary.
Dollars paid to the syndicate in payment for blocked marks would be
distributed on the 10th of each month on a pro rata basis to members of the
syndicate, the rate of exchange being the rate prevailing on the date the
blocked marks are sold to American importers. The syndicate managers,
expect to have a representative, Dr. C. Herman Ohse. at the meeting o
German creditors at the Reichsbank May 29.
The syndicate will be composed of American private concerns, and individuals owning balances in Germany which are now blocked.
It is expected there will be in the syndicate about 150 members holding
between 26.000,000 marks and 30,000,000 marks in blocked accounts.
The syndicate manager would undertake to make these blocked marks
available to American importers for use in payment for German goods.
Under agreement which is being worked out with the German Exchange
Control, an American importer would pay for German goods 75% in dollars
and 25% in blocked marks. On a payment of $100,000 the American
importing firm would pay $75,000 in dollars to the depositary designated
by the Reichsbank; the Reichsbank would pay the equivalent in marks to
the German exporter;the remaining $25,000 would be paid to the syndicate,
the syndicate would supply the American importer with $25,000 in blocked
marks, and the importer would pay the blocked marks to the German
exporter.
Albert H. Wiggin Sails for Berlin To-day to Attend
Conference on May 29 of Germany's Foreign
Creditors—Will Represent "Stand Still" Group—
John Foster Dulles to Represent Bankers Who
Marketed Issues.
Albert H. Wiggin, Chairman of the committee representing Germany's short term or "stand still" credits, will
sail for Germany to-day (May 20) on the steamer Bremen
to participate in the conference.on Germany's foreign credits.
Regarding the calling of the conference, we quote the following (copyright) from Berlin, May 15, to the New York
"Herald Tribune":
The board of directors of the Reichsbank to-day Issued an invitation to
Germany's private creditors to assemble in Berlin on May 26 to consider
3449
granting to the Reich a transfer moratorium, as demanded by Dr. Hjalmar
Schacht, President of the bank.
This proposal, made by Dr. Schacht as he was leaving American shores,
was greeted with a chorus of vociferous approval by the German press,
which was unanimous in declaring that the steady decline of the Reich's
favorable trade balance and the dwindling of the Reiciasbank's reserves of
foreign exchange made it impossible for this country to meet the interest
service on its private debts in the currency of the creditor nations. Some
Nationalist newspapers even go to the length of insisting that Germany
must receive full equality of armaments at Geneva and obtain the return
of her colonies if the foreign creditors expect to get their money back.
Dr. Schacht's statement urging the conference is given
elsewhere in our issue to-day. It was stated in the New
York "Times" of May 19 that although the conference has
been scheduled for May 26, bankers here forwarded a
request to the Reichsbank on May 18, asking that the
meeting be delayed until May 29, in order to allow the
American representatives to reach Berlin in time far the
opening of the conference. The Reichsbank announced
yesterday (May 19) that it had acceded to the request to
delay themeeting until May 29. In addition to Mr. Wiggin,
it was announced on May 18 that John Foster Dulles, of
the law firm of Sullivan & Cromwell has been delegated
by the banking houses marketing German bonds to attend
the Berlin meeting "with a view to informing himself as
to the entire situation and reporting thereon." Meetings
have been held during the current week at the New York
Federal Reserve Bank incident to the coming conference,
as to which the New York "Journal of Commerce" of May
17 said:
Members of the American committee on German standstill credits at a
meeting yesterday afternoon in the Federal Reserve Bank Building agreed
to send a representative to Berlin to attend the May 26 creditors conference
called by the Reichsbank. At this conference the creditors will be told that
Germany can pay foreign debt service only in blocked reichmarks.
Albert H. Wiggin,former head of the Chase National Bank, was asked to
go to Germany. . . .
Meeting Hastily Called.
The invitation to the conference was cabled to the Federal Reserve Bank
of New York on Monday with the request that the Reserve officials communicate it to interested parties. The standstill committee and the Investment Bankers' Association at once were informed of the message and a joint
meeting of both groups was hastily called. While both commercial and
Investment bankers attended yesterday's conference, only standstill credits
were discussed.
There were several informal meetings yesterday of bankers who floated
long term German securities and who hold short term credits to German
municipalities which are not included in the standstill agreement. They
will hold a general meeting to-day to decide upon delegates. ...
The declaration of a transfer moratorium on Germany's debts would
apply equally to all classes of indebtedness. Hurriedly summoned to a
conference, attendance of which would demand immediate departure for
Berlin, bankers have not yet formulated any definite policy to be adopted
In Berlin on the question of whether they should call for preferences on
special classes of credits.
Regarding the request to Mr. Wiggin to represent the
short term creditors an announcement May 17 said:
Albert R. Wiggin, who for the past two years has been Chairman of the
American Standstill Committee of Short-Term Creditors of Germany,
to-day consented to represent the American Creditor banks at the conference which has been called by Dr. Hjalmar Schackt. President of the
German Reichsbank, to be held in Berlin at the end of May. Mr. Wiggin
was requested to represent these banks at a meeting that was held at the
Federal Reserve Bank of New York; he will sail on the S.S. "Bremen"
Saturday night.
The meeting called by Dr. Schacht is to be attended by representatives
of Germany's important foreign creditors, both long and short-term. The
subject to be discussed will be that of Germany's foreign exchange situation.
This will be the fifth trip which Mr. Wiggin has taken to Europe within
the past two years on behalf of the American banks interested in Germany's
commercial credits. He returned to New York from his last trip on March
28. It will be remembered that Mr. Wiggin was appointed as Chairman
of the Standstill Committee in July 1931, at the instance of the Federal
Reserve Bank.
The announcement regarding the appointment of Mr.
Dulles was made as follows in a statement mode to the
press on May 18 by representatives of the houses of issue
through the Federal Reserve Bank of New York.
The Federal Reserve Bank has been advised by the Reichsbank that
the German foreign exchange position is such that in the judgment of the
Reichsbank there should be an immediate discussion with creditors on the
question of transfer offoreign exchange. The Reichsbank further requested
that the Standstill Committee be notified as well as the issue houses for
German bonds and requested to send representatives to Berlin to participate in such discussions. With respect to the latter point, the Federal
Reserve Bank brought the communication from the Reichsbank to the
attention of the Foreign Securities Committee of the Investment Bankers
Association, which in turn has arranged a meeting of American houses of
Issue which have sponsored flotations of German bonds. As a result of
their meeting on this subject, they have reached the conclusion that, in
view of the fact that German bonds are widely scattered, it is not practicable or desirable for any person or group to represent such bonds officially
nor, in the absence of further information, does it appear desirable to put
the bondholders to the expense and inconvenience which would be involved
In their being definitely organized. On the other hand it was felt desirable
that there should be present at the conference to be held at the Reichsbank some one who would have in mind the interest and position of the
bondholders. Accordingly the group of houses of issue has invited Mr.
John Foster Dulles to attend the meeting in Berlin with a view to informing
himself as to the entire situation and reporting thereon. Mr. Dulles
has accepted the invitation to act in this capacity.
From the "Times" of May 18 we take the following:
As bankers here understand it, Dr. Schacht intends to include in the
scope of his conference the entire $4,589,000,000 which Germany owes the
3450
Financial Chronicle
rest of the world at long and short term. Bankers here are agreed, however,
that the Young plan and Dawes plan bonds, which are obligations of the
German Government, specifically secured, are in a different category from
German private obligations. The Bank for International Settlements, as
trustee of the two government loans, is relied upon to concern itself with the
interests of bondholders.
Expert in Foreign Loans.
Mr. Dulles, who is an authority on foreign loans, recently completed an
exhaustive report on the finances of the Hungarian Government which was
published by the Institute of International Finance which is conducted by
the Investment Bankers Association of America in co-operation with New
York University. He was chosen for the coming conference at a meeting
of bankers at the Federal Reserve Bank.
Mr. Dulles, It was explained, will represent the holders of German dollar
bonds only in the sense that he will attend all meetings of the conference and
inform himself fully as to the situation and make his report to the bankers,
who in turn will announce the report for the benefit of the holders of some
$1,200,000,000 of German dollar bonds. No organization of bondholders is
contemplated in view of the wide distribution of the 125 German dollar bond
issues outstanding here.
Dr. Carl Nordhoff Sails for Germany.
Dr. Carl Nordhoff, Director of the Reichsbank and head
of the bank's statistical and research department, sailed from
New York for Germany on May 17 according to the "Wall
Street Journal" of May 18, which further said:
He accompanied Dr. Hjalmar Schacht, President of the Reichsbank, on
his recent visit to the United States, and remained here after Dr. Schacht
returned.
Reichsbank Notifies England of Conference on
Germany's Debts.
Associated Press advices from London, May 19, to the
New York "Herald Tribune" said:
A telegram from the German Reichsbank to the Bank of England to-day
said the "German foreign exchange position is so unfavorable and the question of further transfer of funds for debt service is so seriously affected that
direct discussion with creditors is necessary.
"We therefore request you," the telegram continued, "to notify immediately the English bank committees for private and public debts and, also,
since direct communication with bondholders is probably impossible, the
issuing houses and trustees of German issues in your country,and we hereby
invite them to a meeting at our bank May 26 in order to obtain a direct discussion of the problem."
Germany's Exports Cut by 10% in April—Loss in
Favorable Balance Held to $810,000 by 11% Slash
in Imports—Trade During Month Conducted on
Basis of Pre-Boycott Contracts.
Wireless advices as follows from Berlin May 16 are from
the New York "Times":
Germany's foreign trade balance for April shows an export surplus of
60,706,000 marks (about $16,389,000 at present exchange), as compared
with 63,700,000 marks (about $17,199,000) for March. Exports decreased
approximately 10%, but this decrease was compensated for by an 11%
reduction of imports.
Imports decreased from 362,000,000 marks in March to 321,000,000 in
April because of the recent import restrictions. Among the countries
showing the biggest drop in exports to Germany was the United States,
German imports of American cotton declining by 5,600,000 marks.
Although these figures reveal a new shrinkage in foreign trade, the comparative steadiness of the export surplus is hailed in business and financial
circles with considerable relief and contributed to a sudden boom on the
Stock Exchange to-day.
The active balance is not only contrary to the usual seasonal trend but
it has also partly allayed the home fears aroused by the boycott movement
against German goods abroad.
It was pointed out, however, that in April trade was still being conducted
on the basis of contracts concluded before the boycott movement started,
so the actual effect will not show itself until later.
A Even so, the April figures bear out the statement made by numerous
German business men that the uncertainty brought about by the Hitler
regime had put a stop to the revival of business that had become evident
during the early Spring and that led to a large increase in Germany's
foreign trade during March.
The active trade balance may provide some comfort for Germany's
creditors. It will not affect the impending transfer moratorium of which
Dr. Hjalmar Schacht, the President of the Reichsbank, has given notice
by his summons for a creditors' meeting in Berlin, May 26, but it increases
the chances that Germany will continue to pay at least part of her foreign
obligations.
To meet all her obligations Germany needs approximately 80,000,000
marks in gold or foreign exchange monthly. Thus far this year her export
surplus falls short of this by 146,000,000 marks, but invisible exports and
possible income from abroad should improve this showing in her balance
of payments.
On the basis of this showing Germany should be able to pay more than
half her foreign obligations without recourse to her capital resources abroad.
That these resources are large has just been revealed by the Government's
offer of amnesty to those Germans who put their capital holdings abroad
in the service of the Government's public works loan.
Interesting in this connection are the proposals advanced by German
business circles for making use of the mark balances to be held in trust by
the Reichsbank for the foreign creditors if and when the transfer moratorium is put into effect.
It is suggested that these marks may be used to make purchases of
German goods, but in such a way as to "avoid damaging Germany's regular
foreign trade." In other words, a method is being devised to employ the
impounded marks for increasing Germany's export trade, possibly by additional inducements to the creditor countries to buy German goods.
At the same time it is becoming apparent, although Dr. Schacht has
repudiated efforts to obtain a reduction of interest and amortization rates
on Germany's foreign obligations, that pressure is to be put on the creditors at the meeting to propose such a reduction of their own accord on the
grounds that this would naturally facilitate Germany's meeting her obligations in full.
May 20 1933
Government Aid to German-Russian Trade Continues.
Although modifications in methods have occurred as
necessitated by changing credit conditions in the two
countries, the German Government's policy of facilitating
financing of German exports to Russia has undergone no
fundamental change in the last two or three years, according
to the Commerce Department's Regional Division. Under
date of May 12 the Department further said:
After the expiration of the Piatakoff agreement in the spring of 1932,
another basic agreement covering Russian contracts with Germans was
negotiated with May 31 1933. stipulated as the date of expiration. This
agreement has now been extended under the same terms until the end of
this year.
Under the existing agreement, German export credits to Russia, which
may be eligible for government guaranty are in principle limited to a period
of 28 months
German shipments to Russia in 1932 were maintained at a relatively
high level, with exports valued at 625.800,000 marks and imports at 270,900,000 marks compared with 762,200,000 and 303,500,000 marks, respectively, in 1931.
The outstanding guaranties undertaken jointly by the Reich and State
Governments amount to about 650,000,000 marks, representing a contract
value of about 1,000,000,000 marks.
The government guaranty now covers 60% of the contract value in
approved cases, of which the Reich assumes 35% and the States 25%, as
against 70, 40 and 30%, respectively, under the former agreement. The
charge for this guaranty is 2% of the contract price of the merchandise
(invoice value) for the first 12 months, and the rate increases 3 % for each
additional 3 months. There is a further charge of
of 1% if the guaranty
is to cover risk during the period of manufacture.
In a limited number of contracts not eligible for government guaranty,
the German manufacturer has the possibility of insuring his contract with
the Hermes Insurance Co., Berlin. This company has an agreement with
the Reich by which the Government undertakes to guarantee the company
against losses incurred in its assumption of Russian risks. The premium
charged by the company range from 1% for 3 months to 2% for the maximum period of 12 months.
German credits to Russia maturing in 1933 total about 700,000,000
marks. Due to low prices and steadily decreasing export markets, there
has been considerable difficulty in meeting these obligations. Spring
maturities were met with the aid of German banks which granted credits
totaling 140,000,000 marks against the security of future shipments of
gold and other commodities.
The German Government has also given the Russians permission to
purchase up to 60,000,000 "blocked marks" held in Germany for foreign
account. Such blacked marks can usually be purchased from foreign
owners at a substantial discount, ranging from 10% upward.
Boycott on German Products Is Declared by Organizations Representing 2,000,000 Jews in Metropolitan New York Area.
Organizations representing 2,000,000 Jews in the Metropolitan area of New York City proclaimed an economic boycott of Germany until the rights of German Jews are restored, at a conference held at the Hotel Astor on May 14
under the auspices of the American League for the Defense
of Jewish Rights. Nearly 600 delegates representing 288
organizations attended, and gave their unanimous approval
to the boycott resolution. The purpose of the boycott was
given in a statement issued on May 15 by Dr. A. Coralnik,
Chairman of the Boycott Committee. His statement read:
It is our basic policy to divide the struggle against Hitlerism into two
distinct ports—political and economic. The political side we are leaving
to be conducted by the properly constituted authorities of the government
and by Jewish official bodies in co-operation with such non-Jewish organizations as are in sympathy with our cause. The economic side must be confined to traders and industrialists, of whom as many as possible must be
mobilized by the league, and must be a purely commercial movement. Hitler must be given to understand that decent business men will refuse to
trade with a country in which racial discrimination prevails.
Strike in Danzig Follows Seizure of Labor Union
Headquarters by Nazis.
Socialist and Communist workers in the Free City of
Danzig went on strike on May 13 as a protest against Nazi
seizure of trade union headquarters on the preceding day.
The strikers comprised harbor workers and the printing
staffs of two newspapers. The Socialists had proclaimed a
general strike, but it was only partly effective. The National Socialists had occupied the headquarters of the labor
union on May 12 in order to "co-ordinate" it with unions
taken over by Nazis in Germany. A protest parade immediately marched before the office of the League of Nations
commissioner, but was dispersed by the police,
Hitler Victory in Germany Seen as Defining Political
t,, Alignments in Foreign Policy Association Report.
The victory of Hitlerism in Germany has served to bring
about political alignments that have split Europe into two
camps—that of the revisionist powers and that of the nations
demanding preservation of the status quo—according to a
report by Vera Micheies Dean, made public on May 14 by
the Foreign Policy Association. "France, alarmed by German nationalism, is seeking closer relations with the Soviet
Union, until recently one of Germany's stanchest post-war
friends, and with Italy, which supports the German demand
for treaty revision," the report said. It added:
Volume 136
Financial Chronicle
Germany, meanwhile, is attempting to create a Fascist and revisionist
bloc with the aid of Italy, which appears destined to occupy a key position
in European diplomatic negotiations. The Little Entente States, fearing
that Hitler's victory may result in territorial changes at their expense, have
tightened their mutual bonds and invited Poland's collaboration in their
campaign against treaty revision.
Finally, Great Britain, reluctant to assume additional responsibility for
the protection of France and its Eastern European allies against aggression
by the defeated powers, has attempted, in concert with Italy, to work out
a formula which would achieve Franco-German reconciliation and the eventual pacification of Europe, without which all hopes of military and economic disarmament are doomed to failure.
The ferment which to-day marks European relations is due both to growing dissatisfaction with the terms of the settlement reached at the Paris
conference of 1919 and to fear on the part of the victors that the vanquished
may attempt to revise this settlement by force.
Nazis Consider Plan to Cut Germany's Farm Debts—
Cancellation of Part of First Mortgages and Halving
of Other Obligations Proposed.
According to Associated Press advices May 12 from
Berlin to the New York "Times," the Nazi regime is preparing new efforts to help the farmers, one suggested plan
being the complete cancellation of farm debts. The account
continued:
Under this plan, first mortgages, where they exceed 60% of the value
of the farm, will be reduced to that amount. In the case of long-term
loans, granted when the farms were worth from three to five times their
present value, lenders stand to lose millions of marks.
After the slash in the first mortgages, other debts are to be halved. In
the case of the mortgages, the Government will extend a credit of 100,000,000 marks (about $38,500,000) but expects the banks to absorb a
large share of the reductions themselves. Since the Government is the
biggest stockholder in the German banking system, the banks in the final
analysis are the Government. Taxpayers will foot the bill.
The proposals do not have a direct effect on American capital invested
here or loaned to German banks, only in so far as the scheme will reduce
the earnings of the German banks with which the borrowed capital must
be repaid. Dr. Hugenberg, in thawing up the plans, supports a plan
which sank the Bruening and von Schleicher Cabinets, namely that:
"Landlords, for whom this debt absolution does not suffice, can obtain
additional absolution by turning over parts of their holdings to the Government for settlements and small farms for the unemployed."
Nazis Worry World, Declares Stanley Baldwin of Great
Britain—"Every Foreign Office" Filled with Anxiety
as World Parley Approaches, He Said.
Stanley Baldwin, leader of the Conservative Party and
a member of the British Cabinet, declared on May 12
that startling changes in Germany "have filled every foreign
office with anxiety." He was addressing women Conservative3 in Albert Hall, s id an Ass3ciated Press account
from London May 12 to the New York "Times," which
quoted him as follows:
"We are looking with hopeful anticipation to the meeting In London
of the World Economic Conference.
"There our problems have not been made easier by the condition of
things in the United States and their having gone off gold, and in general
International politics they have been made indefinitely harder by startling
changes in Germany, which have filled every Foreign Office with anxiety
as to what the future may hold."
Leipzig Fur Auction Reported Failure—Boycott Organized by Jews in Retaliation Against Germans.
The following (Canadian Press) from Leipzig, Germany,
May 12 is from the New York "Times":
The long-renowned Leipzig fur auction proved a complete failure to-day
boycot arranged by Jewish buyers. It is
understood that, due to the entire absence of British. French and American
buyers. $3,000,000 worth of furs were withdrawn from auction owing to
lack of buyers.
Business ordinarily transacted on the Leipzig auction, it is believed, has
been transferred to Beaver Hall in London, whore increased activitiy is
reported.
The Nazi party earlier in the week had made an attempt to retain the
business of the Jewish buyers by announcing that Jewish firms engaged
in the fur trade would not be subjected to interference as long as they
conducted their business in a proper manner. It is estimated 90% of the
world's fur trade is controlled by Jews.
as a result of an international
National Socialists Burn Books in German University
Towns.
Books and pamphlets considered to represent the "un-German spirit" were ceremoniously burned in approximately 30
German university towns on the night of May 10. Many of
the works were by Jewish authors, while Americans and
other foreigners were represented. Pacifism in literature
was a favored target of the demonstrators, as was any subject which was regarded as opposing a "nationalistic" German spirit. The entire procedure was described by most
foreign newspaper commentators as decidedly childish.
Protest Parades in American Cities Against German
Treatment of Jews-100,000 March in New York,
50,000 in Chicago and 20,000 in Philadelphia.
Parades in protest against recent treatment of Jews in
Germany were held at many leading cities in the United
States on May 10, In New York City 100,000 Jews and
many Christian sympathizers were in the line of march,
3451
while the Chicago parade was estimated to include 50,000
and the parade at Philadelphia 20,000. In each case the
marchers heard speakers who denounced anti-Semitism and
condemned the Hitler movement. The principal speakers
In New York City were Major-General John F. O'Ryan, former Secretary of State Bainbridge Colby,former Representative F. H. La Guardia, and John Haynes Holmes.
Temporary Suspension of Interest Payment on
Panama Bonds.
Announcement that the Panama Government had ordered
temporary suspension of the interest payment due May 15
on a $12,000,000 debts consolidation loan negotiated in
1928 with the National City Bank w as contained in Associated Press advices from Panama City, May 11, published
in the New York "Herald Tribune" of May 13, which also
said:
A communique stated that the government was compelled to adopt this
course owing to monetary conditions and the possibility of considerable
deficit during the coming month because of a continued decrease in revenue,
The statement also asserted there was a possibility that competition
created by Canal Zone authorities in connection with beer sales in the
Panama Canal strip would aggravate Panama's crisis.
The government announced that suspension of the interest payments will
not lessen the Administration's efforts to economize.
According to press advices in this city the amount of bonds
outstanding is approximately $11,500,000. On May 15 the
National City Bank of New York made public the following
translation of a cablegram addressed to the Consul General
of Panama, New York, by Sosa, Comptroller General.
Please deliver the following message to The National City Bank of
New York:
Secretary of the Treasury delivered the following note to the Panama
Branch of The National City Bank of New York, Fiscal Agent for the 5%
bonds due 1963.
Dear Sirs:.
The Executive Power, with the approval of the Advisory Committee of
the National Assembly has dee ded to suspend temporarily the payment
of interest maturing the 15th of this month on the 5% bonds due 1963.
This decision has been taken after careful study of the position of the
Treasury which does not permit at this time the payment of the considerable
amounts which the aforementioned interest would require. Panama naturally regrets exceedingly the necessity for even a temporary suspension ofsuch
Interest payments and the Executive Power is trraly resolved to take all
measures within his power to prevent the suspension being prolonged. If
the world crisis continues and Panama is obliged to continue this suspension
during one or more periods of interest payments the Executive Power will
propose to the holders of the bonds through the Fiscal Agent a plan for the
payment of interest during this period either by means of scrip or in such
other form as may be satisfactory to the bondholders. In any case the
Executive Power is sure of being able to pay at least a part of the interest
maturing Nov. 15 of this year. The Government of Panama would appreciate it if the Fiscal Agent will make known to the holders of bonds of this
loan the decision it has taken with respect to the interest maturing the 15th
of this month. The Government also wishes the bondholders to be informed
that this decision has been necessitated by the world crisis and that the
Government is doing everything possible to resume the payment of this
debt at the earliest possible date.
Bank of New South Wales Never Closed.
The following letter is self-explanatory:
UNIVERSITY STATE BANK.
Chicago, April 28 1933.
Commercial & Financial Chronicle,
New York City, N. Y.
Gentlemen:—Under date of Dec. 30 1932, I wrote a letter to Senator
J. Hamilton Lewis on branch banking in which the statement was made
that the Bank of New South Wales, with deposits of $425,000,000. was
closed. This was In error and is most regrettable. The Government
Bank of New South Wales was the one reported closed, and the error
resulted on account of the similarity of names. I understand this bank
has since been taken over by the Commonwealth Bank of Australia and no
loss has been suffered by its depositors.
It would be very much appreciated if you could give some publicity to
this statement for certainly any injustice done a good sound bank like the
Bank of New South Wales is deeply regretted.
Very truly yours.
R. 0. BYERRUM, Vice-President.
$700,000 Republic of Poland 8% Bonds Drawn for
Redemption.
Dillon, Read & Co., as sinking fund trustee for the Republic of Poland 25-year sinking fund external 8% bonds,
announce that $700,000 principal amount of the issue have
been drawn for redemption, at 105 and interest, on July 1
out of moneys to be paid for sinking fund purposes. Payment will be made at the office of Dillon, Read & Co.
in New York.
Bonds of Republic of Panama to Be Dealt in "Flat" on
New York Stock Exchange,
Ashbel Green,Secretary of the New York Stock Exchange,
issued the following announcement on May 15, with regard
to interest due on that day on bonds of Republic of Panama:
NEW YORK STOCK EXCHANGE.
Cominitte on Securities.
May 15 1933.
Notice having been received that the interest due May 15 1933, on
Republic of Panama 35-year 5% external secured sinking fund gold bonds.
series A, due 1963, is not being paid:
Financial Chronicle
3452
May 20 1933
was its first official act since it was named by Governor Lehman. The plan of Mr. Van Schaick contemplates the administration of the National Surety Co.'s guaranteed mortgage business and other slow assets for the benefit of policy
holders and other creditors, without the violent effects of
Ruling by New York Stock Exchange on 15-Year immediate liquidation. A separate corporation is to handle
External Reconstruction Secured 6% Gold Loan the mortgage business as of the old company, and this
of City of Soissons (France).
may involve the issue of participating certificates to holders
The following notice was issued by the New York Stock of mortgage paper guaranteed by the old company,it is said.
Exchange on May 15 through its Secretary, Ashbel Green: These certificates will enable them to share in the liquidation
NEW YORK STOCK EXCHANGE.
of the mortgages underlying the guarantees of the old comCommittee on Securities.
pany.
May 15 1933.
These obligations, based upon real estate securities which
In view of the arrangements made for the payment of the May 14 1933,
were guaranteed by the old company, were issued by twentyCoupons attached to City of Soissons (France) 15-year external reconstruction secured 6% gold loan, due 1936, at the option of the holder either
two mortgage companiesin various parts of the United States.
(a) upon presentation and surrender of such coupons at the office of GuarSeventeen of these companies are owned or controlled by
anty Trust Co. of New York, American paying agent, or (b) in United
the old company.
States currency at the dollar equivalent of the amount of French francs
payable on coupons at gold parity of exchange, that is, francs 25.52 per
Mr. Van Schaick announced that the new business of the
agent,
paying
American
the
to
surrendered
and
presented
dollar of coupons
National Surety Corporation will be limited to those classes
such dollar equivalent to be computed by them on the basis of their average
and territories which had proved profitable to the old. It
buying rate in New York for exchange on Paris on the day such coupons
are presented:
will handle largely fidelity insurance.
the
in
contracts
of
settlement
in
that
rules
Securities
The Committee on
The reorganization plan provides that the new surety
said bonds on which delivery was due prior to the interest-payment date
and should have been made with the next due coupon attached, but where
company assume the payment of further losses occurring
coupon
the
without
delivery is made on or after the interest-payment date
under the unexpired bonds, policies and contracts of inattached, and in settlement of contracts in said bonds made "delayed dedemnity or insurance of the old company after a certain date
livery" between Saturday. May 6 1933, and Thursday, May 11 1933,
inclusive, the cash settlement made in lieu of the coupons shall be at the
out of a loss reserve which will be paid to the new company
option of the purchaser on the basis of (1) United States currency in New
by the rehabilitator out of the assets of the old.
equivalent
dollar
the
at
York
New
York or (2) United States currency in
The State Insurance Department will hold all the stock for
of French francs at gold parity of exchnage, the said dollar equivalent to
be computed at the rate at which coupons may be cashed at the office of
present in the National Security Corporation.
the
the paying agent on the date of actual delivery, under option (b) referred
connection with the reorganization and the creation of
In
to above.
the new company, William B. Joyce, Chairman, issued the
The computation of accrued interest is not changed by this ruling.
ASHBEL GREEN,
following statement:
Secretary. •
The Committee on Securities rules that beginning Monday. May 15
1933, and until further notice the said bonds shall be dealt in "Flat"and to
be a delivery must carry the May 15 1933, and subsequent coupons.
ASHBEL GREEN,
Secretary.
New York Stock Exchange Revises Brokers Commission
Rates on Bonds Selling at Less Than $10 per
$1,000 of Principal.
The amendment to the constitution of the New York
Stock Exchange, adopted by the Governing Committee on
April 26 revising the brokers' commissions on bonds selling
at less than $10 each, has been ratified by the members of
the Exchange, effective May 11. The following announcement, explaining the new commission rates, was issued on
that day by Ashbell Green, Secretary of the Stock Exchange
(Hitherto the commission rates had been "mutually agreed
upon."):
NEW YORK STOCK EXCHANGE.
Office of the Secretary.
May 11 1933.
To the Members:
The amendment to Section 2 of Article 19 of the Constitution,submitted
to members on April 27 1933, is effective this date, changing the minimum
commissions on bonds selling at less than $10 per $1,000 of principal from a
mutual agreement basis to the following.
75c.
To non-members
50c.
To members(when a principal is not given up)
up)
25c.
given
is
principal
a
(when
members
To
The Committee on Quotations and Commissions has determined that,
effective this date, on bonds or notes which, pursuant to call or otherwise,
are to be redeemed within twelve months,the following rates of commission,
per $1,000 of principal, shall apply:
$1.25
To non-members
80c
To members (when a principal is not given up)
50c.
To members(when a principal is given up)
redeemed
be
to
are
within
otherwise,
or
Stocks which, pursuant to call
twelve months, the rates of commission thereon may be mutually agreed
upon.
ASHBELL GREEN,
Secretary.
National Surety Co. Taken Over by New York State
New Company,
Superintendent of Insurance
National Surety Corporation, Organized to Operate with Liquid Assets on Limited Basis.
The National Surety Co. said to be one of the largest concerns of its kind in the United States, was taken over at
noon, April 29 for reorganization by George S. Van Schaick,
Superintendent of Insurance of the State of New York.
Frozen assets were cited as the reason. The action of the
Insurance Department,taken at the request of the company's
board of directors, was approved by Supreme Court Justice
Edward Gavegan. In announcing, he was taking over the
property of the company, Mr. Van Schaick said a new organization (which began operations May 1) would take over the
business of the concern on a restricted basis. The new
corporation, licensed by Mr. Van Schaick, is known as the
National Surety Corporation, with assets of $11,000,000. It
starts with a capital of $1,000,000 and a surplus of $3,000,000
and the rest provided out of the liquid assets of the old
company.
The plan to reorganize the National Surety Co. was recommended by the new State Advisory Insurance Board, and
The wise and prompt action of Superintendent of Insurance Van Schaick
in sponsoring a reorganization plan for the National Surety Co. through the
formation of the National Surety Corp. under the same management has
averted a situation which might have had far reaching consequences.
The immediate cause of the action of the board of directors of the old
company in consenting to the reorganization plan was a shortage of cash
occasioned by the bank holiday, slowing up premium collections and tying
up funds of borrowers on mortgages, followed by damaging rumors which
were promptly and widely disseminated practically all over the nation.
This caused a run on the company, necessitating a large cash outlay for
return premiums. The result was a large reduction of business, with corresponding reduction of cash income.
The National Surety Co. had a long and honorable record Its successor.
the National Surety Corp., will be a success from the start; it will hold the
valuable part of the old organization together. It has ample capital and
surplus and no obligations for borrowed money. It has assumed no liability
on mortgage guarantees, or depository bonds covering deposits in closed
banks operated on a limited withdrawal basis, the two classes which contributed materially to the situation in which the old company found itself..
The statement of George S. Van Schaick, Superintendent
of Insurance of the State of New York,relative to reorganization of the National Surety Co.,follows:
A comprehensive plan of reorganization of the National Surety Co. was
effectuated April 29 by, the Superintendent of Insurance pursuant to the
authority of an order entered in the Supreme Court of New York. A new
surety corporation, the National Surety Corp., has been organized under
the laws of New York and commences business May 1, having taken over
the good-will, staff, agency plant, equipment and supplies of the old company and having assumed liability for future and unreported losses on a
considerable portion of the old company's outstanding business. It will
engage immediately in the transaction of new business.
Provision also is made in the rehabilitation plan for immediate steps to
be taken to handle through a separate organization the guaranteed mortgage
business of the old company and the assets appurtenant thereto, with the
remaining assets to be administered by the Superintendent of Insurance or
by a corporation to be formed for that purpose for the benefit of other
creditors and policyholders of the old company. In the interim the stock
of the new National Surety Corp. is held by the Superintendent of Insurance
for the benefit of all creditors and policyholders of the National Surety Co.
The order under which the rehabilitation plan became operative was
entered April 29 by Justice Edward J. Gavegan, sitting in Special Term
of the Supreme Court of New York, New York County, Part 1. AttorneyGeneral John J. Bennett Jr., represented the Superintendent of Insurance
in the proceedings.
The plan thus approved by the Court was consented to by the board of
directors of the National Surety Co. and was arranged after numerous
conferences with the Superintendent of Insurance. Its adoption was
recommended by the new Advisory Insurance Board, created under the
Dunnigan bill approved by Governor Lehman, April 28, as its first official
act.
Six of the seven members of the Board were in attendance at its initial
meeting April 28, when the matter was considered.The members present
who voted unanimously in favor of the plan were: William II. Hotchkiss,
Francis R. Stoddard, Jesse H. Phillips and James A. Beha, all former
Superintendents of Insurance, Aaron Rabinowitz and the Superintendent
of Insurance. Matthew Woll, the other member of the Board, was unavoidably absent.
The rehabilitation program Is considered to be the fairest and most
equitable plan for fully protecting the interests of policyholders, claimants
and creditors and to be in the best public interest under existing business
and economic conditions. Its expeditious consummation is made possible
by the exercise of the emergency powers granted to the Superintendent of
Insurance under Chapter 40 of the Laws of 1933.
The National Surety Corp. was licensed in New York by the Superintendent of Insurance under the authority vested in him by that emergency
law and it will apply immediately for licenses in other States. It commences
business with a paid-in capital of $1,000.000, a surplus of $3,000,000 over
and above all liabilities assumed and no indebtedness for borrowed money.
The capital and surplus were provided out of the assets of the old company,
Volume 136
Financial Chronicle
In approving the rehabilitation plan the Superintendent of Insurance has
directed that management and operating expenses of the new company be
commensurate with the volume of business it will transact and the necessity
of conserving profits. The new business of the National Surety Corp. will
be limited to those classes and territories which have proved profitable to the
old company in the past and its affairs will be handled by the experienced
executives of the old company who retain similar posts in the new corporation. There is every reason to believe that the new corporation,
operating on this basis, with an expert staff of executives and employees and
a nation-wide agency force built up over many years by the National Surety
Co., will be successful.
The liability assumed by the new company on all outstanding policies
and bonds of the old company covering risks in the Continental United
States is limited to the payment of all losses occurring or reported on and
after May 1 with the following exceptions and exclusions: mortgage guarantees and other liabilities in connection with mortgages and deeds of trust
on real estate: bonds or policies on which notice of cancellation has been
given by either party; bank depository bonds covering deposits in closed
banks and in banks open on a restricted or a limited withdrawal basis.
bonds and policies on which notice has been received to the effect that a
loss has occurred or may occur, and fiduciary bonds covering risks involving
estates held or administered in a fiduciary or trust capacity subject to the
assumption of liability by the new company for payment of losses on such
fiduciary bonds which may occur after an accounting has been approved
by the Court showing the condition of the estates on May 1 or thereafter.
Liability for payment of losses is to be assumed on policies and bonds on
which the old company had accepted or ceded reinsurance only when an
agreement adequately protecting the new company is executed by the
reinsured and reinsuring company.
An amount sufficient for payment of losses assumed by the new corporation has been transferred by the old company to the new company,
which entire amount will be set up as a loss reserve. Outstanding premiums
of the old company will be collected by the new company, which in turn
will set aside reserves for past due premiums and commissions due.
In explanation of the transfer of liability for future claims it should be
made clear that the new surety corporation is not taking over the unearned
premium reserve of the old company and therefore is not assuming liability
for payment of return premiums on cancelled bonds and policies. Policyholders should bear in mind that cancellation will give them only a claim
against the assets of the old company remaining in the hands of the Rehabilitator. Since the new company will pay future and unreported losses on
certain business of the old company, holders of such bonds and Policies
are fully protected against future loss, with no additional premium required
except, of course in those cases where premiums are owing to the old company for policies and bonds heretofore issued.
Although certain assets of the old company have been turned over to the
new corporation to provide it with necessary capital, surplus, and reserves,
it must be remembered that the stock of the new company representing
these assets is held by the Superintendent for them. Instead of sacrificing
these assets in forced liquidation at this time to the detriment of all concerned, the reorganization plan utilizes them in a manner which should
enhance their value coincident with the successful operation of the new
National Surety Corp.
Halsey, Stuart 8c Co. Loses Wisconsin License Suit—
State Public Service Commission Wins Right to
Cancel Permit Summarily.
The right of the Wisconsin Public Service Commission to
suspend the license of any security dealer without a hearing
was affirmed by the Wisconsin Supreme Court, May 9, in
appeal of the Commission from two injunctional orders of
the Dane County Circuit Court in the case of Halsey, Stuart
& Co. Advices from Madison, Wis., on the date named, to
the New York "Journal of Commerce," in noting this, also
said:
In a far-reaching decision, from which the company's counsel indicated
an appeal would be taken to the United States Supreme Court, Justice
John D. Wickham held the Commission's suspension of a broker's license of
Chicago investment house was justified.
The Commission suspended the license on its own motion last October,
basing the suspension order on information in the press that "some of the
principal officers of said company have been indicted by the United States
Gocvernment and arrested under warrants charging the use of mails
to
defraud."
Committee Named by Van Schaick to Handle Frozen
Securities of National Surety Co.—Further Details
of Plan Made Public.
A committee of six State Insurance Commissioners to protect the interests of the many holders of mortgage and
participation certificates guaranteed by the National
Surety
Co. has been appointed by Garfield W. Brown, President
National
the
of
Convention of Insurance Commissioners and
Insurance Commissioner of Minnesota, at the suggestion
of State Superintendent of Insurance George S. Van Schaick,
Rehabilitator of the National Surety Co. A statement issued
by the New York Insurance Department, May 4, states:
The members of the committee are Commissioners of States representing
a large proportion of investors in real estate obligations guaranteed
by the
National Surety Co. Insurance Commissioner Merton L. Brown of Massachusetts has been named Chairman of the committee. Other members are:
Charles C. Greer, Superintendent of Insurance of Alabama: Ernest Palmer,
Superintendent of Insurance of Illinois: Wilbur D.Spencer, Insurance
Commissioner of Maine;Charles E. Gauss, Insurance Commissioner of Michigan,
and William A Sullivan, Insurance Commissioner of Washington.
superintendent Van Schaick has communicated with the Insurance Commissioners of all other States urging their co-operation with this committee.
He also is informing all holders of mortgage guaranties issued by the National
Surety Co. of the appointment of the special committee of Commissioners to
act in their behalf. They are being advised that the committee will consider and pass upon the details of proposed reorganization plans with
authority to declare such a plan operative if it be deemed by the committee
to be the best available means of safeguarding all interests involved and if
a sufficient number of holders of guaranteed mortgages are willing to abide
by the judgment of the committee. The holders of such securities are
urged by Superintendent Van Schaick promptly to accept the services of
3453
the committee of Insurance Commissioners and to designate this committee
as their agent and attorney-in-fact to act for them. Members of the
committee will make no charge for their services.
Further Details of Plan of Rehabilitation.
Further details of the plan for rehabilitating the National Surety Co.
through the reorganization of the National Surety Corporation were made
available by Mr. Van Schaick May 4. It was announced that an order has
oeen entered by Justice Edward J. Gavegan,sitting in Special Term,Part It
of the Supreme Court of New York, New York County, approving and ratifying the entire plan, Including a contract made between Mr. Van Schaick
as Rehabilitator and the new National Surety Corporation following
the
order of rehabilitation on April 29. The complete plan and the contract
have been filed with the court.
Emergency Leading to Rehabilitation Described.
The emergency which led to the rehabilitation order is described in detail
In the plan. It was stated therein that the cash resources of the National
Surety Co. had become inadequate to meet the present and early future
demands upon It. Among the contributing factors were heavy losses sustained under many classes of bonds and policies due to the banking situation.
the widespread and appalling amount of insolvency and dishonesty of principals, and particularly the inability of borrowers on mortgages to pay
interest, amortizations and maturities.
The mortgage situation became so severe that it was necessary for the
old company to undertake the financing of more than 20 mortgage companies in the past four years and to organize the Grayling Realty Corp., a
subsidiary wholly owned by the old company to handle the mortgage
problem.
In order to finance its mortgage and general business, the old company
found it necessary to borrow large sums and to sell large amounts of investment securities at sacrifice prices. It advanced more than $14.000.000
In the aggregate to the Grayling Realty Corp. of which more than $4,000,000
had been charged off prior to the rehabilitation order.
The old company had borrowed from the Reconstruction Finance Corporation $11,000,000 secured by collateral, consisting principally of New
York Stock Exchange securities, having a book value of over $50.000,000
and a present market value of approximately $14.000,000. In addition,
real estate mortgages valued at approximately $2,000,000 were pled.,
-ed to
the Reconstruction Finance Corporation.
The recent bank holiday contributed materially to the difficulties
of the
old company. It resulted in a large decrease in cash premium receipts
and
payments by mortgagors, and the company was affected seriously by
rumors
which resulted in widespread cancellation of bonds and policies
and a
correspondingly heavy demand upon it for payment of return premiums,
further depleting its cash on hand. Thus the company found itself with
its
liquid assets almost entirely pledged with the Reconstruction
Finance
Corporation and its other assets insufficiently liquid to meet present
and
imminent demands upon it. As a result, the company was brought
to the
verge of collapse.
Two Alternatives—Liquidation or Rehabilitation.
There were two alternatives. One would have been the cessation of
business and liquidation by the Superintendent of Insurance, causing
large
losses to policyholders, claimants and other creditors through forced
sale
of assets at present sacrificial prices.
It is pointed out in the plan that liquidation would have made probable
the acceleration of the payment of mortgage guaranties estimated
to be
$46,000.000. It would have effected the immediate termination of existing
bonds and policies estimated to aggregate in liability between
$2,500,000.000
and $3,000,000,000, of which $500,000,000 Is estimated to run
in favor of
the United States Government. Thousands of administrators,
executors,
guardians and other fiduciaries would have been compelled, if
possible, to
obtain new bonds, and likewise, thousands of appeal,attachment
and other
judicial court bonds would have become valueless to their
beneficiaries.
Banking institutions throughout the nation would have been required
to
repay approximately $40,000,000 of public deposits secured
by bonds of
the old company, of which about $15,000,000 are in New York or,
in the
alternative, they would have been compelled to deposit securities in lieu
of the bonds or furnish new surety bonds.
A further effect of the collapse of the company would have been the
termination of its payroll of approximately $2,300,000 per annum, affecting
more than 1,300 families. In addition, more than 7,000 commission agents
under contract with the old company would have suffered loss.
The other alternative was the adoption of a rehabilitation plan providing
for the organization of a new company to assume payment of future and
unreported losses on the principal business of the old company, thus avoiding the difficult situation which would have arisen if all such liability had
been ended precipitately. In addition, it was explained, a plan of rehabilitation would provide for the orderly liquidation of the assets of the
old company by the Superintendent of Insurance as Rehabilitator In the
interest of its policyholders, claimants and other creditors.
Reorganization Approved by Reconstruction Finance Corporation.
Such a plan was consented to by the board of directors of the NationLI
Surety Co. and its adoption was recommended to the Superintendent of
Insurance by the newly created Advisory Insurance Board. It also met
with the approval of the Reconstruction Finance Corporation which released $5,000,000 of collateral pledged with it by the old company upon
receiving as a substitute a deposit of the stock of the new corporation
and
upon the further condition that it be entitled to select one third of
the
directors of the new corporation.
Terms of Reorganization Plan Outlined.
An order of rehabilitation entered by Justice Gavegan on April
29 approved the plan and directed the Superintendent to consummate it,
'Phis
was done immediately.
In order to expedite the organization of the new National
Surety Corp.,
the Superintendent of Insurance, acting in his discretion under
the authority
vested in him by Chapter 40 of the Laws of 1933. waived
certain
required by the Insurance law, such as publication of notice of formalities
form a new corporation. The new corporation was organized intention to
with a paid in
capital of $1.000,000 and a surplus of $3,000,000 provided out
of the assets
of the old company in exchange for the entire capital
stock of the new
corporation with due allowance for directors' qualifying shares.
This stock
is part of the estate of the old company, subject to the
prior lien of the
Reconstruction Finance Corporation. Any profits resulting
from the
business of the new company accordingly inure to the benefit
of the creditors
of the old company. The stock of the new company is
to be voted by the
Superintendent of Insurance as Rehabilitator.
Under the provisions of a contract entered into between the
Rehabilitator
and the National Surety Corp., the old company,in
addition to the $4.000.000 transferred to the new company for its capital and surplus,
assigned to
its successor assets having a market value of
approximately $7,800.000.
The new company in turn agreed to assume
liability for payment of all
future and unreported losses on unexpired business
of the old company
In the Continental United States on and after May
1, 1933, with certain
3454
Financial Chronicle
classes of business, however, specifically excluded. The exceptions were:
liability on mortgage guaranty business; depository bonds covering deposits
in banks closed or operating on a limited withdrawal basis on May 1;
,udicial bonds covering risks involving estates held or administered in a
Jiduclary or trust capacity, subject however to the assumption of liability by
he new corporation for losses under such bonds after the court has approved
tan accounting showing the condition of the estates on May 1 or thereafter;
bonds or policies where notice of cancellation, whether valid or not, has been
given by either party prior to May 1, and risks on which reinsurance had
been assumed or ceded by the old company, pending agreements with the
reinsured or reinsuring company protecting the new corporation. In
addition, the new corporation agreed to assume all unpaid losses as well as
future losses on Canadian risks and on bonds and policies issued to residents
of Cuba, Germany, France, Canal Zone and Porto Rico.
Under the terms of the contract, the new corporation was authorized
at its own expense to investigate, adjust and settle losses, liability for
which was assumed by the new corporation, and to defend suits and to
recover salvage on such losses. The new company was empowered to serve
notices of cancellation at its option on any bond or policy upon which
liability for loss was assumed. In the event a such cancellation by the new
corporation, ic, will pay the return premium and will have a claim against
the assets of the old company in rehabilitation.
The new corporation also agreed to take over the investigation and
adjustment, but not the payment, of losses under contracts of the old
company upon which it did not assume liability. The new company has
likewise agreed to conduct all suits and actions against the old company
arising out of liabilities not assumed by the new corporation. All of these
activities will be undertaken at the expense of the old company.
The new corporation is to undertake the collection of all salvages and
recoveries on losses of the old company not assumed by the new corporation.
Such sums as may be collected will be for the joint account of both companies, each sharing equally in the recoveries and the expenses. Out of the
old company's share, the new company will retain as much as may be
necessary to meet the expense incurred by it in connection with other services it is to render under the contract, for which it is to be reimbursed by
the old company or the Rehabilitator. The Superintendent of Insurance
retained the right to dispense with these services upon 30 days notice.
Collateral securing liability on bonds and policies in force on April 30
has been assigned to the new corporation but it is to be applied to meet
losses under such contracts in the order of their payment.
Under another provision of the contract, agency contracts, books and
records, agency plants, furniture, equipment and supplies, and designs,
emblems and trademarks of the old company were assigned to the new
corporation. The new company, however, expressly reserved the right to
revise agency contracts and did not assume liabilities of the old company
under such contracts.
Upon the completion of the organization of the National Surety Corp.
and the transfer of assets as provided in the contract, the new company
began business with assets in excess of $11.800,000, of which more than
34.000,000 represented outstanding unpaid premiums on business written
originally by the old company. Liabilities of the new corporation, exclusive
of combined capital and surplus of $4,000,000, aggregate more than $7,800,000. These liabilities include reserve for future claims amounting to approximately $6,300,000 and reserves for past due premiums and commissions
on unpaid premiums.
Old Company Left With Assets of $32,000,000.
The old company is left with assets valued at more than $32,000,000,
Including the capital stock of the new corporation which is valued at
34.000,000. Its liabilities, exclusive of capital, surplus and contingency
reserve, total more than $22,000,000. While the old company thus appears
to be solvent, it is pointed out that a large portion of its assets is frozen and
practically all of its liquid assets are pledged as collateral for loans.
In liquidating the assets of the old company it is proposed to handle the
mortgage guaranty business separately because the holders of these obligations are secured primarily by the underlying mortgages and real estate.
It is in connection with this end of the National Surety Co.'s business that
the special committee of Insurance Commissioners has been named to
represent and protect the interests of guaranty holders.
The other assets of the old company will be administered either by the
Superintendent of Insurance or by a separate organization to be created
for that purpose.
National Surety Co. Bondholders Advisory Committee
Organized—To Co-Operate With Insurance Department.
Announcement was made, May 11, that an advisory committee has been formed to act in the interests of holders of
bonds carrying the guaranty of the National Surety Co.
After careful consideration, it is announced, the committee
has decided to support, assist and co-operate with the
Superintendent of Insurance of the State of New York and
the superintendents of the various States in obtaining
authorization and working out plans of reorganization for
the benefit of the bondholders of the first mortgage real
estate bonds bearing the guaranty of the National Surety
Co. This advisory committee, it is stated, is not a committee formed for the purpose of soliciting deposit of bonds,
but is only urging in the interest of bondholders and dealers
that they deposit their bonds with the insurance Commission, when requested. An announcement issued May 11,
further states:
The committee is headed by Carl IT. Berets of C. H. Berets & Co., Inc.,
and the Eastern Investors Co., Inc. of 120 Wall St., New York City;
W. G. Riley of W. G. Riley & Co., 1 Wall Street, New York City; and
Lawrence K. Harper of the Colonial Bond & Share Co. of Baltimore. Md.,
and will be represented by Senator John L. Buckley of New York and
Messrs. Parker & Carey of Baltimore, Md., as Counsel.
Mr. Berets, chairman, states that prominent investment bankers, banks
and dealers throughout the country will augment the committee and assist
in its formation and operation. The members of this group will engage in
an active and aggressive campaign to enlist the co-operation of all dealers,
distributors and holders of these bonds, for the purpose of assisting the
insurance departments in working out plans for the benefit of bondholders.
The committee has offered the departments its wholehearted co-operation
to this end. The committee not only holds, owns and represents a good
percentage of the National Surety Mortgage guaranteed bonds outstanding, but it has during the past few years distributed a good many million
dollars worth of these securities.
May 20 1933
In view of this fact, it has for its primary purpose the intention of proteeting the bondholders to the fullest extent by the most expedient method
and with a minimum of time, effort and expense.
The Insurance Department has stated that when deposit of bonds Is
requested, no deposit or committee charges of any kind will be asked of
the depositing bondholders. The committee has carefully surveyed the
situation and has come to the definite conclusion that the only logical course
to pursue is one of co-operation with the Insurance Commissioners,in whose
hands the task of rehabilitation should be placed.
At a hearing before Judge Valente of the New York Supreme Court, the
Insurance Department contended that the step taken with respect to
the formation of the new National Surety Corp. was not only one which
by its swiftness prevented the National Surety Co. from complete disintegration, but also one which will prove to be for the eventual benefit
of all creditors, including the guaranteed mortgage bondholders, making the
further statement that in its belief, by a proper management in the future,
100% should be paid out in full to all.
The committee promises to go into further details in this connection
as it announces its plan of operation and is keeping in active touch with the
Insurance Commission for the purpose of observing and reporting to all
dealers and bondholders on further developments and will also lend the
Insurance Commission its fullest support in the formulation of its plans
for the preservation of bondholders' rights.
Spokesman for the committee states that liquidation at this time would
have been of no help to any creditors, whatsoever, and would seriously
have'impaired the position of all.
The committee is receiving no compensation, whatsoever, and deposits
with commissioners' committee are subject to no deposit charge. This
committee, it is pointed out, is prompted solely by a sincere and altruistic
motive in defending and protecting the rights of the many small holders of
these bonds who nation-wide have purchased them with the thought that
they were investing in the highest grade type of security.
It is further stated that in the opinion of this committee the tremendous
task of rehabilitation is not one to be attempted by or through any independent groups whether or not they originally distributed these bonds,
but should be left to the care of the public officials with whose asistant the
Insurance Commission will unquestionably work out its plans.
The co-operation was pledged in a letter addressed to
Milton B. Ignatius, of the law firm of Cabell, Ignatius &
Lown, representing the Insurance Department of New
York State. The letter follow3, in part:
Referring to the conversations held with you in the last few days, in the
course of which Mr. Berets indicated to you the probability of the organization of a committee for the protection of the holders of notes and
securities guaranteed by the National Surety Co., we now take pleasure:in
confirming to you that the undersigned have associated themselves into a
group to assist holders of such securities. After careful consideration of the
entire situation this group has decided that the interest of such security
holders can be best served by supporting the Committee of Insurance
Commissioners and by co-operating with and upholding the hands of the
Rehabilitator, George S. Van Schaick.
Acting upon and to give effective expression to this decision, the undersigned have agreed to transmit agreement of authorization to the Committee
of Insurance Commissioners in respect of the notes and securities directly
owned or controlled by them.
In addition to placing with the Committee of Insurance Commissioners
representation of our own bonds and securities we offer our active and
aggressive assistance to secure the co-operation of other bondholders,
believing that the more effort is put forth now to get bondholders to supPort the Commissioners Committee, the more rapidly progress can be made
towards the adoption of a plan of reorganization. In making this offer we
have in mind not only the protection of our ownership involved in the
situation, but also the public interest involved in reestablishing confidence
in securities based on real estate mortgages, &c.
The co-operation which we thus offer you is free of any expense, obligation or commitment to the Commissioners Committee or to the Rehabilitator of the National Surety Co. If the committee and the Rehah111tater will accept our offer of co-operation we will be ready at once to enter
upon an aggressive campaign to enlist the support of bondholders by
selecting key dealers throughout the country, and through such dealers
contacting the larger group of general distributors.
Court Upholds National Surety Co. Plan—Objection
to Transfer of Assets Held Groundless.
Supreme Court Justice Louis A. Valente of Now York, on
May 11, denied the application of the John T. Konlon Coal
Co., a creditor of the National Surety Co., to have the
court set aside the rehabilitation plan under which the
National Surety Corp. was organized as a successor to the
National Surety Co. Justice Valente declared that the
court would take under advisement suggestions as to whether
or not certain technical modifications should ho made in the
reorganization plan, such as the erection of safeguards to
protect creditors of the old company.
The rehabilitation plan, sponsored by the Insurance
Department and which has the backing of the Insurance
Advisory Board, created under the Dunnigan bill, was
attacked by the Kenlon Coal Co., the Manufacturers'
Trust Co., trustee for mortgage bonds guaranteed by the
National Surety Co., and the C. Prevost Boyce protective
committee representing holders of mortgage bonds and
certificates guaranteed by the old company. Justice Valente
in his decision stated in part:
The frozen assets of the National Surety Co., according to the plan,
are held for the benefit of all creditors without discrimination, who besides
are protected by the assets represented by the stock of the National Surety
Corp. and the potentiality of profits that stock will realize.
The plan briefly summarized involves the following features: A new
corporation was organized with $1,000,000 capital and $3,000,000 surplus.
To that company nearly $12,000,000 worth of assets was turned over by the
National Surety Co. These assets consisted of about 35,000,000 of collateral held by the Reconstruction Finance Corporation; $4,000,000 of unpaid premiums and premiums collectible, and about $2,000,000 to $3,000,000 of other assets of the National Surety Co. more or less liquid.
"No possible objection could be made to the turning over of the $5,000,000 of collateral by the Reconstruction Finance Corporation. That was
Volume 136
voluntarily turned over by that Corporation and there was no one to
question the propriety of this. In return for these assets, the National
Surety Corp. turned over to the old company through its rehabilitator, the
Superintendent of Insurance, the entire issued stock of the new company
which the Superintendent on his part turned over to the Reconstruction
Finance Corporation to replace the other collateral.
"Some questions arise as to the unconditional and unrestricted assignment of the stock to the Reconstruction Finance Corporation, whether any
safeguards or restrictions should be placed so as to Protect the creditors
against the foreclosure of that security upon a default in the loan due to the
Reconstruction Finance Corporation is a matter which will be considered
separately.
"The fact is that primarily the stock of the National Surety Corp., which
means the assets which it represents and the expectancy of its earnings,
while pledged, nevertheless Is ultimately for the benefit of all of the creditors
of the old company without discrimination.
"As to the premiums receivable turned over, it appears without question
that upon the liquidation, the premiums would be virtually uncollectible
because the bonds for which the premiums are due would be canceled in the
event of liquidation of the entire business and on the unexpired portion
there would be a very small chance of realizing anything but a fraction.
"The new company, in virtually reinsuring the old risks, excepts from
such assumption funds covering guaranties on mortgages and on bank deposits, and this is one of the grievances expressed by some of the objectors.
Prima fade it would seem that the new company received a consideration
equal to the expense involved in the assumption of certain outstanding
policies together with the risk of loss involved. The assumption of risk on
the two discontinued types of business of the old company, guaranteed
mortgages and guaranteed bank deposits, would not presumably protect the
new company by the measure of assets transferred.
"The second objection—that the whole reorganization is a scheme of
which the sole beneficiaries are the present officers and directors—is not
only unjustified but ungenerous. The officers and directors have no interest
in any of the stock of the National Surety Corp., the entire stock being
virtually trusteed for the benefit of all the creditors. Their salaries, too,
by the plan, are limited to a maximum in any case to $17,500. The Chairman
of the Board, who was the Chairman of the old company, has devoted nearly
a lifetime, or 30 years, to the building up of a great business which even
to-day is probably the greatest of its kind and which has become frozen by
circumstances beyond control."
C. Prevost Boyce, chairman of the committee for the
protection of holders of real estate securities guaranteed by
the National Surety Co., stated that he was pleased to learn
that Judge Valente in his decision had taken under advisement the changes requested by the committee, for the protection of security holders, as to the plan of reorganization
of the National Surety Co. adopted by the Superintendent
of Insurance. Mr. Boyce pointed out that the committee
has-at all times insisted that the plan be altered and modified
so as to provide that the stock of the new company, which
will be one of the principal assets of the National Surety Co.
to which the holders of guaranteed real estate securities
will look for the recovery of any deficit, should not be disposed of for a price less than $10,000,000 except upon proper
notice to creditors. Inasmuch as approximately $11,000,000
of liquid assets, as well as the good-will and agencies of the
old company, were turned over by the old company to the
new company which did not assume the liabilities on the
guaranteed real estate securities, it is believed that the stock
of the new company should be extremely valuable and the
committee desires an opportunity to produce another purchaser in the event it is proposed to sell the stock for a
price which seems inadequate to the guaranteed real estate
security holders. Mr. Boyce further stated:
In order that the new company may not be burdened with excessive
salaries which would make it impossible to dispose of its stock at the highest
possible price, the committee has requested a change in the reorganization
plan, restricting salaries of officers and executives of the new company who
are substantially the same as those of the old company until the stock is sold.
The committee further believes that the guaranteed real estate security
holders and general creditors of the old company should be represented
on the board of directors of the new company, and have accordingly requested that each group have a minimum of at least three members on the
board of directors.
It was also urged upon the Court that up to date neither the committee,
nor the Court, have had before them anything but the most general statements and the most vague array of figures. I am informed by counsel that
the Court records do not disclose how the reserves set up to the extent of
millions of dollars were computed,or what the liabilities of the old company
approximate and how they are figured, or what the remaining assets of
the old company are worth in liquidation or otherwise, or the history of the
operations of the old company, and the expectations and estimates of
operation for the new. The bondholders and creditors are entitled to
know all details as to how the old company was brought to such desperate
straits that every liquid asset was heavily pledged for loans. They are
entitled to know what has become of the $47,000,000 of assets which were
shown on the balance sheet of the National Surety Co. issued to the public
as late as Dec. 31 1932. All of these matters and endless more can only be
understood and intelligently passed upon if the full facts and figures are
freely laid before those who are most interested in the matter, to wit, the
real estatelbondholders and the general creditors, and it was urged upon the
Court that a referee should be appointed as part of the rehabilitation proceedings before whom ,:from time to time, hearings could be had, witnesses
summoned, books and records be called for, and examinations pursued, so
that at all times the general creditors and the real estate bondholders could
reassure themselves that everything that is to be known,can be, and will be
known, and everything that is to be done, will be, and is being done.
Commenting upon the decision of Judge Valente, William
B. Joyce, Chairman of the National Surety Corp., stated:
Of course, the decision is pleasing to me, particularly the reference made
of the old company. In
to me and my many years of work in the interest
turn I wish to express my appreciation to the Court and to the public for
the almost unanimous approval of the plan. Hundreds of thousands of
patrons of the old company have approved, and more than 7,000 agents.
3455
Financial Chronicle
It is not expected the case will be appealed because, for the protection
of the stockholders of the new corporation, a very large bond indemnifying
the new corporation against any damages no doubt would be required
before such an appeal would be permitted.
The Kenton case did considerable damage and it must not be repeated.
Warning Issued by Van Schaick Against Raiding
Business of Old National Surety Co.
George S. Van Schaick, State Superintendent of Insurance, on May 1 notified casualty and surety companies doing
business in New York that the New York Insurance Department will view "as an unfriendly and irresponsible set" any
attempt by the companies or producers to raid business of
the old National Surety Co. on which the new National
Surety Corporation has assumed liability for payment of
future and unreported losses. A statement issued to the
press states:
The Insurance Department stated that other companies should not
assume liability for the unexpired term of such bonds and policies issued
by the National Surety Co. and in force as of May 1. The companies were
requested to scrutinize new business and to reject former lines of the National Surety Co. unless written for a full new term, accompanied by a
written request of the assured in which it is made clear that the assured has
full knowledge of the disadvantage to him of paying a full new premium
with only a claim for return premium on the former coverage against the
old company in rehabilitation.
Brokers and agents are advised not to pay new premiums on rewritten
risks of the old National Surety Co. This is unnecessary, in view of the
assumption of liability for future losses by the new National Surety Corp.
This restriction, of course, does not apply to classes of business on which the
new company does not assume such liability.
It is the belief of the Insurance Department that conservation of the
outstanding business of the National Surety Co. is important to the welfare
of the surety business. For that reason the Department has taken this
action.
National Surety Corp. Board of Directors Chosen—
Financial Statement.
Eighteen former directors of the old National Surety Co.
are among the group of 21 approved by the Superintendent
of Insurance to serve on the board of directors of the reorganized National Surety Corporation. The members of the
board are:
E. M. Allen, Wendell P. Barker. S. Reading Bertron. Edgar S. Bloom,
Franklin Q. Brown, Hartwell Cabell, Edward H. Clark, Vincent Cullen.
P. A. S. Franklin, M. 0. Garner, Charles Hayden, Charles G. Hollinger,
Morton D. Joyce, Wm. B. Joyce, Alanson P. Lathrop, H. J. Lefgren.
John C. McCall, James 8, McCulloh, Samuel McRoberts. Alfred E. Smith,
E. A. St. John.
Wm. B. Joyce and E. M. Allen continue to fill the positions of Chairman and President, respectively.
ASSETS AND LIABILITIES OF NATIONAL SURETY CORP.
Assets—
$5.935,971.78
Stocks and bonds
654.004.14
Cash
4,035,059.20
Unpaid premiums due and receivable
379,579.88
Accounts receivable
831,323.28
First mortgages and real estate
$11.835,938.28
Liabilities—
$71,797.00
Reserve for losses reported
727.633.62
Reserve for premiums(over 90 days old)
730,813.00
Reserve for C01111IIIISMODS on unpaid premiums
yet
not
and
claims
future
Paid in reserve to cover possible
6,305.694.66
known,but which may occur on unexpired risks'
1,000.000.00
Capital
3,000,000.00
Surplus
$11,835,938.28
Business in 28
States.
The National Surety Corp. which began business on May 1
announced May 5, that to date it had been licensed to do
business in 28 States. The new corporation may decide not
to enter nine States and in the balance the delay in obtaining
licenses is due to the time required in complying with legal
requirements. The announcement further says:
"The business of the National Surety Corp. has developed
splendidly. New business is being carefully underwritten
and limited. Agents all over the country are giving full
support and co-operation. No old agent has declined to go
along with the new corporation."
National Surety
Corp. Licensed to Do
Nation-Wide Committee Formed for Holders of More
than $40,000,000 of Mortgage Bonds Guaranteed
by National Surety Co.
C. Prevost Boyce of Stein Bros. & Boyce, New York and
Baltimore, is Chairman of a nation-wide committee which
has been formed for the protection of holders of mortgage
bonds guaranteed by the National Surety Co. It is stated
that there are more than 840,000,000 par value of real estate
mortgage bonds outstanding bearing the guarantee of National Surety Co. or with collateral so guaranteed. Defaults
with respect to some of these bonds are understood to have
occurred and recent developments, in the opinion of the
Committee, point to other imminent defaults in both interest
and principal. In this connection, it is pointed out that a
large proportion of the mortgage companies which issued the
bonds are now controlled by National Surety Co. and the
3456
Financial Chronicle
obligations assumed by the newly formed National Surety
Corporation do not include the guarantee of these bonds.
The bonds and other real estate securities guaranteed by
the National Surety Co. include or secure obligations issued
by the following companies:
American Home Mortgage Co. (formerly Instalment Mortgage Co. and
Lumberman's Finance Corp.); Amortization Mortgage Co.; Bankers
Mortgage Co., Louisville; Central Funding Corp.; Dovenmuhl, Inc.;
Empire Bond & Mortgage Co.; Federal Home Investing Co. (formerly
Federal Home Mortgage Co.); First Bond & Mortgage Co., Hartford;
First Mortgage & Bond Co., Miami; Franklin Mortgage Co.; Guaranty
Title & Trust Corp.; Home Bond & Mortgage Co.; Investment
Securities
Co. of Texas; Investors Mortgage Co.; Melina Bond & Mortgage
Co.;
Mortgage Bond & Trust Co.; Mortgage Co.of Alabama;Mortgage Guaranty
Co. of America: Mortgage Security Corp. of America; National
Reserve
Corp.; National Title & Trust Co.; Real Estate Mortgage & Guaranty
Corp.; Southern Securities Corp.; Title & Investment Co.; Union Mortgage
Investment Co.(formerly Union Mortgage Co.)
Holders of such bonds and securities are urged to deposit them without
delay with one of the depositaries or sub-depositaries named below,
which
have agreed to act under a deposit agreement now in the course of preparation. Bonds and securities should be deposited in negotiable form
accompanied by all unpaid interest coupons. Transferable certificates of
deposit will be Issued. All communications should be sent to the Secretary
of the committee.
The members of the committee in addition to Mr. Boyce
are:
Counsel are Emory, Beeukes, Skeen & Oppenheimer, 1706 First National
Bank Building, Baltimore,and Hays,Hershfield, Kaufman & Schwabacher,
115 Broadway, New York. N. Y. Henry C. Evans is Secretary with offices
at 6 South Calvert Street, Baltimore, Md.
Joseph A. Markel (Bartley & Co., Inc., New York); James J. Minot Jr..
(Jackson & Curtis, Boston, Mass.); Virgil C. McGorrill, (Fidelity-Ireland
Corp.. Portland, Me.); Mervyn H. Sterne,(Word. Sterne & Co.. Birmingham, Ala.): Eugene B. Fevre,(Murphey, Fevre & Co., Spokane, Wash.);
Phil S. Dickinson, (Nichols, Terry & Dickinson, Inc., Chicago, Ill.);
Milton S. Trost, (Stein Bros. & Boyce, Louisville, Ky.); Herbert K. Moss,
(Kalman & Co., Inc., St. Paul, Minn.); F. L. Morrison,(George H. Burr,
Conrad & Broom, San Francisco and Los Angeles, Calif.
The depositaries are Manufacturers Trust Co., 55 Broad Street, New
York, N. Y., and Maryland Trust Co., Calvert & Redwood Streets Baltimore, Md. Sub-depositaries are Continental Illinois National Bank & Trust
Co., South La Salle and Jackson Streets, Chicago, Ill., and Spokane &
Eastern Trust Co., Spokane, Wash.
C. Prevost Boyce, chairman of the nation-wide protective
committee on May 5 issued a statement which said, in part:
The committee of which I am chairman is an independent committee,
organized and designed solely to protect the thousands of investors in real
estate obligations guaranteed by the National Surety Co. While I will be
glad to co-operate in so far as is consistent with the interests of the bondholders with any State or governmental or other agencies, I have never,
In the many years that I have been in the investment banking business,
seen a situation in which it was more vital for the security holders to unite
for their joint protection and to have an absolutely independent representation.
One of the chief needs for the formation of this committee is the urgent
necessity of investigating the fairness and legality of the reorganization plan
of the National Surety Co., which has been sponsored by the New York
State Superintendent of Insurance. Under this plan a new company has
been formed which I understand has taken over in excess of 311,000,000
In assets of the National Surety Co., without assuming any liability to
the
holders of the guaranteed real estate obligations.
The principal officers of the newly formed corporation are the same as
those who had charge of the old company.
The creditors and holders of the guaranties on real estate obligations were
not consulted about the reorganization, nor have they any representation or
voice in the management of the new corporation.
The guaranteed real estate bonds which constitute the underlying
securities are also in many cases guaranteed by the National Surety CO.,
and the assets securing them must be conserved. This collateral should not
be subjected in any way to the influence or control of the Surety Co.
For months with officials of varioussurety companies I have been Inconstant
touch with the Reconstruction Finance Corporation endeavoring to consummate negotiations making possible a cash payment to holders of real
estate securities guaranteed by the various surety companies. While the
action of the National Surety Co. and the State Superintendent of Insurance has necessarily delayed these negotiations, at least insofar as the
guaranty of the National Surety Co.. is concerned, our committee will make
every effort to continue these negotiations looking to the making of a
cash distribution to bondholders. While ready to co-operate in every
passible way with the State Superintendent of Insurance of New York, or
any other State, I wish to emphasize the fact that our committee is not
connected or affiliated with the National Surety management, but represents solely the interests of the bondholders."
Receivers Named in Several States for National
Surety Co.
William S. Walsh, State Insurance Commissioner of Maryland was named receiver May 1 for the assets in Maryland
of the National Surety Co. The action was taken on proceedings instituted in the name of the State of Maryland.
The company assented to the receivership. The receivership action was taken at the request of George S. Van
Schaick, New York State Superintendent of Insurance,
whom he quoted as saying:
At a conference with directors of the Reconstruction Finance Corporation,
the officers of the Maryland Casualty Co. and the United States Fidelity
ac Guaranty Co. were authorized to announce that the action of the New
York Insurance Department in appointing a conservator for the National
Surety Co.of New York, would in no way affect the Reconstruction Finance
Corporation's commitments previously announced, for refinancing mortgagee which have been guaranteed for the mortgage companies by the
United States Fidelity & Guaranty Co., and that these plans are well
under way and definite proposals by the mortgage companies will be ready
for submission to the bondholders at an early date.
The Maryland Insurance Department's investigation also shows that the
reinsurance existing between the National Surety Co. of New York and
May 20 1933
the two Maryland companies above mentioned is quite small, the amount
for each Maryland company being not more than 1% of the total reinsurance
of each of those companies.
The creation of an ancillary receivership in Maryland,
it was explained, was to protect the National Surety Co.'s
assets in that State against a rush of attachments and individual receivership applications by creditors.
The Dauphin County (Pa.) Court named C. F. Armstrong,State Insurance Commissioner of Pennsylvania,May 1
as ancillary receiver in Pennsylvania for the National Surety
Co.
William L. McCalley, on May 1, was appointed receiver
for the company in Georgia, in the Fulton (Ga.) Superior
Court.
C. B. Elliott and Heyward Brockinton were appointed
receivers in South Carolina on May 1 by Judge Townsend
at Columbia, S. C.
Judge Stanley E. Qua of the Massachusetts Superior
Court on May 2 appointed Richard A. Brennan Special
Deputy Superintendent of Insurance in New York, and
Thomas H. O'Connell Deputy Commissioner of Insurance
for Massachusetts, as temporary receivers of the property
of the company in Massachusetts.
Judge Leland W. Carr of Ingham County (Michigan)
Circuit Court on May 2 named Ralph M. Wade, Second
Deputy Insurance Commissioner, as ancillary receiver for
the Michigan assets of the company.
Federal Advisory Council in Conference with Federal
Reserve Board—Definite Signs of Improved Business Reported—Governor Black and Governor
Harrison in Attendance at Conference—Credit
Stimulation to be Further Reviewed.
The Federal Advisory Council, composed of bankers from
the Federal Reserve District, were in conference this week
with the Federal Reserve Board. Indications that business
in manyIparts of the country has been showing definite signs
of improvement the last few weeks, were reported to the
Board by the Advisory Council which, according to press
accounts from Washington May 16 made no formal statement
but it was evident that there was more optimism at the discussions than at any similar gathering for a long period.
These press advices, as given in a Washington dispatch
May 16th to the New York "Times," said:
*The Council and Board were in session from 10 o'clock this morning until
6 o'clock this evening, and discussions will be continued by a committee
to be named to represent the Council in consultations with Secretary Woodin
and Eugene R. Black, the new Governor of the Federal Reserve Board, as
to policies in giving further aid to a business upswing.
After the meeting Walter W. Smith, President of the First National
Dank in St. Louis, Mo., and President of the Council, said that no formal
announcement would be made at this time, but added that as he visualized
the situation, business has )been showing greater confidence since the administration began its bank reorganization program. .
Recovery Program Considered.
Governor Black of the Reserve Board and Governor Harrison of the
Moral Reserve Bank of New York as well as members of the Reserve
Board were present throughout the conference, at which it was stated that a
very wide range of subjects having to do with the administration's plans for
business recovery were discussed, among them the extent to which open
market operations by the Reserve Banks might be of aid; steps which would
contribute to the re-organization of closed banks and the release of tied-up
deposits and banking legislation now pending before Congress.
Neither Governor Black nor members of the Advisory Council would
discuss how far the Reserve Banks would go in conducting open market
operations, and it Is understood that the necessity for such a program to
stimulate credit in different parts of the country will be further reviewed
by the Council's committee and the government officials.
The Reserve System has recently adopted a policy of substituting Federal
Reserve Bank notes, provided for in the emergency banking act, for Federal
Reserve notes, which if carried out on a large scale, would mean the release
of a considerable amount of gold for purposes other than currency backing.
Reserve Notes Outstanding.
In the last six weeks all types of money excepting Federal Reserve Bank
notes have been returning to the Reserve Banks and Treasury from circulation. From March 31 to May 13 the amount of Reserve Bank notes
outstanding from the Treasury in circulation or in the hands of issuing banks
increased by $72,240,000 to a total of 395,813,714. In the same period
Federal Reserve notes decreased 3478,178.000.
Federal Reserve notes outstanding May 13 amounted to 33,568,894,240.
For years Federal Reserve notes, which are backed by 40% gold and 60%
eligible commercial or government paper, have made up the chief currency
medium. The backing of Federal Reserve Bank notes may be any sound
paper held by the issuing bank.
If the Federal Reserve System substituted large quantities of bank notes
for Reserve notes outstanding, a part of the 32,764,392m0 in gold held
exclusively against the Reserve notes would be released for such domestic
and international purposes as would appear in the public interest.
Council Members at Meeting.
The members of the council who attended to-day's conference, and the
districts they represent, follow:
1. Boston—Thomas M. Steele, President, First National Bank & Trust
Co., New Haven, Conn.
2. New York—Walter E. Frew, Chairman of Board Corn Exchange Bank
Trust Co.
3. Philadelphia—Howard A. Loeb, Chairman Tradeemens National Rank
& Trust Co., Philadelphia.
Volume 136
Financial Chronicle
Pitts4. Cleveland—II. C. McEldowney, President Union Trust Co.,
burgh.
5. Richmond—Howard Bruce, Chairman, Baltimore Trust CO.
Atlanta.
6. Atlanta—John K. Ottley, President First National Bank, Chicago.
Bank,
7. Chicago—Melvin A.Traylor, President First National
Bank in St.
8. St. Louis—Walter W. Smith. President First National
Louis, Mo.
National
rn
Northweste
9. Minneapolis—Theodore Wold, Chairman
Bank of Minneapolis.
Trust Co.,
10. Kansas City—W. T. Kemper, Chairman Commerce
Kansas City, Mo.
Bank, San
National
11. Dallas—Joseph H. Frost, President Frost
Antonio.
Security First Na12. San Francisco—Henry M. Robinson, Chairman
tional Bank, Los Angeles.
Steagall
Bank Deposit Insurance Plans in Glass and Bankers'
Banking Bills Opposed by American s, Says
Association—Not Different in Principle Plans
President Francis H. Sisson, from Guaranty
of Western States Which Proved Failures.
and
Bank deposit insurance plans, proposed in the Glass
not difSteagall bank reform bills now before Congress, are
of deferent in fundamental principles from the guaranty
States and
posits plans that have been tried by eight Western
H. Sisproved disastrous failures in every instance, Francis
and
York,
New
Co.,
son, Vice-President Guaranty Trust
rePresident American Bankers' Association, declared
and
aims
the
of
favor
in
is
cently. He said the Association
to the
most of the provisions of the Glass bill, but is opposed
Mr.
it.
in
ted
incorpora
been
has
that
new insurance feature
Sisson's statement follows:
endorsement of the
The American Bankers' Association has declared its
part of its
major aims of the Glass Banking Reform bill and of the greaterprogram of
specific provisions. It has itself put forward an affirmative
in some respects
legislation to bring about improved banking conditions that
is firmly on
goes even further than the Glass bill. But the association
guaranty of deposits
record as opposed in principle to any law carrying a
present session
such as is now incorporated in the new Glass bill before the
of Congress.
plan, but it is
This newly-added provision is called a "deposit insurance"
deposits" plans
not different in fundamental principle from the "guaranty of
and have proven
that have been given eight large-scale trials in this country
one of them
disastrous failures in every instance. The basic idea in every
loss of their
was to guaranty specified classes of bank depositors against
fund
insurance
an
deposits through the failure of their bank, by means of
proportionate to
created by premiums in the form of assessments on banks
present proposals
their volume of deposits. This is also the basic idea of the
House bill.
embodied respectively in the Glass Senate bill and the Steagall
with those
The differences between the Glass or Steagall plans as compared
organization and
eight previous experiments relate to important aspects of
principles
banking
operation, but do not materially affect the essential
be placed
Involved. One difference would be that closer limitations would
small accounts
on the insurance protection given to depositors, only relatively
auspices
being fully protected. Again the previous plans were under State
plans seek
and applied only to State banks within the State, while these new
to include banks generally in the country as a whole.
Another difference is that the present plans would create larger potential
s to
funds through the wider basis of assessment, through joint subscription
, the
stock in the administrating corporation by the Federal Government
Federal Reserve banks, and by the participating banks, and finally through
Fedaccess to the public credit by means of powers granted to the proposed
notes
eral Deposit Insurance Corporation to issue bonds, debentures or
the
of
exempt from Federal, State or other taxation, with the co-operation
Secretary of the Treasury in preparing and printing its obligations.
These differences are seriously important in that they would serve more
fully than did any of the State plans to socialize losses arising from bad or
unfortunate banking. They would open channels for passing these losses
along to banks in no way responsible for them, and in the final resort, if
need be, as a charge upon the general public. They are not, however, important differences in contributing in themselves to sound banking methods
and principles.
If experience means anything the history of the eight State guaranty
plans show that the idea is inherently fallacious. It is based on erroneous
premises and assumptions. It is peculiarly one of those plausible, but deceptive, human plans that, in actual application, only serve to render worse
the very evils they seek to cure.
It is fundamental that the only real guaranty for bank deposits is good
banking. Deposit guaranty is not good banking. It is an attempted substitute for good banking. The guaranty of deposits cannot be made to
take the place of sound public banking policies.
Good banking, like good health, cannot be created by post mortem measures to make good for the ravages of previous bad habits or conditions. The
time and way to guard against banking troubles is by applying sound habits,
principles, safeguards and forehanded methods as an inherent part of banking operations themselves.
It is a fundamentally wrong approach to the banking problem to set
banking apart as a financial activity that is normally liable to cause losses
and business confusion that must be indemnified against. This, in effect,
would be to recognize that there must be tolerated and carried in the
banking structure types of banking and classes of bankers whose methods
and shortcomings are bound to cause disasters and that the resulting damage
must be paid for by assessments on the legitimate earnings of good banking.
Insurance is justifiable against unpreventable natural risks. It Is essentially anti-social when used as a make-good for preventable wastes and
controllable losses. The causes of insecurity of bank deposits are found for
and banking practices that can be
the most part in economic conditions
Identified. The logical procedure is to aim at prevention of these causes
the banks by good banking and sound
so far as possible and at fortifying
public policies against adverse circumstances so as to avoid failures.
Foremost among the deleterious effects of the guaranty of deposits in
as a smoke-screen for bad
every case where it was tried was that it served
banking. It dimmed the perceptions of the public and its discrimination
between sound end unsound banks by creating the false impression that
deposits were safe in any kind of a bank. Also within the banks it tended
to dull the sense of responsibility resting upon the individual banker to
3457
his comdefend the sanctity of his depositors' money by every faculty at
taken
mand, since a large part of that responsibility had been supposedly
over by the State.
of
The obvious injustice of penalizing good banking for the protection
bad banking, of hazarding the funds of sound institutions to cover the losses
imof the unsound, must be clear to anyone who will give this matter
partial consideration. It is entirely possible that the unwarranted burden
which this would place on good banks might threaten the stability of the
entire banking structure. It is an impractical scheme to salvage incompetency and failure in others that might imperil the very existence of sound
and well-managed institutions.
Federal Home Loan Bank Bill Signed by Gov. Lehman
of New York—Permits Savings Banks to Become
Members of Home Loan Banks and Purchase Bonds
of Latter.
In its May 12 News Bulletin the Savings Banks Association
of the State of New York said:
Among the last of thirty day bills signed by Governor Lehman before he
left for the South, was the Crawford bill. Senate introductory 1569, which
Bank
permits savings banks to become members of the Federal Home Loan
and to purchase the bonds, debentures and other securities of such bank.
The new law is chapter 739 of the laws of 1933
,
Section 238 of the banking law is amended by adding a new subdivision
to be subdivision 13, to read as follows:
a
of
a
member
becoming
"13. To purchase and hold for the purpose of
as will
Federal Home Loan Bank, so much of the capital stock thereof
an
qualify it for membership in such federal home loan bank pursuant to
Loan
act of congress approved July 22 1932 entitled "The Federal Home
may
that
thereto
s
Bank Act," and any amendments thereof or supplement
Loan
hereafter be enacted; to become a member of such Federal Home
such amount
Bank; to purchase and hold stock of such bank in addition to
to purchase and hold the bonds,
as may be required to qualify as a member.
such Bank
debentures or other securities of such Dank; to borrow from
indebtedness
on the note of the savings bank or on such other evidence of
Loan Bank
of the savings bank as may be required by such Federal Home
may be
for such period of time and upon such terms and conditions as
of the
granted and prescribed by such bank and approved by resolution
the
affirmative
by
adopted
board of trustees of any such savings banks
and recorded in
vote of a majority of such board taken by ayes and nays
the minutes of such board; to pledge, assign or transfer bonds and mortwith
gages and other securities owned by such savings bank: to comply
any condition of such membership or such credit and to have and exercise
or
bormember
such
any
upon
conferred
all powers, rights and privileges
or as hereafter
rower by the Federal Home Loan Bank Act as now existent
amended or supplemented."
at the end
Section 239 of the Banking Law is also amended by adding
read as follows:
two new subdivisions, to be subdivisions 14 and 15. to
Home Loan
"14. In bonds, debentures, or other obligations of a Federal
Act approved
Bank created pursuant to the Federal Home Loan Bank
July 22 1932.
such amount
"15. In the capital stock of a Federal Home Loan Dank,
therein
as may be required to comply with any condition of membership
or credit therefrom."
Recently Enacted Law Prohibiting New York Banks
From Investing More Than 10% of Capital and
Surplus in Affiliates—Other New Banking Legislation.
A bill designed to strengthen banks in New York State by
preventing them from investing too heavily in securities of
affiliated institutions was recently signed (April 22) by Gov.
Lehman.
Under the bill, recommended by the Superintendent of
Banks, these institutions are prohibited from investing more
than 10% of their capital and surplus in their affiliates. It
10%
also prevents the affiliates from investing more than
ns.
institutio
parent
the
in
surplus
and
of their capital
The following is from the News Bulletin (April 28) of the
Savings Banks Association of the State of New York:
April 22 is one,
Among the banking bills signed by the Governor on
annual examinations
chapter 326, which provides that in lieu of the two
the report
accept
may
he is required to make, the Superintendent of Banks
a bank or trust company,
of a clearing house association on the condition of
staff of examiners for five
If the association has maintained an independent
urdened examining staff of
years. This will considerably relieve the over-b
the Department.
ent in the case
Under the terms of Chapter 330, the Banking Superintendof Its
financial
a report
of a foreign bank applying for a license may accept
condition made within 120 days of the date of application.
Increase of $25,695,866 in Outstanding Volume of
Bankers' Acceptances in Month—Total April 29
$696,813,357.
The report of the American Acceptance Council made
public on May 18 reveals an increase in the volume of bank66,
ers' acceptances outstanding amounting to $26,695,8
making a total of $696,813,357, which is only $13,000,000
below the total outstanding at the end of December. Robert
H. Bean, Executive Secretary of the Council, in making
available the figures for the month says:
Although the increase for the month of April was of moderate proportions,
there is significance in the fact that the total gain was made up of increases
In all types of acceptance financing.
Acceptances for the purpose of financing imports increased in volume
34,200,653, acceptances for the purpose of financing exports increased
$1,223,490, for the purpose of financing domestic shipment transactions
$360.364. and for the purpose of creating dollar exchange there was a gain
of $1,514,757.
The largest item of increased volume was in the volume of acceptances
created against warehouse receipts for staple commodities in storage. These
bills increased in volume $14.830.110. There was also again in the volume
of bills drawn to finance goods stored abroad or shipped between foreign
countries, this total going up $3,566,492 during the month.
3458
Financial Chronicle
The acceptance business will quickly reflect the increase in commodity
prices which is now being noted In practically all of the principal commoditie
s
and it is not unlikely that some of the current increase may be ascribed
to
this change in price levels. There is, furthermore, an indication
that acceptance credits are being considered for many of the important
crop and
commodity requirements where straight borrowing has been used heretofore. This is indicated by preliminary steps for cotton and wheat
credits
to be availed of as the season advances.
The volume of bills passing through the market has been somewhat
heavier during the past three weeks than during March. Acceptance banks
held of their own bills on April 29, $205,747,336, and of other
banks bills'
$198,504,994, which was a combined gain of $143,000,000 over the holdings
of the same banks at the end of March. Likewise the holdings of
the Federal Reserve System have steadily declined from 2356,000,00 at
the end
0
of March to $225,000,000 on the last reporting day in April.
Of these
totals the Federal Reserve System held for their own account
$310,000,000
at the end of March and $177,000,000 at the end of April.
The statistics supplied by Mr. Bean follow:
TOTAL OF BANKERS' DOLLAR ACCEPTANCES OUTSTANDING FOR
ENTIRE COUNTRY, BY FEDER4L RESERVE DISTRICTS.
Federal Reserve District
No. 1
No. 2
No. 3
No. 4
No. 5
No. 6
No. 7
No. 8
No. 9
No. 10
No. 11
No. 12
Grand total
Increase
Decrease
April 29 1933.
March 31 1933 . April 30 1932.
$43.016,249
075,444,756
9,925,501
1,410,481
373,222
3,548,571
37,096,792
1,082,982
2,868,357
1,350,000
1,229,652
19,466,794
841,350,516
553,133,515
10,372,191
3,174,940
154,801
4,062,749
33.440,653
1,138,494
2,205,604
1,100,000
1,358,978
19,574,950
$54,054,579
702,780,619
15,076,157
12,563.260
2,301,063
10,990,594
50,959,946
2,025,542
1,245,325
1,100,000
1,749,380
24.192,405
$696,813.357
$671,117.491
25,695,866
____ ___
$207,921,379
The House Banking Committee read primary portions of
the Steagall and Glass bills on May 13, but reached no
decision on any controversial feature said the "Times."
On May 15 a formal report on the Glass bill was filed
with the Senate by Senator Glass. The House Committee
on May 16 approved the bank reform bill, but before approving it wrote in several amendments according to Associated Press advices from Washington that day, which said:
$879,038,870
One by Representative Hancock (D., N. C.) would
remove double
liability from stockholders in the event the bank in which
they hold stock
should close. This was adopted 10 to 8.
Another change was approved which would, Hancock
said, "prevent
banks from engaging in the insurance business."
The committee approved as it stood the deposit insurance
feature of the
bill. The House bill would admit to the deposit
insurance fund State
banks which supplied certificates from State officials as
to their soundness,
provided the new Federal deposit insurance corporation
approved their
admission. . . .
Also like the Senate bill, it would require all national
and Reserve member banks to divest themselves of holdings in security
affiliates within
two years.
CLASSIFIED ACCORDING TO NATURE OF CREDIT.
April 29 1933.
Imports
Exports
Domestic shipments
Domestic warehouse credlts
Dollar exchange
Based on goods stored in or
shinned between for. countr's
$77,338,604
176,499,160
10,273,846
188,822.403
9,872,333
March 31 1933. Apri130 1932.
$73,137,951
175,275,670
9,913,482
173,992 293
8,357.576
$117,950,293
198.858,734
19,895,082
230,886,605
17,249,569
234.007.011
230.440.519
294.198.687
CURRENT MARKET QUOTATIONS ON PRIME BANKERS'ACCEPTANCES
MAY 16 1933.
Days.
Dealers'Buying Rate.
Dealers' Selling Rate
30
ff
li
80
%
34
so
si
H
120
%
,1
160
194
1
180
134
1
Volume of Commercial Paper Outstanding asMeported
to Federal Reserve Bank of New York 664,000,000
on April 30, as Compared With $71,900,000 March 31.
The following release was issued by the Federal Reserve
Bank of New York under date of May 19:
Reports received by this bank from commercial paper dealers
show a
total of 264,000,000 of open market commercial paper
outstanding on
April 30 1933.
Below we furnish a record of the figures since they were
first reported by the Bank on Oct. 31 1931:
1983—
Apr. 30
Mar. 31
Feb. 28
Jan. 31
1932—
Dec. 31
Nov. 30
Oct. 31
Sept. 30
Aug._31
July 31
1 1932—
364,000,000 June 30
71,000,000 May 31
84,200,000 Apr. 30
84,600,000 Mar. 31
1Feb. 29
81,100,000 Jan. 31
109,500,000: 1931—
113,200,000 Dec. 31
110,100,000: Nov. 30
108,100,000. Occ. 31
100,400,0001
$103,300,000
111,100,000
107,800,000
105,6813,000
102,818,000
107.902,000
117,714,784
173,684,384
210,000,000
Banking Reform Legislation Before Congress—Deposit
Insurance Provisions in Both Senate and House
Bills—Glass Bill Made Unfinished Business of
Senate—Deposit Insurance Proposal of Secretary
Woodin Rejected.
, What was described as "a much revised but far reaching"
bank reform bill was introduced in the Senate on May 10
by Senator Carter Glass; in the House on the same day
Representative Steagall, Chairman of the House Banking
Committee introduced a similar measure. The Glass bill
was unanimously approved by the Senate Banking and
Currency Committee on May 13, and on the same date the
House Committee began the study of the Steagall bill.
Pointing out that the bills are similar except from one
point (their deposit, insurance features), a Washington
dispatch, May 13, to the New York "Times" said:
The Glass and Steagall bills differ materially on one point,
the proposal
May 20 1933
and Federal Reserve member banks, and would guarantee in full
deposits Mt
to $10,000, those between $10,000 and $50,000 75%, and over
$50,000
100%. Establishment of the deposit guarantee would be delayed
a year.
By a vote of8 to 4,the committee rejected a proposal by Senator
McAdoo
to insure in full deposits up to $5,000 and to make this guarantee
effective
as soon as the bill became law.
Thus the Glass Bill emerges from the Committee with only a few
minor
amendments. One would forbid any bank officer from writing
insurance.
Another, by Senator McAdoo, would protect the rights of minority
stockholders in electing directors and deciding other questions of policy.
.. .
As completed, the Glass Bill would force banks to divest themselves
in
two years of the investment banking business and would prevent
private
banking establishments from receiving deposits and selling securities
at the
same time.
If they chose the business of receiving deposits, they would be
subject
to periodic governmental examination. These provisions,
committee
members say, are favored by President Roosevelt but disliked
by Secretary
Woodin.
Interlocking directorates between commercial banks and private
institutions dealing in securities are barred under the bill. Laced
through the
measure is language designed to prevent the use of Federal Reserve
funds in
speculation, a goal at which Senator Glass has long aimed.
The Steagall
Bill carries all these provisions.
The Glass bill was made the unfinished business of
the
Senate on May 17 under an arrangement between
Senator
Glass and Senator McNary, Republican leader, was
laid
aside until the conclusion of the Louderback impeachm
ent
trial. In advices from Washington, May 17, the "Times,"
said:
Members of the Advisory Council of the Federal Reserve
Board, composed of private bankers, said they gained the impression
from President
Roosevelt that the bill would be deferred until the January
session. Some
of the bankers who visited the White House told the
President that enactment of the measure at this time might retard the
reopening of banks
which have been closed since the bank holiday.
Stating that an emergency plan for insuring all bank
deposits up to $2,500 for one year, with a fund backed by
the Treasury, was advanced in the Senate on May 81 as an
amendment to the Glass bill. Associated Press accounts
from Washington that day said:
R had strong support from both parties.
.
The amendment was drafted by Senator Vandenberg,
original Senate
advocate of insuring deposits, after a long series of conferences
with other
Senators who felt that the insurance clause of the bank
bill should be
liberalized.
With this substitute plan ready. Senate leaders prepared to
begin debate
to-morrow on the bank bill instead of waiting until next week.
Mr. Vandenberg's proposal is intended to fill the gap between enactment
of the bill
and the proposed effective date of the Glass insurance plan, July
1 1934.
Deposits up to $2,500 in all banks would be insured during
that period
from a fund made up of an assessment of one-half of 1% of
all deposits,
supplemented by another assessment of the same size if
necessary. The
government would put up any additional funds needed, but
authors of
the plan are confident such a situation would not arise.
Senator Vandenberg said that he and those favoring his plan
offered It
to cover what they considered three "flaws" in the pending insurance
plan.
Ile described them as follows:
"First, that it doesn't become effective until July 1
1934, though the
need is greater in the next year than for the next hundred
years.
"Second, that it depends entirely on bank assessments
for solvency, and
although these should carry the load, many of us insist
that finally we have
got to throw the credit of the government back of it.
"Third, it applies only to Federal Reserve
member banks and those
banks that subsequently qualify as members, and
leaves out thousands of
State banks which at least at the inception of the plan
have got to stand on
a parity or go out of business."
Calculations showed, Mr. Vandenberg said, that the
would
be about $10,000,000,000, and that on the basis of insurable risk
last year's experience,
regarded as the worst in the nation's history, the
loss would be about
$175,000,000.
Against this would be assessments of $450,000,00
0 before the Treasury
would be called upon.
1
Last night (May 19) it was
stated in Associated Press
of Representative Steagall to allow State banks not members of the
Federal
advices from Washington that the Glass-Steagall bill had
Reserve wide opportunity to obtain benefits of the Deposit
Insurance Corps...,
Mr. Glass wishes to have the State non-member banks ask for
the right of way in both the Senate and the House after a
membership
in the Reserve to qualify for the insurance.
Senate Committee yesterday had
As to the action of the Senate Committee on May 13 the
same dispatch stated:
The Senate Committee agreed by a vote of 11 to 1 to the clause providing
for a $2,000,000,000 Federal corporation insuring bank deposits, as proposed by the Virginian.
This corporation would have an initial capital of 2450,000,000 to $500,000.000 made up of contributions from the Treasury. Federal Reserve Banks
rejected a last-minute
proposal by Secretary Woodin for amending the bill's
clause providing for the insurance of all bank deposits.
The advices from which we quote went on to say:
Just a short time before the Senate was to take up the
bill the Secretary
of the Treasury appeared before the banking sub-committee
which framed
the measure to urge a more liberal insurance plan than had
yet been considered, but it was rejected unanimously.
Volume 136
Financial Chronicle
3459
Simultaneously the House Rules Committee granted right of way for the
measure to Chairman Steagall of the House Banking Committees and
Representative Pou, Chairman of the Rules Committee, said he hoped to
bring the bill before the House to-morrow.
Mr. Steagall had just told the Committee the President had no objection
to immediate consideration.
Unlike numerous other measures brought before the House this session,
the bank reform bill will be open to amendment from the floor. Only four
hours of general debate are to be permitted.
Secretary Woodin's proposal surprised members of the sub-committee
because the.Treasury head only consented to the original Glass insurance
plan reluctantly and with the understanding that it would not become
effective for a year.
Though details of the Woodin plan were not disclosed, it was understood
to contemplate unlimited loans by the Reconstruction Finance Corporation
to banks when necessary to keep them open. Though its operation would be
entirely different from the other plans for insuring deposits, its effect would
be to give a Government guaranty to all deposits in banks now open.
"From this," said Senator Tydings, "it might be contended he is just the
opposite kind of a man from one who has represented Mr. Morgan. It might
be contended he is a red."
He said Mr. Acheson has also represented labor and was counsel for the
Typographical Union at Baltimore in an arbitration proceeding; that Mr.
Acheson was a lawyer of outstanding ability and had been retain%) by various clients solely because of his ability.
It had been expected that Senator Huey P.Long,"Kinglish," of Louisiana
would attack the appointment, but he was absent.
Senate Confirms Nomination of Eugene R. Black as
Member of Federal Reserve Board.
Frank Murphy, Mayor of Detroit, Takes Oath of Office
as Governor-General of Philippines—Joseph E.
Mills Accompanies New Governor-General as Adviser.
Frank Murphy, Mayor of Detroit, took the oath of office
on May 10 as Governor-General of the Philippines and was
succeeded in the Chief Executive chair of the city by Frank
Couzens, son of the Senator. An Associated Press dispatch,
May 10,from Detroit where the oath was administered, said:
On May 15 the United States Senate confirmed, without
discussion, the nomination of Eugene R. Black, as a member
of the Federal Reserve Board. As noted in our issue of
May 13, p. 3266, Mr. Black, who is Governor of the Federal
Reserve Bank of Atlanta, has been named to the Reserve
Board, to fill the unexpired term of Eugene Meyer, who
resigns as Governor of the Reserve Board. The Senate
Banking and Currency Committee approved Mr. Black's
nomination on May 12.
Resignation of Eugene R. Black as Governor of Federal
Reserve Bank of Atlanta.
Resignation of Governor Eugene R. Black of the Federal
Reserve Bank of Atlanta until he can return again to officiate
in that capacity, was accepted at a meeting of the directors of
the Bank on May 12. The resignation occurs as a result of
Governor Black's appointment to the Federal Reserve Board.
From the Atlanta "Constitution" of May 13 we quote:
Announcing the acceptance of Governor's Black resignation here in order
that he may assume temporarily a more important post in the Roosevelt
administration, a statement by Oscar Newton, Board Chairman, said:
"Anticipating the return of Governor Black to the office of Governor of
the Federal Reserve Bank of Atlanta within a few months, no successor
will be elected. However, Mr. W. S. Johns, Deputy Governor, was appointed Acting Governor of the bank to serve during the absence of Governor
Black."
Dean G.Acheson Named as Under-Secretary of Treasury
—Senate Confirms Nomination.
Dean G. Acheson was nominated on May 4 by President
Roosevelt as Under-Secretary of the Treasury. The nomination was approved by the Senate Foreign Relations Committee on May 10, and on May 16 the Senate registered its
confirmation. In noting opposition to the appointment
voiced by Senator James Couzens (Republican) of Michigan,
a Washington dispatch May 16 to the New York "Herald
•
Tribune" said:
Senator Millard E.Tydings, Democrat,of Maryland,came to the defense
of Mr. Acheson and was able to convince the Senate that the appointment
should be confirmed. Senator Couzens objected to confirmation because
Mr. Acheson was connected with a law firm here which has numerous corporation clients, many of them interested in the matters before the Treasury
Department.
Senator Couzens maintained that in view of his relations as a lawyer
with the corporations, Mr. Acheson could not impartially serve the public.
Especially, Senator Couzens criticized the appointment because, he asserted,
Mr. Acheson, through his firm, was "affiliated" with the House of Morgan.
Tydings Defends Appointment.
Senator Tydings, in the discussion to-day, brought out that Mr. Acheson
was recommended by him for the office of Solicitor General of the United
States. He said that those in authority were inclined to appoint him.
It was brought out in the discussion that Mr. Acheson had not asked for
the appointment as Under Secretary of the Treasury, but that Secretary
William H. Woodin had sent for him and asked him to accept the appointment.
Senator Tydings admitted that Mr. Acheson had no experience in banking and financial matters, but contended that this was not essential and
insisted that, by reason of his ability, he would prove a capable official.
Senator Couzens, when the nomination came up, proceeded further to
review the testimony taken in committee when Mr. Acheson appeared.
lie emphasized that, when Mr. Acheson was asked what financial experience
he had had, he replied:
"None at all."
Picked by Woodin.
Remarking that the record showed Mr. Acheson was not an applicant for
the office but that Secretary Woodin sought him, Senator Couzens commented that this was not surprising in view of the relations of Mr. Woodin
to New York financial interests.
The Michigan Senator declared there had always been "a complete coalition in the Treasury Department between Democrats and Republicans."
"I do not expect now to get a rise out of the Republicans." said Senator
Couzens.
The Senator recalled that the Democrats had not been aroused in the past
when he was criticising the methods of handling taxes in the Treasury. He
said there was "no partisanship in the handling of money."
Senator Tydings proceeded to review the career of Mr. Acheson briefly.
He said Mr. Acheson, who was originally from Connecticut, had been an
active member of the Democratic party.
Represented Soviet, Too.
Taking up the charges of Senator Couzens as to his firm having large
corporate interests for clients, Senator Tydings said that Mr. Acheson had
also represented the Soviet Republic before the tariff commission.
A. A. Ballantine Relinquishes Post as Under-Secretary
of Treasury.
A. A. Ballantine left his position as Under-Secretary of the
Treasury Monday night, May 15, to make way for his recently appointed successor, Dean Acheson, according to
Washington advices to the "Wall Street Journal" of May 16.
Circuit Judge Vincent M. Brennan administered the oath to the new
Governor-General. Present at the brief ceremonies in the City Hall were
city department heads and officials and friends and relatives of Mr.Murphy.
The new Governor-General plans to leave Detroit at midnight Saturday
for San Francisco and will sail May 19 on the President Coolidge. He will
arrive in Manila June 16, after making official stops at Tokyo and Shanghai.
Accompanying Governor-General Murphy to Manila will be Joseph E.
Mills. former General Manager of the Detroit Street Railways, who will
become economic adviser and director of the Government-controlled industries of the islands. and Norman Hill, the former Mayor's executive
secretary.
An item regarding Mayor Murphy's nomination to his
new post appeared in our issue of Apr. 22, p. 2710.
New Offering of $60,000,000 or Thereabouts of 91-Day
Treasury Bills to be Dated May 24 1933.
William H. Woo lin, Secretary of the Treasury, on May 17
announced a new offering of 91-day Treasury bills to the
amount of $60,000,000 or thereabouts. The bills will be
dated May 24 1933 and will mature Aug. 23 1933. On the
maturity date the face amount of the bills will be payable
without interest. The bills will be used to meet an is3ue of
$60,074,000 of similar securities maturing on May 24.
Tenders to the new offering will be received at the Federal
Reserve Banks, or the branches thereof, up to 2 p. m.,
Eastern Standard time, Monday, May 22, but will not be
received at the Treasury Department, Wash. The bills
will be sold on a discount basis to the highest bidders.
Secretary Woodin's announcement aho said in part:
They (the bills), will be issued in bearer form only, and in amounts or
denominations of $1,000, $10,000, $100,000, $500,000, and $1,000,000
(maturity value).
It is urged that tenders be made on the printed forms and forwarded in
the special envelopes which will be supplied by the Federal Reserve Banks
or branches upon application therefor.
No tender for an amount less than $1,000 will be considered. Each tender must be in multiples of $1,000. The price offered must be expressed
on the basis of 100, with not more than three decimal places, e. g., 99.125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated banks
and trust companies and from responsible and recognized dealers in Investment securities. Tenders from others must be accompanied by a deposit
of 10% of the face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour for receipt of tenders on May 22 1933,
all tenders received at the Federal Reserve Banks or branches thereof up to
the closing hour will be opened and public announcement of the acceptable
prices will follow as soon as possible thereafter, probably on the following
morning. The Secretary of the Treasury expressly reserves the right to reject
any or all tenders or parts of tenders, and to allot less than the amount
applied for, and his action in any such respect shall be final. Those submitting tenders will be advised of the acceptance or rejection thereof. Payment at the price offered for Treasury bills allotted must be made at the
Federal Reserve Banks in cash or other immediately available funds on
May 24, 1933.
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt,from an
taxation, except estate and inheritance taxes. No loss from the sale or
other disposition of the Treasury bills shall be allowed as a deduction, or
otherwise recognized, for the purposes of any tax now or hereafter imposed
by the United States or any of its possessions.
Tenders of $254,685,000 Received to Offering of $75,000,000 or Thereabouts of 91-Day Treasury Bills
Dated May 17—$75,442,000 Accepted—Average Price
0.45%.
Announcement was made on May 15 by Secretary of the
Treasury William H. Woodm that tenders totaling $25.4,685.000 were received to the offering of $75,000,000 or
thereabouts of 91-day Treasury bills dated May 17. Bids
to the hills were received at the Federal Reserve Baiik3 or
their branches llD to 2 p. m., Eastern Standard timo, Mon-
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Financial Chronicle
day, May 15. Of the tenders received, Secretary Woodin
announced that $75,442,000 were accepted, at an avenge
rate on a bank discount basis of 0.45%. Previous offerings
brought rates of 0.48% (bills dated May 10), 0.49% (bills
dated May 3), and 0.51% (bills dated April 26). The
average price of the bills dated May 17 is 99.887. Secretary
Woodin's announcement was contained in the following
advices from Washington, May 15, noted in the New York
"Herald,Tribune" of May 16:
William H. Woodin, Secretary of the Terasury, announced to-day
(May 15) that the tenders for $75.000,000, or thereabouts, of 91-day
Treasury bills, dated May 17, which were opened at the Federal Reserve
banks to-day, amounted to $254,685,000.
Except for one bid for $2,000 at 99.937, the highest bid made was 99.899,
equivalent to an interest rate 'of about 0.40% on an annual basis. The
lowest bid accepted was 99.882, equivalent to an interest rate of about
0.47%. Only part of the amount bid for at the latter price was accepted.
The total amouet of bids accepted was $75,442,000. The average price or
Treasury bills to be issued is 99.887 and the average rate about 0.45%.
The offering of the bills was noted in our issue of May 13,
page 3266.
Representative Patman's Plan for Retiring Government
Debt—Would Use New Currency to Wipe Out
Whole $21,000,000,000.
Representative Patman, Democrat, of Texas, proposed a
program, on April 30, under which the entire national debt
of $21,000,000,000 would be retired with new currency. We
quote from Associated Press advices from Washington,
April 29, to the Philadelphia "Public Ledger," which added:
Explaining that the suggestion represented his personal viewpoint and
that he was not speaking for the Democratic party, Mr. Patman asserted that
the program would save the Government $725,000,000 a year in interest
charges. •
"Undue inflation may be prevented by raising the reserve requirements
of banks from 10% to 25% or 33 1/3%," Mr. Patman said. "This simple
change would remove every objection urged by Mr. Mills (Ozden L. Mills,
former Secretary of the Treasury) to currency expansion." Mr. Patman
referred to an attack on inflationary legislation made by Mr. Mills at
Indianapolis last night.
"Higher reserve requirements will make the banks safe, a guarantee of
deposits unnecessary, and give a few powerful bankers less authority to
inflate and deflate at will," Mr. Patman said. "I do not recommend that
this change in Government policy be made quickly—it should be. made
gradually."
—
Veterans' Slashes to Be Reviewed by President
Roosevelt -Relief in Service-Connected Injury
Cases May Be Increased, White House Statement
Indicates.
A decision to review the new regulations reducing the
compensation of World War veterans having service-connected disabilities was announced by the White House on
May 10 following conferences in which President Roosevelt,
Louis Johnson, National Commander of the American
Legion, and Lewis W. Douglas, Director of the Budget.
participated. Any changes to be made will probably relax
the economies in service-connected injury cases. The
Administration had originally planned to save approximately
$400,000,000 of the $1,000,000,000 ordinarily appropriated
annually for veterans' compensation. The White House
statement follows:
As a result of conferences between the President, the National Commander of the American Legion, Louis Johnson and the Director of the
Budget, the following conclusions have been reached.
As a result of the application of the veterans' regulations, it now seems
that the cut in compensation of service-connected World War veterans
with specific injuries has been deeper than was originally intended. The
regulation and schedules in this respect will, therefore, be reviewed so
as to effect more equitable levels of payment. Careful study also will
be made of the other regulations and their effects.
By reason of the burden incident to rerating and in order that undue
hardship will not be imposed upon veterans in their application for adjudication of their case, regional offices of the veterans' administration
will not be closed as has been reported, except where it has been clearly
demonstrated that regional facilities are not necessary.
It is not contemplated that Government hospitals will be closed pending
a careful, studious survey of the entire hospital situation. This, of necessity, will require considerable time.
These conclusions are in line with the President's original statement
that the regulations and schedules would be drafted so as to effect the
most humane possible treatment of veterans truly disabled in war service.
On May 11 <was announced that Frank T. Hines, the
administrator of Veterans' Affairs, had been directed by
the President to present to him before July 1 a report with
recommendations for modification of existing regulations.
Senate Passes Doughton Bill Continuing Emergency
Taxes on Gasoline and Electric Power—Drop
Postage Rate Reduced—Amendments for Confiscation of Wealth and for Increased Tariffs Against
Countries With Depreciated Currencies Defeated—
House to Consider Revised Measure.
The $168,000,000 tax bill, continuing emergency taxes
on gasoline and electric energy until June 30 1934, was
passed by the Senate on May 12 without a record vote.
Prior to actual passage of the bill the Senate had rejected
May 20 1933
more than a dozen amendments, including proposals for
higher tariffs against depreciated currency countries and for
decentralization of wealth through confiscatory taxation.
The measure as approved by the Senate contains numerous
changes from the original House tax bill. It will now be
returned.to the House for action on these revisions. The
tax bill as originally introduced in the House was passed
by that body on April 20 by a vote of 313 to 45, as described
in our issue of April 22, page 2712.
The principal difference in the Senate bill from that passed
by the House is that the House provision transferring the
present 3% electricity tax from the consumer to the producer is changed so that a 2% tax would be paid by producers
of commercial and household energy and a 1% tax by
industrial users. Other features include a continuation of
the Federal one-cent-a-gallon gasoline tax, a reduction of
drop letter postage from three to two cents, and authorization for the President to alter other postal rates as he sees
fit. In addition municipally-owned power plants are
exempted from paying a 2% tax on gross receipts, and power
used in agricultural production was also exempted by
the Senate.
The Senate action on various amendments proposed on
May 12 is outlined below, in partial quotation from a
Washington dispatch of that date to the New York "Times":
The most decisive defeat of the day was that suffered by a proposal
by Senator Long to revise income tax schedules to confiscate incomes
above $1,000,000, inheritances over $5,000,000 and private property
holdings and gifts in excess of$100,000,000.
Although before the final vote Senator Long acceded to a request by
Senator Nye to eliminate the property confiscation provision, the amendment was voted down, 50 to 14.
After the defeat of the Long amendment, Senator Nye pressed one
raising the surtax rates from a range of 48-55% to 55-75%, but it was
beaten without a record vote.
"Drop Letter" Reduction Kept.
Early in to-day's session the Senate voted down, 51 to 27, an amendment
by Senator Hatfield which would have authorized the raising of tariff
rates to compensate for foreign depreciation of currencies.
The tie votes came on amendments not directly related to tax provisions,
concerning instead a provision authorizing an immediate drop in postal
rates to two cents an ounce on "drop letters'. and authorizing the President
to change other rates later as he might see fit.
Senator Vandenberg offered an amendment confining the President's
authority simply to reducing rates and not to raising them, and the amendment was lost through failing to get a majority of votes. Senator Clark,
presiding temporarily, announced there were 37 votes for the amendment
and an equal number opposed.
The Senate passed on now to an amendment by Senator Dickinson which
would in effect have re-established the two-cent letter rate for all first class
mail. This was defeated, 46 to 30, and Senator Vandenberg rose to announce that a recount of votes on the Harrison motion showed that a tie
vote had again been cast, the totals being 39 to 39.
However, one more roll-call resulted in the defeat of the Costigan motion
to reconsider, 43 to 37.
Several other minor amendments were defeated.
After conducting hearings on the bill the Senate Finance
Committee on May 8 amended the House tax measure to
reduce the tax on lighting current to 2% and to shift the
burden to power companies, while providing for a special
tax on industrial users of electrical power. Under the bill
originally passed by the House the tax remained at 3% but
was transferred from the consumer to the producer. Other
features of the House bill which were approved by the Senate
Finance Committee were the section continuing the tax of
one cent a gallon on gasoline and the section reducing the
postage on local mail from three to two cents and authorizing
the President to make a similar reduction on inter-city mail
if he so desires.
At the hearing before the Senate Finance Committee on
May 2 on the House bill, spokesmen of the utility companies
testified unanimously that the proposed shift of the power
tax to producers was unwarranted. Testimony offered by
the utility representatives, as summarized by the Washington correspondent of the New York "Times," follows
in part:
Half a dozen spokesmen for the utilities companies testified to-day.
The principal argument was presented by William J. Hagenati of Chicago.
representing the Edison Electric Institute. who termed the proposed change
"vicious."
Mr. Hagenah was questioned by Senators, who noted that in the tax
law passed last year the power companies were the only manufacturers
who were permitted to pass the sales tax burden to consumers.
He argued that there was a peculiar situation and called the change a
"discrimination."
"Aren't all manufacturers' sales taxes levied on the producer ?" Senator
Couzens asked.
"Yes." replied the witness, "but other manufacturers can pars them
on to the consumer. We would have to go to 48 State Commissioners to
get that right."
When Senator Couzens remarked that State commissions were supposed
to see that utilities earned a fair return. Mr. Hagenah replied that "that
would take time."
The witness agreed with Mr. Couzens's statement that not all other
manufacturers are able in actual practice to pass along the sales taxes to
consumers.
"You have a complete monopoly," Mr. Couzens said, "and yet you are
asking something that competitive industries are not given."
Volume 136
Financial Chronicle
Mr. Hagenah stated that many power companies were not earning
dividends, at which Senators Clark and Connally remarked that a low rate
of earnings might be due to over-valuation of properties—to "watered
stock."
Mr. Hagenah countered with the statement that the 3% tax, in some
instances, would be equivalent to a 100% tax on net earnings, a statement
which Senator Reed questioned.
Senator Harrison asked Randall La Boeuf, who spoke for the NiagaraHudson Power Co. and the Consolidated Gas Co. of New York, to supply
the Committee with statements of the original investment and subsequent
earnings of the Niagara Falls Power Co.. now a unit of the Niagara-Hudson.
which was described as being largely owned by Ogden L. Mills, former
Secretary of the Treasury.
B. Loring Young of the Massachusetts Utilities Association told the
Committee that his Association was formed "to prevent 30 so small operating companies from being gobbled up by the big interests."
"Don't penalize us for the sins of the few," he urged. "I'd like to see
the water squeezed out of all power companies."
"You'd all drown if that were done," replied Senator Connally.
Name of "Boulder Dam" Restored to Irrigation Project
on Colorado River—Secretary of Interior Ickes
Ends Controversy Following Its Designation as
"Hoover" Dam.
The name "Hoover" has been dropped by the new Administration for the great dam in the $165,000,000 irrigation
project now under way in the Colorado River, which is
hereafter to be known as "Boulder Dam." Associated
Press dispatches from Washington May 13 reporting this
stated that by a special order sent that day by Harold H.
Ickes, Secretary of the Interior, to the Bureau of Reclamation, the 730-foot dam, for which the actual pouring of
cement begins within the next few weeks, was renamed..
The accounts from which we quote also said:
It was named Hoover Darn in September 1930 by Ray Lyman Wilbur,
who was President Hoover's Secretary of the Interior. One reason that
Dr. Wilbur gave for giving President Hoover's name to the dam, it was
explained at the time, was that the first historic meeting of representatives
from seven Southwestern States of the river basin was presided over by
President Hoover as Secretary of Commerce. The meeting. in 1922, was
held in Santa Fe, N. M.
A controversy has been carried on in various parts of the country ever
since Dr. Wilbur announced "Hoover" as the name of the dam. Reports
received by the Interior Department show that many newspapers, particularly in the West, have continued to refer to the dam as "Boulder Dam,"
entirely disregarding the designation conferred on the great work by
Dr. Wilbur.
Authorized during the Coolidge Administration, the dam when completed
will form a solid structure of masonry larger than the great pyramid of
Ohizeh in Egypt.
President Roosevelt's Request to Defer Farm Foreclosures Anticipated by New York Life Insurance Co.
Referring to the request of President Roosevelt that farm
mortgage creditors refrain from bringing foreclosure proceedings until the operation of legislation enacted May 12,
Thomas A. Buckner, President of the New York Life Insurance Co., said, according to an announcement issued by
the company, dated May 14, that that company had already
directed the suspension of all mortgage foreclosures on owneroccupied farms throughout the United States. This action,
he stated, was taken by the Finance Committee on May 11
in anticipation of the signing of the farm mortgage bill by
the President.
President Signs $500,000,000 Wagner Direct Relief Bill—
Declares Federal Aid to States Should Stimulate
Local Contributions—Congressional Conference
Committee Previously Approved Minor Changes
in Measure—Reconstruction Finance Corporation
Has Authorized $295,960,197 in Loans to States
from Original Fund of $300,000,000.
The Wagner $500,000,000 relief bill for direct grants of
aid to States was signed by President Roosevelt on May 12,
after the measure had been approved by the House of
Representatives without a record vote on May 9. A similar
bill was originally adopted by the House on April 21, but
minor amendments were added by the Senate Banking and
Currency Committee. The Senate passed the bill on May 1
without a record vote, and it then went to conference committee, where an agreement was reached on May 5. Previous
reference to the relief measure were contained in our issues
of April 29 (page 2894) and May 6 (page 3080).
In a statement issued by the President as he signed the bill,
he made it clear that the measure does not exempt State and
local agencies from the responsibility of assuring necessities
of life to their citizens, and said that the Federal Government will not aid until these agencies have done their utmost.
The statement read:
"I want to make It very clear to citizens in every community that the
bill I have Just signed, authorizing an appropriation of $500,000,000 of
Federal funds for unemployment relief, does not absolve States and local'
communities of their responsibility to see that the necessities of life are
assured their citizens who are in destitute circumstances.
"The bill, in effect, is a challenge to Governors. Legislatures and loco
Officials to stimulate their own efforts to provide for their own citizens in
need.
3461
"For these and other good reasons, citizens who are able should voluntarily contribute to the pressing needs of welfare services.
"The giving of life's necessities by the Government, in ratio to contributions made by States and local communities, should lead to the giving
of generous contributions to community chests and welfare organizations
throughout the country.
"The principle which I have on many occasions explained is that the first
obligation is on the locality: if it is absolutely clear that the locality has
done its utmost but that more must be done, then the State must do its
utmost. Only then can the Federal Government add its contribution to
those of the locality and the State."
Regarding the bill, we quote the following from the
"United States Daily" of May 16:
The Federal fund will be raised by Increasing the outstanding issues of
Reconstruction Finance Corporation obligations.
Under the new law a Federal Emergency Relief Administrator will be
created who will have authority to create the necessary staff, with a limit
on administrative expenditures of $350,000 during the two years in which
the law is operative.
Half of the $500,000,000fund is authorized for grants to States in the ratio
of one-third of the amount expended by such States for relief. After
Oct. 1 1933, this restriction will be removed.
The balance of $250,000,000, plus any amounts remaining from the first
half of the fund, will be used for grants to States where the combined
Federal. State and local funds are inadequate. Additional grants are
authorized for those in distress who have no legal settlement in any State
or community and this also applies specifically to co-operative and selfhelp associations for the barter of goods and services.
Administrator's employees will be outside civil service clasfalcation.
None of their salaries may exceed $8,000 a year.
The District of Columbia, Alaska, Hawaii, Puerto Rico and the Virgin
Islands are included in the terms of the law.
From a Washington dispatch May 9 to the New York
"Times," we quote:
The conferees raised the salary of the administrator who will direct the
relief from $8,500 to $10000, and made a few other minor changes.
Opponents charged that the Democrats removed the employees from
civil service requirements In order to establish a huge patronage organization. Representative Luce of Massachusetts was the chief spokesman,
and Representative Kvale, Farm-Labor of Minnesota, said this plan would
become "a polite but effective bribery weapon."
On May 9 the Reconstruction Finance Corporation reported that all but about $4,000,000 of its funds for relief
to States was exhausted, and that pending applications
aggregate more than the remaining portion of the fund.
Under the act creating the Reconstruction Finance Corporation, it was authorized to extend $300,000,000 for relief to
States. Authorizations at the close of business on May 6
were listed as follows by the Corporation:
Slate—
Alabama
Arizona
Arkansas
California
Colorado
Florida
Georgia
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Michigan
Minnesota
Mississippi
Missouri
Montana
Nevada
New Hampshire
Total. I State—
$4,211,688 New Jersey
1,446,801New Mexico
4,833,967 New York
10,081,631 North Carolina
3,732,110 North Dakota
3,886,516 Ohio
1,713,996 Oklahoma
1,026,566 Oregon
55,443,721 Pennsylvania
5,119,886 Rhode Island
2,130,587 South Carolina
2,592,934 South Dakota
6.728,987 Tennessee
8,200,127 Texas
143,740 Utah
176,380 Virginia
19,735,503 Washington
2,581,787 West Virginia
4,004,187 Wisconsin
4,616,789 Hawaii
2,368,285 Puerto Rico
260,632
Total
1,366,603
Total.
2,009,291
387,903
26.400,000
5.950,000
584,493
18,876,856
4,570,597
2,797,473
34,929,875
1,123,590
4,575.270
1,803,945
3,375,352
6,983.505
2,923,439
3,482,244
5,977,430
9,655,218
12,395,363
394,935
360,000
5295,960,197
President Roosevelt, in Message to Congress, Transmits
Bill for National Industrial Recovery—Would
Grant Executive Far-Reaching Powers for Two
Years—Measure Authorizes Licensing of Industry
to Eliminate Unfair Competition and Liberalizes
Anti-Trust Laws—Provides for $3,300,000,000 Public
Works Program, with $220,000,000 in New Taxes.
In a special message to Congress on May 17, President
Roosevelt transmitted an industrial recovery bill, which
would confer on the President for the period of two years
virtual dictatorial powers over certain branches of industry
and over the Government public improvement policies. The
purpose of the measure, Mr. Roosevelt said, is to revitalize
and stabilize the nation's industry. It combines a project for
Federal direction of business under a code of fair competition with a Government outlay of $3,300,000,000 for public
works.
Immediately after the receipt of the President's message
by Congress, Senator Wagner of New York, as one of the
authors of the bills, introduced it in the Senate, while Chairman Doughton of the Ways and Means Committee introduced
the measure in the House. A session of the Committee was
called for the following day (May 18) to discuss the method
of imposing the $220,000,000 in new taxes which the President said would be necessary to meet interest and sinking
fund requirements for the new public works bonds which are
to be issued. The President said in his message that it is
"imperative that the credit of the *United States Government
be protected and preserved," and that provision must be made
for adequate financing. He added that if the House Ways
3462
Financial Chronicle
and Means Committee had not agreed upon the specifications of the new taxes by the beginning of next week, he (the
President) would then himself transmit to Congress his
recommendations in the matter. In discussing the matter
of taxation and revenue to finance the public works contemplated, Mr. Roosevelt said that in the event of the repeal
of the prohibition amendment the pre-prohibition revenue
laws would "yield enough wholly to eliminate these temporary re-employment taxes."
The President in his message pointed out the gravity of
the present emergency, and said that "it is urgently necessary immediately to initiate a re-employment campaign if
we are to avoid further hardships, to sustain business improvement and to pass on to better things." He first requested that Congress provide for the machinery necessary
for a co-operative movement throughout all industry in order
"to obtain wide re-employment, to shorten the work-week, to
pay a decent wage for the shorter week and to prevent unfair competition and disastrous over-production." For this
purpose he requested added authority on behalf of the executive branch of the Government, and a liberalization of
the anti-trust laws to allow agreements and codes insuring
fair competition. Mr. Roosevelt's second request was for
the public works program, which he estimated would involve
an expenditure of approximately $3,300,000,000.
The "industrial-recovery" bill itself contains about 4,000
words. Under the provisions for industry control, it would
give the President wide authority to encourage, promote and
require organization within private industry for better control of output, the elimination of unfair competitive practices,
unemployment relief, improvement of the standards of labor,
and "otherwise to rehabilitate industry and to conserve
natural resources." For a period of two years the President
would be authorized to use any agencies he considered proper
to attain these ends, and to compel—if necessary by a system
of Government licenses—enforcement of codes of fair competition. He would be allowed to delegate the powers granted him "to such officers, agents and employes as he may
designate or appoint."
The second part of the bill, dealing with the public works
program, would appropriate a lump sum of $3,300,000,000 for
a Federal public works program, to be expended through a
"Federal Emergency Administrator of Public Works." The
public works administration would formulate a program of
construction, and would also have the power to make grants
to States, municipalities and "other public bodies," up to
30% of the cost of labor and materials involved. An annual
sinking fund, amounting to 2%% of the aggregate appropriations outstanding under the act would be created. Additional public works activities of the Reconstruction Finance
Corporation would be abandoned and its loan powers decreased accordingly. The text of President Roosevelt's message to Congress on the National industrial recovery bill
follows:
To the Congress:
Before the special session of the Congress adjourns, I recommend two
further steps in our national campaign to put people to work.
My first request is that the Congress Provide for the machinery necessary for a great co-operative movement throughout all industry in order
to obtain wide re-employment, to shorten the work week, to pay a decent
wage for the shorter week and to prevent unfair competition and disastrous
overproduction.
Employers cannot do this singly or even in organized groups, because
such action increases costs and thus permits cut-throat underselling by
selfish competitors unwilling to join in such a public-spirited endeavor.
One of the great restrictions upon such co-operative efforts up to this
time has been our anti-trust laws. They were properly designed as the
means to cure the great evils of monopolistic price 'fixing. They should
certainly he retained as a permanent assurance that the old evils of unfair
competition shall never return. But the public interest will be served if,
with the authority and under the guidance of government, private industries
are permitted to make agreements and codes insuring fair competition.
However, it is necessary, if we thus limit the operation of anti-trust laws
to their original purpose, to provide a rigorous licensing power in order
to meet. rare cases of non-co-operation and abuse. Such a safeguard is indispensable.
IL
The other proposal gives the Executive full power to start a large program of direct employment. A careful survey convinces me that approximately $3,300,000,000 can be invested in useful and necessary public
construction, and at the same time put the largest possible number of people
to work.
Provision should he made to permit States, counties and municipalities
to undertake useful public works, subject, however, to the most effective
possible means of eliminating favoritism and wasteful expenditures on unwarranted and uneconomic projects.
We must, by prompt and vigorous action, override unnecessary obstructions which in the past have delayed the starting of public works programs.
This can be accomplished by simple and direct procedure.
In carrying out this program it is imperative that the credit of the
United States Government be protected and preserved. This means that at
the same time we are making these vast emergency expenditures there must
May 20 1933
be provided sufficient revenue to pay interst and amortization on the cost
and that the revenues so provided must be adequate and certain rather than
inadequate and speculative.
Careful estimates indicate that at least $220,000,000 of additional revenue
will be required to service the contemplated borrowings of the Government.
This will of necessity involve some form or forms of new taxation. A number of suggestions have been made as to the nature of these taxes. I do not
make a specific recommendation at this time, but I hope that the Committee of Ways and Means of the House of Representatives will make a careful study of revenue plans and be prepared by the beginning of the coming
week to propose the taxes which they judge to be best adapted to meet the
present need and which will at the same time be least burdensome to our
people. At the end of that time, if no decision has been reached or if the
means proposed do not seem to be sufficiently adequate or certain, it is my
intention to transmit to the Congress my own recommendations in the
matter.
The taxes to be imposed are for the purpose of providing re-employment
for our citizens. Provision should be made for their reduction or elimination—
First—As fast as increasing revenues from improving business becomes avallabl
to replace them.
Second—Whenever
the repeal of the Eighteenth Amendment now pending before
P.
the States shall have been ratified and the repeal of the Volstead Act effected.
The pre-prohibition revenue laws would then automatically go into effect and
yield enough wholly to eliminate these temporary re-employment taxes.
Finally, I stress the fact that all of these proposals are based on the
gravity of the emergency and that, therefore, it is urgently necessary immediately to initiate a re-employment campaign if we are to avoid further
hardships, to sustain business improvement and to pass on to better things.
For this reason I urge prompt action on this legislation.
FRANKLIN D. ROOSEVELT.
The White House, May 17 1933.
Director of the Budget Douglas Submits Tentative Tax
Programs to House Committee Studying Methods
of Financing Public Works.
Lewis W. Douglas, Director of the Budget, on May 18,
submitted to the House Committee on Ways and Means
four tax programs as examples of methods from among
which Congress might choose in financing the public works
program in the administration's industrial recovery bill.
It was estimated by the President that at least $220,000,000
in new taxes will be needed to furnish sinking fund and interest for borrowings which the Treasury will have to make.
The several projects offered by Mr. Douglas listed increases
in the normal income taxes and the application of normal
income tax rates to corporate dividends, which are now
exempted. The plans, as summarized in a Washington
dispatch to the New York "Times," follow.
(a) Normal income tax rates, 6 and 10%
Dividends subject to above rate
Additional tax of X-1 cent on gasoline
Total------------------------------------------(b) Normal income tax rates, 6 and 10%
Dividends subject to above rates
Tea (10 cents per pound)
Coffee (5 cents a pound on coffee beans)
Cocoa (5 cents per pound on cocoa beans)
$46,000,000
83,000,000
92,000,000
$221,000,000
83,000,000
8,000,000
70,000,000
17,000,000
Total
____________ $224,000,000
(c) Normal income taxrates,___ and
87,000,000
Dividends subject to above rates (*)
messages 25 to 103.000,000
Telephone toll messages (tax of 5 cents on
50
A:888:8%0
Admissions (beginning at
--------------------------------------------Total
$221,000,000
(d) General manufacturers excise (re-employment tax), 13i%
with no exemptions
214,000,000
(e) General manufacturers excise (re-employment tax), 1 1-5%
with no exemptions
228,000.000
(5)We should be inclined to reduce the dividend estimate by another
$10,000,000 to take account of the effect of further increase in the tax
evasion
and
in
repressing
in promoting
dividend payments.
House and Senate Approve Conference Report on Bill
for Government Operation of Muscle Shoals and
Creation of Tennessee Valley Authority—President
Roosevelt Affixes Signature to New Legislation—
Provides for Creation of New Commission to be
Known as Tennessee Valley Authority.
President Roosevelt's program for development of the
Tennessee Valley, with plans for government operation of
the Muscle Shoals power project, received final Congressional approval on May 17, when the House of Representatives, by a vote of 259 to 112, adopted the conferenc9 report
which adjusted the House and Senate differences on the
measure. On the preceding day (May 16) the Senate approved the conference report without debate. With the
Congressional action thus completed, the bill became a
law on May 18, with its signing by President Roosevelt.
Under the terms of the revised bill there is created a
Government Commission known as the Tennessee Valley
Authority. This body will have complete charge of a huge
development program, including power to operate Muscle
Shoals, sell the electric energy to States, municipalities
and individuals; construct and operate transmission lines
for power diffusion to many State3, supervise the economic
development of the Tennessee Valley, construct dams, flood
control and navigation works, and conduct forestation
operations.
The administration's plan for the development of the
Tennessee Valley was outlined in a special message to Con-
Volume 136
Financial Chronicle
gress by President Roosevelt on April 10, as described in
our issue of April 15, page 2528. On April 11 separate bills
were introduced in the House and Senate, each providing
for the principal features of the President's proposal. The
House bill was passed in that body on April 25, while tha
Senate by a vote of 63 to 20 approved the Norris bill on
May 3. The two bills then went into conference committee, and on May 13 the committee announced that
agreement had been reached. Final approval of the revised
bill was then recorded by both House and Senate, as described above.
When it was announced on May 13 that the Senate and
House differences over the measure had been composed in
conference, Senator Norris expressed his approval of the
revised bill and all but one of the conferees signed the agreement. The dissenter was Representative James of Michigan. He objected to a provision for a $50,000,000 bond
issue to pay for additional power plant and dam construction
after the proposed Cove Creek dam on the Clinch River in
Tennessee is built with Federal appropriations. Among
the points agreed on by the conferees were the following,
according to an Associated Press dispatch from Washington
on May 13:
The conferees accepted, in the main, the Norris provisions for government construction of power transmission lines and for experimental production of fertilizer, although the Nebraskan made some concessions on
the latter to permit the Government corporation to sell fertilizer as well
as manufacture it for experimental work among farmers.
The board, however, will not be required to go into commercial production of fertilizer as was required under the House bill.
"The board," the fertilizer clause reads,"in order to improve and cheapen
the production of fertilizer, is authorized to manufacture and sell fixed
nitrogen, fertilizer and fertilizer ingredients at Muscle Shoals by the employment of existing facilities, by modernizing existing plants, or by any
other process or processes that in its judgment shall appear wise and profitable for the fixation of atmospheric nitrogen or the cheapening of the
production of fertilizer."
In the event that Nitrate Plant No.2 is not used for fertilizer production,
it is to be maintained "in stand-by condition" for the production of explosives for war purposes.
Within a year after enactment, the President, in his discretion, may
lease the nitrate plan to any responsible farm organization or corporation
created by such an organization for the exclusive production of fertilizer.
"If there is any way on earth to cheapen fertilizer for the farmers this
bill is the last step in bringing it about," Senator Norris asserted.
"It's not only a bill for experimentation in fertilizer, but in electric
power as well.
"The board will have authority to build transmission lines into the
country and will decide the best method of doing it."
Instead of the Senate general provision for bonds, the conferees took
the House provision for a $50,000,000 issue. No specific appropriations
were provided, the report merely saying, "All appropriations necessary"
are authorized.
Debate on the Muscle Shoals bill in the Senate on May 2
was featured by addresses by Senators Vandenberg, Copeland and Metcalf. The first two senators mentioned spoke
on behalf of an amendment which would have canceled the
proposal in the bill to iay 2M% of the gross proceeds of
power sales to Alabama and a like proportion to Tennessee.
The amendment was defeated on the same day by a vote of
43 to 31. Senator Metcalf attacked the entire Muscle
Shoals project. Highlights of the day's debate, as reported
to the New York "Times," follow:
All three senators who spoke against the Muscle Shoals bill or its provisions to-day critised especially what they termed a proposal to subsidize
virtually a whole section of the country.
"New York State, in order to get power from the St. Lawrence waterway project," Senator Copeland said, "Is bearing a large share of the
cost of the work, but here we are contributing money to develop a project
for the direct benefit of the States in the Tennessee Valley, and paying
the States in addition."
Both Senator Copeland and Senator Wagner voted for the Vandenberg
amendment.
Senator Vandenberg referred to the wide plans for development of
the valley, including in addition to power development and fertilizer
manufacture the establishment of "an industrial empire."
"This is an industrial empire truly," the Michigan Senator said, "and
now the proponents of the bill propose to charge the United States Government an admission fee to the valley where they will use Federal reservoirs
to create the industrial empire."
With the approval of the conference report by the Senate
on May 17, Associated Press accounts from Washington
stated.
The measure fulfills a Democratic party platform pledge, carries out
one of President Roosevelt's urgent requests for emergency legislation
and pets a government corporation into the power-production business.
Delay in sending the engrossed bill to the President was caused by
the early adjournment of the House because of the death of Representative Brand of Georgia, Speaker Rainey and Vice-President Garner
not affixing their signatures. Chairman McSwain said this would be
done to-morrow, when the bill would be taken to the White House.
Action on the conference report came after an hour of debate. Representative Snell of New York, the Republican leader, demanded a rollcall vote. Eleven Republicans and three Farmer-Laborites joined 245
Democrats in support of the bill, while 28 Democrats voted with 84 Republicans against it.
The measure provides for the creation of a board of three, to be appointed by the President, to direct the Tennessee Valley Authority. This
corporation would handle the vast project, including the production of
Dower and fertilizer at Muscle Shoals on the Tennessee River, the construction of a power dam on Cove Creek In Tennessee, and the building and
Purchase of transmission lines.
3463
The House receded on the chief disputed points in the measure to accept
with only minor changes the proposal of Senator Norris, outstanding
proponent of government ownership of power projects.
Republicans who voted for the bill were Boileau, Peavy and Witmow
of Wisconsin; Reece and Taylor of Tennessee, Chase of Minnesota, Gilchrist of Iowa, Kelly of Pennsylvania. Lemke of Indiana. Sinclair of North
Dakota and Welch of California.
Democrats voting in the negative were Adair. Arnold, Brennan, Beam,
Kelly, Kocialkowski, Meeks, O'Brien, Parsons, Sabath, Schaefer, Schuetz
and Thompson of Illinois; Blanton, Kieberg and Terrell of Texas: Hoehn°
and Ludlow of Indiana, Lambeth of North Carolina, McCarthy of Kansas,
Maloney of Connecticut, Montet of Louisiana, Morehead of Nebraska,
Peyser and Sutphin of New York, Taylor of South Carolina and Utterback
of Maine.
Arens, Johnson and Lundeen. Farmer-Laborites, of Minnesota, voted
in the affirmative.
New Regulations for Medicinal Liquor Distribution
Issued—Physicians May Prescribe 30 or 90-Day
Supply for One Patient.
Regulations for the distribution of medicinal liquors were
issued at Washington by the Bureau of Industrial Alcohol
on May 9. The regulations provide that physicians may
prescribe 30-day supplies of spirits and wines in ordinary
cases, and a 90-day supply in exceptional eases. The new
rules became effective on May 15. Spirituous and vinous
liquors are interpreted as meaning whiskey, alcohol, brandy,
rum, gin and other distilled liquors and fermented fruit
juices of more than 3.2% alcohol and the physician must
possess a permit to prescribe them. Other provisions of
the regulations are given below, as quoted by the New
York "Times" Washington correspondent on May 9:
Prescriptions for ninety-day supplies must be marked "special" and
must be reported to the Supervisor of Permits within 24 hours of their
issuance.
False statements or representations made to physicians to obtain prescriptions when there is no medical need for liquor, or for amounts in excess
of that actually required, were made a violation of the law.
A record must be kept by physicians of every prescription for liquors
in a bound book showing the date of issue, the amount of liquor prescribed,
to whom prescribed, the period for which prescribed, the purpose or ailment for which issued, directions for use, with the amount and frequency
of the dose.
Review of permit revocations by courts of equity is provided.
Until the Treasury prints stamps, which after Jan. 1 1934, must be
placed on all prescriptions by physicians, prescription books will be furnished to physicians free of cost by supervisors of permits. Stubs must be
filled out by the physician at the time the prescription is written and forwarded to the Supervisor of Permits when the prescription blanks are
exhausted.
After the supply of prescription books is exhausted the physician will use
his own blank, attaching the required stamp which will be furnished free
by supervisors of permits.
Druggists must retain liquor prescriptions on a separate file as a record
available for inspection by Federal agents. They must make a monthly
report to the Supervisor of Permits showing the number of prescriptions
and the amounts of spirituous liquor prescribed in excess of a quart and
of vinous liquor in excess of one gallon.
House Passes Administration's Independent Offices
Bill, with Appropriations Totaling 043,573,936—
Rider Authorizes President to Effect Economies in
National Services—Measure Goes to Senate.
The Administration's independent offices appropriation
bill, authorizing expenditures totaling $543,573,936 to
finance the Veterans' Administration, the Federal Trade
Commission, the Inter-State Commerce Commission and
other establishments for the fiscal year beginning July 1
1933, was passed by the House of Representatives on May 12
by a vote of 249 to 118. The bill carried as a "rider" an
amendment authorizing the President to abrogate transportation contracts, furlough army officers at half pay, and
retire civil service employees who conclude 30 years of active
service. Under this amendment he may also, if he sees fit,
suspend the extra pay drawn by Army, Navy and Coast
Guard aviators.
The measure as passed by the House contains an increase
of $8,000,000 for the financing of the regional offices of the
Veterans' Administration, but it was generally anticipated
that the Senate would vote this provision out of the bill. The
passage of the bill completed the House consideration of the
annual appropriation bills for the financing of the Government in the fiscal year 1934. Transmission by the President .
to the House of a revised estimate for the 1934 independent
offices supply bill was detailed in our issue of April 22,
page 2710.
Eventual enactment of the bill was indicated when, on
May 8, the House of Representatives, by a vote of 202 to 156,
adopted a special rule prohibiting amendments to the legislative section of the measure. Passage of the special rule by
the House came only after Republican leaders had charged
the Democrats with acting as "rubber stamps" for the Administration. Fifty-two Democrats voted against the rule.
We quote from Washington advices to the New York
"Times" of May 8 regarding debate in the House before the
vote on the rule:
Financial Chronicle
Representative Snell, Minority Leader, assailed the Democratic plan to
force a vote on all the different legislative features of the measure at one
time, and Representative Britten of Illinois told the Democrats that they
could not pass anything except under the gag rule.
"It's the only way you have done anything this session," he charged.
"Members over there don't do their own thinking. The Administration
thinks for you and you swallow it, hook, line and sinker."
The opponents centered their attack upon the sections authorizing the
President to abrogate or cancel transportation contracts and the proposal to
furlough some Army officers at half-pay. Representative Ranaley of Pennsylvania said he opposed the measure for that reason.
"It legalizes the breaking of contracts," he said. "We don't know whether
the President will furlough 1,000, 2,000 or 4,000 Army officers."
Representative Lehlbach of New Jersey declared the measure would seriously cripple the national defense, and Representative Mapes of Michigan
charged the Administration with attempting to destroy air mail service across
the Great Lakes from Michigan, Illinois and Wisconsin.
"You are hog-tied, and you fellows have to swallow the thing whole,"
Representative Taber of New York charged. "This is vicious and destructive.
If these proposals have some merit, why don't you bring them in separately?
There is no reason to put them all through together."
Defended By Buchanan.
The stanchest defender of the proposal was Representative Buchanan of
Texas, Chairman of the Appropriations Committee. He said the whole
scope of the plan was to save money and increase efficiency. He told the
Republicans they had had 12 long years to do something.
"Now we have a President who is trying to do something, and you sit
there and yell 'gag rule,'" he declared.
He said the principal savings contemplated were in the transportation
of foreign air mail and the cancellation of contracts which he said were
made illegally by the last Administration "in direct violation of the law
enacted by Congress."
Former Postmaster-General Brown was the target of Mr. Buchanan's
attack. He said two contracts awarded by Mr. Brown on March 2 and
another previously let added $145,000 a year to air snail costs, when the law
specified that no such contracts could be let when they would add to the
deficit.
Serious and Grave Obstacles to Fair and Honest
Dealings Seen by Merchants' Association of New
York in Federal Securities Control Bill—Memorandum Filed with Conference Committee Citing
Objections to Bill—Suggestion as to Adoption of
Registration and Fraud Law.
Holding that the public is entirely unfamiliar with the
serious consequences that would follow the enactment, in
their present form, of the Federal Securities bills now pending before the Conference Committee of the House and Senate in Washington, the Merchants' Association of New York,
with the unanimous approval of its Board of Directors, has
filed with the members of the Conference Committee a memorandum criticizing many features of the bills on the ground
that they present serious and grave obstacles to fair and
honest business dealings and offer such Impediments to the
legitimate flow of capital that they would tend to impede
reconstruction and prevent the return of an increased volume
of business.
The memorandum of the Association was filed in response
to a suggestion from Senator Duncan Ti. Fletcher, Chairman
of the Senate Committee on Banking and Currency. The
Association told Senator Fletcher and his associates on the
Conference Committee that it was in full accord with the
principles of passing a sound securities bill as proposed by
President Roosevelt, but that the measure as passed by both
branches of Congress contained many features which were
entirely unworkable. Before the memorandum was approved, the bills were carefully studied by a group of legislative and legal experts acting on behalf of the Association.
The matter was carefully reviewed at a meeting of the
directors on May 11. In the memonandum filed with the
Conference Committees the measures were criticized on the
following grounds:
1. That the House bill imposes a liability on dealers in Government, State
and municipal securities which would render it unsafe for dealers
to distribute such issues and thereby greatly curtails the usual channels for
obtaining necessary funds of this character.
2. That the House bill would compel a complete reorganization of
the
methods of doing business in brokerage houses with effects
injurious to
both brokers and the public.
3. That they would establish (particularly in the case of the Senate
bill)
such an unfair and unusual liability on corporation directors as
to tend to
. bring about the resignation of responsible men from
directorates of corporations which may have to issue securities.
4. That in the case of the Senate bill the provisions would apply
not only
to the original issue but to all resales and thus attach a liability
to all
security owners who might desire to sell them.
5. That the House bill attaches such liability to
individual sellers of
securities as to make resale out of the State dangerous, except
on a public
exchange, thus greatly limiting the market for unlisted
securities, to the
injury of the private owners.
6. That the bills would make it difficult for officers of insurance
companied, banks and investment companies to raise large sums of
money on
short notice to meet unexpected contingencies, such as a large fire loss.
7. That more particularly the House bill would establish such
unnecessary
complications in the sale of new corporate issues as to materially
slow up
such issues and add a large expense which would have to be
borne by
the buyer.
8. That both bills impose such liabilities on the underwriters of foreign
bonds as to make the sale of foreign bonds in the United States extremely
May 20 1933
difficult, greatly interfere with foreign trade, and possibly lead to serious
international complications.
9. That particularly the Senate bill offers complications which might
unnecessarily curtail the volume of financial advertising.
10. That the practical effect of the House bill would be to adopt each
of the State blue-sky laws as a part of the Federal statute and thus impede
the flow of commerce between States to the injury of Federal authority.
11. That they would erect barriers which would interfere with fair
business dealings and impede the proper flow of capital necessary to reconstruction and better business.
The Association suggested that all the needs of the situation should be met by the adoption of a simple registration
and fraud law based on the principles of registration and
complete information with respect to new security issues,
the limitation of responsibility of officers and directors to
the exercise of good faith and due diligence in connection with their statements, establishment of strong
fraud -provisions on the lines of the Martin Act in
New York State, and the establishment of the same provisions with respect to foreign issues as would apply to domestic securities. Following the approval of the Association's brief by the Board of Directors, William C. Breed, a
Director of the Association and former President of the New
York State Bar Association, made the following statement:
I am heartily in accord with the action of the Directors of the Merchants'
Association. Substantial amendments to the Federal Securities bills now
before the Conference Committee of the Senate and House are necessary in
order to make either bill workable.
If either be passed in its present form, our entire system of Government,
State, municipal and corporate financing would be seriously affected, and
in a major degree disrupted.
The terms of the present bills with respect to civil liability placed upon
officers, directors and individuals in connection with inter-State sales would
open the door to a system of legal securities ambulance-chasing that would
put in the shade the negligence ambulance-chasing evils with which our
courts and citizens are so familiar.
The passage of some Federal statute regulating inter-State sales of
securities should be favored. Such a statute, when passed, will, however,
inevitably
be followed by amendments to existing State laws.
But herein lies the danger if the Federal Act is not a workable
Act
unduly restrains honest financing of business enterprises, old or new. and
unworkable features will spread and eventually become a part of State The
laws.
Fraudulent issues and the fradulent sale of good securities
inter-State
should be stopped wherever discovered. There should be a
Federal agency
watchful and equipped to act.
However, we are not to-day without protection. Forty-seven
States
already have Securities laws regulating fraudulent
transactions. The
United States has a very effective Postal Fraud Act regulating
the use of
the mails. If we are to have a Federal Securities law, it is
far more vital
that time should be taken to work out a sound model law
than to pass one
quickly which may work indefinite harm to our national
progress.
I sincerely hope the amendments suggested by the
Merchants' Association
will receive most serious consideration by the Conference
Committee.
House Defeats Resolution to Authorize
Investigation
of Motion Picture Industry.
A resolution providing for an investigation of the
motion
picture industry was defeated in the House of
Representatives on May 12 by a vote of 227 to 115, after
Chairman
Warren of the Committee on Accounts charged that
the proposal constituted a "joy ride to Hollywood" which
might cost
taxpayers $250,000. The resolution was introduced
by Representative Sirovich of New York, and had been approved
on
April 7 by the House Committee on Rules. Before
the vote
was taken Representative Sirovich said that billions
of dollars invested in the industry had been "dissipated,
squandered and diverted by a group of financial
manipulators."
Mr. Warren in reply said that if an Investigation
were to be
made it should be conducted by the Department of
Justice
or the Federal Trade Commission, while other opponents
added that the expenditure involved was not consistent
with
the administration's economy program.
Southern Pacific Co. to Receive Two Loans Aggregatin
g
$23,200,000 from Reconstruction Finance Corporation, of Which $1,200,000 Is Work Loan-61,600,000
Additional Loan to Erie RR.— Chicago Milwaukee
St. Paul & Pacific Seeks Loan of $9,000,000 and
Pere Marquette $2,000,000—Loans Previously Approved Aggregating $12,226,000, to New York
Central, Illinois Central, Wabash and Baltimore
& Ohio, Authorized by Reconstruction Finance
Corporation.
The nter-State Commerce Commission on May 9 approved two loans aggregating $23,200,000 to the Southern
Pacific Co. from the Reconstruction Finance Corporation.
One loan for $22,000,000 is for the purpose of taking care of
of its financial obligations for the balance of 1933, such as
meeting the principal of maturing equipment trusts and
paying interest on its funded debt. The other loan to the
amount of $1,200,000 is a work loan, the proceeds of which
is to be used to finance in part the cost of constructing a
new passenger station and other terminal facilities at Houston, Tex, The Commission on April 29 approved a further
loan of $1,500,000 to the Erie RR. from the Reconstruction
Volume
136
Finance Corporation to pay in part, interest due May 1 in
the total amount of $1,686,100. The Commission previously
approved three loans aggregating $13,403,000 to the Erie.
The Chicago Milwaukee St. Paul & Pacific RR. has asked
the Inter-State Commerce Commission's approval for a loan
of $9,000,000 from the Reconstruction Finance Corporation
to pay principal and interest on equipment trust certificates
and interest on bonds, due between July 1 and December 1.
The road previously received a loan of $8,000,000 from the
Reconstruction Finance Corporation. The Pere Marquette
Ry. has asked approval from the Inter-State Commerce
Commission of a plan to borrow $2,000,000 from the Reconstruction Finance Corporation to pay bond interest.
and taxes due on or before July 1 1933. The Marshall Elysian Fields & Southwestern has also applied for the approval
of a loan of $60,000 from the Reconstruction Finance Corp.
The receiver of the Waco Beaumont Trinity & Sabine Ry.
has applied to the Reconstruction Finance Corporation for
a loan of $200,000. Senator Sheppard on May 2 presented
in the Senate a resolution adopted by the Texas Legislature
requesting the Reconstruction Finance Corporation to grant
and the Inter-State Commerce Commission to approve a
loan of $5,150,000 to enable it to complete its project. Last
year an application was filed for a loan of ,983,000 but
after the Commission had failed to approve this repeated
revised applications have been filed for smaller amounts.
The Reconstruction Finance Corporation on April 27
announced that it had authorized loans, previously approved
and recommended by the Inter-State Commerce Commission,
totaling $12,226,000 to the New York Central, Illinois Central, Receivers for the Wabash and the Baltimore & Ohio.
The authorization to the New York Central was for $7,000,000 to be used in the payment of a like amount.of Boston &
Albany4%improvement bonds, maturing May 1 1933. The
authorization to the Illinois Central was for $2,500,000 to
meet interest and equipment trust maturities coming due
May 1 1933. The authorization to the receivers of the
Wabash was for $1,226,000, for the purpose of paying interest on prior lien bonds, due May 1 1933. The authorization to the Baltimore & Ohio RR. was for $1,500,000 to
discharge principal of equipment obligation.
Details in connection with the loans now approved follows:
Erie RR.
Pi The Erie RR.,on April 8 1933, filed an application to the Reconstruction
Finance Corporation for a loan under the provisions of the Reconstruction
Finance Corporation Act, approved Jan. 22 1932 as amended.
This carrier, on Jan. 28 1932, filed an application under the Act for a
reconstruction loan in the amount of $10.350,000. In that proceeding we
approved a loan of $4,458.000 on Feb. 19 1932. and a further loan of $2,775.000 on May 27 1932. Pursuant to an application filed Sept. 24 1932, we
approved an additional loan of $6,170,000 to the Erie on Oct. 21 1932.
The collateral security for the loans heretofore approved will be discussed
hereinafter.
The Application.
The applicant seeks an additional loan of $1,500,000, for a term of three
years. for the purpose of paying, in part, interest due May 1 1933, in the
total amount of $1,686,100. Request is made that the funds be made
available on or before April 28 1933. The interest and other payments due
between April 28 and May 31 are as follows:
Fixed Charges, Rents, &c.
$1,599,640
Interest on bonds
109,710
Interest on equipment trusts
247,420
Other interest
693,214
Rentals of leased lines and other rents
Total fixed charges, rents, &c
Capital PaytnentsEquipment trust principal payments
Additions and betterments and land purchase-Sinking funds
Total capital payments
Grand total
$2,649,984
$355,000
271,000
228,000
854,000
$3,503,984
During 1932, the applicant obtained three loans, aggregating $2,530.000
from the Railroad Credit Corporation. At this date, the applicant and
thelChicago & Erie RR, have paid a total of $1,903,978.97 to the Credit
Corporation under the "Marshalling and Distributing Plan, 1931."
Necessities of the Applicant.
In our report of Oct. 21 1932 we discussed the applicant's earnings during
the first nine months of 1932, the improvement expected in October of
that year, and the applicant's prediction that a net income of $388,631
during the last four months of the year would be earned. The cash position as of Sept. 11932, was also stated. The complete figures for the year,
now available, show that the applicant's net railway operating income was
$8,830,346, non-operating income $4.274,439, total deductions $16,247.782.
and net income deficit $3.142.997. Although a net income of $3.653,100
was indicated by the applicant's original forecast, it developed that the total
operating revenues failed by $15,500.000 in meeting expectations, and the
net railway operating income was $6,293,354 less than that predicted
notwithstanding a reduction of $8,518,587 in operating expenses.
that, in the
A cash forecash filed with the present application indicates
event no further loans are consummated, a cash deficit will be incurred by
that the emerthe close of July 1933. In this calculation, it was assumed
gency increases permitted by our decisions in Ex Parte 103 would continue
Finance
the
Corporafrom
loans
through the year, and that no repayment of
tion, the Credit Corporation, or the banks would be made. Total revenues
for 1933 are shown at a somewhat lower figure than in 1932, while total
operating expenses are estimated at approximately 550.000.000. as compared with $55,847,813 actual in 1932. The proposed economies extend to
maintenance, transportation, and general expenses.
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Financial Chronicle
Security.
As collateral security for the further loan requested, and in addition to
the collateral already pledged, the applicant offers all or any part of a new
issue of its refunding and improvement mortgage 6% bonds, series of 1932.
due Feb. 1 1962, in the amount of $5,000,000. Authority for such issue
Is sought in an application filed under Section 20 of the Inter-State Commerce Act in Finance Docket No. 9935
The bonds of the applicant heretofore issued under its refunding and
improvement mortgage and now outstanding consist of $50,000,000 of 5%
bonds, series of 1927, due in 1967. and $50,000,000 of 5% bonds, series of
1930, due in 1975. In addition. $30,000,000 of 6% bonds, series of 1932,
have been nominally issued under the mortgage and are pledged as collateral security for loans from the Finance Corporation and the Credit
Corporation.
The total of reconstruction loans approved for the applicant to date is
$13,403.000. These loans are secured equally and ratably by $26,000.000
of Erie refunding and improvement mortgage 6% bonds of 1962, $6.105.000
of first consolidated mortgage general lien 4% bonds of 1996. $2,421,000
of general mortgage convertible 4% bonds of 1953, series D. $217.000 of
general mortgage 4% bonds of 1953, series B, and the bond and mortgage
of the Niagara Frontier Food Terminal, Inc., in the amount of $900.000.
Since Jan. 11933. the market price of the Erie refunding and improvement
mortgage 5% bonds, which are outstanding in the hands of the public.
has ranged between 20% and 34%, and on April 28 was 33%. The price
range of the general lien 4% bonds of 1996 was between 40H and 52.
and that of the convertible 4% bonds of 1953 was between 301 and 453.
the high in each case being reached on April 28. No market value for the
food terminal bonds is available.
Our report of Oct. 21 1932 contained a statement showing by main groups
the applicant's bonds and other fixed obligations in the approkimate order
of their priority. We also stated the sum of the rate-making value found for
the Erie and the Chicago & Erie and the net additions and betterments
reported between valuation date and July 31 1932. Giving effect to
principal payments subsequently made,additional loans, and other changes,
the total of fixed obligations as stated in our previous report is revised from
$330.850,300 as of July 311932. to $334,447,010 as of Feb. 28 1933. The
amount previously stated as the sum of rate-making value and reported
additions and betterments has not materially changed.
The determination of the additional collateral security required from the
applicant will be based on the application of all collateral e4ually and ratably
to all of the loans, and also upon our approval of the issue of an additional
$5,000,000 of Erie refunding and improvement mortgage 6% bonds for the
purpose of pledge with the Finance Corporation. Among other securities.
the applicant holds unpledged in its treasury $572,900, par value, of the
common capital stock of the Lehigh & Hudson River Ry. Co. A majority of
the stock of that company is owned by six connecting carriers, of which the
Erie is one. The Lehigh dr Hudson River is a coal-carrying road, having
approximately 97 miles of main track, and is important to the Erie from a
traffic standpoint.
As the applicant's refunding and improvement mortgage 6% bonds of
1962 are not listed on exchange, their vlaue must be estimated from the
market prices of the 5% bonds issued under the same mortgage and listed.
A relatively small amount of series D bonds is outstanding.
The applicant contends that its earning power under normal conditions
and the character and value of the security offered for the further loan are
facts which can be relied upon to show its prospective ability under normal
conditions to repay the loan and discharge its obligations in connection therewith. During the first two months of 1933, the applicant's net railway
operating income was $949,572 and its non-operating income $684.357.
After appropriate deductions from gross income the result was a deficit of
$1.096,659 in net income. The forecast for the remaining 10 months of the
current year, however,shows a net railway operating income of $11,008.556
and a net income of $1,367,304. In this compilation, non-operating income
is shown as $3,969.671. which includes more than $3,000.000 of dividends
from the applicant's affiliated coal companies. During the year, the applicant will expend $5,423,000 for taxes. $17,462,000 for fixed charges, rents.
etc., and 58,171,000 for capital payments. A considerable amount will
also be spent for additions and betterments.
Conclusions.
We conclude:
1. That we should approve a loan of not to exceed $1,500.000 to the
Erie RR.by the R. F.0.,for a term not exceeding three years from the dates
of advances thereon,for the purpose of paying in part the applicant's interest
obligations due May 1 1933, as hereinbefore shown.
2. That the applicant should pledge with the Finance Corporation, as
part of the collateral security for the loan $5,000,000. principal amount, of
Its refunding and improvement mortgage 6% bonds of 1962. to be issued
subject to our approval, pursuant to authority granted in Finance Docket
No. 9935, together with 5572,900, par value, of the common capital stock
of the Lehigh & Hudson River Ry.
3. That the applicant should agree with the Finance Corporation that all
of the security for this loan and the loans heretofore approved for the applicant shall apply equally and ratably to all of such loans.
Southern Pacific Co.
The Southern Pacific Co., on March 17 1933. filed an application to
the Reconstruction Finance Corporation for a loan under the provisions of
Section 5 of the Reconstruction Finance Corporation Act, approved Jan. 22
1932, as amended.
The Application.
The applicant requests a loan of$22,000,000 for a term not exceeding three
years, to be used for the purpose of paying judgments in connection with
the operation of the Spindletop oil field, principal of maturing equipment
trust certificates, and interest on funded debt. It asks that the proceeds
of the loan be made available to it on the following dates in 1933 and in
the following amounts: May 29, $11,300,000; June 29, $3.200,000; July 28.
$1,100,000; Aug. 30. $1,700,000; Oct. 30. $600.000; Nov. 29. $2,500.000.
and Dec. 29, $1,600,000.
Under even date (May 9) we have approved a work loan of $1,200,000
to the applicant for the purpose offinancing in part the cost of constructing
a new passenger station and other terminal facilities at Houston, Texas.
Our approval was conditioned upon the pledge as security of $2,000,000 of
the applicant's San Francisco Terminal first mortgage 4% bonds of 1950.
and $1,074,000 of Southern Pacific RR. first refunding mortgage 4%
bonds of 1955. No other loans to the applicant under the Reconstruction
Finance Corporation Act have been approved by us.
We have approved loans totaling $19,790,000 by the Finance Corporation to the St. Louis Southwestern Ry. which is controlled by the applicant
through ownership of 87.14% of its capital stock. Total advances, prior to
April 9 1933, on these loans were $18,226,250, of which $790.000 has been
repaid, leaving an unpaid balance of $17,436,250. The applicant has
guaranteed collection of the notes evidencing these loans.
The applicant is a party to the "Marshalling and Distributing Plan.
1931," of the Railroad Credit Corporation and during 1932 paid to it
3466
Financial Chronicle
$1,823,170 of revenues derived from emergency increases in freight rates.
but has neither applied for nor received any loan from that corporation.
Necessities of the Applicant.
The obligations for payment of which the loan is sought are as follows:
Judgments in connection with operations of Spindletop (Texas) oil field,
payable June 1 1933, $6,959,943; principal of equipment trust certificates
maturing $3,026,000 on June 1, $526,000 on July 1, $321,000 on Aug. 1
and $2,100,000 on Dec. 1 1933, or a total of $5,973,000 of equipment trust
maturities; and interest on bonds of the applicant's owned and affiliated
companies due in the amount of $1,314,057 on June 1, $2,674,000 on July 1,
$779,000 on Aug.1,$1,700,000 on Sept. 1,$600,000 on Nov.land $400,000
on Dec. 1 in 1933, and $1,600,000 on Jan. 1 1934, or a total of $9,067,057
of interest obligations.
Secu.ity.
As security for the loan, the applicant offers its promissory notes secured
by the pledge of $19,948,000 of Arizona Eastern RR. 1st and refunding
mortgage 5% bonds, due 1950: $6,859,000 of San Antonio &Arkansas Pass
By. 1st mortgage 4% bonds of 1943; and $9,000,000 of Galveston Harrisburg & San Antonio By., Galveston-Victoria Division 1st mortgage 6%
bonds of 1940. It estimates that the current value of these bonds is
approximately 25% in excess of the amount of the loan requested.
Pursuant to Section 19a of the Inter-state Commerce Act, we tentatively
found the value for rate-making purposes as of various valuation dates from
June 30 1914 to June 30 1920, of the property owned, owned and leased,
and controlled by the applicant and used in common carrier service to be
$717,393,581. Non-carrier property of these three classifications we
tentatively valued at 357,123,406. Net additions and betterments since
valuation date up to Dec. 31 1930, for owned and owned leased property,
and to JI1110 30 1932. for controlled lines, amounted to *448,321.022,
which if added to the values tentatively found for common carrier and
non-carrier property would result in a total of $1,222,838,009. Adjustments by our Bureau of Valuation of additions and betterments reported
by the carriers and included above have not been completed.
During the 10-year period from 1921 to 1930 the applicant earned an
average annual income of $61,805,182 available for interest on funded and
unfunded debt.* During the same period its average annual interest
charges on funded and unfunded debt amounted to i25,372.836. It thus
earned 2.44 times interest charges on an average over the 10-year period.
The applicant's net income was $7,138,372 in 1931 and in 1932 it suffered
a deficit of $5,779,631. In each of these years charges to operating expenses for depreciation amounted to approximately $8,200,000. Interest
on funded and unfunded debt was $30,130,718 in 1931, and $30,207,039
In 1932. The applicant estimates that its fixed charges in 1933. 1934 and
1935 will approximately equal those for 1932. Non-operating income,
which amounted to $20,635,954 in 1932, is estimated at $19,343,600 in
1933, 514,402,200 in 1934 and $14,404,300 in 1935.
Dividends of 6% on the applicant's common stock were declared and
paid in each of the years 1921 to 1931, inclusive. In January 1932, a
quarterly dividend of 1% was paid. None has been declared since.
On the basis of assumed railway operating revenues 15% below those
received in 1932, the applicant estimates that its cash requirements for
1933 will exceed its receipts by $31,599,463. It has arranged for additional loans from bankers totaling $9,500,000, and if the loan hereunder
consideration is approved, and there is no further decline in revenues, it
should be able to meet its obligations during 1933.
The applicant has equipment obligations maturing in each of the years
1933. 1934 and 1935 in the amount of $7,736,600 and S6,299.000 in 1936.
Principal maturities of funded debt will amount to $3,486,500 in 1933,
$3.368,500 in 1934, $6,603,000 in 1935 and in 1936,$525,000.
In addition to the securities offered as collateral for the loan applied for,
the applicant holds, among others, $12,000,000, par value, of the common
capital stock of the Pacific Fruit Express Co. and $5,027,000 of El Paso
& Southwestern RR. first and refunding gold 5% bonds of 1965.
The Pacific Fruit Express Co. owns approximately 41,000 refrigerator
cars which it operates on the lines of the applicant, the Union Pacific RR.
and the Western Pacific RR. It also owns sundry ice plants, ice ponds
and storage houses. As of Feb. 28 1933. its balance sheet showed investments of $117,130,084 in physical property and $400 in bonds. Current
assets were $27,354,702, including cash and special deposits amounting to
$25,265,856. Deferred assets were $1,893,563 and unadjusted debits
$487,365. The special deposits include *12,449,034 owed to the Express
company by the applicant. As of the same date the liabilities consisted of
capital stock of $24,000,000, owned jointly by the applicant and the Union
Pacific RR., funded debt of $25,797,000 consisting of unmatured equipment obligations, current liabilities of $7,944,371, deferred liabilities of
52,937,490, unadjusted credits of $62,176,732, and corporate surplus of
E24,010,521.
During the five year period from 1928 to 1932 the Express company
earned average annual net income of $15,802,237. During the same
Period interest on its funded debt averaged $2,048,175 annually. Its net
income in 1932 was $14,570,273 and its interest on funded debt *1,501,597.
No sales are available as a basis for appraising the stock of the Express
company. In 1932 a dividend of 70% was paid on this stock.
The El Paso & Southwestern RR.Is controlled by the applicant through
ownership of all outstanding capital stock, and is operated under lease as
a part of its system. Its property extends from Tucson, Ariz., to the
Texas-New Mexico State line, and forms an alternate route in the applicant's transcontinental line through Arizona and New Mexico. It consists of approximately 425 miles of main track and 100 miles of yard tracks
and sidings.
The El Paso 1st & refunding mortgage 5% bonds of 1965 are secured by
a mortgage carrying a first lien on all of the property of the El Paso. Bonds
are authorized in the amount of $50,000,000, of which $8,397,000 are issued
and outstanding. The bonds are listed on the New York Stock Exchange.
During the period from Jan. 1 1927 to date their price has ranged from a
high of 109( in 1928 to a low of 61 for the last reported sale in February of
the current year.
The bonds of San Antonio and the Galveston offered by the applicant
as security for the loan applied for are secured by mortgages resting on
properties which do not constitute important links in the applicant's main
line. The property of the Arizona Eastern constitutes an alternate transcontinental route. All three properties represented by the bonds offered
are traffic feeders to the applicant's system. It is desirable that the security
for a loan of the amount here under consideration should include collateral
resting upon important main-line properties and should be diversified as
far as possible by the inclusion of securities of corporations which would
occupy a strong Position in the event of a reorganization of the applicant.
It is our view that the available stock of the Express company and bonds of
the El Paso should be included in the collateral securing this loan.
Conclusions.
We conclude:
1. That we should approve a loan of not exceeding *22,000,000 to the
applicant by the Finance Corporation,for a term not to exceed three years,
*Not including $3,648,602 received In 1931, credited to United States Government Guaranty, and $852,741 credited to standard returnsAyears 1921 and 1922.
May
20
1933
• to be used for the purposes of paying judgments, principal and interest
of maturing equipment trust certificates, and interest on funded debt as
hereinabove set forth, the proceeds of the loan to be advanced to the
applicant as the obligations for payment of which it is approved become due:
2. That the applicant should deposit with the Finance Corporation as
collateral security for the loan $12,000,000. par value of the capital stock
of the Pacific Fruit Express Co., $12,800,000 of the Arizona Eastern RR.
let and refunding mtge. 5% bonds of 1980, $4,737,000 of the El Paso &
Southwestern RR. 1st and refunding 5% bonds of 1965, and $9,000,000 of
the Galveston Harrisburg & San Antonio By., Galveston-Victoria Division.
1st mtge. 6% bonds of 1940:
3. That before any advance is made upon the loan, the applicant should
agree that during the life of the loan it will not permit any reorganization
of the Pacific Fruit Express Co., or any changeln the corporate relationship
existing between it and the said company on the date of the filing of the
application in this proceeding;
4. That the applicant should agree with the Finance Corporation that
all collateral pledged as security for the loan herein conditionally approved.
the loan of *1,200,000 on this date approved for the applicant, and any
loans to the applicant which may be hereafter approved,shall apply equally
and ratably as security for all ofsuch loans.
Commissioner Eastman did not participate in the disposition of this case.
Southern Pacific Co."Work Loan."
The Application.
The applicant requests a loan of $1,200,000 for a term of not exceeding
three years, to be used for the purpose of constructing a new passenger
station and terminal facilities at Houston, Tex. The loan is proposed by the
applicant with a view to increasing employment and stimulating business.
It estimates that the construction of the facilities will furnish 701,312
man-hours of employment in more than 20 crafts, in addition to employment in the industries with which orders will be placed.
Proceedings have been instituted by us for the determination ofthe
amount of the recapturable income of the Arizona & New Mexico By.,
the Franklin & Abbeville By. and the Day ton-Goose Creek RR., received
in years prior to assumption of control of these companies by the applicant
and operation of them as part of its system. No order has been entered
by us in any of the proceedings. No payment has been made by or for
the account of the first two companies. The Dayton-Goose Creek By.
has paid $183,127.38 to us on account of recapturable income received
prior to the applicant's acquisition of control of that company. The applicant asserts that the former owners of the stock of the Franklin & Abbeville
RR. and the Dayton-Goose Creek By. are bound to pay any sum found
to be lawfully due from these companies as a result of these proceedings.
Necessities of the Applicant.
The Houston & Texas Central RR, and the applicant, through its subsidiary, the Texas & New Orleans RR.,lessor of the property of the former
company,on July 17 1929,entered into a contract with the City of Houston,
Tex., providing for the construction of a new passenger station and other
terminal facilities at Houston,for the relocation or closing of certain streets,
rearrangement of street car lines, change in the channel of waterways, and
construction of subways to carry city streets under the proposed railroad
facilities. The applicant agreed to acquire certain lands needed for the
project and to convey to the city a portion for proposed new streets and
parks. The city agreed to pass the ordinances necessary for the improvements, relocate the streets and car tracks and construct the subways.
Joint participation in the coat of certain grade separation work was agreed
upon.
On the date of the application the parties had satisfied substantially all
of covenants under the contract excepting the construction of the passenger
station and improvement of the terminal facilities. Proposed new streets
have been constructed by the city at an expense in excess of $1,000,000.
Expenditures by the applicant up to Dec.311932,amounted to $1,184,576,
representing cost of land acquired, sewer work, contribution to the construction of undergrade crossings for streets, architects' fees, and assessments for improvements. The applicant estimates that the cash expenditures necessary for completion of the program to which it is committed
will amount to *1,141,753, all of which it is obligated to pay without contribution by the city. The loan is requested for the financing of this work.
It estimates that a construction period of 15 months will be required for
completion of the project, after the date of award of the general contract.
The applicant proposes the construction of a four-story modern fireproof
station building. Will also construct a new combination storehouse and
oil house, toilet and locker room, power plant building and a small shelter.
Existing pullman facilities, ice house, battery charging plant, telegraph
repair plant, gas compressor house and section house will be retained in
service, but will be moved to new locations and remodeled and repaired.
A passenger subway will be constructed affording access to the passenger
train tracks directly from the station concourse. Ten tracks will be provided to serve the station train yard, eight of which will be protected by
"butterfly" shed protection. In addition there will be two through tracks
and nine coach yard tracks, making a total of 46,000 lineal feet of track.
Passenger tracks will be served by concrete platforms. The applicant plans
to let contracts for all of the construction work, excepting track work and
preliminary work consisting of paving, grading,sewer extension and removal
of buildings. The preliminary work will be performed under small contracts or by railroad forces, whichever is most economical. The track
work either will be constructed by the railroad company forces or under
contracts which provide that the railroad shall furnish the material.
The applicant's estimate of the cash cost of completing the work on
the project includes the following items:
Cost of property and of clearing site and removing train shed
$16,224.13
and buildings
23.300.00
Engineering and architects fees
136,318.92
Station and coach yard tracks
50,058.71
Passenger subway and ramps
16,211.80
Grading
120,402.48
Paving, platforms, &c
98,218.58
Train sheds
42,919.01
Drainage
479,587.86
New passenger station
24,977.78
Miscellaneous buildings and facilities
20,519.40
Furniture and fixtures, including dining room equipment_ _ _ 14,482.92
Power plant and equipment
37,488.85
Water,steam, air and gas lines, including pipe tunnels
33,195.01
Miscellaneous mechanical and electrical equipment
27.847.63
Interest during construction
Total estimated cash cost
$1,141,753.08
Security.
As security for the loan, the applicant offers its promissory note secured
by the pledge of $2,000,000 of Arizona Eastern RR. 1st & refunding mtgr,
5% bonds, due 1950. The bonds are guaranteed by the applicant as to
payment of both principal and interest.
Volume 136
Financial Chronicle
It appears of record that among the securities owned by the applicant
and its subsidiaries are 32,618,000 of the applicant's San Francisco Terminal
1st mortgage 4% bonds of 1950, of which the applicant advises that $2,000,000, principal amount is available for pledging as collateral for the loan
sought, and $1,074,000 of the 1st refunding 4% mortgage bonds of 1955
of the Southern Pacific RR.
The San Francisco Terminal bonds are secured by a mortgage carrying
a first lien on approximately 12 miles of railroad extending from San Bruno,
Calif., to San Francisco, Calif., together with over 100 miles of sidings and
spur tracks and 700 acres of land with power house, shops, engine houses,
warehouses and improvements situated thereon. The issuance of $50,000,000 of bonds is authorized under the mortgage. On Dec. 31 1932.
630,785,300 had been issued, 624,833,300 of which were in the hands of
the public and $5,952,000 were held in treasury. The bonds are listed on
the New York, London, Amsterdam and Frankfort Stock Exchanges.
During the period from j927 to date the price ranged from a high of 98%
In 1931 to a low of 59% in 1932. They are selling currently (May 2 1933)
at 71.
The Southern Pacific RR. Co. is controlled by the applicant through
ownership of all of its capital stock. The property is leased and operated
by the applicant until Dec. 31 1951, at an annual rental of $10,000, the
lessee paying, out of the earnings and income, all operating expenses,
interest and other fixed charges and, in addition, paying the lessor a percentage of the profits.
The applicant by endorsement guarantees the payment of principal and
interest of the bonds. They are listed on the New York, San Francisco
and Amsterdam stock exchanges. Their price on the New York Exchange
has ranged from a high of 98% in 1926 to a low of 50 in 1932. They are
selling currently (May 2 1933) at 66.
We are of the view that inasmuch as these bonds of the San Francisco
Terminal and the Southern Pacific RR. Co. are secured by first liens on
Property forming an important part of the applicant's operating system
they should be pledged as collateral for this loan.
Conclusions.
We conclude:
1. That we should approve a loan of not exceeding $1,200,000 to the
applicant by the Finance Corporation, for a term not to exceed three years,
to be advanced to the applicant in instalments in reimbursement of reasonable cash expenditures hereafter made by it for the construction of a new
passenger station and other terminal facilities at Houston, Tex., as hereinbefore described;
2. That before each advance upon the loan, the applicant should deposit
with the Finance Corporation and with us a verified statement of cash
expenditures hereafter made by it in connection with the construction of
said passenger station and terminal facilities;
3. That no advances should be made upon the loan in excess ofsuch total
cash expenditures reported to the Finance Corporation and to us;
4. That no advance should be made upon the loan in reimbursement of
expenditures for work performed or for materials purchased prior to the
date of approval of this loan;
5. That before seeking reimbursement for expenditures made in settlement with contractors for work performed or materials furnished in connection with the construction of said improvements, copies of all contracts
under which said settlements were made should be submitted to us;
6. That the applicant should pledge with the Finance Corporation as
security for the loan, $2,000,000 of the Southern Pacific Co., San Francisco
Terminal 4% bonds of 1950, and $1,074,000 of the Southern Pacific RR.
1st refunding mortgage 4% guaranteed bonds of 1955.
Commissioner Eastman did not participate in the disposition of this case.
British Treasury Opposes Buying of Stocks Abroad—
Notice Reported Inspired by Transaction in Shares
of Boots Pure Drug Co.
The following London cablegram May 17 is from the New
York "Times":
Inspired by a recent transaction in shares of the Boots Pure Drug Company, Ltd., the British Treasury issued to-night a notice that it was not
In the public interest that large blocks of securities, including those dealt
in on the London Stock Exchange, should be purchased from foreign holders
with a view to their sale here by public issue or otherwise.
The Treasury's view met opposition in financial quarters, where it is
contended that the repurchase of American-held shares of an English company is not a transaction in a foreign issue in the ordinary sense and that
certain important trade and other advantages will accrue to Great Britain
as a consequence of such purchases.
Important Changes in Chase National Bank Organization—Board Membership Reduced from 72 to 36—
Dissolution of Securities Distributing Affiliate,
Chase Harris Forbes Companies—Board Membership of Chase Securities Corp. Reduced.
Shareholders of the Chase National Bank and Chase
Securities Corp., of New York, at special meetings held
May 16 voted their approval of recommendations recently
made by their respective boards of directors which will
result in important changes in the Chase organization.
Outstanding among these changes were reductions in the
boards of directors of both the bank and securities corporation, removal of the Chase National Bank and its affiliates
rom the general business of investment banking save as
provided by the National Bank Act, and dissolution of the
wholly-owned securities distributing affiliate, the Chase
Harris Forbes companies.
In the case'of the Chase National Bank, the board is
reduced from 72 to 36 members, while the board of the
Chase Securities Corp. is reduced from 30 to 10 members.
The announcement regarding the changes acted upon at the
meeting on May 16 said:
To-day's meetings consummated plans that had been under way since
March 8, when Winthrop W. Aldrich, Chairman of the Governing Board
and President of the bank, in a public statement expressed views in favor
general business of investment
of peparating commercial banking from the
banking. He at that time disclosed that the Chase had for some while
previously been giving serious consideration to the question of severing
3467
connection with its security affiliates and of limiting its future participation in investment banking solely to handling obligations of the United
States Government and such other securities as are permitted by the
National Bank Act. Following his public statement of March 8, Mr.
Aldrich issued a formal statement on April 5, addressed to the Chase
shareholders, in which the definite program that was acted on to-day
was outlined.
Action of the Chase shareholders to-day coincided with yesterday's
introduction into the Senate of the Glass banking measure, which is designed to bring about nationally certain of the changes now made effective
at the Chase. The total vote cast by Chase shareholders to-day, both
directly and by proxy, while not disclosed, manifested a predominating
sentiment in favor of the proposals.
Shareholders of the bank met first, at 12 o'clock noon; the securities
corporation meeting was at 3 p. m. The bank meeting considered a single
proposal; namely, reduction in the membership of the bank's board o
directors. Shareholders ratified the proposal that the number of directors
be reduced from 72, at which it had stood since the annual meeting, to 36
Upon conclusion of the balloting, announcement was made that reduction
in the size of the board will become effective at once, one-half the membership having agreed immediately to withdraw, leaving 36 members to
continue the terms for which they had been selected. Following is a llst
of the men who are to constitute the bank's directorate for the remainder
of the presem year:
Henry 0. Havemeyer
Winthrop W. Aldrich
Arthur G. Hoffman
Charles S. McCain
Ralph C. Holmes
John McHugh
L. Ir. Loree
Vincent Astor
Thomas N. McCarter
Gordon Auchincloss
Albert G. Milbank
Earl D. Babst
Jeremiah Milbank
Howard Bayne
George M. Moffett
Francis H. Browner
Joseph D. Oliver
Henry W. Cannon
Thomas I. Parkinson
Newcomb Carlton
Samuel F. Pryor
Walter S. Carpenter, Jr
Andrew W. Robertson
Malcolm G. Chase
Ferdinand W. Roebling, Jr.
Edward J. Cornish
Charles M. Schwab
Bertram Cutler •ad
Robert C. Stanley
Thomas M. Debevoisi
Cornelius Vanderbilt
Franklin D'Olier
George P. Whaley
Frederick H. Ecker
Henry Rogers Winthrop
Edward H. R. Green
"It is with regret that we shall lose the intimate association
of those who in a spirit of co-operation have voluntarily
withdrawn from the board," said Mr. Aldrich, "but we, of
course, know that their good will and support will remain
and may be counted on in the future." It was recalled
this week that Mr. Aldrich, in his views given to the newspapers on March 8, stated that boards of directors of commercial banks should be limited in number so as to be
"sufficiently small to enable the members to be actually
cognizant of the affairs of their banks, and in a position
really to discharge their responsibility to shareholders,
depositors and the business community."
The bank's announcement of May 16 is further quoted
as follows:
The board of the Chase National Bank, as constituted during the past
few years, was an outgrowth of the series of mergers which took place
between the Chase and other banks from 1926 to 1930. Prior to 1926 the
Chase board numbered 20 members. At the close of 1930 the number had
risen to 85.
It wa— learned that a number of the senior Vice-Presidents of the bank.
previously directors, have been added to the Governing Board of the bank.
This Governing Board now comprises the following officials:
James T. Lee
Winthrop W. Aldrich
Reeve Schley
Charles S. McCain
Carl J. Schmidlapp
JohntMcHugh
Lynde Selden
H. D. Campbell
Sherrill Smith
Maurice H. Ewer
In connection with the changes in the board of the bank, the following
directors who resigned were elected to-day to the board of the Equitable
Trust Co.„ which is affiliated with the Chase National Bank: F. R. Coudert,
Paul D. Cravath and Charles G. Meyer. There was also added to the
boa=3—John D. Rockefeller, 3rd. The Equitable Trust board is now
composed as follows:
Charles G. Meyer
Winthrop W. Aldrich
Albert G. Milbank
Gordon Auchineloss
Milbank
Jeremiah
Bayne
Howard
Thomas I. Parkinson
Kenneth Budd
Lyman Rhoades
F. It. Coudert
John D. Rockefeller, 3c:
Paul D. Cravath
Reeve Schley
Bertram Cutler
George E. Warren
Debevoise
Thomas M.
Henry Rogers Winthrop
Charles Hayden
At the 3 o'clock meeting of Chase Securities Corp., shareholders voted
favorably on a series of five proposals as follows:
(1) They voted to amend the Certificate of Incorporation so as to eliminate the power of distributing securities to the public.
(2) They voted to authorize the immediate liquidation of the business
of Chase Harris Forbes companies, all the capital stock of which is held
by Chase Securities Corp., and the sale or liquidation of all of the underlying
Harris Forbes companies.
(3) They voted to change the name of the Chase Securities Corp. by
eliminating the word "Securities" therefrom.
(4) They voted to reduce the number of directors of Chase Securities
Corp. from 30 to 10, and to amend the By-Laws by decreasing from 10
to five the number necessary to constitute a quorum.
(5) They voted to reduce the par value of each of the share: of the
capital stock of Chase Securities Corp. from $5 to $1. thereby reducing
the amount of the capital stock of the corporation from 637,000,000 to
$7,400,000.
Following the affirmative action of shareholders, it was announced that
Prompt steps will be taken to make effective the various proposals involved. The Chase Corp., under its new name, will continue by identity
of stock ownership to be 'affiliated with the Chase National Bank, but
its activities will be limited to holding and administering its remaining
investments until appropriate disposition can be made of them.
Involved in the reduction of the corporation's capital stock to $7,400.000
is an elimination of all elements of good will from the corporation's assets,
including the valuable good Win of American Express Co., ss% of whose
stock Is owned by the Chase Corp., and an adjustment to current market
prices of the value of its general portfolio and a conservative valuation
of its remaining assets. When these are completed the corporation will
show net assets in excess of $14,000,000.
Reduction in the number of the Chase Corp. board from 30 to 10 will
be brought about by the same means as that used by the bank, namely.
voluntary withdrawal of a group of former directors. The director
3468
Financial Chronicle
who will constitute the Chase Corp.'s board for the remainder of the year
are as follows:
Harry M. Addinsell
i John R. Macomber '
Reeve Schley
Winthrop W. Aldrich Charles S. McCain I
Carl J. Schmidlapp
Robert L. Clarkson
John McHugh
Frederick P. Small
Bertram Cutler
With reference to the liquidation of the Chase Harris
Forbes companies, it was learned after the meeting on
May 16 that this will be earned out under the direction of
John R. Macomber and Harry M. Addinsell, now respectively Chairman of the Board and President; these
executives, with a group of the present officers, will continue
in their present positions and will thus assume the responsibility of winding up the affairs of what was the securitydistributing affiliate of the Chase. They will temporarily
retain a staff for their purpose, but this will not be large.
Trial of Charles E. Mitchell, Former Chairman of
National City Bank, on Charges Alleging Federal
Income Tax Evasion—Sale of Shares by Mr. Mitchell
to His Wife Defended by Banker's Counsel—No
Record It Is Said of Transfer Shown on Books of
J. P. Morgan & Co. Recording Mr. Mitchell's
Account.
With the opening of the trial this week of Charles E.
Mitchell, former Chairman of the National City Bank of
New York,on charges alleging evasion of the Federal income
tax in 1929 and 1930, George Z. Medalie, United States
Attorney, prosecuting the banker, outlined before a jury in
the Federal Court in New York on May 16 the three main
points of the indictment against the former chairman of the
National City Bank. The New York "Evening Post" of
May 16, in which this was stated, went on to say:
May 20 1933
"Charles E. Mitchell was not so supreme as he once was. He met
with
resistance from the directors of the National City Co. The directors of
the
National City Bank were asked to participate in the discussions.
"It was pointed out to Mr. Mitchell that he did not own the stock on
which
he claimed the company should stand the loss, that it had been
sold by
him. It was his wife's. So he reinstated himself as owner on
paper.
Another little sham was perpetrated when he bought it back.
"In that letter to her, offering to buy the stock back at 212, the
Price
she was supposed to have paid for it in the pretended sale, he
mentioned
a claim on the National City Co. That was a deceit, for no such claim
had
been mentioned in the letter he wrote to Mrs. Mitchell when the stock
was
being transferred to her."
"What he said to the National City Co.," Mr. Medalie declared, "was
that if they would pay Morgan they could have his stock and all would
be
square. The shares were then worth about $40.
Second Part Summarized.
The second part of Mr. Medalie's address, dealing with the
transaction
by which he showed a loss in 1930, was, in summary:
Mr. Mitchell had a conference with his friend, Mr. Ryan, Mr.
Mitchell
had 8,500 shares of Anaconda which had cost $988,000.
It was arranged, and so done, in December of 1930, that the
Mitchell
stock should be bought by Mr. Thornton. Mr. Thornton
already had
17,000 shares of Anaconda, owned it outright. It was with Hornblower
&
Weeks, brokers.
Mr. Mitchell's stock was held as collateral by J. P. Morgan & Co., along
with his National City stock. The Morgan firm was not notified
of the
sale of the shares to Mr. Thornton.
When the stock reached a price in May of 1931
that at
which the sale had been made,it was sold back. Mr.approximately
Mitchell's accountants
and Mr. Thornton's accountants figured out what the price shorld
make up the difference between the dividends of the stock and the be to
interest
for the Morgans. That difference was against Mr. Mitchell,
so he paid
26% for the stock he had sold at 27.
Mr. Medalie opened his address to the jury in a packed courtroom,
when
the trial went into its third session at 10.30 a. m. to-day, and
concluded
at noon.
The trial, held in the largest court room at the Federal Building,
opened
with an announcement from a deputy marshal that the doors were
to be
locked and no one admitted or permitted to leave the room.•
Judge Goddard, insistent on quiet at a trial requiring great concentration
to follow, would not permit even newspaper men to leave their seats,
and
their copy was passed through a crack in the door to messengers.
The dropping on May 15, without
explanation of four
The sale, at a loss, in 1929 of 18,300 shares of National City Bank stock
members of the jury which had been selected for Mr. Mitby Mr. Mitchell to his wife, was "a sham and a pretense," he said, and can
be proved so.
chell's trial on May 11, was reported in the New York
The loss, Mr. Mitchell charged off in income tax. But, said the prose"Times" of May 16, from which we also quote:
cutor. Mrs. Mitchell lacked the funds to buy the stock when it, supposedly,
In their places four others were selected after questioning had
was sold to her—had only $941.000 as against a $3.874,000 cost price.
satisfied
counsel for the government and for the defense that those chosen had
J. P. Morgan & Co., in whom the actual possession of the stock was
no
connections
that
prejudices
would
or
disqualify
them. Two alternate
vested, was not informed of the transaction, Mr. Medalie said.
jurors also were selected.
And "so unreal was the transaction that no one took the trouble to affix
The Revised Jury List.
the ordinary tax transfer stamps to the stocks."
The full jury list as revised follows:
Second Transaction Described.
James K. Campbell, consulting engineer, of 110 West Fortieth
Street,
The second transaction named in the indictment—sale, at a loss charged
foreman.
off on income tax—of Anaconda Copper stock to W. D. Thornton, presiCharles Street.
clerk.
Daly,
Charles
84
dent of the Greene Cananea Copper Company, was equally spurious, Mr.
Edmund J. O'Connell, engineer, 63 East Ninety-fifth Street.
Medalle said.
William A. McGrath, hotel manager, of 2006 Amsterdam Avenue.
"John D. Ryan, president of the Anaconda Copper Company, was a
John
H. Hathaway, traffic manager, Briarcliff Manor, N. Y.
close friend of Mr. Mitchell," he explained. "The president of the Greene
Thompson, publicity, of Old Middletown Road, Manuet, N. y.
Arthur
Cananea Copper Company,a subsidiary of the Anaconda Copper Company,
F. Barnard O'Connor, civil engineer, 876 Park Avenue.
was Mr. Thornton.
John J. O'Connor, general contractor, 436 East 141st Street. the
"It was arranged that Mr. Thornton was to buy this stock from Mr.
Bronx.
William Muir, buyer, of Hartsdale Gardens, Hartsdale, N.
Mitchell without putting up a cent or ever owning the stock. Charles E.
William F. Low, manager, 595 Madison Avenue.
Mitchell was both buyer and seller of the stock. Mr. Thornton no more
Louis G. Adams, architect, 544 East Eighty-sixth Street.
counted in that transaction than did the King of Siam."
Nathan Wallace, fur merchant, 637 East Sixth Street.
Both the National City Bank stock and the Anaconda were repurchased
Alternate Jurors,
by the banker.
Cites Bonus of $666,666.
Emil D. Bartels, contractor, of 202 West 180th Street.
Malcolm Austin, agent, of 785 West End Avenue.
Of the third point, a bonus of $666,666.67 paid to Mr. Mitchell from the
The four new members of the jury are Messrs. Campbell, the
National City management fund and not reported on his tax return, said
foreman:
McGrath, Thompson and Muir. They replace bider Amster, the original
Mr. Medalle, it was income,"but, by an involved process of subterfuge, he
foreman, a coffee merchant, of 353 Fort Washington Avenue; John
pretended it never was income."
S.
Taber, an executive of the Bradstreet Company, 11 Mendota Avenue,
Throughout the whole of the first session Mr. Medalie talked to the jury
Rye;Jerome P. Corvan, garage owner. 151 Wallace Avenue, Mount Vernon,
in a tone but little above that of ordinary conversation. He went through
and Edward B. Nisbet, purchasing agent, of 49 East Ninety-sixth
the outllne of his case without interruption from Max D. Steuer, defending
Street.
Mr. Mitchell.
Jurors Dropped "by Consent."
Stoner,
Mr.
in fact, looked bored through most of it and at no time
Goddard,
W.
Henry
United States Attorney George Z.
Federal Judge
appeared to be following the address closely. Unlike his attorney, Mr.
Medalie and Max D. Stetter, counsel for the defense, all declined to
Mitchell never took his attention from the speaking prosecutor and the
give
dropping the four jurors except to say
any
explanation
further
for
faces of the jurors, in the selection of which he took an active part.
that It
was done"by consent." Not only his attorney, but Mr. Mitchell consented
Mr. Medalie divided his opening address into three general parts—the
to the action. He and Mr. Stotler engaged in a long conference with Mr.
sale of stock to Mrs. Mitchell to avoid tax payment for 1929 income, the
Medalie in an anteroom before the case was called at 11:40 a. in.
sale to Mr. Thornton for the same purpose in 1930 and the failure to place
When Judge Goddard opened court he called the lawyers and the dethe receipt of $666.666 87 from the management fund of the National City
fendant to the bench and took part in a conversation with them that was
Company.
not audible to the courtroom at large. On his order the court clerk then
Point Takes Up Two Hours.
announced that the four jurors had been excused.
It required two hours for Mr. Medalie to explain the first point to the
Mr. Amster, it was recalled, had said on Thursday during the examinajury. He maintained that he would prove by evidence to be offered later
tion into his qualifications that he had been "caught in the Bank of United
that tax payment in 1929 was avoided in the following manner:
States," but that he did not hold any prejudice against banks or bankers
In Oct. 1929, Mr. Mitchell took possession of 28,000 shares of National
in general for that reason. Mr. Steuer was the special prosecutor in the
City Bank stock from the National City Company. The aim was to peg
trial of officers of that bank.
a falling price. To do that he borrowed $6,000,000 from J. I'. Morgan &
The new jury was sworn in about 1 o'clock, whereupon the case was
Co., putting the stock up as collateral. The stock cost an average of $367
adjourned until 10:30 o'clock this morning, because of a heavy calendar
a share.
of ether cases for disposal by Judge Goddard yesterday afternoon.
On December 10 of that year he wrote a letter to Mrs. Mitchell and
Robert Thayer of the law firm of Colonel William J. Donovan explained
received one in reply saying she bought from him 18,300 shares.
yesterday that he sat at the counsel table on Thursday (May 11) not as
No money passed. The Morgans, who held the stock, were not notified.
one of Mr. Mitchell's attorneys, but as counsel for one of the witnesses
No transfer tax stamps were put on the shares. Mrs. Mitchell possessed a
in the case. Mr. Thayer appeared for Mr. Mitchell the night he was
personal fortune of $941,000 and so could not have bought it outright.
arrested,
She had never before had a margin transaction. The income from the
On May 16 (we quote from the "Times") Max D. Steuer,
shares continued to go toward paying interest on Mr. Mitchell's loan from
the House of Morgan. Mr. Mitchell paid, in the form of enormous gifts
counsel for the defense, not only justified Mr. Mitchell's
to Mrs. Mitchell on any anniversary and sometimes on none, to make up
stock sales as legally and moray proper and of a type upthe difference between income from the shares and interest due the Morgans
on them.
held by a decision of the United States Supremo Court, but
A memorandum will be offered in which it appears he believed money
also
portrayed the banker in the role of a once rich man who
was still due her in addition to payments and debts.
had ruined himself for the noblest of motives and is now a
In 1932 Mr. Mitchell went to the National City Co. and asked them to
buy back his stock, but by that time his activities were under scrutiny and
poor man, "threadbare.
'and suffering like everybody else
the company objected that he had sold the stock to Mrs. Mitchell already,
from the effects of the depression. The "Times" (in its
so he had it transferred back to himself at the same price he had transferred
May 17 issue), went on to say:
it to her.
Repurchase of Stock Told.
Says Mitchell Lost $25,000,000.
"Business was not so good in 1932, as you gentlemen know," said Mr.
According to his lawyer, Mr. Mitchell has lost his personal fortune
point.
"The
idols of 1928 and 1929 were shattered.
Modelle at that
of from $25,000,000 to $30,000,000, and has pledged all his property,
Volume lie
even to mortgaging his three homes in New York City, Tuxedo and Southampton, as collateral for a $12,000.000 loan from J. P. Morgan & Co..
now reduced to about 86,000,000, which was obtained right after the stock
market crash in 1929, in an effort to maintain the prestige of the National
City Bank.
Mr. Steuer declared that the banker risked his entire personal fortune
but
In 1929 in an effort not only to protect his own banking institution
also the country as a whole from the effects of a sharp decline in values
•
of the National City Bank stock.
of
The lawyer contended that when Mr. Mitchell sold 18.300 shares
deNational City Bank stock to his wife it was not with the purpose of
which
frauding the Government, but merely to avoid the disastrous effects
the open
would have been inevitable if the stock had been thrown into
market under the existing circumstances.
Mr. Steuer said Mrs. Mitchell could have sold at a profit while she
go
owned the stock, except that Mr. Mitchell believed the stock would
He
higher, and wanted her to hold it in order to "make her fortune."
loss
repurchased the stock in a natural desire to protect hfs wife from
according to counsel.
who
In addition to presenting Mr. Mitchell as a man of noble motives,
had been misunderstood, Mr. Stoner struck the note of persecution. Decase
manding why the Government had waited until 1933 to prosecute a
that
which it had investigated in 1931, with apparent satisfaction then
everything was all right, Mr. Steuer said:
"Somebody must be made a victim when mob psychology is in control. Who is to be made the victim—some underling? No, we need
some big fish, so it's Mitchell."
Analyzes Mitchell's Income.
Mr. Medalie said that Mr. Mitchell received about 32,000,000 from the
National City Bank and its company in 1929—$75.000 salary from the
of the
bank. $25,000 salary from the company, $1,160,000 as his share
bank's management fund, and $120,000 interest on the loan of National
City Bank stock, all of which he reported as income, and $666.666.67
from the management fund of the company, which he did not report.
The prosecutor also asserted that Mr. Mitchell made a profit of $780,000
in the sale of other securities, and a profit of $600.000 in the sale of National City Bank stock in 1929.
Late in 1929, according to Mr. Medalle, the banker deliberately set
about devising a plan to wipe out his year's profits in order to avoid paying
an income tax. On Dec. 20, he went on, letters were exchanged between
Mr. and Mrs. Mitchell, "pretending" that he had sold to her the 18,300
shares of the National City Bank stock at $212 a share, which he had
bought the previous October at an average price of $367 a share. By this
means, the prosecutor explained, Mr. Mitchell established a loss of 82,800.000, which wiped out his net income for the year, so that he paid no tax
whatever.
"Mrs. Mitchell didn't put up a penny for that stock," the prosecutor
continued, "and Mr. Mitchell didn't receive a penny for it. So unreal was
the transaction that nobody took the trouble to affix the ordinary transfer
tax stamps. It is our purpose to show that at no time did either Mr. or
Mrs. Mitchell regard this transaction as genuine, and therefore he had no
right to represent that he had sustained this loss."
Says Stock Had Been Pledged.
Mr. Medalie explained that the 18.300 shares were part of a block of
.53,300 shares of the National City Bank stock which was pledged with the
Morgans as collateral for a loan which then amounted to $6,000,000 He
said that the Morgans were not informed of the supposed sale when "these
pieces of paper (the letters exchanged between the Mitchel1s) were juggled
around."
The prosecutor declared that Mrs. Mitchell's net worth at the time of
the alleged sale was $941,000, which was not enough to enable her to carry
a $3,874,000 transaction, With the stock quoted at $212 a share, he went
on, a drop of 50 points would have pauperized her. Her estate was a conservative fund, he continued, and she had never bought on margin or owed
money on any stock.
If Mrs. Mitchell had actually owned the stock, the prosecutor went on,
she would have paid the interest to the Morgans, "but this defendant
actually paid every penny of that interest and Mrs. Mitchell never paid a
red cent."
He explained that the stock was registered in the name of Taft & Co.,
a so-called "nominee partnership," in accordance with a common custom,
and that the dividend checks of $18,300 a quarter were sent to Taft & Co.
He said that Mr. Mitchell wrote to Taft & Co. to pass the dividends on to
Mrs. Mitchell, and that the money nominally went to her account in the
City Bank Farmers Trust Co. However, he went on, instead of being
treated as part of Mrs. Mitchell's regular fund as income, it was transferred
to capital account, so that It could be passed on to Mr. Mitchell and then
to the Mo rgans without the latter firm knowing Mrs. Mitchell's connection.
The Interest payable to the Morgans on the loan covered by the 18,300
shares amounted to $49,000 a quarter—$30,000 quarterly, or $120,000
annually, in excess of the dividends.
According to the prosecutor, Mr. Mitchell made up the difference by
making deposits to his wife's account, the dates and amounts conforming
to the interest payments.
"Gifts of an unusual nature began to pour Into this account," he went
on. "every possible occasion of making a gift of cash or securities was
resorted to.''
These wee e not the ordinary gifts between husband and wife, Mr. Medalie
went on, bu t were sums of $25,000 or $30,000 made first on their wedding
anniversary, then on her birthday, next on his birthday, and finally "when
anniversarie s ran out," gifts without any special reason.
The prosecutor pointed out that Mr. Mitchell obtained a statement from
the trust off icor of the City Bank Farmers Trust Co., showing receipts and
disbursements in Mrs. Mitchell's account for 1931, with a balance due her
of 333,478.18.
"R is quite clear from this," Mr. Modelle continued, "that both parties,
and particul any Mr. Mitchell, regarded the payment of the interest by
Mrs. Mitchell as nothing but a sham and that he was to make up the difference if she paid out more interest than she received in dividends and gifts.
Sure enough, four days after this statement was received, he gave her $25,000
and other gifts later, which wiped out the difference."
Bought Back at $212 a Share.
Me dalie asserted that when the banker repurchased the stock from
around $40 a share,
his wife on March 24 1932, it was selling in the market
the
a
but that the transaction was at the purported price of $212 share,
game price as in the transaction of Dec. 20 1929. Here again, no actual
payment w as made. according to the prosecutor, but letters were exehanged
stating the sale price as $3,924,000, the original price plus interest from
Jan. 1 193 2, to March 24 1932.
Mr. Steller in defending Mr. Mitchell, began by asserting
that the sale of stock to Mrs. Mitchell was frankly an act
on Mr. Mitchell's part to record his losses suffered in trying
3469
Financial Chronicle
to stabilize the market in National City Bank stock after
the stock market crash. He declared that it was a practice
upheld by the United States Supreme Court. The further
contentions of Mr. Steuer will be referred to another week.
Representatives of Mutual Savings Banks to Meet in
Swampscott, Mass., May 24-26.
Savings bankers representing 13,000,000 depositors and
almost $10,000,000,000 of deposits will meet for discussion
in Swampscott, Mass., May 24, 25 and 26. It will be just
13 years since the National Association of Mutual Savings
Banks was organized in Boston, so that the 1933 conference
is in the nature of a home-coming.
Annual Convention of California Bankers' Association
to Be Held at Pasadena May 24-26.
The 42nd annual convention of the California Bankers'
Association will be held at the Huntington Hotel, Pasadena,
May 24, 25 and 26. The announcement states that the
program that has been formulated by the officers of the
association reflects the seriousness of our times and is one
of the most comprehensive and attractive ever arranged for
such an annual meeting. It is an "all California" program
as every speaker is connected in some way with business,
banking or educational circles in that State. The Huntington
Hotel is situated only 10 miles from Los Angeles, and occupies extensive acreage overlooking the city of Pasadena.
The committee is arranging a most delightful program to
supplement the business sessions.
—e—_
t Booklet Issued by
Managemen
Bank
l
Commercia
American Bankers' Association.
A new booklet on internal bank auditing procedure has
been issued by the Bank Management Commission, American
Bankers' Association, in its series on commercial bank
management. A plan of procedure and a simplified form of
monthly report to be used in connection with it, is presented
in the booklet. This procedure coupled with accrual accounting control is believed to be thorough and necessary for the
proper safeguarding of a bank's funds, it is stated in the
introduction. Examples are also given of procedures designed
for fraud prevention. It is pointed out that as each bank
operates under conditions peculiar to its own territory and
itself, the adoption of any one system of auditing procedure
is not likely. However,if the outline as given in this booklet
is studied and adapted by the individual banks, much good
will result, the Commission believes. Copies of this booklet
may be obtained for 25 cents from the Bank Management
Commission, American Bankers' Association, 22 East 40th
Street, New York City.
Suspension of Holidays and Opening of Banks for
Business.
Since the publication in our issue of May 13 (page 3279)
of the bank holidays put in force in the various States, the
following further action is recorded:
DISTRICT OF COLUMBIA.
Organization of a new National bank in Washington,
D. C., to be formed by the union of the Federal-American
National Bank & Trust Co., District National Bank,
Potomac Savings Bank, was officially announced on the
night of May 13 by a joint organizing committee composed
of Edwin C. Graham, President of the National Electrical
Supply Co.(who will head the new institution); John Poole,
President of the Federal-American National Bank & Trust
Co.and Joshua Evans Jr., President of the District National
Bank. Under the plan, which has been approved by the
respective directors of the four banks, 50% of all deposits
in the institutions involved will be made available, or a
sum of approximately • $10,000,000. The statement issued
by the committee—as printed in the Washington "Post" of
May 14,from which also the above information is obtained,—
read, in part:
The intensive work of the conservators and the organization committees
of four banks culminated to-day (May 13) in the formulation of a plan for
the organization of a new National bank. . . .
Mr. Edwin C. Graham, President of the National Electrical Supply Co.,
will head the new bank, he being suggested by the representatives of the
banks and unanimously approved by the Boards of Directors and by the
Treasury Department.
The new bank will have a minimum capital structure of $1,000,000 to
be subscribed by present stockholders and depositors of the respective
institutions and the Washington public. It is not contemplated to request
the Reconstruction Finance Corporation to subscribe to any of the Capital
funds of this new bank.
We quote further from the paper mentioned, as follows:
Plans have not yet been worked out in detail. The name of the new
bank will be decided by the office of the Comptroller of the Currency, but
3470
Financial Chronicle
it is contemplated that its main office will be in the main office building of
the Federal-American National Bank & Trust Co.. at the Southeast corner
of Fourteenth and "G" streets Northwest. Messrs. Graham, Poole and
Evans, members of the joint organizing committee, will form the nucleus
of the official staff of the bank.
Under the plan, there will be made available the maximum amount of
deposits at the earliest possible date. Everything will be done to expedite
the organization of the new bank. The new bank will be organized to do
a general commercial banking business, including savings, trust and safe
deposit service. Its entire assets will be liquid.
Mr. Graham is at present a director of the Federal Reserve Bank of
Richmond, serving in that capacity for the last 12 years. He is a past
President of the Washington Board of Trade and is now President of the
Community Chest. He is a former member of the Board of Education
and is Chairman of the banking and industrial committee of the Fifth
Federal Reserve District. . . .
FLORIDA.
A dispatch by the Associated Press from Ocala, Fla., on
May 12 stated that the Ocala National Bank of that place,
which had been closed since the general banking moratorium
of Mar. 4, would reopen for business on May 15, according
to an announcement by its officials. Officers of the institutioa, it was said, would be as follows: Clarence Camp,
President; H. L. Borland and M. C. Izlar, Vice-Presidents
and Roy V. Ott, Cashier.
GEORGIA.
All but four of the 217 state banks in Georgia, operating
at the time of the holiday of Mar. 3, are now open and doing
business "as usual," Dave M. Parker, Assistant AttorneyGeneral in charge of legal work of the Georgia Banking Department, told the Atlanta Masonic Club on May 10, we
learn from the Atlanta "Constitution" of May 11, whirth
continues:
Parker said that Georgia banks are better off than those of most other
states and banking conditions here above the national average. Sixty
state banks which closed before the holiday are still in process of liquidation, the Assistant Attorney-General added.
ILLINOIS.
Nine Illinois State banks were authorized to reopen by
Edward Barrett, State Auditor, on May 13. The institutions, as named in the Chicago "News" of that date were:
State Bank of Birds; Texico State Bank at Tecdco; First State Bank of
Ozark; Bank of Fowler at Fowler; Farmers' Bank of Ursa; New Holland
State Bank at New Holland; State Bank of Colusa; State Bank of Burnside, and the State Bank of Lima.
The First National Bank of East St. Louis, Ill., which
has been closed since Mar.4, on May 11 announced it would
offer $800,000 worth of preferred stock for sale, in order
that the bank may be reopened. Subscription of this amount
of stock is the condition set for the reopening, according to
the bank's President, Arnold C. Johnson. The St. Louis
"Globe-Democrat" of May 12, from which this is learnt,
went on to say:
Officials of the bank hope to sell the stock by June 1,1f possible. Several
of the large depositors have stated they will subscribe for a part of the
stock, it is said.
The bank, according to its last statement of condition has $7,170,569
resources. Capital is $400,000 and surplus, $492,621. Deposits total
$4.601,851.
The stock would be of $25 par value. The subscription books will be
open in a few days, Johnson said.
Depositors of the First National Bank of East St. Louis,
Ill., were requested to put one-third of their deposits into
preferred stock to strengthen the bank's cash position and
enable it to reopen, in a statement issued on May 14 by 115
depositors of the institution, according to the St. Louis
"Globe-Democrat" of May 15. The stock, it was stated,
is part of an $800,000 issue which the bank is offering to be
redeemed from collections of "frozen" assets. The statement, as printed in the paper mentioned, was as dollows:
"After most critical examination by the national bank examiners and
the Federal Reserve Bank, continuing over a period of many weeks, a
plan has been approved for the reopening of the First National Bank in
East St. Louis, and all that remains to be done for the bank to reopen Is
for the stockholders and depositors of the bank to evidence their acceptance
of the plan.
"The plan involves substantial strengthening of the bank's cash position
by its present stockholders. So far as depositors of the bank are concerned.
It requires what amounts in substance to a waiver upon their parts of onethird of their deposits, by making subscriptions to preferred stock which
provide for 4% dividends to subscribers and which will be assigned to the
bank. Collections which may be made out of those assets of the bank
which are now regarded by the federal authorities as slow or doubtful will
be applied If, as and when made to redemption of the preferred stock.
"The importance of the bank is so great and the improvement in genera
business conditions which will result from its reopening will be so marked
that we cannot too strongly urge upon depositors in the bank the wisdom
of active and full co-operation by them in putting the plan into effect."
The Chicago "Tribune" of May 12 stated that Edward
Barrett, State Auditor of Illinois, the previous night had
issued a permit to the Elizabeth State Bank of Elizabeth,
Ill., to reopen May 12.
Announcement was ma de on May 6 by the State Auditor's
office of Illinois that the Farmers' & Miners' Bank of Ladd,
May 20 1933
Ill., had been authorized to reopen without restrictions, according to the Chicago "News" of that date.
The La Grange State Trust & Savings Bank of La Grange,
Ill., reopened for business on May 13, according to the Chicago "News" of that date. The reopening of the institution
made available immediately 60% of its $2,400,000 deposits.
The rdmaining 40%, protected by slower assets, will be
released as conditions permit, it was stated.
The Chicago "Tribune" of May 14 stated that a plan
calling for release of 70% of deposits and the "freezing" of
the balance is being considered by the First Lake County
National Bank of Libertyville, Ill. The plan is reported to
have the tentative approval of the National bank authorities
in Chicago and is awaiting final confirmation by Washington.
In the meantime, officials are going ahead with the reorganization plans in anticipation of such approval.
The Suburban Trust & Savings Bank of Oak Park, Ill.,
a Chicago suburb, reopened for business on May 17, after
having been closed since the National banking holiday in
March. In indicating the approaching opening of the institution, the Chicago "News" of May 15 said in part:
New capital of $150,000 has been raised and depositors have agreed to
waive payment on 50% of their deposits. When the bank opens it will be
100% liquid.
A Chicago dispatch to the "Wall Street Journal" on May
16, after stating that the reorganized bank would have a
paid-in capital of $200,000 but the amount of surplus had
not then been decided upon, went on to say in part:
Of the capital, $150.000 represents an assessment on shareholders,
according to bank officials. Suburban Trust had total deposits of $570,000
prior to the banking moratorium, and will open with deposits of $370.000
on an unrestricted basis.
The Illinois State Auditor has licensed the First State
Bank of Westmont, Ill., to reopen, according to Chicago
a.dvices on May 16 to the "Wall Street Journal."
Edward J. Barrett, State Auditor of Illinois, on May 13
authorized the following banks to reopen without restrictions,
according to a Chicago dispatch to the "Wall Street Journal":
Western Springs—Western Springs State Bank.
Pulaski—Citizens State Bank.
Rushville—Rushville State Bank.
Allerton—State Bank of Allerton.
Seaton—State Bank of Seaton.
Alpha—Farmers' State Bank,
Alsey—Alsey State Bank.
As of May 15, two more Illinois banks were authorized
by Mr. Barrett to reopen without restrictions, according to
the Chicago "News" of that date, namely the Buffalo
Prairie State Bank of Buffalo and the Farmers' State Bank
of Cullum.
INDIANA.
Regarding the new American National Bank of Indianapolis, Ind., now being organized to succeed the FletcherAmerican National Bank of that city and in which the
directors of the Reorganization Finance Corporation have
authorized the purchase of $1,800,000 of preferred stock,
the Indianapolis "News" of May 12 had the following to
say, in part:
Pending receipt of approved stock subscription blanks from Washington,
announcement is made that pledges are being taken at the Fletcher American
National Bank from those who desire to buy shares in the proposed new
American National Bank, organization of which will involve sale of 100,000
shares of common stock at $18 a share.
Counsel for the reorganization committee of which .I. H. Trimble is
Chairman, was in Washington Friday (May 12) to obtain details of the
conditions of the assistance under which Federal money would be used to
match the subscriptions of those interested in rebuilding the banking
structure. . . .
Depositors of the Fletcher American National Bank, whose deposits
were restricted as of February 25, will receive by mail approved waiver
forms in which they will be asked to waive 50% of their total deposits
and forms on which they may order the converting of their released deposits
into shares in the new bank. These blanks will be forwarded as soon as
they are approved by the Federal authorities.
Members of the reorganization committee, all of whom are directors of
the Fletcher American Bank,express gratification over the interest displayed
in the plans for the new bank, and announce that pledges of stock have
been received both locally and from other cities, one in the sum of $100,000.
The intensified effort to obtair the waivers of 75% of the Fletcher
American depositors and consent of two-thirds of the stockholders to the
reorganization is expected to start Monday (May 15) unless there is further
delay in working out details at Washington.
IOWA.
Des Moines, Iowa, advices to the "Wall Street Journal"
on May 13 stated that D. W.Bates, Deputy Superintendent
of Banking for Iowa, had announced the reopening without
restrictions of three Iowa State banks, namely, the Security
Savings Bank of Eagle Grove, the Exchange State Bank of
Collins and the Gillett Grove Savings Bank of Gillett Grove.
The Onawa State Bank of Onawa, Iowa, was released on
May 12from the provisions of Senate File 111, and following
the signing of waivers, 60% of deposits were released. The
balance has been placed in a trust fund. A dispatch from
Onawa to the Des Moines "Register" on May 13, reporting
the above, added:
that much
Stockholders were not assessed. Officials said they believed continue
prices
of the paper placed in trust will be liquidated soon if farm
their upward swing of the last 60 days.
LOUISIANA.
Concerning the new bank which has been organized to
replace the Lake Charles Savings & Trust Co. of Lake
Charles, La., and which is to be known as the Lake Charles
Bank & Trust Co., a dispatch to the• New Orleans "TimesPicayune"from that place on May 19 contained the following:
filed, proThe charter of the Lake Charles Bank & Trust Co. has been
shares of the
viding for capital stock of $100.000, represented by 10,000
per share, so
Par value of $10 each. All payment for stock to be at $20
to $200,000.
that the total capital and surplusfunds of the new bank amount
George
The incorporators signing the charter were Dr. T. H. Watkins,
Benson
Barbe,
M.
13. Neely, A. W. Mayer, S. W. Maxwell, 0.3. Gill, A.
appointed
Vincent, R. L. Cllne and 0. M. Moss, with the first seven being
meeting of the
to serve as Directors until July 11 1933, when the first
stockholders will be held.
officers: Dr. T.
In their first meeting the Directors named the following
B. Harmon,
H. Watkins, President; George D. Neely. Vice-President; D.
Cashier.
Because of numerous legal details still in process of settlement between the attorneys of the Hibernia Bank & Trust
Co. of New Orleans and the counsel of the local agency of
the Reconstruction Finance Corporation, the newly organized
Hibernia National Bank, which is to replace the old institution, did not open on May 15, as was expected, and its
opening has been postponed indefinitely. An announcement
by the Directors of the new bank, explaining the delay,
(appearing in the New Orleans "Times-Picayune" of May 14):
from
"The following telegram received late Saturday afternoon (May 13)
Willis G. Wilmot, who has been in Washington representing us and who
is one of the Directors of the new bank, confirms the fact that our charter
has been granted, the purchase of the preferred stock has been recommended by the Treasurer of the United States and approved by President
Roosevelt, and the Reconstruction Finance Corporation has definitely
passed the resolution authorizing the purchase of the stock and the carryMg out of the loan agreement.
"Washington, D. C., May 13 1933.
"'Hibernia National Bank,
"'New Orleans, La.
"'Everything here about complete now. The Comptroller has notified
me our charter has been approved. In conformity with regulations letter
has been signed by Secretary of Treasury and approved by President
Roosevelt, requesting Reconstruction Finance Corporation to buy $1,500,000 preferred stock. The Reconstruction Fiannce Corporation has passed
necessary resolution to consummate the transaction and necessary documents being prepared by legal department.
"'W. G. WILMOT.'
"We regret to announce, however, that matters of legal detail beyond
our control will make it impossible for the Hibernia National Bank to
open for business on Monday, May 15, and the old bank will have to
carry on for some days longer under present restrictions.
"When we announced on Thursday, May 4, that we would be open
for business on May 15 we had every reason to believe this would be possible, as we accepted the terms and conditions laid down by the Reconstruction Finance Corporation for the organization of the new Hibernia
National Bank on May 4, and only the legal details remained to be
concluded.
"However,final instructions and forms from the Reconstruction Finance
Corporation were not received until Friday afternoon, May 12, at which
time our Board was in session and immediately passed all necessary
resolutions.
"It is probably difficult for the public to realize how complicated is the
legal machinery which is necessary to put into final effect the definite
agreements which have now been reached. Some 25 different documents
have yet to be drawn to conclude the transaction and place to our credit
in the Federal Reserve Bank the funds to be paid over by the Reconstruction Finance Corporation both for the use of the old bank and for the
preferred capital stock of the new bank.
"These papers are now being prepared by our attorneys and the local
agency counsel of the Reconstruction Finance Corporation. We hesitate
toirisk our judgment again to fix the exact date for the opening of the
bank, but since all financial details are now complete and only the legal
details remain to be concluded, it will surely be in the very near future.
The Evangeline Bank & Trust Co., fiscal agent for the
Evangeline Parish, La., and the First National Bank of
Ville Platte, La., are planning to merge as a national institution as soon as permission is received from the Federal authorities, according to a dispatch from Ville Platte to the New
Orleans "Times-Picayune" on May 10, which went on to say:
The Evangeline bank has been operating on a 10% basis, $81,000 of its
deposits being frozen in the Canal Bank of New Orleans.
Federal bank examiners completed a survey and check up of the Evangeline Bank last week and now are checking securities of the First National
Bank, which has been operating on an unrestricted basis since the end
of the banking holiday.
Should the merger be approved, the First National Bank will move into
offices of the Evangeline Bank.
Organization of a new National bank in Morgan City,
La., under the title of the Citizens' National Bank of Morgan
City, to succeed the Bank of Morgan City & Trust Co. and
the People's State & Savings Bank, is indicated in the following dispatch from Morgan City on May 15 to the New
Orleans "Times-Picayune":
of Morgan city,
Steps for organization of the Citizens' National Bank
are being taken here by
with capital of $100,000 and surplus of $10,000,
Co.
and the People's
Trust
&
City
varied interests of the Bank of Morgan
been filed with the Comptroller
State and Savings Bank, application having
3471
Financial Chronicle
Volume 136
their examinaof Currency. National bank examiners have just concluded
tion of the two institutions.
Officers of the
Both local banks are now operating under restrictions.
President;
proposed new national bank are slated as follows: N. H. Breaux.
R. Norman, Dr.
Joseph H. Loeb, Chairman of board; Oscar Zenor, P.
Vice-PresiC. C. deGravelles, Vice-Presidents; Charles P. Lynch, Active
Fleury, Assistant
dent; J. L. Fisher, Cashier; A. B. O'Brien and H. R.
Cashiers.
to subscribe
The Reconstruction Finance Corporation will be requested
to $50,000 of preferred stock in the proposed new institution.
MAINE.
Associated Press advices from Portland, Me., on May 11
stated that organization of a new National bank in Portland,
to be named the National Bank of Commerce, was assured
on that day as subscriptions for stock in the new enterprise
passed the $500,000 mark set as a minimum by Federal
authorities. The dispatch continued:
the Reconstruction
The way also was opened for a $5,000,000 loan from
of the closed
Finance Corporation for distribution among the depositors
NOS a condition
Fidelity Trust Co. Formation of the new National bank
CorFinance
on
for the loan required by directors of the Reconstructi
poration.
MARYLAND.
Concerning the affairs of the Union Trust Co. of Baltimore, advices from that city to the "Wall Street Journal,"
under date of May 15, contained the following:
in Circuit
ruling,
Judges Eli Frank and gugene O'Dunne handed down a
for preferential payCourt, denying the State Roads Commission's claim
prior to the
Baltimore,
of
ment of funds deposited in the Union Trust Co.
a 5% basis.
Maryland bank holiday. The institution is now operating on
hear the suit and
The Court of Appeals, the State's highest court, will
definite ruling can be
various other bank cases on May 23, next, so that a
established on priority of funds.
The State Bank Commissioner of Maryland, John J.
Ghinger, announced on May 12 that three Maryland banks
had been authorized to open on that day on a 100% withdrawal basis. The institutions are, according to the Baltimore "Sun" of May 13, from which the foregoing is taken,
the Harford Bank of Bel Air; the Bank of Delmar at Delmar,
and the Hampstead Bank at Hampstead. The "Sun" continuing said:
depositors-in
The Harford Bank has raised a guarantee fund from the
Deposits of this
an amount sufficient to meet all losses and depreciation.
at Darlington
bank are approximately $700,000. Branches are operated
Munnikhuysen
and Jarretsville. W.II. Harlan is its President, and Hall L
is Cashier.
and, in
The Bank of Delmar has increased its capital stock to $50,000
depositors. The
addition, has raised a voluntary guarantee fund from its
President is R. H.
amount of deposits is approximately $400,000. The
Lowe and the Cashier S. M. Ellis.
a reorganizaadopted
Like the other two banks, the Hampstead Bank has
guarantee
tion plan providing for an increase in capital and a voluntary
William Kelbaugh
fund. This bank has deposits of about $1.200,000. J.
is Cashier.
Three Talbot County, Md., banks—the Talbot Bank and
the Farmers' & Merchants' Bank, both at Easton, and the
St. Michaels Bank at St. Michaels—announced plans for
immediate reorganization of the institution on May 17 which
meet with the approval of John J. Ghingher, the State Bank
Commissioner for Maryland, according to the Baltimore
"Sun" of May 18, which added:
g the capital
strengthenin
The reorganization plans of the bank provide for
structure and permitting the operation on a 100% basis.
MASSACHUSETTS.
We learn from the Boston "Transcript" of May 15 that
the Central Trust Co. of Cambridge, Mass., which closed
in May of last year and is now in process of reorganization,
announced on that day that it had made the final payment
on its indebtedness to the Reconstruction Finance Corporation. The flag was raised on the roof of the bank building
to celebrate the event. Leopold M. Goulston, agent for the
Massachusetts State Banking Commission, was quoted in a
statement as saying:
The Central Trust Co. closed on May 10 1932 with an indebtedness of
final
$2,450,000 owing to the Reconstruction Finance Corporation. The
payment on account of this loan is being made to-day. Although I cannot
in
New
bank
England
state it definitely, I believe this is the first closed
to pay in full a large indebtedness to the Reconstruction Finance Corporain
of
charge
liquidation
Pierce,
Henry
and
Guy
r
tion. Bank Commissione
of all closed banks, are entitled to great credit for this achievement and
the policies which made it possible.
The liquidation of this loan is the first important step towards the reorganization of this bank, through the efforts of the committee in charge
headed by A. Oram Fulton.
Mr. Goulston was also quoted as saying that no definite
date had been set for the reopening of the institution. He
added: "It is only a matter of weeks Dow, however."
Arthur Guy,State Bank Commissioner for Massachusetts
on May 9 announced that plans for the reorganization of the
Worcester Bank & Trust Co. of Worcester, Mass., had been
completed and approved by the Suprema Judicial Court of
Massachusetts, Federal authorities and the State Banking
Department. The Commissioner's statement, as printed
in the Boston "Transcript" of May 9,from which the above
information is obtained, in part, follows:
3472
Financial Chronicle
Substantially all of the capital stock of the Worcester County National
Bank of Worcester is now owned by the Worcester Bank & Trust Co. and
under the new plan all of the assets of the trust company, with certain
exceptions, will be transferred to the Worcester County bank, which will
credit on its books deposits in full up to $500, and of those in excess of
$500 at least 40% or $500, whichever is the greater.
By agreement with the larger depositors, it is expected that under the
plan 11,000 out of the 14,000 depositors will be paid in full. The total
release to depositors under the plan will amount to nearly $8,000,000.
Stockholders will be assessed for the amount of their statutory liability
but those who join in the plan will be released upon payment of 75% of
their liability by subscribing to new stock of the Worcester County National
Bank and otherwise complying with the terms of the plan, provided such
subscriptions amount to not less than $2,000,000. Stockholders who do
not join in the plan will be held for their full liability as provided by law.
All of the stock of the Worcester County National Bank, including that
now owned by the trust company, as well as the new stock subscribed for
by stockholders of the trust company, will be transferred to a corporation
to be formed for the purpose of holding it, and to be called the "Worcester
Depositors' Corporation."
The depositors of the trust company not receiving full payment of their
deposits under the plan will receive class A certificates of participation in
this corporation to the extent of their unpaid balances. These depositors
who paid in approximately $3,000,000 a year ago as deferred or subordinated deposits will receive class B certificates in that corporation to
the extent of their deposits and stockholders who join in the plan of reorganization and subscribe for new stock under it will receive class C certificates therein.
All of the stock of the National bank placed with the corporation, together
with such assets as the corporation may later acquire, will be held for the
benefit of the certificate holders and all earnings of the Worcester County
National Bank after charges and adjustments will be paid into the corporation and distributed for the benefit of the certificate holders. The holders
of class A certificates will be preferred over all others and the holders of
class B certificates will participate next in order after class A certificate
holders are paid in full. Class C certificate holders will participate next
in order.
It is to be noted that the plan is to become effective only upon the fulfillment of the following conditions:
(a) The collection from stockholders of the trust company of at least
$2.000,000.
(b) The assent in writing of depositors of more than $500 (other than
deferred depositors) whose deposits total such amount as the Commissioner
of Banks shall require.
(c) The consummation of this plan prior to July 1 1933.
MICHIGAN.
Plans were announced on May 12 for the reopening of
the Lenawee County Savings Bank of Adrian, Mich. Advices
from that place, appearing in the Toledo "Blade," noting
this, went on to say:
The plan, submitted by II. J. McGill, Conservator, calls for the immediate cash payment of 50% of deposits with the remaining 50%
held
temporarily under a trust agreement. It is expected the bank will reopen
June 26. The Lenawee County Bank is the third of Adrian's four banks
to make arrangements for reopening.
The sale of stock in the new National Bank of Birmingham,
Oakland County, Mich., which is to replace the former First
National Bank of that city, reached its quota on May 11,
when the Oakland County Board of Supervisors subscribed
$7,500 in stock, bringing the total subscriptions to more than
$60,000, the minimum required by the Federal Government.
The Detroit "Free Press" of May 12, from which the above
information is obtained, continuing said:
With the stock sale drive completed, immediate steps will be taken
to
iron out the formalities necessary for a new institution, Charles E. James,
Federal Conservator, announced, and, barring unforeseen troubles, the
new bank should be in operation within three weeks.
With the opening of the new bank, a first dividend of not less than
20% will be paid to former depositors of the old institution. James
also
announced.
The Reconstruction Finance Corp. has promised to match dollar for
dollar all funds raised by the reorganization committee. The new bank
will have a capitalization of $120,000, $100,000 of which represents
paid
in capital and $20,000 surplus and undivided profits.
May 20 1933
succeeded by C. 0. Thomas), the latter to take charge of the
First National, first came to Detroit it was announced that no stock assessment
was probable within a period of two years.
There are no direct stockholders in either of the institutions.
The assessment will be levied against stockholders in the Detroit Bankers
Co.,
holding concern for the First National Bank, and against the
stockholders
in the Guardian Union Group, Inc. Both groups are now
under receiverships, with William F. Connolly in charge of the First National
and Alex
J. Groesbeck in charge of the Guardian National.
Mr. Thomas announced Thursday that he had altered the plan for t ho
payoff of $5,400,000 to holders of negotiable instruments, including cashiers' checks, which is scheduled to commence Monday (May
15). These
depositors will also be paid in alphabetical order. Mr. Thomas
had previously announced that payment would be made regardless of
alphabetical
order.
The change was necessitated by the volume of work involved,
Mr.
Thomas said. The payoff will be a slow process as holders of
such instruments will have to be identified, and the instrument checked.
The
holders of the instruments will receive their checks by mail,
but must
bring in the negotiable paper.
Subsequently, May 18, a dispatch from Detroit to the
New York "Journal of Commerce" reported that the Comptroller of the Currency had ordered a 100% assessment of
stockholders of the First National Bank and the Guardian
National Bank of Commerce, with payments to be met by
June 23. The advices went on to say:
The stockholders of the First National must pay $25,000,000.
The
Guardian assessment is $10,000,000. In both cases much of the outstanding
stock is held by holding companies.
In regard to the affairs of the Oxford Savings Bank of
Oxford, Mich., a dispatch from that place under date of
May 12, appearing in the Detroit "Free Press" contained
the following:
Reorganization of the Oxford Savings Bank is assured.
Conservator
Frank L. Olive stated Friday (May 12). About 60% of the
$50,000 stock
subscription required for reorganization has been obtained
and the remainder is certain to be had, probably before the
stockholders hold a
meeting next Monday night at the bank, he said.
Reorganization of the bank will permit an immediate release
of 15%
and payment in full of all accounts up to $10, Olive stated.
MINNESOTA.
John N. Peyton, Commissioner of Banks in Minnesota,
said on May 12 that full confidence of the public in the State
banks of Minnesota is warranted. According to the Minneapolis "Journal" of May 12, Mr. Peyton explained that in
in the two months since the National bank holiday 422
State banks had been reopened to operate without any
restrictions, except for voluntary restrictions that may have
been agreed upon by depositors.
The "Journal" continued:
Of the 235 banks which were under reorganization
immediately after
the bank holiday, only 103 are left in a reorganization status.
Only 22 have remained closed and are undergoing
liquidation. Eight
have been consolidated.
Mr. Peyton said that, of the 103 banks remaining under
reorganization,
a large percentage will be reopened within a short time
if the
Policies of the State Banking Department are continued. Seventy present
of these,
he explained, merely were waiting for final agreements by
depositors to
iron out some technical situations.
According to the Minneapolis "Journal" of May 12, the
reopening of four Minnesota State banks was announced on
that day by John N. Peyton, State Commissioner of Banks.
The institutions were:
The State Bank of Hampton,the State Bank of Rose Creek,
the Farmers'
State Bank of Underwood and the First State Bank of
Underwood.
In its issue of the next day (May 13) the paper mentioned
stated that Mr. Peyton on that date had announced
the
reopening of four more small banks as follows:
The Farmers'
& Merchants' State Bank of Cook; St. Clair State
Bank of
In its issue )f May 12, the Detroit "Free Press" stated St. Clair; Farmers'
State Bank of Lyle, and Sanborn State Bank.
that an assessment in the near future on all stockholders of
The Commissioner also on that date announced, it was
the two defunct Detroit, Mich., banks, the First National said, that
the Odin State Bank at
Bank Detroit and the Guardian National Bank of Com- $75,000, had discontinued business. Odin, with deposits of
merce, was considered probable May 11 when the ConservaAgain, in its issue of May 16, the "Journal" reported that
tors of the respective institutions, C. 0. Thomas and B. C. reopening
of the Farmers' & Merchants' State tank of
Schram, were notified by the Comptroller of the Currency Lamberton had been announced
on that day by E. W.
that their commissions as Conservators had been terminated Swanson, Deputy State Banking
Commissio
ner of Minneand that in future they would serve as Receivers of their sota, who also announced
at the same time the discontinuance
respective banks. The paper mentioned continuing said:
of operations by the First State Bank of Porter, with deposits
The appointment of the Conservators as Receivers was the first
formal
of $80,000, and the Almora State Bank of Almora, with
action by the Treasury Department to establish the insolvency of the two
National banks. The institutions first closed Feb. 13 by proclamation
deposits of $28,000.
of
the Governor and a month later were placed under the Federal Conservators.
Neither Mr. Schram or Mr. Thomas was in a position Thursday
night
(May 11) to state the amount to be assessed on the stock. It was learned,
however, that both receivers are in a position to determine the
assessment
upon notice for the levy from Washington. Mr. Schram stated that the
order for an assessment would have to come from Washington.
No request for information upon which to base an assessment has as
yet been received from the Treasury Department, but it can be provided
immediately, persons working under the Receivers said. A considerable
part of this Information was taken to the Capital several weeks ago, when
National bank examiners completed a recheck of the assets of the closed
institutions.
Under the emergency banking legislation adopted during the first week
of the Roosevelt Administration, Conservators were not empowered to
levy assessments. When Mr. Schram and Paul C. Keyes (subsequently
MISSOURI.
The State Finance Commissioner of Missouri has commissioned the Normandy State Bank of Normandy, Mo.,
to liquidate and wind up the affairs of the State Bank of
Anglum at Anglum, Mo., which has been closed since March.
The St. Louis "Globe-Democrat" of March 12 in reporting
the matter furthermore said in part:
Cashier George D. Able of the Normandy Bank
yesterday (May 11),
stated he had been told a shortage, understood to be
about $5,000, has been
discovered in the records of the Anglum depository. The shortage
was
said to be in the accounts of George J. Ilerwig, Jr.
Cashier, who fatally
shot himself in Forest Park, March 14.
Mr. Able asserted he has not seen the books of
the.Angium Bank and
could not verify the shortage. Joseph I3urcke,
President of the Anglum
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Financial Chronicle
Volume 136
institution,indicated there was a shortage in Mr.Herwig's books, but would
not state the amount.
NEVADA.
Thu bank officials are understood to be seeking aid from the Federal
Reserve Bank. The institution has not been a member of the Federal
Reserve. . .
A dispatch from Reno, Nev. (A. P.) on May 9, in regard
to the affairs of the so-called Wingfield banks in Nevada
(which closed on Nov. 1 1932 when a bank moratorium
was declared by the Governor of that State), stated that
formation of a new institution to replace the old Wingfield
group seemed assured on that day when it bee me known
that a majority of the depositors in all but one of the closed
institutions had approved a consolidation plan. We quote
further from the dispatch mentioned as follows:
Clifford Couneh, counsel for depositors, announced on
May 18 that the Westchester County National Bank & Trust
Co. of Peekskill, N. Y., which has been closed since March
4, would be reopened to-day (May 20) at 9 a. m. for unrestricted banking business. A Peekskill dispatch to the
New York "Times," indicating this, also said:
Announcement to this effect was greeted with enthusiasm throughout
Nevada, and particularly in a half dozen or so of the principal communities
of the State which have been without banking facilities for more than six
months. Within little more than another month, if all goes well, the new
bank will be opened, releasing immediately something over a million dollars
to approximately 17,000 depositors.
Failure of the depositors of the Churchill. County Bank at Fallon to
approve the consolidation will not be fatal to the plan, as its proponents
say they do not consider inclusion of that bank necessary.
The plan itself is a complicated one, and proposes distribution of $4-,
500,000 to depositors over a three-year period. It calls not only for the
formation of a new bank, operating branches, but a depositor-owned mortgage company which would utilize a $1,500,000 loan from the Reconstruction Finance Corporation to purchase assets of the closed Wingfield
banks.
When and if it opens the new bank, which will be known as the Bank
of Nevada, will have approximately $3,400,000 cash on hand and an additional $4,000,000 of selected assets.
To assist the new bank, several California corporations have agreed to
make deferred deposits totaling $500.000, and in turn will take a principal
part in its management.
NEW JERSEY.
More than 93% of the stockholders of the Hamilton Trust
Co. of Paterson, N. d ., closed since the bank holiday was
declared March 4, voted on May 17 to adopt the bank's
plan for reorganization. Paterson advices on that date
named to the Newark "News," authority for the above,
continuing said:
In the main the plan calls for the decrease of the par value of common
stock from $100 to $10, and the issuance of 6% preferred stock at $10 a
share. Both stocks will have the same voting power.
Henry H. Parmelee, President, said the institution already had raised
85% of the amount needed under reorganization plan.
NEW YORK STATE.
Fred I. Pugsley, conservator, will retire then. New directors and new
executive officers acceptable to the chief national bank examiner in New
York and the Federal Reserve Bank of New York are to be chosen as
soon as possible.
OHIO.
Carl W.Schaefer, Chairman of a reorganization committee
of the Lorain Street Savings & Trust Co. of Cleveland, Ohio,
announced on May 14 that an entirely new bank with capital
stock of $200,000 already under written by Cleveland men,
would replace the present bank about June 1. The Lorain
Street Savings & Trust Co. (which on Dec. 31 last reported
deposits of ,804,892 and combined capital, surplus and
un livided profits of $1,111,709) now is in the hands of a
conservator. Associated Press advices from Cleveland on
May 14, in reporting the matter, furthermore said:
The new bank, Mr. Schaefer said, is planned as a "model" institution
of the
and will adopt in its by-laws many of the recent recommendations
United States Treasury and the American Bankers' Association. It will
operate under a State charter with membership in the Federal Reserve
System. An entirely new personnel of officers and directors to be chosen
later will operate it.
Prireq assets of the Lorain Street bank are to be purchased by the new
institution at 100% of face value plus accrued interest.
The Board of Directors of the Reconstruction Finance
Corporation have auth)rized the purchase of $100,000 of
preferred stock in the First National Bank at Massillon,
Ohio a new bank. The authorization of the Corporation
is contingent upon the subscription of a like amount of
common stock by those interested in the formation of the
new institution.
The Perrysburg Banking Co. of Perrysburg, Ohio, on
May 13 was granted a license to reopen May 15 on an
unrestricted basis, according to a dispatch from Columbus
on May 13, which added:
Because of "abnormal withdrawals" by depositors, the
The bank has been operating under restrictions since early in March. It
Westchester Trust Co. of Yonkers, N. Y., one of the largest was not in the hands of a conservator.
banks in Westchester County, on May 15 temporarily reThe Waterville State Savings Bank at Waterville, Ohio,
turned to a "bank holiday" basis of business. The Directors
for normal business on May 12 under a license
reopened
requested Joseph A. Broderick, the New York State Superfrom the Ohio State Banking Department, according to a
intendent of Banks, to suspend the license under which the dispatch from that place printed in the Toledo "Blade,"
institution was permitted to reopen without restrictions after
which continuing said:
the nation-wide bank holiday in March last, and the SuperagreeSavings depositors having more than $25 in the bank signed an
intendent promptly did so, announcing that he had deter- ment to place one-half of their accounts in a trust fund. All other accounts.
without
mined "to limit temporarily the amount of withdrawals including public and church funds, and school savings are released
against deposits or other credits." Mr. Broderick's state- restrictions.
Concerning the affairs of the First-Central Trust Co. of
ment,as printed in the New York "Evening Post" of May 15,
Ohio, Akron advices on May 15 to the "Wall Street
Akron,
said:
Journal," contained the following:
"Extraordinary demands by depositors for the withdrawal of their funds
have placed upon the trust company the necessity of converting assets to
currency more rapidly than it is possible to accomplish such conversion at
this time except by means of the facilities of the bank conservation act
through the Federal Reserve System.
"Efforts are being made to secure for this trust company access to the
ample provisions of that act for the rapid conversion of deposit balances
to currency. Widespread rumors led to the belief that if this institution
had opened this morning for business in the usual course, current withdrawals would have continued in increasing volume and to such an extent
as to tend to create preferences to the general detriment of other depositors
and the public."
The statement by the Directors, as published in the paper
mentioned, was as follows:
"An examination of the Westchester Trust Co. made on April 18 1933,
by the State Banking Department and recently completed shows that the
Westchester Trust Co., as a going concern, is solvent.
"The Westchester Trust Co., however, has suffered from rumors circulated through the city, resulting in obnormal withdrawals The trust
company is not willing to continue to meet such withdrawals for the reason
that to do so would result in preferring withdrawing depositors to the prejudice of loyal depositors.
"Under these circumstances the Board of Directors deems it for the beat
interest of all depositors to request the State Suprintendent of Banks to
suspend the license, dated March 15 1933. under which the trust company
is operating.
"Plans are under consideration by the directors looking toward the resumption of business by the trust company and which are calculated to
restore banking confidence in the community."
Richard Edie is President of the institution, which maintains one branch in Yonkers in addition to its main office.
In its report as of Dec. 31 last the bank showed combined
capital, surplus and undivided profits of $1,563,254 and
deposits of $9,431,402. A later dispatch from Yonkers,
May 16, to the New York "Herald Tribune" said in part:
While many depositors of the Westchester Trust Co. . . . gave
their confidence, Richard
bank officials to-day (May 16) assurance of
Edie, President, and William J. Wallin, bank counsel, went ahead with
plans for an early reopening of the bank.
Francis Sieberling,
The Akron group, headed by former Congressman
approval by the
has returned from Washington where it obtained general
the FirstReconstruction Finance Corporation of the plan to reorganize
Central Trust Co.
to loan approximately
The Reconstruction Finance Corporation is willing
the reorganization
$4,200,000 to enable the carrying through of either
bank for the old
plan, or the earlier plan of substituting a new national
First-Central Trust Co.
to do
holding
corporation
new
The reorganization plan contemplates a
certificates would
the work of the conservatorship, in which participating
frozen deposits,
be held by the old depositors in the proportion of their
such certificates to be paid off as soon as possible by the liquidation of
to
yield $750,000
stockholders
those assets. Immediate assessment against
would be made, which, added to funds obtained from the Reconstruction
% to
Finance Corporation, would make possible an early dividend of 22%
the depositors.
First-Central Trust Co. would reopen with a new capitalization of $1,500.000 as against the present $7,500,000, the par value of shares would
be reduced from $50 to $10.
VIRGINIA.
The Reconstruction Finance Corporation has authorized
the purchase of $20,000 of preferred stock of the Farmers'
National Bank of Appomatox, Va., according to Washington
advices on May 15 to the "Wall Street Journal," which
added:
The subscription is on a dollar-for-dollar basis and calls for the purchase
of a like amount of common stock by local interests.
Tentative plans for the reopening of two Petersburg, Va.,
banks—the Petersburg Saving & American Co. and the First
National Bank & Trust Co.—which have been closed since
the beginning of the national banking holiday, March 4
last, were announced on May 13. The institutions are working out plans for reopening which will involve the aid of
their respective depositors. Advices from Petersburg to the
Richmond "Dispatch," authority for the above, continuing
said:
3474
Financial Chronicle
The Petersburg Savings & American Trust Co., a State bank, plans an
amendment to its charter to allow the issuance of stock. Preferred stock
would be subscribed by the Reconstruction Finance Corporation and class
A stock would be subscribed by depositors up to a certain percentage of
their old deposits. This it is stated would make the bank secure and allow
its unrestricted opening.
O. The other bank, a national bank, cannot issue stock but its plan includes
issuance of certificates of deposits to depositors for a certain percentage of
their old deposits.
Full details of the plans are promised within a short time.
Additional List of Banks Licensed to Resume Operation in Second (New York) Federal Reserve
District.
Supplementing its statement of May 10 (noted in our
issue of May 13, page 3283) the Federal Reserve Bank of
New York issued the following list showing additional
banking institutions in the Second (New York) District
which have been licensed to resume full banking operations:
FEDERAL RESERVE BANK OF NEW YORK.
(Circular No. 1230. May 17 1933)
MEMBER BANKS.
NEW YORK STATE.
Addition
Vernon—The National Bank of Vernon.
NON-MEMBER BANKS.
NEW YORK STATE.
Withdrawal
Yonkers—*Westchester Trust Company.
NEW MEMBER BANKS.
The following State banking institutions, previously licensed to resume
full banking operations by the Superintendent of Banks of the State of
New York, have been admitted to membership in the Federal Reserve
System:
NEW YORK STATE.
Garden City—Garden City Bank & Trust Company.
Salamanca—aSalamanca Trust Company.
*Previously licensed to resume full operations. License suspended May
15 1933 by New York State Banking Department.
a—Bank in Buffalo Branch territory.
GEORGE L. HARRISON, Governor.
ITEMS ABOUT BANKS, TRUST COMPANIES, &c.
Arrangements were made May 19 for the transfer of a
New York Stock Exchange membership at $150,000. The
previous transaction was on May 17th at the same price
and the following memberships have been proposed for
transfer:
Louis C. DeCoppet, Deceased, to Langdon B. Wood for
$150,000, Alfred V. Leaman, 3d, to Donald J. Hardenbrook
for $145,000, Henry B. Fuller to John W. Kurth nominal,
L. Arnold Van Schaick to Edward A. Purcell for $150,000,
Clifford Langley, Deceased,to William E.Boye for $150,000.
The membership of Estate of George McFadden in the
New York Cotton Exchange was sold May 18 to Alden H.
Vose for another for $18,250, this price being $250 in advance
of the previous sale.
Transfers of memberships on the Commodity Exchange
were announced May 13 as follows: F. J. Cavanagh to E.
Tworger for another, $2,200; Jerome M. Bijur (extra membership) to Jerome Lewine for another, $2,200; Floyd Y.
Keeler (extra) to Jerome Lewine for another, $2,200; Frederick J. Herzog to Joseph Faroll for another, $2,300. On
May 18 Richard T. Harriss has sold an extra membershi
p
on the Commodity Exchange, Inc., to Harold L. Bache for
another at a price of $2,200. Sedgwick Kistler disposed of
a membership to John N. Stearns, Jr., for another at $2,100.
In each of the following cases the purchase was made
"for
another." The sales were: extra membership of J. F. Booswillwald to Jerome Lewine for $2,200; of Leon Regray to
Jerome Lewine for $2,250, and of Maurice Lamotte to
Harold L. Bache for $2,300 and May 19 arrangements were
made for the sale of two more Commodity Exchange, Inc.,
memberships at $2,300 and $2,400, unchanged, and an increase of $100 over the last previous sale, respectively.
A membership in Chicago Stock Exchange was sold May
19 for $5,000, up $500 from the previous sale.
Henry Bruere, President of the Bowery Savings Bank of
New York City was the guest speaker on May 17 at the St.
Moritz Hotel, New York, where the Women Savings Bankers
of the Metropolitan area held their last meeting of the
season, a 7 o'clock dinner in the hotel's grill. Preceding the
dinner Henry It. Kinsey, President of the Savings Banks
Association of the State of New York, concluded the series
of informal talks he has been making this year before this
banking women's group. Mr. Kinsey has been conducting a
May 20 1933
study course pertaining to topics of general banking interest
in order to give the members of the group a general survey
of current developments in savings banks. Following Mr.
Kinsey's talk the annual business meeting was held at which
officers for the following year were elected. Officers of
various savings banks were guests of honor at the dinner
meeting, at which Miss Lillian Backus, service director of
the Greater New York Savings Bank, Brooklyn, and Chairman of the group, presided. Miss Mabel Thompson, service
director of the Union Dime Savings Bank, was Chairman of
the Program Committee.
The Executive Committee of the City Bank Farmers' Trust
Co., New York, at a meeting held May 15, appointed George
J. Kenny an Assistant Vice-President and Harold Bottenus
an Assistant Secretary. Previously, Mr. Kenny had been an
Assistant Secretary of the institution.
Oscar A. Krieger resigned as a Vice-President of the Bank
of the Manhattan Company, New York, on May 6. Mr.
Krieger will become a member of the New York Stock Exchange firm of Burnham, Herman & Co.
At the regular meeting of the Board of Trustees of the
Title Guarantee and Trust Company held May 16, Harold
W. Hoyt was elected a member of the Board, filling the
vacancy in the Class of 1934 caused by the death of Ranald
H. Macdonald. Mr. Hoyt is the Senior Vice-President of
the company in the Brooklyn office and has been with the
company since 1905.
•-Frank H.Parsons was elected a Vice-President of the Dime
Savings Bank of Brooklyn at a meeting of the Board of
Trustees of the Bank held May 12, according to an announcement made by Philip A. Benson, President. Mr. Parsons,
who
succeeds the late George Cox, has been a trustee of the institution since 1904.
At the regular meeting of the Board of Trustees of the
East Brooklyn Savings Bank, Brooklyn, held May 8, Duncan
Cranford was elected a trustee.
Frank J. Prial, President and director of the New York
Civil Service Employees Publishing Co., Inc., was elected a
trustee of the Brevoort Savings Bank of Brooklyn on May 11.
Supreme Court Justice William F. Bleakley, a director of
the Yonkers National Bank & Trust Co., Yonkers, N. Y., was
appointed President of the institution on May 16, replacing
Wilfred L. Chase, who became Chairman of the Board of
Directors, according to advices from Yonkers on that date.
Mr. Chase, who had held the Presidency several years, voluntarily resigned the office because of impaired health. He is
now on a vacation. As Chairman of the Board he succeeds
Leslie Southerland, Vice-President of the Third Avenue Railway Co., and a former Mayor of Yonkers, who withdrew to
permit the selection of Mr. Chase.
On May 11 the Comptroller of the Currency granted a
charter to the Windsor County National Bank of Windsor,
Windsor, Vt., with capital of $50,000. The new bank succeeds the State National Bank and the Windsor County Trust
Co., both of Windsor. H. P. McClary is President and Gerald
H. Cabot, Cashier, of the new bank.
Savings depositors of the closed Hamden Bank & Trust Co.
of Hamden, Conn.. on May 10 were to receive a second dividend of 10% as the result of an order which was recently
signed by Judge Ernest A. Inglis in the Civil Superior Court,
according to the New .Haven "Register" of May 8, which
added •
This is the second dividend to be declared by the closed institution on the
savings accounts. Previously a payment of 20% was ordered by the Superior
Court.
The Hamden Bank & Trust Co. closed in December 1931.
Our last previous reference to its affairs appeared in the
"Chronicle" of Oct. 8 1932, page 2442.
On May 10, Frank C. Mindnich, heretofore a Vice-President of the Federal Trust Co. of Newark, N. J., and connected with the institution for many years, was promoted to
the Presidency of the institution to succeed Christian W.
Feigenspan, who resigned in order to devote his time to the
brewery business resumed by the Christian Feigenspan Corp.
Mr. Feigenspan will continue with the institution as Chairman of the Executive Committee. At the same meeting liar-
Volume 136
rison P. Lindabury, a Vice-President, was promoted to Chairman of the Board of Directors, a post which had been vacant
since the retirement of Winston C. Garrison last December,
and William E. Selby, a Vice-President of the bank, was
given charge of the trust department. With reference to the
new President's banking career, the Newark "News" of
May 10 said:
Mr. Mindnich began as a bookkeeper in the Federal Trust June 1 1904;
worked in all departments, and was made successively Assistant Secretary
and Treasurer, Secretary and Treasurer, and Vice-President. He has been
Secretary of the Newark Clearing House Association since its organization.
A dividend of 25%, or approximately $200,000, was to be
distributed this week, beginning May 15, to depositors of the
Bank of Brightwood, Washington, D. C., which closed in July
of last year, according to an announcement on May 13 by
Claude H. Woodward, the receiver. In indicating this, the
Washington "Post" of May 14 stated that the institution had
paid an initial dividend of 20%, or approximately $155,000,
in February last, making with the present dividend, 45%, or
approximately $355,000, to be received by the depositors in
the ten months since the bank suspended. The closing of the
Bank of Brightwood,following the discovery of a shortage in
the accounts of its President, Raymond L. Schreiner, was
noted in the "Chronicle" of July 16 1932, page 415. Our last
previous reference to its affairs appeared in our issue of
Dec. 31 last, page 4501.
The Toledo "Blade" of May 12 stated that Willard I.
Webb Jr., was elected a director, and Randolph P. Whitehead,
trust officer, of the Citizens Trust Co. of Toledo, Ohio, at the
monthly meeting of the directors of the institution on May 10.
The election of Mr. Webb brings the total'membership of the
Board of Directors to 18. Mr. Whitehead has been in charge
of the trust department as Assistant Trust Officer since the
bank opened a year ago. The paper mentioned furthermore
stated that the directors were informed that the bank had
gained more than $1,000,000 in deposits since the bank holiday, as well as several large new trust accounts.
Effective May 10 1933, the Delaware County National Bank
of Muncie, Ind., went Into voluntary liquidation. The institution, which was capitalized at $300,000, was taken over
by the Merchants' National Bank of Muncie.
A charter was issued by the Comptroller of the Currency
on May 6 for the Mid-City National Bank & Trust Co. The
institution, which is capitalized at $400,000, succeeds the
Mid-City Trust & Savings Bank. Ben Mills is President and
W.0. Schultz, Cashier, of the new organization.
The First National Bank of Casey, Ill., was placed in voluntary liquidation on May 10 1933. This bank, which was
capitalized at $50,000, has been succeeded by the First National Bank in Casey.
C. B. Fox, President of the Alcoa Ore Co., was recently appointed Chairman of the executive committee of the Union
Trust Co. of East St. Louis, Ill., according to the St. Louis
"Globe-Democrat" of May 12. Mr. Fox succeeds August
Schlafly, 84 years of age, who has held the office since the
organization of the bank in 1901, and who resigned on account of his years. Mr. Fox, the new Chairman, has been a
director of the institution for 11 years and has served on
the executive committee for some time, it was stated. Paul
A. Schlafly is President of the institution.
Proposed consolidation of the Security Savings Bank and
the Gateway City Bank, both of La Crosse, Wis., to form a
new institution to be known as the Commercial Savings
Bank, with quarters in the Security Savings Bank Building,
was announced on May 9, according to the Minneapolis
"Journal" of that date. The new bank will be capitalized at
$100,000, with surplus of $52,000, and will have resources of
$1,127,079.23. The paper mentioned also stated that officers
of the new institution, suggested jointly by the members of
the respective directorates of the two banks, were Harry
Dahl, President: Frank H. Burgess, Vice-President; J. B.
Brenner. Cashier. and E. '31. Newburg and A. M. Schreiner,
Assistant Cashiers.
Creditors of the Columbia National Bank of Minneapolis,
Minn., which suspended operations in June of last year,
were to receive a second dividend of 10%, according to
an announcement on May 11 by W. Leigh Cary, receiver for
3475
Financial Chronicle
the institution. The Minneapolis "Journal" of that date, in
reporting the matter, added:
The first dividend of 28% was paid to the depositors in December.
The Comptroller of the Currency on May 13 granted a
charter to the First National Bank in Colfax, Colfax, Iowa,
with capital of $25,000. The institution succeeds the First
National Bank of that place. F. E. Boyd and H. E. Bell are
President and Cashier, respectively, of the new bank.
In regard to the affairs of the Security State Bank of
Milwaukee, Wis., which closed in July of last year, with
deposits of approximately $1,000,000, the Milwaukee "Sentinel" of May 11 carried the following:
Thirty thousand dollars' worth of stock has been subscribed in the last
two days for reorganization of the Security State Bank of Milwaukee, Circuit
Judge John .T. Gregory was told by stockholders and creditors yesterday
(May 10).
The report of progress toward reorganization was made after Judge
Gregory, at a hearing last Monday (May 8), refused to authorize the use of
bank funds for reorganization purposes unless definite accomplishments to
that end were developed.
On the basis of the showing made yesterday, the Court allowed the stockholders and the committee $200 each to carry on their work. Bob Teach,
cigar manufacturer and former County Supervisor, is Chairman of the
creditors' committee.
Liquidation of the Security Bank since it closed last July has been under
the direction of Alfred Newlander, Special Deputy State Commissioner of
Banking. . . .
The Commissioner of Banking has approved reorganization of the Security
Bank on the basis of $100,000 capital stock and a cash surplus of $20,000.
In his last report of the banks' liquidation, Mr. Newlander reported bills
payable had been reduced from $269,305 to $11,671. There was in March a
cash reserve of $1,020 and undivided profits of $39,045.
According to advices from Mullins, S. C., to the Columbia
"State," on May 9, a second dividend of 10% was to be paid
on May 11 to all depositors who had proven their claims.
Tne institution, it was stated, which closed its doors on Dec.
12 1931, paid its first dividend, 33 1/3%, in April 1932. The
present dividend, therefore, brings the total paid to the creditors to 43 1/3%. The dispatch went on to say:
This dividend is being paid from funds acquired by the receiver in the
ordinary course of liquidation supplemented by a loan from the Reconstruction Finance Corporation. This loan, which is secured by a lien on the
remaining assets of the hank, must, of course, be retired. Until this loan is
repaid, no further dividend disbursement can be made by the receiver. It is
believed that with the co-operation of the borrowers this loan can be repaid
within a reasonable time. If so, the depositors will receive such further
regular dividend payments as the collections made by the receiver will
warrant.
The funds of the Reconstruction Finance Corporation set aside for the
loans to receivers of insolvent banks are limited and the depositors of the
First National Bank of Mullins are fortunate to have an application for a
loan accepted at this time. The funds released by this loan should be a
material aid to the community in these difficult times.
Effective May 12, the First National Bank of Wills Point,
Tex., capitalized at $50,000, and the State National Bank of
the same place with capital of $100,000, were consolidated
under the title of the First National Bank of Wills Point.
The new organization Is capitalized at $50,000 with surplus
of $10,000.
T. B. Weatherbee has been congratulated upon the completion of 25 years of continuous service with the Canadian
Bank of Commerce. Mr. Weatherbee, who is now resident
Manager of the institution's Los Angeles branch, became
affiliated with the Canadian banking organization on May 8
1908. He first joined the bank at a small branch In Nova
Scotia. In 1910 he was sent West to the Winnipeg office,
and during the following years he served at branches in practically every Province in the Dominion. Mr. Weatherbee became Assistant Manager of the Montreal branch in 1927.
Two years later he was appointed Supervisor of the institution's foreign department. In 1931 the Los Angeles office of
the Canadian Bank of Commerce (California) was opened.
At that time, Mr. Weatherbee was elected Vice-President of
the subsidiary institution and was sent there as resident
Manager to open the office.
-4---
- At a meeting of the directors of the Dominion Bank (head
office Toronto, Canada) held May 18th, Arnold C. Matthews
was elected to the Boardrto fill a vacancy caused by the
recent death of Wilmot L. Matthews. Mr. Matthews is
head of the firm of W. D. Matthews & Co., Grain Merhants, Toronto. He is also Managing Director of the
Canada Malting Co., Ltd., a director of the Blue Ribbon
Corporation, Ltd., Maple Leaf Milling Co., Ltd., and other
organizations.
At the same meeting the directors declared a quarterly
dividend of 23 %, payable July 3 to-shareholders of record
of June 20.
3476
Financial Chronicle
THE WEEK ON THE NEW YORK STOCK EXCHANGE.
Speculative activity in stocks continued fairly heavy during
the present week, though the sales on the New York Stock
Exchange on some days dropped below the high average
of the previous week. Considerable irregularity has been
apparent due to realizing, but the trend of the market
generally has been toward higher levels. Railroad shares
have attracted considerable buying due to the improved
outlook. Alcohol stocks have advanced and there have
been many substantial gains in the specialties and industrials, though the latter were inclined to sag toward the
end of the week. Call money renewed at 1% on Monday
and continued unchanged at that rate throughout the week.
Realizing was the dominating feature during the first hour
on Saturday and recessions ranging up to 2 or more points
were in evidence all along the line. As the day progressed,
the market turned upward giving the close a strong appearance, though the changes, on the whole, were not particularly
noteworthy. Considerable attention was directed toward
the dairy stocks, especially Borden and National Dairy
which were turned over in fairly large size blocks at advancing
prices. Some speculative interest was manifested in oil
shares, and while they continued fairly steady, they made
little progress upward. Railroad stocks forged ahead under
the guidance of Louisville & Nashville and Atlantic Coast
Line, both of which showed modest gains at the end of the
day. Alcohol issues displayed moderate strength toward the
close, but industrial stocks, motor shares and specialties
were generally lower. The gains for the day included among
others, Atlantic Coast Line 1% points to 40, Auburn Auto
3% points to 51, Crown Cork & Seal 1% points to 35%,
General Railway Signal 1% points to 27%,Jones & Laughlan
pref. 23.1 points to 683j, Montgomery Ward 13.1 points to
223.1, National Distillers 2% points to 40%, New York Air
Brake 23j points to 183
4, Public Service of N. J. (7) pref.
4% points to 105, Tide Water Oil 23
4 points to 12 and
Virginia Carolina Chemical 7% pref. 4 points to 46.
Specialties were the outstanding features in the trading
on Monday, the gains in this particular group ranging from
1 to 2 or more points. Other pivotal stocks were less active
though most of them were fairly steady. A few stocks like
Liquid Carbonic, Anchor Cap, Crown Cork & Seal and
National Distillers showed sharp gains. Trading, on the
whole, was somewhat smaller in volume than the last full
session. There was a brisk rally around the noon hour, but
this was short lived and the trend again turned down.
Declines predominated at the close, though the losses were
not large. They included among others, Air Reduction,
1% points to 70%;American Can,1% points to 80; American
Type Founders, 33
4 points to 26%; Byers Co. pref., 3 points
to 51; Cannon Mills, 23.1 points to 27; J. I. Case pref.,
2% points to 653/2; Gold Dust pref., 2 points to 100; Goodrich pref., 2% points to 32%; New York Air Brake, 2%
points to 16%; Public Service pref. (5), 2 points to 75;
Tide Water Oil pref., 23.1 points to 34%; American &
Foreign Power pref., 1 points to 273/8, and Corn Products,
1% points to 68%.
On Tuesday, the market was slightly higher, many
specialties moving sharply forward under short covering.
Some of the recognized market leaders were in sharp
demand and surged briskly upward within a short distance
of their highs of the previous week. Amer. Tel. & Tel.
was in demand at higher prices due to the feeling that there
would be no cut in the dividend. Western Union also was
strong and closed with a gain of nearly 2 points and many
representative issues among the public utilities, chemical,
sugar and steel groups moved ahead from 1 to 3 or more
points. Railroad stocks also participated in the advance
but the gains were moderate. The turnover was somewhat
larger than the preceding day, though still far below the
high record made during the previous week. The gains
included among others, Air Reduction, 33.1 points to 73%;
American Beet Sugar pref., 7% points to 40%; American
Can pref., 3 points to 125; American Sugar Refining, 4
points to 57; Amer. Tel. & Tel., 23
% points to 1073.1; American Water Works, 2% points to 24%; Atlantic Coast Line,
2; Beatrice Creamery pref. (7), 5 points
23.1 points to 413/
to 75; Bethlehem Steel pref., 23/i points to 563/2; Celanese
Corp., 3% points to 223
4; Corn Products pref. (7) 3 points
to 133; Crown Cork & Seal, 43% points to 423/g; General
Railway Signal, 43/2 points to 33; International Harvester
pref., 73% points to 106; New Haven pref., 23
4 points to
38%; Sloss Sheffield Steel, 23/i points to 28; Union Pacific,
2% points to 873/8; United Fruit, 23/i points to 49%, and
Worthington Pump pref. A, 4% points to 38.
May 20 1933
Stocks advanced all along the line on Wednesday and
many substantial gains were recorded in various parts of
the list. American Tel. & TeL and Allied Chemical & Dye
led the upward swing, followed by numerous speculative
favorites, and the gains at the close ranged up to 5 or more
points. Fresh impetus was extended to the buying movement by the declaration of the regular dividend by American
Tel. & Tel. Allied Chemical & Dye crossed par for the
first time in more than a year, and railroad shares broke
through their tops of the previous week. The outstanding
gains were Allied Chemical & Dye, 3% points to 101%;
American Bank Note Co., 23.4 points to 18%; American
Ice preferred, 3 points to 38; American Smelting (2) pref.,3%
points to 53; Brooklyn Queens preferred, 5 points to 45;
Crown Cork & Seal, 2 points to 44%; Homestake Mining
Co., 8 points to 196; International Business Machines, 5%
points to 122; Wright Aero, 1% points to 20; Universal Leaf
Tobacco, 2% points to 37%, and United States Steel
preferred, 1% points to 86.
Railroad shares led the early upswing on Thursday, and
while they lost part of their gains later in the day, the final
prices were slightly higher than the preceding close. Industrials on the other hand, sagged under profit taking and
practically all active groups gave way to some extent. Some
of the less active issues held a part of their early gains but
many of the advances in the general list were erased or greatly
reduced. The changes on the side of the advance included
Allied Chemical & Dye,2% points to 103%; American Hide
& Leather pref., 2% points to- 37%; American Metals pref.,
5 points to 47%; American Steel Foundry pref., 3 points to
69; Beatrice Creamery, 3 points to 78; Bricyrus Erie pref.,
6 points to 63; Celanese Corp., 2% points to 24%; Central
Railroad of N. J., 4 points to 77; Delaware & Hudson,
2% points to 66; Eastman Kodak,23
/
8 points to 753's; Louisville & Nashville, 2% points to 463
4; New York & Harlem
(5), 3 points to 115 and United States Leather A,2% points
to 22%.
Specialties and oil shares were the strong stocks on Friday
and both groups showed modest gains as the market closed.
In the general list prices were inclined toward irregularity,
and while the trend was downward during part of the session,
the closing quotations were slightly above the lows for the
day. Industrial stocks were moderately strong and copper
shares showed an inclination to move to higher levels, though
the latter group lost part of its gains before the close. A ong
the day's advances were Associated Drygoods 1 pref., 2
points to 48; Brooklyn Manhattan Transit, 2 points to 33%;
General Mills, 2% points to 99%; Houston Oil, 1% points
to 223
%; Illinois Central pref., 3 points to 37%; Liggett &
Myers pref., 5 points to 132; New York & Harlem, 3 points
to 118; Norfolk & Western, 2% points to 150; Reading Co.,
3 points to 43; Tide Water Oil pref., 2% points to 37; United
States Leather prior pref., 5% points to 64%, and Wilson
& Co.,2% points to 49. The market was steady at the close.
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE,
DAILY. WEEKLY AND YEARLY.
Eeek Ermed
May 19 1933.
Railroad
Stocks,
State,
Number of and Miscall. Municipal &
Bonds.
Shares.
Poen Bonds.
2,273,617
3,151,760
3,291,711
4,7114,300
4,112,720
3,279,582
Saturday
Monday
Tuesday
Wednesday_ _
Thursday
Friday
Tote,
$5,859,000
7,236,000
7,680,000
12,044,000
11,o54,000
9,180,000
51,708,000
2,728,000
3,063,000
3,531,000
2,378,000
2,474,000
20.9113.870 553.453.000 515.882.000
Sales at
New York Stock
Exchange.
Stocks-No. of shares_
Bonds.
Government bonds_ _ _
State & foreign bonds_
Railroad & misc. bonds
Total
Total
Bond
Sales.
$8,175,000
11,451,000
11,743,800
17,979,000
15,897,000
12,297,000
808,000
1,487,000
1,000,800
2,404,000
1,865,000
643,000
58.007.600 $77.342.800
Week Ended May 19.
1933.
United
States
Bonds.
Jan. 1 to May 19.
1932.
1932.
1933.
4,986,144
178,172,722
145,576,081
36,007.600 $21,457,600
15,882,000 25,222,000
63,453.000 13,608,000
$226,978,400
287,008,000
701,153,900
5305,588,900
297,828,000
589,519,300
20,903,870
377,342.600 $80,287,800 $1,215 228,300 51,192.936,290
DAILY TRANSACTIONS AT THE BOSTON, PHILADELPHIA AND
BALTIMORE EXCHANGES.
Boston.
Week Ended
May 19 1933.
Baltimore.
Philadelphia.
Shares. Bond Sales. Shares. Bond Saks. Shares. Bond Sales.
31,100
11,800
5,000
6,000
8.000
1,000
Saturday
Monday
Tuesday
Wednesday
Thursday
Frlday
32,828
48,294
52,375
68,884
81,925
12,295
52,000
Total
278,181
$19,000
215,846
513,000
19,921
530.900
9013 '777
520 150
2M1 754
ten
18.078
51320
pr.,,,
sawalr roviassel
7.000
6,000
3,000
1,000
28,454
33,472
33.903
64,445
51,514
8.058
$10,500
1,500
1,000
200
2,754
4,240
3,167
3,001
2,726
3,133
Volume 136
THE CURB EXCHANGE.
Trading on the Curb Exchange has been fairly brisk this
week, and with the possible exception of a brief sagging
period on Thursday and again on Friday the trend has generally been toward higher levels. There has been some realizing in evidence from time to time and a moderate amount
of short covering was apparent on Wednesday. Industrial
stocks have attracted a goodly part of the speculative attention, though there was also a strong demand for the public
utilities toward the latter part of the week. On Saturday,
trading was somewhat mixed in character and the general list
decidedly irregular. Considerable profit taking was apparent
which brought lower prices for a number of the specialties
and other trading favorites. Public Utilities were irregular,
Electric Bond & Share moving up a point after opening
lower and American Gas & Electric easing off a point following a higher opening. In the industrial group, Aluminum
Co.of America sold fractionally lower, while Armstrong Cork
showed a gain of 4 points on a small turnover. Oil shares
were off on the day and mining stocks and investment trusts
were down. Curb issues moved forward during the late
trading on Monday, a brisk rally canceling the selling movement of the early dealings The features of the day's transactions were Hazel Atlas Glass which extended its gains about
6 points and Pepperell Mfg. Co. which jumped about 7
points. Glen Alden Coal also was in sharp demand and
advanced 2 points. Specialties were strong, Armstrong Cork,
Buckeye Pipe Line, Crown Cork & Seal and Deere were the
most active stocks of the day. Public utilities were off due
to profit taking during the early dealings but steadied near
the close of the session.
Leading specialties and other volatile issues advanced up
to 2 or more points on Tuesday, though practically all
groups participated in the upswing to some extent. Public
utilities were prominent in the advance, Electric Bond &
Share moving forward about 2 points and American Gas &
Electric registering a similar gain. Aluminum Co. of
America forged ahead about 5 points, Pepperell made a
further gain of 5 points and the Swift stocks had sharp
advances. Hazel Atlas Glass continued its forward movement on merger reports and Bell Tel. of Canada improved
nearly 5 points. Great Atlantic & Pacific Tea Co., on the
other hand, was extremely weak and dropped back about
634 points to 175. Mining shares were generally strong but
oil stocks were weak. Sharp advances all along the line
featured the trading on Wednesday, the covering by shorts
aiding the forward movement of 2 or more points. Power
stocks were strong and shot upward to about 3 points, many
prominent issues registering new tops before the close. The
outstanding shares among the latter were Electric Bond &
Share and American Gas & Electric, both being in sharp
demand throughout the session. Industrials and specialties
also were unusually active as issues like Hiram Walker and
Aluminum Co. of America moved rapidly forward. Celanese
1st pref. also attracted considi raole speculadve attention
and closed with a gain of 2 points. Mixed movements
characterized the dealings on the curb market on Thursday
the trading showing considerable improvement during the
forenoon while heavy selling was in evidence during the later
transactions. Columbia Gas pref. was particularly weak
and receded about 4 points and stocks like Electric Bond &
Share, American Gas and Consolidated Gas of Baltimore
showed moderate declines. In the industrial group, Aluminum Co. of American dipped more than a point below its
previous close and stocks like Babcock & Wilcox and John
Deere were under moderate selling pressure. Glen Alden
Coal was the strong spot and broke through to a new high
for the movement. Hazel Glass, Singer Mfg. Company and
Chesebrough Mfg. Company also were in active demand
at higher prices. Oil stocks were steady but the dealings
were light.
On Friday oil shares were again in demand and a number
of the trading favorites in this group moved ahead to higher
levels. In the general list there was considerable irregularity
apparent with a mixture of gains and losses all along the
fine. Public utilities were down and most of the usual
Leaders of the group were off from fractions to a point or
more. American Gas, for instance, showed a loss of 2
points, Standard Gas pref. lost 6 points and Electric Bond
& Share corn., Columbia Gas pref. and American Light were
under pressure. In the industrial group gains and losses
were about evenly divided, Glen Alden Coal advancing a
point, while Aluminum Co. of America sagged about 2
points. The advances for the week were: American Gas &
3477
Financial Chronicle
Electric, 3234 to 3334; American Laundry Machine, 121%
% to 173
%;Commonto 1434; American Light & Traction, 163
1 to 651%; Consolidated Gas of Baltimore,
wealth Edison, 63%
54 to 5434; Cord Corp., 9 to 9%; Gulf Oil of Pennsylvania,
421% to* 4432; Humble Oil, 59 to 60; New Jersey Zinc, 431%
to 4434; Niagara Hudson Power, 434 to 11%; Pennroa,d
Corp., 21% to 3; Singer Mfg. Co., 129 to 13734; Swift & Co.,
17 to 211%; United Founders, 1 to 134, and United Light &
Power A, 434 to 434. Stocks showing losses for the week
included among others: Aluminum Co. of America, 64 to
63; American Beverage,23
% to 234; American Gas & Electric,
3234 to 3334; American Superpower, 41% to 434; Associated
Gas & Electric A, 1% to 134; Atlas Corp., 121% to 1134;
Brazil Traction & Light, 11% to 10%; Central States
% to 21%; Creole Petroleum, 55% to 51%; Deere
Electric, 23
& Co., 17 to 1534; Duke Power, 50 to 48%; Electric Bond &
Share, 231% to 23; Ford of Canada A, 8% to 834; Hudson
Bay Mining, 734 to 71%; International Petroleum, 131% to
123
%; Parker Rust Proof, 46 to 41; Pennsylvania Water &
Power Co., 5234 to 52; A. 0. Smith, 3634 to 361%; United
Gas Corp., 334 to 21%; United Shoe Machinery, 441% to 44,
and Utility Power, 134 to 1%.
A complete record of Curb Exchange transactions for the
week will be found on page 3504.
DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE.
Week Ended
May 19 1933.
Saturday
Monday
Tuesday_
Wednesday
Thursday
Friday
Total
Sales at
New York Curb
Exchange.
Stocks
(Number
of
Shares).
Bonds (Par Value).
Foreign
Foreign
Domestic. Gooernment. Corporate.
Total.
$196,000
93,000
457,000
342,000
177,000
181,000
$144,000 $2,768,000
168,000 3,305,000
188,000 4,965,000
133,000 5,316,000
138,000 4,919,000
94,000 3,379,000
2,649,189 $22,341,000 $1,446,000
$865.000 $24,652,000
308,030 $2,428,000
363,323 3,044,000
414,980 4,320,000
612,751 4,841,000
528,680 4,604,000
421,425 3,104,000
Jan. 1 to May 19.
Week Ended May 19.
1933.
1932.
1933.
1932.
2,649,189
2,241.488
Stocks-No. of shares_
Bonds.
$22,341,000 $21,539,000
Domestic
695,000
1,446,000
Foreign government
737,000
865,000
Foreign corporate
21,961,475
52,794,942
$335,024,000
13,713,000
17,743,000
$370,196,000
10,930,000
16,603,000
$24,652,000 $22,971,000
$366,480,000
$397,729,000
Total
COURSE OF BANK CLEARINGS.
clearings
this week will again show a decrease as
Bank
compared With a year ago. Preliminary figures compiled by
us, based upon telegraphic advices from the chief cities of
the country, indicate that for the week ended to-day (Saturday May 20), bank exchanges for all the cities of the United
States from which it is possible to obtain weekly returns will
be 3.0% below those for the corresponding week last year.
Our preliminary total stands at $4,519,793,138, against
$4,660,722,027 for the same week in 1932. At this center
there is a gain for the five days ended Friday of 8.7%. Our
comparative summary for the week follows:
Clearings-Returns by Telegraph.
Week Ending May 20.
New Yotk
Chicago
Philadelphia
Boston
Kansas City.St. Louis
San Francisco
Los Angeles
Pittsburgh
Detroit
Cleveland
Baltimore
New Orleans
'
1933.
1932.
$2,471,897,645 $2,373,816,608
163,097,527
190,859,793
199,000,000
218,000,000
152,000,000
168,000,000
44,402,190
54,852,273
51,800.000
55,300,000
88,300,000
75,739,000
No longer will re port clearings.
64,676,605
53,415,286
60,848,263
66,888,545
56,209,999
37,100,894
46,155,962
30,459,520
24,826,355
Per
Cent.
+8.7
-14.1
-8.7
-9.5
-19.1
-6.3
-14.2
-17.4
-88.7
-34.0
---34.0
Twelve cities, five days
Other cities, five days
$3,285,800,607
479,027,010
$3,401,845,858
583,464,135
-3.4
-17.9
Total all cities, five days
All cities, one day
$3,764,827,617
754,965,521
$3,985,309,993
675,412,034
-5.5
+11.8
Total all cities for week
54.519,793,138
$4,660,722,027
-3.0
Complete and exact details for the week covered by the
foregoing will appear in our issue of next week. We cannot
furnish them to-day, inasmuch as the week ends to-day
(Saturday) and the Saturday figures will not be available
until noon to-day. Accordingly, in the above the last
day of the week has to be in all cases estimated.
In the elaborate detailed statement, however, which we
present further below, we are able to give final and complete
results for the week previous, the week ended May 13. For
that week there is an increase of 3.4%, the aggregate of
clearings for the whole country being $4,059,527,819, against
$3,927,845,073 in the same week in 1932. Outside of this
city there is a decrease of 13%, the bank clearings at this
3478
Financial Chronicle
center recording a gain of 9.7%. We group the cities according to the Federal Reserve districts in which they are located,
and from this it appears that in the New York Reserve
District, including this city, the totals show an increase
of 9.7%, but in the Boston Reserve District there is a loss of
8.7%, and in the Philadelphia Reserve District of 11.3%.
In the Cleveland Reserve District the totals record a contraction of 39.8%,in the Richmond Reserve District of 1.3%
and in the Atlanta Reserve District of 3.8%. In the Chicago
Reserve District the diminution is 16.6%, in the St. Louis
Reserve District 11.9% and in the Minneapolis Reserve
District 4.9%. The Kansas City Reserve District shows a
loss of 23.8%, the Dallas Reserve District of 7.0% and the
San Francisco Reserve District of 12.6%.
In the following we furnish a summary of Federal Reserve
districts:
SUMMARY OF BANK CLEARINGS.
Week Ended May13 1933.
1933.
Federal Reserve Dlsts.
$
191 Boston....12 cities
170,696.762
2nd New York_ _12 3,142,626,862
3rd Philadelphia 9 "
219,000,000
6th Cleveland_ -. 5 "
38,332,855
5th Richmond_. 6 "
24,275,881
6th Atlanta_...10 "
27,703,009
7th Chicago_ _._ 17 "
187,573,493
6th St. Louis_ 4 "
52,800,880
9th Minneapolis 7 "
43,991,186
10th KansasCity 9 "
47,295,365
11th Dallas_._ _ 5 "
23,042,361
12th San Fran_ _13 "
82,190,054
Total
109 19996
Outside N. Y. City
Canada
108.07
Dec.
1932.
$
187,020,119
2,864,712,309
247,000,000
83,7183101
24,600904
28.800.000
224,873,790
59,000,000
46,283,970
62,079,387
24,776,742
94,079361
1931.
284,107,700
237,703,301 +19.5
$
431,264,811
6,694,867,038
542,000,000
153,405!66
43,868,000
49,688,911
606,010365
136900,000
84,367,050
128,486,951
40,815,122
203,605,418
358,219342
389,524,272
We now add our detailed statement, showing last week's
figures for each city separately for the four years:
Week Ended May 13.
Clearings at1933.
1932.
First Federal Reserve Dist rict-Boston
Maine-Bangor
501,090
423,100
Portland
849,863
2,103,025
Mass.-Boston.. 170,696,762 187,023,119
Fall River_ _
560.541
668,939
Lowell
280,977
382,672
New Bedford
548,096
620,334
Springfield_ _
2,303,629
3.217.458
Worcester
1,002,693
2,282,997
Conn.-Hartford.
8,134,987
7,866,880
New Haven_ _ _
2,905,234
5,768,992
R
ovidence
6,253,000
7,760,300
N.11.-Mancter_
427,721
673.403
Inc.or
Dec.
+18.4
-59.6
-8.7
-16.2
-26.6
-11.6
-56.1
+3.4
-49.6
--19.4
-36.5
1931.
656.156
3,146,805
370,577,471
1,038,097
665,196
1,040,466
5,194,624
2,804,641
9,928,168
7,521,174
12,632.100
504,884
Week Ended May 13.
Clearings at1933.
Inc. or
Dec.
1932.
1930.
716.636
4,052,404
431,264,811
1,250,028
1,017,893
1,282,106
4,925,131
3,753,683
15,160,322
7,692,862
16,437,800
729,142
Eighth Federa I Reserve Dis trIct-St. Lo U18-Ind.-Evansville_ No clearings available.
Mo.-St. Louis..
52,800.000
59,800,000 -11.7
16,254,418
17,769,051 -8.5
Tenn.-Memphis
9,855,430
10,345,442 -4.7
111.-Jacksonville No clearings ;only one ban k open.
Quincy
288,000
588,063 -51.0
194.464,593 218,791,219 -11.1 415,609,782 488.282,818
Second Feder at Reserve D istrict- New YorkN. Y.-Albany._
11.856,326
4,453.264 +166.2
10,220,703
6,767,828
Binghamton
753,472 +12.8
849,556
1,4(16,233
1,465,579
Buffalo
21,912,784
25,893,040 -15.4
40,732,631
55,357,120
Elmira
416,125
614,514 -32.3
1,029,852
916,792
Jamestown......
670,174 -63.2
246,730
1,188,484
1,347,643
New York.... 3,142,626,862 2,864,712,309 +9.7 6,013,325,474 6,694,867,036
Rochester
5,675,931
8,889,294 -17.6
9,929.270
11,585,852
Syracuse
3,924,413
3,580,111 +9.6
4,882,736
5.701,744
Conn.-Stamford
2,222,548
2,593,442 -14.3
3,078,474
3,701,551
N. J.-Montclair
326,632
459,480 -28.9
678,318
829,701
Newark
14,380,987
21,989,251 -34.6
30,412,906
36,941,327
Northern N..7.
21,825,410
26,301,283 -17.0
39,872,395
46,708.849
+9.0 6,156,757,476 6,866,191,022
Third Federal Reserve DI. trIct-Phila delphi aPa.-Altoona. _
269,599
624,123
428,970 -37.2
1,402.263
Bethlehem.. Clearing how has suspend ed clear Inge temperer ily
Chester
276,461
404,365 -31.6
1,012,302
1,119,423
Lancaster
540,224
1,008,520 -46.4
2,703,203
348,071
Philadelphia.. 219,000.000 247,000,000 -11.3 428,000.000 542,000,000
Reading
965,093
2,324,274 -58.5
7,322,454
4,111,001
Scranton
1,629,990
2,080,245 -21.6
4,358.344
4,898,069
Wilkes-Barre_ _
1,290,723
1,627,994 -20.7
3,238,555
3,241,180
York
965.591
1,252,623 -22.9
1,868,700
2,519,953
N.J.-Trenton._
3,259,000
3,023,000 +7.8
7.538,000
5,975.000
Total(9 cities)Fourth Feder
Ohio-Akron _ _
Canton
Cincinnati
Cleveland
Columbus
Mansfield
Youngstown..._
Pa.-Pittsburgh -
228,196,681
261,399,962 -12.7
al Reserve D istrict-Clev elandNo clearings available at present •
No clearings available.
32,399,138
39,713.827 -18.4
38,332,855
63,716,201 -39.8
6,942,900
8,025,500 -13.5
939,799 -11.6
831,145
No clearings available.
86,986.766 -25.5
84.827,582
460,134,492
1,355,220
196,370,511
Ninth Federal Reserve DI* trIct-Minn eapolls
Minn.-Duluth
1,851,318
2,102,021 --11.9
Minneapolis- 43,994,186
46,283,970 -4.9
Bt. Paul
12,972,795
15,918,985 -18.5
N. D.-Fargo
1,452,124
1,888,410 --23.1
S. D.-Aberdeen.
475,742
645,958 --26.4
295,629
Mont.-Biutnss 394,551 --25.1
Helena
2,304,789
1,847,060 --24.8
3,139,252
63,980,595
20,014,804
2,005,843
893,121
570,920
2,667,974
4,639.047
84,367,050
26,340,322
2,102,044
998,165
669,364
2,970,328
-8.3
93,272.509
122,086,320
Tenth Federal Reserve Dis trict-Kans as Clt
Neb.-Fremont..
39,744
192,972 -79.4
Hastings
No clearings available at p resent.
Lincoln
1,760,529
2,260,771 -22.1
Omaha
19,967,519
23,921,711 -16.5
Kan.-Topeka..
1,382,826
1,394,161 -0.8
Wichita
1,647,356
3,805,081 -56.7
Mo.-Kan. City.
47,295,365
62,079,387 -23.8
St. Joseph-2,413,412
2,711,084 -11.0
Colo.-Colo.Spgs.
586,743
692,427 -15.3
Pueblo
509,194
804,844 -36.7
290,859
360,079
3,283.629
36,640,053
2,708,676
5,177,759
84,373,616
4,156,654
1,018,942
1,251,171
3,751,490
45,928,200
3,007,224
7,191,114
128,486,951
5,820,023
1.291,634
1,687,046
97,862,438 -71.1
138,881.359
197,523,761
Eleventh Fede ral Reserve District-Da HasTexas-Austin...
737,871
949,659 -22.3
Dallas
23,042,361
24,776,742 -7.0
Ft. Worth__
4,442,672
4.600,000 -1.3
Galveston
1,344,847
1,682,000 -20.1
La.-Shreveport.
2,080,154
2,789,907 -25.4
1,625,686
37,056,925
6,740,859
2,056,000
3,622,927
1,631,986
40,815,129
9,388,158
2,875,000
4,971,618
51,102,397
59,681,871
Total(7 cities).
Total(9 cities)-
Total(5 cities).
63,346,583
28,307.323
69,080,955
123,687,482
162,542,661
Total(32 cities)
427,106,432
Fifth Federal Reserve Dist rIct-Richm ondW.Va.-Hunt'on
444,186 -84.1
70,415
Va.-Norfolk.
2,729,901 -26.5
2,006,000
Richmond _ _
24,600,004 -1.3
24,275,881
S.C.-Charleston
827.826 -16.7
689,791
Md.-Baltimore _
51,301,750 -32.0
34,863,257
D. C.-Washlon
19,510,440 -55.6
8,656,131
690,811
3,498,970
33,681,358
1,664,931
75,389,992
25.898.859
1,288,572
4,185,742
43,866,000
2,372,000
99,821,575
26.934,994
140,724,921
178,468,883
Total(10 cities)
70,561.475
.69,983.816
99,414,107 -29.0
85,689.512 -18.3
3,000,000
23,757,754
49,688,911
1,748,710
1,413,712
15,618,119
21,320,816
1,900,074
-8.8
42,235,199
11,394,000
954,194
38,223,971
18,035,025
7,860,368
6,173,145
6,766,195
203,605,419
3,220,908
2,184,120
1,998,525
1,984,600
Week Ended May 11.
Clearings at-
180,723
43,913,842
186,983,483
315,350,497
Total(6 cities).
34,698,308
Total(13 cities) 146.964.706 182,783,656 --I9.6 275,119,035 350,966,087
Grand total (109
4,512,846,857 4,639,783,612 --2.7 8,997,025,929 10542 347,820
cities
Outside New York 1,370,219,995 1,775,051,303 --22.8 2,983,700,455 6,894,887,038
Sixth Federal Reserve D Ifft rict-Atlant aTenn.-Knoxville
2,611,383 +25.8
2.000,000
3,284,289
10,437,230 -19.4
Nashville
12,718,235
8.414,511
Ga.-Atlanta. _
40.557,410
28.800,000 -3.8
27,700,000
747,544 +12.0
1,373,389
Augusta
837,424
526,534 -2.2
728,052
Macon
514,949
13,763,686
9,143,48.5 -17.6
Fla.-Jacksonville
7,537,069
13,734,353
8,362,357 +11.9
Ala.-Birminghm
9,354,332
1,316,433
731,067 +26.8
Mobile
929,312
Miss.-Jackson_ _ Clearing Ho use not functi oning a t present.
235,722
124,060 -27.9
89,485
Vicksburg
La.-NewOrleans
37,260,203
24,205,852 -56.9
10,439,870
129,199.119
199,382,093 -28.1
143,333,620
31,847,605
Twelfth Feder al Reserve D 'strict-San Franc locoWash.-Seattle _
19,524,789
23,157,235 -15.7
31,923,529
Spokane
3,820,000 , 5,909,000 -35.4
8,682,000
Yakima
252,602
395,312 -36.1
849,486
Ore.-Portland..
19,916,012
27,027,612 -26.3
36,503,662
Utah-S.L.City.
7,829,732
9,260,411 -15.4
14,183,989
Calif.-L.Beach.
2,960,313
3,137.046 -5.6
5,498,869
Los Angeles... No longer wi I report deal I nes•
Pasadena
2,525,877
3,063,225 -17.5
5,613,238
Sacramento _
4.276,370
8,276,239 -48.3
8,459,401
San Diego_ _
No longer 10 I report clear ings
San Francisco_
82,190,054
94,079,551 -12.6 150,194,880
Ban Jose
1,171,448
1,546,981 -24.3
2,361.873
Santa Barbara_
848,825
1,476,248 -42.5
1,779,438
Santa Monica_
780.865
1.016,264 -23.2
1,721,294
Stockton
887,819
1,197,708 -27.5
1,927,000
CanadaMontreal
Toronto _
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William _ _
New Westminster
Medicine Hat_ _
Peterhof ough_ _ _
Sherbrooke
Kitchener
Windsor
Prince Albert_ __ _
Moncton
Kingston
Chatham
Sarnia
Sudbury
Total(5015158).
136,000,000
39,940,296
19,074.995
856.997
570,474,158
67,361,387
153.405,456
17,266,400
2,089,706
92,100,000
23,513,518
12,930,374
129,400,889
79,197,848
1933
59,429,151
110,468,140
14,556,700
1,697,387
1930.
88,502,556 -10.5
Total(4 cities)-
Total(12 cities)
Total(12 cities) 3,226,264.304 2,958,909,634
1931.
Seventh Feder al Reserve D Istrict-Chi ccgoMich.-Adrian _- Clearing Ho use not functi onIng a t present.
Ann Arbor
497,626
546,181 -8.9
720,795
875,406
Detioft
7,388,342
59,947,764 -87.7 125,451,831 191,206,949
Grand Rapids.
881,703
2,949,394 -70.1
4,544,963
5.879,785
Lansing
293,800
1,125,200 -73.9
3,948,524
3.417,000
Ind.-Ft. Wayne
403,814
1,287,308 -68.6
3,402,343
3,906,551
Indianapolis_ _ _
9,406,000
13,767,000 -31.7
21,331,000
25,553,000
Bend_
South
__
547,232
1,550,015 -64.7
3,030,909
3,344,936
Terre Haute_
2,867,426
3,527,992 -18.7
4,750,209
5,549,890
Wts.-Milwaukee
10,822,009
16,403,205 --34.0
24,725,971
31,972,442
Ia.-Ced. Rapids Clearing Ho use not functi oning a I present.
Des Moines.._
3,544,597
5.076,836 -30.2
7,734,800
8.913,349
Sioux City_
1,987,022
2,532,677 -21.5
4,047,383
6,531,999
Waterloo
No clearings available.
111.-BloomIngton
312,487
1,203,129 -74.0
1.854,857
2.210,093
Chicago
187,573,493 224,873,790 -16.6 473,542,747 606,040,295
Decatur
504,453
543,661 -7.2
1,162,858
1,559,277
Peoria
2,234,783
2,441,811 -8.5
3,425,333
4,885,888
Rockford
565,522
567563 -0.4
2,278,148
3,707,834
Springfield_
767,994
2,230,953 -65.6
2,280,184
3,213,163
Total(17 cities) 230,678.303 340.574,479 -32.3 688,230,855 908.767,847
1930.
S
%
--8T
370977,471
-IF9
6913,325,474
--11.3
428,000,000
-39.8
110,448440
--1.3
33,531,358
-18
40,557,410
473,542,747
--16.6
92.100,000
-11.9
63,980,595
--4.9
-23.8
54,373,616
--TO
37,058,925
--129
150,199,880
4,059,52T819 3,927,845,073 +3.4 7,897,758,618 2314,407366
916,900,957 1,063,132,764 -118 1,884,433,142 2,419,540369
32 tales
May 20 1933
77.856,574
95,241,862
57,022.236
13,013,328
4,213,008
4,055,997
2,151,723
3,158,681
4,944,187
1,511,321
1,391.057
2,187,613
3,289,419
3,152,796
261,959
320.717
1.190,801
442,190
816,241
477,552
444,339
170,160
515,912
723,479
722,825
2,362,082
230,684
587,010
471.316
375,564
340,502
464,565
284,107,700
1932.
Inc. or
Dec.
1931.
1930.
+10.7
+17.3
+88.3
+9.8
-1.9
-23.1
+9.0
-8.8
-3.3
-1.0
+4.4
-4.6
-8.7
-9.9
-8.2
-0.8
-18.2
-10.3
+1.5
-14.0
-5.2
-0.1
-11.3
+1.7
-9.0
+3.2
-17.0
-2.6
-22.2
-20.4
-20.5
+3.8
8
128,651,670
114,058,065
48,787,446
14,206,245
6,759,708
4.845,993
2,842,869
4,873.604
6,435,191
2,271,860
1,733,170
362,656
4,620,327
3,056,376
364.757
449,411
1,694,326
669,816
891,726
662,713
501,913
227,450
678,683
668,637
928,378
3,612,656
307,918
736,648
657,976
526,643
490,730
743,792
139,625,237
126,406,908
37,926,055
17,679,384
7,089,605
6,699,431
3,068,701
6,089,044
8,225,627
146,960
2,461,191
3,101,681
8,560,999
3,929,200
507,478
560,489
2,154,735
916,553
1,129,611
778,921
939,119
298.178
857,066
979,604
1,112.382
5,187,968
365,555
1,063,355
700,580
654.507
693.607
1.616,661
237,783,381 +19.5
358,219,142
389,524,273
70,311,856
81,202,755
30,281,689
11,848,734
4,293,516
5,274,266
1,973,780
3,462,217
5,113,198
1,526,409
1,332,978
2,292,340
3,604,639
3,499,776
285,371
323,260
1,454,882
492,800
804,291
555,289
468,496
170,264
581,896
711,270
794,645
2,288.711
278,037
602,478
606,066
471,602
428,463
447,707
THE ENGLISH GOLD AND SILVER MARKETS.
We reprint the following from the weekly circular of
Samuel Montagu & Co. of London, written under date of
May 3 1933:
PRICES ON PARIS BOURSE.
Quotations of representative stocks on the Paris Bourse
as received by cable each day of the past week have been
as follows:
GOLD.
The Bank of England gold reserve against notes amounted to £185.938.526
as compared with the previous
an
£1.974,631
ult.,
on the 26th
increase of
Wednesday.
The gold acquired by the Bank during the week amounted to only
£49,638.
The amounts of bar gold available daily in the open market varied but
supplies on the whole were considerable. Some was taken for a destination
not disclosed, but there has been a keen demand from the Continent,
as a result of which the price ruled well above franc parity.
Owing to the arrangement by London bankers of a £30,000.000 credit
for the French Government, the French exchange showed marked appreciation with a consequent rising tendency in the sterling price of gold.
Quotations during the week:
Equivalent Value of
Per Fine
£ Sterling.
Ounce.
14s.0.04d.
121s. 4d.
Apr. 27
10.44d.
13s.
6d.
1225.
Apr. 28
138.10.10d.
122s. 9d.
Apr. 29
13s. 8.76d
123s. 9d.
May 1
138.7.55d.
1245. 8d.
May 2
13s.9.2041
May 3
123s. 5d.
138.9.68d.
123s. 0.83d.
Average
The following were the United Kingdom imports and exports of gold
registered from mid-day on the 24th ult. to mid-day on the 1st inst.:
Exports.
Imports.
£26,175
Netherlands
£1,075,464 Netherlands
145,522
2.209,120 France
France
20,000
Belgium
18,570 Belgium
531,908
Switzerland
69,351 Italy
31,000
1,050,441 Switzerland
British South Africa
8,259
British India
649,530 Other countries
British Malaya
64,826
Canada
298,015
Australia
61,271
New Zealand
29.101
Other countries
23,912
£762.864
£5,549,601
Gold shipments from Bombay last week amounted to about £1.067,000.
The SS. Britannia has £315,000 for London and the SS. Mooltan carries
£752,000, of which £385,000 is consigned to London, £83,000 to Amsterdam, and £284,000 to New York.
SILVER.
Silver quotations have again shown wide fluctuations. After the fall
of 1 15-16d. recorded on the 26th ult., there was a recovery of 1 11-16d.
on the following day, buying by America and speculators being resumed.
On the 1st inst. prices reached 21:40. for cash and 20 9-16d. for two
months' delivery, rises of f,p.‘d. and 11-16d. respectively as compared with
the previous working day. This advance was, however, due more to an
absence of sellers, but subsequently the weakness of the dollar enabled
America to offer silver, causing an easier tendency, which was particularly
marked yesterday, when business was done well below the fixed prices
In the afternoon.
The higher prices have attracted some profit-taking sales and there have
been small offerings from the Continent, but China and the Indian Bazaars
have not been active.
The following were the United Kingdom imports and exports of silver
registered from mid-day on the 24th ult, to mid-day on the 1st inst.:
Exports.
Imports.
Germany
£22,342 United States of America-- £353,327
12,800
Soviet Union (Russia)
18,360 Iraq
5.000
Netherlands
12,340 Barbados Island
2,720
British India
25,737 Germany
3,820
Canada
13,793 Other countries
Australia
14,137
British South Africa
3,644
Other countries
6,967
May 13 May 15 May 16 May 17 May 18 May 19
1933. 1933. 1933. 1933. 1933. 1933.
Frans.. Franca. Francs. Francs. Francs. Francs.
11,600 11,700 11,700 12,000
Bank of France
1,820
1,620
1,600
1,610 1-,5815
Banque de Paris et Pays Bas--388
383
388
378
Banque d'Union Parlaienne.__
294
291
292
285
-iii3
Canadian Pacific
__-18,845 18,310 18,300 18,310
Canal de Suez
2,410 2,425
2,425
2,450
Cie Distr d'Electricitle
2,2311
2,190
2,190
2,260
2,170
d'Electricitie
Generale
Cie
67
57
57
57
--CM Generale Transatlantique_
500
496
495
496
Citroen B
1,180
1,170
1,170
1,160 1:1E8
Comptoir Nationale d'Escompte
200
200
210
200
200
Coty Inc
341
342
341
342
-Courrieres
810
805
805
801
Credit Commercial de France
4,750 4,770 4,770 4,780 4:740
Credit Fonder de France
2,200 2,210 2,220 2,190 2,190
Credit Lyonnais
2,400 2,420 2,440 2,440 2,410
Distribution d'Electricitie la Par
2,750 2,800 2,800 2,790 2,790
Eaux Lymmais
719
732
719
727
Energie Electrique On Nord___..
965
976
965
975
Energie Electrique On Littoral
57
85
re
57
55
French Line
93
92
92
93
93
HOLTGaleries Lafayette
1,010 1,020 1,030 1,040
1,010
DAY
Gas le Bon
610
600
580
600
570
Kuhlmann
810
820
820
820
781
L'Air LiquIde
960
967
960
960
Lyon (P.L. M.)
-WI
350
340
340
340
Mines de Courrletes
440
440
440
440
440
Mines des Lens
1,300 1,310 1,320 1,320 1,270
Nord Ry
885
898
885
875
Orleans By
1,010 1,030 1.040 1,010 filo
Pads, France
99
99
99
100
Pathe Capital
1,120 1,130 1,130 1,126
1,110
Pechiney
66.90
67.30
67.80
66.60
66.10
3%
Rentes
107.30 107.50 108.80 107.80 107.70
Rentes 5% 1920
78.10 77.70
77.80 77.90 78.90
Rentes 4% 1917
84.30 84.20 85.50 84.90 84.10
Rentes 434% 1932 A
1,590 1,600 1,590 1,570 1,590
Royal Dutch
--1,299
1,300
1,285 1,229
Saint Gobain C & C
1,595 1,569
1,569
1,585
Schneider & CM
-Bio
500
500
500
490
Societe Andre Citroen
79
81
79
80
80
Societe Flancalse Ford
146
147
151
152
143
Societe Generale Fonciere
2,865 2,790 2,795 2,790
Societe Lyonnaise
589
580
589
589
Societe Maraellaise
18,300 18,300 18,300 18,200 18:iioii
Suez
166
164
168
168
Tubize Artificial Silk pref
880
870
-iiii
870
890
Union d'Electricitle
190
190
190
190
190
Union des Mines
76
74
75
75
Wagon-Lits
£377,667
£117,320
Quotations during the week:
IN LONDON.
YORK.
IN NEW
Bar Silver per Oz. Std.
(Cents per Ounce .999 Fine).
Cash Dello. 2 Mos. Dent!.
353-10.
Apr. 27----20 3.16d.
Apr. 26
2030.
Apr. 28---20d.
354c.
20d.
Apr. 27
353c.
Apr. 29--19 d.
19%d.
Apr. 28
May 1- __ _20 d.
360.
20 9-16d. Apr. 29
May 2__-.20 d.
36 3-160.
204d.
May 1
3511-160.
May 3--- A9 -16d.
May 2
19 d.
Average---20.042d.
20. 73d.
The highest rate of exchange on New York recorded during the period
from the 27th ult, to the 3d inst. was $3.95M and the lowest $3.70.
INDIAN CURRENCY RETURNS.
(In Lacs of Rupees)April 22. April 15. April 7.
Notes in circulation
17650
17633
17636
Silver coin and bullion in India
11143
11125
11128
Gold coin and bullion in India
2603
2612
2612
Securities (Indian Government)
3896
3904
3896
The stocks in Shanghai on the 29th ult. consisted of about 149,100.000
ounces in sycee, 245.000,000 dollars and 8,460 silver bars, as compared
with about 163,900.000 ounces in sycee, 245,000,00 dollars and 8.820
silver bars on the 22d ult.
Statistics for the month of April last are appended:
Bar Silver
Bar Gold
Cash
2 Mos.
Per Fine.
Delivery.
Delivery.
Ounce,
Highest price
2014d.
207-16d.
1228.9d.
17Vid.
1710.
Lowest price
1188.
18.440d.
Average
18.494d.
120s. 7 70d.
ENGLISH FINANCIAL MARKET-PER CABLE.
The daily closing quotations for securities, &o., at London,
as reported by cable, have been as follows the past week:
Wed.,
Sat.,
Thurs.,
Fri.,
Tues.,
Mon.,
May 13. May 14. May 16. May 17. May 18. May 19.
18 11-16d. 185,0.
per oz__ 1811d.
18340.
18 3-16d. I90.
123s.2d. 1233.10.
silver'
Gold, p.fine oz. 12341.6d. 1320.30. 1230.3d. 124s.
7234
731f
7314
7214
7154
Consold. 234%
7234
British 3 %99
9934
9934
9934
99
9334
W. L
British 4%10914
10954
10934
108
10914
10934
1960-90
French Rentes
87.30
67.80
66.90
86.60
•(in Parir)3% tr. Holiday 66.10
French War L'n
(in Paris)5%
Holiday 107.30
107.80
108.80
107.70
107.50
1920 amen
The price of silver in New York on the same days has been:
.Silver In N. V.,
per oz. OW
3479
Financial Chronicle
Volume 136
33A
3214
3234
3334
3211
33.44
THE BERLIN STOCK EXCHANGE.
The Berlin Stock Exchange resumed trading on Friday,
Apri129 1932,after having been closed by Government decree
since Sept. 18 1931. Closing prices of representative stocks
as received by cable each day of the past week have been
as follows:
May
13.
130
Reichsbank (12%)
98
Berliner Handels-Gesellschaft (5%)
52
Commerz-und PrIvat-Bank A. G
Deutsche Bank und Disconto-Gesellschaft 62
60
Dreadner Bank
Deutsche Reichabahn(Ger Rya)prat(7%)- 97
26
Aligemeine Elektrizitaets-Gesell(A E(1)
109
Berliner Kraft u Licht (10%)
112
Dessauer Gas (7%)
98
Gesfuerel(4%)
102
Hamburg Eiektr-Werke (834%)
156
Siemens & Halske(7%)
126
IC Farbenindustrie(7%)
180
Salzdetfurth (9%)
197
Rheinische Braunkohle(10%)
116
Deutsche ErdoeI(4%)
75
Mannesmann Roehren
18
Hapag
19
Norddeutscher Lloyd
May May May May May
19.
18.
17.
16.
15.
Per Cent Of Par----128 130 130 129
128
94
95
96
97
98
51
51
51
52
52
56
57
58
60
60
56
57
58
59
59
97
97
97
97
97
28
27
27
26
26
109
110 109
108
108
112 110 109
107 109
91
91
92
96
93
104 103
100 104 105
158
155 168 155
151
130 129
131
129
124
179 177
178
177 179
193 192
189 185 188
117 112
118
112 116
75
75
76
75
72
18
18
18
18
17
19
20
19
19
18
In the following we also give New York quotations for
German and other foreign unlisted dollar bonds as of May 19
1933:
Bid.
25
Anhalt 7s to 1946
Argentine 5%, 1945. 3100
58
Pieces
123
Antioquis 8%, 1948
AustrianDetaultedCoupons 170
Bank of Colombia,7%,'47 128
Bank of Colombia.7%,'48 128
35
Bavaria 6146 to 1945
Bavarian Palatinate Cons.
23
Cit. 7% to 1945
Bogota (Colombia) 614.'47 1 2014
f 514
Bolovla 6%. 1940
Buenos Aires 13. 61 Scrip 110
Brandenburg Elec. 80. 1953 5111
Brazil Funding 5%,'31-'51 39
British Hungarian Bank
834s, 1962
/35
Brown Coal Ind. Corp.
63
fitis, 1953
Call (Colombia) 7%, 1947 1 1314
Callao (Peru) 73.4%, 1944 1 4!
Ceara (Brazil) 8%. 1947_ 1 7
City Savings Bank, Budapest, 7s, 1953
132
Deutsche Bk 8% '32 unst'd /76
Dortmund MUD UtU 6s.'48 28
141
Dulsberg 7% W 1945
Duesseldorf 7s to 1945 . 25
East Prussian Pr.65,1953. 461
European Mortgage & Investment nig, 1966
146
French Govt. 534s, 1937._ 110
French Nat. Ma1186.6e,"52 108
25
Frankfurt 78 to 1945
German At!. Cable 7s, 1945 56
German Building & Landbank 634%, 1948
28
Haiti 6% 1953
65
Hamb-Am Line 614s to '40 59
Hanover Harz Water VVka.
6%, 1957
24
Housing & Real Imp 7s.'46 28
Hungarian Cent Mut 7s'37 1 29
Hungarian Discount & Bechange Bank 7a. 196-3 129
Flat price.
Btds
Ask.
29 Hungarian Defaulted Coup 140
Hungarian Rai Bk 734s,'32 f 71
33
Koholyt 634s. 1943
25 Karstadt 60, 1943 C-D__ -- 13
---- Land M Bk, Warsaw 80.'41 41
29 Leipzig Oland Pr. 610:46 52
29 Leipzig Trade Fair 78, 1953 2412
38 Luneberg Power, Light &
45
Water 7%, 1948
28 Mannheim & Palat 78, 1941 42
30
2114 Munich 78 to 1945
614 Mimic Bk,Hessen,7s to'45 25
20 Municipal Gas & kiec Coro
Recklinghausen, 75, 1947 25
531±
40 Nassau Landbank 6145,'38 82
Nat Central Savings Bk of
Hunga., 7145, 1962____ 136
36
National Hungarian & Ind.
134
Mtge. 7%, 1948
68
1414 Oberpfalz Elec 7%, 1946_ 301
612 Oldenburg-Free State 7%
25
to 1945
Porto Alegre 7%, 1988....,. 11414
3312 Protestant Church (Ger25
Many) 78, 1946
__-30 Prov Bk Westphalia 65,'33 180
1712 Rhine Wastph Elec 7s 1936 42
28 Rio de Janeiro 6%, 1933_ _ 1 16
4812 Rom Cath Church 634e,'46 4712
R C Church Welfare 711. '46 3712
4712 Saarbruecken M Bk 6s,'47 74
---- Salvador 7%, 1957
I 13
113 Santa Cattuulna (Brazil)
8%, 1947
28
1 15
60 Santander (Colom) 7a, 1948 1 10
Sao Paulo (Brazil) 6a, 1947 1 13
31 Saxon Public Works5%,'32 1 50
70 SUOD State Mtge 65, 1947 49
62 Stem & Halske deb 65.2930 270
South Amer Rys 6%, 1933 98
28 Stettin Pub UM 75, 1946_ 35
._ f 25
35 Tucuman my 2s, 1551
31 Tucuman Prey. 75, 1950._ 1 36
Yesten Elea By 7s, 1947_ 211
30
30 Wurtenberg 7s to 1945_ _
Ask.
_
76
35
18
47
56
2612
48
44
33
29
30
64
38
36
3312
28
1614
32
82
45
18
5012
39
76
14
16
13
14
_52
300
100
37
2612
40
2414
33
3480
Financial Chronicle
minercialand WscellatteansBoys
Toronto Stock Exchange.-Record
of transactions at
the Toronto Stock Exchange, May 13 to May 19, both inclusive, compiled from official sales lists:
Friday
Sales
Last Week's Range for
Sale
of Prices.
Week.
Par. Price. Low. High. Shares.
Stocks-
1
8
3%
15.55
735
3
41
13%
556
Bank:lommerce
mPerial
dontreal
Soya Scotia
10150
roronto
100 136
100 142
100 181
100
100
100
Loan and TrustInron & Erie Mortgage 100
2011 mid
•
•No par value.
7753
19
34
24
29%
4
35
155
3%
751
12%
7
45
71%
3
132
142
171
232
134
164
20
120
434
790
25
633
30
55
4
20
5
35
135
11
1,700
5
12% 71,103
15% 9,669
110
734
15
50
12
71%
335
145
136
143
181
23235
141
168
7734 78
13
13
6
1
14%
25
1
35
1
2%
4
954
4
45
67
1%
113
41
190
10
38
42
120
123
151
228
12355
152
20
103
77
13
Mar
Jan
Feb
Mar
Mar
May
May
May
Mar
Mar
Feb
May
May
May
Apr
Apr
Apr
Apr
Apr
Apr
20
4%
25
30
4
35
135
5
12%
15%
8%
55
71%
3%
May
May
May
May
May
May
May
May
May
May
May
Jan
May
May
140
158
189
263
143
172
Jan
Jan
Jan
Jan
Jan
Jan
May 102
May 18
Jan
Jan
Toronto Curb.-Record of transactions at the Toronto
Curb, May 13 to May 19, both inclusive, compiled from
official sales lists:
Stocks
-
Sales
Friday
Last Week's Range for
Week.
Sale
of Prices.
Par. Price. Low. High. Shares.
Blitmore Hats corn
•
Brewing Corp corn
• 1.55
Preferred
•
Can Bud Breweries corn...'
8%
• 24%
Canada Maiting Co
Canada Paving corn
X
Canada Vinegars corn...
19%
•
Canadian Wineries
255
Can Wire Bound Boxes A_•
Distillers Corp Seagrams •
834
* 21
Dominion Bridge
DOM Motors of Canada-10
Dons Tar & Chem prat-100
355
1.25
934
8%
23
35
19
2%
554
651,
21
2%
10
4
160
1.75 2,225
1135 2.041
9% 2,007
24% 4,737
150
51
405
20
805
3
10
554
0% 18,013
542
24
275
255
15
10
Range Since Jan. 1.
Low.
Feb
Jan
Mar
Apr
Mar
May
Jan
Jan
Mar
4
Feb
14% Feb
155 Feb
10 May
3
.15
34
555
13%
34
13%
1%
High.
5
2
15%
935
24%
51
20
3
554
934
24
3
10
Feb
May
May
May
May
May
May
May
May
May
May
May
May
Jan
Apr
Apr
Mar
Mar
Apr
Apr
Mar
Tnn
331
1155
1534
11%
70
155
18
134 May
10 May
3 May
87 May
655 May
55 May
7 May
19 May
10 May
35 May
2234 May
12 May
May
May
Jan
May
May
May
May
May
May
Jan
May
1134 May
57
May
May
May
May
May
May
May
a...
Philadelp
hia Stock Exchange.-Record of transactions
at Philadelphia Stock Exchange, May 13
to May 19, both
inclusive, compiled from official sales lists:
Stocks-
Friday
Sales
Last Week's Range for
Sale
of Prices.
Week.
Par. Price. Low. High. Shares.
Bell Tel Co of Pa pref_..100
Budd (E G) Mfg Co
•
Preferred
100
Budd Wheel Co
•
Cambria Iron
50
Camden Fire Insurance_5
Con Tract of N .1
100
Electric Storage Batt__100
Fire Association
10
Horn & Hard (Ph) corn...'
Horn & Hard (NY) com.•
Insurance Co of N A __ _ _ 10
Lehigh Coal & Navigation
Lehigh Valley
50
Mitten Bk Sec Corp pf.25
Pcnnroad Corp v to
•
Pennsylvania RR
50
Penna Salt Mfg
50
Dela Dairy Prod met 25
Phils, Elea of Pa 3.5 prat__•
Millis Else Powe. prof.....25
Phila Rapid Transit_ _ 50
7% preferred
50
Phila & Rd Coal & Iron__•
Philadelphia Traetion .
_ _ 50
110% 10831
255
255
834
3
336
33
934
18
3734
25
2454
83
2151
3934 3951
8%
834
1434
134
134
2%
254
23
41% 4134
30
30
9836 9655
31
3055
254
2
4%
5
454
2034 2031
11055
275
231 5,500
1051
643
334 1,600
3336
733
1034
500
18
12
3951 1,267
2655
450
85
40
2151
100
3955 1,300
9
1.900
1834 1.593
155
100
3
16.400
2534 10,300
150
4134
30
258
9834
470
31
900
255
800
5%
450
555
691
21
500
Railroad Shares Corp-- _ _•
Reading RR
50
Reliance Insurance
10
Scott Paper
•
Seaboard Utilities Corp-•
Shreve El Dor Pipe L__25
Tacony-Palmyra Bridge.'
Tonopah-Belmont Devel _1
Tonopah Mining
1
7114
Union Traction
50
United Gas Impt corn__ _ _• 1854
Preferred
•
Victory Insurance Co_ __10
Warner Co
•
Westmoreland Inc
•
W Jersey & Seashore RR 50 40
156
40
451
37
51
3%
1934
55
"to
651
1851
93
434
1
555
40
BondsNlec & Peoples tr ctts 4545
Paotliner 1117 da
1027
1834 20
93
93
1%
20
40
25
4%
200
20
38%
1
620
4%
800
21
130
hi 1,900
35
900
734
700
1934 17,200
94
285
434
100
1
100
535
100
40
5
816,500
500
Range Since Jan. 1.
Low.
lejm
v0
Amisson's Ltd prof -100 19
ltandard Steel Cons coin...
335
3teel Co of Can corn
• 24
Preferred
26
rip Top Tailors corn
•
Preferred
100
rraYmore Ltd corn
•
Jnlon Natural Gas
•
434
Walkers (Hiram) corn '12
Preferred
• 14
Western Can Flour Mills.'
7
Preferred
100 50
Weston Ltd ((leo) pref_100
WinniDeg Electric corn_ _ _•
3
754
154
735
1035
755
5434
31
11
02
MV0mv100
vC
11
11%
234 Jan
7 May
8
Jan
5 May
102% May
16.85 May
7% May
155 May
3 May
14% May
42 May
14 May
13% May
555 May
15% May
534 May
25 May
10% May
86% Jan
16
Jan
535 Apr
57 May
11
May
14% Jan
36% May
11% May
45
Jan
12
2
74
855
8
30
1434
255
27
951
355
v=
57
May
May
May
May
May
May
May
May
Jan
Mar
Mar
Jan
Apr
Apr
Feb
Apr
Feb
May
Feb
,
OMW
CO
Cl
Internati Mill 1st pref__100
Internatl Nickel corn
•
Internatl Utilities A
•
B
•
Kelyinator of Can com_ _ _•
Lake of Woods Mill corn •
Laura Secord Candy cons_•
Loblaw Groceterias A_..__•
B
•
Maple Leaf Milling corn_ •
Preferred
100
Adassey-Harris corn
•
donarch Knitting pref_100
doore Corp corn
•
B
100
National Sewer Pipe A_ _50
Dnt. Equit Life 10% Psi 100
Page-Hersey Tubes com__•
Photo Engr & Electro- •
Pressed Metal corn
•
,
enmans Ltd
•
Riverside Silk Mills A_..__5
Russell Motor pref_ __100
23
11
10%
40
3
100
1
8
6
X
46%
5
25.1
16
934
51
1234
455
134
vMNOMMvMNN
vNM0N
6%
*
20
23
1,402 12% Feb
10
10
105
Feb
7
955 10% 4,141
6
Apr
40
40
35 40 May
235 2%
350
55 Mar
98% 100
175 80
Apr
1
1
150
% Jail
8
8
5
8 May
3
334 5,293
5
134 134
155 May
4
7
535
Mar
2
5
5
61
415 Mar
5
5
75
5 May
102% 102%
25 98
Jan
15.00 16.15 26,526 8.15 Mar
6
755
655
555 AM
1% 154
40
134 Mar
3
3
65
31 Mar
14% 14%
25
5
Mar
42
40
80 36
Jan
13% 13% 2,357 1035 Apr
13
13%
245 10% Mar
534 554
555
3 May
15
15%
125
5
Apr
451 535 3,105
235 Mar
22
75 20
25
Apr
10% 10%
385
5
Mar
86
86
5 70
Apr
15
15
25 14
Apr
5
5% 5%
5 May
54
57
647 40
Apr
185
1034 11
8
Apr
11
11
295
Apr
8
5 24
38% 3634
Apr
11% 1135
7
30
Mar
34
34
5 28 May
High.
May
Feb
Feb
Mar
Apr
Apr
Mar
Jan
Feb
Apr
Mar
Mar
4.....1.m15.2,2t3gwas-Ittti ggaggg..;55titiN112.1 ;54
9%
Low.
1
5
155
40
234
ji
5
1434
7
2654
1655
535
MONvWNt-4.000
CO
vNvMvN
B
21%
High.
Range Since Jan. 1.
CO
Dominion Stores corn.__ _•
Economic Investment_ _ _50
Ford Co of Canada A......•
Frost SU & Wire 1st pfd 100
General Steel Wares cons_•
Goodyr T & Rub pref....100
Great West Saddlery corn-•
•
Preferred
Gypsum, Lime & Alabast_•
Earn United Tbeat com_25
Hinde & Dauche Paper_ __•
Hunts Ltd A
•
Low.
1
102
Jan
2% May
25 20
Apr 32 May
3% Jan
70
7 May
491 80
Apr 100
Jan
175
Apr
1
255 May
20 10
Feb 19 May
25 18
Jan 20% May
19,894
7% Mar 13% May
27,070 55o
Jan
1.40 May
275
1
Apr
3% May
6
60
Jan 1655 May
735 14% Apr 21% May
a
3% Feb
5% May
25 10% Apr 1434 May
240 20
Feb 31
May
1,200
1% Mar
5% May
10
7 May 20 May
2.702
2% Feb
534 May
204 13
Apr 30
Apr
410
355 May
355 May
143
2% Mar
9% May
20 26 May 26 May
7
25
Apr 11
May
275
255 Mar
535 May
1,360
3
Apr
755 May
192 46
Apr 72 May
245
3
Apr
5% May
955 Apr 14% May
60
225 10
May
Mar 18
7 100
Feb 122 May
41 51
Mar 5634 Jan
2,703
1% Mar
5 May
335
% Mar
4 May
920
6% Apr 10
Jan
15 79
May 96
Jan
8,685
Apr 16% Jan
0
730
3% Feb
8% May
460
Jan
2
755 May
45
255 May
34 Apr
2,359 54
Mar 103 May
Jan 181
93 170
Mar
2
45
Apr
4% May
8 May 20
92
Feb
Friday
bates
Last Week's Range for
Sale
of Prices.
Week.
Stocks (Concluded) Par. Price. Low. High. Shares.
Dufferin Pay & Cr St corn•
1% 155
25
EnglLsh Elec of Can A_ •
10
10
5
B
•
3
3
20
Goodyear T & Rub com__•
84
30
87
Hamilton Bridge com----•
6
534 634
345
Honey Dew corn
•
34
54
55 2,465
•
Preferred
7
7
40
Humberstone Shoe com.. •
1854 19
35
Imperial Tobbacn ord____5
9%
934 10
385
Montreal L H & P Con.s. •
3355 3431
960
National Breweries com_ •
2234 2255
305
National Steel Car Corp...'
10
12
635
Power Corp of Can com __• 1034 10
11
230
Rogers Majestic
134 134
110
Robert Simpson pref..A00
65
62
105
Robinson Cons Cone
•
8
8%
65
Service Stations corn A ...-•
751
534 8
1,369
Preferred
100 30
30
25
30
3hawinigan Wat & Pow...* 1334 1355 1434
573
3tand Pay ds Matis cons_ •
234 255
45
roronto Elevators cam _ __• 25
2254 27
610
United Fuel Invest pref 100
554
656 555
35
Waterloo Mfg A
3
•
355
30
0111rinsh American On
• 1155 1035 1134 9,672
3rown Dominion Oil Co...•
334
234 331
255
:mperial 011 Ltd
• 1154 11
1155 16,010
:nternational Petromem • 1455 1454 1555 4,638
deColl Frontenao 011 corn*
1035 1134
170
Preferred
100 70
70
70
15
North Star Oil corn
5
154
1.55 155
100
lupertest Petroleum ord_ • 1755 1655 18
142
Preferred A
100
95
95
2
*No par value.
0
Abitibi Pr&Pap6% pfd_100
255
2% 235
Alberta Pao Grain prof..100
30
32
Beatty Bros common__ •
7
7
7
Bell Telephone
RIO 9835 98 99
Blue Ribbon Corp com___•
2%
2
2%
655% preferred
50 19
18
19
Brantford Cord 1st pref_25
19% 20%
Brazilian T L & Pr com___• 12% 1134 1334
Brewers & Distillers
• 1.40 1.20 1.40
B C Packers com
•
3%
3% 331
Preferred
100 16
16
16%
B C Power A
•
1931 21
B
•
5% 5%
Building Products A
1434 14%
•
Burt(F N) Co corn
25 31
29% 31
Canada Bread corn
4%
•
4% 5
B prof
100
15
15
Canada Cement corn
•
534
5
555
Preferred
• 25% 23
26
Canada Steamship cons_ •
355
3% 3%
Preferred
100
7
8
Can Wire & Cable A
•
26
26
B
•
11
11
Canadian Canners com_ •
5% 5%
Convertible preferred_ •
7
7
736
1st preferred
100
72
70
Can Car & Fdry corn
5%
•
5% 5%
Preferred
25
1335 1455
Can Dredging & Dockcom•
17
18
Can General Elea corn_ _50
122 122
Preferred
50
55
56
Can Indust Alcohol A____•
4%
3
5
B
•
4
4
3
Canadian 00 corn
955
•
9%
9
Preferred
100
85
85
Canadian Pacific Ry_ __ _25 14% 14% 15%
Cockshutt Plow corn
7%
•
7% 8%
Consolidated Bakeries_ •
6%
6
7
Consolidated Industries....
1% 134
Cons Min ds Smelting_ __25 100% 96 103
Consumers Gas
174 175
100 174
Cosmos Imp Mills cons_ __•
4
4
4
Crow's Net Pass Coal 100
8
9
Range Since Jan. 1.
May 20 1933
High.
114% Jan
2% May
1034 May
334 May
343.4 Jan
1134 Mar
19
Mar
40 May
2655 May
159
Jan
24
Apr
4034 May
9 May
1835 May
155 May
3 May
2534 May
4134 May
42
Mar
10354 Jan
33
Jan
255 Jan
6
Jan
535 May
2235 Jan
134 May
40
434
3835
1
5
3054
55
155
1255
2034
9934
434
155
554
55
21%
OR
May
Jan
May
May
May
Jan
Feb
Apr
Jan
Jan
Jan
May
Jan
Mar
Jan
Jan
Itl.
* No par value.
National Banks.-The following information regarding
National banks is from the office of the Comptroll
er of the
Currency, Treasury Department:
CHARTERS ISSUED.
Capital.
May 8-The Mid-City National Bank of Chicago, Chicago,Ill__ 5400,000.
President, Ben Mills; Cashier, W.0. Schultz.
Succeeds Mid-City Trust & Savings Bank of Chicago,
May 11-The Windsor County National Bank of
Windsor.
Windsor, Vt----------------------------------President, H.P. McCiary; Cashier, Greald H.
Cabot.
Will succeed the State National Bank of Windsor and
Windsor County Trust Co., Windsor, Vt.
May 13-The First National Bank in Colfax, Colfax, Iowa
President, F. Si. Boyd; Cashier, H. Si. Bell.
Will succeed the First National Bank of Colfax, Iowa.
50,000
25.000
VOLUNTARY LIQUIDATIONS.
May 13-The First National Bank of Casey, Ill
50000
,
Effective May 10 1933. Liquidating agent, Henry
lrs National Bank in Casey,
SuP
cc
i.bC
aeed
rtiecc
y,FIill.t
yaa
te
he
No. 13673.
May 13-The Delaware County National Bank of Muncie,Ind.- 300,000.
Effective May 10 1933. Liquidating committee: J. L.
Kimbrough, J. C. Mansfield and H.0.Almy,care of
A htshoerbla
iq
du dya ihneg bank.
Merchants National Bank of Muncie.
by
Ind., No. 2334, and the Merchants Trust & Savings
Bank of Muncie, Ind.
CONSOLIDATION.
May 12-The First National Bank of Wills Point, Tex
50,000The State National Bank of Wills Point, Tex
100,000.
Consolidated under the Act of Nov.7 1918. as amended
Feb. 25 1927, under the charter and corporate title
of"The First National Bank of Wills Point," Charter
No. 5018, with capital stock of 350,000 and surplus
of $10,000.
Voi1J,fir
Auction Sales.—Among other securities, the following,
not actually dealt in at the Stock Exchange, were sold at auction
in New York, Boston, Philadelphia and Buffalo on Wednesday of this week:
By Adrian H. Muller & Son, New York:
$ per Share.
Shares. Stocks.
2.75
9.500 Seton Leather Co.. no par
7
100 MaeMarr Stores. Inc., common, no Par
$5 lot
25 New Vora Boat Service Corp., common, no par; 25 pref., par $100
$310108
$100
par
148 First National Bank of Fort Lee (N. J.),
$50 lot
80 Lowe Paper Co. (N. J.), pref.. par $100
$10 lot
130 Central National Bang of Leonia (N.J.), par $100
Per Cent.
Bonds—
:
due
bonds,
4
106
1
May
Income
$1,000 North Shore Country Club, Inc.,
15 shares Florence W. MacCarthy Co.. prof., Par $100; 3 ribs. American
$23 lot
Woman's Realty Corp., pref., par $100
By R. L. Day & Co., Boston:
Shares. Stocks.
15 Sanford Mills
12 Berkshire Fine Spinning Associates, preferred, par $100
6 Arlington Mills, par $100
10 Royal Weaving Co., par $100
25 Arlington Mills, par $100
7 Nashua & Lowell RR., par 5100
10 National Aviation Co
20 Dennison Mfg. Co., 7% preferred, par $100
4,200 Chatham Associates Trust etts. beneficial int., par $100
100 Saco Lowell Shops common
100 Saco Lowell Shops 2nd pref.. par $100
25 New England Public Service Cos. $6 cony. prof
72 Western Massachusetts Companies
12 Fall River Gas Works, par $25
5 Columbian National Life Insurance Co., par $100
60 S. S. Pierce & Co., Dar $100
Per Cent.
24
30
26
so
26%
99
$81 lot
21
$100 lot
1
3%
15
2634
22
102
150
By Barnes & Lofla.nd, Philadelphia:
$ per Share.
Shares. Stocks.
134
10 Educational Pictures, Inc.,8% cum. preferred, par $100
$2 lot
6 United States Stores Corp., common, no par
$3 lot
20 Chester Valley Securities, Inc., class A prof., par $12.50
$4 lot
100 Chester Valley Securities, Inc., trust ctts. for common, par $1
4534
31 Philadelphia National Bank, par $20
2934
10 Corn Exchange National Bank & Trust Co., par $20
7
20 Real Estate-Land Title & Trust Co., par $10
300
2 Fidelity-Philadelphia Trust Co. par $100
15
12 Germantown Trust Co. par 110
2434
25 Penna. Co. for Insur. on Lives &Granting Annuities, par $10
68
17 Camden Safe Deposit & Trust Co., Camden, N. J., par $25
834
25 John B. Stetson Co.. common, no par
Per Cent.
Bonds—
1
1940
$1.000 Waterloo Cedar Falls & Northern Ry.6% ctts., due
$3,000 Huntingdon & Broad Top Mountain RR.& Coal Co.5% ells., 1940-.528 lot
93
annuity
perpetual
Valley
Lehigh
6%
RR.
$1.000
1
$1.000 Jackson Cons. Traction 1st 5s, 1934
By A. J. Wright & Co., Buffalo:
Shares. Stouts.
5 The Como Mines
1,000 Adargas Mines
$ Per Share.
$0.20
$0.50 lot
DIVIDENDS.
Dividends are grouped in two separate tables. In the
first we bring together all the dividends announced the
current week. Then we follow with a second table in
which we show the dividends previously announced, but
which have not yet been paid.
The dividends announced this week are:
Name of Company.
When
Per
Cent. Payable.
Books Closed
Days Inclusive.
•
Railroads (Steam).
$41,5 July 1 Holders of rec. June 15
Albany Jr Susquehanna (s-a)
(semi-annual)
$4% Jan. 1 Holders of roe. Dec. 15
$2% July 1 Holders of rec. June 12
Atlanta Birm.& Coast, pref. (s-a)
July 1 Holders of rec. May 31
tke
Bangor & Aroostook, cont.(quar.)
$154 July 1 Holders of rec. May 31
Preferred (guar.)
May 20 Holders of rec. May 18
Delaware & Bound Brook
$2
Terman Rys., pref.(final)
34% July 1
Kansas Oklahoma & Gulf-3% June 1 Holders of rec. May 20
Series A 6% cum. prof.(s.-a.)
3% Juno 1 Holders of rec. May 20
Series B 6% non-cum. pref.(s.-a.)......
1% June 1 Holders of roe. May 20
Series C6% non-cum. pref.
July 1 Holders of rec. June 1
$2
Mobile & Birmingham prof.(s.-a.)
West Jersey & Seashore% June 1 Holders of rec. May 15
6% special guaranteed (s.-a.)
6% special guaranteed (1.-a.)
114% Dec. 1 Holders of rec. Nov. 1.5
Public Utilities.
June 1 Holders of rec. May 20
Sc
American Elect. Secur., pref
Binghamton Gas Wks.,034% pt.(guar.) 1.565 June 1 Holders of rec. May 20
Brooklyn & Queens Tran Corp., Pt. (flu') $115 July 1 Holders of rec. June 5
Coast Counties Gas & El.6% pt.(qu.)
1)4% June 1 Holders of rec. May 25
July 1 Holders of rec. June 15
Connecticut Elect Service,cont. (guar.)- 75c
Holders of rec. June 15
90e July
Control. Gas of Baltimore corn.(guar.)._
Holders of roe. June 15
Preferred A (guar.)
$114 July
Holders of rec. June 15
Preferred D (guar.)
$1% July
Holders of rec. June 15
Preferred E (guar.)
$1% July
Consol. Gas, El. Lt. & Pow. Co.of Bait
Holders of rec. Juno 15
900 July
Common (guar.)
Holders of rec. June 15
5% preferred series A (guar.)
134% July
Holders of rec. June 15
6% preferred series D (guar.)
14% July
5%% preferred series D (quar.)
14% July 1 Holders of rec. June 15
134% June 1 Holders of rec. May 25
Detroit City Gas,6% pref.(guar-)
% July 15 Holders of rec. June 15
Duquesne Light Co.5% lat pref.(guar )
Electric Bond & Share Co. $6 pref.(qu.) $114 Aug. 1 Holders of rec. July 8
$5 preferred (guar.)
$114 Aug. 1 Holders of rec. July 8
Engineers Public Service Co. preferred— Div. ac ton def erred.
June 1 Holders of rec. May 20
$4
EsEleX & Hudson Gas Co.(s -a.)
$114 July 1 Holders of rec. June 15
Georgia Power Co.$8 pref.(guar.)
$114 July 1 Holders of rec. June 15
$5 preferred (guar.)
June 1 Holders of rec. May 20
$4
Hudson County Gas Co. (s.-a.)
$1% July 1 Holders of rev. June 14
Kansas City Pow & Lt., Pf. B.,(quar.)..
$11-4 June 15 Holders of xec. June 1
Laclede Gas Light Co.common (quar.)
$215 June 15 Holders ot rec. June 1
5% preferred (i.-a.)
Marconi Wireless Telegraph Co.—
Ordinary bearer
American dep. rots, for ord. bearer...
Ordinary registered
Amer. dep. rots. for ord. registered..
July 1 Holders of rec. June 20
MemphisNat. Gas Co.,$7 pref. (guar.)_
June 1 Holders of rec. May 25
Milwaukee Gas Lt. Co..7% Pt- (quar.)—
June 1 Holders of rec. May 22
misgssippi Vail. Pub. Serv., 7% pt.(qu.)
July 1 Holders of roe. June 21
6% preferred B (guar.)
June 1 Holders of rec. May 16
pref.
(quar.)...
7%
Co.
Nebraska Power
June 1 Holden] of rec. May 16
6% preferred
June 30 Holders of rec. June 10
Co
Tel.
&
Tel.
England
New
June 14 Holders of roe. June 2
N. V.& Queens Elec. Lt. dr Pow.(guar.)
June 1 Holders of rec. May 19
Preferred (quar.)
(guar.)
July 1 Holders of rem June 15
pref.
$6
Lt.
New York Pow. &
June 28 Holders of rec. June 15
Co. (guar.,_
New York Transportation
Northwestern Public Service Co.
134% June 1 Holders of rec. May 20
7% preferred (guar.)
134% June 1 Holders of roe. May 20
6% preferred (guar.)
$2% June 1 Holders of rec. May 20
&
Gas
El.(8.-a.)---.
Passaic
Paterson &
a) _ _
52% June 1 Holders of rec. May 25
Pawtucket Gas of N.J.,5% pf.(g75e July 1 Holders of rec. June 15
Pennsylvania W.& Pow. Co., com.(1111-)
$114 July 1 Holders of rec. June 15
Preferred (guar.)
$115 July 1 Holders of roe. June 1
Philadelphia Co. $6 pref.(quar,)
151h July 1Holders of rem June 1
$5 pref erenee
3481
Financial Chronicle
I
Name of CvnsPalstl.
Per
When
Shari. Payable.
Books Closed
Days Inclusive.
Public Utilities (Concluded).
Peoples Telep. Corp.(Pa.), pref.(qu.)-- $IN June 1 Holders of rec. May 31
Pub. Sere. Co. of N. if., $6 pref.(qu.)_. $1% June 15 Holders of rec. May 31
$1,14 June 15 Holders of rec. May 31
$5 preferred (guar.)
70c June 30 Holders of roe. June 1
Public Service Corp. of N.J. corn.(qtr.).
2% June 30 Holders of rec. June 1
8% preferred (guar-)
134% June 30 Holders of roe. June 1
7% preferred (guar-)
ti June 30 Holders of rec. June 1
$5 preferred (guar-)
50e June 30 Holders of rec. June 1
Cumulative preferred (monthly)
Public Service El.& Gas Co.7% (qu.)- 134% June 30 Holders of rec. June 1
$134 June 30 Holders of rec. June 1
55 preferred (guar.)
4334 June 1 Holders of rec. May 25
Savannah Gag Co.,7% pref.(guar.)June 1 Holders of rec. May 20
$4
South Jersey Gas, El. & 'Frac. (s.-a.)
Standard Gas dr El. 54 pref.—Div. omitt ed.
May 31 Holders of rec. May 20
2%
(quar.)
prof.
Tampa Gas Co.,8%
134% May 31 Holders of rec. May 20
7% preferred (guar.)
134% June 1 Holders of rec. May 20
Texas Utilities Co. (quar.)
10e July 1 Holders of rec. May 29
United Corp. common (quar.)
750 July 1 Holders of rec. May 29
Preferred (guar-)
30e June 30 Holders of roe. May 31
United Gas Impt. Co.common (guar.).$134 June 30 Holders of me. May 31
15 preferred (guar.)
% July 1 Holders of rec. June 10
Virginia Pub.Serf..7% pref.(guar.)114% July 1 Holders of rec. June 10
6% preferred (guar.)
Washington Water Power $13 pref.(qu.)- $1% June 15 Holders of rec. May 25
West Ohio Gas Co. prof—Div. omitted.
Fire Insurance Companies.
Agneultural Ins. (Watertown) (guar./—
Glen Falls Ins. Co.(guar.)
50c July
40c July
1 Holders of rec. June 24
1 Holders of rec. June 15
Miscellaneous.
June 1 Holders of rec. May 15
25o
Abbotts Dairies, Inc., com.(guar.)
June 1 Holders of rec. May 15
lot dr 2d preferred (guar.)
$154 June 1 Holders of rec. May 15
Allegheny Steel Co., pref.(guar.)
2c June 1 Holders of rec. May 15
American Business Shares,Inc.(guar.).June 15 Holders of rec. June 2
$2
American Cigar Co., corn.(guar.)
51% July 1 Holders of rec. June 15
Preferred (guar.)
June 10 Holders of rec. May 31
10e
American Factors. Ltd.(monthly)
American & General Securities Corp.—
7150 June 1 Holders of roe. May 18
Class A common (guar.)
75e June 1 Holders of rec. May 18
43 preferred (quar.)
25e July 1 Holders of rec. June 15
American Hawaiian Steamship (guar.)
10e June 1 Holders of rec. May 20
American Laundry Mach. Co. (quar.)...
July 1 Holders of roe. June 15
50e
American Stores Co.(guar.)
500 July 3 Holders of rec. June 5
American Sugar Refining Co., com.(qu.)
$134 July 3 Holders of rec. June 5
Preferred (guar.)
154
July 1 Holders of roe. June 10
Armour & Co. of Del., pref.(guar.)
June 30 Holders of rec. June 20
Associates Investment Co., corn.(guar.) $1
June 1 Holders of roe. May 20
(guar.)
pref.
7%
%
1h
Co.,
Packing
Beech-Nut
June 1 Holders of rec. May 20
8c
Beneficial Loan Society (guar.)
July 31 Holders of rm. July 15
$1
Bon-Ami Co., class A (guar.)
50e July 1 Holders of rec. June 10
Class B (guar.)
400 June 1 Holders of rec. May 15
Canada Vinegars, Ltd., corn. (guar.).—
Canadian Canners, Ltd.. 1st Pt.(guar.). $1% July 3 Holders of rec. June 15
July 3 Holders of rec. June 15
50
2d preferred
$114 July 4 Holders of rec. June 17
Canadian Cottons, Ltd., prof.(quar.)June 29 Holders of rec. June 8
$1
Chesebrough Mtg. (guar.)
50e June 29 Holders of rec. June 8
Extra
June 30 Holders of rec. June 10
Colt's Patent Fire Arms Mtg. Co.(qu.) _ 250
50c June 1 Holders of rec. May 20
Columbus Auto Parts Co., pref.(quar.).
Commercial Investment Trust Corp.—
July 1 Holders of rec. June 5a
50e
Common (guar.)
?al 34 July 1 Holders of rec. June 50
Cony. prof. opt. see.(guar.)
25e Juno 1 Holders of rec. May 20
Corno Mills Co. (guar.)
Daniels & Fisher Stores, 634% Pt.(qu.) 134% June 1 Holders of rec. May 20
The July 1
Deposited Bank Shares, series B-1
15c June 1 Holders of rec. May 15
Doctor Pepper Co. (guar.)
July 3 Holders of rec. June 15
51
Dominion Textile Co., Ltd., corn.
$154 July 15 Holders of rec. June 30
Preferred (guar-)
50e June 15 Holders of roe. May 25
E.I. duPont de Nemours & Co..com.(gu)
$134 July 25 Holders of rm. July 10
Debenture stook (guar-)
3734c June 15 Holders of rec. May 31
El Do_ado Oil Works (guar-)
Farbenindust.(I.G.) Am.dep.com.bearer $154 May 23 Holders of rec. May 20
16c June 29 Holders of rec. June 15
Fifth Ave. Bus Securities Corp.
(quar.)Gmewl
5134 June 15 Holde.s of tee. June 5
Co., preferred (guar.)
July 3 Holders of rec. June 15
Goodyear T. dr Rub. of Can., corn.(qu.) 60e
5134 July 3 Holders of rec. June 15
Preferred (guar.)
Hathaway Baseriee, Inc.—Pref. div.omi tted.
200 June 15 Holders of rec. June 10
Hawaiian Sugar Co.(monthly)
Hearst Consol. Publishers, A pref.(qu.) _ 4344c June 15 Holders of rec. May 31
134% July 1 Holders of rec. June 24
Ifickorc Oil, 7% prof. (guar.)
25e June 10 Holders of rec. May 31
Honolulu Plantation Co.(monthly)
15e July 15 Holders of rec. June 20
International Harvester Co.,com.(qu.)
June 15 Holders of rec. May 25
Intl. Proprietaries, Ltd.,01. A (guar.)— Mc
International Salt Co., cap.stoca (guar)- 3734e July 1 Holders of rec. June 15
Johnson Stephens & Sh.Shoe,corn.(qu.)- 1234e June 1 Holders of rec. May 25
50c June 15 Holders of rec. May 31
Katz Drug Co., COM.(guar.)
$154 July 1 Holders of rec. June 15
Preferred (guar.) _
50c June 15 Holders of rec. JUna 1
Lake Shore Mines, Ltd.(guar.)
500 June 15 Holders of rec. June 1
Extra
Lily-Tulip Cup Corp. common (quar.).. 37340 June 15 Holders of rec. June 1
$134 July 1 Holders of rec. June 20
Undo Air Products, prof.(guar.)
4350 June 1 Holders of rec. May 30
McClatchy Newspaper 7% pref.
5134 June 1 Holders of rec. May 22
McCohan Sugar Refg. dr Mol., pf.(qu.)June 1 Holders of rec. May 25
.5o
NIant Agriculture, Ltd.(monthly)
June 1
May Hosiery Mills, Inc., pref.(guar.).-- 25
EN June 1
Mayer (0.) & Co., 1st pref.(guar.)
June 1
$2
2d preferred (guar-)
June 15 Holders of rec. June 1
500
Mayflower Associates (guar.)
Ally 1
$154
Monaghan Victor Co., pref.(quar.)
Montreal Cottons, Ltd., pref.(guar.).- - $134 June 15 Holders of rec. May 31
750 June 15 Holders of ree May 31
Montreal Loan & mtge. Co.(quar.)---500 June 15 Holders of rec. May 27
Morreli(John, & Co., Inc., com.(qu.).$134 June 30 Holders of rec. June 20
Morris Finance Co., corn. A (quar-)
June 20 Holders of rem June 20
27340
Common B (guar.)
134% June 30 Holders of rec. June 20
7% preferred (guar.)
250 June 15 Holders of me. June 5
Muskogee Co. common (guar.)
$114 June 1 Holders of rec. May 23
6% preferred (guar.)
15o July 1 Holders of rec. June 10
National Finance Corp. of Am.com.(gu)
150 July 1 Holders of rec. June 10
6% preferred (guar-)
me July 1 Holders of rec. June 10
6% preferred (extra)
50c June 15 Holders of rec. May 31
National Sewer Pipe (guar.)
134% July 1 Holders of rec. June 10
North Central Texas 011 pref.(quar-)250 July 1 Holders of rec. June 9
Northern Pipe Line Co. cap. stk.(s.-a.)June 20 Holders of rec. June 10
20c
Oahu Ry.& Land Co.(monthly).—
Sc June 15 Holders of rec. June 0
Oahu Sugar Co., Ltd.(monthly)
June 1 Holders of rec. May 17
20
Oceanic 011 Co.(guar.)
$1.14 June 15 Holders of rec. June 3
Ohio 011 Co. pref. (guar.)
July 1 Holders of roe. June 15
$2
Omnibus Corp. pref.(guar.)
300 June 30 Holders of rec. June 20
Penney (J. C.) Co.,common
5134 June 30 Holders of rec. June 20
Preferred (guar.)
June 30 Holders of rec. June 20
300
Penney (J. C.) Co.(guar.)
$134 June 30 Holders of rec. June 20
Preferred (guar.)
July 1 Holders of rec. June 8
Peoples Drug Stores, Inc., COM.(quar.) 250
$134 June 15 Holders of rec. June 1
Preferred (guar.)
$134 July 1 Holders of rec. June 10
Pet Milk Co., pref.(guar.)
June 1 Holders of rec. May 31
50
Pioneer Mill Co., Ltd.(monthly)
July 15 Holders of rec. July 1
$1
Quakers Oats Co., com.(guar.)
5134 Aug. 31 Holders of rec. Aug. 1
Preferred (quar.)
June 15 Holders of rec. May 31
Raybestos-Manhattan, Inc., corn.(qu.)- 150
3734e June 15 Holders of rec. May 31
Reeves(Dan.), Inc., corn.(guar.)
$154 June 15 Holders of roe. May 31
6(4% preferred (guar.)
50o June 1 Holders of rec. May 20
Reliance International Corp.$3 wet_ _
25e June 15 Holders of rec. May 31
Schitt Co. common (guar.)
$151 June 15 Holders of rec. May 31
Preferred (guar.)
150 June 15 Holders of rec. June 1
Seaboard Oil Co. of Del.(guar.)
Standard 011 Co. of Kentucky (guar.).-25e June 15 Holders of rec. June 1
% June 1 Holders of rec. May 15
(qu.)
prof.
8%
Clothier
Strawbridge &
2510 tr.
Suez Canal
$1.41 May 19
Swedish Ball Bearing. Amer.shares
June 30 Holders of rec. June 10
Tacony-Palmyra Bridge, cl. A (guar.).-- 25e
Tex 0-Kan Flour Mills Co.7% pf.(qu.). 134% June 1 Holders of rec. May 15
Financial Chronicle
3482
Name of Company.
When
Per
Cent. Payable.
Miscellaneous (Concluded).
Texas Gulf Sulphur Co.(quar.)
25c June
Thrift Stores, Ltd., corn.(Initial)(qu.)._
10e July
Tuckett Tobacco Co., Ltd., pref.(qu.)- - 5135 July
United Stores Corp. pref.(quar.)
8115c June
Viking Pump Co..$2.40 pref. (guar.). _ _ 60e
June
Ward Baking Corp. rum. pref. (guar.)._
25e July
Wolverine Tube Co.7% pref. (quar.,
8754c June
Books Closed
Days Inclusive.
Name of Company.
May 20 1933
When
Per
Share. Payable.
Books Closed
Days Indwells.
Public Utilities (Concluded).
Escanaba Pow.& Trao.6% pref.(qui- 155% Aug. I Holders of reo. July 27
134% Nov. 1 Holders of reo. Oct. 27
6% Preferred (guar.)
6% preferred (guar.)
154% 2-1-'34 Holders of rec. Jan. 27
Federal Lt. dc Trac.. pref.(quar.)
$134 June 1 Holders of rec. May 15a
Florida Pow. Corp., 7% pref. A (quar.)_ 131% June 1 Holders of rec. May 15
7% preferred (guar.)
8735c June I Holders of rec. May 15
Frankford & Southwark, Phila. City
Passenger 11Y
5455 July 1 Holders of rec. June I
Below we give the dividends announced in previous'weeks Germantown Passenger Ry.,(quar.).. 51.31M July 1 Holders of rec. June 15
Green & Coats St., Phila.Pass. Ry.(qu.) 5155 July 1 Holders of rec. June 22
and not yet paid. This list does not include dividends an- Gulf States Utilities Co.,$6 pref. (all.).- $155 June 15 Holders of rec. June 1
$534 preferred (quar.)
nounced this week, these being given in the preceding table.
8134 June 15 Holders of rec. June 1
June I Holders of rec. May 16
Hackensack Water Co.(s-a)
75e
Hungtington Water. 7% pref. (guar.)._
% June 1 Holders of rec. may 29
When
Per
Books Closed
155% June 1 Holders of rec. May 29
6% preferred (guar.)
Share. Payable.
Name of Company.
Days Inclusive.
Indianapolis Water Co.,5% pref. A (qu.) 155% July 1 Holders of rec. June 10a
Industrial & Power Securities (quar.)
15e June 1 Holders of reo. May 1
Railroads (Steam).
Kentucky Utilities Co.7% prlor pt.(qu.) 8754e May 20 Holders of rec. May 1
Sept. I Holders of reo. Aug. 20
$455
Atlanta& Charlotte Air Line(s-a)
Key West Eleatic, 7% preferred
June 1 Holders of reo. May 15
$1
Boston & Albany
$255 June 30 Holders of rec. May 31
Lake Superior Dist. Pow.,6% pt.(quar.) 135% June 1 Holders of rec. May 15
52.125 July 1 Holders of ree. June 20a
Boston & Providence (guar.)
June 1 Holders of rec. May 15
7% preferred (guar.)
134%
Quarterly._52.125 Oct. 1 Holders of rec. Sept. 20s Lehigh Power Securities. corn. (quar.)._ 25e
June 1 Holders of rec. May 10
Catawissa, 1st pref. (s.-a.)
$1.13 May 22 Holders of rec. May 11
Lexington Water Co., 7% pref. (quar.). 134% June 1 Holders of rec. May 20
$1.13 May 22 Holders of rec. May 11
and preferred (s.-a.)
Lincoln Tel. & Tel.. 6% pref. A
155% May 20 Holders of rec. Apr. 30
$3
Cheeapeake & Ohio. preferred (s.-a.)._
July 1 Holders of reo. June 8
G.Se E.(Del.), A&B cm.
(quar.)Loisvle (qu.) 4335c June 24 Holders of rec. May 31
Clue. New Orl.& Tex. Pat. pref.(quar.) $134 June 1 Holders of rec. May 16
Middlesex Water (quar.)
June 1 Holders of rec. May 25
750
Cleveland & Pittsburgh, guar (guar.)._ 87340 June 1 Holders of rec. May 10
155% June 1 Holders of rec. May 15
Milwaukee El. By.& Lt.6% p1. (qu.)
Special guaranteed (guar.)
500 June 1 Holders of rec. May 10
Minneapolis Gas Lt., 7% pref.(quay.) _
134% June 1 Holders of rec. May 20
87550 Sept. 1 Holders of reo. Aug. 10
Guaranteed (guar.)
6% preferred (quar.)
'
134% June I Holders of rec. May 20
Special guaranteed (quar.)
500 Sept. 1 Holders or reo. Aug. 10
Monongahela West Penn Public Service,
87550 Dec. 1 Holders of rec. Nov. 10
Guaranteed (guar.)
7% cum. preferred (guar.)
134% July 1 Holders of rec. June 15
Special guaranteed (quar.)
50e Dee. 1 Holders of rec. Nov. 10
Muncie Water Works Co.,8% pref.(qu.)
2% June 15 Holders of rec. June 1
$1
July 1 Holders of ree. June 15
Delaware RR. Co. (s.-a.)
80c May 20 Holders of rec. May 10
Mutual Telep. Co.(Hawaii)(monthly)....
Erie & Pittsburgh 7% guaranteed (guar.) 87540 June 10 Holders of reo. May 31
National Power & Light Co.corn.(q
25e June
Holders of rec. May 10
87.550 Sept. 10 Holders of rec. Aug. 31
7% guaranteed (guar.)
Nebraska Power Co., 7% pref. (quar.)_ _ 134% June
Holders of ree. May 16
7% guaranteed (guar.)
87340 Dec. 10 Holders of rec. Nov.30
6% preferred (quar.)
134% June
Holders of rec. May 16
Guaranteed betterment (guar.)
80o June 1 Holders of rec. May 31
New Castle Water Co.,6% pref.(quar.)_ 155% June
Holders of rec. May 20
Guaranteed betterment (guar.)
800 Sept. 1 Holders of rec. Aug. 31
New Rochelle Water Co.. 7% pf. (qu.). 134% June
Holders of rec. May 20
Guaranteed betterment ((mar.)
800 Dec. I Holders of rec. Nov. 30
New York P.& Lt. Corp.,7% pt.(quar.) 135% July
Holders of rec. June 15
Georgia RR.dc Banking (guar.)
8255 July 15 Holders of rec. July 1
New York Steam Corp.,common (cm)._
55e June
Holders of rec. May 15
June 20 Holders of rec. June 10
82
Brand Rapids & Indiana (s.-a.)
North Amer. Edison Co., pref. (quar.)._ 5155 June
Holders of roe. May 15
Greene (N. Y.) (s.-a.)
$3
June 19 Holders of rec. June 13
Nova Scotia Lt. & Pow. Co., Ltd.—
Lackawanna RR.of N.J.4% gtd.(qu.). 51
July 1 Holders of rec. June 8
$155 June
Preferred (guar.)
Holders of ree. May 17
Mill Creek & Mine Hill Nay. dr RR.(s-a) 5135 July 10 Holders of rec. July 3
Ohio Power Co.,6% pref.(quar.)
134% June
Holders of rec. May 9
455% July
Morris & Essex (5.-a.)
Holders of rec. June 9
Ohio Power Service Co.. 7% pt.(mthly.) 58 1-3c June
Holders of rec. May 15
Nashville & Decatur 734% gtd. (s.-a.)
9335e July
Holders of rec. June 20
50e
6% preferred (monthly)
June
Holders of rec. May 15
July
N. Y.Lack.& West'n,5% gtd.(quar.)
Holders of rec. June 15
8134
41 2-3c June
5% preferred (monthly)
Holders of rec. May 15
Norfolk & Western common (guar.).__ _
52 June P Holders of rec. May 31
Oklahoma Gas & Elect. Co.,6% pt.(qu.) 155% June 1 Holders of rec. May 31
North Carolina (5.-a.)
Aug.
354
Holders of rec. July 20
135% June 1 Holders of rec. May 31
7% preferred (quar.)
North Pennsylvania (guar.)
May 2 Holders of rec. May 15
$1
25e
July
Peninsular Telep. Co., (guar.)
Holders of rec. June 15
North. RR. of New Jar. 4% Std.(guar.) 51
Juno
Holders of rec. May 20
135% Aug. 1 Holders of rec. Aug. 5
7% preferred (quar.)
4% guaranteed (guar.)
Holders of reo. Aug. 21
Sept.
51
Nov. 1 Holders of rec. Nov. 5
7% preferred (gust.)
134%
7% preferred tquar.)
Holders of rec. Nov. 20 ,
Dee.
$1
4% guaranteed (guar.)
134% 2-15-3 Holders of rec. 2-5-34
3ntario & Quebec debenture (s.-a.)
254% June
Holders of ree. May 1 , Penn State Water Corp.,$7 pref. (quay.) $135 June
!folders of rec. May 20
Semi-annual
June
$3
Holders of rec. May I
Pennsylvania Pwr. Co.. 56.60 pref.(mo.) 55e
June
Holders of rec. May 20
I
Etna. Bait. & Wash.(s.-a.)
5155 June 3
$134 June
$6 preferred (quarterly)
Holders of rec. May 20
ntts. Bess.& Lake Erie corn. (s.-a.)
Holders of ree. Sept. 1
75e Oct.
Philadelphia Sub. Wat. Co., pref.(qu.)_ 155% June
Holders of reo. May 121
5155 June
6.7„ preferred (s.-a )
Holders of rec. May 1
Pon Elect. Co., 7% pref. (quar.)
135% July
Holders of rec. June 15
Ittsburgh Fort Wayne & Chicago (qu.) 131% July
Holden of rec. June I
Potomac Elect. Pow.Co.,6% Pr.(MO 134% June
Holders of rec. May 13
7% preferred (quar.)
134% July 4 Holders of rec. June 1
134% June
534% preferred (quar.)
Holders of ree. May 13
, 134% Oct. 1 Holders of rec. Sept.
Quarterly
Public Elec. Lt. Co.,6% pref.(quay.)
155% June
Holders of rec. May 24
7% preferred (guar.)
134% Oct. 3 Holders of rec. Sept.
Public Serv. of Colo., 7% pref. (mthly.) 58 1-3e June
Holders of rec. May 15
Quarterly
134% Jan.2'34 Holders of ree. Doe.
412-30 June
5% preferred (monthly)
Holders of rec. May 15
7% preferred (guar.)
135% Jan.4'34 Holders of ree. Dec.
6% preferred (monthly)
June
50e
Holders of rec. May 15
3ittaburgh Youngstown & AshtabulaPublic Service Corp.of N.J.6% pf.(mo.)
500 May 3 Holden( of rec. May 1
7% preferred (guar.)
134% June 1 Holders of rec. May 2
Ridge Ave.Pass. By. Co.(quar.)
$3
July
Holders of rec. June 15
7% preferred (quar.)
Sept.
1
Holders
of
reo.
Aug.
21
134%
Rochester G.& E. Corp., 7% pt. B (qu.) 134% June
Holders of rec. Apr. 27
7% preferred (guar.)
134% Dee. 1 Holders of rec. Nov.20
6% preferred C (guar.)
134% June
Holders of ree. Apr. 27
leading Co. preferred (quar.)
June 8 Holders of rec. May 18
50c
6% preferred D (quar.)
155% June
!folders of ree. Apr. 27
50c July 13 Holders of ree. June 22
2d preferred (guar.)
2% July
Savannah Elec.& Pr..8% pref. A (qu.)_
Holders of ree. June 16
50c
July I Holders of rec. June117
kisses (s-a)
174% July
734% preferred B (quar.)
Holders of rec. June 16
"Mon Pacific common (quar.)
$155 July 1 Holders of rec. Juno la
7% preferred C (quar.)
134% July
'folders of rec. June 16
Jolted N.J. RR.& Canal Co. (guar.)._
5234 July 10 Holders of rec. June 20
655% preferred B (quar.)
134% July
Holders of rec. June 16
Quarterly
5255 Oct. 10 Holders of rec. Sept. 20
2d & 3d Sts. Pass. Ry. Co., gtd.(quay.) _
July
$3
Holders of rec. June I
Talley RR.of New York (s-a)
5255 July 1 Holders of rec. June 19
Shenango Valley Water Co.6% pf. (qu.) 155% June
Holders of rec. May 20
Vest Jersey & Seashore, corn. (s.-a.)
5155 July 1 Holders of rec. Juno 15
6% preferred (quay.)
154% Sept.
Holders of tee. Aug. 20
5155 Jan 134 Holders of reo. Dec. 15
Common (s.-a.)
134% Dec.
6% Preferred (quar.)
Holders of rec. Nov.20
Somerset Union & Middlesex Ltg. (v•-a.)
$2 June
Holders of rec. May 15
Public Utilities.
Southern California Edison Co., Ltd.
,rner. Water Wks.& El. Co., pf.(quar.) 5134 July I Holders of rec. June 9
une 1 Holders of rec. May 20
13.4%
7% preferred, series A (guar.)
langor Hydro-Elect. Co.. 7% pf. (qu.) 135% July 1 Holders of roe. June 10
6% preferred, series 13 (guar.)
134% June 1 Holders of rec. May 20
155% July 1 Holders of rec. June 10
6% preferred (quar.)
Southern California Gas Corp.—
Satan Rouge Elect., $6 pref. (guar.)... $155 June 1 Holders of rec. May 15
$655 preferred (guar.)
$134 May 3 Holders of rec. Apr. 30
IlrmIngham Water Works,6% pf.(qu.) 155% June 15 Holders of rec. June I
Susquehanna Utilities, 1st pref. (quar.)_
$155 Juno
Holders of ree. May 20
Ilackstone Valley Gas dc Electric Co.
Syracuse Ltg. Co., Inc..8% pref.(guar.)
2% Aug. 1 Holders of rec. July 31
3% June 1 Holders of reo. May 16
6% preferred (5.-a)
134% Aug. 1 Holders of reo. July 31
634% preferred (quar.)
60e June 30 Holders of rec. June 16
tridgeport Gas Light Co.(guar.)
6% preferred (quar.)
134% Aug. 1 Holders of rec. July 31
Irooklyn Edison Co. (quar.)
52 June 1 Holders of ree. May 12
June
20e
Telephone Investment (monthly)
Holders of rec. May 20
$155 July 1 Holders of rec. June 1
Irooklyn Union Gas Co.(guar.)
July
20c
Monthly
Holders of rec. June 20
131% June 15 Holders of rec. June 1
littler Water Co., 7% pref. (quar.)
155% July
Tennessee Elec.Pow. Co.,5% pr.
Holders of reo. June 15
!anadlan Hydro-Elec.,6% let pf.(qu.). 1155% June 1 Holders of rec. May 1
(au.)6%
preferred (guar.)
134% July
Holders of reo. June 15
:anadlan West. Nat. Gas Lt. Ht.de Pow.
134% July
7% preferred (quar.)
Holders of reo. June 15
134% June I Holders of rec. May 15
6% preferred (quar.)
51£0 July
7.2% preferred (guar.)
Holders of rec. June 15
arolina Tel. & Tel. Co.(quar.)
$255 July 1 Holders of rec. June 24
June
500
6% preferred (monthly)
Holders of reo. May 15
'entre' Arkansas Public Serv.. pt. (qu.) $135 June 1 Holders of rec. May 15
500
6% preferred (monthly)
July
Holders of reo. June 15
'entre' Kansas Power 7% pref.(guar.). 135% July 15 Holders of rec. June 30
600
7.2% preferred (monthly)
June
Holders of roe. May 16
7% preferred (quar.)
July
600
7.2 preferred (monthly)
134% Oct. 15 Holders of rec. Sept. 30
Holders of ree. June 15
134% -15-34 Holders of rec. Dec. 31
7% preferred (quar.)
Tide Water Power E6 pref.(quar.)
750 June
Holders of rec. May 10
Toledo Edison Co., 7% pref.(monthly). 58 1-30 June
134% July 15 Holders of rec. June 30
6% Preferred (guar.)
Holders of rec. May 15
6% preferred (quer.)
155% Oct. 15 Holders of rec. Sept. 30
50e
June
6% preferred (monthly)
Holders of ree. May 15
155% -15-34 Holders of rec. Dec. 31
6% preferred (quar.)
41 2-3e June
5% preferred (monthly)
Holders of ree. May 15
Sutra' Mass. Light & Pow.(quar.)
50e May 31 Holders of rec. Apr. 20
Terre Haute Water Works Corp.. 7%
'entral Mississippi Valley Elec. Prop.—
135% June
Preferred (guar.)
Holders of rec. May 20
$135 June 1 Holders of rec. May 15
Preferred (quar.)
United Gas Impt. Co.common (quar.)-30o June 3 ffoldets of rec. May 31
heater Water Serv. Co., 5555 pf. (qu.) $131 May 15 Holders of rec. May 5
$155 June 3 Holders of rec. May 31
Preferred (quay.)
itizens Gas Co. of Indinapolls, 5% pf.
United Light & Railways (Del.)134% June 1 Holders of rec. May 20
(guar.)
July
53e
6.36% preferred (monthly)
Holders of rec. June 15
$355 July I Holders of reo. June 20
itizen.a Pass. Ry.(Phila., Pa.)
Utility Equities Corp. 5534 priority stk_
$135 June
Holders of ree. May 15
leveland Elec. Illuminating Co.
Virginia El. & Pr. Co., $6 pref (quar.)
$155 June 2 Holders of reo. may 31
6% preferred (guar.)
155% June I Holders of ree. May 15
$15.5 June
Washington By.& Elect. Co.(quar.)
Holders of rea. May 15
ommonwealth CUL Corp. pf. C(Q.).- El% June 1 Holders of rec. May 15
Preferred (quar.)
June
$IM
Holders of rec. May 18
$3
June 15 Holders of rec. June 5
oneord Gas Co.(s.-a.)
Wheeling Elect. Co., 6% pref. (guar.).- 134% June
Holders of rec. May 9
onnectleut Light & Power,555% (qu.)- 135% June 1 Holders of rec. May 15
Williamsport Water Co. $6 pref.(qui
$155 June
Holders of rec. May 20
134% June 1 Holders of rec. May 15
655% Preferred ((mar.)
onneeticut Power Co. corn.(quar.)
6255c June 1 Holders of rec. May 15
Fire Insurance Cos.
onsolidated Gas Co. of N. Y.com.(qu.)
Holders
June
850
15
of rec. May 12
North River Ins. Co. (quar.)
150 June 10 Holders of reo. June 1
onsumers Power Co..$5 prof. (guar.).- $14 July 1 Holders of rec. June 15
134% July 1 Holders of ree. June 15
6% preferred (guar.)
Miscellaneous.
6.6% preferred (quar.)
1.65% July 1 Holders of ree. June 15
7% preferred (guar.)
IM% July 1 Holders of ree. June 15
10e June 1 Holders of roe. May 18
Affiliated Products (monthly)
6% preferred (monthly)
500 June 1 Holders of rec. May 15
Agnew Surpass Shoe Sts.,Ltd.,pret.(q11.) 135% July 3 Holders of ree. Juno 15
6% preferred (monthly)
500 July I Holders of rec. June 15
50a
June 30 'folders of rec. June 15
Aluminum Mfg.,Inc.,corn.(quar.)
6.6% preferred (monthly)
550 June 1 Holders of ree. May 15
50e
Common (guar.)
Sept. 30 Holders of rec. Sept. 15
550 July 1 Holders of rec. June 15
6.6% preferred (monthly)
Dee. 31 Holders of rec. Dee. 15
50c
Common (quay.)
,ayton Pow.& Light6% pref.(mthly.)50e June 1 Holders of rec. May 20
$135 June 30 Holders of reo. June 15
Preferred (quar.)
eat St. Louls & Interurban Water, 7%
Preferred (quar.)
5134 Sept. 30 Holders of reo. Sept. 15
preferred (guar.)
135% June 1 Holders of rec. May 20
5131 Dee. 3 Holders of rec. Dec. 15
Preferred (quar.)
1 H% June 1 Holders of rec. May 20
6% preferred (quar.)
25e June
American Arch Co. common (quar.)_....
Holders of ree. May 20
astern Shore Pub. Serv., 3655 pf.(qu.) 5135 June 1 Holders of rec. May 10
American Chicle Co.(guar.)
July
50c
Holders of rec. June 12
$134 June I Holders of rec. May 10
$6 Preferred (quar.)
July
25c
Extra
Holders of rec. June 12
I Paso Elec. (Del.), 7% pref. A (qu.)
15
Holders
July
of
rec.
134%
2% June
June 30
Airerlean Dock Co.8% met.(guar.).— Holders of rec. May 20
$6 preferred B (quar.)
$155 July 15 Holders of rec. June 30
An crican Envelope Co.7% pt.(quay.).... 5134 June
Holders of rec. May 25
I Paso Elec. (Texas). 6% pref. (qu.)
11.4% July 1 Holders of rec. June 30
7% preferred (guar.)
134% Sept.
Holders of reo. Aug. 25 •
ilzabeth & Trenton RR.(5.-a)
Oct. 1 Holders of rec. Sept. 20
$1
7% preferred (guar.)
134% Dec.
Holders of reo. Nov.25
5% preferred (s.-a.)
5155 Oct. 1 Holders of rec. Sept. 20
American Hardware (guar.)
25e
July
Holders of rec. June 17
mpire & Bay State Teleg 4% gtd.(qu.) 51
JIM 1 Holders of reo. May 20
25e
Quarterly
Oct.
Holders of yea. Sept. 16
4% guaranteed (guar.)
Sept. 1 Holders of reo. Aug. 21
25e
Quarterly
$1
1-1-34 Holders of ree. Deo. 16
Deo. I Holders of reo. Nov. 20
4% guaranteed (guar.)
SI
American Home Prods. Co.(monthly).- 25e
June
Holders of rec. May 15a
centre Gas & Elec.,6% pf. A.(quar.)
154% RIM 1 Holders of rec. Apr. 28
American Paper Goods, 7%pref. (qu.).. 131% June 1
135% June 1 Holders of rec. Apr. 28
American Radiator & Standard Sanitary
7% Preferred (guar.)
oz./. oreferred C(auar)
134% June 1 Holders of rec. Apr. 28
Corp., preferred (quar.)
$135 June
Holders of reo. May 15
15 Holders of rec. June I
1
15 Holders of rec. June 30
15 Holders of rec. May 26
15 Holders of rec. June I
1 Holders of rec. June,17
1 Holders of rec. May 15
Name of Company.
3483
Financial Chronicle
Volume 136
Per
When
Share. Payable.
Boots Closed
Day; Industre.
Name of Company.
Per
When
Cent. Payable.
Books Closed
Days Inclusive.
Miscellaneous (continued).
Miscellaneous (Continual).
May 26 Holders of rec. May 19
Hibbard, Spencer. Bartlett & Co. (nto.)• 100
50c June 30 Holders of rec. June 15
American Steel Foundries, pref
June 30 Holders ot rec. June 23
100
Monthly
123e July 1 Holders of rec. May 31
American Thread Co.. prof.(s.-a.)
June 1 Holders of roe. May 15
Amer. Tobacco Co. cam.& corn. B(qu.) $114 June 1 Holders of rec. May 10. Hires (Chas. E.) Co., corn. Cl. A (qua:.) 500
25e June 1 Holders of rec. May 18.
Hobart Mfg. Co.common (qua:.)
July 3 Holders of too. June 24
$i
Amoskeag Co.. common (ra)
8134 June 1 Holders of rec. May 15
Holland Paper, Ltd., pref. (qua:.)
$2M July 8 Holders of rec. Jolts 24
11. Preferred (s-A)
15e
June 1 Holders of rec. May 11
Holt (Henry) & Co., class A
25e June 1 Holders of rec. May 20
Archer-Daniels-Midland common
Hollinger Consol, Gold Mines, Ltd.
h$1M June 1 Holders of rec. May 16
Artloom Corp.. preferred (quer.)
tr 1% May 20 Holders of rec. May 5
Capital stock (monthly)
250 June 15 Holders of rec. May 22
Atlantic Refining Co. corn. (quar.)
trl% May 20 Holders of roe. May 5
Extra
75c June 1 Holders of rec. May 20
Atlas Corp.$3 preference A (quay.)
May 25 Holders of rec. May 20
75e
Homestake Mining Co. (monthly)
Automotive Gear Works. pref.(guar.)._ 41Mo June 1 Holders of rec. May 20
$111 June 1 Holders of rec. May 15
Hooven & Allieon preferred (quar.)
Bamberger (L.)& Co.614% pref.(111.)- 1% June 1 Holders of ree. May 15
1 Holders of rec. May 11
June
3134
(quar.)
pref.
Horn
&
Hardart
(N.
Y.)
Apr.
29
rec.
of
Holders
Handful Petroleum(monthly)
50 May 20
Imperial Chem.Industries, Ltd. (final)..: w334% June 8 Holders of roe. Air. 13
15c June 3 Holders of rec. Juee 15
Bankers Investment Trust of Am.(s.-14.)
1 Holders of rec. May 15
June
Mc
(qua:.)
__
tr12
Ltd..Tegistered
Imperial
011
May
13
rec.
of
May
Holders
(quar.)_
60
25
National
Invest.
Corp.
Bankers
01234e June 1
Coupon No. 37
24e
May 25 Holders of rec. May 13
Class A & Et (quar.)
Industrial Cotton Mills.7% pref.(qua:.) 134% Aug. 1 Holders of rec. July 20
150
May 25 Holders of rec. May 13
Preferred (qua:.)
154% May 1 Holders of rec. Apr. 20
d7% preferred (quar.)
$1S4 July 1 Holders of rec. June 26
Barber(W.H.), pref.(qua:.)
3734e June 1 Holders of ree. May 5
Ingersoll-Rand Co. common (quar.)..
$151 Oct. 1 Holders of rec. Sept.26
Preferred (quar.)
International Harvester pref. (guar.).- $111 June 1 Holders of rec. May 5
750 July 1 Holders of rec. June 12
Beech-Nut Packing Co., cont. (guar.).International Milling Co. series A (qu.)- $134 June 1 Holders of rec. May 20
Belding-Corticelli, Ltd., pref.(guar.)._ . $1g June 15 Holders of rec. May 31
$154 June 1 Holders of rec. May 20
1st pref. orlg. series (quar.)
Block Bros. Tobacco.6% pref.(qua:)..
$1 3 June 30 Holders of rec. June 20
50e. June 1 Holders of rec. May 15
International Shoe Co.. pref. (monthly).
rec.
May
5a
Holders
of
June
1
Blue Ridge Corp.opt.$3cony. pf.(q11.)P
50e June 1 Holders of rec. May 25
7%
prof
Knitting
M1lLs
Jantzen
Apr. 30 Holders of rm. Apr. 15
$1
Bon Aml Co., class A (quar.)
250 July 1 Holders of rec. June 13
Jones St Laughlin Steel Corp.7% Pf.((111)
400 June 1 Holders of rec. May 15
Borden Co., common (guar.)
10e June 1 Holders of rec. May 25
Kekoha
12
Sugar
Jan.
Co.
rec:
(monthly)
of
250
Jan. 12 Holders
Botnot. Inc., class A
$134 June 1 Holders of rec. May 10a
Kendall Co. class A pref.(quar.)
$134 June 30 Holders of rec. June 1
Boston Wharf Co.(s-a)
12540 July 1 Holders.of rec. June 20
Klein (Emil D.)Co.,common (quar.)
10o June 1 Holders of rec. May 13
Brach (E. J.) & Sons. common (qua:.)...
Knudsen Creamery Co., A & B (quer.). 37140 May 20 Holders of rec. Apr. 30
British Controlled Oilfielde, Ltd.,7% pf.
. 3% July 1
25e June 1 Holders of rec. May 10
Kroger Grocery & Baking corn.(guar.).British Match Corp.,Ltd.134% July 1 Holders of rec. June 20
6% preferred (qua:.)
May
5
of
too.
w4%
Holders'
rec,
May
24
Amer. dep.
for ord. reg
Aug. 1 Holders of rec. July 20
144%
7% preferred (quar.)
British United Shoe Mach. Co.. Ltd.,lei% June 15 Holders of rec. June 5.
Landes Machine. pref. (qua:.)
w734% June 8 Holders of reo. May 22
American dep. rec. ord. mg
May 31 Holders of rec. May 19
$1
(quar.)
Laeston
MonotyPe
rec.
May
20
Co.
750 June 1 Holders of
Brown Shoe Co., common (qua:.)
75e June 1 Holders of rec. May 15
Laura Secord Candy Shops, Ltd.(01)
75e June 15 Holders of rec.. May 31
Buckeye Pipe Line Co.(quar.)
May 31 Holders of roe. Apr. 29
10c
(quar.)
Nay.
Lehigh
Coal
&
Co.
15
rec.
June
Holders
of
July
1
8%
pref.
Burger Bros..
81
(qua:.)
June 1 Holders of rec. May 15
Lehn & Fink Prods:Co.. corn.(guar.)... 50e
8% preferred (quar.)
Oct. 1 Holders of rec. Sept.15
51
Liggett & Myers TobaccoBurmah Oil Co.. Ltd.81 June 1 Holders of rec. May 15
Common and common B (quar.)
Amer. dep. rec. ord. reg
zw3s. May 15 Holders of roe. May 15
60e. Aug. 1 Holders of roe. July 26
Lincoln National Life Ins. Co.cap.stoek
June 5 Holders of rec. May 5
100
Burroughs Adding Mach. (qua:.)
70e. Nov. 1 Holders of rec. Oct. 26
Capital stock
Cables & Wlieless.Ltd.,preference (final) ru/214% June 3 Holders of rm. May 5
June' 1 Holders of rec..May 26
25e
Lincoln Stores, Inc.. corn. (guar.)
Calamba Sugar Estates. common
400 July 1 Holders of rec. June 15
$134 • June 1 Holders of rm. May 25
Preferred (qua:.)
2% July 1 Holders of rec. June 20
Canadian 011 Co., Ltd.8% pref.(quar.)
June 1 Holders of rec. May 15
100
Belt
Link
May
15
(guar.)
rec.
Holders
of
3714e
June
1
Canadian Silk Products A (qua:.)
$134 July 1 Holders of rec. June 16
Preferred (quar.)
87340. Jan. 31 Holders of reo. Jan. 14
Cartier. Inc.,7% pref
June 1 Holders of rec. May 1241
Loblaw Groceterias, Ltd., Cl. A & B (qu.) tr20c
July 1 Holders of rec. June 12
Case(J.I.)Co., pref.(quar.)
$1
May 30 Holders of roe. May 31
33c
Lock Joint Pipe Co.(monthly)
Centrifugal Pipe Line corp.oap.stk.(qu.)
100. Aug. 15 Holders of rec. Aug. 5
June 30 Holders of me. June 30
34c
Monthly
100. Nov. 15 Holders of roe. Nov. 6
Capital stock (guar.)
1 Holders of rm. July 1
July
$2
(qua:.)
Preferred
May
20
rec.
Ribbon
June
1
Holders
of
Century
Mills, Prof.(quer).- 3114
Holders of rec. May 17
$134 June
Lord & Taylor Co. 1st pref.(quar.)
Champion Coated Paper Co.
$134 June 1 Holders of rec. May 6
Ludlow Mtg.Associates(quer.) •
7% preferred(guar)
134% July I Holders of rec. June 20
of roe. June 21
1
Holders
July
3114
(quar.)
Lunkenheimer
Co.,
pref.
June
20
1.14% July 1 Holders of rec.
7% special pref.(quar.)
3114 Oct 2 Holders of roe. Sept.22
Preferred(Quer.)
Chartered Investors, Inc.,$5 pf.(quar.)_ $134 June 1 Holders of rec. May 1
Magnin (I.) & Co.,6% pref. (quar.)... 134% Aug. 16 Holders of rec. Aug. 5
Chicago Corp., preference (qua:.)
h25e June 1 Holders of rec. May 15
134% Nov.15 Holders of roe. Nov. 5
6% preferred (qua:.)
Chic. Dock ar Canal Co.
31'% June 1 Holders of rec. May 15
ManlechewItz & Co., pref.(quar.)
134% June I Holders of too. May 15
614% preferred C (quar.)
June I Holders of rec. May 15
25c
Stores,
com.
(quar.)
May
Dept.
June
15
Chicago June. Ky.& Un.Stk. Yds.(qu.) $234 July 1 Holders of rec.
June 1 Holders of roe. May'15
trIlic
McColl Frantenac 011, corn.(quar.)
6% preferred (guar)
3134 July 1 Holders of rec. June 15
u25c June 1 Holders of rec. May 1
McIntyre Porcupine Mines, Ltd.(qu.),
25e June 1 Holders of rec. June 19
Chicago Yellow Cab Co.(quar.)
June 1 Holders of rec. May 1
ul234c
Bonus
Cbipman Knitting Mills,7% prof (11-a).- 334% July 1 Holders of rec. June 30
til234e June 1 Holders of rec. May 1
Extra
City Ice & Fuel Co., pref.(quar.)
$134 Jun0 1 Holders of rec. May 20
June
1 Holders of rec. May 20
Mc
(qua:.)lil
Textile
Corp.
Metal
pref.
May
19
Collins & Alkman Corp.,7% pf.(quar.)- 134% June 1 Holders of rec.
Metro-Goldwyn Pictures Corp.Colomba Sugar Estates. corn. (quar.)- 40c
July 1 Holders of rec. June 15
Holders of rec. May 26
June
15
4734e
preferred
June
15
7%
Preferred
Holders
of
rec.
(Quer)
July
1
35e
(quar.)
7%
Columbia Pictures Corp. pref.(guar.)...
75c June 1 Holders of rec. May 17a Moore (Wm.) Dry Goods Co.(qua:.)... $134 July 1
8114 Oct. 1
Quarterly
Columbian Carbon Co.(quar.)
June 1 Holders of rm. May 15
50e
1134. 1-1-'34
Quarterly
Compressed Industrial Gases (quar.)_..
35e June 15 Holders of rec. May 31
Morris 50. dr 10e.to 31 Sta..7% Pf. (1111.) 154% July 1
Confederation Lite Assoc. (quar.)
$1 June 30 Holders of rec. June 25
let% Oct. 1
7% preferred (qua:.)
Quarterly
$1 Sept. 30 Holders of me. Sept. 25
let% 1-2-34
7% preferred (guar.)
Quarterly
11 Dec. 31 Holders of rec. Dec. 25
May 31 Holders of rec. May 24
200
Motor Finance Corp.(quar.)
Congoleum Nairn. pref.
- 8154 June 1 Holders of rec. May 15
3.005 June 1 Holders of rec. May 24
Develop.,
(quar.)
Min.
&
Diablo
Oil
Consolidated Cigar, 7% pref.((mat.).
Mt.
May
15
June
1
of
rec.
Holders
134%
June 1 Holders of rec. May 20
400
Murphy (G. C.) Co., cont.(qua:.)
Consolidated Diversified Standard Se70e July 15 Holders of rec. June 16
curities, prof
National Biscuit Co.common (quar.)
250 June 15 Holders of rec. May 15
$114 May 31 Holders of roe. May 15a
Preferred (qua:.)
Cottrell(C. B.)& Sons Co.(annual)._ $4
July 1
250 June 15 Holders of rec. May 31
National•Bond & Share Corp.(Quart).6% preferred (qua:.)
134% July 1
500• June 1 Holders of rec. May 115
National Container Corp., $2 pref. (qu.)
a% Preferred (guar.)
134% Oct. 1
$154 June 15 Holders of rec. June 2
National Lead Co.. pref. A (qua:.)
6% preferred (quar.)
July 1 Holders of reo. June 1
500
National Sugar Refining Co.of N.J
Crown Cork & Seal Co.. Inc., Pref.(Q11) 1 4
-1
un;1
15
68!,
% June
4
5 Holders of roe. May 31
New England Grain Prod., A prof.(qu.)- $134 July 16 Holders of me. July 1
*Crown Zellerbach Corp. A & B pt.(eu.). 37140 June 1 Holders of rec. May 20
July 1 Holders of rec. June le
15e
Newberry (J. J.) Co., corn. (quar.)
Crum & Forster, preferred (quar.)
June 30 Holders of rec. June 19
32
Newberry (J. J.) & Co.,7% pref.(qu.). 1 et% June 1 Holders of rec. May 17
Crum &Forster Ins.She.. A &B (quer). be • May 31 Holders of rec. May 20
Md.Niagara Share Corp. of
7% preferred (quar.)
114% May 31 Holders of rec. May 20
3134 July 1 Holders of roe. June 14
Class A $6 preferred (quar.)
Cuneo Prees, Inc. 6)4% pref. (quar.)- 114% June 15 Holders of rec. June 1
$114 Oct. 1 Holders of roe. Sept. 11
Class A 86 preferred (quar.)
Cushman's Sons,Inc., corn.(qua:.)
50e
June 1 Holders of rec. May 15
$134 Jan2'34 Holders of rec. Dee. 14
Class A $13 preferred (quer.)
7% preferred (guar.)
114% June' 1 Holders of rec. May 15
Nineteen Hundred Corp...elms A (qua:.) 50e. Aug. 15 Holders of roe. Aug. 1
$8 preferred (quar.)
June 1 Holders of rec. May 15
$2
50e. Nov. 15 Holders of ree. Nov. I
Class A (quar.)
Deere & Co. preferred (quar.)
Sc June 1 Holders of rec. May 15
July 1 Holders of rec. June 9
25c
Northern Pipe Line Co.(s-a)
Deposited Bank Shares, N. Y., A (s.-a.). e2).4% July 1 Holders of rec. May 15
75e June 1 Holders of rec. May If
Northam Warren Corp. pref. (quer.).-Diamond Match Co.common (quar.)
250 June 1 Holders of red. May 16
Norwalk Tire & Rubber Co.. prof. (qu.) 8734c July 1 Holders of rec. June 21
Dictaphone Corp.(quar.)
$2
June 1 Holders of rec. May 19
Ogilvie Flour Mills Co., Ltd., pt.(quar.) $111 June 1 Holders of rec. May 21
Dome Mines, Ltd. (qua:.)
25e July 20 Holders of rec. June 30
20e May 20 Holders of rec. may 1(
Onomea Sugar Co.(monthly)
25e July 20 Holders of rec. June 30
Extra
Drug, Inc., capital stock (qua:.)
75e
June 1 Holders of me. May 15a Owens Illinois Glass Co.,6% pref.(qu.). SIM July 1 Holders of rec. June 11
214e May 29 Holders of rec. May li
Pantheon Oil Co: (quar.)
Dunlop Rubber Co., Ltd.
Amer. dep. refs. ord. stock
ye 4% May 81 Holders of rec. May 8
Parker Rust Proof Co.,common (qua:.).. 62340 May 20 Holders of rec. May 1(
350 May 20 Holders of rec. May 1(
Eastern Theatres, Ltd.. corn.(guar.).- 60c
June I Holders of roe. Apr. 29
Preferred (s.-a.)
1234e June -1 Holders of rec. May 11
750
common
(quar.).July
1
Holders
of
Patterson Sargent Co., corn. (quar.)
Eastman Kodak Co.,
rec. June 5
8134 July 1 Holders of rec. June 5
Ponder (David) Grocery Co. el. A (qu.). 8734e June 1 Holders of rec. May 24
Preferred (quay.)
June 15 Holders of rec. June :
$3 June 1 Holders of roe. May 10
Penick & Ford. Ltd.. Inc. corn. (quar.) 25e
Essex Co. (0.-a.)
$134 June 1 Holders of rec. May 21
Pfaudler Co. pref. ewer.;
Ever Ready Co.(Gt. Britain) Ltd.
zw25% June 1 Holders of recs. May 15
7% let Pret(:Mar) 8734e June 1 Holders of rec. May 11
Ordinary registration (final)
Hosiery Co.,Phenix
250 June 1 Holders of rec. May 11
American dep. rec. ord. reg. (final).- zw25% June 8 Holders of rec. May 15
Pillsbury Flour Mills, common (quar.)_
17340 June 1 abiders Of rec. May 15
Procter & Gamble Co.,5% pref. (quar.) 134% June 15 Holders of rec. May 21
Finance Service Co.. pref. (guar)
25e June 1 Holders of rec. May 11
Purity Bakeries Corp.. common (guar.).
Firestone 'tire & Rubber, prof. (guar.)._ 3134 June 1 Holders of tee. May 15
15.4% May 31 Holders of rec. May '
Quaker Oath( Co.6% pref. (quar.)
Fits Simons & Connell Dredge & Dk.(qu) 1234o June 1 Holders of rec. May 20
$114 June 1 Holders of rec. May 17
Franklin Simon dr Co., pref. (quar.)
Reliance Grain Co., Ltd.. pref.(Qum.). $14 June 15 Holders of rec. May 3
25e June'1 Holders of rec. May 1.
500
June 1 Holders of roe. May 15
Freeport Texas Co., corn.(guar.)
Reynolds Metals Co.(quar.)
314e June 1 Holders of rec. May 15
Rich's. Ine.. 634% preferred (quer).- 154% June 30 Holders of rec. June 1
Gates Rubber, pref. (qua:.)
8134 June 1 Holders of rec. May 1
$114 June 1
Rolland Paper Co., Ltd., pref. (quar.)
Geist(C.II.) Co.,6% pref.(quay.)
3134 June 1 Holdere of tee. May 22
General Cigar Co., Inc., pref.(quar.)_
Rolle-Royce. Ltd.. Am.dep. rec. ord.reg zw8% May 26 Holders of rec. Mar.3
6%
June 12 Holders of rec. May 11
Royal Dutch Petroleum Co. (final).General Motors Corp., corn. (quar.)--- 250
750 July I Holders of rec. June 1
$134 Aug. 1 Holders of rect. July 10
Safeway Stores, Inc., common (qua:.)...
$5 preferred (qua:.).)
154% July 1 Holders of rec. June 19.
Gestuerel7% preferred (quay,)
134% July 1 Holders of rec. June 1
American dep.roe.. corn, bearer shares zw5% May 23 Holders of rec. May 16
6% preferred (quar.)
400
June 10 Holders of rec. May 31
June 1 Holders of rec. May 1
Second Inv's. Corp.(R.1.1.6% pt.(qu.)- The
Golden Cycle (qua:.)
45e
June 1 Holders of rec. May 1.
June 30 Holders of rec. June 30
Goodman Mfg.Co.(quar.)
Security Invest.(R. I.), Pref. (quar.)..... 75e
50e July 1 Holders of rec. June 1
July 20 Holders of reo. June 80
32
Shaeffer(W. A.) Pen. pref.(qua:.)
Goodyear Tire & Rubber Co.$7 Prof...-Oct. 20 Holders of rec. Sept.30
$2
•
Preferred (qua:,)
Gottfried Baking Co.. Inc.. el. A (qua:.) 75e. July 1 Holders of rec. June 20
750. Oct. 1 Holders of tee. Sept. 20
75.4% July 6
Shell Transport & Trading, corn
Class A (quar.)
1
M
%
July
1
June 1 Holders of rec. May 1
Holders
of
$134
(guar.)._
(quar.)
roe.
June
20
Sherwin-Williams Co., pref. A
Preferred
114% Oct. 2 Holders of rec. Sept.20
Juno 30 Holders of rec. June 16
Spencer Kellogg & Sons, Inc., corn.(qu.) 150
Preferred (Quer.)
134% Jn.2 '34 Holders of me. Doe. 20
250 June 15 Holders Of rec. May 1
Standard Oil Co. of Calif
Preferred (quar.)
8% June 30 Holders of rec. June 28
250 June 15 Holders of rec. May 15
Standard Oil Co. of Indiana (quar.)---Grace(W. R.)& Co.,6% pref. (s.-a.)
3% Dec. 29 Holders of rec. Dec. 27
250 June 20 Holders of rec. May 2
Standard Oil of Neb.(qua:.)
6% preferred (s.-a.)
75e June 1 Holders of rec. May 10
500 June 15 Holders of roe. May 16
Stand.011 Co.of N.J., cap.stk.(5.-a.)....
Grand Union Co.$3 cony. pref.(quer.).
e2 June 15 Holders of roe. May 1S
Capital stock. $100 Par (s.-a.)
Great Atlantic & Pacific Tea Co.
$134 June 1 Holders of rec. May 5
Stromberg Carlson Telephone mtg.Common (qua:.)
134% June 1 Holders of ree. May 1a
June 1 Holders of roe. May 5
25e
6H% preferred (quar.)
Extra
$134 June 1 Holders of rm. May 12
25e June 15 Holders of roe. may I
Sun 011 Co. common (quar.)
Preferred (qua:.)
(quer.)
25e June 1 Holders of rec. May 20
$114 June 1 Holders of rec. May 10 .
prerefrea (qua:.)
Great Northern Paper Co.
16e June 1 Holders of rec. May 15
525.4% May 20 Holders of ree. May 1
Superior on co. of California, prof
Hale Bros. Stores, Inc.(quar.)
July 20 Holders of rec. July 10 Tide Water 011 Co.5% pref.(quar.)---- 1 X% May 16 Holders of rec. Apr. 10
32
Eannlbal Bridge Co., Wm.(quar.)
Oct. 20 Holders of rec. Oct. 10
32
Timken Detroit Axle Co., pref.(quar.)._ 151% June 1 Holders of roe. May 1 0a
0 Quarterly 7% peer.(guar.)
1le% July 1 Holders of rec. June 21
June 15 Holders of roe. May 1 9
Timken Roller Bearing Co. (quar.)...__ 150
Harbauer Co..
1
Oct.
Holders
of
134%
rec.
Sept.
21
Tobacco Securities Trust Co., Ltd.(Quer.)
preferred
7%
Holders of rec. Dee. 21
134%
Amer. dep:rects. ord. reg..interim- zre 5% May 23 Holders of rec. Apr. 15
7% preferred (gear.)
Trinidad Leaseholds, Ltd.
134% June 1 Holders of roe. May 15
Hardesty (R.). 7% prof. (qua:.)
% Sept. 1 Holders of roe. Aug. 15
Amer. dep. rec. for ord. reg.(Interim). zw5% May 24 Holders of rec. May
e 7% preferred (quar.)
154% Deo. 1 Holders of ree. Nov.15
Underwood Elliott Fisher Co.,corn.(qu.) 1234c June 30 Holders of roe. June 1
7% preferred (guar.)
3144 June 30 Holders of rec. June 1
250 June 5 Holders of rec. May 24
Preferred (qua:.)
Hawaii Commercial & Sugar (mthly.)-June 1 Holders of me. May 19
250
30e June 1 Holders of rec. May 1
Union Tank Car Co.. can. elk.(ouar.)-Helena Rubinstein,$3 prof
Financial Chronicle
Books Closed
Days Inclusive.
Miscellaneous (Concluded).
United Aircraft & Trans. Corp., pf.(qu )'75c July 1 Holders of rec. June 10
United Biscuit Co. of Amer.. corn.(qu.)_
40c June 1 Holders of rec. May 16
United Companies of N.J.(quar.)
$2 Yi July 10 Holders of rec. June 20
United Elastic Corp.(guar.)
June 24 Holders of rec. June 9
be
United Milk Crate Corp., class A (guar.)
500 June 1 Holders of rec. May 15
United 011 Trust Shs.,ser H (bearer)...- 3.2245c June 1
Series H registered
3.2245c June 1 Holders of rec. Apr. 30
United States Gypsum, corn. (guar.)._ 250
July 1 Holders of rec. June 15
Preferred (quar.)
VI) July 1 Holders of rec. June 15
U.S. Pipe & Foundry Co., corn.(quar.) 12S4e. July 20 Holders of reo. June 30
Common (quar.)
12330. Oct. 20 Holders of reo. Sept. 30
Common (quar.)
12330. 1-20-34 Holders of reo. Dee. 30
let preferred (guar.)
300. July 20 Holders of rec. June 30
hot preferred ((Pm.)
300. Oct. 20 Holders of rec. Sept. 30
lot preferred (guar.)
30e. 1-20-34 Holders of reo. Dec. 30
U.S. Playing Card Co.(guard
July I Holders of rec. June 20
25c
United States Steel Corp. pref. (quar.)_ 3.3 011% May 29 Holders of rec. May 1
Venezuelan 011 Concession, Ltd.Common (final)
zw73.5%
Vulcan Detinning Co., pref. (quar.)___
$134 July 20 Holders of rec. July 7a
Warren (Northam) Corp., $3 pref. (qu.)
750 June 1 Holders of rec. May 15
Wesson Oil & Snowdrift cony. pref.(au)
El June 1 Holders of rec. May 15
Western Auto Supply Co.
Common A & IT (quar.)
June 1 Holders of rec. May 20
25c
Western Cartridge Co.", 6% prof. (guar.) 133% May 20 Holders of rec. May 6
Westvaco Chlorine Prod., corn.(quar.)-100 June 1 Holders of rec. May 15
White Rock Mineral Springs Co.
Common (guar.)
50c
July 1 Holders of rec. June 20
15t preferred (quar.)
$134 July 1 Holders of rec. Juno 20
2nd preferred (guar.)
$2;.3 July 1 Holders of rec. June 20
Winstead Hosiery Co.(guar.)
Aug. 1 Holders of rec. July 16
$1 35
Quarterly
Nov. 1 Holders of reo. Oct. 15
$1 5.5
Wiser Oil Co.(quar.)
25c July I Holders of reo. -Tune 10
Quarterly
250 Oct. 2 Holders of rec. Sept. 12
Quarterly
250 Jan2 34 Holders of reo. Dec. 12
Woolworth Co., corn. (quar.)
600 June 1 Holders of rec. Apr. 24
Woolworth (F. W.) & Co., Ltd.Amer. dep. rec. for ord. shs. (interim) ztols.6d. June 22 Holders of rec. May 26
Amer. dep. rec. 6% pref. (s.-a.)
zia% June 8 Holders of rec. May 12
Wrigley (Wm.)Jr. Co.(monthly)
25c June 1 Holders of rec. May 20
Monthly
25c July 1 Holders of rec. June 20
Monthly
25c Aug. 1 Holders of rec. July 20
I' The New York Stock Exchange has ruled that stock will not be quoted exdividend on this date and not until further notice.
I The New York Curb Exchange Association has ruled that stock will not be
quoted ex dividend on this date and not until further notice.
a Transfer books not closed for this dividend.
d Correction. e Payable In stock.
/Payable In common stock. g Payable in scrip*. 8 On account of accumulated
dividends. .1 Payable in preferred stock.
m Amer. Cities Power & Lt. Corp. pay 1-32 of 1 sh. of class 13 stock or cash at the
Option of the holder. The corporation must receive notice within 10 days after
holders of record date to receive cash.
a Dividend of Commercial Investment Trust Is at the rate of 1-52 of 1 oh. of
con), stock per sh. of cony. prof., opt. series 01 1929, or in cash, at the option of the
bolder.
o Unilever. Ltd.: the amount of silver will be fixed according to the rate of sterlingguilder exchange on April 28.
p Blue Ridge Corp. declared a dly. at the rate of 1-32d of one share of the common
stock of the corporation for each share of such preference stock, or. at the option of
such holders (providing written notice thereof is received by the corporation on or
before May 15 1933) at the rate of 75c. per share In cash.
• r In the case of non-residents of Canada a deduction of a tax of 5% of the
amount of such dividend will be made.
(Payable in Canadian funds.
u Payable In United States funds.
e A unit.
to Less deduction for expenses of depositary.
z Lees tax.
y A deduction has been made for expenses.
Weekly Return of New York City Clearing House.Beginning with March 31 1928, the New York City Clearing
House Association discontinued giving out all statements
previously issued and now makes only the barest kind of
a report. The new returns show nothing but the deposits,
along with the capital and surplus. The Public National
Bank & Trust Co. and Manufacturers Trust Co. are now
members of the New York Clearing House Association,
having been admitted on Dec. 11 1930. See "Financial
Chronicle" of Dec. 31 1930, pages 3812-13. We give the
statement below in full:
Clearing House
Members.
*Sury/us and Net Demand
Undivided
Deposits,
Profits.
Average.
* Capital.
Bank of N. Y.& Tr. CoBank of Manhattan Co...
National City Bank _ _ _ _
Chemical /311. Sc Tr. Co__
Guaranty Trust Co
Manufacturers Trust Co.
Cent. Han. Bk. Sc Tr. Co
Corn Exch.13k. Tr. Co
First National Bank._- Irving Trust Co
Continental Bk. Sc Tr Co
Chase National Bank-.
Fifth Avenue Bank
Bankers Trust Co
Title Guar.& Trust Co
Marine Midland 'Fr. Co_
Lawyers Trust Co
New York Trust Co_ .. _ _
Com'l Nat Bk. Sc Tr. Co_
Public Nat. Bk.Sc Tr.Co.
$
$
$
6,000.000
9,354,200
88.529,000
20,000,000
36,931,700
257,152,000
124,000,000
55,983,000 0810,114,000
20,000,000
46,119,500
254,387,000
90,000,000 z176,676,800 1876.823,000
32,935,000
20;297,500
186,107,000
21,000,000
64,023,700
499,360,000
15,000,000
22,493,500
175,564,000
10,000,000 y72,579,800
364,243,000
50,000,000
72,764,900
302,835,000
4,000,000
5,756,300
22,866,000
148,000,000 113,199,600 c1,131,413,000
500,000
3,639.900
41.364,000
25,000,000 z62.202.700 d519,167,000
10,000,000 • 20,481.100
24,303,000
10,000,000
5,549,000
40,631,000
3.000,000
2,145,400
8,076,000
12,500,000
22,104,000
188,182,000
7.000,000
8,669,400
41,404,000
8,250,000
4,439,300
36.657,000
Time
Deposits,
Average.
§
Per
When
Share. Payable.
Name of Company.
May 20 1933
STATEMENT OF MEMBERS OF THE NEW YORK CLEARING IIOUSE
ASSOCIATION FOR THE WEEK ENDED SATURDAY, MAY 13 1933:
N
.
0 ext..140WNGnW.
CONW.C-t
W0.0.0000000N0
14-01IntnN 1 14-01,
40,
-110010717,4V040
1.0,
.
,
1000g,
.0000WW.GON0...
e004,
NO0s400W0,
1.0W.W.D.N
000.
000880
.
80§§000§
Q000 .00
0 0
400
0000000000000
000
3484
Totals
617,185,000 815,411,300 5,869,177,000 692,204,000
•As per official reports: National, March 31 1933; State, March 31 1933; trust
companies, March 31 1933; z as of April 10 1933; y as of April 14 1933; z As of
May 3 1933.
Includes deposits In foreign branches: a 4183,759,000; 9 549,798,000; c $68,322,000; d $25,855,000.
The New York "Times" publishes regularly each week
returns of a number of banks and trust companies which are
not members of the New York Clearing House. The Public
National Bank & Trust Co. and Manufacturers Trust Co.,
having been admitted to membership in the New York
Clearing House Association on Doc. 11 1930, now report
weekly to the Association and the returns of these two banks
are therefore no longer shown below. The following are
the figures for the week ended May 12:
INSTITUTIONS NOT IN THE CLEARING HOUSE WITH TIIE CLOSING
OF BUSINESS FOR THE WEEK ENDED FRIDAY. May 12 1933.
NATIONAL AND STATE BANKS-AVERAGE FIGURES.
. ..
loans,
Disc. arect
Investments.
ManhattanGrace National
Trade Bank
5
18,632,000
2,591,515
$
107,500
92,184
$'
1,764,000
503,710
5,406,000
85,000
330,000
BrooklynPeoples National._ _
Res. Dep., Dep. Other
N. F. and Banks and
Elsewhere. Trust Cos.
Cash.
Gross
Deposits,
$
5
1,451,900 17,508.600
164,555 2,621,506
49,000
4,900.000
TRUST COMPANIES-AVERAGE FIGURES.
Loans.
ManhattanCounty
Empire
Federation
Fiduciary
Fulton
United States
BrooklynBrooklyn
Kings County
Res. Dep..,
N. Y. and
13seuhere.
Cash.
Dep, Other
Banks and
Trust Cos.
Gross
Deposits.
16,002,700
49,359,500
5,533,445
10,709.926
17,671.000
69,685.844
$
348,100 3,554,800
s2,249,600 12,377,100
33.978
388,112
*850,886
484.167
*2,399,200 1,378,300
5.984,000 25.581,602
$
17,630,200
2,079,900 55,504,800
671,329 5,097,677
115,000 10,492,966
639,000 17,382,200
73,948,919
78,880,000
22.247,507
2,673,000 28,479.000
1,395,691
7,416.265
101,000 94,321,000
04.450,471
• Includes amount with Federal Reserve as follows: Empire,
$1,310,000
Fiduciary, $407,241; Fulton, 52,245,700.
Condition of the Federal Reserve Bank of New York.
The following shows the condition of the Federal Reserve Bank of New York at the close of business May 17 1933, in
comparison with the previous week and the corresponding date last year:
May 17 1933. May 10 1933. May 18 1932.
ResourcesGold withlyederal Reserve Agent
Gold redemption fund with U.S. Treas'y.
654,546,000
8.545,000
638,546,000
9,898,000
Gold held exclusively agst. F.R. notes.
663,091,000
648,444,000
Gold settlement fund with F. R. Board__
Gold and gold certificates held by bank__
93,943,000
200,517,000
84,534,000
199,421.000
Resources(Concluded)467,965,000 Due from foreign banks (see note)
10,489,000 I'. It, notes of other banks
Uncollected items
478,454,000 Bank premises
All other resources
160,037,000
185,698,000
Total resources
957,551,000
932,399,000
824,189,000
90,667,000
97,0.51,000
Total gold reserves
Other cash•
Total gold reserves and other cash
1,048,218.000 1,030,350,000
4000.000
1,600,000
33,685,000
44,367,000
31,921,000
47,028,000
Total bills discounted
78,052,000
78,949,000
Blls:bought in open market
U. S. Government securities.
Bonds
Treasury notes
Certificates and bills
11,658,000
17,985,000
188,224,000
234.278,000
307,872,000
188,224,000
232,513,000
309,637,000
730,374,000
730,374,000
Redemption fund-F.R. bank notes
Bills discounted:
Secured by U. S. Govt. obligations-.
Other bills discounted
'
Total U. S. Government securities--
Other securities (see note)
Total bills and securities (see note).....
4,722.000
4,782,000
824,806,000
832,090,000
Liabilities71,696,000 F. R. notes in actual circulation
F. It. bank notes in actual circulation-r895,885.000 Deposits-Member bank-reserve acc tGovernment
Foreign bank (see note)
Special deposits-Member bank
61,531,000
Non-member bank
36,661,000
Other deposits
98,194,000
Total deposits
13,878,000 Deferred availability Items
Capital paid In
178,234,000 Surplus
All other liabilities
78,195,000
463,519,000
Total liabilities
719,948,000 Ratio of total gold reserves and other cash
to deposit and F. R. note liabilities
3,320.000
combined
Contingent liability on bills purchased
835,340,000
for foreign correspondents
May 17 1933. May 10 1933. May 18 1932.
$
$
5
1,353,000
1,352,000
1,628,000
8,010,000
4,540,000
5,367,000
96,965,000
88,675,000 111,930,000
12,818,000
14,817,000
12,818,000
22,429,000
19,193,000
21,745,000
2,016,599,000 1,993,997,000 1,883,333,000
710,247,000
34,443,000
988,088,000
11.746,000
7.557,000
5,813,000
1,442,000
12,662,000
725,744,000 565,980,000
29,462,000
961.336,000 1,027,272,000
9,331,000
13,212,000
15,053,000
6.473,000
5,619,000
1.517,000
13,226,000
13,650,000
1,028,208.000 1,001,813,000 1,064,882,000
92.973,000
86,325,000 107,808,000
59,134.000
58,526.000
58,497,000
75,077,000
85,058,000
85,058,000
10,452,000
7,144,000
7,098,000
2,016.599,000 1,993,997,000 1,883.333,000
60.3%
59.6%
54.9%
12,989,000
13,862,000
74,798,000
•"Other cash" does not Include F R. notes or a bank's own F. R. bank notes.
NOTE.
-HeainnIng with the statement of Oct. 17 1925, two new Items were added In order to show separately the amount of balanced held abroad and amounts
due to foreign correspondents. In addition, the caption "All other earnings assets." Previously made up of Federal Intermediate Credit Bank debentures, WM (mange('
and ale caption, "Total earnings assets" to "Total bills and securities." The latter term was adopted ass more accurate description of the total
securities.'
to "Other
Of the discount acceptances and securities acquired under the provisions of Section 13 and 14 of Ins Fedcial Reserve Act. whin it was stated are the only Items Included
therein.
3485
Financial Chronicle
Volume 136
Weekly Return of the Federal Reserve Board.
The following is the return issued by the Federal Reserve Board Thursday afternoon,May 18,and showing the condition
of the twelve Reserve banks at the close of business on Wednesday. In the first table we.present the results for the System
as a whole in comparison with the figures for the seven preceding weeks and with those of the corresponding week last year
The second table shows the resources and liabilities separately for each of the twelve banks, The Federal Reserve Agents'
Accounts (third table following) gives details regarding transactions in Federal Reserve notes between the Comptroller and
Reserve Agents and between the latter and Federal Reserve banks. The Reserve Board's comment upon the returns for the
latest week appears on page 3441, being the first item in our department of "Current Events and Discussions."
CLOSE OF BUSINESS MAY 17 1913.
COMBINED RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS AT THE
'
Mar.29 1933. May 18 1932.
May 17 1933. May 10 1933. May 3 1933. Apr. 26 1933. Apr. 19 1933. Apr. 12 1933. Apr.5 1933.
5
5
5
$
$
5
S
S
s
RESOURCES.
2,575.405,000 2.530,940,000 2,177,750,000
2,731,939,000 2,706.759,000 2,665,104,000 2,671.746,000 2,627,454,000 2,590.790,000
bold with Federal Reserve agents
36,954,000
85.073,000
76,479,000
73,426,000
64,775,000
63,871.000
62,500,000
57,633,000
54.824,000
bold redemption fund with U.S. Treas._
2.651,884.000 2,616,013.000 2,214.764,000
Gold held exclusively agst. F. R. notes 2,786.763,000 2,764,392,000 2.727,604,000 2,735.617,000 2,692.229.000 2.664.216.000 281.560.000 247.582.000 370,787,000
bold settlement fund with F. R. Board
346,260.000 341,268,000 321,318.000 307,419,000 321,495,000 327.719.000 345.393.000 373.171,000 333,541.000
323,511.000
351.871,000
353,302,000
3s6,648.000
Sold and gold certificates held by banks_ 331.485,000 336.474,000
3,278,837,000 3,236.766.000 2,919,032,000
3,467,508,000 3,442,134,000 3.435,570.000 3,396,338,000 3,365,595,000 3,315.446,000 209,585.000 205.230.000
Total gold reserves
218.764.000 222,713,000 215.597.000 213.830.000
teserves other than gold
276.028,000
303,983,000 315,910,000
)ther cash.
3,195,060,000
3,441,996.000
3,488,422,000
Total gold reserves and other cash___ 3,771.491,000 3.758,044,000 3.654.334,000 3,619,051.000 3.581,192,000 3.529.276.000 110,070.000 131.396.000
93,551,000 106,105,000 106,957,000 109,901.000
4on-reserve cash
1,100,000
1.100,000
1,400,000
1.601,000
3,293,000
3.618.000
4,518,000
4.992.000
ledemption fund-F. R. bank note* Bills discounted:
130,707,000 138,926,000 231,800,000 189,083.000
124,077,000
93,434,000
97.976,000
72,082.000
73,379,000
Secured by U. S. Govt. obligations297,251,000 313,310.000 275,860.000
256,846,000 266,159,000 302.126.000 291,567.000 290.193,000 297.749.000
Other bills discounted
Total bills discounted
Bills bought in open market
2. S. Government securities:
Bonds
Treasury notes
Special Treasury certificates
Other certificates and bills
Total U. S. Government securities
Dther securities
Foreign loans on gold
330,225,000
77,543,000
.
420.992,000
594.482,000
338,241,000
112,607,000
400.102.000
144.152,000
385,001.000
177,450,000
414.270,011
208.443.s I
428,456.000
246,964.000
436.177.000
285,973,000
545.110,000 464.943.000
310,235,000 ' 40,643.000
421,595,000
588,922,000
421.576.000
588,972.000
421,476.000
506,083,000
421,500,000
457,873,001
421.590.000
457,872,000
421.774,000
457,871,000
422,776,000
457,872,000
358,658,000
165,422,000
826.676,000
826.730.000
909.513,000
957.725,000
957,721.000
957.723,000
957,722,000
942,323.000
821,124,000
1,837,183,( 01 1,837,368.000 1,838.370.000 1,466.403.000
1,836,598.000 1.837,193,000 1,837,278.000 1,837,072,000 1,837,104.000
5.023,000
5,402,000
5,541,000
5.541,00J
5,559,000
5.451,000
5.641,000
5.464,000
5,404,000
Total bilis and securities
2,249,770,000 2.293,505,000 2.387,173.000 2.404,974.0002.465,376.000
Gold held abroad
3.760.000
3,656,000
3,656.000
3,662.000
Due from foreign banks
3,662,000
24,829,000
20,355,000
19.471,000
17,637,000
Federal Reserve notes of other banks...
19,095,000
359,775,000 316.398,000 337.157,000 318.392,000 354,608.000
Uncollected Items
54,129.000
54,134,000
54.250.000
54,250,000
54,251,000
Bank premises
44,942.000
46,242,000
44.673.000
44.490.000
44,949,000
All other resources
2.518,144,111 2,565,059.000 2.699,117,000 1,977,012,000
6.507,985,000 6,492,504,000 6.597,883,000 6,576.202,000 6.637,394.000 6,611.026,000
Total resources
LIAR!!!TIES.
F. R. notes in actual circulation
F. It. bank note,In actual circulation
Deposits:
Member banks-reserve account
Government
Foreign banks
Special deposits: Member bank
Non-member bank
Other deposits
Total deposits
Deferred availability items
Capital paid In
Surplus
All other liabilities
3,620,000
24,211.000
321,430,000
54.123,000
57.487,000
3,760,001
20,670,000
321,107.000
54.122,000
52,646,000
3,618,000
37.143,000
316.458,000
54.037,000
64,960.000
4.629,000
14,733,000
393,311,000
58,084,000
38,457,000
6,625,522,000 6,749,825,000 5,681.286,000
'
3,644,137,000 3,747.626,000 2,558.107.000
3,299,995,000 3,349,753,000 3,395,369,000.3,424,114.00013,477,393,000 3,547.285,000
14,228,000
15,930,000
19.890,000
56.059,000
36,798,0001 24,529,000
74,218.000 • 862.835.000
2,192,403.000
1.987.311.000
1,975,731,000
2,096,079,000
2,114.283,000 2,089,115,000 2.033.939.000 2,135,808,000 2.158.636,000
26,429,000
72.294,000
85,596,000
34,992,000
25,465,000
37.165,000
42.467,000 144.406.000
31,260,000
45,578,000
17,409,000
10,935,000
10,697,000
11,088,000
27,272,000
23,021,000
26,810,000
22,943,000
63,445.000
69,342.000
72,993,000
75.603,000
77.664,000
80.512.000
86.045,000
87.467.000
15,254,000
17,466,000
19,451,000
18,921,000
18.354,000
17.461.000
16,155,000
17,642,000
25,125,000
47.441,000
36.985.000
39,518,000
57,825,000
.51,849,000
50.539.000 '56,511,000
46,859,000
2.289,535,000
2.203.154,000
2,196.055,000
2.273,730.000
2,347,538,000
2.360.101,000
2,309,541,000
2,345,451,000
2,320,454,000
387,068,000
359.558,000 316,346,000 331.621.000 315.218.000 333.854,000 314.530,000 315.745.000 331.388,000 154.784,000
150,217.000 150,229,000 150,187.000 150.330,000 149.700,000 149.636,000 149,617.000 149,645,000 259,421.000
278,599,000
278.599,000
278,599,000
278,599,000 278,599,000 278..99.000 278.599,000 278,599,000
32,371,000
25.185.000
25.439.000
27.356.000
25,947,000
25,781,000
25,692.000
21.944,000 a25.201,000
6,507,985,000 6,492,504.000 6.597.883.000 6,576,202,000 6.637,394,000 6,611,026,000 6,625,522,000 6.749,825,000 5.681.286.000
Total liabilities
•
Ratio of gold reserve to deposits and
60.2%
54.3%
59.7%,
56.9%
59.6%
60.8%
57.7%
58.8%
F. R. note liabilities combined
61.6%
Ratio of total reserve to deposits and
64.4%
56.1%
57.8%
60.6%
63.5%
64.6c;
61.5%
F. It. note liabilities combined
62.7%
.
•
Ratio of total gold reserves & other cash to
65.9%
66.4%
deposit S, F.R. note liabilities combined
67.1%
Contingent liability on bills purchased
239,948.000
46,549.000
50.330.000
48,274,000
50.223,000
42.189,000
41,340.000
48,280,000
38,886,000
for foreign correspondents
5
5
$
$
$
$
$
Maturity Distribution of Bills and
$
5
Short-Term Securities396,353,000 331,176,000
298,339,000
294,881,000
215,315,000
287,935,000
255,564,000
254,905,000
212,662,000
1-15(lays bills discounted
31,644,000
33,408.000
28,447,000
28.271.000
22.051,000
22,711,000
27,458,000
24,725.000
22,485,000
16-30 days bills discounted
49.932.000
42.898.000
38.823,000
33,731.000
49,318,000
47.382,000
48,636,000
23,570,000 '28,606,000
91-60 days bills discounted
28,665,000
62,495,000
61,700,000
63.319.000
47.222,000
62.530,000
64.701.000
49,133.000
64.943,000
31-90 days bills discounted
•_
23,526,000
9.956.000
8.868.000
8.254,000
7.744.000
6,908,000
7.168.000
7,602,000
6.565,000
Over 90 days bills discounted
Total bills discounted
1-15 days bills bought In open market
16-30 days bills bought In open market
81-60 days bills bought in open market
61-90 days bills bought In open market_
Over 90 days hills bought In open market
330.225.000
65,036.000
4.533,000
2,634,000
6,340,000
338,241,000
75,017,000
28,705,000
3,819.000
5,016,000
50,000
400,102,000
73,716.000
60,400.000
4,252.000
5.734.000
50.000
385,001.000
71.214.000
74,240,000
26,022,000
5,923.000
51.000
414.270,000
68,531,000
73.052.000
59.024,000
7,715,000
121.000
428.456,000
60,566,000
76,618,000
100.380,000
9.198,000
202,000
436,177,000
78.144,000
72.677.000
119.424,000
15,520.000
208.000
545,110,000
72.471,000
60,165,000
145.905.000
31,481,000
213,000
463,943,000
8,042,000
7,600,000
12,830,000
11,931.000
240,000
Total bills bought In open market____
1-15 days U. S. certificates and bills__
16-30 days U. S. certificates and bills81-80 days U. S. certificates and bills_
61-90 (lays U. S. certificates and Nag_
Over 90 days certificates and bills
77,543,000
86.600,000
127,875,000
73,238,000
127,056,000
405,455,000
112,607,000
95.500,000
70.750,000
120,975.000
72,100,000
467,351,000
144.152.000
52.400.000
86,600,000
164,360,000
56,000.000
467.370,000
177,450.000
91,438,000
85.300,000
210.875.000
54,550,000
467.350,000
208.443,000
127,997,000
52,400.000
246.975,000
67,450.000
462,903,000
246.964,000
60.100,000
95,497,000
156,050.000
163,675,000
482.399.000
285,973.000 310.235.000
60,000,000' 31,000,000
60.100.000
112,247,000
139,000,000 183.347.000
195.075,000 210,875,000
451.401,000 472,400,000
40,643,000
81,980,000
40.550,000
112,050,000
159,525,000
548,218,000
Total U. S. certificates and bills
1-15 days municipal warrants
16-30 days municipal warrants
81-60 days municipal warrants
61-90 days municipal warrants
Over 90 days municipal warrants
821,124,000
5.192,000
127,000
25,000
10.000
50,000
826.676.000
5,201,000
51.000
152,000
10,000
50,000
826,730,000
5,401,000
51.000
152,000
10,000
27,000
909,513,000
5.211,000
957,725,000
5,346,000
957,721,000
5.333.000
957.723.000
5,333,000
957,722,000
5,288,000
178.000
35 000
27,000
177.000
26,000
10,000
51,000
152,000
5,000
51.000
152,000
5.000
84.000
30,000
942,323,000
3,819,000
1.031,000
110,000
28,000
35,000
5,404,000
5,464.000
5,641,000
5,451.000
5.559.000
5,541.000
5.541.000
5,402,000
5,023,000
Total municipal warrants
Federal Reserve Notes2,762,673.000
Issued to F. R. Bank by F. R. Agent_ 3,556,604,000 3,613,316,000 3,871,321,000 3,715,341,000 3.760.879.000 3,843.960,000 3,965,202.000 4,092.052.000 204,566,000
256,609,000 263,563,000 275,952.000 291.227.000 283.486.000 296.675,000 321,065,000 345,026,000
Held by Federal Reserve Bank
3.299.995,000 3.349,753,000 3,395,369,000 3,424,114,000 3.477,393,000 3,547.285,000 3,644.137,000 3,747.626.000 2,558,107.000
In actual circulation
Collateral lleld by Agent as Security
for Notes Issued to BankBy gold and gold certificates
Gold fund-Federal Reserve Board
13y eligible paper
U. S. Government securities
'
eso
t
1,381,104,000 1,379,924,000 1,323,269,000 1.317,411,000 1,298,619,000 1.303,955.000 1.281,070,000 1,248,105,000 915,160.000
1,350.835,000 1,326,835,000 1,341,835,000 1,354,335,000 1.328,835.000 1.286.835,000 1,294,335,000 1,282,835.000 1,262,590,000
249,447.000 292.811.000 371,749.000 417.659,000 485.164.000 518,837.000 568,406.000 715.594,000 465.844,000
613.400,000 633,400,000 659.400,000 650,500,000 690.000.000 768,000.000 853,700.000 868.700.000 145,300,000
3,594,786.000 3.632.970,000 3.696.253,000 3,739,905,000 3.802.618.000 3.877.627.0003 ,997,511,000 4.115.234,000 2,791,894,000
Total_
• •"Other cash" does not IncludeFederal Reserve notes or a Bank's own Federal Reserve bank notes. a Revised.
CLOSE OF BUSINESS MAY 17 193
WEEKLY STATEMENT OF RESOURCES AND LIABILITIES OF EACH OF THE 12 FEDERAL RESERVE BANKS AT
Two Ciphers (00) omitted.
mutt. Boston. New York. Phila. cerelana. Richmond Atlanta. Chicago, St. Louis. Minneap. Kan.City. Dallas. San Fras,
Federal Reserve Bank of5
$
$
$
$
5
$
$
$
$
$
$
$
RESOURCES.
206,219,0 654,546,0 171,000,0 197,970,0 149,665,0 90,10010 807,987.0 124,675,0 54,021,0 87,290,0 22,203,0 166,263.0
Gold with Fed. Res. Agents__ 2,731,039,0 5.338,0
8,545.0 4.813.0 7,392,0 2,058.0 3,506.0
6,450,0 1.389,0 2,375,0 2,964,0 1,368,0 8426.0
54,824,0
Gold redm.fund with U.S.Treas.
211,557,0
Gold held excl. aget F.R.notee 2,786,763,0 9,824.0
Gold settlern't fund with F.R.Bd 346,260.0 22,141,0
334,485,0
banks.
by
held
Gold & gold ctfs.
663,091,0 175,813,0 205.362,0 151,723,0 93,606,0
93,943,0 15,061.0 20.750,0 21.635,0 8.461,0
200,517,0 16,600,0 25,265.0 4,211.0 5,276,0
814,437,0 126,064,0 56,396,0 90,254,0 23.571.0 174,689.0
78,833,0 22,454,0 16.096,0 17,296,0 10,625.0 31,282.0
111.049,0 2.034.0 1.397,0 13,827,0 6,008,0 26,151.0
3.467.508.0 243.522.0
957.551.0 207.483.0 251.377.0 177.569.0 107 343 0
0043100 inn 5:12 n 72 000 0 125 277 0 40 20140 232.322_0
Totalgold reserves
3486
Financial Chronicle
May 20 1933
Weekly Return of the Federal Reserve Board (Concluded).
Two Ciphers (00) omitted.
Total.
RESOURCES (Concluded)Other cash*
Boston,
New York.
Phila,
Cleveland. Richmond Atlanta.
Chicago.
St. Louts. Iftnneap. Kan.City. Dallas. San Fran.
$
$
303,983,0 22,510,0
2
$
$.
$
5
90,667,0 25,230,0 24,587,0 15,863,0 14,950,0
2,249,770,0 127,521,0
3,662,0
280,0
19,095,0
269,0
359,775,0 40,013,0
54,251,0 3,280,0
44,949,0
765,0
824,806,0 184,901,0 246,175,0 67,549,0 73,142,0
1,353,0
403,0
362,0
142,0
128,0
5,010,0
394,0 • 827,0 1,281,0
959,0
96,965,0 28,806,0 34,802,0 29,424,0 10,341,0
12,818,0 3,337,0 6,929,0 3,238,0 2,422,0
22,429,0 3,800,0 1,965,0 3,111,0 5,024,0
LIABILITIES.
FR.notes In actual circulation_ 3,299,995,0 223,152,0
F. R. bank notes imacel eircurn
74,218,0 12,466,0
Deposits:
Member bank-reserve account 2,114,283,0 121,031,0
Government
31,260,0
853,0
Foreign bank
22,943,0 1,686,0
Special-Member bank
87,467,0 3,072,0
Non-member bank
17,642,0
Other deposits
46,859,0 4,747,0
•
710,247,0 247,317,0 325,811,0 168,879,0 130,668,0
34,443,0 5,537,0 2,996,0
1,085,0
859,127,0 146,914,0 93253,0 115,762,0 37,790,0 24
1,075.0
16,144,0
39,0
497.0
570,0
441,0
988,988,0 115,481,0 133,393,0 64,528,0 42,640,0
11,746,0 1,401,0 2,014,0 3.424,0 1,155,0
7,557,0 2,426,0 2,287,0
901,0
809,0
5,813,0 6,941,0 13,016,0 6,176,0 6,801,0
. 1,442,0 1,668,0
843,0 1,767,0
359,0
91,0 6.564,0 4,320,0 2,882,0
12,662,0
271,542,0 62,404,0 40,220,0 73,445,0 49,957,0 150,654,0
3,862,0 2,229.0
985,0
926,0 1,071,0
1,594,0
3,003,0
786,0 7
531,0
670,0
670,0 1,617.0
31,265,0 3,347,0 1.151,0 4.537,0'261,0 5,087.0
5,312,0 3,436,0 2,048,0
137,0
630,0
3,276,0 4,281,0
958,0
324,0
134,0 6,620,0
$
$
44,821,0 13,612,0
$
$
$
3
5,023,0 10,788,0 10,948,0 24,984,0
Totalgoldreserves&other cash 3,771,491,0 266,032,0 1,048,218,0 232,713,0 275,964,0 193,432,0 122,293,0 949,140,0
164,164,0 78,912,0 132,165,0 51,152,0 257,306,0
Redern fund-F.R. bank notes_
4,992,0 1,000,0
2,000,0
292,0
250.0
100.0 • 1.000,0
100,0
100.0
50,0
100,0
Bills discounted:
See. by U.S. Govt.obligations
73,379,0 4,569,0
33,685,0 9,365,0 11,820,0 2,318,0 2,216,0
3,771,0
862,0
246.0
1,147,0
732,0
2,648,0
Other bIlls discounted
256,846,0 9,950,0
44,367,0 36,183,0 55,224,0 16,142,0 19,046,0
12,045,0 2,091,0 7,524,0 11,972,0 5,521,0 36,781,0
Total bilis discounter!
330,225,0 14,519,0
78,052,0 45,548,0 67,044,0 18,460,0 21,262,0
15,816,0 2,953,0 7,770,0 13,119,0 6,253,0 39,429,0
Bills bought In open market_ ....
77,543,0 19,891,0
11,658,0 1,687,0 2,591,0
940,0 23,231,0
17,787,0 2,532,0 4,188,0
673,0
508,0 11,857,0
U. S. Government securities:
Bonds.
420,992,0 19,739,0 188;224,0 30,910,0 36,365,0 9,916,0 10,040,0
39,902,0 13,957,0 17,261,0 11,958,0 16,990,0 25.730,0
Treasury notes
594,482,0 32,604,0 234,277,0 47,205,0 62,289,0 16,989,0 17,156,0
68,348,0 23,052,0 16,664,0 19,846,0 11,975,0 44,077.0
Special Treasury certificates_
Certificates and bills
821,124,0 40,768,0 307,873,0 59,026,0 77,886,0 21,244,0 21,453,0 148,301,0 28,823,0 20,543,0 24,816,0 14,975,0
55,116,0
Total U.S. Govt.securities_ 1,836,598,0 93,111,0 730,374,0 137,141,0 176,540,0 48,149,0 48,649,0 256;551,0
65,832,0 54,768,0 56,620,0 43,940,0 124,923.0
Other securities
5,404,0
4,722.0
525,0
50,0
107,0
Bills discounted for, or with
(-), other F. R. banks
Total bills and securities
Due from foreign banks
Fed. Res. notes of ether banks
Uncollected items
Bank premises
All otter resources
290,204,0 71,317,0 66,833,0 70,412,0 50,701,0 176,209,0
499,0
16,0
11,0
106,0
106,0
256,0
2,719,0
951,0
760,0 1,596,0
296,0 1,033,0
46,373,0 15,111,0 8,889,0 19,298,0 12,471,0 17,282,0
7,601,0 3,285,0 1,746,0 3,559,0 1,792,0
4,244,0
1,319,0
880,0 1,796,0 1,038,0 1.414,0 1,408,0
6,507,985,0 439,160,0 2,016,599,0 454,646,0 567,274,0 298,177,0 214,409,0 1,298,855,0 255,824,0 159,047,0 228,224,0 118,032,0
457,738,0
Total resources
Total deposits
Deferred availability items
Capital paid In
9urplus
All other liabilities
2,320,454,0
359,558,0
150,217,0
278,599,0
24,944,0
131,389,0 1,028,208.0
92,973,0
40,187,0
10.768,0
58,526,0
20,460,0
85,058,0
738,0
7,144,0
128,008,0
27.727,0
15,800,0
29,242,0
1,015,0
158,117,0 81,116,0 54,646,0
35,280,0 29,730,0 9,981,0
13,895,0 5,454,0 4,599,0
28,294,0 11,616,0 10,544,0
2,881,0 1,382,0 2,886,0
318,260,0 76,483,0 45,893,0 80.039,0 52,093,0 166,202,0
47,021,0 17,002,0 8,542,0 18,726,0 14,227,0 18,162,0
15,552,0 4,046,0 2,822,0 4,247,0 3,885,0 10,623,0
39,497,0 10,186,0 7,019,0 8,263,0 8,719,0 19,701,0
3,254,0
1,154,0 1,021,0
617,0
877,0 1,975,0
6,507,985,0 439,160,0 2,016,599,0 454,646,0 567,274.0 298.177,0 214.409.0 1.298,855,0 255,824,0 159,047,0 225,224,0
118,032,0 457,738,0
Total liabilities
Memoranda.
Ratio of total gold reserves and
other cash* to depogit dr F. It.
note liabilities combined
"JOntingent liability on bills purchased for for'n correspondents
67.1
75.0
60.3
62.0
57.0
77.4
66.0
80.6
73.5
56.7
67.5
56.9
63.2
38,886,0
2,838,0
12,989,0
4,083,0
3,850,0
1,516,0
1,361,0
5,055.0
1,322,0
894,0
1,128,0
1,128,0
2,722,0
•"Other cash" does not include Federal Reserve notes or a Bank's own Fe leral Reserve bank notes.
FEDERAL RESERVE NOTE STATEMENT.
Federal Reserve Agent at-
Total.
Boston. New York.
Phila.
Cleveland. Richmond Atlanta.
Chicago.
St. Louis. Minneap. Kan.City. Dallas. San Fran,
Two Ciphers (00) omitted.
$
$
Federal Reserve notes:
Issued to F.R.Bk. by F.R.Agt. 3,556,604,0 237,388,0
Held by Fed'I Reserve Bank: 256,609,0 14,236,0
793,440,0 261,577,0 340,005,0 175,413,0 153,512.0
83,193,0 14,260,0 14,194,0 6,534,0 22,844,0
894,864,0 157,078,0 96,909,0 126,423,0 40,696,0 279,299,0
35,737,0 10,164.0 3,658,0 10,661,0 2,906,0 38,224,0
In actual circulation
3,299,995,0 223,152,0
Collateral held by Agent as security for notes Issued to bks:
Gold and gold certificates
1,381,104,0 70,202,0
Gold fund-F.It. Board
1,350,835,0 136,017,0
Eligible paper
249,447,0 16,093,0
U.S. Government securities
613,400,0 17,500,0
710,247,0 247,317,0 325,811,0 168,879,0
!
423,446,0 94;050,0 86,470,0 49,160,0
231,100,0 76,950,0 111,500,0 100,505,0
60,427,0 22,146,0 43,202,0 .12,445,0
80,000,0 70,000.0100.000,0 17,000,0
130,668,0
859,127,0 146,914,0 93,253,0 115,762,0 37,790, 241,075,0
21,100,0
69,000.0
17,173,0
47,000,0
430,987,0 41,975,0 29,021,0 20,490,0 18,703.0 95,500,0
377,000,0 82,700,0 25,000,0 66,800,0 3,500,0 70.763,0
27,834,0 4,112,0 9,055,0 7,078,0 6,285,0 22,997,0
71,000,0 29,000,0 33,900,0 35,000,0 13,000,0 100,000,0
TntAl onlIsttarwl
R ',OA 7sza
0990 2190
5
$
704 '179
n
$
909 1411
n .5.11
S
S
2
3
179 n 17n ltn n 104 9790
grin
291
2
$
$
$
n 137.787.0 97.576.0 129.368.0 41.488.0 289.260 n
FEDERAL RESERVE BANK NOTE STATEMENT..
Federal Reserve Agent atTwo Ciphers (00) omitted.
Federal Reserve bank notes:
Issued to F. R. Bk. (outstdg.)
Held by Fed.
'Reserve Bank_
In actual circulation
Collat.pledged agst.outst. notes:
Discounted & purchased bills_
U. S. Government securitiesTotal collateral
Total.
Boston.
Yew York.
Phila.
Cleveland Richmond Atlanta.
Chicago.
St. Louis. Minneap. Kan.City. Dallas. San Fran.
3
99,434,0 15,680,0
25,216,0 3,214,0
47,474,0
13,031,0
6,280,0
743,0
74,218,0 12,466,0
34,443,0
5,537,0
4,720,0
1,724,0
2,996,0
1,085,0
25,521,0
1,395,0
44,696,0 17,430,0
95,474,0
47,474,0
8,000,0
140.170,0 17,430.0
47.474.0
8,000.0 25.521.0
20,600,0
4,456,0
• 1,140,0
55,0
160,0
121,0
580,0
83,0
1,000,0
430,0
1,800,0
1,359,0
39,0
497,0
570,0
441,0
30,000,0
245,0
5,000,0
2,000,0
1,000,0
105,0
2,000,0
30.000,0
5,245.0
2,000,0
1,000,0
2,105,0
16,144,0 .
1,395.0
Weekly Return for the Member Banks of the Federal Reserve System.
Following is the weekly statement issued by the Federal Reserve Board, giving the principal items of the resources
and liabilities of the reporting member banks from which weekly returns are obtained. These figures are always a week
behind those for the Reserve banks themselves. Definitions of the different items in the statement were given in the statement of Dec. 14 1917, published in the "Chronicle" of Doc. 29 1917, page 2523. The comment of the Reserve Board upon
the figures for the latest week appears in our department of "Current Events and Discussions" on page 3442, immediately preceding which we also give the figures of New York and Chicago reporting member banks for a week later.
1929, the loan figures
Beginning
statement
of Jan. 9
exclude "Acceptances of other banks and bills of exchange or drafts sold with endorsement" and Include
with the
all real estate mortgages and mortgage loans held by the bank. Previously acceptances of other banks
sold with endorsement were included with loans, and some
and
of the banks Included mortgages In investments. Loans secured by U. S. Government obligations are noMs
longer shown separately, only the total of loans on securities
being given. Furthermore, borrowing at the Federal Reserve Is not any more subdivided to show the amount secured by U.S. obligations and those secured by commercial
paper, only slump total being given. The number of reporting banks formerly covered 101 leading cities, but was
reduced to 90 cities after the declaration of bank holidays
or moratoria early in March 1933. Publication of the weekly returns for the reduced number of cities was omitted
in the weeks from March 1 to May 10, but a summary
of them Is to be found In the Federal Reserve Bulletin. The figures below are stated in round millions.
•
PRINCIPAL RESOURCES AND LIABILITIES OF WEEKLY REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT AS AT CLOSE OF
BUSINESS May 10 1933 (in millions of dollars).
Total.
Boston. New York
Phila,
Cleveland. Richmond Atlanta. Chicago. St. Louis. )ifinneap. Kan.City. Dallas. San Fran.
$
16,318
$
1,165
$
7,743
Loans-total
8,404
656
3,858
528
On securities
All other
Investments-total
3,715
4,689
7,914
260
396
509
1,945
1,913
3,885
271
257
463
4,908
3,006
1,536
211
10,509
4,318
231
1,255
2 700
319
190
90
17
719
381
8
127
158
2,514
1,371
843
49
5,834
1,109
121
120
1,304
217
246
68
10
596
261
13
107
158
NDW
Federal Reserve District-
1
$
$
444
295
476
362
$
1,693
810
220
161
210
215
904
401
409
623
92
128
224
49
112
134
58
152
266
67
148
147
213
691
789
374
249
201
56
1,007
469
10
262
310
124
100
40
8
261
157
2
72
84
71
63
19
5
146
141
162
104
46
13
319
159
1
116
145
1
93
54
27
8
212
123
5
67
70
2
460
329
88
13
523
893
54
129
145
30
308
$
1,433
491
171
180
242
249
600
59
112
146
58
122
128
100
46
• 25
10
175
129
3
67
58
WW
317
WW
Nw
0^W0'..JW0'0'WW
99
•
U.S. Government securities
Other securities
Reserve with F. R. Bank
:ish In vault
Set demand deposits
rime deposits
3overnment deposits
Due from banks
Due to.banks
-
3
1,091
991
•-•
Loans and investments-total
S
.
$
$
$
72
64
$
or, ,11,tfinanftat
T„,intorta (41-tritirie
PUBLISHED WEEKLY
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6 Mos.
12 Mos.
Including Postage—
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7.75
13.50
_
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•
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year
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Treas., William Dana Seibert; Sec., Herbert D.Seibert. Addresses of all.
Friday Night, May 19 1933.
Railroad and Miscellaneous Stocks.—The Review of the
Stock Market is given this week on page 3476.
The following are sales made at the Stock Exchange this
week of shares not represented in our detailed list on the
pages which follow:
Sales
for
Week.
Range for Wee/c.
Lowest.
Highest.
Range Since Jan. 1.
Lowest. I Highest.
Par Share. $ per share. 8 per share. $ per share.$ per share.
Railroads—
May
APr 79
Central RR of N J.100 1,000 71 16 May 18 77 May 18 38
May
May 58
10 58 May 18 58 May 18 58
C C C & St L pref _ _100
May
390 20 May 16 23 May 17 124 Apr 23
Co!& Seuth•n 1st p1100
May
946
Jan
24
17
16
May
100
934/clay
8
90
Cuba RR prat
46 May
4 Feb
%May 17
%May 13
700
Duluth S S & A prat 100
100 414May 17 414May 17 274 Apr 414 May
Iludson & Manh p1..100
Mar 374 May
III Cent preferred_ _ _100 1,500 274May 15 3746May 19 16
May
Mar 49
270 41 May 15 49 May 18 31
100
Leased lines
44 May
Mar
14
15
44May
15
Am
160
44May
.....1,
Cent
of
Rys
Int
50 34May 15 34May 15 146 Mar 346 May
*
Certificates
May
100
610 12 May 19 14 May 17 44 Apr 14
l'referred
Jam 24 Apr
41(11 I May 13 14May 13 1
100
Iowa Central
4 Feb
16 May
ir%lay 15
4May 15
120
100
Market St RY
May
4 Apr 3
900 1.4May 13 3 May 17
M St P & S S M p1_100
Apr 734 Mar
280 5 May 15 64May 17 4
100
Leased line
May
Jan 37
650 31 May 13 37 May 19 13
Nash Chatt & St L.100
44 May
4 Mar
4May 17
4hlay 17
240
Nat Rysof M ex 1st pf 100
May
Feb 3
200 246Nlay 15 3 May 19 1
Pacific Coast 2d p1_100
Jan
Jan 99
120 97 May 15 .98 May 17 99
Rensserr & Saratoga100
May
Jan
1246
6
13
_100 1,000 12 May 13 124May
Rutland RR
May
Jan • 24
0etts100
pref.300 22 May 17 24 May 17 8
South Ry NI &
•
Indus. & Miscall.—
34 Feb 3 May
Am Mach & Met etts.•
500 24May 15 3 May 16
Amer Radiator & Stand
May
Sanitary pref____100
50 100 May 18100 May 18 '8146 Apr'103
200 4 May 15 44May 15 34 Feb 446 May
Art Metal Construct_10
May
Feb 48
Asso Dry Gds 1st p1100 1,000 42 May 15 48 May 19 18
May
Jan 43
2d preferred
100
300 40 May 15 43 May 17 15
Feb 2 May
430 1641May 13 22 May 19 1:3
Austin Nichols prior A •
30 1346May 19 1346May 19 534 Api 134 May
Barker Bros pref. _ _100
300 154Nlay 17 1846May 16 (34 Apl 184 May
Bigelow-Sanford Carp •
Ape 354 Feb
20 35 May 18 35 May 18 24
Blumenthal & Co pf 100
46 May
46May 15
34 Jan
46May 15
100
Burns Bros claks A etre•
146 May
Mar
13
%May
34
100
4May 13
City Stores ctfs
•
May
Apr 35
70 30 May 16 35 May IS. 16
Cob Fuel & Iron p1_100
60 20 May 16 204May 17i Is 4 Mar 204 Jan
Comm Cred prat (7).25
May 334 May
50 304May 15 334May 171 17
CrownWillamettelstpt•
May
Mar 90
10 80 May 1,9 86 May 19 II
CushninSonspf(7%)100
Apr
30 68 May 18 68 May IS, f31.,.; Jan 70
Preferred (834)...._•
May
Dresser Mfg class A _.• 2,300 144614lay 15 17 May 17 634 Feb 17
• 17,200 .746May 13 104May 17' 2.6 Mar 1034 May
Class It
% Apr 14 May
181) 1 May 15 1 May 15
Elk Horn Coal pref__50
May
700 30 May 19 40 May 17 1034 Apr 40
Eng Pub Serf Rid (6)_.•
19,
24
Apr 54 May
54May
19
6May
5
50
Co
prefetts.100
FairbIts
May
I,eb 7
50 6 May 15 7 May 15' 3
Fash l'k Assoc pref_100
May
Jan, 45
10 45 May 13 45 May 13 12
Franklin-Simon prat 100
May
Apr1113
Freeprt-Tex Co pref 100
600 112 May 13 113 May 17 •+7
46 Ape 146 May
240 146May 15 14May 15+
Gen Gas & Mee el B•
4pr
Feb 25
17 MaY 16 1846May 19 5
Guantanamo Sugpfd100
• 5,211 234/clay 15 54May 18 2.6 Apr 558 May
Hamilton Watch
May
Mar! 68
10 68 May 15 68 May 15 4s
Harblson-W Ref pfd 100
4 Marl 24 May
180 134 May 1: 284May 13,
1
Hat Mfg class A
May
100
10 7 May 16 7 May 16 ro-g Apr 10
l'referred
Houdaille-Hershey WA* 1,500 834 May 18 114Nlay 17. 44 Apr 114 May
460 434 May 16 946Nlay 19 446 May 94 May
Ind Motorcycle prat 100
176 May 44 Jan
Int Comb Eng pfd etre• 1,500 2 May 19 3 May 18
Jan 234 May
Keith-Albee-Orp pfd100
300 20 May 15 2346May lb S
Mar 54 May
300 5 May 15 54May 13 2
Kelsey-Hayes Whl cl BI
May
3
I
Marl
May
15
3
15
3
101)
-_*
Stores_
Dept
May
Kresge
Jan
180 55 May 13 56 May 17 374 Apr 6,1
Laclede Gas pref. _ _100
May 65
Jan
100 50 May 19 50 May 19 50
100
Common
May
Feb13
3
17
May
t3
10
034
May
pref
170
100
Mallinson & Co
600 146May 16 3 May 18
May
4 Jan 3
Martin-Parry Corp. _4+
Jan 3634 May
740 3246Nlay 18 3646May 15 22
Mengel to Co pref..1001
Apr
Apri 55
10 55 May 19 55 May 19 55
Mexican Petmleum_100
17
46 May 24 May
74,630
24May
13
rts.
!rod
14,May
Distillers
Nat
44
May
13
MaIl
134
346May
17
__I
3
2.400
May
Industries_
Newport
Apr
Jan 75
100 7446N1ay 17 7436May 171 64
Omnibus Corp pref.100
Panhandle Producing &
May
Jan(
104
534
15
15
190 10 May
100
1034/clay
Kenning prat
4 Feb 5
May
100 3 May 17 3 May 17
Penn Coal & Coke _50
46 Feb(24 May
19
Pitts Terminal Coal 100 2,500 134/clay 13 246MaY
Apr
Jan 8
150 . 64May 18 8 May 17 4
100
Preferred
Feb 32 May
110 23 May 15 32 May 18 7
Revere COD & Br p1100
IS
Feb
14
May
17
16
200
14
May
1534/clay
Rhine Westph El it Pr_
Jan
10 1538/clay 16 154May 16 114 Mar 18
Shell Transp & Trad.52
Jan 2046 May
200 1934/clay 19 20.44MaY 18 7
Sloss-Sheff St & Ir 100
May
990 2434/clay 15 30 May 17 84 Feb 30
100
l'referred
Jan
Jan 25
10 20 May 15 20 May 1 20
Spear & Co prat— I00
245 May, 434 May
1 82,200 334/clay 15 434/clay 1
SperrycorpVto
Mar 546 May
300 5 May 13 546May 19 3
United Amer Bosch. _ _e
May
10 35 May 10 35 May 181 274 Jan 35
United Dyewood pf-100
30 107 May 13107 May 13,10134 Jan 1074 .Jan
Ti S Gypsum pref....100
Mar 1304 Mar
18 125
181274May
10
_100
1274May
_
prat_
baCCO
To
S
Range for 1Veek.
Sales
for
1Veek.
STOCKS.
Week Ending May 19.
Lowest.
Highest.
Range Since Jan. 1.
Highest.
Lowest.
Shares S per share. $ per share. 1$ per share.S per share.
May
Apr 106
70 104 May 17 106 May 151 96
Apr 1244 Slay
250 9 May 15 114May 15: 4
May
2146
May
181
1434
60 18 May 15 2146May
May
540 8 May 17 10 May 171 246 Feb' 15
May
86
Feb'
57
15
May
19
85
May
50 80
May
34 Aprl 2
34/clay 17 2 May 19
310
May
Feb 37
300 35 May 16 37 May IR' 15
Indus. &M1Iisc. (Conc.)
linty Leaf Tob prat_ 100
Union Plpe'& Rad pf100
Van Raalte pf stpd_100
Va Iron Coal & Coke100
Vulcan Detinning pf100
Wells Fargo & Co_ ___1
Wheeling Steel pref_100
•No par value
Quotations for United States Treasury Certificates of
Indebtedness, &c.—Friday, May 19.
Maturity.
Dec. 15 1933._ _
Sept.15 1933 _ _ _
June 15 1933._.
Aug. 1 1934...
Feb. 1 1938....
Dec. 15 1936_ .
Am lx loqn
/M.
Rate.
Bid.
Asked.
Si%
134%
14%
241%
234%
24%
A%.,
9,
100,32
100,6
100833
1012.3
992132
100+133
mime
1000,3
100.033
100.°32
1012133
99"st
100.432
lorm,,
Maturity.
fru.
Raze.
Bid.
Asked.
May 2 1934...
June 15 1935._.
Apr. 15 1937._.
Aug. 11936...
Sept. 15 1937._
Aug. 1.51933...
Dec. 15 1933_
3%
3%
3%
34%
334%
4%
44%
10210,2
102.7,3
101,32
102%3
1013031
1003%3
1021n
10215Is
102,031
101,33
10213s
102'32
101w%
102,3s
U S. Treasury Bills—Friday, May 19.
are for discount at purchase.
quoted
Rates
Bid..
WILLIAM B. DANA COMPANY, Publishers,
STOCXS.
Week Ending May 19.
3487
Financial Chronicle
Volume 136
Stay
May
June
June
June
July
24 1933
31 1933
7 1933
211(133 '
28 1933
5 1933
0.55%
0.55%
0.55%
0.55%
0.55%
0.55%
Asked.
Bid.
Asked.
0.25%
0.25%
0.25%
0.25%
0.25%
0.25%
0.55%
0.55%
0.55%
0.55%
0.55%
0.55%
0.30%
0.30%
0.30%
0.30%
0.30%
0.30%
July 12 1933
July 19 1933
July 26 1933
Aug. 2 1933
Aug. 9 1933
Aug. 16 1933
United States Liberty Loan Bonds and Treasury
Certificates on the New York Stock Exchange.—
Below we furnish a daily record of the transactions in
Liberty Loan and Treasury certificates on the New York
Stock Exchange. The transactions in registered bonds are
given in a footnote at the end of the tabulation.
May 18 May 19
Daily Record of U. S. Bond Prices. May 13 May 15 May 16 May 17--— —
102,33 102'n
IRISh 1021n 102ht Hinz
First Liberty Loan
10181s: 102+32 10181st 101,,n 1011+31
34% bonds of 1932-47..)Low_ 102
102
102.”
,32 101,In
102
32
,
"
,
102
n
,
102
Close
(First 34s)
46
193
82
5
89
Total sales in $1.000 units... • 7
_
Hig
{
of
bonds
4%
Converted
Low.
2
193 -47 (First 4s)...
Close
Total tales in $1.000 units__ _
1072-13-1- 102,32 10723W • iciic 10-213;
Converted 434% bonds(High
102
102,32 102'st 102
102
of 1932-47 (FIrst 44s)1Low_ 102
102,32 102,33 102ht 102'st 102
(Close 102
20
212
76
17
24
11
Total sales in $1.000 units...
:. econd converted 441% High
bonds of 1932-47 (lira)Low_
Close
Second 434*)
- -Total sales in $1,000 units _.! _
(High 10-3-,T3-2 1023+31 102.32 1072-sTs; 102":: 102"rt
Fourth Liberty Loan
102"st
102"st
102"at
102,433
"st
102,
102,,n
Low_
44% bonds of 1933-38 _.
102"it 102,03,
Close 102,032 104,032 102,42
(Fourth 45a)
45
75
243
36
102
22
Total sales in $1,000 units_ _ _
109'st 108,032
{High 109,n 109,31 109"st 109
Treasury
Low_ 108un 108,032 109":: 108,,st 1031'st 106,,33
43.5s, 1947-52
1081112 108,,n
109,32 109":: 109
Close 109
59
299
140
168
389
148
Total sates in $1,000 units_ _ _
(High 105,1n 105,,32 105":: 105,,n 105"st 1058n
10.51n
105"st
105+131
105"s:
105+
132
Low_ 105,032
Is. 1944-1954
Close 105,032 105+032 105"st 105"st 105"st 105032
34
258
303
169
317
118
Total sales in $1,000 units...
103,0n
{High 104.32 104132 104'st 105"st 103"st
103"st 103+03,
104
104
Low_ 1041n 104
34s. 1946-1956
42
Close 1041n 104,32 104's: 104"st 103"st 103,
42
69
54
105
127
59
Total sales in $1.000 units_ _ _
101432
{High 101,,n 101,033 101"s: 101"st 101"st 10143s
Low. 101,h2 101 1132 101"z: 101"st 101"st 101,
334,, 1943-1947
32
Close 101,to 101"at 101"s: 10110st 101"st
66
168
31
12
2
Total sales in 31,000 units...
Won
1 High 98,032 98'o,, 0814,, 98"st 98033
98,n
984,32 98"st 95,33
Low_ 981132 98"st
3s, 1951-1955
98,
32
98032
Close 0S1S” 98158, 98,1n
206
98
745
32
221
81
Total sates in $1.000 units_ _ _
101,,33
101"3s
101"st
101lon
101,,32
101,332
{High
Low. 101,333 101"st 1011.42 101"st 101+033 101,31
346s, 1940-1943
Close 101,833 101"st 101+132 101"s: 101+432 101032
6
15
• 29
138
28
152
Total sales in 31.000 units...
{High 101,332 101,033 101,932 101"s2 1011,33 1011,32
101,
1011,32
33
101"a:
101,032
101,132
101,33s
Low_
306+3. 1941-43
Close 101,332 1011132 101"st 101"at 1014,32 101,31
119
2
30
85
28
63
Total sates in $1,000 units_ _ _
(High 99,332 99.033 99"st 9921,1 99+,32 99+031
Low. 991332 991032 991133 99":: 991+32 99033
346s. 1946-1949
99133.
Close 991532 99"st 99.132 99"st 991132
170
319
440
164
147
145
Total sales in $1.000 units_ _ _
Note.—T1) above table includes only sales of coupon
bonds. Transactions in registered bonds were:
102,,,, 30 102'',,
10123,, to 101";, 64 4th 4369
3 lot 44s
Foreign Exchange.
To-day's (Friday's) actual rates for sterling exchange were 3.8534 @3.8934
for checks and 3.8534@3.89% for cables. Commercial on banks, sight,
3.85. 60 days, 3.84:90 days, 3.8334, and documents for payment 60 days,
3.8434. Cotton for payment, 3.85 4.
To-day's (Friday's) actual rates for Paris bankers' francs were 4.4834(4)
4.584 for short. Amsterdam bankers' guilders were 45.85(446.20.
Exchange for Paris on London. 86.03, week's range. 86.12 francs high
and 85.60 francs low.
The week's range for exchange rates follows:
Checks.
Cables.
Sterling, Actual—
3.9734
3.9758
High for the week
. 3.8558
3.8534
Low for the week
Paris Bankers' Francs—
4
4.623
4.63
High for the week
4.4834
4.5134
Low for the week
Germany Bankers' Marks—
27.58
27.60
High for the week
26.62
26.63
Low for the week
Amsterdam Bankers' Guilders—
47.30
47.26
High for the week
45.86
45.85
Low for tho week
The Curb Exchange.—The review of the Curb Exchange is
given,this week on page 3477.
A complete record of Curb Exchange transactions for the
week will be found on page 3504.
May 20 1933
Report of Stock Sales-New York Stock Exchange
DAILY, WEEKLY AND YEARLY
Occupying Altogether Eight Pages-Page One
Pr FOR SALES DURING THE WEEK OF STOCKS NOT RECORD
ED IN THIS LIST, SEE PAGE PRECEDING.
HIGH AND LOW SALE PRICES-PER sliAnE, NOT PER CENT.
Saturday
May 13.
Mmufay
May 15.
Tuesday
May 16.
Wednesday
May 17.
Thursday
May 18.
Friday
May 19.
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE.
PER SHARE
Range Sings Jan. I
On basis of 100-shore .ota.
PER SHARE
Range for Precious
Year 1932.
Lowest.
Highest.
Lowest.
Highest.
S per share S per share $ per share $ per share S per share S per share
Shares.
Railroads
$ per share $ per share $ per share $ per
liar
5918 6112 5734 5938 5812 6078 61
6212 5934 6318 6018 625 90,400 Atch Topeka & Santa Fe 100
share
3158
25
Feb
6318May 18
6934 7012 .70
1778 June 94
7012 7012 714 71
72
Jan
718 7112 71
72
1,600
Preferred
100 50 Apr 3 72 May 17
38
42
35 July 86
3934 4112 3934 4212 42
44
Jan
4214 447
4158 44
39,900 Atlantic Coast Line RR_ 100 1612 Feb 25 4478May 18
1514 1614 1518 1558 148 157
934 May 44 Sept
16
16* 16
1718 1614 47% 121,900 Baltimore & Ohio
100
814 Feb 27 1718May 18
1912 2014 1912 20
334 June 21% Jan
19
20
20
2178 201? 2212 21
2134 5,610
Preferred
94 Apr 5 2212M8Y 18
100
3014 3112 *2978 3014 3012. 3012 3114 317
6 June 4112 Jan
3112 34.
32
3234 4,100 Bangor & Aroostook
60 20 Jan 5 34 May 18
.87
9134 *86
912 June 3534 Aug
90
*87
90 • 88
88
88
88
88
88
30
Preferred
100 6838 Jan 4 89 May 11
13
13' *11
50 June 91 Sept
13
1234
1312 1334 133 14
14
14
1,000 Boston & Maine
100
6 Apr 19 14 May 18
4 July
*3713 412
414 414
*378 418
418 414
1934 Sept
414 5
5
634 3,400 Brooklyn & Queens Tr..No par
634May 19
*4212 447 *4212 4412 *4212 4412 4412 45
3,2 Mar 29
2% July
1014 Mar
50
50
*48
543
500
Preferred
No par 3534 Apr 19 50 May 18
3114 3214 3034 328 3034 3178 3114 3234 3118 3278 32
2314
June 58 Mar
3418 57.800 Skim Nfanh Transit
No
par
213
4
25
Feb
3418May
19
*7512 7714 *75
1118 June 60% Mar
7618 77
7718 *75% 77
87514 7612 76
7612
300
$6 preferred series A _No par 64 Mar 2 8078 Mar 27
112
112
3112 June 7838 Mar
138
112
138
138
114
112
112 2
134 218 10,900 Brunswick Ter & Sty SecNo par
12 Jan 11
2186lay 19
1234 1312 1234 13
12 Apr
1313 1318 1334 1234 1312. 1258 13
218 Aug
13
80,500
Canadian
Pacific,
25
712
Apr
3
145* Jan 6
•60
65
*60
714 Slay 205* Mar
65
*60
65
*60
65
*60
67
62
62
10 Caro Clinch & Ohio stpd...100 5014 Apr 4 62 May 19
35
36
39
July 70 Feb
3512 3512 37
3458 3512 35
3514 3634 3514 36
85,200 Chesapeake & Ohio
25
24%
Feb
28
37
May
17
•1
134
112
934 July 3112 Jan
112
112
1 12 *114
134
114
114
112
112 1,700 Chic & East III Ry Co
12 Apr 18
100
112Nlay 15
2
2
12 July
134 2
334 Aug
214 214
214 214
2
214
212 212 2,500
6% preferred
12 Apr 5
100
212May 19 • 12 May
418 438
6 Aug
438 47
4!-1
5
45,
514
5
514
434 518 26.200 Chicago Great Wegtern...._100
13*
Apr
6
514Ma
y 17
8
53 Aug
114 June
83
812 878
97 24.100
838 878
8% 958
9
10
9
Preferred
100
212 Apr 5 10 May 18
212 May
318 3,4
34 312
1512 Jan
318 38
312 38
358 378
14,300 Chic MIlw St P & Pao_ _No par
38 4
1 Apr 6
4 May 10
458 514
434 5
534
44 Aug
114 June
434 .5
5
5%. 57
514 534 50,800
Preferred
112
100
Feb
28
578N1ay 18
834 912
118 May
838 914
8 Aug
918
978
858 914
918 1014
98 108 131.800 Chicago & North Western.100
114 Apr 5 1038May 19
1338 16
2 May 1412 Aug
1412 15 11414 1412 14,4 16
144 1578 15
1512 7.600
Preferred
100
2 Apr 5 16 May 13
8
838 17
4 Dec 31
8
Jan
712 814
8% 878
814
9
814 812 17,000 Chicago Rock Isl & Pacific_ 100
2 Apr 5
914May 5
112 May
1638 Jan
117 12
1118 114 1112 12
114 1212 124 13
12
12
3,700
7% preferred
100
31. Apr 10 1314May 5
1058 111.1
314
Dec
10
2712
Jan
108 1012 11
10
1114
1012 1158 1012 11
4,300
6% preferred
100
278* April
11586lay
*15
40
2 May 2412 Jan
*15
5912 *15
3038 .15
50
*16
50
•16
50
Colorado & Southern_ _ _100 • 1514 Feb 24 25 May 18
3
412 June 2912 Sept
1634 734
7
734
734 734 • 712 8,4
738
6% 7
7
7,400 Consol RR of Cuba pref 100
114 Feb 24
814May 17
62
6514 6012 62
1
Dec 1112 Jan
6112 63
6234 6312 633 6734 65
6678 37,100 Delaware & Hudson
100
3758
Feb
25
673
2818 2934 27% 2812 28
4May 18
32 July 9212 Bent
2912 2914 30% 3038 3212 3012 3212 142.400 Delaware Lack & Western_ 50 1714
Feb 25 3212May 18
812
558 53
June
457 Sept
5% 514 15
5
5
6
6
612
6
6
2:9
1200
500 Deny & Rio Gr West pref...100
2 Feb 28
61261ay 18
112 May
912 98
918 938 liglz 958
9
Jan
912 978
958 10is
912 934
Erie
100
334 Ayr 4
1034 1112 10
18
2
May
1134 Sept
11
1078 12
1012 11
1118 1218 1134 1178 5,500
First preferred
412 Apr 4 1218May 18
100
258 May
71 .814
734 734
712 712
157g Aug
7'! 733
9
9
.9
938 1,200
Second preferred
212
100
Apr
4
9
May
• 18
18
2 May 1012 Aug
1914 18
1938 1812 2014 2018 2112 2018 2134 2018 2133 115,200 Great Northern pref
100
438 Apr 5 2134May 18
512 May 25
*5
6
•5
5
Jan
6
6
612 712
58 P5
7
7
1,500 Gulf Mobile & Northern 100
13,, Mar 31
712May 18
1133 1212 1218 1214
2 May
10 Sept
12
13
1312 14
14
1534 15
1534 3,900
Preferred
100
Nf
212
ar
31
1534May 18
1478 1478 1434 144 1314 13,i .14
212 Dec 1512 Sept
1438 1312 14
1378 137
1,200
Hudson
&
Manhattan_ _ _ .100 1112 Feb 27 1618May 3
1938 2033 1838 194 1918 2038 20% 2178 2078 2338 2238 2438 95,100
8 May 304 Jan
Illinois Central
100
812 Apr 5 2438May 19
*10
4% June 247 Sept
1134 1078 1112 1038 1038 1138 1138 *1012 1212 *12
12
120
RR Sec Ws series A__ 1000
412 Apr 18 a12 May 19
64 614
4 May 1412 Jan
614 612
614
1
6% 612
614 61?
618 634 11,700 Interboro Rapid Tran •t 0-100
418 Feb 27
714 Mar 25
13
214 June 1438 Mar
1338 1314 1314 1314 1319 1358 1438 1333 1512 1412 1714 15,100 Kansas City Southern
100
612
Feb
27
1714May
19
*18
1938 183.4 19
214 June 1514 Sept
1938 1938 1934 20 a20
23
215* 26
4,300
Preferred
100 212 Mar 31 26 May 10
1614 1718
5 June 2514 Sept
1434 163
1538 1634 1612 1734 1718 187
1714 1812 35,200 Lehigh Valley
50
838 Feb 24 1872May 18 . 5 June 2914 Sept
4234 45
4234 4312 4214 4412 44
4538 454 478 45% 48
18,100
Louisville
&
Nash
ville...
_100
Jan
48 May 19
•15
17
15
17
7', May 3814 Sept'
*13
17
15
17
-17
17
19
194
210 Manhattan Ry 7% guar_ _100 2114
12 Nar
3 1934May 10
f 16
1012 1034 1012 1114 1034 11
9 Sept 465 Mat
1058 117
11
1212 1234 1334 33.300 Mardi Ry Co mod 6% guar.100
6 Jan 3 1334May 19
4 June 2034 Mar
27
3
*3
7
378 *318 37
37
*314 .3
*314 37g
3%
300 Market,St Sty prior pref .100
178 Mar 3
37* Slay19
218 Dec
13
38
12
9 Jan
12
12
"8
*38
12
"8
12
*38
12 1,200 Minneapolis & St Louts_ ..100
18 Jan 23
4 Apr 27
*I
2
*I
;82 .1a
1)e
2
112
11
*I% 2
*113 2
454 Aug
178
I%
300 Minn St Paul it SS Marie_ 100
4 Mar 20
178May 2
II
1112 10,4 1114
1038 1158
1112 1214
Sept
1134 1214
1238 50,000 Mo-K an-Texas Itft __.No pa
115*
53
Jan 3 1238Nlay 10
2234 2414 2238 2318 23
114
May
13
24
2378 2412 2314 2538 23
Sept
25
15,900
Preferred series A
100 1112 Jan 3 2538May 18
314 June 24 Sept
314 312
33
37
314 33*
314 31
312 31
358
33
4
Missouri
9.500
Pacific
14
Apr
43
100
1
Jan
434 5
11
112 May 11
412 434
45
Jan
45, 434
53
55 22.000
5
458 6
Cony preferred
100
15 Apr 1
7 Jan 10
212 May 26
.
04
•14
Jan
38
13
*14
38
33
38
38
12
12 1.700 Nat Rye of Mexico 2d pref.100
la Jan 3
1251a5' 18
28
2914 2678 28
le Feb
78 Sept
2738 2818 2814 293
2712 2933 28
2933
New
177:10
500
York
0
Central
100
Feb
25
14
203451ay 17
714 714
834
June
365
8
Jan
718 714
714 7%
718
71
4,100
712
N Y Chic & St Louis Co...100 .2's Jan 25
7,4 712
712May 8
112 May
8
8%
7
912
9
934 Sept
912
9
10
11
912
938 93
11
1134 10,400
Preferred series A
25,, Apr 11
100
1134May 19
•111 115 *110 115 *110 114
2 June 155* Jan
115 117
112 112
115 11814
180 N Y St Harlem
'
5( 100 Mar 31 120 Jan 28
8214
1912 ' 21
May
193 2078 2014 2178 2158 223
12712
Aug
2138 23
2214 2312 116.70 N Y N 11 & Hartford
100 114 Feb 27 2312May 19
6 May 3138 Jan
34
36
353 36
411
3612 3912 40
4018 4112 40% 4134 5,800
Cony preferred
100 18 Apr 4 4134May 19
1178 July 7834 Jan
12
1318
1218 13
1214 1234 1212 13
123
1312
8
1212
N
13%
Y
18.900
Ontario
73 Jan 4 1312May 18
& Western._ _100
.44
52
32
12
33* July
38
153 Sept
4
38
34
33
78
I
8
2,900 N Y Hallways pref
No pa
1 May 19,
4 Mar 15
18 Dec
112 2
1
Feb
138
I%
112 I%
I%
138
178 2
2,
214 3.800 Norfolk Southern
4 Apr 4
100
214May 19
1441 4 146
14
Dec
3114 Sept
143 144
14512 14512 14512 14633 146 14712 14734 150
5,300 Norfolk & Western
100 11112 Nfar 2 150 May 19
57 June 135 Sept
*7514 78. 78
78
77
78
78
78 .76
78
78
78
Preferred
80
100
74
May
9
8312
Jan 5
65 July 8112 Dec
2012 2234 21
2212 2118 228 2214 231
2218 234 2134 2314 75,600 Northern Pacific
100
938 Apr 5 23126lay 17
512 May 2533 Sept
•112 414
*112 414 .138 414 *212 41
*212 414 • 414 414
10 Pacific Coast
100
1 Jan 25
414Nfay 19
1 Mar . 312 Sept
2418 2434 23
243 2312 2414 2418 253
2378 2512 2418 25 109,70 Pennsylvania
50
133
4 Jan 3 2512May 18
612
June 2338 Jan
• 4 , 414 *3
4
*3
4
414 5
434 5
5
5
2.000 Peoria & Eastern
100
3* Feb 17
5 May 17
78 May
514 Sent
•I2
1314 *1134 12
117 1212 1212 1212 1234 134 13
15
2,300 Pere Marquette
100
378 Mar 3 15 May 19
13
4
June 18 Aug
184 16'2 *1512 20
1512 17
*17
1818 1712 18 • 20
Prior preferred
620
2014
100
6
Jab
3
2014,May 19
312June 26 Aug
1314 1334 .12
14
14
14
1414 1612 17
Preferred
1712 1,060
141 14
100
412 Feb 28 171 2Nlay 19
•124 1634 •1212 1634 *1413 1634 01312 1634 164 1634 *15
212 June 24 Aug
• 100 Pittsburgh & West Virginia 100
1634
612 Apr 19 1734May 3
6 Dec 214 Aug
3934 41
404 .41
39
40
3912 41
40
4212 4012 43
5,500 Reading
50
2312 Apr 5 43 .May 1!)
912 June 6214 Sept
*28
30
2912 2912 *28
31
*2912 31
31
30
1st preferred
30
30
700
50 25 Apr 25 31 Jan 14
15 July 33
281 1 281 1 28
Jan
2914 .27
29
2934 29,4 30
2d preferred
30
3012 3112 1,500
6
2312 Mar 31 31126lay 11)
15 May 38 Sept
214 214
21 1 214
218 21 1
218 212
134 2
112 2
7:600 St Louis-San Francisco_ _100
78 Jan 30
tl2Nlay 17
278 278
238 278
278 278
18t preferred
27
3
212 3
218 234 5,900
100
1
Apr
17
3
May
8
1%l y
*7
734 *612 734 .612 734 *7
May
9
6:
35 j
Ja
811
,
St Louis Southwestern... 100
734 *712 11
*712 11
514 Mar 15
6 May 3
3 May
_ __
13 8 Sept
*8
Preferred
100
8% Dec 2012 Jan
5
5
12
12
34
33
12
Seaboard Air Line
38
12.
58 • 34
%
No pa
3
.1May
I
18
IS Jan
1 Sept
3
34
*31
Preferred
1
11 1
78 4
1
Di
1
7s
1
Jan5
100
Mar
23
6
1 14N1ay 17
22
Sept
Jan
233* 2034 2178 2112' 23
22% 24
2238 24% 22144 21114
(
0 Southern Pacific Co
V0
4 11,0
100 11 ,
1 Feb 25 2414Nlay 19
14. 151 4
15 Jan
June 374
614 Jun
14
1434
1412 1518 14% 1578 154 1614
Southern RallwaY
1512
0
1618
78,
100
418 61ar 2 16145iay 18
18
212
Nlay
1938 1778 1834
1812
Sept
19
1912 1912 21
Preferred
20
22
26,200
57 Jan 3 22 May 18
205* 22
100
3 July 2334 Sept
*26
30 .26
30
*26
30
*26 • 2978 *26
Texas & Pacific
30
*26
30
100 15 Apr 24 32 May 3
13 Nov
*6
614
35 Sept
6
6
6
6
•512 6
512 57
100
418 Feb 25
58 612 1,400 Third Avenue
6% Feb 3
37 May
•2
3
14 Mar
112
158 *14 2
•134 214 •134 214
500 Twin City Rapid Trans No pa
2
218
112 Jan 10
218May 19
118 Dec
.84 914
88o 878
412 Juno
838 83*
97
97
912 912
Preferred
9
912
57
120
100
Apr 19
978Nlay 19
Jan
86
7
89
June
2412
84758 8634 8438 8812 8814 90% 8838 91
8812 91
46,800 Union Pacific
100 6114 Apr 5 91 May IS
•66
69
275* July 9412 Fob
68
68
*67
6712 67
68
*6612
Preferred
68
67
67
800
100
56
Apr
6
69
May 6
Aug
212 212
40 May
713
8
21, 23
212 212
23
244
2% 234
Wabash
•
23*
238 2.200
100
14 Jan 4
234May II
78 June
414 All %
3
3
3
3
3
318
3% 3,4
Preferred A
234 314
234 3 . 3,300
1 18 Apr
1001
338May 6
812 914
1 June
6 :an
84. 8%
8% 914
938 1034
1012 Ill! 105* 1138 58,300 Western Nlaryland
27
Feb
100
111
4
2May
97
91
181
112 May
913
113* SeP1
914
934 10
1014 144 1318 14% 14
1412 12,800
2d preferred
538 Jan 12 1458May 181
1001
2 may
23
1114 Sept
212
212 212
212 234
3
3
3
334
314
312 2,600 Western Pacific
I Apr 22
1001
334May 18
12 June
414
414 414
434 Aug
43*
414 41?
45, 512
538 578
534 612 5,200
Preferred
Mar
2
1%
612May 19
lOOl
54 May
8% Aug
Industria
Nflacellan
l
&
eous
27
27
025
275 *26
27
27
27
2512 2512 2612 27
500 Abraham & Straus
No par 1318 Feb 23 27126fay 4
•80,1 90
10 it1110 24% Aug
*80% 81
081
87
*8012 8612 *804 8633 80,2 8012
Preferred
10
100 80 Mar 3 801261ay 19
738 734
68 July 98 Mar
74 712
738 778
734 833
75
8,4
7% 773 40,700 Adams Express
No par
3 Feb 28
814May 17
94 Sept
15,, may
*62
6212 62
6212 6312 6312 64
6412 6438 65
62
62
Preferred
540
100 39 April
16
161 1
22 June 73,i4 lZ1
157 1714
.
11
,
16.4 1718 1612 171 1
1614 17
154 1633 11,900 Adams Mills
No par, 8 A Pr 7
1g
88 912
12 June 30
838. 9
814 878
818 9
8% 88
Address
8%
83*
3,200
Multigr Corp._No PO?J
518 Apr 15 1018 Jan 3
84 Dec
4
14 Sept
4
38 4
4
4
414 43,
438 438 *4
411 1.200 Advance Rumely
No
par
4
Feb
13
21
438NI
ay
17
114
1118 II% 11
Aug
4%
June
1118
11.
1114 115,, x11
113
1112 11
1114 10,900 Affiliated Products Inc_No par
734 Mar 1
1134MaY 1
72q 731* 7018 7238 7114 731, 727 7434 7112 737
414 May
72
7312 16,400 Air Reduction Inc
No par 4712 Feb 25 7434May 17
11214 214 *218 212 *218 212
30817,,
8, jr,Julinly: 618361:423
212 212
212 3
234 3
1,600 Air Way Elec Appliance No par
12 Feb 28
3 May 18
1438 15
14
1458 141 1 1433 1414 1434
14
148 137 141 4 48,900 Alaska Juneau Gold Min__ _ 10 1118 Jan 14
1838 Apr 24
73
16
3
35'8
June
2 SJeap1t,
1
3
3
318
3
3
a
3
*3
512 '3
312
600 A P W Paper Co
No par
1 Jan 5
312May 9
78 Dec
2
218
2
218
2
24
2
218
2
212
24 238 45.000 Alleghany Corp
No par
78 Apr 4
2126lay 18
38 May
3
4
%
S
Ne19817
312 35,
312 3,2
4
4
378 378
4
54
414 433 5.000
Pref A with $30 wart...100I
1 Apr 5
Sept
546lay 18
31. 312 *3
3%
312 312
43
312 312
458
4,4
4
Pref A with $40 warr___100
1,000
434May 19
11/4 Apr 17
8 Se11:,
53 June
•311
312
3
3
313 318 •3
312
312 4
4
4
900
Pref A vrithout wart....,1001
114 Mar 30
4 May 18
8 Sem
•Bld and asked prices, no sales on this day, a eintInnal sale
Sold 15 days. z Ex-dividend. v Ex-rights.
13.
Icosimev
12;200
71,4111
New York Stock Record-Continued-Page 2
3489
IN THIS LIST, SEE SECOND PAGE PRECEDING.
DURING THE WEEK OF STOCKS NOT RECORDED
_
PER SHARE
PER SHARE
Range fo Prerious•
STOCKS
Range Sind Jan 1.
Sates
CENT.
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER
Year 1932.
NEW YORK STOCK
for
On basis of 100-share lots.
EXCHANGE.
the
Friday
Thursday
Wednesday
Highest.
Tuesday
Lowest.
Highest.
Monday
Lowest.
Saturday
Week.
May 19.
May 18.
May 17.
May 16.
May 15.
May 13.
share $ per share $ per share $ per share
per
$
Par
(Con.)
Miscell.
&
Indus.
Shares.
share
$ per
5 May 15 Sept
5 Mar 30 1614May 13
$sec share $ per share $ per share St per dare $ Per share
540 Allegheny Steel Co_ __No par
1512 16
4212 June 8814 Sept
1512 1538 1512 1512 1512 • 1434 16
14
1614
15
Allied Chemical & Dye_No par 7034 Feb 27 10412May 18
1
9612 Apr 120 Dec
4 10178 10012 10412 101 10334 117.900
/
4 971
1
Feb
a
1217
21
Apr
115
9514 9734 9414 968 9558 98/
100
Preferred
900
119 119
118 11814 119 119
4 June 153 Sept
118 118 *11713 118
118. 118
6 Feb 27 r6 May 11
No par
1518 1334 1412 26,700 Aills-Chalmers Mfg_
4 1538 14
1
10 Jan
4 July
1
4/
1378 1414 1334 158 14/
1414 15
534 Jan 10 1512May 18
par
1513 1514 1512 4,700 Alpha Portland Cement No par
1358 1412 14
4 Sept
1
2/
14 Apr
13
4
18
May
21
1012 1214 12
Feb
es
*1014 11
_No
Co_
7.600 Amalgam Leather
312 4
314 314
4 314
/
31
314 312
Mar
38 4
3
10
3
Dec
18
4
May
•
21
23
Feb
5
100
7% preferred
1912 1913 1,000
2014 2012 21
20
20
Jan 2234 Sept
20
12
3718May 19
2
Mar
19 .1213 20
19
'184
par
No
Corp
Amerada
38,700
Sept
1512
June
312
3412 3312 36,4 3514 3613 3418 3634 3538 3718
17
1
8May
177
Mar
714
3434 3512 33
par
7,400 Amer Agile Chem (Del) No
1614 17
4 1634 1714
1
17/
5 May 2212 Sept
8 1612 1712 1634 1734 17
17,
17
8 Mar 2 21 May 19
10
21,400 American Bank Note
21
28 June 47 Feb
1614 1614 1834 1818 1978 19
16
16
.1612 1658 16
50 34 Apr 7 4238May 19
Preferred.870
4112 4114 42%
41
41
41
41
41
14 Apr • 278 Aug
41
20
41
Apr
4
1
/
5
41
30
Jan
41
1
538 15,600 American Beet Sugar__No par
514
4 58
/
51
934 Aug
Apr
1
512 578
534
5
434 5
4 5
1
4/
234 Jan 5 4288May 16
100
7% preferred
3518 3,900
4 31
/
371
35
June 1778 Sept
612
4238 3714 42
11
33
3
a3018 33
24125lay
Mar
25
30
4
/
91
par
Fdy_No
&
Shoe
3,400 Am Brake
2312
2312
4
233
2312
90
40
Feb
July
24
23
10
2258
4
,
23
May
21
90
64
.24
23
100 60 Mar 28
Preferred
90
*85
90
*85
90
4 Mar
1
*85
2958 June 73/
90
*85
90
*85
25 4913 Feb 25 85 Slay 18
90
.85
8112 834 119,600 American Can
Mar
June
129
4 8112 8312 8114 85
1
9312
28
Jan
128%
27
8114 8234 7912 8114 793 81/
Fen
112
10J
Preferred
318 June 17 Sept
125 125 *12134 12834 *12314 12834 .123 1283 . 100 American Cat & Fdy...._No par
•121 125 *122 125
4 Jan 23 1778May 18
/
61
4 1634 17q 13,600
1
1012 17/
15 Dec 50 Aug
1558 17
1514 143 1514
1514 1534 15
100 15 Feb 28 35 May 18
Preferred
1.400
*3312 34
3413 35
3314 3314 3318 3318 3318 343
.3314 34
714 Sept
4 Apr
/
11
5 May 17
158 Mar 31
No par
434 1.100 American Chain
434 434 *4
Jan
434 5
7 June 26
418 438
4
4
4
13 May 17
4
312 Mar 1
100
7% preferred..
200
14
1418 *10
*11
13. 13
18 June 38 Nov
20
4May 1
*9
443
*1012 20
12
2
12
Mar
34
par
No
Chicle
American
4212 4358 1,400
4338 44
Sept
4
/
81
July
2
IS
8Nlay
4312 4312 4313 4312 4312 44
43
44
44
24
Feb
2
10
418 414 1.600 Amer Colony pe Co
4 414
/
41
414
11 May 27 Sept
458 43
4
418
15
4
334 4
48,300 Am Ccinnal Alcohol corp..20 13 Feb 27 24125lay 19
2114 22
5
34 Dec
Jan
4 23
/
8 211
4 23,
1
22/
24
215 2212 2134 2412 23
312Nlay
1 Jan 5
3,200 Amer Encaustic Tiling_No par
313
318
318
3
314
3
3
234 Apr 1534 Sept
3
6
Jan
3
3
314
1038
I
318
4 Apr
1
3/
3,000 Amer European Sec's__No par
8
73
15 Sept
712 712. *7
2 May
734
37 Feb 27 12 May 11
718 758
733 713
712
7
par
Power___No
Fora
&
Amer
83,900
5 Slay 3812 Jan
4 1014 1078 1012 1112 1034 1134 1014 11% 1014 1118 8,400
/
1012 111
714 Apr 4 24 Slay 13
No par
Preferred
2212 2012 22
4 21
/
234 Slay2114 Aug
2258 2238 231
2278 21
21
24
23
No par
458 Apr 4 1612May 12
2d preferred
1412 5,500
Jan
4 1414 1514 143 1434 13
1
334 June 33
1412 14/
11
4 15
1
13/
Slay
1458 16
20
4
Apr
614
par
No
.
.
.
_
preferred_
16
4 1,400
/
*1613 171
612 Aug
3 May
17
1812 183 1912 17 • 17
Mey
18
17
*17
19
10
5
*15
4 Jan
/
41
........
4 1,900 Amer Hawaiian E3 S_.
1
914 9/
4 Sept
/
61
10 ' 912 10
1 May
9
8
8
758 758
.714 712
Mar 2 1178May 19
212
par
Leather_No
&
Hide
Ames
19,000
8
117
1
914 1058 11
84 9 4
•
478 May 27 Sept
818 812
714 8
714 712
100 1312 Feb 14 391 2May 19
Preferred
3714 3913 10,400
3312 3512 3512 38
25 June 5158 Mar
3234 331
321
31
Apr 20
31
31
6,200 Amer Home Products_No par 2912Mar 1 40
39
3% Dec 2158 Mar
3758 3814 37,2 38
38
4 377
/
912May 19
24
3758 3812 z3753 3734 371
Feb
4
33
par
No
Ice
American
4 912 24,900
1
8/
4
/
812 91
67
35 Dec 68 Mar
8 • 8113
718 77
658 6o
714
100 25 Feb 15 40 May 18
non-cum prof
6%
900
3912
3912
40
38
38
212June 12 Sept
37
367 *3534 368
*35
*3412 37
414 Feb 27 1034Slay 1
8 42,600 Amer Internet Corp.._No par
9,
9
4 10,4
1
9/
34 Aug
4 1012
1
9/
14 Jan
34May 12
4 10'4
/
91
4 958
1
8/
912 10
14 Apr 21
1,600 Am L France& Foamite No par
4
3
4
3
414 Aug
kl
8
5
58
1 July
*It
19
8
5
13
8
5
3125tay
Istt
34
114 Jan 3
Ai
100
Preferred
140
313 312
314 314
4 Aug
/
151
313 318
353 July
3
3
17
*244 3
*213 3
4May
163
3
Jan
578
par
Locomotive_No
American
1534 1578 10,200
1718 Dec 49 Sept
1478 1478 1478 1634 1558 1614
1413 1412 14,8 15
100 1734 Jan 3 3934May 17
Preferred
2,000
38
38
4
Jan
393
2214
39
•
4
393
June
3912
712
3912
8 *38
3958 39,2 3958 39,
834 Feb 27 1738May 11
163s 9.500 Amer Mach & Fdry Co.No par
1658 1678 15
1638 16, 17
16
1638 16
1612 1714
334 Mar
I June
4 May 15
27
Jan
1
par
Metals-No
&
Mach
Amer
2,300
313 334
312 312
278 4
.313 312
4
1
914 Aug
318
338 3/
113 June
358
313 Feb 21 123451a9 19
1234 43.400 Amer Metal Co Ltd___No par
613 June 32 Aug
1138 114 1058 1138 • 1034 1134 1138 1214 1112 1258 12
4 Jan 4 30 Slay 19
1
5/
100
6% cony preferred
1,517
50
49
49
43
Jan
*4212 43
4014 4012 4213 43
14 July 33
41
6
Feb
41
30
20
Jan
17
par
1ne____No
Co
News
90 Amer
22
*2158 23
2138 2138 22
3 June 1714 Sept
2218 *2138 23
22
*2114 22
914 Jan 11
4 Feb 27
818 812 55,000 Amer Power & Light_No par
4
1
8/
8
Jan
828 9.a
4 June 58
/
151
818 878
818 858
5 2614May 17
838 9
Apr
4
1
/
9
par
No
preferred
$6
7,600
2318
4
/
211
25
10 July 493 Jan
4 2414 2412 2434 2614 24
1
4 2458 24/
1
24/
24
9 Apr 1 2234May 17
No par
15 preferred
8 6,300
203
20
22
2018
22d4
21
Sept
1214
Jun
318
20
4
1
/
20
4
1
/
19
17
2114
1133May
2158
2012
458 Feb 27
Stand Sony No par
1138 1018 1133 1038 11 162,700 Am Rod &Rolling
3 Stay 1812 Sept
4 '934 1014 10
/
934 101
934 1018
534 Mar 2 1612May 17
Mill
2
4 1614 1514 1613 72,400 American
/
1358 June 22914 Mar
4 1518 1458 1538 1458 1512 1514 1612 151
/
141
American Safety Razor No par 2018 Apr 6 2833May 19
3,300
8
283
28
2814
8
8 June
273
4
,
334 Sept
27
27
2612
27
4
1
2714 27/
4 28
1
27/
16
20
May
3
Mar
8
7
par
e_No
t
v
Seating
American
1,400
3
*212
24 3
78 Sept
24 3
18 Apr
3
23
212 *218 23
*2
I May 17
18 Apr 8
1
78 16,800 Amer Ship & Comm___No par
34
34
7,
12
1
34
12
12
Jan
2518
12
12
June
10
19
170 Amer Shtpbuilding Co.No par Ills Mar 3 1818May I
1818
18
18
18 •16
18
18
18
21
4 May 2714 Sept
/
51
16 . 1614 *18
8May
317
25
Feb
103
par
&.Refg_No
Smelting
Amer
Jan
85
June
22
2713 29,8 283 2958 2715 288 2712 2958 56,000
2712 2812 2713 28
18
6712May
10
100 31 Jan
Preferred
6712 1,100
6634 6712 *65
6612 6634 6612 67 .6634 08
15 July 55 Feb
*6612 67
26 preferred 6% cum_ 100 2012 Jan 2 55 May 17
1,500
5375 54
54
54
55
3612 Aug
June
2134
5114 5134 52
53
12
51
5134. 52 .
4514May
3212
10
Jan
25
1,000 American Snuff
45
4414 442 45
Jan 106 Sept
4412 4434 4412 40
90
.4458 45 .4334 443
100 10218 Jan 9 106 Feb 23
20
Preferred
,2
1518 Sept
3 May
104 104 *104 10712 *104 10712 *104 10712 10412 10412 *105 107
453 Feb 28 I412May 18
19,100 Amer SteelFoundries. _No par
4 1412 1313 14
/
131
80 Feb
July
4 1278 1314
1
12/
1234 12
34
5
1258 1314 12
May
28
70
100 ' 3758 Mar
Preferred
70
70
*69
69
69
69
4 Mar
363
*65
66
66
Slay
*66
70
66
66
20
No par 30 Feb 27 4478May 12
4438 3,000 Amerman Stores
4258 43
4312 4312 4378 4414 4312 1434 44
4212 43
13 June 3914 Jan
100 2112 Jan 19 58 May 16
5418 23.100 Amer Sugar Refining
53
56
Aug
5558 5714 54
90
May
5214 5212 52
54
5434 58
45
100 80 Jan 19 103 May 18
Preferred
700
4 10234 103 103 .101 105
1
102/
101 101
102 102
.10114 102
234 Apr 1014 Aug
6 Jan 13 13 May 17
par
Tobacco_No
Am
.
12
Sumatra
15,300
1112
1212
1112
1138 11
11
1158
6934 July 13738 Feb
1158 1158 1134 13
1041 8612 Apr 18 11278May 17
Amer Telep & Teleg
10478 10734 10412 10614 10412 10818 10814 11278 10812 11134 10912 111% 255,200
4 June 8634 Mar
/
401
25 49 Feb 23 81 May 1
78131 7,200 American Tobacco
8038 78
3 7858 7958 78
773
4 78,
1
76/
7852 7858 77
44 June 8934 Mar
8312May 1
25
Feb
4
503
25
13_
class
Common
40,400
80
8181
7912 8238 7958 8338
11813 Oct
8012 8118 7913 80
4 81
1
79/
95'*June
Jan14
117
1
4Mar
100 1023
Preferred
300
Jan
4 110 110 .110 112 *110 112
/
•10812 10912 10834 10834 109/
4 1091
1
4 June 25
433 Apr 10 1914May 13
16
1,700 Am Type Founders____No par
178 1512 1513 *14
Jan
17
70
1914
1634 17
15l 17
17
July
1012
12
4May
323
6
Apr
10
100
Preferred
780
2518 2812 2634 264
Mar
3412
29
4 3134 26
1
4 2713 273
1
30/
May
2858 28/
11
17
May
4 Apr 7 27
1
10/
2318 2658 2312 2514 84,000 Am Water Wks & Elec_No par
27
24
2218 2318 2213 2534 25
23
11 May 31 Mar
17
gMay
227
4
Apr
4
/
91
ctfs_No.par
tr
vot
Common
4 2058 22% 20% 2258 67.400
1
Jan
1812 1914
1958
19
1813 214 2114 22/
28 June 75
Nojpar 35 Mar 24 67 May 17
let preferred
6413 6412 1,600
67
65
65
65
64
64
65
654 6612 67
158 Slay 10 Sept
312 Mar 2 1238May 15
No par
1112 1218 1034 1134 10% 1118 42,500 American Woolen
4 Sept
1
11
1158 12"
1158 1078 12:18
1512 Jan 39/
13
2May
461
16
Feb
2253
100
Preferred
29,800
4118 43
45% 4212 45
44
214 Aug
4313 4612 43
4312 443
451
14 May
4May 5
1
1/
33 Feb 8
134 1,800 Am Writing Paper ctfs_No par
114
138
114
114
8 Aug
118
138 *118
114
.113
1%
118
2 July
6 May 5
34 Feb 17
4
1
312 4/
20
Preferred certificates No par
*412 5
4 Sept
/
61
Stay
1'
*334 534 *413 512 •418 512 *413 5
19
May
7
28
Feb
214
14,400 Amer Zinc Lead & Smelt____1
7
612
634
6
57
6
Aug
35
512
June
8
57
10
558
638 558
A%
25 20 Feb 21 40 May 11
Preferred
38
200
*36
36
36
40
43
*3414 45
3934 *36
.35
*35
3 June 1958 Sept
20
Apr
1518
28
Feb
5
50
Mining
Copper
Anaconda
1258 1314 141,900
Sept
15
1234 1318 1214 13
Apr
1258 121
3
4 1238 13
/
18
12 4 1358
1218May
418 Jan 6
1,900 Anaconda Wire & CableNo par
h2'8
12
4 1218
/
121
1712 Mar
1018 1014 1034 1138 1138 1112 12
9
514 May
8 Jan 20 2312May 15
No par
19/
18
2314 2158 2318 1912 2212 2012 2158 53,000 Anchor Cap
4 18
1
40 May 75 Sept
2313 21
17
60
$8.50 cony preferred.No par 6212 Jan 11 80 May 24
_ *80
80
13
80
9 Sept
80
May
80
76
76
*76
78
78
78
612 Apr
258 Feb 7
Andes Copper Sibling_ _No par
-7
*5
7
*5
7
*5
7
7
*5
*5
7 Apr 1512 Sept
*5
7
934 Mar 3 2078May 18
4 z1912 193z 4,900 Archer Daniels Midld_No par
/
Oct
Apr
10014
*I9
1913 1914 1938 1913 1912 1913 1933 1912 201
85
18
Mar
100
23
Feb
100 95
7% preferred .
*95 101
*95 101
*95 101
.95 101
.95 101
*95 101
24 May 61 Aug
41 Jan 3 7314May 19
pref_100
(Del)
Co
&
Armour
2,900
4
/
31
7
72
7312
72
*72
72
Sept
73
73
72
23
7012
71
70
38 June
658May 17
118 Feb 28
512 6 221,500 Armour of Illinois class A__25
534 658
434
11318. 658
452 538
2 Sept
43R
51s 614
38 June
4 May 17
% Feb 20
25
Class B
332 338 137,500
4
1
312 3/
358 4
4
1
318 358
23
218 2/
314
3',Slay1578 Aug
27 3414May 15
Feb
7
100
Preferred
3312
17,100
3212
4
333
32
3213 34
358 Aug
34
341 1 32
May
2812 3014 29
I
3
8May
35
19
Jan
4
/
11
par
3
312 2,200 Arnold Constable Corp_No
27
278
318
3
53 Sept
3. 3
3
3
1% Dec
3% 318
47853iw 19
2 Mar 27
No par
4
1
790 Artloom Corp
418 4/
4
4
312 358
313 31
*312 35
4
4
3 Aug
58 June
5
313May
17
Apr
34
par
No
Ind
Apparel
212
278
2,300
4 3
/
Associated
-21
4
1
244 2/
212 244
2% 2%
Sept
258 23
11
Slay
3
17
4May
131
312
20
Feb
_I
12
1212 23,900 Associated Dry Goods.
131
12% 1314 12
1158 1258 12 '13
1034 12
1612 Aug
612 July
634 Mar 24 16 Feb 14
25
10 Aasoeiated 011
*14
15
15
*143 153
153 *14
*14
153
Dec1214 Aug
1313 131 *14
4%
5
May
15
22
Mar
4i2
par
200 Atl 0 & w 1 SS Lines„No
18
15
.10
15
18
*14
15
*10
15
15
*1314 15
534 Dec 1558 Jan
15 May 16
412 Apr 11
100
Preferred
19
400
15
15 .10
20
*10 . 143
15
1434 15 .15
*11
853'Feb2178 Sept
25 1258 Feb 28 23 May 19
93.300 Atlantic Refining
21 1s 23
203 2114 . 2018 211
21
4 20/
1
19/
20
4 2013 21
1
7 Dec 2512 Feb
17
2014Ma9
14
9 Feb
No par
4 1914 7.900 ALIAS Powder
/
18
1978 191
2014
19
•1734 1814 1714 1814
4 19'a
1
17/
4512 June 7912 Jan
May 10
70
5
Apr
60
100
Preferred
30
71
.70
*70
71
*70 . 72
70
70
70
70
72
37s Aug
•70
1 July
15
312May
27
Feb
112
par
No
600 Atlas Tack Corp
312 312 *412 5
.3
312
314 312 *318 3!
3
3
2834 Slay 151114 Jan
Jan 11
97,000 Auburn Automobile-N0 par 3114 Feb28 5612
4934 5312 5112 5338 5212 5514 4934 5318 4958 52
4812 54
4 Sept
/
11
12 Feb
16
2
8MaY
Feb
27
8
7
par
No
Nichols
Austin
28
234 234 1,600
23
214 213
23
234 2/
278
4
1
*214 212
878 Dec
112 June
513 Feb 27 1212May 2
1058 1158 103 11 116.000 Aviation Corp of Del (The)__5
1118 12
104 1112 1078 1113 11
1114
12 Aug
2 May
9335tay 11
12
Apr
312
par
No
Works
Loco
Baldwin
8
108.500
77
4
83
4
83
8
812
4
/
81
8
841
4
1
8/
814
4 834
1
7/
8 May 3718 Aug
912 Apr 4 32 May .1 1
100
Preferred
3,890
30
3058 2914 2934 29
30
4 2914 31
1
28/
2758 2958 28
62 July 99 Feb
4 Feb 28 8214S2'4\121}'16
/
82
208 Bamberger (L)& Co pret._100 681
4 8214 8138 8138 8158 8138 82
/
821
*81 .
' *82
312 Aug
17
12 Apr
May
2
4
Jan
se
par
No
Barker
Brothers
40
212
8
.17
*2
2
213
2
*114 2
114 -2
7 Sept
173 '
178 ---318 June
634May 19
3 Mar 2
3
634 64,000 Barnacle' Corp
6
618
53
8
6,4
612 612
614
6
6
614
Feb
13
Dec
2
IS
8May
247
8
Jan
314
No par
2473 .2,480 Bayuk Cigars Inc
22181 2358 23% 2478 24
24
2318 2313 2312 2434 23
100 27 Jan 18 72 May 10 _30 Dec59 Jan
Lot preferred
110
70
70
70
70
70
70
70
70
70
70
72
*70
17
"1012
2112May
Jan
Nov4313
2
Mar
7
513
4 2012 1978 201 13,300 Beatrice Creamery
/
2112 191
20
8 21
17% 1978 193 2012 19,
62 Dec95 Jan
100 45 Feb 24 78 May 18
I referred
200
90
78 .80
-- 78
*75
75
- 75
75 '72,2
.70
45% Dec
Slay
2914
12
May
64
5
Jan
45
20
Packing
Co
601
Beech-Nut
1,600
6012 .5912
60 -6012 60
62
61
-62 -6212
62 .
62
834 Sept
258 Jan
718May 16
4 Feb 20
1
3/
4 613 27,900 Belding Ileminway Co No par
/
61
612
6
6 1 7
4
/
53
612 71
534 67
6
5733 June 6253 Dec
Belgian Nat Rvs part pref. _ __ 6214 Apr 7 7518May 11
75
*73
75
*73
74
.7234 77 '731 77
75 .73
•73
* Jan
412May
185
11
14585tay
27
Feb
613
5
133 44,200 Bendix Aviation
13
4 14
/
8 1414 131
13,
1358 1358 1414
1312 1418 13
4 Feb
1
534 June 24/
9 Mar 2 2313May 5
No par
4,700 Best & Co
2214 *2134 2218 2158 2218 218 2158 21 1s 211
4 21
1
2112 22/
2928 Sept
June
714
17
8May
277
2
Mar
1018
par
No
Corp
Steel
Bethlehem
102.000
263
4 2733 2558
/
4 2778 251
1
4 2612 26/
1
25/
8 24,8 26
8 26,
,
25
Jan
1614 July 74
100 2514 Feb 28 6133May 18
7% preferred
13,900
5812 61% 5758 59
5334 5412 5358 5518 5414 5612 563 59
358 June 10 Aug
•312 Feb 28 II May 11
No par
4 1012 1012 5,600 Illaw-Knox Co
/
4 1058 101
,
1014 1012 1012 10
10
101
105 10
Feb
14
June
8
614
1018May
28
Feb
658
par
310 Bloomingdale Brothers_No
1018 *1018 12
10
*1018 15
10
10
.1118 15
Jan
81012 15
49 Dec 61
100 53 Jan 25 65 May 16
____
Preferred
20
•65
- *65
*65
85
65
_---- *65
.65
4 Jan
1
478 June 22/
912Mar 2 27 May 17
11,900 Bohn Aluminum & 13r_No par
25 -2-658 2514 26
3 235 25% 2512 -27
,
8 2314 21
,
Nov
55
24 24
June
31
1
23
May
Feb
64
No par 52
66 .65 66Bon Aml class A
*65
66
*65
68
68
.84
*63
68
1 Aug
•63
1* Stay
' Booth Fisheries
114 Jan
__._ ---- ---- ---- -___ ____ -- ---- -_-- ---- --- --14 Nov
100
let preferred
Mar
434
July
20
25 18 Feb 27 353851ay 13
33- 49,900 Borden Co (The)
8 -554 -343-8 -55- -i41-3 -52
-Ws -ii3-3 i55F8 -34 3-8 -5318 1378May 14,4 Sept
33
28
Feb
133
15
512
8May
10
Corp
Borg
Warner
26,100
4
123
1214
1314
1214
1278 138
1214 1338 1258 13
Sept
14
4
Apr
1214 13
12
17
3May
Apr
25
53
1,400 Botany Cons Mills class A 50
134 2
218
2
112 212 *134 2
218 258 .131 2%
278 June 1134 Mar
812May 18
253 Feb 24
4 S14 40.600 Briggs Slanufacturing_No par
1
7/
812
818
8
8
4
/
772' 728 71
Ve
7'2
714
•
y Ex-rights. e Cash sale.
•Bid and milted prices, no bales on this day. a Optional sale. x Ex-dividend.
ray- FOR SALES
•
3490
ri47- FOR
New York Stock Record-Continued-Page 3
May 20 1933
SALES DURING THE WEEK OF STOC
KS NOT RECORDED IN THIS LIST,
SEE THIRD PAGE PRECEDING.
_
HIGHZAND LOW SALE PRICES-PER SHARE
, NOT PER CENT.
PER SHARE
Sales
PER SHARE
STOCKS
Rance
Since
Jan.
for
1
NEW YORK STOCK
Saturday
Range for Previous
Monday
Tuesday
Wednesday Thursday
On basis of 100-share lois.
Friday
the
May 13.
EXCHANGE.
Year 1932.
May 15.
May 16.
May 17.
May 18.
May 19.
Week.
Lowest.
Highest.
Lowest.
Highest.
$ per share $ per share $ per share $ per share
S per share $ per share Shares. Indus. 5c Miscell
2 1312 .13
. (Con.) Par $ per share $ Per share $ per share
15
.14
15
.14
15
13
13
$ per share
*13 • 15
300 Briggs Ss Stratton
7712 7722 7712 7712 7722 7934 7734 8018 76
No par
714
Feb
28
1312May
.
5
79
4
May 104 Jan
7614 7734 5,300 Brooklyn Union Gas__ _No par
454 4518 44
44
6312 Apr 5 82 Jan 11
45
45
45
45
4514 4514 x45
46 June 8912 Mar
45
600 Brown Shoe Co
734 834
No par 3312 Mar 3 4612N1ay 11
812 9%
8
914
734 878
74 812
23 July 36 Feb
734 812 14,600 Bruns-Balke-Collender_No Par
614 612 . 614 612
Mar
13
4
3
6'8 612
97
8May
618 6%
15
614 8
118 July
812 9
va Sept
21,200 Bucyrus-Erie Co
814 9
10
2 Feb 27
838 9
9
9 May 19
918
9
912
912 1134 1134 1212 22,100
112 June
714 Sept
Preferred
54
65
*55
5
57
234 Feb 23 1212May 19
5614 57 •54
63 . 58
212 May 104 Sept
63
*58
65
140
7%
2
preferre
214
d
100
214 214
2012
24 214
Mar
31
53
214 214
May 18
23
35 June 80 Sept
278
238 24 10,400 Budd (E fa) Mfg
8
No par
8
812 812 .814 9
34 Apr 15
24May 18
9
12 Apr
912 958
98
938 934
318 Sept
280
27
7% preferred
318
100
278 318
3 Mar 16
27
278
94May 17
3
314
312 July
3
314
14
24 314 8,900 Budd Wheel
Jan
2
2
No
2
par
2
1
Feb
2
8
2
314May 11
212 3
58 May
234 24
3
412
3
Bulova
Jan
1,400
Watch
634 714
No par
658 758
%Mar 2
7
3 May 17
.718
7
714
7
7
118 Apr
612 612 3,600 Bullard Co
312 Jan
13
1314
1214 1278 1218 1212 12,4 1314
No par
24
Feb
17
73
4Nlay
11
218 May
125g 133
124 13,8 23,000 Burroughs Add Mach No par
8 Sept
212 212
212 234
618 Feb 14 134May 3
212 234
238 278
278 31g
64 June 1314 Aug
31g
314 4,600 Bush Term.
.278 6
No par
1 Apr 1
5
5
*538 512
334 Jan 5
512 512
3 Dec 2134 Mar
6
6
*5
612
600
Debenture
.812 1512 1012 1012 .812 1434 *10
100
1
Apr
3
914 Jan 11
20
*1012 20
7 Dec 65 Mar
*812 20
100 Bush Term Bldgsgu pref_100
•1
114
1
1
712 Apr 26 234 Jan 5
*118
114
118 114
1214 July 85
114
1 24 *114
Jan
138
800 Butte & Superior Mining...10
114
114
118
114
1 Feb 10
114
114 Apr 21
114
114 14
138
112
12 July
112 2,200 Butte Copper & Zinc-------5
18
14 Sept
35
312
312 334
Mar
31
12
34 4
112 Apr 20
334 412 *334 .4
12 Apr
2 Sept
334 4
6.200 Butterick Co
No. par
114 Apr 10
412May 17
1918 2078 1938 2034 194 2138 207g 2214
57 Sept
138 June
1978 2112 20
2012 33,900 Byers Co (A M)
*48
No par
84 Feb 25 2214Nlay 17
5334 51
51
6118 514 5114 52
7 May 2434 Sept
51
51
52
52
140
Preferred
18
100 3018 Mar 2 54 May 12
1814
18
1834 1734 18,2 13
3514 May 69 Sept
1834 1712 1812 1758 2014 15,800 California Packing_ _ No
34
par
734 Mar 2 2014May 19
34
34
34
34
%
54
414
June 19 Sept
%
%
4
78
4 8.200 Callahan Zino-Lead
478 478
10
44 434
14 Jan 19
434 434
73 Apr 22
434 5
13 June
44 44
118 Sept
434 514 15,600 Calumet Ss Hecla Cons Cop_ 25
6
618 .5
2 Feb 7
6
6
514Nlay 19
6
612 7
714
112
May
8
712
74 Sept
712
Campbel
1,600
l W & C Fdy_ _No par
1172 1232 1172 1438 14
2 Feb 28
8 May 18
1478 1434 1614 1518'1614 15
212 June
914 Aug
1512 75,600 Canada Dry Ginger Ale
29
2912 27
5
712
Feb
25
2914 2672 27
1614May
27
17
2712 2673 274 2612 2634 5,000 Cannon Mills
6 June 15 Sept
No par 14 Feb 2 30 May 12
712 8
.712 734
754 734
734 818
104 June 2334 Sept
8
8
*712 74 1,500 Capital Adminis cl A_ _ _No par
•15
34
*15
412 Feb 24
34
.15
818May 17
34
*15
34 .15
218 Apr
34 .15
34
__ .___
912 Sept
Preferred A
5932 6112 5812 5934 58
50
Jan
•
18
2.558
28 Jan 16
62,4 61
6314 59
19 June 32 Aug
6178 5858 6014 97.700 Case (J I) Co
6518 67% 654 67
100 3012 Feb 27 6314May
65
67
65
67
1634 June 6534 Sept
65
65
65
6712
790
Preferred certificates- __ _100 41 Feb 27 6938NIay 11
15
15% 1418 15
1418 1514 1518 1534 15
3
30 May 75 Jan
1578 1478 154 39,800 Caterpillar Tractor__ _No par
1712 1834 1714 21
512 Mar 2 1578May 11
21
2353 217 2334 21 18 25
438 June 15 Jan
2338 2512 146,200 et/lane-4/ Corp of Am-NO par
.218 212
44 Feb 27 2512May 19
214 214
212 34
4
478
114 June 1258 Sept
434 412
414 412 1.900 Celotex Corp
*3
114 *1
No
par
Mar
12
114
15
114
47
112
8May
158
17
234
4 Aug
14 314
2
212
334 Jan
3,700
Certific
ates
*414 438
No par
se Feb 4
414 414
314N1ay 18
414 57a
512
73
3
58 Dec
612
7
63
4
214 Feb
1,230
7
Preferred
27 .28
100
2618 27
112 Jan 5
738May 17
26,2 27
263.. 2734 25
118 Dec
2612 26
2612 5,000 Central Aguirre Asso_No par
712
Mar
37
*338 4
14
Jan
3
34
3014May 5
34 4
41g 438
732 June 2012 Sept
412 5
*4
434 1.700 Century Ribbon MilLs_No par
.68
78
2 Apr 19
70
70 .68
5 May 18
72
*68
78
238 June
*71
78
86914 78
614 Jan
100
Preferred
1914 2514
100 52 Feb 27 704alay 9
1814 1914 183 207o 194 2034 19
55 Dec 85
20 1914 2078 55,700 Cerro de Pasco Copper_No par . 578 Jan 4
Jan
212 234
234 2%
24 Apt 20
234 234
24 278 • 3
312 June 1512 Sept
34
312 378 15,000 Certain-Teed Products_No par
•1218 1658 13
1 Jan 9
13
1312 1312 14
378May 18
14 -• a1312 153 .15
4 Dec
20
338 Feb
. 800
7% preferred
100
NI
4
27
ar
1534Nlay 18
13
1318 1314 15
434 Dec 185.: Aug
1514 1512 154 17
171g 1712 17
1734 12,900 City Ice & Fuel
No par
4912 4912 4912 52
718 Mar 3 1758NIay 12
5012 5178 5158 5234 53
II
Oct 2812 Feb
5634 x5514 5612 1,610
Preferred
1414 1414 .17
100 45 Apr 7 5634Nlay 18
1612 1714
21
1712 1712 1712 18
•15
4334 Nov 68 Jan
1714 2,400 Checker Cab Mfg Corp
2812 2954 2734 2844 2734'2914 284
5
712 afar 23 2078 Jan 18
3012 2812 304 29
1612
Aug
3018
26,400
3018 Sept
Chesape
ake
Corp
412 412
No par 144 Jan 3 3034May 18
458 434
412 5
.5.8 534
478 June 22034 Sept
512 6
534 578 10,000 Chicago Pneurnat Tool_No par
1014 1014 1012 1114 1034 1112 12
24 afar 31
6 May 18
14
13
1 May
1378 13
1378 4,100
63 Jan
Cony
preferre
1234 1312 13
d
No
par
512
Feb
28 14 May 17
1338 1212 13 '13
13
212 June 1214 Sept
1314 1312 *13
138
660 Chicago Yellow Cab_ _ _No par
1678 17
618 Jan 4 14 May 12
17
1714 18
18
174 1812 1778 1778 174 18
6 Dec 14 Mar
2,101) Chickasha Cotton Oil
.5
514 .518 558
10
5
Mar
2
1812May
5
518
17
5
534 *5
5 June 1212 Sept
512 *478
5
800 Childs Co
1914 2014 19
No par
2 Feb 28
20
534Nlay 5
1938 20
201s 2112 20
2112 1932 2078 255,300 Chrysler COLT
112 June
8 Sept
78
1
1
1
-5
734 Mar 3 21 12May 17
1
1
73
118
1
118
5 June 2134 Sept
1
1
3,100 City Stores
.6
No
17
par
*7
Feb
28
14
17
.9
114May 6
17
9
9
.9
17
14
July
•9
17
24
200
Jan
Clark
Equipm
•l718 1734 18
ent
No par
5 Mar 24
18
9 May 17
*Hi • 1838 1838 191
2018 2014 20 20
314 July
800 Cluett Peabody & Co_ _No par
84 Jan
•90
95 .90
10 Jan 27 204May 18
95
93
93
95
95
*94
10 Apr 22 Mar
95 .92
95
30
Preferre
d
8412 8412 84
100
90 Jan 4 95 May 17
84
83% 86% 8654 88
90 June 96 Feb
8612 8722 86
864 8,100 Coca-Cola Co (Tbe).,..Ne, par 7312
.45
4534 454 4558 .4512 4534 4534 4534 *45
Jan 3 288 Mar 15
6812 Dec 120 Mar
46'o 4612 4718
200
Class A
1512 16
1518 16
par 44 Apr 19 48 Feb 11
1512 16
1534 16
lSlg
4138 July 50 Mar
17.100 Colgate-pairaohve-Fee No
1512
1534
157
8
.72
No
80
par
t
*7314 80,8 •74
7 Mar 30 16 May 11
77
*75
77
*75
1014 Dec 311/ Mar
77
*75
77
6% preferred
812 912
100 49 Apr 3 81 Jan 18
834 10,2 10
11
11
11,
65 June 95 Mar
1118 1238 1114 1238
Collins & Alkman
.50
6378 555
No par
3 Apr 4 1258May 18
63% .60
6378 634 6378 .6414 701 *6212 704 45,100
234 May 104 Mar
100
Non
-voting preferred_ __100 6378May 17 6378Nlay 17
.612 8
74 8
*74 10
*8
10 ....._ 10
55 Jun
*6
10
1,100 Colonial Beacon Oil Co_No par
80 Mar
834 918
818 812
514May 10 12 Jan 4
812 934 10
104
912 107
9 Jan
978 104 17,200 Colorado Fuel & Iron. No par
1212 Oct
z5114 5512 5358 5614 5514 5678 5112 5558
5314 55
' 312 Apr 4 1078May 17
5
@FedFRASER