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Final Edition
ESTABLISHED OVER 100 YEARS
Number 4388
Volume
New
The Financial Situation
Administrative authorities
are
In 2 Sections—Section 2
Price 60 Cents
York, N. Y., Thursday, May 24, 1945
Copy
a
Keynes Contrived International Monetary Scheme
wisely giving serious and
SMITH
HON. FREDERICK C.
By
Congressman from Ohio
apparently on the whole comparatively realistic attention
Member, House Committee on Banking and Currency
to the problems of reconversion to peacetime industrial
PART I
operations. Of course, it is yet rather too soon to be certain
of the degree in which they are prepared to "carry through," Congressman Smith Asserts That the Bretton Woods Proposals Are in Line With Lord
but at any rate a start in some particulars has been made.
Keynes' Currency Debasement Schemes. Offers Evidence That the Old Keynes Inter*
>
autumn and early in the winter before the
Late last
so-
national
Clearing Union and the U. S. Treasury (White) Plans Were Almost Identical
through in Belgium a start of a sort was made
and That the International Monetary Fund Set Up at Bretton Woods, Based on These
in thinking about reconversion.
The "Battle of the Bulge,"
however, drove all such thoughts from the minds of officials. Plans, Will Not Only Permit but May Compel a Debasement of Our Own Currency.
called break
battle, which in retrospect,
One result of this
Says Provisions Establish
appears
been rather poorly understood or appraised, was to
to have
W oods,
a
N ew
Hampshire,
it
was
propaganda lines—and making every effort to be sure that
would for
t
long while in the future have the hardi¬
r
iv
d
e
give much thought to what was to come when the
was over.
Indeed for a time it appeared that even with
hood to
war
Bank
of
still being
sultant
bombarded with every conceivable
■
11
judgments about such things, as if it were not obvious
enough that major battles still had to be fought, and as if
too much complaining by "the lady" did not create rather
than allay doubts. - But it now is clear that there is suffi¬
cient good sense in Washington not to undertake to oblige
}>.>' 1: ■ 1111 (if |j!i
(Continued on page 2312)
■
•
'
With
rect
~
.
gravest danger to our nation
/
vide bonuses
for
to
or
jobs,
new
a
on
the
of tremendous
little,
importance.
the
Also
as¬
to
gore
the
and
Presidency,
tion
"Most
while
pro¬
fessing its love
for private en¬
terprise,
was
_
*
-
Carhs,e Bar*eron
that nevertheless not
much could be expected
it, and the Government must
make plans such as the bill spon¬
sored by Senators Murray and Kilgore for a "national budget." Un¬
of
der
this
the President
and his
planners, would submit at
the
beginning of the year a rePort on just how much employ¬
ment industry was likely to pro¬
vide that
year, just how much the
Government was likely to provide,
or more
roundly summed up. just
what was likely to be the national
mcome
income
the
measure,
how
and
was
much
national
needed to take care of
country.
If
the
prospective
Mr. Morgenthau's
He said:
in
critics,
my
have overstated
judg¬
the dif¬
the two plans,
GENERAL CONTENTS
Page
Financial
2309
Situation..
Regular Features
Washington
From
Ahead
of
News
Moody's Bond Prices and
Items
the
...2309
Yields
2320
Cos..2324
About Banks and Trust
Trading on New
NYSE Odd-Lot
there would
closings, that
York Exchanges.. .2321
Trading..
-State
of agitation
behind these bills just now, had
there not been a change in the
all
been
sorts
2321
tained.
only
2310
Domestic Index.2320
Carloadings
2323
Construction.. .2321
Weekly
.
real
The Republicans
to make a
Review...
Commodity Prices,
General
difference of
opinion between the new Presi¬
dent
and any sizable group in
Congress these days, seems, in
fact, to be the question of how
long OPA controls are to be main¬
The
Trade
of
Weekly Engineering
Presidency.
fight
on
are
Paperboard
Output......2321
2319
Daily Commodity Index.... .2320
Crude Oil Production..... .2322
Lumber Movement.........2323
Weekly Coal and Coke
emphasize this too
This is not a Red
philanthropic
relief
scheme, by which the rich coun¬
tries came to the rescue of the
poor."
Accordingly,
the
true
national
we
may
properly
raise the question
and fittingly
monetary
of
inter¬
with¬
of
either provincially minded
out
suspected
being
as
this
scheme
source
being
or mo¬
by anything other than a
tivated
(•Continued on page 2316)'
Immediate
Tax Changes
Joint Committee
Representing Congress and Treasury
Changes to Help Business Convert to
Minor
Committee
Joint
The
on
Internal Revenue Taxation for Post¬
and experts from Congress and exap-^
—
*
pointed to work out plans for tax changes, for the most part do not;
affect
ultimate
tax
liabilities.
adjustments issued on May 11 its
of representatives
war consisting
perts
the
of
Treasury,
and
"Report No. 1," which covers rec¬
legislative ac¬
the end of the hostilities
ommendations
tion
at
for
Europe.
(North Carolina); Jere
(Tennessee);
John
D.
Dingell (Michigan); Harold Knutson
(Minnesota); Daniel A. Reed
(New York); Roy O. Woodruff
(Michigan); United States Senate
Cooper
Vice-Chair¬
man
(Georgia); David I. Walsh
(Massachusetts); Alben W. Barkley
(Kentucky); Robert M. La
Follette, Jr. (Wisconsin); Arthur
H. Vandenburg (Michigan); Rob¬
ert A. Taft (Ohio).
The Commit¬
F.
—Walter
tee
has
George,
been
holding
sions for months
secret ses¬
passed and, since
Moody's
Weekly
Weekly
Non-Ferrous Metals
'
Market........ .2322
Weekly Electric Output.
2320
They are designed to facilitate re¬
conversion by improving the cash
position
by
and
of business enterprises
relieving smaller busi¬
from
nesses
undue
burdens.
Specifically, } the
recommended
changes are as follows: . :
1. Increase
the
excess-profits
tax
specific exemption from $10,$25,000, effective beginning
000 to
1946.
with the tax year
that
2. Provide
credit of 10% of the
tax
be
taken
spect to tax
post-war
excess-profits
the
currently with
re¬
liabilities of 1944 and
subsequent years.
3. Advance to Jan. 1, 1946, the
maturity date of outstanding post¬
refund bonds.
war
4. Provide for
funds
speed-up- of re¬
resulting from carry-backs
operating losses and unused
excess-profits credits.
deals only with
its studies for
changes for later post-war periods
are to continue.
The text of the
of net
report follows:
putation of deductions for. amor¬
its present report
V-E adjustments,
5.
Provide
funds
for
speed-up of
resulting from the
re¬
recom-
tization of emergency facilities.
Weekly Steel Review
set
'
Industry Statistics
2323
Price Index...2322
Fertilizer Association
the additional
(Continued on page 2318)
quarters in
There is no
Chairman
Editorial
and return of the soldiers
incrensing
reports of
plant
have
some
States.
The members of the
Committee are: House of Repre¬
sentatives—Robert
L. Doughton,
the
and
Cross
Experts Recommend
in
in particular,
is dead.
It is just that such meas¬
ures are not to the fore, and nei¬
ther are their proponents as was
the case a few months ago.
It is
this
writer's opinion, too,
that
with the end of the war in Ger¬
many
to
ferences between
this latter measure,
It is
attitude,
elicit from
public denial of bad faith
part in its projection.
ment,
bill extending social security
providing for health benefits
large part of the population.
not intended to suggest that
to
the United
unsavory
less dormant these
the prevailing
Administra¬
a
act, lest
international
this
bilization Fund.
Wagner-Murray-Kil-
days, is the
cension of Tru¬
man
more or
to be gravely mis¬
seem
cannot
and
proposal for an International Sta¬
about this measure now.
Until
of
scheme
Union Plan and
national income. Little or
being heard and very
if anything is being done
essary
"I
strongly.
an
nothing is
change
a
important re¬
the
of
and
Recommend Only
Peacetime Production.
him
Propose No Important Tax Reductions, Holding Tax Alleviation Would
his
Promote Inflation.
Says Purpose of Recommendations Is to Improve
In
address before the House
Cash Position of Business During Transition, Without Reduction of Tax
of Lords, May 18, 1943, he took
Liability.
Advocates Raising Excess Profits Tax Exemption From
pains to point out the similarities
his
International
Clearing $10,000 to $25,000 to Help Small Business.
the of
recommend what
should be done.
In the final an¬
alysis he could just create the nec¬
etc.
It is
of
needs,
one,
people a
among, our
amount
of
monetary
President was to
tation back to
their homes
national
prospective
transpor¬
ers,
sensed
criticism
<*national income fell short
work¬
war
is
general
had better stop,
and we
permit ourselves to be led into
something which will cause us to
be sorry.
Lord Keynes himself
Washington in recent
industry to provide
the necessary post-war employment instead
of the Government
creating jobs.
This is evidenced in the coming to the fore of pro¬
posals to relieve the tax burden on industry, and at the same time
the almost complete silencing of the proponents of measures to pro¬
Among the outstanding changes to come in
weeks is the current emphasis on permitting
v
understood in
the
we
has
con¬
of
cow
cise contrary.
similarity of his and
J
posals
.
Frederick C. Sm.th
sufficient
CARLISLE BARGERON
the
spect in which the British pro¬
look and listen before we
By
as
cor¬
This scheme is fraught with
From Washington
Ahead of the News
bottle,
to
ques-
people,
the
"There
tion.
,
contemporary
said:
answer
this
to
old
milch
United
the
make
to
the
this
country in particular.
In fact,
the best hope for the lasting
success of the .P.Ian is the pre¬
bottle and its label
Morgenthau's plans in mind,
Lord Keynes in the same speech
Amer¬
have the
an
has
wine into
is
in
world
Mr.
ican people to
own
posals
C States
all the same."
concern
the
to
our
idea that the object of the pro¬
tents; but the new wine is there
the
is of the most
vital
like
looks
whereas
are as
Ex¬
chequer?
propaganda designed to convince us and keep us con¬
vinced of the "toughnesSf of the struggle still to come in the
Far East—as if we were not quite capable of forming our
sort of
what
the
to
purpose.
States Treasury
tried to pour its new
con¬
British
identical
have
the United
-
Eng¬
land and
Looking Ahead
are
D i
of the
opinion and
of
the
for
whatever
foundation
born
are
It may be said with justice that
d
r
a
of
rector
would be taboo.
We
y n
which
climate
which
by
Keynes,
victory in Europe much thought about post-war matters
i
John
Lord
a
plans
same
or
con-
M
final
International System of "Politically Managed Currency."
the establishment of an International Mone-'
tary Fund written by delegates of 44 nations assembled at Bretton
place the military authorities definitely in the saddle in
Washington and to set the propaganda machine to work
foolishly condemning the general public for following earlier
no one
an
Was the proposal for
I.
Recommendations
Several
the
immediate
operation
All five of the proposed
changes
of taxes
in
affecting
business are recommended.
These
would
during the period of
(Continued on page 2314)
of business
,
changes
improve the cash position
So It
;
WMC Relaxes Controls
Really Must Be
U0ur national
prosperity requires that our ex¬
intention
j,
future
doubt will be in the
to
was
relaxa¬
The
plans for progressive
mit
effect
into
put
circumstances per¬
rapidly as
as
controls.
statement continued that a
tion
man¬
of
eral
manpower
of all controls could
anticipated until the war
easing
with
in the United States.
transitional
post-V-E
gram was to
be carried but, which
-n/^//
r/*-
"Private persons,
ernment,
and not Gov¬
will decide what is to be
Stettinius,
according to the Associated Press
from
for plants
way
em¬
fewer workers to
increase their present
problem of early recon-^industry, or that it is I
the
over
..
.
gleaned from the action of the
since V-E Day. The Board
be
WPB
revoked
has
week,
last
characterized .it
period,
the War Manpower
in which
one
as
with
be faced
Commission would
frustrated
is
artillery components con¬
shell
containers, Bailev
Bridge units, and even one
tyne
of jet engine. Programs
related to
shell output which are
tracts,
hard
its
in
./';/
smooth opera-
info
"• '
..
//.
retained
themselves
fire
grip
by the WPB on the sup¬
Board's
announcement
latest
make
us
Government
the
certain
In
of
the
other
instruments
valueless—whether
done in the
the
not
or
of
name
command
its
at
offending acts
average
regarding civilian production.
new
workers for expanding
production."
policy which WMC ' will
The
civilian
follow; between now and July 1,
summarized by the Associated
opposed to
the
that
said
by
from Washington, May 15, adding that the
only
nation's
which the
in
way
that
indicated
Committee
matter the
about the
George
there
should
be
the facconsideration of
tors, and
the end
not on
of the
all
on
*
i
ad-1 contemplating larger
downward
"based
alone."
war
George said there should be
-
reduction
ing
that
danger
when
He
of
the
war
drastic
as
economic
an
conceded
r.o
with
that
cuts,
nosedive
Japan ends."
there
and
be
can
that
taxes
probably will be high for
time. '
a
possible, add¬
"otherwise there is a
as soon
long
a
just
pending
a
business
laws
ing
of
up
in
It
nounced last week.
It
rates.
that
all
program
personally subscribe
five
America
World War I
talk
can
you
can
only
.
make them good by taxation.
in the country, he
partner in the Govern¬
ment of the United States.
There
countries
was
for
the
in
default
on
Roosevelt
of
the
achieve
to
asserting that
Act
was
re¬
necessary
adequate
an
President's
rather
impas¬
sioned assertion,
according to the
Associated Press, grew out of a
reporter's request for information
to
special
did
when
news
not
conference
he
might
conference
know
would
have
on
when
be
taxes.
such
held
a
a
since
he is still working on that but he
it would be very shortly.
said
He
was
asked
if he
saw
an
ac¬
Mr.
Truman
said
flow
be and that he
can
been
never
the
for
first
Mr.
was
as
Roose¬
true
as
it
Johnson
Act
T
place.
(Earlier reference to tax reduc¬
tion
proposals
issue of
made
was
May 17,
page
in
our
PWs Work
About
400
arrived in
May
15
at
Nazi
assist
in
Cecil L.
mander
Rutledge, post
said
expected
that
as
1,100
soon
as
cash
for
their
the lowest point values.
are
adequate
work,
soldiers, but
He
this inter-
com¬
more
housing facilities are available.
The prisoners do not
receive
any
the equivalent of 80 cents
instead
a
day is
paid to them in canteen checks.
The Germans
diet
as
are
are
not
the
all
areas
be
manpower
continued;
in
controls
manpower
discretion
of
director; all
the
man¬
controls v/ill be eliminated
Group 3 and 4
areas.
Because of cutbacks in
pro¬
decline in the number of Group 1
within
areas
months.
in
As
the
of
next
May
1,
74
three
areas
in this classification and
were
111
Group 2.
until it includes only direct
and
war
war-supporting produc¬
tion.
The 48-hour work-week will be
after
July 1 for estab¬
lishments in Group
as
1
areas
with,
exceptions for individual
In Group 2 the 48-hour
now,
plants*
work-week .will
area
given the
American
given foods with
know
just
directors.
be
optional with
The 48-hour week
will be maintained
some
what
overall
the
re¬
the
for
prosecuting
against Japan will be. .
war
In
.
industry¬
industries, but
on an
as
metal
mining.
RFC Credit Facilities
-
Purchasers
owned
of
;
government-
surplus
goods have been
invited by the Reconstruction Fi¬
one
company's
for
about 50
production, 45
production, 30
weeks'
weeks'
struc¬
tural output, and at least 65 weeks'
rail
output.
There is a
bility that
proba¬
fair amount of such
a
backlog
will
be
within the next 60
neutralized
days; however,
with
-be
main requisites, the first
of which is, "revision of the Sur¬
to
plus Property Act of 1944 to make
workable,"
and
the
second,
ments do not interfere with war
business on war supporting activ¬
"stock-taking by the armed forces
ity holes in backlogs and sched¬
ules may be rapidly plugged.
two
it-
to
what will
the
•tor
A
is
what
see
be
and
owned
now
reasonably required
and after
Due
•
eries
one-front war."
tentative
civilian
timetable
for
72
to
steels
soon
be
notwithstanding this,
it
is toe
early to predict when the manu¬
time
in
facture
of
civilian
goods will in¬
from the present trickle to
full-flow
production
in
the
fu¬
ture.
Uncertainty
other
point
question
prevails
that
and
of
over
is
an¬
the
on
what
prices
con¬
sumers
will pay for these goods
Chester Bowles, OPA Administra¬
tor,
in
discussing
the
matter
stated, that manufacturers' prices
improved
some
quoted
more
heavy
shipment
on
July 1, when such ship¬
being
major products has been prepared
by industry and the WPB, but
allowed
consumers
place orders for
drastic
deliv¬
structural
on
revisions
building / restrictions
in
order;
months
For
in
may
the
first
structural
steel
inquiries were dominated by fac¬
tory buildings, repair shops, han¬
gars
and /industrial
production
structures.
:'>/.//f/';''
The program of steel price revi¬
sion has been definitely approved
and product
increases, in addition
price
announcement in January are ex¬
pected to include semi-finished
to those made in the interim
steel
(except skelp), wire rods,
spikes, bail ties and hot roller
bars, the trade paper notes.
Of
pegged at the 1942 level,
plus certain markups to cover in¬
the
creased
January, plates,
material
Enlarging
said
he
his
upon
would
tributive
and
remarks
consult
with
he
dis¬
trades
concerning "the
way of carrying out our gen¬
obligation to minimize re¬
prices
increases
whenever
best
tail
manufacturers'
be
can
costs
wage
price
absorbed
in
increases
whole
or
in
part by.wholesalers and retailers."
Steel
Industry—The volume of
steel orders in the past week con¬
tinued in most cases to exceed
shipments,
but
cancellations
The flow of
with
in
the
steel
substantia]
background
cancellations
is
expected io show greater acceler¬
ation
men
in
about
two
weeks.
Steel
believe that the cancellation
period will last for about 60 days
According to "The Iron Age," in
its
current
summary
of the steel
items
ed
to
get
space
on
mill
appearance
schedules
due
of
in
be
steel com¬
showing
The
that
mill
Steel
last
Tuesday
operating
rate
of steel
(including 94% of the
industry) will be 92.9% of capac¬
ity for the week beginning May
21, compared with 95.3% one week
ago.
This week's operating .rate
represents a decrease of 2.4 points
from
last
week's
rate,
and is
equivalent to 1,701,600 net tons
steel
ingots
pared
to
and- castings,
1,745,500/net
week and
of
com¬
tons
last
1,762,600 tons one year
ago.
'
"
Loading—Carrevenue
freight for
Railroad Freight
the
of
week
ation
ended
838,507
of
24,892
steel
and
Iron
announced
the
hold
on
loss to
companies
nounced.
places
a
American
Institute
oart to the desire of customers to
their
said to
panies.
totaled
the
boost.
small
another
are
loadings
and
in
raised
were
Items to be advanced
trade, it says: "A lag has devete
oped between steel product con¬
cuts
which
light rails, nails
and galvanized sheets are expect¬
tract
and non-ferrous
on
account
weeks' sheet
bar
cancellations mount.
as
now
books/will
a
the
soon
Orders
solving of the problem,
industry offers what it believes tc
;
continued
At the
demands.
war
quirements
eral
be continued but will be trimmed
down
behind the
moment it appears that neither the
WFB
nor
the ;armed* services
would be
war
on
general
operations of the camp.
:
In
making the announcement
Col.
is
program
duction, McNutt predicted a sharp
the
graduated reduction of taxes.
seen
prisoners
Camp Kilmer, N. J.
to
the
long as necessary to meet
shortages. Such industries include
textiles, logging and lumbering
Camp
war
said
not
in
only
same
had
1,
the
wide basis in
2207.)
than the
Sales sta¬
to
year
to about a 25% gain.
The
latter, however, will be whittled
concerned, but at the
are
mills, they will take second place
crease
July
Group 1
power
of
personally had
the
count of an interview with Chair¬
George (D.-Ga.) of the Sen¬
ate Finance Committee respecting
a' proposed five-year program for
man
he
In
essential trade.
velt's statement
more
The list of essential activities will
a message to Con¬
in January by former Pres¬
peal
on
stated to be:
obligations.
ident
must be protected.
He
he
his
,
The
After
He read from
85,000,000
individual
bond
holders, he continued, and they
as
to
gress
in
one
a
conference
told
repeal of the Johnson Act which
places
restrictions
on
private
they want to but
and
Truman also
loans
we
have got to make good
obligations of the United States
Ev,ery
President
tax
news
reduction
subsequently outlined by
George.
program
news
yet to the
as
graduated
year
-
and
people
that
reporters
take
to
workers.
business. Dough¬
on
reminded
refunds
that
are
burdens
some
producers
ian
at
The President said at the
taxes
This does not
reduction in tax rates,
but. otherwise provides for easing
also
conference
an¬
call for any
profits
excess
officials,
be
would
exempt
small corporations from the
said, i is
ployment ceilings to allow civil¬
Taxation
Treasury
manpower
profits tax by raising the
exemption from $10,000 to $25,000.
cf
Commit¬
and
pending reclassifica¬
may,
will
excess
cn
Congressional
tee
not call for
tax
post-war
of
bonds.
about
tion of the area, revise or lift em¬
area
improve the cash position
chiefly through speed¬
cashing
many
rector
the joint
Doughton added that he did not
cf business
areas,
the WMC di¬
area,
to
as
2
and
personally favored the five-point
Senator
reduction
any
would
2
or
areas
so
1
orities
unemployment appears in
Group 2
duction.
This program does
If
does not contemplate in¬
creasing exemptions until 1946.
civilian pro¬
to
3.
Group 1
will
$5,700,000,000 quickly avail¬
able to business during the recon¬
war
Group
controls
make
version from
he
in
main-
where the labor supply is short.'
to ad¬
program
tax
iained
be
will
week
the
Mr. Truman apparently did not
oppose
48-hour
program agreed upon by
ton
*
/•-./
.
Manpower programs that in¬
the
Leaving the White House later
said
.
employment
stabilization
employment
ceiling
programs,
priority referral ana
'
;
Representative Doughton
management-la^
programs,
exemptions
for business.
local
clude
*
:
j view but that he had seen an in(D.- j terview with George last week rethat j ferring to a five-point program
Ga.), however, took the stand
justment
2.
the
as
with
bor committees.
and Means
feltS
he
same
Senator
President.
(D.-N. C.): of the House Ways
Doughton
plentiful) may be lifted
directors/after consulta¬
or
area
tion
85,000,000
bondholders could be protected was by taxation.
Chairman
Manpower controls in Group
areas (where labor is ade¬
quate
plan to reduce taxes before the defeat of Japan," the
any
Associated Press reported
President
1.
3 and 4
conference that he was definitely
lower
to date.
the
on
down
and
are
Opposes Tax Gut Until Japan Is Defeated
50%
ago
After July 1, producers will have
free access to metals as far a$ pri¬
Press, is:
President Truman told his press
schedules.
date, ac¬
cording to the magazine, indicate
drop in the excess over a year
kebpni^
as
Truman
and
being
;;
a
ing
helpfulness.
are
steel
about
plapts manned while recruit¬
"most difficiilt^ task; in
a
them
render
gun tube
output
1945
tistics
accompanying
aggregate, the amount
business last week
fresh
\yar
not
with
carriage,
dropped from
war
Let
through controls, subsidies, tariffs, or any of the
in
control
...
ply of materials may be found in
the
Actual
was
/.
An illustration of the firm
being hit
adapters, boosters
artillery pieces
involve
slashes
attempt to get the machinery for
McNutt, in speaking of the postV-E
industry
icy
the
available
materials for their
Under such a pol¬
manufacture.
heavy
the .and fuses.
at
has- not
it
made
raw
necessary
within the
items
of
but
time
same
controls
production
hundreds
on
lion.
.
the bot-r
production may
Some understanding of
ply is plentiful.
a
,.
..Ui
i..
.
tleneck in civilian
reconversion
and that
f
.
Cancellations on steel business
wilfully neglecting its-, duty to-; this past week were apparent in
ward this end.
It has already ini-isemi-finished steel items; plate*
1
piclies
and hot lolled sheets.
tiated many steps to achieve this
On the*
heels of heavy
goal; however, their immediate
artillery ammuni¬
tion program
effects will not produce the de¬
changes, states "The
sired amount or quality of civil¬ Iron Age>" reports coming in from
customers
reflect a
ian goods in the near future.
'slashing 0f
of
version
similar
plan
would
be
developed -/for
larger plants where the labor sup¬
tical value.
does
that
or
civilian output,
circumstances be of little prac¬
some
or
resume
hope that we shall not be misunderstood,
however, if we observe that such prerogatives as
in
the
clearing
11,
being worked out for
were
ploying 100
are
May
Washington,
details
We
these may
classification
beginning July 1.
^ • I
In announcing the plans, WMC
Chairman Paul V. McNutt said,
encouraging words
from the Secretary of State.
We
are, of course, quite certain that,
he utters them with full sincerity.
Jr.
pro¬
day-to-
into account
take
WMC system of area
tinius.
These
Day
day labor, market conditions and
would involve a change in the
;
soundly advertised and soundly
priced."—Secretary of State Stet-
R.
Japan was over, but that a
would
bought and sold, and in what
quantities and at what prices. It
rests with private persons to make
sure that the goods they offer to
the' world
are
soundly made,
E.
be
.
-
=
gen¬
aged; and conducted directly by /
government. We do not $lan it so
not
There was ho real7indication this week that the spot authoriza
tion plan approved last fall and designed to permit
manufacturers te
produce civilian goods when materials become available have vat
reached the point where recent/efforts in/this, direction are
im!
pressive. V
■/'-r ' - :
/"v '•; /// '■>
"., /'a;;;"
If would be unfair to state that the Government is not
concerned
May 11 that its ,///,
sion announced on
change of products with the world, in both direc¬
tions/ shall grow steadily.
:/'/-Z/i;
"In some countries foreign trade has been and no
The State
Commis¬
Manpower
War
The
Thursdays May 24, 1945
FINANCIAL CHRONICLE
THE COMMERCIAL &
2310
American
This
12, 1945,
the Associ¬
May
cars,
Railroads an¬
was
a
decrease
2.9% below
preceding week this year and
cars,
or
of
the
28,-
of
schedules while shopping for new
contracts.
This
condition
also
facilities, the Associated
partly results from the fact that
Press reported from Washington,
May 12.
It was pointed out that
components manufacturers, whose
peacetime product is the same as
675 cars, or 3.3% below the corre¬
sponding week of 1944. Compared
with a similar period of 1943, a
decrease of 10,525 cars, or 1.2%, is
RFC
guaranties of bank loans,
plus direct RFC loans where local
that for which
shown.
credit is not available, will enable
on
nance
Corporation to make
its credit
industry
to
obtain
the
use
financing
required to make purchases "with
'minimum of paper work and
a
delay."
been
canceled,
to
Soon,
their
war
contracts have
still
are
place
on
holding
the mills.
however,/ the
whose
programs
contractors
have been cut
bacK will have little desire
cuse
to
or
ex¬
keep steel orders intact."
Electric Production—The
Electric
Institute
Edison
reports that
the
decreased to
approximately, 4,302,381,000 kwn.
in the week ended May 12, 194o,
(Continued on page 2318)
output of electricity
THE COMMERCIAL & FINANCIAL CHRONICLE
Number 4388
161
Volume
sales
Business Has Passed Peak, Ayres Says
War
pnd operating revenues,..net
profit
before
income
taxes
and
which has been the world's biggest business during the net profit after income taxes of
»ast five years, has reached and passed the peak of its expansion, and $1,-211,648,000, $125,304,000, $54,172,000 in 1942 and $1,306,924,000,
the processes of contraction have begun, said Brig. Gen. Leonard P.
Ayres, United States Army
(retired) in the Cleveland Trust Co $133,373,000,; $52,874,000 in 1943,
monthly business bulletin issued May 15, in which he further said: respectively. Net profit after in¬
come
taxes as a percent of net
The contrac^
*
—
] any but mature and experienced worth was 10.4% in 1942, com¬
lion will con¬
workmen.
Much flexibility has pared with 9.9% in 1943.
tinue for per¬
i
War,
been introduced into
business
our
by these developments,
and, many strongly held and well
five years.
\
The
past
processes
in
which the
Government
has been the
chief
custo¬
,
entrenched
war-years.
prejudices have been
swept away.
...
a
great deal about government, and
perhaps
mer,
a
with business.
have been
period
of
educational
experience for
business
in
three leading
respects. , In
the first place,
business
economy
planned
a
is
econ¬
business! and
public
war
years.
the
P.
Leonard
planned
product
Ayres
the
learned ;'a
have
know that
now
is
economy
abstract
the
not
thinking
in
revenues, net profit be¬
income taxes and net profit
after income taxes of
$99,621,000,
d-:
a n
$736,465,000,
$171,479,000,
quotas,
coupons,
vast total of
and
a
applications, reports,
and
questionnaires. We shall learn
still
more
about it
as
our
war
ac¬
tivities continue to contract.
in -1943, • respectively.
Net profit after income taxes as a
of
percent
in
worth
net
./•"Aviation Transportation" with
companies reporting in 1942
and
13
1943
showed
ating
companies
they
nearly
were
times
seven
as
great.
net profit
revenues,
000
in
4
Commission
profit
May 11 made public
on
part,^
this
in
after
worth
Net
as
a
18.6%
was
Hard Coal Strike Ends
Anthracite miners started to
turn "to Work
or
re¬
^1942 show 400 registrants report¬
ing net sales and operating reve¬
nues
of
$11,404,398,000,
which
compared with 394 registrants re¬
and operating
$12,314,752,000
in
sales
net
of
revenues
May 21 following
on May 17
on
by the operators and the Untied
Workers of America, which
Mine
calls for
compromise wage
a
providing
overall
$1.37'%,
an
increase
pay
of
con¬
daily
The
agreement contains provisions for
travel
time
beyond
day and 35 hours
a
pay,
seven
a
week,
differentials for second and third
shifts,
and
increased
vacation
The travel-time pay
allowances.
is believed to be between
$1.12 %
and $1.20 a day.
The
new
review
to
showed
taxes
a
as
agreement is subject
by the National War
tion agencies.
It is expected that
be approved
it will
of
the
at
workers,
referen¬
which may
a
It
about two weeks.
be held in
Will be retroactive to May 1, and
will
for
run
terminable
one
1943.
and
The
notice
being
after that
•operating revenues in
1942,
against $1,315,520,000, or 10.7% of
and
operating revenues
Net profit before income
ating
net
taxes for these companies was
taxes
sales
and
9.4%
operating
•and
10.1%
of
revenues
to
rose
revenues in
$1,240,945,000,
sales
net
$1,sales
in 1942
of net
1943.
operating
and
Net
or
in
These 40
$1,495,939,000
of
revenues
against $1,691,640,000 in
profit before income
was $94,966,000, or 6.3%
of
Net
and
in 1942, com¬
revenues
with $144,179,000, or 8.5%
in 1943. Net
pared
of sales and revenues
profit after income taxes
amounted
to $46,246,000, or 3-1% of sales
f and revenues in 1942, compared
with $45,657,000, or 2.7% of sales
sales
profit after
income taxes in 1942 amounted to
$506,369,000,
and
operating
with
4.4% of net
or
compared
4.1% in 1943.
revenues
$505,674,000,
or
Net profit before income taxes as
a
percent of net worth
in
1942
and
23.8%
was
21.1%
1943, while
in
net profit after income taxes as a
percent
of
decreased
worth
net
1943.
These com¬
panies showed A net
profit after
and revenues in
income
taxes as
a
percent of net
8.2% in 1942,
compared with 8.1% in 1943.
worth amounting to
The group
net
sales
with the next largest
and operating
revenues
Houses." Seven
1943. Net profit after income taxes companies reported net sales and
is
the amount of profit after all operating revenues, net profit be¬
'Charges
and
represents
the fore income taxes and net profit
after income taxes as $1,642,861,amount transferred to surplus.
from
10.0%
■ijQf the
42
"Grocery
Ported
15
and
and
the
operating
in
1942
industry
Food
in
groups,
Stores"
re-
largest net sales and
in 1943. These
revenues
companies
reported
operating
revenues
415.000
9.7%
to
in
net
sales
of $1,762,-
compared with
in 1943.
Net profit
1942,
SI,816,455,000
before income
taxes
amounted
$39,231,000,
2.2%
of sales
revenues
in
or
to
and
1942, compared with
was
"Mail Order
$138,673,000, $52,263,000 in
$1,587,361,000, $139,318,000, $43,941,000 in 1943, respec¬
tively.
Net profit after income
taxes as a percent of net worth
was
9.8% in 1942 and 8.0% in
000,
1942 and
1943.
the
other
industry
included in the survey was
"Limited
Price Variety Stores
groups
with
the
11
companies reporting
net
of
who
these
Government
trol ori May
has
mines
took
con¬
3, estimated that the
in the loss
of
resulted
strike
3,500,000 to 4,000,000 tons of an¬
'
thracite.
•
'
delegation at San Francisco for M.
cooperation and helpful¬
ness
and for the important and
continuing
contribution - of
the
French, delegation to the work of
the conference.
1
The
of the
Solid
Fuels Administration, announced
that anthracite coal operations on
Forbes,
J.
J.
21
May
manager
were
proceeding in 326
under
according to
Associated Press, which fur¬
the
of
333
people and the American Govern¬
that the French
realize
ther
stated:
Mr. Forbes
emerged with renewed
strength and vigor from the ca¬
tastrophe which it suffered and
it
that
manpower
put on May 21 would equal 85%
or
90% of the estimated normal
daily production of 206,000 tons.
only idle collieries are in the
The
Pa., area, where high
water and mechanical deficiency
Pottsville,
closed two mines.
and its ability
its
place
among
He
questions
this
States
;
the Presi¬
that
Justice
W.
B.
Rut-
of
attended
United
the
moved by the strong¬
friendship, dating back
France
nation. A
represents a gain
world.
As
strong
the
the
have
consequence,
a
people of the United States
accepted reductions in their
requirements of certain essential
food items in order to permit in¬
shipments to the liberated
countries
of
Europe,
including
creased
France, where they are so urgent¬
'
ly needed.
.
high school
souri more than
in Mis¬
40 years ago.
succeeds Jonathan
Mr.
W. Dan¬
United
measures,
the
extraor¬
States has taken
ufacturers to put
these goods back
WPB's
until
market
the
on
nounced creation
next
uncontrolled pool of
an¬
July of
steel,
an
copper
and aluminum for civilian use has
■
publishing
;
-
will
industry
more
or
revoca¬
restrictions
lifting
one
manufacture of
on
printing
new
on
it was stated. It probably
eight or nine months
take
despite Ameri¬
items which
printing
provide
discontinued
been
have
com¬
pletely.
Similar warnings that
improved
production cannot be expected im¬
mediately, in most cases not until
after
re¬
are
accompanied
1,
July
on
revocations.
other
■
restraints
materials
moved
These included:
•
-
.
.
Removal of the ban which pro¬
hibited
for
of golf balls
manufacture
except
Veterans
warned
clubs
the Army, Navy and
Administration;
WPB
golfers not to expect new
soon.
controls
of
on
pro¬
duction and sale of house trailers
and
expansible mobile houses. The
are 'i trailer-type
dwellings
latter
shortages of essential supplies
with
and
shipping, to arrange priorities
French procurement of such
permit expansion when the unit is
stationary.
- -,
for
for their
The
transportation to France.
Government
and
people
of
continue to
the United States will
measures as will lie
their power to facilitate
such
take,
within
the recovery
of France and of her
people.
Government's
this
Bidault
com¬
plete willingness to relinquish to
France a part of the American
zone
of occupation in Germany.
Details have already been con¬
informally
veyed
Government
•
are
faced
in the
now
emphasized that
with
and deadly enemy
defeat
whose
to
the French
of being formalized.
are
we
to
and
President
The
this
of
sources
still strong
a
manufacture of jacks,
whether
operated mechanically,
electrically, hydraulically' or by
air.
Special
the
accompanied
warnings
revocation of "M-126."
Some
regulated by or¬
omnibus meas¬
ure
and a few of these have not
been
lifted.
In
addition, WPB
ders other than the
said, the controls on stainless steel
which formerly were included in
the order were continued, having
been
total
the
both
material,
NY State Savings
in
are
in
or
might
synchron¬
be
already
operations
under way, would be
welcomed.
..
The discussion was on the most
friendly and cordial plane and af¬
the
opportunity
interest
President
to
emphasize
friendship
between
welcome
a
the
two
.
the
mutual
and
coun¬
•<■■;/•"
have
Savings
the
by
Association.
>
The month's increase was more
might bring to that struggle
of
recently
Banks
with
savings
State
April of $92,676,304, it was re¬
other
which
131
York
New
passed the seven and one-half bil¬
lion dollar level, with a net gain
ported
assistance as France and our
forded
of
the
in
Deposits
banks
re¬
Banks
Deposits Over $7% Billion
He indicated that such
pledged.
planned
incorporated in another reg¬
ulation.
in the Far East
country,
and
manpower
bonds
rules regu¬
Cancellation of the
lating
of the items were
President confirmed to M.
The
which
sections
collapsible
than 50%
greater than the gain in
April last year.
The savings
i
l
....
banks showed a net
accounts
growth of 26,978 in open
making the
number of depositors 6,531,459 as
of April
30, with total ^deposits
during
of
the
month,
$7,500,280,624.
Savings
bonds
and
banks'
since
1941, passed the one
with
April.
sales
of
of war
May 1,
billion rqark
sales
stamps
during
$15,068,505
-
•
t
r
and steel in
iron
of
of goods.
Its revoca¬
tion will not materially help man¬
can
tries.
iels.
use
Revocation
of
Government
the
Also
the
types
will
the founding of this
to
ized
the United States Su¬
preme
Court, administered the
oath to Charles G. Ross when he
was
sworn in as Press Secretary
to President Truman, with whom
Ross
was
est ties of
400
to
indicated
dent
industry as "M126,
which
has
been revoked,
freeing from controls 1,200 of the
commonest
civilian
items,
for¬
cases,
of world and Euro¬
connection,
metal
no
The order known
the
throughout
granting priority aid for printing
machinery
except
in
unusual
interest.
In
:
received
had
make them.
to
the other remov¬
the amount of cop¬
per and zinc which may be used
in producing printing plates.
WPB
will
make
a
policy of
part which France could
and1 should play in the settlement
pean
however,
May 16",
manufacturers,
that
added
machinery and
the
of
Washington,
irom
which
Press,
by the United States Government
of
port
the
indicated
and
by
ac¬
tions, according to the Associated
full appreciation
a
products
Board,
cording to an Associated Press re¬
ing limits
was
civilian
Production
War
benefit from two
the
Gaulle
de
the
The
expressed his desire to meet
that there
of
number
become effective.
<
General
Controls have been lifted on a
i
to re¬
rightful
world.
and
Associate
de¬
and eminent
nations which
will share the largest measure of
responsibility in maintaining the
future peace of Europe and the
allies
C. G* Ross Sworn in
ledge,
its
demonstrated
has
process
estimated the indus¬
at 68,800.
He
said that 93% of that number re¬
turned to work and that the out¬
try's
na¬
has
tion
coal properties
Government control,
the
abun¬
American
that; the
clear
On Mere Civilian Items
bade
made/it
President
.
anthracite industries for the
he
Among'
charge
in
since
compa¬
entire
Solid supplies and to provide shipping
Ickes,
Administrator,
been
1942,
1943.
'072,860,000,
or
-
L.
Harold
.
Fuels
reported net sales and oper¬
nies
in
pired.
showing the next
sales and operating
1943 was "Depart¬
Stores."
ment
•/
halted
was
May 1 when the old contract ex¬
in both 1942
--
Pennsylvania's
in
fields
anthracite
profit after income
*
the
dinary
on
Production
group
revenues
sales
American
year,
time.
percent of net worth
to 8.5%
amounting
largest
Operating profits for these
amounted to $1,126,208,000, or 9.9% of net sales and
net
a
1943.
net
fication4 of
to
Labor Board and other stabiliza¬
These companies
1943.
in
enues
companies
in 1943.
the grati¬
agreement reached
an
-
porting
The President took the occasion
at the outset to express
termination
1942, against 14.5% in 1943.
dum
2.2% of sales and
.Service, Transportation and Com¬ revenues in 1943. Net profit after
munication, Mining, Finance, Real income taxes amounted to $18,Estate, Agriculture and Construc¬ 030,000, or 1.0% of sales and rev¬
enues in 1942, compared with $18,tion.
394,000, or. 1.0% of sales and rev¬
Combined
industry totals for
$39,272,000,
before
respectively.
incomes taxes
percent of net
of "Data on Profits and Operations,
Retail Trade, Wholesale Trade,
States.
oper¬
1943,
underground
Operation of Listed
Corporations Reported by SEC
covered
United
sume
1942-1943,"
Non-Manufacturing Industry
Individual company data for many of these companies are
in the Survey of American Listed Corporations reports for
time.
The major industry groups, which include the 42
industries
;are
and
report
data on 413 companies in 42
first
in
reporting
sales
net
$15,783,000 in 1942, and
$197,576,000, $29,224,000, $15,322,-
in
by 1944 they had increased until
the abilities of
of;
-
French
Bidault's
11.
hours
included
in
'
Overtime for work
the
12.8%
was
1942, compared with 14.8%
1943.
tract
have been suc¬
cessfully trained to do jobs that
had traditionally been regarded
<of such newcomers
Croups.
• conversing
- with
the
Foreign Minister, M. Bi¬
dault, upon his arrival from San
Francisco and of discussing with
him a number of problems of pri¬
mary interest to France and the
today
ment
ration
In another section of his
Part V of its survey
in '1942
♦
by the President.
The President had the pleasure
$60,153,000
?
covering
$561,341,000,
$49,125,000
-
Statement
,
515,000,
restrictions,
field Gen. A-yres said:
of business activity managements
Expenditures for war in round
have
learned more about the numbers totaled 13 billions in
training of new workers than they 1941, nearlys<50 billions in 1942,
ever knew before.
This has been- almost 83 billions in 1943, arid
especially true with respect to the well over 86 billions in 1944. They
training of women, and of young were equal to the other govern¬
beginners of both sexes. Millions mental expenditures in 1941, but
The Securities and Exchange
and
dent Truman's conference with the French Foreign Minister, Georges
Bidault, and his expressed desire to meet with Gen. Charles de Gaulle
to discuss France's participation in international settlements:
dantly
before.1.
Profits and
sales
net
p^eratln^
Secondly, in almost every
being beyond
showed
With French Minister Bidaull
v
the following statement, as reported
Washington by the Associated Press, May 18, concerning Presi¬
from
income taxes and net profit after
income taxes of $168,276,000, $29,-
boards,
than
wage-workers
They
of
reporting
r:-■
controls,
in
the practical arts of cooperation
than ever before. In manufactur¬
ing, the vast expansion of sub¬
contracting has made cooperation
essential, and within .individual
plants there has been more effec¬
tive cooperation between manage¬
as
'
" The White House released
,
high places, but that it is instead
slowly and. painfully worked out
by trial and error.
It involves
experience
ever
war
great deal about that during these
men
and
both
and
omy,
had more
ments
A
in large measure
general
"Motiori Picture Producers and
Distributors'!'with nine companies
fore
■
Finally, business has; earned
government
has
bene¬
fited from its increased contracts
have
Trussian Discusses de Gaulle Meeting
.
,
'.another
haps
2311
:,
*
v
•
1
'
) tt.i '
Plsns for
The
As
persuade the busi¬ many, such as the motor in¬
community /to neglect dustry, where a very substan¬
problems it must face in re¬ tial rate of decline is to be ex¬
turning to the tasks of peace¬ pected.
Such figures as these sug¬
time, or unnecessarily defer
steps designed to expedite re¬ gest a very considerable re¬
conversion.
shuffling of operations and
/That these tasks are real personnel as between the va¬
have been brought home to rious branches of industry.
or
careful students of such ques¬
tions—if
reminder
were
In
of
instances
some
course
industry which must re¬
an
by figures last duce its volume for even
week made public by the War capacity production of peace¬
Production Board. These data, time goods may be on the
necessary
covering
reports
of
wards
•
—
from
three-score
up¬
indus¬
located
in
others
are
tries* suggest that when these which
located
reach
In such
difficul¬
operations
to
completed the
peacetime pur¬ peacetime maxima.
the
attained capacity circumstances,
conversion to
suits
and
production their output will
30% below
ties of
least
their
increase
must
of
rate
branches have
districts
whole
where
reconversion,
so
far at
they have to do with
curient
production.
When employment, will tend to be
they have reached the finan¬ reduced. There are many in¬
cial break-even point, their stances, however, where such
output according to the these will not be the case. It is
be between 25 and
estimates would be less than
40%
tion.
as
latter instances which
these
of the current produc¬ raise the question whether it
The length of time re¬ will be possible to avoid the
quired to complete the re¬
conversion and attain "break¬
ment
activity, are set which have characterized the
ranging from no conversion of industry to war
all in those industries production.
even" rates of
down
as
time at
which
have
duce
of
of
watches.
for
with those
in the
jeweled clocks and
Capacity production
Full
Story Not Told
The full
story is, however,
by the comparative
of output listed in tne
told
not
purposes
peacetime, to
case
to pro¬
identical
articles
practical
war
rates
a year
Board's
War
Production
table.
There, for example, the
motor
industry is scheduled
output from
from one month in a few in¬
stances to 15 months in the $2,153 million a ' quarter to
case
of the automotive in- $1,227 million should capa¬
city production be reached
dustry.
will/or
could
be
reached
in
for
a
after
Worth Inspection
timates, which
the
es¬
appear so con¬
over
that
will
than is
The
war.
however,
L",
How accurate all these
reduction in
be
the
much
fact
is,
change¬
greater
thus indicated.
pro¬
—
Japanese occupation and
from the
the shortage of meat
for
over
designed to relieve the situation, warning however, that its ef¬
fects would not be felt in the retail market for some
time, advices to
the New York "Times" from Washington stated on May 18.
The following is the text, as re¬
/>
resulting
erty war damage claims
controversy
gram
a
$500,000,000 to meet prop¬
fund of
the
to
the United States;~Fred M. Vinson, Director of the Office
Mobilization and Reconversion, announced a broad new
of War
(R.¬
Taft
A.
bill to set up
a
solution
a
civilians in
v
leased
United
the
by
of
Press,
to
maximum
subsequent freeing of the Philip¬
the revised meat control program:
The program, which is
recommendations
made
per
Senator Millard
Office
the minimum of
the
range, with a mini¬
stabilization
pine Islands would be introduced
into Congress upon the return of
and
a
Tydings (D.-Md.)
of experts who have
group
gone
to Manila to survey and re¬
port
on
extent of damage
"Journal
of
Com¬
the
the
there,
merce"
in
from
stated
Taft
had
of the Office of
Stabilization, the Of¬
fice of Price Administration, the
War
the
of
The
WDC's
in
owners
its
the
recommenda¬
House
Senate
and
investigating the food
pected
to
new
improve
to
and to make
in
per¬
meat available
more
of the country
areas
ative
is ex¬
distribution
program
shortages
pronounced,
where rel¬
been most
have
will
it
take
some
time
for
of the islands.
gram
to be felt. Consumers should
Ki/./ /
1
;;
of
the
not
WDC,
Manila
of
eligible for
claims,
was
of
such
payment
damage
sustained
was
not
This
but
three
it
To
that
during
revision
the
least
untouched.
posals
Several
into
on
hand, but none
yet taken the form
Congressional bills.
has
An earlier fund of
taken
tion
of
by Presidential
fund arid
the
to
-
This announcement
feeders
cattle
assure
.
1.25
"
"
Payments under
will
be
lots.
The
action
is
in
April 11 announce¬
hog ceiling prices will
be
reduced
before
Sept.
1,
B.^STfective
Commodity
wnll make
of
50
May 19, 1945, the
Credit
Corporation
payment to the seller
a
cents
hundred pounds
on AA and A grade cattle sold for
slaughter (sold for $14.25 or more
per
hundred
pounds,
Chicago
basis), weighing 800 pounds or
The
per
vincing
the
above
reduced, from the
»
rates
maxi¬
to the
mum
minimum, by 4 cents
for each 5-cent decline in
the av¬
drove cost below the
As
long
drove cost is at
imum
the
of
the
will
be
25
weight for
max¬
the average
above the min¬
as
or
stabilization
minimum
subsidy
cents
range
payment
hundred¬
per
grade.
any
C. The above rates
ble to both
are
applica¬
processing and nonprocessing slaughterers. Effective
June 4, 1945, the additional
sub¬
sidy for non-processing slaughter¬
of cattle
will
be 40
hundredweight. This
cents per
rate for
slaughterers
studies
of Price
is
non-
based
made
by the Office
Administration.
3. To Improve the Distribution
of
Beef and Pork.
A. Set-aside orders for Govern¬
ment purchase of meat will be ad¬
justed by the War Food Adminis¬
tration
so
tion
the
of
ments
that
a
greater propor¬
Government require¬
will
be
drawn
from
those
Federally inspected plants which
are
slaughtering
^
19"
>
appropria¬
WDC, will be returned
the Treasury.
t
of,
under control
now
feed
ment that
o;
$100,000,000,
to
notice
advance
line with the
re¬
funds
them
producers.
made
for beef
without at
ranges
bulls,
months'
_
pro¬
have been made with
downward
much
protection as possible
against price changes, and should
encourage the movement of cattle
gard to what should be done with
the
except
six
announced
no
as
claim of any
made
against WDC
funds and the $220,000,000 fund is
now
be
over-riding ceil¬
in the maximum of
or
is
no
»
All other grades
the
in
to
the
Vinson
will
stabilization
cattle,
Japanese invasion.
There has been
Director
there
ing prices
damage sustained after the Japa¬
had
occupied
the islands
and during, the liberation was far
significance
»
processing
Encourage Increased Feed¬
A.
would be inflicted during the
Japanese invasion operations.
It
was
found,
however, that the
than
1.90
ers
groups:
cwt
ing of Beef Cattle:
was
age
severe
—___$3.00
as
per
"
upon
believed that the bulk of the dam¬
more
main
subsequently
because
meat
The action announced falls into
1.
done
pro¬
immediate in¬
supplies as
any
retail
in
the
of
result of the program.
a
the
covered.
was
expect
crease
damage received prior to the fall
effects
the
as
2.95
through
the
sub¬
effective
follows:
Grade B
While
i
•
are
Grade AA
imum.
available
laws
4,
new
are
Grade A
erage
'• *
aged during the Japanese occupa¬
tion and the American liberation
the
of June
sidered.
whose properties were dam¬
Under
subsidy payment of 25 cents
hundredweight. The
sidy rates, which
made
payments by property
the United States and
possessions,
sons
The
mum
situation have been carefully con¬
have
raised
fund,
premium
of
committees
the $220,000,000 funds
Damage Corporation.
would
the Defense
and
tions
the
Supplies
Administration,
Corporation.
now
bill
Taft
Food
Army
pro¬
sidetracked,
which would have put to use for
the purpose
with
office
Vinson's
Economic
Washington,
himself
bill,
a
Price
Director
War
Senator
the
Administration,
by
representatives
May 17.
posed
of
based on
developed during discussions
was
nese
continued
throughout the
Ohio) stated that
kind of
geographical employ¬
and population shifts
Fund
Robert
Senator
to
even
ness
24, 1945
Vinson Announces New Meat Control Plan
Philippine
War Damage
(Continued from first page)
Thursday, May
FINANCIAL CHRONICLE
&
THE COMMERCIAL
2312
than their
more
normal
proportion of
slaughter.
In
effect
the
total
this
,
will
that there will be
mean
a
differ¬
ential set-aside, based
upon the
quantity of meat slaughtered in
relation
to^ the quantity slaugh¬
tered
during - a - >.■ representative
past period. In filling governmen¬
tal
requirements,
be
taken
from
meat will
more
the
plants with
a
heavy slaughter and less from the
plants with light slaughter.
This
will
result
in
more
uniform
dis¬
tribution of available supplies for
civilian use.-
when
arrayed
in industry is now making a few
Lift Belgian Trade Curbs
B. To make it possible to keep
more,'which have been owned by
form, will prove to be things which will be included
All restrictions on
private trade the seller for, 30 days or more. In livestock in the hands of those
time only will tell, but it is in its
regular post-war lines, with Belgium have been removed addition to the larger margin, this operators who comply with Of¬
probably safe to assume that but for the most part its task by the Treasury Department, will encourage the feeding of fice of Price Administration price
they are more to be trusted will be a matter of converting which did the same thing in the cattle to heavier weights, and in ceiling regulations, and to elimi¬
nate black market
case of France a month
operations, the
ago, the the long run will make more and
than many of the other
rough¬ from a production of over two Associated Press
Office
of
Price
Administration
reported from better beef available.
and the War Food Administration
ly comparable estimates of billion dollars a
quarter in Washington, May 14. As on that
2. To Increase
the Margins for will develop a plan by June 15 to
the New Dealers based not
tanks, planes and guns, to the occasion, practical difficulties ex¬
show the movement of all live¬
Processors of Meat
upon what is feasible,
but output of something over a ist to postpone trade on any im¬
stock through
A. The Defense Supplies Cor¬
public stockyards
portant scale, but at least the fi¬
what the "need"
(imagined billion dollars in passenger
and
public sales yards, so that
nancial machinery for
payments poration will increase the pork
by the mystics) is estimated cars and trucks
subsidy payment 40 cents per live information as to the destination
per quarter. now exists.
of all such livestock will be avail¬
to be.
At any rate, it is worth That
hundredweight retroactive to April
is true of a large num¬
Belgian assets in this country
able.
Record
keeping
require¬
while to inspect some of these
i,
1945.
'ims rate will be con¬
ber of other industries, such are still frozen, but the
ments which are needed to effec¬
Treasury tinued in effect
only until comple¬
announced
figures in somewhat more de¬ for
that
dollar
balances tion of a
tuate slaughter control
example as the printing
more
programs
thorough account¬
tail. When that is done it is
acquired by Belgian banking in¬
trades
ing study, following which the already announced, and meat dis¬
machinery
industry stitutions since Feb.
tribution program now being pre¬
2, 1945, may
found that while volume out¬
payment rate will be adjusted
which is scheduled to
change be freely used to make payments
(not retroactively), and a pro¬ pared by the Office of Price Ad¬
put on the average would be over from
$63 million per in this country on behalf of Bel¬ vision will be included for reduc¬ ministration, will be developed.
down even under
peacetime quarter of various imple¬ gian nationals.
; '
tion of tht subsidy as hog prices Representatives of stockyard op¬
erators and livestock sales agen¬
capacity production, there are ments of war to $39 million
decline.
Effective as of April 1,
cies will be consulted in the prep¬
branches where the
contrary per quarter of their usual and render unnecessarily ex¬ 1945, the total pork subsidy will
aration of the
tabular
is true—even instances where
return to
a
break-even rate of
operations would involve
increase
over
an
present output.
equipmentfor
the
printing
trade.
All
will
this,
quite
present
evidently,
difficulties.
Thus, for example, the motion
These problems, however,
picture equipment industry is will
not prove amenable to
currently producing at the
panacea treatment.
Nor do
rate of ; about $1.3 million a
they suggest the need of the
quarter,
It breaks even in sort
of
Government
"co¬
peacetime at $7.2 million. Its
operation" often proposed by
capacity rate is about $10.2 the New Deal. The
question
millioh. There are a number
which the "policy-makers" in
of others with varying rates
Washington and the ordinary
of
increase
predicted for man from
Wall Street to Main
peacetime, and a number in Street would do well to be
the
present; rate is
about^ie equivalent of capa¬ pondering on the contrary is
which*
city peacetime production. On
the
other
hand
there
are
this: "What kind of
action is most
policy
or
likely to retard
the
this
conversion
attainment
of
and
capacity
production of peacetime
goods, and what type of be¬
havior whether
the
on
government,
the part
of
the
organ¬
ized groups in the
community
such
as
labor
unions, and
others
can
be
counted
on
to
be
$1.70
as
pensive
live hundredweight,
with the previous
rate of $1.30.
This action on hog
subsidy rates is in accordance
with
of
per
the
the
April 23 announcement
Office
bilization
program).
(the
At
of
Economic
"10-point"
that
time
attained
and
normal
peace¬
prosperity
generally
prevail?" The helpful an¬
swers
of
will be found in
action
which
restricted sway to
constructive
economy.
courses
give
un¬
the natural
forces of
a
free
WPB Approves Civilian
Transport Plane Output
The War Production Board has
Sta¬
meat
it
was
authorized
to
resume
the
industry
aviation
manufacture
of
trans¬
announced that unless determined
port planes for American airlines,
otherwise before May 10 the sub¬
sidy rate on hogs would be in¬
stipulating,
creased
40
cents
per
hundred¬
hasten
the
day when full weight, effective retroactively
peacetime production will be April 1, subject to later upward
time
general plan.
compared
to
or
downward adjustments.
production
to
Press from
tion
25
cents
per
live
hundred¬
weight, effective June 4, 1945. The
subsidy payments are subject of
the
withdrawal of 4
subsidy
in
for' each
average
cents
5-cent
of
the
decline
drove costs, from the
not
that
be
The
such
allowed
interfere with military
ules, according
B.
Subsidy payments on
all
grades of cattle will be increased
by the Defense Supplies Corpora¬
however,
must
sched¬
to the Associated
Washington, May 9.
probable
tion will be that
result
of this ac¬
airlines, which a
recent survey has shown to be
need
of
about 300
new
in
planes as
soon
as
start
getting the first of them late
they
this year
or
can
be obtained,
early in 1946.
will
THE COMMERCIAL & FINANCIAL CHRONICLE
16J.„ Number 4388
Volume
2313
i,
Wallace Plans to Aid
for Military Gontrol of
;
Germany, Announced by War Department Business Changeover v
U. S. Plans
been worked out for the military government of Ger¬
under American organization, the Associated Press reports
Plans have
many
Secretary
A.
Washington, May 11, and gives the following as the text of the
Department's announcement of plans for the American occupa¬
from
War
tion zone:
'
.
months the United
Navy and Air Forces
many
For
States Army,
been perfecting plans for the
occupation of Germany and have
have
the
are
insure
to
United
together a co-ordinated pro¬
to impose a stern military
government over all of Germany
and
to
carry
out the policies
ting
to
see
immediate
it that
themselves, and
the
on
13.
essential
com¬
version
modities.
The
trol
agreed upon at Yalta.
As was announced in the Yalta
finance
division
will
Declaration,
Germany will be
governed through a control coun¬
cil on which each of the four
and
and
cific
the United States
control council for Ger¬
many.
Each power will adminis¬
ter a zone of Germany under the
control of a military commander.
The United States zone will be
resentative of
the
"In
audits.
well
controlled by General Eisenhower
as
Commander in Chief of the
United States forces in Germany.
Lieutenant General Lucius Clay,
United States Army, will serve
deputy to General Eisenhower,
as such
will participate in
the formulation of decisions af¬
including
This
and
control
Eisenhower's deputy
in carrying out the administra¬
tion of military
government in
General
as
and Recon¬
Mobilization
War
of
version before he went to Europe
General Eisen¬
War Mobilizer Byrnes, Clay was the di¬
April to join
in
Prior to joining
hower.
rector of material for Army serv¬
He has been described
ice Forces.
tough-minded soldier with
thorough understanding and ex¬
perience in the balance between
military necessity and civilian re¬
quirements. He was hand-picked
by President Roosevelt for the
a
as
direction
jthe^< occupation >of
of
Germany.
In
trol
■
,n
planning its part of the con¬
machinery for Germany, the
United States has formed
a
group
control council which will be fit¬
ted
into
the
council
control
Germany. The United States
has
been
divided
divisions,
to
the
central
corresponding
roughly
ministries
major
12
into
for
group
the German
of
4
government.
,
The heads of these divisions, in
addition to acting for the United
States
in
control
affecting
Germany
as
a
'
deal
with
lations and
now
we
although the infla¬
is likely to be
years,
pressure
intense.-",
no
controls, with particular
do
we
not
remove
too
and the in¬
frictional
unemploy¬
force,
well as the downward
as
pressure
some
on
price
areas,
consumption expenditures by in¬
be
as
problems of labor re¬
allocations, wages and
with dissolving the no¬
Front and lay¬
nevertheless' Will
dividuals
rise.
possible because a
higher proportion of current in¬
come will be spent and the dis¬
1 This
will; be
proportionately high level of war
savings reduced. In addition, pri¬
vate gross capital outlays will rise
due to reconversion requirements
as
well
deferred replacements.
as
all-important task of purg¬
The
civilian production
interrelated and comple¬
for
facilities
ing all public
German
tant
the
Nazi
the
and
foreign affairs, handle
political matters, pro¬
American interests in Ger¬
many,
and
advise
dealing with
formation
other
control of
services
in
sections
and
This Intelligence Section
maintain surveillance
all German agencies and pro¬
also
that activities by
underground, "Werewolves"
the like will be ruthlessly
assurance
suppressed.
Also
answerable
will
to
be necessary also,
make
dealing
of course,
•„
Tremendous
tasks
adequate provision for
transitional unem¬
In these matters and
particularly with respect to the
effect of transitional policy and
ployment.
of
with such problems as
food,
both
the
meanwhile,
that
announcement
Navy
as
Army
losses
reported through
April' 30 reached 867,709 and Navy
losses amounted to 104,945. These
totaled
an increase of 22,previous week's re¬
972,654,
182 since the
port.
'
ties
and
1
\
A breakdown
on
similar
■
Army casual¬
figures
preceding week is
witness
for
the
as
wounded 283,472 have returned to
duty and
15,379;
of the prisoners
been listed as exchanged
have
or
returned to military control.
;
Corresponding
the
for
figures
Navy are as follows:
and
41,458
Killed,
40,271;
wounded, 48,858 and 47,739; miss¬
ing,
.
forcing of exports
and restoration of imports
10,382 and 10,123;. prisoners,
4,247 and 4,250.
Despite the end
V'l,;
-0
of the war
against Germany,
Mr. Stimson
said,
some
individual casualty
notifications to next of kin
Taft Warns of Reactions
would
about
continue to be made for several
divided on which is the
policy to remedy great
excess of imports which
unbalanced her trade, Mr.
weeks as an aftermath of the opei['.atiohs in Germany and Italy,
Cabinet
British
The
evenly
better
is
„„„„„
^
war
will
counsel
ance
has
as
well
as
said, while all Latin Amer¬
leaning more and more
toward
protectionism
to
post-war home indus¬
high
build
up
tries.
He added:
"Unless
we
show willingness to
reciprocally, I fear the next
years will put us right back
the Hawley-Smoot days."
trade
two
to
in
committee
our
were
of
issue
of
truthful press
will
press
tions
an
unbiased
and
and radio system.
on
its part, will want
May
with
referred
17,
page
2200.)
eluding the
accreditation of cor¬
respondents, press censorship and
press
communications. Censorship
policy of the fullest possible
flow of news to press and radio
has been indicated by President
Truman through his press secre¬
A
Charles G. Ross, who said
office would answer all
tary,
his
that
possible
would
have
Press
British War Relief to End
Announcement
has
made
been
state, May 16.
A
day earlier,
Press
the early days of
aerial attacks on
England's war des¬
announced
London to aid
distribution
according to an
from
dispateh
President i Truman
Washington,
that
of
unhampered
consistent,
an
news,
would pre¬
despite a conj
with military security,
Announcement
of
the
decision
vail
Germany,
in
announcement
society's activities to
made by Clark H.
Minor of New York, President of
the national group, who said the
trary
British War Relief will not be in¬
cession to
to bring the
close
cluded
was
in
the
fall
drive
of
Pointing
the
out
that
the
critical
the
society
was
taken
consultation with the British
ernment.
'
by
Elmer
Davis, chief of the Office of War
Information,
The
president
that this, con¬
right of
freedom of the press wbuld not
mean
immediate restoration of a
asserted, however,
the American
free German press
in zones occu¬
. The
applause
from
Congressman Rankin1 (D.after
Gov¬ Miss.), who urged President! Tru¬
in Britain has passed,
Mr. Minor said the move to liqui¬
emergency
date
he
when he t did not
or
could not disclose spe¬
information,;.
Associated
advices from
Washington
so
Associated
titute.
that
and
questions
say
plans to inactivate the British
War Relief Society, founded in
of
a
|
Policy |
To Be Truman
cific
National War Fund.
Relations Section
the American
zone
will be
in
the issuance of
solely on the basis of military se¬
communiques, general rela¬
curity.
with the world press, mPublic
deal
the
before
hearings
(Earlier
House
to
Fullest News Flow
is
ica
specific assist¬
to business.
"Business,
so
the
Propaganda Ministry of the
Goebbels and the estab¬
lishment
Jhe economic division, which will
deal
the
Germany,
ahead
for
Navy,
and
neared the million mark with the
will turn instead to
or
governmental
long-run post¬
economy,
the
department
provide general economic
program., on
including newspapers, advantages that might be secured
radio, magazines and other pub¬ from the temporary inability of
lications and motion pictures. It
supply to satisfy all immediate
will deal with the dissolution of
demand."
The
lie
concessions
with
Germany,
public in¬
public relations.
casualties
The
power,
notorious
reporting of political intelligence,
from
and more than 8,000
camps
Army
he. said,
will undoubtedly depend whether
Britain,
probably
followed
by
France, and all the countries of
Latin America will go along in
the next few years in expanding
world trade by reciprocal tariff
Taft
can
directly to to be
guided in its reconversion
General Clay are the two sections
policies with respect to the mar¬
vise
railway, road and inland dealing with control of public in¬
keting of increased production of
water transportation
systems, and, formation and public relations. consumers goods by considera¬
With the naval
The former section will control
division, handle
tions of long-run economic sta¬
port and coastal operations.
1
> all forms of public expression in
bility, rather than the short-lived
tect
this
obtain
can
facilitate the
reconversion process by releasing
of
all
Ameri¬
released
have returned to this country.
merely for trade purposes.
On whether the Administration
responsibility
forces, and
Germany.
domestic
and
War
80,000
to
been
in all theatres
Administration
last
organizations and practices.
with
with
the
the
returned
follows:
Killed,
175,168
and
170,407;.
before the closing session of the
wounded,
53-3,029
and
520,1208;
Committee hearings, denied that
missing, 74,304 and 80,364; prisoni
the
expansion provision in the
ers,
82,208 ;• and 77,110.
Of the
pending legislation was included
the
"During this period the Gov¬
ernment agencies which have the
vide
The political division will deal
prison
with
add
ing the groundwork for the nor¬
mal growth of democratic labor
(ground), naval ahd air—will deal
The transport division will reg¬
ulate traffic
movements, super¬
trade
the
70,000
have
cans
>
of
already
duty.
Some
agencies which must be consulted
before new trade agreements can
be made by the State Department.
Charles P. Taft, Director of the
State Department's Office of War¬
time Economic Affairs, who was
in
crease
slave la¬
To
3.
fundamental
Government
labor
the
to
Fortunately,
half
about
have
wounded
the
authorizes.
that
150,000 killed.
added,
Department to the list of Federal
that
ment,
which
reductions
policy
of
period because of the reduc¬
tion of over-time, the shrinkage
of
ing
he.
•
and
required except for the
be
in
agreement).
new
casualties for the Army
all forces and for all fronts
the
war
against
Germany
in
among
Czechoslovakia,
Germany
in¬
vaded that country, shall not be
reinstated
(although it contains
no
prohibition on negotiation of
a
end
with
Mr. Stimson estimated that the
cost
terminated "when
;; "Although the flow of income
f
of April to¬
88,225 killed,
365,320 wounded and 58,568 miss¬
emergency
encourage
provide
last
eliminations; would total about 800,000, includ-
or
metals
the
the
on
D-Day
wartime
over
disarmament of
which
this
torious Nazi Labor
Three military divisions—Army
demobilization
period
will tend to be downward during
information.
charged
to
To
2.
priority.
either as
wartime
reductions
centage
suddenly either the anti-inflation
controls
or
those
designed to
make certain that war require¬
ments continue to be accorded top
policies, housing and labor
This division will be
labor
That
agreement
care
^
% ->,
512.113,
losses
from
ing and taken prisoner.
import of
materials
shall not be considered in making
any of jthe new * reciprocal per¬
will, in general, be the same
it has been during the past
wartime
Division will
Man-Power
The
will
armed
production
The situation
"It follows that
gram.
low:
the
an
upon
of the current
revisions
the Prisoners of
War and Displaced Persons Di¬
vision.
Millions of citizens of
United Nations have been held
possible.
until
taled
.
1.
force
Front
June
1;
ap¬
perfecting amend¬
ments, as given in the New York
"Times," were:
•
:
measure
less
will be faced by
as
Ground
Western
three
designed
demand
tionary
will also, under General Clay's
own
field.
However, an over-all
supervision, carry out policies in
Intelligence Section, answerable
the United States' zone.
:
\'"" t
directly to
General Clay, will
Names of the 12 divisions in
maintain general supervision over
the United States group and a
the'entire
de-Nazification pro¬
description of their functions fol¬
German
The
strategic
three
One of the most difficult tasks
speedily
ground forces there were
casualties, including 5,324
killed, 25,407 wounded and 3,867
missing.
34,598
than
Jan.
of
of
the
among
President to
level
the
through
April, according to the As¬
Press from Washington,
May 10. ;
During
the
month
of
April
1948,
12,
casualties
has
report
sociated
Trade
more
following
end of
proximately 75% below the sched¬
ag¬
as
Division will give le¬
borers,
and these must all
cared
for
and
repatriated
below
50%
June
the
tariff rates not
reduce
face
gal advice to the commander and
other divisions, will have juris¬
diction over prosecution of war
criminals, and exercise proper
controls
over
Allied
military
courts and German ordinary and
military hostages or as
until
or
authorize
would
agencies and impor¬ that are
industries of Nazis
mentary, and by meeting the more
will be shared by every division,
important, before the less impor¬
whole,
each supervising this work in its
tant.
civilian
requirements.
It
matters
council
years,
version
itself with
Germany,
American
Agreements Act for another three
partial relaxation of some of the
in
the
extends
of War Stimson
the
released
Hawley-
The pending meas¬
which
ure
on
will
prisoner
below the
the
which the full reduction has been
required goods.
in the initial phase of the recon¬
divi¬
military courts, and prisons.
in
1930, the re¬
sult being that trade agreements
have been made affecting nearly
50%
of
American
imports on
V-E
police.
The Legal
West
Point graduate, was deputy direc¬
tor for war programs of the Office
General Clay,v 48-year-old
imposed
1945; which would amount to
Nevertheless,
promoting
U. S. Casualties
Secretary
Smoot Tariff Act of
Press.
between
of
public safety,
of civil police
concern
ac¬
elimination of the dreaded secret
States zone.
the United
will
interval
diminish.
excess
forces, public health and welfare,
division
rates
the econ¬
omy, including the requirements
of Government, considerably in
post,
telephone and telegraph,
whole. Gen¬ military communications, civil
service and local government, ed¬
as deputy military gov¬
ucation and religious affairs. The
Germany, will also act
for
ernor
Associated
the
the
gregate
fecting Germany as a
eral Clay,
business,"
balance there will still be
sion will supervise
as
dent to cut tariffs 50%
tariff
be the Internal Affairs and Com¬
Division.
to
means
——-
sponsorship of the then
Secretary of State Cordell Hull,
the Act
empowered the Presi¬
will
uments, fine arts and archives.
A most important division will
munications
spe¬
of
■:
the
der
ules of the Tariff Act of 1930.
handle
as
as
a
Originally enacted in 1934 un-<S>
Day and V-J. Day, the pressure
upon
the general economy will
ease
by reason of the fact that
the economic resources required
for the prosecution of the war
property con¬
trol and the supervision of mon¬
as
well
as
as
4v1''.'■'••V';
post-war trade.
Mr. Wallace went on to say:
vise, so far as the American zone
is concerned, the execution of the
policies agreed upon in the con¬
trol council, dealing with the vital
activities suggested by its title,
rep¬
assistance
cording to
ex¬
accounts
The Reparation, Deliveries and
Restitution Division will super¬
Gen¬
"provide general
con¬
financial institutions, foreign
currency,
matters
economic counsel
public finance and deal with
change,
that the Commerce
would in all recon¬
Asserting
Department
first
Administration in its efforts to lower tariffs
provided for.
liberated
given
are
problems of reconver¬
sion," an Associated Press report
from Washington states on May
forced to exert
that
Nations
consideration
gram
on
Germans
also
French allies in put¬
powers will be represented.
eral Eisenhower will be the
division Will
all efforts to feed
British,
working with their
been
Russian and
ordering agencies of the
department
to
"take
positive
steps to provide business and in¬
dustry with its many aids and
services essential in meeting the
and requirements and allocations.
This
in¬
to peace,
ternal and foreign trade, indus¬
try, conversion and liquidation,
V;
indicated his
Department an effective instru¬
ment in aiding the changeover in
the. national economy from war
organizational plans 3>
agriculture and forestry, fuel arid
for the military government of
mining, price control and ration¬
Germany were disclosed today by
ing, public works and utilities, in¬
the Hon. Henry L. Stimson, Sec¬
of War.
has
House Ways and Means Committee has approved a threeextension and expansion of the Reciprocal Trade Agreements
Act with the three perfecting amendments, it was reported from
Washington by the Associated Press, May 16. This is a victory for the
tention of making the Commerce
American
retary
of Commerce Henry
Wallace
The
year
pied
by the
President's
man
to
United States.;
stand
won
abolish OWI.
:iU-
'
CHRONICLE
THE COMMERCIAL & FINANCIAL
:2314
?i(
}*
Thursday, May 24, 1945
i
Experts Recommend Immediate Tax Changes
il
i
m!
c
■ftl
production.
The in¬
crease of
the specific exemption
to $25,000 would, in addition, re¬
duce the repressive effect of the
excess-profits tax upon smaller
corporations.
With this change,
a
large number of smaller cor¬
porations would be freed from lia¬
bility under the excess-profits tax
peacetime
,r*4
?
ii'
\
1
4
'
tracts
are
back or when they
cut
begin to liquidate their war busi¬
ness.
Declining revenues will be
accompanied by a continued high
level of payments for the deferred
items, and for some firms the fi¬
nancial strain may be quite severe.
cess-profits tax liability/ For the
j
'
1944, when the specific ex¬
year
emption was increased to $10,000,
it has
been estimated -that the
corporations liable for.
excess-profits tax,; was re¬
duced by about 17,000, to a total
of 51,000.
S
^
It has been estimated that; for
number of
the
-
the
taxable
1946, the-presi-
year
companies ent exemption of $10,000;apt>roxiwill mately 31,000 corporations; wouldbe
liable for exces-prbfits £ta*.
clearly be strained during the re¬
corporations still subject to this
If the specific exemption were in¬
conversion period, there are oth¬
tax would
be substantially re^
creased to $25,000, ;■ as t prbposedf
ers whose position, though appar¬
duced.
■.
vVi
this number would be reduced by
ently good at present, may deteri¬
It is not recommended that ex¬
an
estimated 12;000 "to a total of
orate as a result of losses from the
isting tax rates be reduced at the
about 19,000.
Thus, the proposed
liquidation of inventories and dis¬
increase in the specific exemp¬
present time. This position is sup¬
position of other assets.
tion would be -expected- to free
ported on the following grounds:
A major purpose of the pro¬
1. Federal expenditures can be
from liability under the excessposals presented in this report is
expected to remain at a high level
profits tax about one-third to oneto improve the cash position
of
after victory in Europe, and thus
half of all corporations otherwise
business by advancing the time
the need for revenue will not be
subject to the tax.
of payment of post-war tax re¬
greatly lessened.
With the war funds and credits.
This will re¬ 4. Revenue effects.
continuing on one front, it has duce the
danger that reconversion
It has been estimated that the
been estimated that the Federal
might be impeded by shortages of taxable year 1946 an increase in
Government will spend for war
cash.
It is true that not all busi¬
the specific exemption from $10,"alone at the annual rate of about
the
and
'
increases" in assets, a
temporary
serious problem may be presented
for some firms when their con¬
reconversion and readjustment to
i
*
•*
(Continued from first page)
burden
for
addition
In
the
to
position
financial
whose
smaller
the
.
_
"
'
1M
•h'
will need these funds dur¬
nesses
$70 billions.
•>;
.will
be
serious general
any
ing reconversion.
However,
distinguish those firms which
there
O/ 2. It appears unlikely that
..<*S
un¬
to
do
not need cash from those which do
employment during the period of would
present a serious and un¬
This period can
necessary administrative problem.
be expected to be one of reason-,
The Committee does not believe
•ably full employment, since the that the release of cash in some
pent-up demand for goods and cases where it is not needed, or
.services is expected to offset the
before it is needed, would lead to
anticipated cut-back in war pro¬ serious
consequences.
The system
duction.
Such unemployment as
of priority and price controls and
may exist will largely be caused
other related measures should ef¬
by unavoidable delays in the re¬
fectively mitigate the effect of any
conversion of plants to peacetime
increase of inflationary pressures
production.
It is likely to be that
might result from additions
-limited to a few areas in which
to existing cash balances.
;
,large cut-backs in war production
HI.
Increase in Excess-Profits
;\vill be made. General tax reduc¬
tions could do little to help these
Tax Specific Exemption
;the Pacific war.
H!
■P
■
■•"il
:<v
000
to
reduction
in
liabilities
Since
of
excess-profits tax
$300 millions.
thus
I
I
$
I >i!
■'V
isolated
,
....
3. Inflation will
continue
to
-
1. Past
be
Pacific
Tax
war.
The
reductions, at
.this time might be an important
factor in starting a runaway in¬
flation, since they might increase
the demand for civilian goods and
services which is already in ex¬
limited
of
cess
thermore, tax
might weaken
inflationary controls.
4. The
called
armed
to
upon
and economic
other
forces
millions,
total
income
and
the
from
II.
personal
modified.
tial part of
hardships.
tion
The Cash and Working Capital
Position of Business
'if
1940, effective for taxable
beginning after 1939.
Its
was to recapture a sub¬
stantial part of the increased prof¬
its resulting directly or indirectly
purpose
source
The
Various studies of the financial
condition
;!
have
'
i
of
American
indicated
tax
of
has
an essen¬
and
important
an
V
revenue.
1940
act
provided for
-
the
taxation
of excess profits, after a
$5,000 specific exemption, at grad¬
uated rates. In 1941 the graduated
business
large
then
the wartime stabiliza¬
program
¥
'A
The
been and continues to be
V'1./
.<
en¬
increases
during the
rates were increased. In 1942, this
war period in the ag¬
gregate amount of cash and in the structure of rates was replaced by
net
working capital of business
enterprises as a whole. They in¬
dicate that business, in the
aggre¬
gate, is in good financial condi¬
a
flat
90%
tax
on
profits,
excess
with provision for a post-war re¬
fund of 10% of the tax, and an
over-all
income
and
excess-prof¬
tion to face the problems of tran¬
sition to peacetime
its
ever,
to
rate
of
quent years, and the specific ex¬
emption was increased to $10,000.
companies which have ex¬
panded in response to war needs
many
without
2.
an
adequate
base
of
working capital. Many such com¬
panies,
especially smaller com¬
have
panies,
of
i
cts
long-term
securities
has
been
because
highly
of
lack
be-
their prod-
uncertain,
of
to
access
capital markets.
Substantial
i.ii
111
ji
i 1
parts
the
funds
usee
by such companies for ex¬
pansion during the war have come
from
increases
in
expense
ac¬
cruals, especially Federal incometax
accruals.
Financing through
the
It
i'l
of
medium of unpaid
expenses
accomplished as a result of a
lag of tax payments behind the
is
accrual
of
lag, which
to
a
year
tax
obligations.
This
ranges from 3 months
in the
liabilities,
amount
the
tax
leaves
of funds
business
in cash
or
While
of income-
case
in
which
a
certain
the hands of
may
be
held
such
funds
crued
way
used for other purposes.
temporary use
ultimately needed for
liabilities
of
has
financing
of
ac¬
provided
more
or'
a
less
The
80%
1943
95% for
is
of
raised
act
1944
recommended
taxable
and
in
the
subse¬
specific
|to $25T)00.
-
This suggestion is in-
corporate
excess-profits taxes.
ing to the Post-War Credit
1.
The present situation.
Under present
which
law, corporations
excess-profits
pay
credited with
are
taxes
amount gen¬
an
erally equal to 10% of the excessprofits tax.
This credit may be
the
currently
of
debt
net
that
extent
the
to
extent of
retirement.
the
credit
To
is
not
taken
currently, bonds are issued
the Government to the tax¬
by
These bonds bear
payer.
est.
til
They
after
ties.
They
maturity
United
three
of
months'
for
six
to
ma¬
years
hostilities, the
depending upon
which
if the
bonds
1946,
the
of
time
year
of
redeemed, they
from, two
example,
in
option
on
cessation
length
the
the
If not
un¬
hostili¬
of
redeemable before
are
at
in
after
cessation
States
notice.
ture
non-negotiable
are
the
inter¬
no
issued.
For
should
war
based
end
19421
on
/cre^
and
.subsequent\years. would, in¬
volve
«
serious;; administrative
no
mechanical difficulties.
or
could
of
1945
until
would
taxes
December
31,
not
mature
post-war credits, namely, to
for
pro¬
fund that will be available
a
the conversion
facilities
after
time demands.
the
of
production
to
war
peace¬
A corporation now
negotiate
to
after
Even
then
The
lions
would
be
not
all
of
its
bonds
immediately available.
Bonds to be issued with respect to
last year prior to the end of
the
year
had been
the
a large number
corporatioris from
liability under the excess-profits
tax; and (b) reduce the burden on
those corporations still
subject to
the tax, the reduction
being rela¬
tively
more
important
for
the
smaller corporations.
3. Number
of corporations freed
from the excess-profits tax.
For the txable year
1943, when
the
specific
exemption
was
$5,-
000, approximately 68,000
corpo¬
rations filed returns
showing ex-
applicable
about
at
$710
occur, gen¬
year.
Thus, if victory in
the Pacific should come in
1946,
a
taxpayer could not depend on
using his 1945 bonds to provide
necessary capital during 1946.
v
is the
It
the
To
(a) the post-war credit of 10% of
excess-profits taxes be taken
'
"
I-
The
Carry-Backs "
need
unused
credit
cannot
be
The
until
arises;
for
arising from
claim
cannot
be
close
made
of
the
of
amount
termined.
or
the
unused,
example,
until
loss
a
loss in 1945;
a
after
the.
when
year,
the
claim
after
in-which the loss
year
the
arises.
filed
the
has been
de¬
Moreover,
following
the
claim, many
filing
of
are
usually required for
auditing the returns for all years
affected
and
maturity
date
of
before
nally
for
made.
In
a
the
be
can
the
post-war period,
tiable
reviewing
refund
a
fi¬
immediate
than
more
or¬
den
law.
It would
administrative
problems
years.
date earlier
a
reduce
by
eliminating
by
than
that
payments,
or
the
renegotiation.
bonds
Also,
non-interest
are
bearing,
it would
prevent
the
bonds, from being sold at a dis¬
count at the time they were made
negotiable. It has been indicated
the
to
After cut-backs of
the
necessity of
canceling or issuing bonds with
each change in tax liabilities re¬
sulting from deficiencies, over¬
since
Committee
tion.
income
and
may at the
large reconver¬
expenditures, with resulting
time
same
sion
losses
credits.
payments
crued
on
income
on
preceding
satisfactorily.
ency
estimated
bonds issued
respect
or
net
to be
of
amount
issued with
to
post-war
credits
is
$480 millions for 1942 2 and $820
for
$1.3
1943; 2
billions
or
total
a
for
the
of
two
years.
putting
vanced
into
effect
maturity
the
date,
ad¬
bonds
had
be
but
already
been
yet issued would
by cash payments in
lieu of bonds.
5.
changes
of the
in
the
proposed
post-war
-
Current
war
availability of the
credit.
—
Suppose that
X
corporation reported a total ex¬
cess-profits tax liability for 1944
of $40,000 and a post-war credit
of $4,000.
On March 15, June 15,
and
some
of the proposed legislation its
would
on
account
taxes
be
due
reduced
of
excess-
Dec.
on
15
from
S10,000
being the
amount of its post-war credit for
to $6,000, the difference
.
Advance
in
the
maturity
date of post-war bonds.—Suppose
that the X corporation had re¬
ported
despite the fact
unused credit will
or
the financial solv¬
cases
of the firm
gered
may be endan¬
its planned level of pro¬
or
duction
sharply curtailed.
desirable, therefore, tc
change the refund procedure so
that a" taxpayer may obtain the
benefits of the carry-backs in the
period
when
they
are
most
It
is
needed.
2.
Proposed plan.
To
the
speed
that
so
operation of
the
up
carry-back refund procedure,,
taxpayers
benefits
of
have the
may
currently improved
cash position for reconversion, the
a
plan is recommended:
(1) deferment of current tax pay¬
ments
the
on
anticipated
(2)
basis of
prompt payment of refund claims
filed
and
paid
excess-profits
taxes for 1942 and 1943 of
$30,000
after
credit
the
loss
unused
or
has occurred.
The
■i
first
deferment
part
of
of the plan, the
tax
current
pay¬
ments, would operate as follows:
Sept. 15, 1945, it would have
paid an aggregate of $30,000 of
this total liability. With the pass¬
profits
ac¬
the
losses and unused credits; and
credit.
(a)
in
following
Illustration
post
liability
ultimately result in tax refunds.
In
issued
not
satisfied
that the loss
.
earned
These tax liabili¬
year.
ties must be met
The
this
To
liquid assets will be add¬
on
tax
have
unused
or
drain
ed
produc¬
will have
war
businesses
many
reduced
by those re¬
sponsible for the fiscal operations
of the Treasury that this change
of
maturity could
be
managed
tified
result because
may
the
heavy administrative bur¬
imposed by the numerous ad¬
justments in returns for the war
at
provided
now
dinary delay
(a)
A
corporate-
anticipating
credit
could,
taxpayer^
unused,
or
current
the
submission
upon
appropriate
defer
loss
a
for
year
of
an
statement, elect to
payments of
the
preced¬
ing year's taxes, the amount de^
ferred not exceeding the antici¬
pated refund that would result
from the carry-back of the lpss
unused credit.
or
(b)
In
the
.
statement
the taxpayer would be
to set forth reasonable
for
filed,
required
grounds
anticipating the loss or un¬
However, once thp
in each year, for which it had re¬
used credit.
rently with respect to tax liabili¬
ceived bonds of
statement
ties of 1944 and subsequent years
and "(b) the maturity date Tor out¬
ing its
been
standing
would be entitled to cash
post-war
be advanced to Jan.
refund
cur¬
bonds
1, 1946.
In this way, the maturity date
after
S6,0C0
$6,000 represent¬
post-war credits.
On or
Jan. 1. 1946, the taxpayer
in
also
1941
1942.
fiscal
years
:
ending
bonds
cor
previously
the
re-
returns
for
fiscal
years
end¬
ing from July 1 of the year indicated
through June 30 of the succeeding year.
in
filed,
part
cr
had
had
taxpayer evi-
proper form
and a receipt
been issued to the
3 This
the
proposal
neeessarilj
relates
der
2 Includes
1 Includes
after June 30,
»
-<
Speeding Up Refunds From
of
(b)
post-war credits
fully available when they are need¬
ed. the Committee proposes that:
V.
the post-war bonds would be pre¬
ferable to making the bonds nego¬
Proposed adiustmcnU
P S C' aciP(Stmentsmake the
ment..
claim
Committee's view that
advance
1944.
2
re¬
alized, through the cashing of its
bonds, $1,000 of the overassess-
months
4, Advancing the maturity date of
lowing
The in¬
amount
millions.
payment
exemption,
liabilities has
about $830 mil¬
liabilities
erally, before Dec. 15 of the fol¬
This would not
would have already
company
credit
1944
to
and
1945
sary to continue the
would (a) remove
of these smaller
cur¬
of
been estimated at
age
many small corporations.
crease
in
specific
taken
be
cases.
amount
made.
especially burdensome for
be
post-war credit
(after credit for debt retirement)
victory in the Pacific.
profits tax for that
be
should
rently in all
enterprises dur¬
ing the period when it is neces¬
to
would
years
credit
war
of its bonds
any
refund of
,
designed
indicate clearly that the post¬
quent
facing reconversion would not be
able to
a
¬
which
vide
excess
*
would be payable in full on Jan. 1,
1946. Bonds which had been cer¬
for
total
of speeding up're¬
funds from carry-backs.
paid their total tax liability
Under existing law, refunds
at the
time of filing their re¬
of
taxes1 resulting from the
turns, it would be necessary to
carry¬
refund the amount representing back of net operating losses and
the post-war credit included in .unused excess^profits credits can
not be made until a
the prior tax payment.
considerable
The re¬
length of time after the loss or
turn forms for 1945 and subse¬
case
that the present law fails to meet
purposes
-its
would be entitled to
amount
adequately
of the principal
the
allowance
of
that
profits tax liability for the vear
1943 was $20,000 instead
of the
$30,000
reported
and> paid
it
post-war credit.
In the
of
the
corporations which
In
one
disclose
had
1951.
It is the view of the Committee
tax liabili¬
1943.
If, after
1, 1946/ an audit of the X
corporation's 1943 return should
became effective
reduced by the
be
about
on
of
and
Jan.
the
millions
bonds based
tenc*ed to provide incentives and
excess-profits
tax.
Experience with the excessprofits tax has shown that it tends
Quar¬
terly tax instalments on 1944 lia¬
bilities
not
paid
at.. the
time
the amendment
ember
1948, and
account
1942
$9,000. The refund would be $9-.
;against the tax liabilities of 1944 .000 instead of $10,000 because
the
taxes would not mature until Dec¬
31,
on
ties for
currently
available
war
to
of small and
new
The, proposal to make the post¬
Provisions Relat¬
Changes in
hostilities could not be issued un¬
til full payment of the excess-
additional cash for the expansion
i
^
credit.
war
v
•o;
ceived
years
post-war bonds.
IV.
until
that
begin¬
ning with 1946 the specific ex¬
emption be increased from $10,000
fi¬
to
to
of
Proposed increase
exemption.
It
through the
of demand for
cause
or
unable
their expansion
nance
sale
been
limit
income.
activity. How¬
aggregate figures tend
obscure the financial
position
tax
$160
of the
than 2%
less
or
revenue
about
be
four
to
of 1943 bonds.
case
to
would
revenue
tax
of 1942 bonds
case
three
Current availability of the post-
of
40%
was
years
credits
still
are
endure
excess-profits tax
acted in
in the
3.
the
least
at
applicable
taken
being made for defense purposes.
our entry into the war, the
rates were increased sharply and
v
;
excess-
With
anti-
>
the
from the large expenditures
production. Fur¬
reductions at this
time
in
changes
profits tax.
danger during the period of the
a
if
If-
areas.
released
and
least two to three
by at
in
years
ad¬
bonds k would ' be
these
•
liability
would become subject to the nor¬
mal tax and surtax, the net loss
excess-profits
"
I
a
about
income
the
from
in
would result
$25,000
of
vanced
uals
only to corporate taxpayers.
Un
the Current lax Payment Art individ,
are
bence.
on
n
already
estimated
eu: rent
p&v
income
payment
taxes"
for the
besis and
the
tesis
current
year.
on
o
THE COMMERCIAL & FINANCIAL CHRONICLE
161.-' > Number 4388
Volume
anting the filing,. the tax deAnient would - become imme5jqtely effective without^any
idrior exarnibatmm by theOov.ernment ^of Hhe merits of the
:
C
■m
payer,
Commissioner of In-
The
type of control is esUnder" the plan, the Cbm--
some
sential,
powered, but not required, to
famine the statement-Should
he find it
to be patently ^n"fminded on the; ultimate collect
tion of the tax to be mVjeopiardy,- the;> defermeht would he
missioner
but not
would
be
required, to examine de¬
clearly
plan
provides-
a
penalty
deferred
before the defer-
excess of
amounts
ments
5.
Interest
per annum.v Defer¬
not in excess of the ulti-
on
'
at 6%
'
ments.
Under
deferred
:
"
the
a
would
ascertained.
However,
the - penalty would
not apply to: excessive-defer¬
ments which are adjusted by
ultimately
.fund
the
♦The second part
prompt payment
procedure
Since
follows:
After the. close
in which a loss or
been
had
credit
unused
incurred, the
plan
resulting: refund
after the date of filing
claim for
on
or
funds., should
♦
A
that year.
^ (b) At. the„ election of the
taxpayer, a pre-audit f net re¬
fund would be
made available
filing
lot.the claim. In the case . of d
corporate taxpayer which had
deferred tax payments I in /an¬
ticipation of the refund, this
within. .90 days from .the
refund
would
reduced
be
make
to
the
the return for
alternative
to
use
not be
of
to
will depend
of net
op¬
largely
upon
the fu¬
ture
pattern of business earnings.
It "is 'not pbssible to estimate ac¬
refunds
would
which
It has been' es¬
resulting
from
losses
re¬
and
unused credits for 1945 and 1946
of.
deferment.
amount
billion.
prior to the filing of
On the
other hand, the suggested interest
charge on proper deferments is
not high enough to
discourage
taxpayers in real need of funds.
tax
upon
it
would>
to
$1
speed-up procedure, but the
proportion
act
mated.^....
-
be
cannot
The
1.
proposal.
^
/<
existing law
Under
allowance rather than
lowance
as
at
involved.
are
necessar¬
Since
speed is of
mistakes and abuses
may occur and revenue may be
lost in some cases.
However, it
the essence,
'is not believed
that
the
revenue
losses involved would be large in
proportion to the total amounts
properly allowable,
as
compared
with
or
the
excessive
over-all
benefits to be derived.
the -not
amount of a refund claimed after
the end of a year of loss or un¬
used credit would be paid within
90
from the filing of the
Within so short a period*
days
claim;
over
a
>
safeguard, the
Commissioner should be empow¬
As
minimum
a
may
be
amor¬
for tax de¬
would be given the
responsibility
l?r a reasonable determination of
is
to be
left with the tax¬
excise
ered
to
recover,
upon
notice and
demand, any refund subsequently
determined on audit to have been
erroneous.
In the event a refund
is ultimately
promptly as
same position as
as
in
possible to the
though; the claim
audited prior to pay¬
usual manner and
been
had
resulting from
of
the
disallowed.,
in
4 Internal
no
seek
they
Revenue
r
Code, sec. 3771 (c).
paid
had
which
excess-profits
about $480
ing of the emergency
speeded up.
period be
millions
To carry
out this proposal, it is
recommended that claims for re-^
•i
claim on the basis
claims and re¬
These allowances would be
of the
due to
recomputation.
statement accusing the
Housing Adminf-
a -
,
Public
of
istration
"high-handed
a
at4-
tempt" to put through at taxpay¬
ers' expense a project "which is
not needed in the war effort and
has
with • it,"- the
exception to
connection
no
Ford Motor Co. took
$3,500,000 Government housing
a
in the
plan
area
of the Willow
plants, the
reported from
Run and River Rouge
Press
Associated
continued:
Detroit, May 15,-and
Federal
v
A,
Ernest
Judge
r
granted the
possession
of 100 acres of Ford property for
the -project.
It was the second
time the Government had taken
over
company-owned
land for
housing under the War Powers
O'Brien
-
yesterday
Government immediate
Act.
!
-
.
construct
to
plans
FHA
The
unrestricted,
temporary
housing units.
Ultimately 72 ad¬
ditional acres may be included.
1,410
Calling attention to cutbacks
war
in
production, the company said
that
"unless
we
have been badly
Willow-Run
the
misinformed"
bomber
"daily"; layoffs are being made at
Rouge.
"The FPHA is the same
v
4.
Speed-up of carry-back re¬
would result in -defer¬
of tax payments due in
and 1946 and refunds dur-
funds
the taxpayer's
;
In
,
Federal
ties.
'
of
and
paid in from two to four
years after cessation of hostili-
on
filing
tax¬
be
account of recomputation
of amortization allowances be al¬
lowed -within 90 days from the
fund
(54,000
1942
for
payers) and about $820 millions
/! for
1943
(68,000
taxpayers).
These amounts would otherwise
ments
1945
ing 1946 and 1947
!
1 to
"the
1945
I
'
in
with respect
1943, 1944, and
amount of perhaps
years
an
$1 billion.
These refunds would
probably be paid over
indefinite period from 1947
otherwise
'
an
:
to
1950.
/
.
of refunds due
recomputations
would result in refunds in 1945
and 1946 of about $1.7 billions
5.
1
to
!
J
Speed-up
amortization
resulting
,
were
post-war
taxes for those years
The
paid, many would
deferment even though
on Jan. 1, 1946,
bonds issued for
the years 1942 and 1943 would
make available to corporations
Maturity
3.
of
issuance of non¬
for
the
estimated accurately
be
this time.
at
from end¬
turns.:
would be
the
specific
necessity certificates or
found not to -be due,
provision would restore the
Commissioner and the taxpayer
this
cannot
tax,
Ford Protests FHA
exemption)
would extend to 19,000 taxpay¬
ers
in 1947, but the
amount
;
income
and the estate
individual
taxes,
gift 1axes.
'
recommended that refunds
Assuming that the issuance of
immediate need of
Jhe amount of tax deferment. If cash.* However, if such taxpay¬ certificates of necessity continues
at the current monthly rate for
_he Commissioner of Internal Revers know that a refund is avail¬
nue were
the remainder of this year and as¬
required to assume re¬
able within 90 days from the fil¬
sponsibility in this matter, the ing of a claim, the deferment pro¬ suming Dec. 31, 1945, to be the
™V/equired for investigation cedure would not force itself upon average cut-off date for purposes
would
of recomputation of amortization
greatly delay the defer¬
them, Moreover, the prompt pay¬
ment.
ment of refunds would aid busi- allowances, it has been estimated
^e determination of elig¬
that the increased allowances for
ibility
the
/structure
in
would
availability (assuming
excess-
with
five-year period.
rent
the
ment
concentrated
The current availability
y increased
with
deal
(including
such
depreciation and treat¬
of corporate dividends); and
\ the post-war credit would in-
sion.
It is
will
matters as.
| in the hands of small corpora¬
tions, many of which would be
entirely relieved from excess2.
Subse¬
profits tax (which the committee
recognizes as a war tax), and
with other phases of the corporate
2 - crease cash balances by reducIf, t:
ihg tax payments in 1945 with
within
that
period,
the emer¬
respect to 1944 liabilities::by
gency is terminated, or a partic¬
about $830 millions and in 1946
ular taxpayer's facilities are cer¬
with respect to 1945 liabilities
tified to; be .no longer necessary
by about $710 millions.
This
for national defense, the taxpayer
cash improvement would bene¬
may elect to have the amortiza¬
fit all corporations paying an
tion
deductions
recomputed on
excess-profits tax, i. e., about
the basis of the' shorter period.
51,000 r making
payments . on
Shortening the period of amorti^
1944 taxes in 1945 and ;45,000
zation
will result in additional
making payments, on 1945 taxes
deductions in the returns previ¬
in 1946.
The benefits of cur-
tized
part of the plan providing subject to recovery on notice and
prompt-refunds will serve to demand if subsequent audit should
eliminate incentive to taxpayers disclose an erroneous allowance.
terment, the taxpayer would be
This procedure is similar to that
required to furnish a statement* to claim deferments of tax solely
because-it would be the only way recommended in the case of prejnder penalties: of perjury,, set- of obtaining a prompt refund. audit " refunds upon carry-back
forth, facts i and ' estimates
claims, and is subject to much the
mowing a reasonable expectation Were taxpayers to be faced with
same • considerations;
that,a specified loss or /unused the choice between a tax defer¬
ment or a possible delay of sev¬
credit would be
2.'Probable amount of increase
incurred./-:'';"-;-r
/Under the plan, the taxpayer eral years/before a refund claim •}
in i■ amortization
deductions
To become
eligible
corporations in
This
liabilities.
This
reports covering later pe¬
profits tax.
there would be no. opportunity fdr
the Bureau of Internal Revenue
to make an audit of the claim.
ment
4., Prevention of excessive tax dey ferment.
'V
would add to the
Committee.
the
by
quent
,
al¬ i
Predic¬
present.
tions and estimates
ily
before
sued
substantial part be
action.
legislative
report is the first of a series on
post-war tax problems to be is¬
.
election of the taxpayer,
notice and demand,
*
emergency
facilities certified as necessary for
national' defense
mediate
$160 millions which would
otherwise be used to meet 1946
tax
Deductions
busi¬
report is con¬
to recommendations for im¬
fined
1947
esti¬
recommenda¬
' VV.;
,
As indicated this
The increase in the speci¬
cash balances of
-
' tization
tions.
benefits to
the
be derived from the
the estimates and as-
fic exemption
loss
would
revenues
with
comparison
tax
ex¬
into
However, it is believed that
net cost would be small in
follows:
1.
of
uncertainties
Government
in
desirable.
on
Taking
payable.
the
uncollectibility,
litiga¬
tion, and similar factors, it is im¬
possible to state what the net cost
riods
Speeding Up Refunds Arising
From Recomputation of Amor,
new
refunds,
through
sumptiorts referred to in this re¬
port, the effects of the proposed
changes on the cash position of
taxpayers may be summarized as
VI.
j'
excess-profits
and
small
becomes
Based
ously filed,* and, - consequently,
will give rise to tax refunds. Un¬
without
der present law, these claims for
•suit.
')■%;:-/''• 7 c#
The time involved would permit refunds must be handled through
3. Risk of revenue losses.
no more than the clerical
opera¬ the usual administrative- proce¬
It is most important to recog¬ tions involved in computing the dure- involving unavoidable delay
nize that in this plan audits of refund on the basis of the taxpay¬ at a time when the taxpayer may
be in need of funds for reconver¬
refund
claims
are' made
after ers' returns and claims filed,
on
otherwise
account
nesses, thus stimulating expan¬
sion and prompt reconversion as
Presumably most of this
be
claimed
under
the
carry-backs do not
valid claim for refund.4
perhaps
would
the
program
amortization
and
back
the
payment of carry¬
the Government will save interest
lessen the repres¬
of
with
for the prompt
be
or
effects
losses
that the amount of
timated
funds
from
result
unused credits.
or
sive
in
increase
The
On .the other hand,
connection
in
but
would
credits
and
also remove
amounts of refunds
curately, the
.
(d) Subsequently, upon audit,
any .additional) r efund
due
would be paid or credited, and
any amount found to have been
erroneously paid would be.Te^
coverable by ' the Government
resulting from the opera¬
erating losses and unused credits
0. Payment of pre-audit refunds.
The
part of the : plan which
(c) This net refund would be
calls for prompt payment of-re¬
computed, without ' audit, >. on
the
basis
of
the
taxpayers' funds provides that, upon the
.
the future tax
tion of the carry-backs
by
^
of
amount
refunds
the amount deferred.
claims and returns.
firms
business
of
debt
its and bonds.
merely advance the date on which
refunds:
The
;;
bear interest
a
liabilities
payment
the
with.-the existing policy that re¬
due
refunds
the
up
with
cred¬
specific exemption under the ex¬
cess-profits tax would not only
improve
the
cash
position
of
smaller corporations., but would
Moreover, the policy of charging
interest ■/ would be
in harmony
funds
of refunds
and Of the post-war credits would
result in the payment of amounts
due .to taxpayers at an
earlier
time than now provided.
Such
early payment of refunds and
credits would. not alter the tax
ing
Potential amount of accelerated
-
encouraged
tax
The proposals for speed¬
purpose.
coincidentaly
the elimination of post-war
bearing
8.
con¬
sources
proposed changes would serve this
necessarily make
payments by
interest
of the increase in interest-
reason
be.
such that firms with easy
are
access
of the
All five
business.
as
will
ernment
additional
the
nected with the operation of the
corporation ; or individual en¬
gaged in business would: file a
the
for
recommendations
of
Government and
loss through un¬
the
by
factors
collectible tax accounts. The Gov¬
available.
interest charge,
needed. The difficulties
Summary
Committee after payment.
strong incentive would exist for
were
tion
priod to audit,
conformity with existing policy
would
require a provision that
such refunds be reported to the
the
of the
In¬
paid
corporate officers to claim -defers
ment whether or not the funds
:
saved
period are designed pri¬
marily to improve the cash posi¬
refund
such
VII.
The effects of the other
changes would be largely in con¬
with
interest
paid
or
'v:;,;;VV
*
*
The
1
amended to elim¬
were
payment:
deferment privilege unless there
real need for- cash. In the,
an
the. present
1946
interim
review by the'Committee prior to
past due taxes (3%).
absence of such
on
proposed speed-up pro¬
reduce
such
"
inate these pre-audit refunds from
were
•a
the,, Joint. Committee
met: .uhiess'
all
half
the
cedures.
payment.. The objecti ve of speedr
ihg .-up /.the refunds tould not b$
charge would dis¬
courage taxpayers from using the
of refund claims,
would operate as
year
of the pldn, the
on
at
1
ternal Revenue Taxation prior to
interest
This
deferment commences.
.which
(a)
usual rate
taxable year in
end of the
interest
bear
'
;
ed to
yay-
ply to the excess. Deferments not
in excess of the ultimate: refund
the tax deferred in excess
125% of the carry-back re-
of
year
i a,tion.
, /
Un4er present' law refunds In
excess of $75,000 must be report¬
-at only
i
(f) In
of
the
\
:
proposed-plan,
mate
:
would/be
tax
-.
in
.
"
.
deferred
7. Review* by, the Joint Committee on Internal Revenue Tax-
in
refund would bear interest deferments of tax
would bear in¬
half this rate (3%).
terest.
If the deferment exceed¬
addition to the interest ed
the ultimate refund, the usual
charge, a flat 6% penalty charge
rate of 6% per annum would ap¬
-would be added to the portion
:
under the
nection
adjusted by the end of
the taxable year in which tax is
,
specific exemption would
the receipts in 1947 (for
tax liabilities) by about $160
the
millions.
are
-
present tax revenues. The increase
potential amount of /re¬
fund which might be accelerated
125% of the carry-back
deferred.
The
billions.
$6.8
be
tion.
would. be
approximately
in
ultimately found to" be
due. To prevent the penalty from
dperatingv too harshly, it would
not apply where excessive defer¬
•
ments
X
with
estimated
be
cannot
any
resulting tax refunds for the re¬
adjusted years have been esti¬
mated at $1.7 billions; This would
refund
expired. ": 'v:
'
(e)
Amounts of deferments
in excess of the ultimate re¬
fund allowed would bear inters
est
of
6%
whole
certainty but they apparently
certified facilities of 1 would not be large in relation to
total cost of
deferment, without the
refund,
would
offer
little improvement in cash posi¬
.'upon
-penalty
flat
'ment
,
7;
through 1945 would
billions, out of a
$2.9
Thus )the
substantially excessive tax defer¬
^Wbuld'be'lohg: enotMt^;
fbt the taxpayer to file a claim
?or refund after dhp year had
ended and to havedt*acted; upon
hv the. Commissioner of Inter¬
nal Revenue
■
to
additional
inadequate
jeopardyh';
amount
of
sharp decline is relatively small.
j Further, as a means of disGOur^
aging- and penalizing unfounded
deferments by the taxpayer, the
ment.; The
-
mav; be
that ultimate collection of the
taxes due is in
the years 1941
decline
the amount of the tax that
nesses,
to believe that the stated basis for
or
earnings
Moderately in one year and sharp4empowered, ;ly in the. next.. For such busi¬
ferment claims and to cancel any
deferment should he have reason
deferment*is
whose
messes*;
2315
■! for
from
overpayments
1941 to 1945,
amount would
taxable years
inclusive.
*
This
refunded over an
indefinite period, with little of
it being paid in 1946 and most
of it from 1947 to 1950.
otherwise be
*
*
; The ultimate revenue
effects of
taken as a
that
.
alphabetical bureau that wanted
to spend millions of dollars on a
Bomber City near Willow Run,"
the statement said.
"There'were
visions
of 200,000
houses,! hos¬
pitals, shopping centers and other
community
buildings.
protests
of the. Tru¬
man
Committee stopped that.
A
similar investigation of thi^ new
housing proposal would result, we
are sure, in a similar result.
;
"The
Ford Motor Co.'s
and the investigation
"The
same
ticipated
dream
are
in-
visionaries wh6 par¬
the
Bomber*; .City
ip this one.
involved
Perhaps the real
purpose' of the
project is retaliation
once
the recommendations,
than
later
"not
will ciose
August,"
and
plant
before stopped
taxnavers' money."
because we
waste of $e
i,
y).
2316
THE COMMERCIAL & FINANCIAL CHRONICLE
Thursday, May
24, 1945
Keynes Contrived International Monetary Scheme
»
"
'
(Continued from first page)
desire to find out just what the
facts
.
......
hegemony
are.
Indeed, in view of Lord Keynes'
he
our
has
already wielded
country, it is incumbent
playing in this movement.
During his frequent and
times
extended
United
States
most welcome
a
in
gravest
some¬
in
policy
of
1933, he
the
the
was
No
depression.
Keynes is,
Lord
of
fiat
sible
of
his
whole
light
strained
be
con¬
in
prices:
see
wish
authoritarian
edict.
Keynes
ries Law
is
The
monetary
advocated Lord
advocates.
The
extent
of
theo¬
within
of
which
he
operated, while
Keynes would perform his
and financial wonders
in nearly every
country on earth,
but
particularly in the United
would abolish
the
a
not
seems
bf made
secure as the
world's financial master.
This he
made clear when in an
address
before
23,
the
House
of
Lords, May
1943, he said:
"So far from
plan endangering the long tra¬
by which most Empire
countries,
and
many
other
too,
have
centered
their financial
systems in Lon¬
don, the plan is, in
my judg¬
indispensable means
maintaining this tradition."
ment,
of
an
Apropos of
Lord
Keynes,
rence,
statement
Mr.
member
Commons,
that
this
in
Pethick-Lawthe House of
of
an
by
address
before
body
May 12, 1943, made
interesting observations re¬
some
specting
this
scheme
when
a
despotism,
Shall it be
dominium?
States and
Shall
the
combine
to
world?
We
United
the
arguments can be
favor of this form
of the
rejoice
the
become
fact.
I
see
am
out
a
Many
adduced
of
in
financial
on
Atlantic may
thought
an
of
quite
Many people
both sides
in
financial
now
facing
possibility.
may
con¬
Empire
are
government.
a
the
and
practicable
what
British
rule
dreamland,
I
that
it
accomplished
not of their number.
many
dangers
in
an
at¬
tempt by the Anglo-Saxon bloc
to
dominate
the financial and
economic life of the rest
of the
world.
It would be certain to
cause
resentment,
failure
of
be laid at
and
•
door."
our
which
he
significantly
"If I may say so without of¬
that great nation
(the
fense,
United
States)
has
learn
much
to
before it can
successfully
benevolently maintain the
April
5,
that
another
post¬
Congressional
of
and
that
proposal
Associated
in
Nations
the
which
he
Stabilization
Statement
of
Fund
to
on
an
Interna¬
Monetary Fund."
Mr.
Morgenthau's
made public
of Lord
plan
was
subsequently to that
Keynes'.
It would appear
certain
that, on its
reasonably
face
the
Experts
of
Establishment
tional
changed
from United and Associated
alone, Lord Keynes did
any
of the provisions of
Clearing Union scheme from
Mr. Morgenthau and his
experts,
as will
be noted in the
following
statement which he made in
a
his
speech before the House of Lords
on May 18,
1943, when he said:
*
"The proposals for
Clearing
•
an
Inter¬
Union
have
been brought before
Parliament
at an early but
not too
early a
stage
of their evolution.
The
procedure adopted is
somewhat
novel.
will
I
hope
approve
innovation, it
be
it
Lordships
your
for, if it is
appears
to
me
an
to
happy one. This paper has
been the
subject of long prepa¬
ration.
To
associate
it
too
closely with a particular name
a
is, I venture to
say, to do it an
injustice. It has been the sub-*
ject of intensive criticism and
progressive
amendment, and the
final result is the
embodiment
of
the
collective
wisdom
of
Whitehall
officials
and
of
experts
throughout
the
and
Com¬
monwealth."
ing
will
as
the course of the
thought
tents
stabiliza¬
reading of Lord Keynes' pro¬
for an
International Clear¬
Union and Mr.
Morgenthau's
first draft
proposal for an inter¬
national stabilization
fund showed
to
others
besides Lord
Keynes
that the basic
provisions in the
two proposals
were
very similar.
This was noted
by such outstandmg authorities as Dr.
Benjamin
M.
Anderson, who said:
"Both
the plans are
British plans," and
into
go
For
our
to
know
existed
and
proposal
for
ditional
noted
to
were
all
device be intended to
that
proposal
our
such
We
item
under
The-
pro-
and
Woods
is
it is fair to
an
tional
United States.
here
to
Treasury officials in promul¬
gating this international mone¬
tary scheme.
•
•■•:</...
That provision reads:
an
that this
means
debts upon
the
*!■,;;
"...
shall
it
(a
of
Board;
.
general
nations,
ances
.
that
so
.
are
.
unnecessary;
.
.
ization
item
Fund
lists
under
as
the
"Purposes
fourth
of
the
".
facilitate
the
effective
utilization of the abnormal for¬
eign balances (first draft) (or)
blocked
ond
foreign balances
draft)
accumulating
countries
some
quence of the
Lord
as
war
a
in
conse¬
situation." V.
Keynes
was
very much
about the blocked bal¬
will be noted
concerned
ances,
(sec¬
as
by re¬
ferring to Article VII, Section 34
of his Clearing Union
Plan.
Just
what
these
are
balances,
The
and
term
ances
who
are
represent
Britain
foreign
owns
foreign bal¬
sterling balances
held
in
debts
to
owes
London
which
her
and
Great
Dominions
Colonies, Egypt, Latin
and
them?
blocked
referred to
which
ican
blocked
Amer¬
Scandinavian countries,
for imports of war
principally
goods.
ferred
These
to
as
balances
"blocked
are
re¬
balances"
because England is unable to
pay
them either in goods or
gold for
fhe
time
being.
The
United
States
has
balances.
no
The
blocked
reference
foreign
which
Lord Keynes makes to these bal¬
ances in the British White
Paper
and
that
which
Mr.
Morgenthau
.
.
titled
to
repeat
the
5%
if
rency
deems
it
.
.
to
value," without the
It
can
".
procedure
it
or
member
be
the
suitable
con¬
this
(b),
the
be
may
Woods
2
places
their
no
curren¬
limit
number
done.
the
on
of
The
times
Bretton
Agreement provides, Fig.
that a country may de¬
preciate
amount
satisfied
its
so
long
that
predicated
currency
on
as
the
the
political
policies.
nothing
else
to
by
any
Fund
depreciation
domestic
Since
provisions,
social
a
is
de¬
preciation on but some disordered
condition of domestic social or
political policies the Bretton Woods
those
of
Lord
of
managed debasement is seen
when it is noted that Mr. Mor¬
genthau's
first
draft
proposal,
published April 6, 1943, made no
provision for permitting members
depreciate
any
their
in
currencies
amount
proval
except with the ap¬
of the Fund.
But in Mr.
Morgenthau's
second
draft,
pub¬
lished
July 10, 1943, three months
the first, he
provided for
permitting individual members to
depreciate their currencies 10%
after
without
the -concurrence
Fund, thus going directly
Lord Keynes' idea.
is
or
there
predicate
is
like
Keynes', open the door to' un¬
limited debasement.
Further proof that Mr. Morgen¬
thau adopted Lord
Keynes' idea
to
provides, Fig. 1
permitting countries to
or
political policies of the
proposing the change."
.' "
depreciate
amount
provided
satisfied, it
so
Board)
Keynes
and
is
object to a proposed
change because of the domestic
cur¬
currency of the Fund.
further
ad¬
an
concur¬
(b)
particular,
(the Fund)
member's
its currency 10% without the
cies
In
.
social
Woods
for
.
it
the
not
Agreement provides,
Fig. 2 (a), that a member country
may depreciate the par value, of
(b),
with
of the Fund.
shall
of the
Governing Board
Clearing Union. The Bret-
Lord
concurrence
depreciate
10%
Fig. 2
currence
ton
(i) (ii), and
(f)--
of the Fund.
en¬
Lord Keynes
provides, Fig. 1
(a), that a country may depreci¬
ate, that is, debase, the value of
its currency 5% without the con¬
of the
5
if it "does not exceed
further 10% of the initial par
a
Governing
(Governing
that
remedy;
loans
"money"
/•currency
with¬
further
value of the
forced
(a)
Sec. 5 (c)
appropriate.
'reduction in
A
from
Sec.
unless the Board is satisfied that
this procedure is
"(b)
cur¬
A member
may depreciate its
(b)
this
to be
or
depreciating
permanent policy.
State)
but it shall not be
.
unstable,
/
rence
Fig. 1
Fund":
"To
a
ditional
."
Mr. Morgenthau in his two
pro¬
posals for an International Stabil¬
derived
Art. IV,
acceptability
between
blocked
bal¬
of
effect of
encouraging i deficit fi¬
nancing, and, in fact;, making this
having
currency
given respectability.
slightest hint given
posal, if adopted, would have the
.
international
con¬
common
member
(8)-(a)>;
exceed
a
as we shall see, instead
encouraging the governments of
."
.
made
with
to
countries ' to put their
financial houses in order, the
pro¬
reduc¬
not
evils
Bretton Woods Agreement
entitled to reduce the
value of its
currency in terms of
bancor provided that the
shall
a
clipping,
had
government printed
one or other form.
be
tion
has
Fig 2
member
coin
and
Keynes' Clearing Union
Art. II, Sec. 6
cur¬
simply
more than1 they collect
paying the difference in
procedure
out the consent of the
:
instrument
no
Fig. 1 (a)
show
our
need
'
is
Indeed,
attempt by devious
unload British
Neverthe¬
explanation of this
given
funds
recent date
say
of
Coin
for
namely, unbalanced na¬
budgets,
governments
in taxes,
the Bret-
the
extraordinary influence Lord
Keynes must have exercised over
"We
to
be
specific,
spending
billion dollars.
Proposal.
brief
a
think
scheme.
State,
greatest
to
causes
rencies,
of
was
proposal,
is not contained in
ton
less,
basic
in
I
is
more
has
12
form
the
five
amount
would
anywhere in the scheme
definitely
looking toward a correction of the
provision for having the
United States assume British for¬
eign debts was severely criticized.
relating to blocked bal¬
dropped from Mr. Mor¬
draft
more
the
the
mankind
in
was
or
This
ances was
third
that
by
There is
British
figure of
a
risen to
"Objects
in the British White
balances."
provision
of
the
practice and
Keynes has
containing" Lord Keynes'
Clearing Union Plan deals with
genthau's
tend,
in
were
showing
Paper
yisiori
which
the
operated
were released
the neighborhood of
four
billion dollars.
Lord
has
given
"blocked
have
first drafts
shall
The "Objects of the Plan"
first
or
foreign debts
involved
in
the
blocked balances.
The amount of
blocked balances held in
London
at the time Mr.
Morgenthau's two
changed this.
Flan"
75%,
practice
giving it legal
status,
to
throughout the ages has
universally condemned as
"of
one
way as to cause the United
to
assume
a
substantial
amount
one
Woods
a
to
been
that
debase¬
currency
in
depreciation,
which
greater portion
assets
of
the
Accordingly,
would
to
basic
rency
con¬
of
what
disguised
would
70%
more.
which
finding has
Bretton
perhaps
States
hardly done more than set up
Lord Keynes' scheme in
legisla¬
challenged.
making
clipping
re-
;
States
the
to
as
the
on
understood
the
ment,
bought by
with
v
lendable
scheme
had
been
the
Fund,
preparing this
Treasury officials
whether
done
accom¬
limit
no
the amount that
may be effected7
Certainly there is no
precedent
for this anomalous
proposal.
Be it clearly
coun¬
Nothing is said
be
to
United
even
in
half years that
is
tribute much
of
were
After about
Fund.
The
ad¬
evidence that there
plishment and
placing
from
blocked
remaining 20%.
draft
furnished
making it easy of
is
what
conceived
intrinsically
legalizing debase¬
ment,
amount
the
in¬
International
an
Fund
showing
The
Britain
purchase
things
stabilize world
currencies when
it
starts out by
of the blocked balances
two
of the
shall
amazing
international
politically
is
sub¬
In .sub¬
it.
the
meek
tries agree to repurchase from the
Fund over a period of years 80%
in
plans but only one plan.
In a speech before the House on
Nov. 1, 1943, I presented a
study
?
of
nt
Com
a
intrinsic stability
How
possibly
sterling
balances which she holds.
Next,
by a complicated arrangement,
purposes
Monetary
a
Fund
Great
discussion, such
Kingsley Wood
Sir
as
be
Mr. Morgenthau's revised
not
part
Politic
Debaseme
Countries
to currency values.
could
this
pro¬
the
only
of
monetary
scheme is that its
American pro
ponents proclaim it to
be a
anism for
giving
a
it
purposes
of
about this
Pur¬
explanation of this
essential
eliminated in
favor of the Lord Keynes plan.
and
posal
to
unnecessary
System
Givinc
ProvX
and
Clearing Union.
°ne
em¬
Hidden
both the debtor and creditor
differences
not
obtain
"Another
as
vision.
lar."
not
10, 1943, Mr. Morgenthau
it
to
the
see
a
revised draft of his
proposal.' ; On April 21;
1944, he made public a re-revised
draft
is
¬
M.
Benjamin
refer
to
to
Similar
Provision in
Lord Keynes'
Proposal for an
International
bal¬
stantial ve
and
was
Dr.
caused
a
.
Provisions
Status
pared to
stance this provision dealing with
blocked
balances
provides
that
tive draft form.
Nations
released
name
international
blocked
detailed
proposal
com¬
previous
every
a
added:
and
title
July
A
people to secure
well-being in the future would
To
States
national
"If
not
shall it be?
of
Stabilization Fund."
he
said:
morning
certain
"Joint
international
an
dition,
countries,
the
1943, seven days after the New
York "Times" article
appeared, a
London broadcast informed the
The
to
.r
must
In
mittees and presented to them the
plan mentioned in the broadcast.
be reticent in
telling us what he
is aiming at.
For one thing, Lon¬
don
may
signing.
29, 1943, the .New
"Times"
"United
aside, he
us
we are
draft
it
It
the
T*
Wods
Managed Currency
By Individual
technical and devious
so
bodying
pose."
be
approach
be¬
scheme (Mr. Mor¬
first
However,
a
with
He
kneel at the
us
may
financial
Secretary of the United States
Treasury.
The
next
day
Mr.
Morgenthau met in secret session
competition, that is
liberty, and make
feet of the State.
Method
Calf."
she
for
us
monetary program had been
prepared by Henry Morgenthau,
competition,
"worshippers of
to
war
States of America.
He calls those who believe in
free market, that is,
Great
that both of
so
March
United
monetary
would
clearing union, prepared by Lord
John Maynard Keynes, Economic
Adviser to the British Exchequer.
be¬
application, not of
Law, however, limited his
monetary and financial thaumaturgy to a single country, that
con¬
carried
a
story
London date line telling of
ambitious plan for a post-war
an
of degree
one
proposition
that
with
The language in this pro
Anderson
of
this
an
to
appear
deal
vision is
two
For
though the method of approach
is different the objectives and
principles, and to a large extent
the practical results are simi¬
international
it
Legal
London.
ances.
der
But in
of
Bretton
credit account to be opened un¬
the
Clearing Union, but
we
interest
the
draft
sterling
tion fund) and the international
the
that
make
what
with
kind.
Lord
to
York
Keynes
difference
tween their ideas is
and
apostle
an
for
pos¬
are
would
genthau's
a
as
believe
other aid
On
Law.
tween
there
whom
war.
this
"There
Britain, as well as the United
States, for her to present face up
or
John
this
'
'
•
between
differences
and
all
well
as
with
best
whatever
Lord
render
we
to
is
'
He said:
plans.
cordial
united in
proposal,
the
free market, but by the
only other
existent mechanism for making
,,
of
monetary
are
her,
countries
geries of monetary theories is that
prices; should not be made in a
namely,
to
have fought in
judg¬
my
to
Nor
we
both
Article III, Section
9, of Mr.
Morgenthau's
first
draft,
and
Article V, Section 8, of his second
*'
>
the
to
held in
Kingsley Wood, a member
of the British Parliament, spokes¬
man for the group
promoting the
scheme in Britain, in addressing
the House of Commons, May 12,
1943, stated what he considered
doing
England
L.iU
relate
differences
most
States.
desire
aid
other
out
us
United
doubt that
sincere
outside' Russia.
money
essence
for
i_
balances
makes in his draft proposals
Sir
desirous than I
the
between
the
ment, the most effective exponent
The
only
more
any
the
in
not
maintain
relations
children
our
is
one
to
am
Government's
descendents bail
sort,
stated:
who
calities."
to
economy as well as ours.
guest of the late
making
and their
of
of
it
tions, but, in the long'run, to her
the
whom he held many
long confer¬
ences.
He is credited with being
father
permitting
far, for, in my opinion, it is
fraught with potentialities of the
President,
Treasury
and
other
high Government officials, with
the
before
Palyi,
two
plans are identical in
almost everything' except techni¬
go too
upon
Melchior
"The
serious damage to our good rela¬
sojourns
since
Dr.
financial
give careful consideration to this
proposal
to find out just what part he is
us
the
Great Britain might do well to
philosophy and the baneful influ¬
ence
of
world."
of
of
the
over
to
Because of the great
importance
bringing out the "truth in re¬
spect of this provision relating to
the
legalizing of currency debase¬
ment, it is deemed desirable to
give
rather
first, from
a
extensive
quotations,
speech made by Lord
-
Number 4388
161
Volume
THE
Fund
Keynes in the House ,of Lords
23, 1944, and second, from a
Litton Woods memorandum re?
Tulv 21/« 1944.
his
in
Keynes,
Lord
proposes
value
sterling
the
Without
certain
pro¬
1
1
"Furthermore,
provides
after
that
having made
changes
the
a
proposal
a
72
are
tions
such
be
must
hours.
Other
no
obtained
with
and
prescribed limita¬
such
authorized
on
changes.
"Stability
does
not
mean
rigidity, and rigidity in the past
has
resulted
in
extreme
bility.
A country
its domestic
that
insta¬
of
y
it
no
of
ourselves who fixconsultation with
the Fund; and
this value is sub¬
by
As
Keynes in an article published in
Lloyds Bank, Ltd., "Monthly Re¬
view," Sept. 9, 1935.
However,
the
any untoward
which
Fund,
the
must
from
there
withhold
provision
mestic
not
approval if our do¬
equilibrium requires it.
"For instead of maintaining
the
"It
of
national
a
should conform to
de
that
should
be
as
will have to
necessary
to
whatever
"To summarize, the Fund at-
j tempts to provide the greatest
degree
of
exchange
stability
policies,
shall
criticism
immune
be
by
the
that is consistent with the
Fund.
nomic
Indeed, it is made the duty of
Fund to approve changes
That
will
is
have
why
proposals
are
I
this
that
say
by
the
ment
They lay
international
of
essence
agree¬
the
new
doctrine, far removed from the
old
orthodoxy.
terms
to
If they do so in
inoffensive as possible
as
the
former
faith,
need
we
complain?"
Certainly from these
of Lord
statements
Keynes there should
be
no
doubt in the mind of
anyone
that the so-called
Bretton Woods
Fund
Proposal
fully
carries
out
the provisions
of
his
Clearing
Union Plan for
legalizing cur¬
rency
debasement
members,
carry
them
debasement
procedure
as
with
a
the
are
the exact
of the
gold standard."
opposite
also makes
for members to welsh on
their international and
na¬
both
tional
debts, for eventually de¬
basement must
bring about both
these results.
To which
of
Lord
cynes, if he wishes to be con¬
sistent, might also say:
"That is why I
say that these
proposals
the
are
exact
oppo¬
site of the
gold standard."
Indeed,
Policy
it
of
was
the
the
announced
Bretton
Woods
onterence to make
currency de-
frnSrv.m5n^
rom time
f^lUn-ts
Jro
was
ln
individual
and
cation July
neacling
suc¬
removal
of
all
those
ex¬
sake
ture
of national
of
acts
as
their
permanent fea¬
a
policy, but
desperation and
are
an
member
10%
ends
or
country
of
more
the
Woods
Mr.
in
draft
and
in
provide
aggregate
the
The
point
is
that
reducing the
gold
value
of
Lord
Keynes'
bancor, or Mr. Morgenthau's uni¬
tas would be
uniform
value
for
draft
the
same
reductions
of
as
in
the
Bretton
currencies
countries
would
of
debts,
since
would
well
as
such
ultimately
debasement
produce
those
Section 5
(b) of HR 2211, the bill
which
us
would
the International
provides that:
Congress
authorizes
nor
law
action,
such
President
by
the
any
to
person
oi
flicted by deflation.''.
Mr.
Morgenthau's
and
Status
mem¬
to
System
and
of
Uniform
elasticity
Giving Legal
Providing for a
Politically
Managed
Debasement
of
All
recommend
fixed order of
a
For
an
Union.
event
Here,
serve
or
our
Treasury officials or other mov¬
ers of this scheme,
even hinting
at placing' a time limit on per-,
mitting members to debase theii
currencies.
Lord
Keynes pro¬
for—"Transitional
vides
arrange¬
ments," and Bretton Woods for a
"Transitional period," neither oJ
which mentions any time limit
More by innuendo
it is made tc
appear to the Congress and public
that
there
is
prospect
of the
transitional period mentioned ir.
to
Keynes'
Proposal
International
shall
on
States
in the
as
by individual countries, giv¬
ing what amounts to legal status
to
universal debasement of
ber
countries
nothing in
Agreement
other members of the
the
basic.
is
mem¬
Woods
and
to
and 4,
Morgenthau
Mr.
mone¬
s
unitas.
tary unit, which he termed
Lord
Under
"hown
have
in
Fig.
on
tion
Keynes'
3,
plan,
bancor
,
as
would
been
7
of
the
The
United
Bretton
States
ternal
debts
Great
debts
Woods
has
no
ex¬
Britain
join in
we
a
she
cannot
meet.
has.
Why should
plan to make it re¬
spectable throughout the world to
repudiate international debts?
[Editor's Note—The second part
of
Congressman
Smith's
article
be
given in the "Chronicle"
May 31, and the concluding in¬
of
stalment will appear in the
issue
of June 7.1
succession, it
present
death
the
or *
law
in
the
inability
to
part of both Presi¬
reported by the Asso¬
was
Mr. Monroney urged that
the
Mr.
that
v-;,..
Monroney
the
study
active
cotton
recommended
In
the
cotton
month
be
bales of
linters,
857,693
bales
opment of the provision here
der
consideration.
.
In
un¬
the
-
"The
III,
Sec.
monetary
Fund shall
1
unit
of the
(UN),
equal in value to 137 1/7 grains
of
gold (equivalent to $10
No change in the gold
fine
U.
S.).
Unitas
the
of
value
to
two
it
re¬
1946.
recommending
Presidential
succes¬
the group also would:
President
is
unable
to
shall
be
made
except with the approval
of 85% of the member votes."
the
per¬
form the duties of his office.
changes in the meth¬
ods of electing Presidents with the
possible abolition of the electoral
.
■•-
both
the
President
on
of
value
the
currencies
of
all
members.
Mr.
the
currencies
of
In
member
countries would have been tied to
and
in
valued
Since unitas
ation,
a
inauguration day.
former Chairman
terms
was
of
unitas.
subject to alter¬
reduction in its gold
tent
would
eral
reduction
have
effected
a
former
and
in
an
National
of
A.
the
Committee
Postmaster
General,
address before the Hazelton.
Pa., Chamber of Commerce,
to
125,707
compared with
and 130,907
in
lint
of
March
and
in April,
nine
the
722
and
111,017
1944.
months
bales
of
linters, compared
7,581,333 bales of lint, and
986,741 bales of linters in the cor¬
responding period
There
lint
rec¬
ommended changes in the present
law of succession.
a
year
ago.
2,187,916 bales of
322,021 bales of linters
were
and
hand
on
in
consuming establish¬
April 30, 1945, which
on
with
compares
2,237,465 bales of
lint and 326,676 bales of linters on
March 31, 1945, and 2,221,530 bales
on
On
at
442,060 bales of linters
April 30, 1944.
hand
in
public storage and
on
April 30, 1945
11,025,514 bales of liht
compresses
there
days earlier, James
Democratic
have been given a gold value.
turn,
Farley,
Morgenthau's unitas would
bales
1945, y
ending
April 30, cotton consumption was
7,286,111 bales of lint and 1,119,-
and
Vice-President be unable to take
office
April,
lint
linters
of lint and
Decide who would be President
should
In
ments
Consider
college.
of
775,617
serve.
only judge of his ability to
the
with
Define Presidential disability—
and decide who shall say whether
Now the President himself is
the Unitas
be
of
order
sion,
Second Draft
Art
addition
and
that
in
amounted
as
of
port to Congress by July 1,
and
of
consumed
vealed in the study of the devel¬
Senators
two
hand and
on
spindles
month of April.":
769,678 bales of lint and
commission
Representatives,
a
House, third in line of
United States, cotton
Vice-President, then the
Secretary of State becomes Chief
Several
above, relate to
international mone¬
tary unit, which he called bancor,
3
national
Fund Agreement."
bales of linters
Union for
1
and
provided in Article IV, Sec¬
as
—
Executive.
tional balances."
Figs.
the
of
dent and
a
Lord Keynes'
to
agree
in-^
ternational
pointees,
of settling interna¬
purpose
United
or..,
world-wide inflation
universal welshing on
and
Washington, May 16.
passed making the Speaker of
be
Under
Perhaps
the Bretton
shows more
and all the
and the United States
agency
the
of
Presi¬
affecting
bales
/
international
bank-money, called (let us say)
bancor, fixed (but not unalter¬
ably) in terms of gold and ac¬
cepted as the equivalent of gold
by the British Commonwealth
or
behalf
composed of four Supreme Court
Justices,
four
Presidential
ap¬
is to establish
Union, here desig¬
on
the
propose
clearly
the servility of our Treasury of¬
ficials in succumbing to the influ¬
ence of Lord Keynes than is re¬
proposal
based
of debase¬
case
Morgenthau's Stabilization Fund,
Currency
an International
Clearing
au¬
action
person
any
Presidential succession.
Clearing
ment
4
nated
Union,
Provi¬
Fig. 4
Art. 1, Sec.
"The
Similar
a
Lord
Fig. 3
Keynes' Clearing Union
such
nor
in Congress by
Representative Mon¬
(D.-Okla.) proposing the creation of a 12-member< commis¬
sion to study all problems
relating to the Presidential chair and to
by
the
in
Sec¬
roney
Bretton
or
par
IV,
.
A bill has been introduced
in
deliberations,
the
Presidential Succession Law Revision
Bretton
Woods Provisions
word have I found by
Keynes,
in
Article
alleviate the unemployment in-
/
sion
Woods
the
any
practical interpretation of
provision would read some¬
will
"Unless
of
approve
.
change
dent
establish
Monetary Fund
.
"Unless Congress by law
also
national
.
unless
thorizes
member
as
behalf
on
etc.
thing like this:
legalize, or at least give respecta¬
bility to, uniform repudiation of
international
may
The
this
par
effect
shall
tion 7;
Woods
all
in
majority
a
power
proportionate
values of the
par
States
values
Agreement.;
'
Legalizing uniform debasement
the
uniform
general
Fund
of
the Fund by
.
United
making
the
,
agency
currencies, as provided
Morgenthau's third
and
the
changes
currencies of all members,"
Mr.
in
uniform
changes in the
Bretton
form changes in the par value of
the
currencies of
all
members.
.
make
respectively,
making uni¬
for
law
Lord
make
pro¬
permit
§ of the total voting
Morgenthau's
Agreement,
which
Not
a
having
".
Figs. 5 and 6, above, show the
Compared
one
would
bancor
the
in the par value of currencies.
change
currencies, provided
provisions
ex¬
meet,^or
to
to
Art. IV, Sec. 7
uniform
member
third
pression of the extreme anxiety
the
authorities,
either
to
both
wmch
Fund
an
monetary
called
refer
Mr.
for
Fig. 6
quotas approves."
of
make
I
same
and
Bretton Woods Agreement
be made in the gold value
may
of
agreed
before
desired for
not
are
own
v
both
results.
;
Keynes'
international
unitas.
vision
would
the
provisions
respectively
and
which
and
were
39,314 bales of linters, which
compares
with 11,724,034 bales of
lint and 37,046 bales of linters
March
31
and
on
10,272,200 bales of
lint and 87,557 bales of linters
on
April 30, 1944.
There
were
22,158,674
cotton
spindles active during April, 1945,
con¬
which
gen¬
compares
cotton
spindles
with
22,232.168
.
prepared for
,?nce
prior
of
Woods
alterable
and
Agreement
identically
Lord
as
Art. IV, Sec. 5
"An
which
eco¬
given a certain gold
to time in unlimited,
value.
In turn, the currencies of
a riSht
This was set member countries would have
a "memorandum which been tied to and valued in terms
countries
without
The test of
end
Morgenthau's Third Draft
restrictions,
import
quotas, exceptional tariffs, etc.,
stability
and
but
of
in
made
Nevertheless,
without looseness."
sky
It should be
borne in mind that
^Sahzing debasement
h lawful
rigidity
process
provisions
accomplish
ciated Press from
to
"That is why I
say that these
the
a
conducted
is
Bretton
Currencies of Member Countries
sys¬
the limit.
proposals
without
of
introduces
individual
authorizing
on
tematic
by
tary
*
these
the exact opposite
of the gold standard.
down
effect.
It
bers.
the
which
necessities
by
will be found in the volun¬
change
And finally this:
which
the
conference,
a
error,
faith
or
if
themselves
from
pro¬
value
and
undertakings.
of the do¬
political poli¬
cies of
the
member
country
proposing the change."
that
hands.
It
reached, in the
be
instance,
good
restore
altered
domestic
first
shall
conform
facto
from
external
social
improbable
contain
Woods
Fig.
horse changing
any
the ground that
approve
Woods.
would merely
offer an exhi¬
bition of horse-dealing without
trial
internals value results
to
so
de
its
not
on
is
tled, right off,-at
change
to
necessary
does
mestic
prescribed
jure external value, it
vides
it
currency
a
is
Fund
Bretton
which in present circumstances
an
the
in
the
Agreement.
recom¬
initial set of rates could be set¬
rigidity of
explicit
is
requested
a
equilibrium,
principle that the internal
value
that
reject
that
reflected
cess
excessive
rate,
then
In that article he said:
influences result¬
the
he
mended for carrying out such de¬
basement contradicts
that*, pro¬
vided in his Clearing Union Plan
the
protect
ing
not
procedure
as
in
every
pro¬
second
to monetary
about unitas.
mention
no
unitas
an
nothing
says
Fund
fact, this
his
Bretton
unit
Also,
of
in
Morgenthau's last draft
Morgenthau's
currency
debasement
countries and au¬
matter
a
unitas
an
Mr.
the
of stabilization fund
so-called
vision for systematic
coinage de¬
basement was proposed by Lord
designated
His last draft pro¬
posal, where he changed the name
doubt in the mind
ypf:^
he
not subject to being
Mr.
Morgenthau
draft proposal.
individual
sired.
alter¬
no
alterable
Woods
Monetary
which
was
adopted Lord Keynes' idea of
fund,
the
2317
depreciated.
quoted,
that
anyone
unit,
unitas, it
eluci¬
fully carries out the provisions of:
Keynes' Clearing Union Plan for
economies of the country from
ject to change at any time on
initiative, changes in excess
of 10% requiring the approval
our
of
to
Bretton
above
International
native but to change the rate.
situation, has
tary
But
years.
further
Bretton Woods Agreement for
cor¬
gold, it is we
order
the
as
impossible to
rect the
"In
of
conferees,
should leave
is
economy
make other adjustments to
r
be
Certainly
the
statements
of
Lord
Keynes and the avowed
suffering greatly from inability
to, sell abroad, because of an in¬
appropriate rate of exchange,
and also' finds
Agreement
five
will
dated later in a discussion of
the
so-called transitional
period.
which finds
it initially in
as
a
concurrence,
Fund's
there
in
reply
be
can
Woods
in
thorizing them to engage in such
10% change coin
clipping to any extent de¬
concurrence
change and
given within
point
country which
finds itself under the
necessity
of making another
change with¬
out
delay
may
request
the
Fund's
this
legalizing
the
a
Bretton
terminating
purposes
ex¬
stability that are
in order to meet the
internal conditions of
different
countries.
the
& FINANCIAL CHRONICLE
_
necessary
If he means, as I assume
does,
he
rates
a
of
change
world trade, it
recognizes limi¬
tations
on
quite another matter.
"My noble friend Lord Addi¬
son asks who fixes the value of
gold.
right
to
"While the Fund looks to
to time, is obviously
from time
exchange
through
the
change stability as the princi¬
pal means for the restoration of
expressed
change—are
limit
cedure.
currencies—these being
to
countries
their
which the relative values of
free
to
going
advantages the scheme would
jJ!ford Great Britain,- elaborated
the
currency depreciation pro¬
visions as follows: ■■
"We are determined that, in
the future, the external value
of sterling shall conform to its
internal value as set by our own
domestic policies, and not the
other way round.
"The gold standard, as I un¬
derstand it, means a system un¬
der which the external value of
a
national currency is rigidly
tied to a fixed quantity of gold
which can only honorably be
broken under force majure; and
it involves
a financial policy
which
compels
the internal
value of the domestic currency
to
conform
to this external
value as fixed in terms of gold.
On the other hand, the use of
gold merely as a convenient
common denominator by means
of
specifically, the Fund
member
speech,
five
national
read: ""
we
"More
discussing at some length
after
(Purposes, Methods, Conse¬
quences)"
Mav
COMMERCIAL
use
of the Con-
released
21,
1944.
for
publi¬
Under
the
"International Monetary
of bancor.
ject
to
Since bancor was sub¬
alteration,
a
general
a
reduction in
would have effected
reduction in the gold
:ts gold value
the
gold
value
currencies of all members.
of the
It
in
is
significant that although
Mr. Morgenthau's first draft provided
for
an
international
rnone-
April Cotton Consumption
The Census Bureau at Washings
ton
on
May
15
issued
its
report
1 showing cotton consumed in
the
active
during
March, 1945, and with 22,411,922^
active
cotton
April, 1944.
spindles
during
Thursday, May 24, 1945
CHRONICLE
COMMERCIAL & FINANCIAL
THE
2318
Reconversion Wage
(Continued from page
of the^National War Labor Board has UfmQo Rnitimilfpp
been announced through its chairllUUaC VUmllllllCG
man,: George W. Taylor, who, ac¬
cording to the Journal of Com¬
merce from Washington, May 10*
The House Appropriations Com¬
defined this policy* which he said
mittee, in sending to the floor a
was based on a desire to facilitate
$1,086,210,337 supply measure for
reconversion
within the bpoad, the
Department of Labor, the Fed¬
general principles of wage stabili¬ eral Security Agency and related
zation, as follows:.
offices for the fiscal year starting
1. In all plants in which total
July 1, recommended cuts which
or partial civilian production will
reduced by $77,201,946 the amount
be resumed, new wage schedules
suggested by the Administration,
the Post-V-E Day policy
Ahead Of The News
Reduces WMC Funds
4,397,330 ,000 kwh>. in the The-; increase ofvohly «2.6 %< over
k.
Output for the, April,!. 1944,'Is the smallest' such
preceding week
week ended May 12,
1945, whs- year-to-yearcomparison in ,12
1.5% above that for the corre¬ ihohths^v:;-:;.?'.^
from
page)1
sought
by the Administration, but as we
reported last week, they are not
(Continued from first
,
sponding weekly period one year
Insofar as
ago.-,
Republicans are con¬
Senate
the
.
:; * ••
*
r
York
.
Retail
-
arid
Wholesale' Trade-
in
•
Consolidated Edison Co. of New
to have
cerned, they don't seem
much heart in the
^
_
reciprocal trade authority
likely to be effective. ;
-
system / output
reports
of
end¬
with
161,200,000 kwh. in the week
ed May 13, 1945, comparing
spite-Of bad weather in many
sections / of / the! country,;
retail
trade last week was slightly above
the previous week and the
level
of last.,year. Last minute
Mother's
kwh.: for the corre-. Day. purchases boosted/ sales in
many Tines; reports of shortages
ist-Rightist
fights
which have ^ponding week of 1944, or a dewere common, --v.';1, ■■'y-yu:' ;///•.,/:• /
plagued
Washington,and w the crease of 10.1 %^
-Men's furnishings were in good
country, for the past 12 years.;.;; ;.
Local distfibutiori of electrkity
issue, or conflict, however,
of the Left¬
This
179,300,000
is not In the category
:
-
operations the Associated - Press reported
demand; ;sales volume was gen¬
should
be* drawn
immediately. from Washington, May 14. $15,159,900,000 kwh.,
Strangely enough, and! it may amounted:* to
erally believed to be restricted by
These schedules should be devel¬
000,000 of the cut represented an not be without significance^ the compared with 179,200,000 kwh; limited
selections:
Volume
in
oped by labor and management in increase asked for the'. Security Leftist agitators seem to be look¬ for-; the corresponding week; of
plants' where employes are repre¬ Agency by President Truman (his ing to the administration of vet¬ last year, a decrease of 10.8%. -r; women's;, ready-to-wear and ac¬
cessories led in retail Trade due
sented by a union.
Where there only request for an increase in erans' affairs as a happy hunting
Coal, Coke and Crude Oil Pro¬ to Mother's
Day and seasonal de^
is no union, management should outlay) to be used for the aid of ground. A few months ago it was
duction—For weekly coal
and mands. Consumers
clamored for
iormulate the schedule.
dependent children, the aged and a case of whether a conservative coke
production
statistics and cottons in most lines
wash
2. If no price adjustment is ne¬
the blind.
Instead, the original or a "Liberal" was to administer
daily average crude oil produc¬ dresses, housecoats,
bathing suits>
cessary under the proposed sche¬
budget estimate for this purpose surplus
property
disposal, the tion
civilian production
for
'
:
*
-
dules, they may become effective
immediately upon being formu¬
heaviest
ings
mended by the Committee was in
must however, the appropriation for the War
be filed with the NWLB or one of Manpower
Commission,
the
iis regional offices,
where they agency headed by Paul V. McNutt.
will be reviewed.
If they con¬ The Committee struck $31,773,900
form to1 board rules and the sta¬
from the WMC's budget estimate,
bilization program they will be recommending $62,099,000 for the
automatically
approved.
Any agency.
President Truman had
modifications of rates ordered by suggested a cut of $10,339,000 in
the board will not be retroactive this appropriation. ;
■
unless a prior agreement has been
Large reductions in the WMC
made to this effect by the parties
budget included $5,000,000 from
—fTiVolved.
The rates as filed must the
general administration fund
be paid until and unless a modi¬
and $9,349,900—the entire budget
fied schedule is drawn and ap¬
estimate—for
carrying
out
the
like.
The
T
All schedules
3.
proved.
hold¬
tremendous
Government's
•
/ "
reduction
approved.
was
recom¬
lated;
for the week ended
figures
structurev and the
That question has now been
plant
in
Conserva¬
./-.;/•.
settled in favor of the
tives.
But
heat
awful
an
the
from
agitators is burning under
Leftist
Administration.
"Shocking" disclosures have been
made by "Liberal"- newspapers of
conditions in the veterans' hos¬
the Veterans'
pitals.
The purpose seems to be
to displace the veteran adminis¬
trator of the Veterans' Bureau,
General
Frank
T.
Hines,
and
have heard advanced
job, is listed on the Leftist
It is difficult to say how
everyone we
for his
subsequent
12,
1945,
see
of this section.
May
pages
ended
week
the
for
duction
May 12 was 85.4% of capacity, as
against 90.7% of capacity for the
week,
preceding
-
play suits, children's clothing, and'
white eyelet- graduation dresses.
Rayons
Production—Paper ; pro¬
Paper
American
the
—
accepted
were
choice when it
hard to
were
obtain.
A
preference ' was noted for
white fabric gloves, but
pastels,
black, and navy were also de¬
Paper and Pulp Association's in¬
dex of mill activity disclosed. As
manded.
Handbags,
jewelry, and lingerie
paperboard, production for
period was reported at
94% of capacity,, or a decrease of
three points over the - previous
tional
for
the
same
week.-
;.V;-;•/-./J;/1y';',
second
as
found cottons
was
Mother's
with
Day
and
coats
cosmetics,
were
dresses
demand as; gifts
tradi¬
best-sellers,
in
more
than iri previous
Three-quarter length wool
years.
coats and spun rayon dresses were
Business Failures Continue Low
—Commercial and industrial fail¬
particularly popular. Slips, espe¬
cially white ones, sold better than.
gowns.
The
greater-than-usual
buying of formal wedding dresses
continued. T:;I
;
ures/ remained low in the week
migratory workers' program. The
side.
committee
cut
ended
$32,461,587 from
May 17, reports / Dun &
''Journal of Com¬ budget estimates for numerous the fight will come but* * Hides Bradstreet, Inc. Concerns failing
is considered one of the ablest ad¬
merce", that the WLB hoped that national defense items in the bill,
numbered 15 as compared with 16
Supplies of flowers were insuf¬
ministrators in Washington. ; He
the? wage scales would be formu¬
last week and 28 in the same ficient for the heavy Mother's Day
leaving $260,327,013 for that pur¬
took over after the scandals had
lated by the time a plant resumed
week a year ago.
pose.
••
v\a"
:
Four-fifths of demand./ Recent bad weather in
repeatedly shaken the Veterans'
civilian production and said that
The bill approved $789,761,000
the week's failures involved lia¬
many regions cut garden supplies
Bureau after World War I, and
the schedules should be put into for
so-called
mandatory
items,
Summer home
bilities of $5,000 or more.
These and seed sales.
very shortly took it out of con¬
effect and filed with the board
such as grants to States for co-op¬
larger failures rose from seven a furnishihgs:were beginning to sell
simultaneously.
This procedure eration in programs established troversy.. Manifestly its work has
week ago to 12 • hrThe week; just a little better. Hardware sales, ori
expanded tremendously arid under
he added, would facilitate recon¬
Taylor went on to say, ac¬
Mr.
cording to the
The Labor Department
$68,391,085, a reduction
$2,138,215 from budget esti¬
law.
by
version.
received
>. "This statement deals only with
the immediate problem and makes
of
pretense of dealing with the
many other complicated problems
involved inflhe reconversion wage
nroblem."
the
board
chairman
no
said.
"This first step
*
deals only
problem which we believe
the parties themselves can handle
better than we can.
We have
with
a
every
confidence in the ability of
American management and
reach
to
agreements
labor
wage
on
schedules."
♦
1
Mr. Taylor emphasized that the
stabilization act gives the board
/ /tv
mates.
The
includes
$44,189,500 to
be granted to States for emer¬
gency maternity and infant care
for
sum
The committee
men.
of
children
and
wives
the
service
em¬
phasized that it intended the fund
available
be
to
of
infants
or
to
the
service
wives
and
who
die
men
discharged honorably after
are
the pregnancy
of the wife.
Other items in the bill include:
,
the
power
wages
as
floors under
ceilings over
to set
well as
them.
He said the board is now discus¬
sing the problem of changes in the
length of the-work week which
will result from the change from
production to peacetime pro¬
possible effetcs of
tues reduction in take-home pay
war
duction and the
that is considered inevitable.
"There
these
statements
be
will
on
later," he said,
"just now we are primarily inter¬
ested.1 in encouraging agreements
on
reconversion wage schedules,
even
if they are only partial or
problems
tentative."
The
of
$44,563,400 from budget esti¬
mates, with virtually all the cut
in national defense training items;
old-age assistance, aid to depend¬
chairman
that;all agreements drawn would
be temporary and subject to fre
to
the blind
through grants to States under the
social
security act, $416,000,000;
grants to States for unemployment
compensation administration, $32,000,000; Employees' Compensation
Commission, $17,962,000; National
Labor Relations Board, $2,945,930,
and
National
Mediation
Board,
Committee
other
war
are
members
said
that
agencies whose activi¬
curtailed
defeat
funds
as
a
will
decidedly
result
also
of
have
He
no
added
that
there
had
been
indication of any pressure from
industry to reduce
He
indicated
when later in the month their ap¬
propriations
the
prewar
peacetime structure would serve
as a general pattern
for the for¬
come
under
House
new
It has been
officially announced,
according to Associated Press ad¬
vices from
Helsinki, May 15, that
Russia and Finland have signed a
trade agreement which provides
goods.
$17,000,000
exchange
of
Finland is to deliver wood,
paper
and
send
a
to
cellulose; Russia to
Finland salt, cereals and
raw
wages
Mr. Taylor emphasized that the 'by management would continue
pfvi lr/%
*
1
t\
• i m
v
no-strike pledge given by unions as long as the war with Japan
and the no-lockout pledge given
lasts.
4
_
,
this
point, and those whom they
are
advancing to take his place.
The veterans returning home will
be sought, after by pressure of all
kinds, politicians of various hues
and purposes, for many years to
come.
Indeed, there is a move¬
ment on to seek to organize them
into
The
rival of the CIO-PAC.'
a
movement, with which this writer
has some first hand knowledge,
to
seems
well-financed.
be
Un¬
well-intentioned
but there is a doubt, in view of
the
changed
political
situation
that
has
come
about,
whether
there is any need for it any more.
In a few months it will very likely
become apparent that
the CIOPAC is one of the least harmful,
doubtedly,
or
it
is
the
of
one
influences
least
in
the country.
Unless
_
..
ended, compared with 15 in the
corresponding week of last year.
Small failures fell ;to/ three,; a
third their number in the previ¬
ous
week.
Failures declined in
trade/both retail and wholesale,
but
construction
we
mistaken, before
the CIO itself, as a
are
labor
organization, will have
way
down
the
gone
ladder- from
high point of
power
tained
the
Roosevelt.
under
which it at¬
edch
service
commercial
and
showed
-
increase
an
in the
the
whole;
.:
spotty.
were
Week
just
continued
situation
stores";
low
as
two-thirds
figure.^
/ Retail
was
Chain
acute.
of
last
year's
-1-
the
volume -for
estimated
2
country
above
6%
to
trends in leading
agricultural commodities. The in¬
dex fell to 176.82 on May 15, after
touching a new war-time high of
177.07 a week earlier.
The cur¬
still
index
rent
3.0%
over
shows
rise
of
when
it
a
ago
year
a
stood at 171.63.
(Wholesale
Price
Index
Off—The wholesale food price in¬
dex, compiled by Dun & Brad¬
street, Inc., declined 1 cent fur¬
ther to stand at $4.08 on May 15,
the
lowest
point touched so far
This marks a rise of
above last year's $4.01 but
year.
1.7%
it represents a
war-time
the
corded
two
on
drop of 1.0% from
peak .of $4.12 re¬
the corresponding date
ago.
years
were
continued scarcities in
many
lines,; especially
certain
foods.
Buyers searched the ap¬
parel markets/ but transactions
were limited by lack of offerings;
this picture seemed to prevail in
most other
Food
Advances for the
listed for rye and po¬
trade this week was
Wholesale
marked by
wholesale markets.
dex,
were
store
behind that of a
1%
for the week ended May
12, 1945.
In a' comparison this
week
with
the similar week a
year ago
year
for
the
Bankers'Group
Bankers
Association
at
Jersey
City, May 11, Harrison M. Thomas,
President
of
Trust
was
Co.,
Princeton
elected
Bank
&
President,
succeeding Frank D. Abell, Presi¬
dent of First National
Ifon'Bank*
Morristown.
F.
»
.
.
Raymond
dent
First
of
Peterson,
National
Presi¬
Bank
of
that this year
fact
closed on May 8.
with a gain of 5%
(revised) in the preceding week.
many
stores
were
This compared
For the four weeks ended
May 12,
for the year to date by
price
per
total
of
pound of 31 foods
in general use.
Sharp
Index
Decline
in
April
Trade
Consumer
spending in
April was considerably below the
March level on a seasonally ad¬
justed basis; there were/several
—-
named Vice-Presi¬
of
Association,
The
Coate,
Secretary,
pointive
was
held
office.
this
-
holds
No
an
ap¬
fense
Transportation.
late
President
Roosevelt.
preliminary seasonally - ad¬
justed United States Trade Bar¬
ometer, which reflects "consumer
retail
sonal
convention
in conformity
with requests by the Office of De¬
year
the
purchases,
rent,
services, etc.,
and
stood
in April (1935-1939 = 100).
a
decline
of 13.7%
at
per¬
185
This is
below the all-
time record peak of 214 in March.
York the
New
in
trade
the
termination
Europe.
piece
sale
goods
the
war.
entering, the
whole¬
merchandise
to obtain
for fall.
Condi¬
encountered were the lack
on
the
part of many
lines and smaller allotments
one
in
and
found
markets
hard
of
Buyers of garments
of readiness
of r Easter
this ' year- with
heavy Easter shopping falling in
March,' and the Saturday store
closings on April 14, in memory
was
Sutton, Jr., President of
First National Bank, Toms River,
was
elected
Treasurer.
Armitt
Retail
date
the
while
'
tions
Paterson,
of
and
12%.
past week continued active with
consumer
buying showing little
tendency to go slow as a result of
specific;: reasons why this might
be expected, such as the April 1
dent
Frank W.
be
should
allowance
ago,
made
1945, sales increased by 7%,
The in¬
..
sales on a
country-wide basis, as taken from
the Federal Reserve-Board's in¬
Department
steers, sheep and lambs.
dex, represents the sum
meeting of the New Jersey
a
year ago.
flected irregular
the
a
;
reported sales * of meat as
tatoes, while declines occurred in
At
r
creases
•
week
Thomas Elected Head
.
/j The meat, poultry, fat, and egg
Regional percentage in¬
closed. * v;;.. /v•' iUy:,/ V., V.■
were:';East* 2 to 5%; Mid¬
dle West, 1 to 4%; Northwest, 5 to
I Wholesale Commodity Price Iii*
dex—The
daily price index of 8%; South, 8 to 12%; Southwest*
6 to 11%;' Pacific Coast; 3 to 7%.
wholesale commodities, compiled
New England decreased 4 to 8%.
by Dun & Bradstreet, Inc., re¬
failure
of bhe
this
moons,
Of N. J.
Russian-Finn Trade Pact
materials.
for civilian
A new frontier ijri the Petsamo
production workers.
That is, the
general relationship between jobs district, which Finland ceded to
based on skills and responsibilities Russia, will be drawn by a mixed
would remain, but the structure1 committee, a further announcewould be entirely changed to fit J/ment stated,
existing conditions.
mulation of
is the nature of Hines' attackers at
consideration.
for
wages.
that
What has concerned this writer
reduced
quent modification in the light of
changing economic conditions.
"Our principal function is to see
that there is not a general raising
or general lowering of wages," Mr.
Taylor said.
temperaments lyhich ate in¬
volved, we may expect all - sorts
of stories about conditions, some
of them undoubtedly justified. * •*
many
many
$591,400.
their
indicated
and aid
ent children
Germany's
board
(national
defense), $59,957,000;
Office of
Education, $17,935,018, a reduction
ties
»•
Temporary Agreements
:
Nurses' training program
in view of the
the circumstances,
year
ago.
v;
:
thart
-
]
to the Federal Re¬
serve
Bank's index, department
store sales in New York City for
/
According
weekly period to May 12,1945,
by 3% below the same
period of last year.
This com¬
pared with a gain of 2% (revised
figure) in the preceding week.
For the four weeks ended May 12,
the
decreased
1945,
sales "rose
by
the year to date by
7%, and
13%.
for
161r Number 4388
Volume
THE:GOMMERCIAL
& FINANCIAL CHRONICLE
Steel Operations Still At High Rate—Prices
Report of Senate
Revised Upward on 14 Basic Mill Products Food Committee
the steel5 industry was pondering over the latest steel
"While
.
announced by the OPA on May 22 to be effective May
steel production rate continued at 92.5% and there were
increasing signs that order cancellations were on and upward trend,"
'stated "The Iron Age" in its issue today, (May 24), which further
'rice revisions
the raw
9S
"^Despite1 this'
schedules expected to material¬
ise
by July
1 would ; be large
'•enough to give much hope for
-are-reflected
ules,
on
•.
after
„
the
third
increases as an ar¬
higher wages,- The
OPA. which when announcing the
changes released a long compre¬
ably use these
gument for
of Considera¬
will probably live to see
day when its
price pattern
haunt it with claims and hues
cries that the whole steel
hensive 'Statement
tions,'
will
and
•.
■
A-
..
rated
mill
schedules at
levels
-
for
several
Some ;
customers
fourth
hold
quarter
allot¬
ments which
they have been
successful
placing with mills.
"WPB
,
tion
of
ment
in
has
authorized
495,000
rails
for
tons
the
of
produc¬
replace¬
railroads, and
total
controlled
cooling
capacity of 600,000 tons.
'The
Iron
Age' steel
"
scrap
composite price has declined this
week 160 a gross ton to
$18.92 a
controlled
prices there is
chance for any company
no
to obtain
price relief until a most exhaust¬
ive and prolonged study of costs
factors has been made.
>
,V
1
■
.
1
"Briefly summarized steel price
increases
allowed
were
fol¬
as
lows:
Light rails, which had been
advanced $3 a ton
in January,
have been advanced
$2
additional
an
ton, making
of $5; tie plates
a gross
crease
net
per
wire
ton; barbed wire
bail ties up
steel
are
ton; .carbon
$7
blooms,
net
a
$2
a net
$3
hot
ton; carbon
$3
up
up
up
steel
rolled bars up $2 a net
steel wire rods up $3
manufacturers
total in¬
a
ton;
net
a
net ton;
a
ton; carbon
billets,
•
slabs
and
sheet bars up $2 per gross
ton;
and carbon steel tube rounds and
tube
not
or
billets,
exclusive
converted
pipe,
into
$4
up
a
of
billets
seamless
gross
tube
ton.
"Carbon steel plates
subject to
sheared and universal tolerances
which
advanced $2 a ton in
received an addi¬
were
January have
tion boost
of
$1
ton making a
Galvanized iron
a
total of $3 a ton.
and
steel
sheets
specialty
vanced
?4
siding
$3
including
which
roof¬
ad¬
were
a
a total increase of
Nails and staples other
galvanized
vanced
$5
increased
which
ton in
a
another
$2
•Track
spikes
a
ad¬
were
January
ing a total increase
a
coated
making
ton.
a
than
zinc
ton in January have1
additional increase of $1
an
ton
a
sheets
and
ing
.bad
and
were
ton mak¬
of $7
ton.
a
advanced
were
$5
net ton.
Canceljations
Jngh
as 50%
amounting to
of gross
as
bookings
,«ave, in most
cases, failed to re¬
duce net
orders to<a point where
early openings in
are
mill
prevalent. .Net
t°
se
poited
bout
the
schedules
order
moderate
holding
level
re-
throughout May, which is
40%
less
than
the
peak
early in 1945, are in
of several
principal pro¬
weeks scored
e
cases
bers only
pments.
slightly
Pressure
.notably
less
than
has
from
the
been
auto-
/J
1?dustry}
schedule
,.J, orders-authorized for
un-
rntf
°f
CMP
delivery by
sec-
open endin§
J^bbough
cancellations
haJ
s?0^ 0Peiaings,
ti_'e been filled with the
u
rstM
imUr
jSOme
have
these
excep-
plate
°rdfrs' and
tonnage by
Producers almost
eisarly have decliend
to make
Berge
state
that cartels have "seriously
foreign policy, and urge passage
foreign trade contracts for publicscrutiny, according to the Associated Press from Washington, May 18.
On May 17, the Senators were$>-^
-rtold
by Assistant Secretary of
State William A. Clayton that the
State
ban
Department
cartels
on
would
seek
through
Virginia Banks Form
a
Credit Group
interna¬
tion over both the Office of Price
tional agreement.
Administration and the War Food
Testimony centered around the
foreign contracts bill offered by
Administration,"
the report de¬
clared that the Office of Price Ad¬
ministration had "failed miser¬
ably to enforce price and ration
control altogether."
The Committee's
preceding rec¬
ommendations
to
feeders
of
AA
and
A
grades of cattle through a fair and
'sufficient subsidy to feeders, to
encourage them to feed out range
cattle to the maximum
degree,
thereby
encouraging the feeding
of more cattle and
increasing not
only the quality, but the weight,
of A A and A grades of cattle.
"2. An immediate incentive
;
to
gram
nine
Joseph
C.
O'Mahoney
(D.-Wyo.>, requiring foreign con¬
tracts
with
to
of
Justice
public
as
pro¬
during
encourage,
with
said
coordination
is
the
of
most
meeting
desirable
the
problems
international
that
of
there
countries
ments
.
The
American
Iron
Steel
and
Institute
on
May 21 announced
telegraphic reports which it
had
received
indicated
that
the
early
the
all
cover
summer,
and
more grass
are
un¬
this
weights of hogs.
"4. That assurance be given to
producers that support prices and
'ceilings' for livestock will not be
lowered unless adequate notice of
such
change be given.
"5. That the Price Control Act
be amended to require and direct
of
the industry will be 92.9% of
the Office
capacity for the week beginning to give to
May 21, compared with 95.3% one stock
a
week ago, 93.2 % one month ago.
profit for
of Price Administration
the processors
or
live¬
reasonable
margin
of
processing each species
and
98.4% one year ago.
The of livestock.
operating rate for the week begin¬
"6.
The
withdrawals
of
all
ning May 21 is equivalent to 1,slaughtering licenses and permits
701,600 tons of steel ingots and
and a sharp reduction in the num¬
castings,' compared
to
1,ber re-issued, together with re¬
745,$00 tons opq week ago, ,1,707^,
strictions on slaughter by use of
100 tons one month ago, and 1,quotas, so that meat will be di¬
762,600 tons one year ago.
"Steel" of
Cleveland, in its sum¬
mary of the iron and steel mar¬
kets, on May 21 stated in part as
follows:
"Steel
production
promises to
high rate for some
time, in spite of the fact full ef¬
remain
at
a
fect of cutbacks and cancellations
yet be fully appraised, as
cannot
it
that essential
appears
by
opposition
to
fusal
issue
to
licenses
and
The
total
forcement efforts
fundamental
on
major problems instead
ginal technicalities/
*
"7.
The
limiting
of mar¬
lend-lease
of
Without voicing any
the
about
same
16,000,000
steel,
at;
of finished
tons
^practically
second
for
as
cancellations
Steel
been
been
expected and
schedules
have
the
gaps
have
than
lighter
where
so
nearby
' affected
been filled; promptly.
have
affected
as
been suf¬
buying to sustain
Even
schedules.
their
left
not
in
sheets
and
special quality carbon bars, where
deliveries still are far extended,
there
is easing,
come
more
which should be¬
pronounced, particu¬
hot-top quality
rounds, because of cutbacks now
effective or likely to become ef¬
fective soon in the large shell
in
larly
large
Lend-Lease
the report said
that
"reasonable
requirements"
for
lend-lease
should recognize
and
"Meanwhile,
open-ending
of
accept orders at once
scheduling after July 1, pro¬
vided the scheduling does not in¬
terfere with CMP requirements,
for
has
disappointment to
consumers.
Recent
an¬
proved
many
a
nouncement of this steo caused a
that
of inquiry, as it appeared
buyers with un¬
numerous
had
anticipated
relatively
early
scheduling
of
their
orders,
in
third
quarter,
rated
tonnage
which in various important
ucts is
out of the
question.
prod¬
Act,
consistent
with
civilian shortages in
meat
existing
the country's
supply.
be
die
included
in
any
would
be
of taking off price
"ceilings" when a commodity is in
plentiful supply, the report said:
oftentimes
-merchants
"Retail
construe
ceiling prices to be sell¬
ing prices."
warned
bank
every
the
be
will
whether
subscribing
a
-
^
Virginia
probable
be
and
by small business
as
result
a
of, this
the
association
is
con¬
vinced that the banks in
Virginia,
survey
as
a whole,
are fully capable 0:
supplying the necessary credit for
constructive
purposes.
com¬
Same Income Tax for
Non-Resident Aliens
Representative James
(D., Conn.)
introduced
House
of
"extremely dangerous"
legislation in
the
which
upon
might lead to sanction of them.
Geelan
in
the
internal
would
the
form
amendment to Section
an
it
that
to have any control of cartels that
211
aliens
United States retroactive
of
code
revenue
impose incoirie
non-resident
i
(B)
in
to
tax
-
the
1940,
report from Washington to the
New
York
"Herald-Tribune'
a
Results Of
Treasury
Bill Offering
stated, May 7. The bill is designed
to
income tax
$1,300,000,000 or there¬
91-day Treasury bills to
details
issue
of this
are
as
in
in
the best suites in the most
mately 0.375
hundreds.
ing
any
are
not
have
99.905, equiva¬
ex¬
in
seen
They have been dodg¬
tax by claiming that they
operating businesses. They
operated
out of
their hotel
suites in speculative stock market
approxi¬
and real estate
deals, out of whicl\
they have made huge profits."'
per annum.
Range of accepted
be
night clubs and other expen¬
sive places of amusement by the
cepted in full).
discount
can
the
fixed price basis at 99.905 and ac¬
of
same
American citizens.
"These people are concentrated
New York City and are living
as
Total
accepted,
$1,313,084,000
(includes $50,991,000 entered on a
rate
the
-on
"and
who said in part:
applied for, $2,067,910,000.
price,
rich
speculation
clusive hotels and
Total
aliens who
getting
The bill has the support of Sen¬
ator Brien MacMahon (D.,
Conn.),
follows:
lent
be
to
real estate deals" to pay
be dated May 24 and to mature
Aug. 23, 1945, which were offered
on
May 18, were opened at the
Federal Reserve Banks on May 21.
The
non-resident
said
"stock-market
Secretary of the Treasury
announced
on
May 21 that the
about of
force
are
The
competitive
bids:
,
Senate Passes Navy Bill
High, 99.910, equivalent rate of
discount
,
the
busi¬
but,
group
they become
interests
testified, giving it as his
opinion that registration of car¬
tels, as proposed in the O'Maho¬
ney bill, could not be interpreted
as legalization or sanction of carHe
to
not
the
needs for funds
also
telization.
small
Association
several '
months ago appointed a committee
to make a
study of the
modity agreement.
Attorney General Francis Bid-
Average
On the point
The Senate has passed by voice
0.356%
approximately
per annum.
vote, states
according to the Associated Press,
to have asked War Mobilizer Fred
Low, 99.905, equivalent rate of
discount
approximately
0.37-3%
into the contro¬
straighten things out.
This report adds that it is antici¬
pated that Mr. Vinson or the OPA
per annum.
the
from
.President
Truman
is
reported,
M. Vinson to step
versy
(59%
and
will meet some
of the criticisms.
the
lar issue of
of
pacity in excess
of finishing ca¬
scheduled
now,
but
are
pro¬
steel
in
preparation for conversion as soon
as
semi-finished
the orders can be put on sched¬
ule.
"A shorter month and some
in¬
terruptions in fuel supply caused
steel ingot production in Anril to
400,COO tons short of March
fall
output, April totaling 7,308,579 net
tons,
against 7,707,965
tons in
March. In April, 1944. production
was
was
tee
maturity of
Business Travel
pacity are said to have orders for
which can not
ducing
ation.
accepted.)
a simi¬
bills on May 2$ in the
$1,308,721,000. a
The
7,593,688 net tons."
State
nounced
tions
on
to
relaxation
a
American
of
terior
ists,
British
zone
of
however,
to go to
The
cupied
Isles
and
France.
will
be
areas,
it
of
have
sideration.
the
matter
to
under
do
won in vain," die
do not retain under
and ownership
the strategic islands of the Pacific
which we have captured from the
Japan ese Emnire through the
our
own
blood
oc¬
rests
upon
with the military authorities, who
now
to
fought and
added, "if
in¬
tour¬
stated,
needed
.
and
permitted
travel
was
be
"We shall have largely wrought
Europe.
question
would
men
the
No
commit¬
proposed,
this.
Europe, stating that
business men can now go freely
the
the
on
military
training
restric¬
traveling to
to
Senate-House
confer
tained afloat after hostilities cease,
and
said
compulsory
an¬
business
A
will
Senator Overton, of the Naval
Appropriations Committee, urged
that a powerful force be main¬
Europe
Department has
Press
changes.
producers with ingot ca¬
automobile sheets
be
price
was
Associated
Washington, May 15, a naval
supply bill of $23,603,775,000 after
changes which added $203,000,000
to the House approved appropri¬
of the amount bid for at
low
There
amount
program.
allowed to
be
"Some
CMP, under which producers are
criticism of
past deliveries of meat under the
positions,
have
there has
ficient forward
Where they
future
however,; they
mark
quarter.
far have
should
for
member of the group,
He
added
that
the
Moreover, consuming
producing countries
as
V
new
increase
Bankers
tenders of
ply."
war.
quirements
well
as
con¬
the
available,
of
or
useful.
should
agreements
permanent.
slaughtering
new
sistent with domestic civilian sup¬
"Claimant agencies in Washing¬
ton
estimate
third quarter re¬
be
may
funds
available
gave
Govern¬
liquidated when the surpluses no
longer exist, should not become
permits
slack in
the
He
the
re¬
purchases of meat products con¬
ing end of the European phase of
of
surpluses
to known
violators of Government regula¬
tions and the concentration of en¬
civilian
requirements follow¬
incompatible.
the
will
credit
facilities
cartels
position on international
commodity
agreements:
Where
surpluses have accumulated as a
But
said
through the banks.
He said
that opportunity
will be given
every
bank to
join the credit
group and thereby increase the
State Department's
commodity
agree¬
explanation
those
of
sources
rected into the normal inter-State
channels of distribution.
needs will go far in taking -up the
war
not
from
14
.
added
result of the war, agreements be¬
tween governments
to liquidate
and
marketing of
that
advices
May
011
O'Neil
organization
increasing evidence
in foreign
of
and
Press
Va.,
President
regarding cartels.
approval
in
tinued:
sentiment
He said the
the
He
business
*
and
ness
is
similar
Richmond,
of
raised
cartels."
small
Virginia Bankers As¬
Associated
policies
means
for
sociation.
Mr.
"international
national
credit
medium-sized
democracy,"
that
of
dent of the
Declaring cartels to be "incom¬
Clayton
Virginia's largest banks
available $4,500,000 as, a
state, said Charles T. O'Neil Presi¬
docu¬
ments.
patible
of
source
restrictive
provisions
be registered with the Depart¬
ment
"Virginia Bank Cr,edit
has been organized byr
making
were:
"l^A forthwith increase in the
return
The
Group"
Senator
to
entire scrap price situation seems
more action in the fu¬
flurry
^
Wendell
ment's
Turnings prices
operating rate of steel companies
having 94% of the steel capacity
der
.
jurisdic¬
General
productive dairy cattle.
"3, Raising the support price of
hogs and extending support prices
Philadelphia.
the OPA's
Statement of Considerations—un¬
from
certain
Recommending that "a supreme
administrator for food be created
to have' supervision and
torney
weakened and frustrated" America's
of a bill
requiring firms to file all
at
have declined at most centers. The
that
seems
Com¬
a
spring
scrap
obtained as a re¬
sult of the increases.
One thing
fits the industry
Agriculture
gross ton as the result of further
weakness in heavy melting
ture."
■
.
"Arguments will probably con¬
tinue for months as to what bene¬
a Senate judiciary subcommittee and a
special
investigating oil industry practices heard Assistant At¬
committee
report of the
findings of its subcommittee which
has been
investigating food short¬
ages,
the
Associated
Press
re¬
ported from Washington, May
un¬
13,500 for the transit lines for the
third quarter compared to the in¬
dustry's
joint session of
•
out of poised for
price balance has been put
kilter.
may
dominate, and order
assure
and
of
carryovers
current
months.:
>
the
heavy
backlogs
promised and requiring
-voluminous data, price increases
on
certain steel products - will
probably satisfy no single com¬
pany
or
group. Non-integrated
steel
makers, comprising
the
companies have al¬
ready condemned the revisions as
insufficient for them. Large steel
companies are 'worn out' after
having attempted to get a healthy
boost in prices. Labor will prob¬
tonnage
way
business will
it
•smaller steel
mill sched¬
on
into production in
August. For the most part, how¬
ever,
civilian manufacture.
"Announced
months
had been
its
unrated
cancellations
some, unrated
find
'even moderate scale-resumption
!0f
soon
Senate
mittee has issued
Elimination of Cartels Sought
;
A
15;
latter condition**—
firm i commitments
there were little indica-; «
that openings on steel null tonnage. If product
however,
Sons
The
<
2319
cans
and
we
control
sacrifice
of
thousands
thousands of young Ameri¬
and
which
are
ours
right of conquest and of
con¬
,
by
the
occupa-
tion."
y
/
bond
computed
Moody's
prices
given in the following table.
bond yield averages
and
are
\
•
Govt.
Bonds
Corpo¬
Corporate by Groups*
Corporate by Ratings*
Baa
A
Aa
Aaa
rate*
R. R.
P. U.
Indus.
122.33
115.24
120.43
118.60
112.19
114.66
119.20
21
122.31
115.43
120.63
118.80
115.43
107.27
112.19
114.66
119.41
19
122.31
115.43
120.63
118.80
115.43
107.27
112.19
114.66
119.41
18
122.31
115.43
120.63
118.80
115.43
107.27
112.19
114.66
119.41
17
122.31
115.24
120.63
118.60
115.43
107.09
112.19
114.46
119.41
16
122.25
115.24
120.63
118.60
115.43
107.09
112.37
114.46
119.20
15
—122.19
115.24
120.63
118.60
115.43
107.27
112.19
114.46
119.20
May 22___.
!
•
107.27
115.43
'
122.21
115.24
120.63
118.60
115.43
107.27
112.19
114.46
119.41
12.
122.26
115.24
120.84
118.40
115.63
107.09
112.19
114.46
119.20
11
122.26
115.24
120.84
118.40
115.43;
107.09
112.19
114.46
10.
122.28
115.24
120.34
118.40
115.43
107.09
112.19;
114.46
NOTE—During the period of rapid changes caused by
price con¬
ENDED MAY 12,
and
Chemical
$20,000,000 fertilizer
ufacturing business.
1945
119.41
120.84
118.40
112.19
114.27
120.84
118.40
115.24
107.09
112.19
114.27
119.41
Percentage change to
120.84
118.20
115.43
107.09
112.19
114.27
119.41
May 12, 1945 from—
107.09
•'
116352
122.38
115.24
118.40
115.43
107.09
112.19
114.27
(1926=100)
115.24
120.84
118.40
115.24
107.09
112.00
114.27
119.41
122.38
115.04
120.63
118.40
115.24
106.92
112.00
114.27
119.41
2
122.38
115.24
120.84
118.40
115.24
107.09
112.19
114.27
119.41
1
122.36
115.24
120.84
118.40
115.24
107.09
112.19
114.27
119.41
5-
;__
4
....
120.84
27
122.38
115.24
120.84
118.40
115.04
107.09
112.19
114.27
119.20
20
Apr.
122.44
115.04
120.84
118.40
115.04
106.56
111.81
114.27
119.20
122.59
6__
115.04
120.84
118.60
115.04
106.56,
111.817114.46
119.20
122.21
13
115.04
120.84
118.40
115.04
106.39
111.44
119.20
114.46
119.20
122.01
114.85
121.04
118.40
114.85
106.04
111.25
114.27
122.19
115.04
121.04
118.60
114.85
106.21
111.44
114.27
119.41
122.25
115.04
120.84
118.80
114.66
106.39
111.07
114.46
119.41
9
122.47
114.85
120.63
118.60
114.66
106.21
110.88
114.46
119.41
2
122.05
114.66
120.43
118.60
114.46
106.21
110.70
114.27
119.61
Feb.- 23
121.92
114.66
120.02
118.60
114.46
106.04
110.52
114.08
119.41
121.97
114.46
120.02
118.60
114.27
105.69
110.15
114.08
119.41
9
121.58
114.27
119.82
118.40
114.08
105.69
109.97
114.08
119.20
2
121.33
114.08
119.82
118.00
113.89
105.34
109.60
114.08
118.80
26
120.88
113.89
119.41
118.00
113.70
105.17
109.24
113.89
118.60
114.66
119.61
Mar. 31
v
23
*
}
16
■
'.'16
''
H
'
,
Jan.
High
:
122.59
115.43
121.04
118.80
115.63
107.27
112.37
120.55
113.50
118.80
117.80
113.31
104.48
108.52
113.70
118.20
119.47
111.62 -118.20
116.61
111.62
101.47
105.34
113.70
1,
118.34
1943__
109.79
115.43
110.52
97.00
101.31
113.12
4-28
4-14
5-13
5-5
4-14
5-13
1945
1944
1945
1945
1944
sels
All commodities
105.7
105.7
105.7
105.5
103.6
0
+0.2
products
129.5
129.8
130.5
128.9
122.4
106.6
106.5
106.5
105.5
104.6
118.3
117.6
Farm
Poods
-
-
Hides and leather
118.3
99.1
84.3
104.4
117.2
lighting materials
Metals and metal products
Building materials——-————
Chemicals and allied products—
118.3
99.1
84.0
104.3
117.0
118.3
99.1
83.9
104.3
117.0
94.9
106.2
products—-;—
Textile products—.——
Fuel and
94.9
106.2
99.1
115.0
94.9
95.5
106.2
106.0
94.6
94.6
94.6
117.9
117.8
118.2
117.3
94.8
94.8
94.8
94.8
0
0.2
0
1.4
+ 0.5
4.5
0
1.4
1.0
0
0.1
+
0
102.0
102.0
101.9
102.0
101.0
0
0
100.4
100.4
100.3
100.4
99.5
0
0
+
99.5
99.5
99.5
98.6
+0.1
+ 0.1
+
Lend-Lease for
1.0
Russia to Continue
All commodities other than farm
products
All commodities other
Acting
than farm
products and foods
5,
IN SUBGROUP
1945 TO MAY
'
INDEXES FROM
1945
12,
1945—
U. S.
Govt.
Bonds
'
'
YIELD
AVERAGES
Corpc-
Corporate by Ratings*
rate*
Aaa
Aa
A
R. R.
P. U.
Indus.
2.63
2.72
2.88
3.32
3.05
2.92
2.88
2.62
2.71
2.88
3.32
3.05
2.92
1.64
2.88
2.62
2.71
2.88
3.32
3.05
1.64
2.83
2.62
2.71
2.88
3.32
3.05
2.92
2.68
1.64
2.89
2.62
2.72
2.88
3.33
3.05
2.93
2.68
2.92
2.88
3.33
3.04
2.93
2.88
3.32
3.05
2.93
2.69
1.64
2.89
2.62
2.72
2.88
3.32
3.05
2.93
1.64
2.89
2.61
2.73
2.87
3.33
3.05
2.93
2.89
2.61
2.73
2.88
3.33
3.05
2.93
1.64
2.89
2.61
2.73
2.88
3.33
3.05
2.93
2.68
1.64
2.89
2.61
2.73
2.88
3.33
3.05
2.94
2.68
1.63
2.89
2.61
2.73
2.89
3.33
3.05
2.94
2.68
1.63
2.89
2.61
2.74
2.88
3.33
3.05
2.94
2.68
5
1.63
2.89
2.61
2.73
2.88
3.33
3.05
2.94
2.68
4
1.63
2.89
2.61
2.73
2.89
3.33
3.06
2.94
2.68
3-:
1.63
2.90
2.62
2.73
2.89
3.34
3.06
2.94
2.68
2
1.63
2.89
2.61
2.73
2.89
1
1.63
2.89
2.61
2.73
2.89
3.33
3.05
2.94
2.68
Apr, 27
1.63
2.89
2.61
2.73
2.90
3.33
3.05
2.94
2.69
1.63
2.90
2.61
2.73
2.90
3.36
3.07
2.94
3.05
2.94
2.68
1.62
2.90
2.61
2.72
2.90
3.36
2.93
1.64
2.90
2.61
2.73
2.90
3.37
3.09
2.93
Exceeds That for Same Week Last Year
The Edison Electric
that
mated
2.91
2.60
2.73
2.91
3.39
3.10
2.94
2.69
i" 23
3.07
week last year.
Feb:
1.65
2.90
2.72
2.91
3.38
2.68
New
1.65
2.90
2.61
2.71
2.92
3.37
3.11
2.93
2.68
Middle Atlantic
9
1.66
2.91
2.62
2.72
2.92
3.38
3.12
2.93
2.68
1.69
2.92
2.63
2.72
2.93
3.38
3.13
2.94
2.67
Industrial
West Central
'
2.60
3.09
2.94
*1.3
Central
1.69
2.92
2.65
2.72
2.93
3.39
3.14
2.95
2.68
2.93
2.65
2.72
2.94
3.41
3.16
2.95
2.68
; p
High
Low
*3.4
3.8
2.94 •
2.66
2.66
2.73
2.95
3.41
3.17
2.95
2.69
2.75
2.96
3.43
3.19
2.95
2.68
2.75
2.97
3.44
3.21
2.96
2.72
'2.98
2.71
2.76
2.99
3.48
3.25
2.97
2.74
2.88
2.60
2.71
2.87
3.32
3.04
2.92
2.67
3.08
3.66
3.43
2.97
2.84
1.72
'£.73
26
"
1.77
8.9
8.4
7.7
6.0
5.6
5.7
*2.0
0.4
*2.3
1945-,.—
1.80
1945„:—
1.62
-
Total United States.
2,
1944—
•2 Years
May. 1,
1.85
1.98
L'These prices
coupon,
the
or
Illustrate
of yield
In
are
2.82
2.75
more
latest
2.88
3.14
computed from average yields
years)
movement
average
a
3.18
maturing in 25
averages,
tThe
2.74
of
comprehensive
and
do
actual
way
not
price
the
on
3.94
3.67
the basis of
one
3.00
2.87
DATA FOR RECENT WEEKS
either
quotations.
merely serve to
relative movement
relative levels
and
They
the
the
average
the latter being the true picture of the bond market.
complete
list of
bonds
Mr.
Said
part:
3.9
1.8
war-devastated
"If
he
President
the
to
-
Feb. 17
+
0.3
3,960,242
1,578,817
4,532,730
*—
0.6
3,939,708
1,545,459
1,726,161
1,718,304
authorized
is
0.2
3,946,630
1,538,452
1,702,570
0.5
3.^44,679
1,537,747
3,946,836
1,514,553
1,683,262
be
4,397,529
4,400,246
0.1
March 24
4,401,716
4,409,159
0.2
under
so
the
hostilities in
continuing
1,687,229
+
+
do
the Pacific.
1,706,719
4,425,630
to
Of course, he is also au¬
of
1,699,250
4,464,686
requires it,
to foreign countries on
1,512,158
4,472,110
the
because
war
basis
1,519,679
4,446,136
Europe for an
period
plies
3,948,749
March 10.___
—
1929
3,892,796
March"' 3—
+
1932
0.7
4,511,562
4,444,939
—
1943
0.9
4,472,293
_
_
determines
thorized to furnish necessary sup¬
% Change
over 1944
1944
4,524,134
4,473,962
a
Feb. 24
to
move
the act.
4,538,552
Feb. 10
Europe,
supply, and their redeploy¬
prosecution of the
4,505,269
3
in
American
>of
presence
in
tinue
1945
Week Ended—
statement
.■*'*.
"The
*
Grew's
-
that lend-lease supplies must con¬
(Thousands of Kllowfett-Hoursj
March 17
"typical" bond
purport to show
the ending of the
European part of the war there is
thought of arbitrarily stopping
lend-lease shipments to Russia.
,
week in previous year.
•Decrease under similar
Feb.
1943-
(3 U, %
level
3.08
Ago
1.5
re¬
no
additional
3.1
on
"Herald-Tribune"
ments.
7.6
6.1
—mm*
May 14. And
May 15, the
on
r
2.71
2.96
8.5
8.2
Pacific Coast*.
2.95
7.9
1 Year Ago
May
v+v
the
Wash¬
certainly require lend-lease ship¬
2.3
1.6
5.1
'
-
,
1.9
6.8
Rocky Mountain
9__,_
,,
Jan.
.....
4.1
*3.0,
:•:•;/•:
4.7
Southern States
1.69
York
from
ing military operation will almost
April 28
0.3
23
16
'
"Times"
com¬
to
ment in connection with continu¬
May 5
*0.5
3.8
England
'
light of
fact that despite
their
Week Ended
May 12
con¬
justified
are
advices
San Francisho
forces
PERCENTAGE INCREASE OVER PREVIOUS YEAR
2
r
by 3.1%
production of electricity by the electric light and
power industry of the United States for the week ended May 19,
1945, was approximately 4,377,221,000 kwh., which compares with
4,245,678,000 kwh. in the corresponding week a year ago and 4,302,381,000 kwh. in the week ended May 12, 1945.
The output of the
week ended May 19, 1945, was 3.1% in excess of that for the same
May 19
ship¬
Secretary of State Edward
R. Stettinius, Jr., emphasized the
the
Major Geographical Divisions-
such
ports,
Institute, in its current weekly report, esti¬
2.69
1.66
York
New
2.69
6
31
the
demands,"
in
Output for Week Ended May 19,1945
2.69
20_
3.33
in
and
peting
0.1
ington reported
2.68
2.68
they
0.4
poultry.
2.69
1.64
7
Mar.
and
New
2.69
2.72
9—
■
2.72
2.62
8
.
2.62
2.89
10
'
2.89
1.65
11
.
1.64
where
ments
Livestock
Dairy products
Eleclric
that
tion regarding the essential nature
of Soviet military supply require¬
0.1
—;
Decreases
1.0
State Jo¬
the basis of adequate informa¬
on
0.2
steel
2.68
14
•.
and
2.68
18
•'
Iron
0.2
Other farm products
Grains
2.59
17
16
Other
0.8
Corporate by Groups*
Baa
2.89
1.64
19
materials
building
1.2
_.
vegetables
Russia
to
tinued
0.4
and
Fruits
1.64
21
'
Increases
Lumber
Individual Closing Prices)
of
ments "will be reviewed and
Avge.
Daily
Averages
May 22___—_
BOND
(Based on
Secretary
seph C. Grew has stated regard¬
ing the future of lend-lease ship¬
ments
MAY
j
0.9
99.6
Manufactured products
Axis
inestimable
0.6
0
of
and
1.9
0
45,000
the
from
been
United
the
country's war effort
industry generally.
These
patents are available to American
nationals for a $15 license fee.
0.6
+ 0.2
0
93.5
Housefurnishing goods
0.1
+
+ 0.2
the
or
value to the
1.8
0.7
+ 0.1
:+
112.8
Semimanufactured articles——
0.4
+
93.3
Raw materials.—————-.—
Miscellaneous commodities
0
+ 0.4
0
103.8
117.0
0.6
by
seized
have
which
1.9
0
over
Government
patents
5.8
+ 1.0
0
taken
States
2.0
+
+ 0.5
0.1
+
83.7
104.3
-—0.2
97.3
-84.0
94.9
106.2
94.6
Bituminous coal
MOODY'S
7
the
on
1945
115.63
118.00
out
"Herald-Tribune"
5-5
2 Years A^o
May
Prop,
pointed
1945
" *
PERCENTAGE CHANGES
1944__
2,
was
5-12
1 Year Ago
May
York
1945
Commodity Groups—
116.22
1945
1945
Low
'•
man¬
property seized here did not in¬
clude a large fleet of Italian
ves¬
119.41
122.38
3
$,
New
the
115.24
115.43
Com'
At the office of the Alien
erty Custodian it
115.24
115.24
Potash
can
122.38
122.34
000
making
pany, a
122.38
7__
p
$10,000
a
states, that the gross value
'
8-.——
Corporation;
I
American
peroxide; the Scherirm
Corporation, a $6,000,000 pharma¬
ceutical business, and the
Amerf
'
9
the
hydrogen
*
WHOLESALE PRICES FOR WEEK
American
German
making
magnetos 'and
jet-propulsion devices; the But
falo
Electro-Chemical Companv"
a
$2,000,000
business
rationing, the Bureau of Labor Statis¬
tics will attempt promptly to report changing prices.
The indexes
must be considered as preliminary and subject to such adjustment
and revision as required by later and more complete reports.
The following tables show (1) indexes for the principal groups
of commodities for the past three weeks, for April 14, 1945, and May
13, 1944, and (2) the percentage changes in subgroup indexes from
May 5, 1945, to May 12, 1945.
119.41
...
-the
the
concern
trols, materials allocation, and
119.41
-,14
Bosch
report:
Avge.
Daily
Averages
been
of
Farbenindustrie;
stimulate production.
Department included the following notation in its
Labor
Lad
subsidiary
Douglas fir boards and dimension in order to
The
(Based on Average Yields)
u. s.
and
Prices for cast iron soil
on
MOODY'S BOND PRICESf
1945—
which
lighting materials, which rose 0.4% during the week.
pipe advanced when a 5% preferentialdis¬
count was eliminated by some sellers.
Average prices for lumber
advanced 0.4% due to OPA action in granting higher ceiling prices
for fuel
Moody's Bond Prices And Bond Yield Averages
••Thursday, May 24, 1945
CHRONICLE
THE COMMERCIAL & FINANCIAL
2320
"Deliveries
of
under
supplies
lend-lease
current
programs
will
immediately to take
adjusted
page
used
in
computing these indexes
was
published
202.
organized
of
i
Unchanged in May 12 Week
moved irregularly
during the week ended May 12, announced the U. S. Department of
Labor in its report issued
May 17, which further said: Lower prices
for certain agricultural
products were offset by higher prices for
bituminous coal and lumber with the result that the Bureau of Labor
Statistics all-commodity index remained
unchanged for the third
cortsqcutive week at the recent peak level, 105.7% of the 1926 aver¬
age.^ Since mid-April average prices for the commodities included
in the index have risen 0.2%
last year.
••.••
to
a
point 2% higher than at this time
'v'/--.'.:V ••"'
■
The Labor Department continued:
it/,®rarm Products and Foods—Led
by declines of 1.0% for grains
market prices for farm products
and 0.4% for livestock, primary
dropped 0.2% during the week.
In the grain markets oats declined
sharply and wheat slightly while corn and rye advanced.
Cotton
prices were up 0.2% over the preceding week.
Quotations were
lower for
prices
sheep and calves and for fresh milk at Chicago. In addition
lower for white potatoes in most markets and lemons
Higher prices were reported for apples and oranges
were
declined.
for onions.
and
Over the past
jifoducts have shown
than
1,679,589
account
4,408,703
1.8
3,889,858
1,465,076
1.633,291
resistance in Europe.
4,361,094
—
0.9
3,882,467
1,480,738
1,696.543
4,307,498
+
0.6
3,916,794
1,469,810
1,709,331
4,344,188
+
1.5
3,925,175
1,454,505
1,699,822
ply programs will also be designed
to meet new military situations
4,415,889
4,336,247
+
1.8
3,866,721
1,429,032
1,688,434
as
4,397,330
4,233,756
+
3.9
3,903,723
1,436,928
1,698,942
4,302,381
4,238,375
+
1.5
3,969,161
1,435,731
1,704,426
May 19——,,— —4,377,221
4.245,678
+
3.1
3,992,250
1,425,151
1,705,460
May 26_.—
4,291,750
3,990,040
1,381,'452
1,615,085
at
this
time
a
a
four weeks, average prices for farm
net advance of 0.5% to a point 5.8% higher
year
ago.
Food prices in primary markets rose 0.1% largely because of an
increase of 0.8% in the fresh fruits and vegetables markets and higher
prices for
rye
flour.
Since the middle of April prices for foods have
higher than in mid-May of last year.
risen 1% and were nearly 2%
Industrial
Commodities—The
recent
increase
granted
by
OPA
to bituminous coal producers continued to be reflected in the index
4,332,400
—1
April 21—_i—
jiEPrices for comm°dities in primary markets
also
1,480,208
4,329,478
4,321,794
7
April 14
Wholesale Prices
u
3,928,170
March 31__—______
April
ip, the issue of Jan. 14, 1943,
4,411,325
April 28
5
May
—
May 12
—
"/
—
—
-
against which American properties held by the Axis powers amount
to approximately $1,175,000,000, in view of which little inclination
been
expressed
Govern- <S>
in
"Herald Tribune" reports, $1,290,-
can-held property.
A breakup of the
$453,908,000
erty
held
in
here
York
was
the New
"Herald-Tribune," May
to show that
000,
stated
more
000,000 worth of American
:
11,
than $295,000,-
65%, belonged to
Germans; around $109,000,000, or
about 24%, belonged to Japanese,
and
or
about
or
a
little
6%,
ians.
was
The
more
than $27,000,000,
the property of Ital¬
remainder
was
-the
property of Hungarians. Romani¬
ans
and
Bulgarians.
"Lend-lease
has
been
the
United
Netherlands
as
the
countries—On
which is necessary to
victory
as
will
Allies—be it
to
Soviet
other
or
and
our
Union,
supplied
scale
final
effectively
achieve
speedily and
possible and with the least
cost
in lives."
prop¬
was sequestered in Germany;
$265,000,000 was seized in Italy;
$90,000,000 in Japan; $57,000,000
in Denmark; $40,000,000 in Nor¬
and
way,
the remainder in Rou-
mania, Hungary and Bulgaria.
Among
the
more
substantial
Moody's Daily
Commodity Index
Tuesday,
May
Wednesday,
Thursday,
Friday,
May
Monday,
formerly Axis-controlled business
Two
taken
the
here
that
by the
over
General
Corporation,
have
custodian
Aniline
a
been
and
$70,000,000
are
Film
Year
1943
stuff
and
chemical
organization
jjjjH,
18
May
19
—
+>'•
ago,
High,
High,
Low,
2?''
22
ago.
ago,
Low,
dye-
256.8
—
_____
May 21
weeks
Month
16
17
May
Tuesday,
interests
1945
15,
May
May
Saturday,
1944
In contrast to these figures, the
reported
is
——
ment circles to return the Ameri¬
,
Stettinius
Mr.
Kingdom, France, the
What disposal is to be made of the immense funds of Axis nation¬
als seized in the United States at the outbreak of war is a
question
which looms for Congress to decide.
Assets with a gross value of
$453,908,000 are under the control of the Alien Property Custodian,
has
Future sup¬
to have added:
the
Property Disposal Considered
end
they arise."
And
be
Alien
the
of
May 8
April
May
May
Jan.
25° ?
———
2A0/
1944__—__
20,
April
Jan.
-
21__
249.8
l_j
i
2
12
24.
:
257.1
2oZ'1
1945
I
THE COMMERCIAL &
FINANCIAL CHRONICLE
16K Number 4388
volume
2321
Weekly Goal and Coke Production Statistics
production of soft coal in the week ended May 12,
m
is estimated by the Bureau of Mines at 10,710,000 net
l945 is estimated by the Bureau of Mines at 10,710,000 net tons, a
tons,
1 creas< of 180,000 tons, or 1.7%, from the preceding week, accordrpase
i to the United States Department of the Interior. Output in the
bonding week of 1944 was 12,253,000 tons. The total production
Th
c0
total
The
J
and
rna
Jan. 1 to May 12, 1945 is estimated at 216,181,000 net
1 from
?f SeQfVdecrease
of 8.2% when compared with the 235,416,000 tons
Subtotals for the
roads, $3,824,000, and unclassified
construction, $9,842,000.
•
IS
public buildings,'"and unclassified
week in each class of construction
Time Estimated to
^u^r^?S'$2™; sewera§e> $686,000; bridges, $125,000;
mJwff
pubhc i•lJr?ln'r, $2>138'000; commercial buildings, $1,160,000; Reconvert Industries
buddings,^$8,970,000; earth work and drainage, $281,000; streets
".
Estimates of leading industries
the week totals $23,-
and municipal bond
$760,000 in corporate security
issues, and $17,500,000 in Federal
appropriations for
engineering plan preparation.
New construction
financing for the 20 weeks of 1945 totals
$492,688,000, a volume 18%
above the
$415,907,000 reported for the corresponding period a year
nroduced during the period from Jan. 1 to May 13, 1944. :7:®riO -;
Production of Pennsylvania anthracite for the week ended May
10
1Q45
as estimated by the Bureau of Mines, was 46,000 tons, a
a
vpase of 243,000 tons from the preceding week.
Due to the con? p<? strike of the hard coal miners, work was almost at a standstill.
Post-War Construction
Planning Volume $20.8 Billion
!fn pomnared with the output in the corresponding week of 1944
Identified and recorded
engineering construction projects pro5?^ was a decrease of 1,280,000 tons. The calendar year to date posed for construction
in the post-war
years total $20,813,431,000
s
shows a deci
of 20.6% when compared with the same period in according to reports 1 to > "Engineering News-Record" in the period
^decrease
1944.
v:-.
from
'lv'/
*•-
..
also reported that the estimated production of beehivp coke in
the United States for the week ended May 12, 1945
n:Z.pA o decrease of 6,800 tons when compared with the output for
+l!^ppk ended May 5, 1945; and was 19,900 tons less than for ihe
The Bureau
NET
IN
OP
BITUMINOUS
Daily
"Revised.
May 13,
1945
(In
Net
§May 5,
(May 12,
May 13,
May 12,
1944
1945
May 13,
-
May 15,
1945
1944
1937
289,000
1,326,000
44,000
277,000
1,273,000
19,296,000
18,523,000
24,289,000
23,317,000
21,580,000
20,501,000
125,800
132,600
145,700
2,128,600
2,894,900
1,400,600
1945
fuel
■(Commercial produc.
total
dredge
and
washery
'Includes
and
coal,
coal
shipped
by
tSubject to revision.
(Excludes colliery fuel.
operations.
the
volume
truck
from
ments and
round-lot
71
Industry—
Automotive-.—
Consumers
Durable
sewing
Domestic
electric
Goods
machines—
Dvision
6
stock
transactions
for
the
account
of
all
clocks, watches.
Mechanical refrigerators
Domestic laundry equipment
4
Electric
3
fans
Photographic
equipment
4.5
3
3
clocks,
12
12
3
watches
vacuum
4
cleaners—
lamps
electric
4
appliances
mowers, hand,
Wood furniture
household
tackle
Metal caskets and
0
May 5,
Apr. 28,
3
vaults
3
Trading on the Stock Exchange for the account of members
(except odd-lot dealers) during the week ended April 28 (in roundlot transactions) totaled
2,894,533 shares, which amount was 15.74%
of the
total transactions
of 9,191,790 shares.
This
with member trading during the week ended April 21 of
2,997,206 shares,
week
the Exchange
on
Exchange, member trading during the week
April 28 amounted to
or
12.28%
of the total
industrial
commercial
and
6.5
»
5
t
7
exchange of 1,960,295 shares.
During the April 21
was
14.85% of the total trading of 2,296,695.
,v
re-
frig. and air-cond. equip..
Beverage mach. equipment—
7
7
9,
7
9,
3
mach.
equipment
Sugar process, mach. equip._
Plumbing
and
Cast-iron
radiators
Cast-iron
Heating
sanitary
Commer.
7,000
0
'
2
128,000
146,000
156,000
1,000
1,138,000
1,464,000
1,405,000
509,000
537,000
523,000
'
Iowa
41,000
42,000
120,000
Maryland
1,033,000
344,000
395,000
33,000
Michigan
2
^
dishwashing mach.
heating
(lignite)
2
136,000
1,000
(Includes operations
Specialists:
1,882,000
2,165,000
1,083,000
192,000
124,470
12,240,000
the
than
and
trades
0
1
0
1
0
1
Publishing
Division
mach
6
Barber
beauty
appl'ces.
and
37,300
352,200
machines
Laundry
314.900
Office
Total purchases
260,846
—
Short sales
.—
(Other sales
equipment
4
3
3
machinery
0
3
1
3f
The
195,720
1,296,227
(Other sales
1,000 tons.
Commission
1,402,586
—-—.
—
Total sales.
1,491,947
.
Securities
and
Exchange
public ? on
May 16 a summary for the week
ended May 5 of complete figures
showing the daily volume of stock
3.58
*
Total purchases.
—
Short sales„-____—
N.
Round-Lot
Total
Stock
Sales
Transactions
the
on
for
WEEK
made
for
transactions
15.74
New
Account
ENDED
York
of
Curb
Members*
APRIL
Exchange and
Stock
ists
(Shares)
I.
28, 1945
Total Round-Lot Sales:
; 7,7
Short sales
odd-lot
account
3.
Round-Lot
contracts
lower than in the
Preceding week, and 17% below the
previous four-week moving
exceeds the volume for the
corresponding 1944 week
/
?/° according to "Engineering News-Record." The report issued
*n
May
17 went
on
Pp.'
,
vvpob^
v,_pi
eck
*
1.
is
down 26%
a
year
ago.
'
and the
current week are:
volumes for
the
1944 week, last
257.3
256.8
256.3
250.1
249.8
240.2
257.1
252.1
Total
tt
'
construction—
Puhlil6 construction
blic
______
construction
Foril ai
aeral
Number
36,135
Number
Dollar
j/-
Total sales
37,935
i—^...i^
■»———
Total
3.
municipal
9,724,000
17,183,000
6,716,000
10,467,000
•
bi the
classified
$26,907,000
construction
cla6^are *n wa*er works,
ssiued
construction.
groups,
May 10,1945
$38,910,000
4,208,000
34,702,000
11,902,000
22,800,000
211,025
—
gains
over
5,389,000
20,138,000
the preceding
Gains
over
the
1944
week
are
in
water
A
other
sales
30,644
total
sales
30,885
sales
sales—_
Customers'
12.28
short
other
total
Dollar
8,143-
838,225!
sales
value
$32,064,626;:
Round-Lot Sales by Dealers—
77,277
Total purchases—
Total sales
•The
'lrms
term
their
and
tin
•
"members" Includes all
partners,
calculating
these
and
regular
<
the
total
of
65,343
are
short sales which
included with
{Sales
marked
are
exempted from
"other sales."
"short
their
purchases
exempt"
are
restriction by the
•
Included with "oth* sales."
and
sales
reason
is
that
20Q
200,250
200,450
sales
Round-Lot Purchases by Dealers:
Number
:ompared with twice the total round-lot volume on the Exchange for the
he Exchange volume Includes only sales.
rules
Total
associate Exchange members,
members'
'
(Other sales
including special partners.
percentages
: "■
..
Number of Shares:
77,277
——
241
830,082
Short sales
(Round-lot
sewerage, commercial buildings, and un-
v
sales--—
Customers'
0
—
-I
,
short
■^Customers'
13,015
Odd-Lot Transactions for Account of Specialists—
May 17,1945
$29,049,000
3,52.2,000
25,527,000
$36,858,214'
>(i)
f)
Number of Shares:
198,010
i
.
30,003
891,852
....
Customers'
270,335
—
Short sales—
(Other sales
"7
7
shares
•Customers'
2.49
7-7-
.
purchases
of
For Week-
—
Customers'
38,240
Total—7,/:""'.'
.
Total
orders—
customers'sales)
40,840
Y.
1945
7
Number of Orders:
2,600
Total sales
4.
5,
May
of
value
ODD-
N.
EXCHANGE
Ended
Odd-Lot Purchases by Dealers-
56,655
purchases
(Other sales——,
,
2.66
Other transactions Initiated off the floor—
Short sales
-
THE
THE
(Customers' purchases)
1,800
Customers' short sales
May 18, 1944
o
Priw
7.13
ON
Odd-lot Sales by Dealers
{Customers' other sales
256.9
256.9
STOCK
FOR
ODD-LOT DEALERS
SPECIALISTS
Week
66,380
Total sales
construction
257.0
257.1
132,250
,
ACCOUNT OF
AND
ago.
256.8
256.3
LOT
the floor—
purchases—
Short sales
?or,J;esPondmg week last
year
147,300
•
Total sales
3.
Exchange, con-s
series of current figured
TRANSACTIONS
123,635
Total
$629,-
11% below the $706,134,000 reported
year.
Private construction, $178,tinn
<m§reater than in the 1944 period, but public construcvolnm
£ '°00, is down 17 % due to the 23% decline in Federal
thanT'
tate and municipal construction, $86,488,000, is 21% higher
man a
nnn
i
iots on the>
odd
Stock
,
STOCK
8,615
Total
to
Members:
are
Other transactions initiated on
compared with a week
1945 volume
1,960,295
of
Account
(Other sales
7
current week's construction brings
for
Short sales
forthe 2(Myeek period,
411
Transaction
registered—
Total purchases
2.
week
i
Transactions of specialists in stocks in which
they
t°Ps a year ago by 48% as a result of the 92% gain in
yohime. Federal construction, however, is 12% below last
Private work is 16% and 64% lower, respectively, than a
ago and
1?1
American
to say:
work for the
1,943,630
Total sales
a
special,-,
being published by the Commis¬
sion. The figures are based upon
reports filed with the Commis¬
sion by the odd-lot dealers apd
specialists. 7
'
»•
16,665
(Other sales.
tates totals
1%
handled
York
tinuing
Total for week
*
——
who
New
*
construction by
military engineers abroad,
utside the
country, and /shipbuilding, is 25%
i
OdJEoT Trading
363,117
Total—
Constriction
ne
3
^
—
.____—
NYSE
33,950
.
—
397,067
engineering construction volume in continental United
$29,049,000 for the week.
This volume, not including
I777;
2
2
Typewriters
391
1
registers
Floor
of all odd-lot dealers and
Civil
*:
-
3. Other transactions initiated off the floor—
11,854,000
Volume $29,049,000 for Week
,.8
Equipment
Cash
Total sales.
& W.J C. & O.; Virginian; K. & M.; B. C. & G.;
Mason, and Clay counties.
(Rest of State, including
Grant, Mineral, and Tucker counties.
§Includes Arizona
and
8.25
367,000
tOthersales__-______^_-___—
4.
on
Printing
the floor—
on
185,000
10,890,000
3
furnaces
printing
774,740
Short sales
959,000
170,000
2
2
—
618,210
Other transactions initiated
2,150,000
1,030,000
'
3
1
0
)
Total purchases
29,000
3
0
(plumbers'brass spec.)
septic tanks
Warm-air
742,680
2.
381,000
24,000
0
boilers
Service
142,000
370,000
steel
trim
Steel
.,,7.
,
0
i_
stokers
Oil burners
-7
7
indus¬
burners
gas
Low-pressure
Odd-Lot
Short sales
& ?• in Kan£twha,
"Less
of
2
.
Plumbing-fixture fittings and
1,000
Panhandle District
Oregon.
Accounts
and
specialties
Members,
(Other sales
2,000
138,000
332,000
_
Odd-Lot
1
ware.
Heating controls and heating
267,880
Account of
they are registered—
"Total purchases-—-—
.7.
152,000
1,000
gOther Western
States,
and
•
692,000
25,000
*v? £n uhe
ine
and
2,939,000
133,000
Total bituminous &
lignite
trial
1. Transactions of specialists in stocks in which
33,000
782,000
127,000
7
Dealers
the
for
heaters
sanitary
conversion
41,000
41,000
.
2
water
steel
1945
83,000
2,968,000
^
Virginia—Southern\—
28,
8,923,910
for
2,000
v
30,000
34,000
Texas (bituminous &
lignite)
Utah
(West
Stock
Electric
Formed
Round-Lot
Total for week
Round-Lot Transactions
35,000
2,000
2,710,000
IWest
Virginia—Northern——
Wyoming
APRIL
^
Except
■
660,000
;
and
(Shares)
9,191,790
3.
971,000
85,000
30,000
Ohio—
Virginia
Washington
Exchange
Members*
Mechanical
326,000
•
38,000
3,000
68,000
Montana (bitum. & lignite)
New Mexico
Tennessee
Stock
of
(Other sales
158,000
916,000
.<*
Pennsylvania (bituminous)
ENDED
Short sales
43,000
109,000
Kansas and Missouri
North & South Dakota
York
1,000
——
ti*.
New
Account
Total Round-Lot Sales:
84,000
Georgia and North Carolina
Kentucky—Eastern
Kentucky—Western—^
the
for
7;
equip¬
electric)
Domestic cooking and
Gas
6,000
78,000
Colorado
-i
on
WEEK
7,000
Arkansas and Oklahoma—:
Indiana
Sales
Transactions
356,000
80,000
Alaska
Illinois
Stock
Round-Lot
«*
0
—
cooking
(not
i
enameled
_•
Commercial
f)
Division
boilers
Cast-iron
ment
trading for the account of Curb members of 682,175 shares
ind.
7.
Equipment
Tobacco
ware
that
on
481,360 shares,
("4 fy
>
0
General
531
3
3
6.5
instruments
13.64% of the total trading of 10,988,000 shares.
or
1944
362,000
379,000
Alabama
6
1.
V
.
May 6,
1945
1945
State—
il2
2
reels
3.5
r
7
Total
Week Ended
■
3
3.5
furniture
and
,
6»
-
3
power.
Pianos
being published weekly by the Commis¬
shown separately from other sales in these
are
4
3
stoves
'
6
>
0
___
furniture
Lawn
Metal
12
3
office
Fishing
v,;7>
6
Band
sales
9
t
7
Bicycles
Short
volume
IN NET TONS
final annual returns from the operators.)
,
>9
5
ranges
Nonjeweled
Sealed-beam
May
ity Rate
'15
g
Domestic
;
'"
c(ipac-
mum
Rate
3
On the New York Curb
{Revised.
weekly estimates are based on railroad carloadings and river ship¬
subject to revision on receipt of monthly tonnage reports from district
are
of
authorized
current
and State sources or of
quoted below:
,
Bedding industry
OP BITUMINOUS COAL AND LIGNITE,
WEEKLY PRODUCTION
BY STATES,
iThe
"Times,"
Mini,
to
as
Washington report, May
members of these
exchanges in the week ended April 28, continuing
a series of current
figures
ended
ESTIMATED
a
are
Small
on
figures showing the volume of total round-lot stock sales on the
Stock Exchange and the New York Curb
Exchange and
compares
Beehive coke-
United States
Exchange Commission made public
figures.
Calendar Year to Date
46,000
anthracite—
reconvert
production,
sion.
Tons)
Week Ended
—
from
16,
of months that
to
goods
Domestic
New York
1944
PRODUCTION OF PENNSYLVANIA ANTHRACITE AND COKE
ESTIMATED
"■Total incl. coll.
tMay 12,
New York Exchanges
on
The Securities and
12,253,000 216,181,000 235,416,000
2,042,000
1,916,000
2,060,000
.1
tSubject to current adjustment.
average
Penn.
1944
1,815,000
1,785,000
Trading
AND
16
May 13,
10,890,000
10,710,000
COAL
Jan. 1 to Date
1945
1945
mine fuel—
needed
in the New York
given
Metal
TONS
"■May 5,
May 12,
coal & lignite-
be
civilian
Jeweled
PRODUCTION
united states
LIGNITE
Total, including
of
volume proposed, and on
$1,277,188,000 worth, of projects
all financing
arrangements have been completed.
total
will
Flatware
Week Ended
Bituminous
or
1944.
corresponding week of
ESTIMATED
Jan.
1, 1943 through May 10, 1945. Plans are under
way
completed on post-war projects valued at
$8,857,772,000, 42%%
the
to the number
as
T?P.ital f<}r construction purposes for
coii MonIaa ,made up of $5,043,000 in State
saies,
nnn
♦Sales
261,930
shares
of
marked
"short
exempt"
are
re¬
ported with "other sales."
(Sales to offset customers' odd-lot orders
Commission's
and sales to liquidate a long
is
less
"ether
than
a
sales."
round
lot are
position which
reported witb
pre¬
Thursday, May 24, 1945
CHRONICLE
COMMERCIAL & FINANCIAL
THE
2322
antimony
Daily Average Crude Oil Production for Week
Ended May 12,1945 Increased 31,000 Barrels
Institute estimates that the daily aver¬
The American Petroleum
|
week ended May 12, 1945, was
increase of 31,000 barrels per day over the pre¬
gain of 358,215 barrels per day over the corre¬
crude oil production for the
age gross
4,860,215 barrels, an
ceding week and a
The current figure, however, was 6,285 bar¬
daily average figure recommended by the Petroleum
for War for the month of May, 1945.
Further details
Commodity
National Fertilizer Association
;
>
The National
140.3 from 140.2 for the pre¬
ceding week.
A month ago the index stood at 140.3 and a year ago
at 137.2, based on the 1935-39 average as
100. The Association's
19, 1945, advanced to
the week of May
report added:
products group advanced
The farm
.
.
*
Allow-
Week
Change
from
Ended
Week
Ended
dations
ables
Begin.
Ended
May 12,
Previous
May 12,
May 13,
Total Index
May
May 1
1945
Week
1945
1944
25.3
•P. A. W.
Recommen-
4 Weeke
274,000
__
265,450
950
90,000
91,000
+
800
370,100
+
17,750
1,000
Nebraska
Texas
10.8
Miscellaneous
137,150
8.2
7.1
353,900
307,050
6.1
564,300
519,850
1.3
Chemicals
71,100
Louisiana
Louisiana
Coastal
71,100
297,400
.V'b;-
.3
74,850
-Indexes
79,600
Mississippi
53.000
Alabama
I ldrida
450
205,000
53,500
41,100
13,000
400
15
11,100
204,700
11,400
11,600
350
—
Ky.)
67,200
-
_
....
—
47,000
Wyoming
Calif
of
20,000
4,550
46,850
250
107,050
81,600
20,500
+
21,400
—
10,600
10,500
East
71,400
26,950
20,850
400
113,930,215
+
+
§947,000
947,000
10,250
23,200
930,000
3,919,500
52,100
r
8,100
104,350
—
103,900
105,000
'105,000
California
63,800
850
—
50,300
Colorado
Mexico
450
—
107,500
23,000
_
_
...
Montana
Total
26,850
112,000
Michigan
New
63,250
31.000
_
_
112,050
3,901,115
3,670,500
7,800
921,950
831,500
+31,000
4,823,065
of
be
to
114,860,215
anu
oil only,
crude
derivatives
gas
4,866,500
iLLuumwuuftuuuo
»».
production
otiitc
and do
amounts
of
4,502,000
represent;
aoove,
Miuwn
ub
auuwauica,
include
not
condensate
uie
natural
and
produced.
for week ended 7:00
are
required to shut down as best suits their operating schedules or labor needed to
operate leases, a total equivalent to 6 days shutdown time during the calendar month.
iiWeek
CRUDE
of
RUNS
AND
i
n;:
,
May
5
TO
Conservation
of
Committee
revised downward
STILLS;
UNFINISHED
of
California
10,000 barrels
PRODUCTION
GASOLINE,
GAS
OF
to
GASOLINE;
OIL
AND
Oil
Producers.
figures
some
STOCKS
12.
May
as
OF
(Figures in
•
thousands
Figures
of
in
estimate
and
barrels
of
42
-Bureau
of
Mines
was
dull
prices."
Refining
on
East
to say in part:
Appalachian—
'•
.
733
dropped
from 218,488 tons
in March to
161,111 tons in April. The industry
is prepared for a further shrink¬
age- this month and next.
Buy¬
ing last week was slow.
of
Deliveries
copper
Holding that there have always
ample supplies
nine domestic
a
producers have filed
brief with the House Ways and
Committee
opposing
Mili¬
40 import tax on copper.
tary and
vilian
Grade
Ci¬
Blended
Fuel Oil
Fuel oil
Other
1,969
5,893
5,604
5,963
7,402
.
65.8
249
317
183
1,103
1,212
64
128.0
219
103
142
529
955
Trd.; 111., Ky
Okla:; Kans., Mo._;
87.2
814
95.0
2,904
3,995
1,717
6,464
15,724
78.3
392
83.6
1,393
1,794
1,172
2,036
59.8
245
74.2
970
from
352
835
1,279
1,639
89.3
1,148
92.8
3,752
5,921
5,912
9,164
5,291
Louisiana Gulf Coast-
96.8
244
93.8
703
1,529
1,386
No.
55.9
87
69.0
226
692
219
2,354
.'V
1,974
936
1,767
Rooky, Mountain—
District No. 3
17.1
12
92.3
District No. 4———
72.1
100
62.9
386
279
589
529
1,835
85.8
910
91.5
2,330
8,101
21,153
10,407
3,997
California
36
20
36
20
52
Imports
Canada, South America, and
Africa,
at the
Trade
statement submitted
hearings on the Reciprocal
Agreements
Act " states,
the
May
12,
85.6
89.3
4,850
U
May
5,
1945-
85.6
15,137
5.1
4,786
28,996
38,948
*40,784
May
13,
•Includes
14,846
5!!Lle currently
na
fto.cks
gasoline
forces
this
may
4.431
and
28,800
13,400
military
39,503
41,620
49,721
grades,
30,755
50,505
and
unfinished,
finished
37,526
title
50,148
to
which
! *name °S the Prodhcing company; solvents, naphthas, blending
Indeterminate
week,
compared
an7 £aso*lne
actually
refineries,
at
barrels
of
kerosine,
barrels
of
residual
bulk
have
in
terminals,
oil
11,907,000
use,
and
barrels
11,307,000
a
year
custody
in
transit
barrels
of
produced
their
own
or
and
in
pipe
lines.
gas
oil
and
during
the
or
leased
These
ended
unfinished
figures
do
which the military
storage.
§Not
distillate
week
barrels
ago.
which title has already passed,
in
4,749,000
fuel
ultimate
to
as
with
tStocks
including
fuel
Mav
oil
12
and
at
1 496 000
9!61o'000
1945
which
comjiares with 1.437.000 barrels, 4,695,000 barrels and 9,238,000 barrels, respectively
in
the
in
a
on
States
the
struggle
part
of
for
many
Copper
producers.
Copper
Coppermines;
Miami; Phelps
Dodge; Quincy Mining; Shattuck
Denn, and Tennessee Copper.
Range;
Magma;
Lead
,
With
the
date
for
barrels
and
8,436,000
fl-7QNnnrtTSt0C,kS a week earlier Mfty 12' 1945 amounted ta 7,821,000 barrels,
of ke™sine .at
and
5,878,000 barrels
52.000
Chinese,
7,127,000 barrels
a
year
before.
barrels
as against
-
99 % tin, continued
pound.
or
at 51.1250 per
Quicksilver
-
164.7
160.1
144.4
over
130.4
130.1
last
here
•
4 In
the immediate outlook, prices
week ' were
unsettled
both
133.7
133.7
132.2
156.8
156.6
152.1
104.7
104.7
104.7
104.4
Quotations in New York covered
154.4
154.4
153.4
a
125.4
125.4
127.7
118.3
118.3
117.7
and
the
on
Pacific
Coast.
of $154 to $157 per flask,
range
$2 lower than in the preceding
week.
Though
importers have
or
119.9
119.9
119.7
104.8
104.8
104.3
been
140.2
140.3
137.2
Spanish metal for May shipment,
duty paid, New York, the price
1945, 109.2, and
109.3; May 12,
$155
asking
viewed
was
basis
metal
on
for
nominal.
that the SI 55
shaded
be
afloat.
largely
as
hinted
was
flask
per
now
of
production
Though
quicksilver in Italy has resumed,
there have been no offerings of
metal here from that quarter.
According
to
for
was
flask, f.o.b. Coast.
duction
quicksilver
$150 per
Current pro¬
shipment
May
from
dispatch
a
San Fraricisco May 15,
estimated at rate of
was
3,200 flasks a month.
U. S. Gold Production
production
soon
as
^
metal
as
is
8,648 tons.
Zinc
oz.,
to be released for
approaching (May 18), con¬
sumers again purchased about all
of the lead that producers cared
to
sell.
The stockpile has
in¬
The supply situation in Special
IJigh Grade has eased as a result
reduced
requirements.
war
London
"It" a steady rate, with
hope
The
that galvanizers will be in a po¬
sition to take larger tonnages of
eign
silver
with
domestic
this
grade
as
released
is
duction
soon
some
more
of
pro¬
grades)
at
present exceeds shipments to con¬
sumers.
Manganese Ore
Press reports from
Havana state
that
in
purchases of manganese ore
Cuba by agents of the United
States
after
continued
ganese
June
be
15
dis¬
Man¬
required for the war
will be acquired after
through private firms.
ore
program
that date
Production
sium
will
Government
of
primary magne¬
during February
amounted
to
5,960,000
pares
with
lowest
the
in
since
volume
1942.
Recovery of magne¬
sium from secondary material in
June,
February
was
2,116,000
in January.
pounds,
;
situation in antimony
owing
demands
for
to
the
the heavy
oxide
used
of¬
war
ex¬
authorities in Washington still re¬
112
and
nothing is heard about easing
restrictions.
Pigment makers
particularly anxious to get into
tensively
in
again has been amended,
questing
as
to
type
metal
that
their
purchasers
need for
of antimony.
are
required
continued
25.%d.
at
for for¬
44
at
metal at 70
Freight Cars and Less
Service
Locomotives Put In
re¬
certify
particular
Users
to
of
the
substitute
; :v44
;:>v
5,350 hopper,
May 28.
,
included
This
5,-
363
gondolas,
1,332 flat,
plainbox, 1,800 automobile, 2,188
refrigerator, and 37 stock freight
and
cars
cars.
miscellaneous
50
the roads had
36,272 cars on order and on May.1,
1944 the total was 44,458.
On
April
last,
1,
They also had 554 locomotives
order on
May 1, this year,
on
which
tives.
1944
125, steam,
included
electric,
and
Diesel
locomotives,
705
included
two
one
electric
475
year ago.
16,314
first
in service in the
cars
months
this
year
compared
period
in the
10,062 in the same
Those installed
last year.
first
whicn
and
The Class I railroads put
freight
two
Diesel locomo¬
on order May 1>
427
The total
was
four
this
months
year
in¬
5,190 hopper, 2.623 gon¬
66 flat, 202 stock, 344 re¬
cluded
dola,
frigerator, 447 automobile
7,422 plain box freight cars.
They
tives
also
in
months
and 42
a
May 1,
1945, had 33,727 new freight cars
on
order,
the
Association of
American Railroads announced on
with
continues, according to WPB
ficials,
More
four
Antimony
The tight
Official
York
New
The Class I railroads on
,
4:
silver .market was
unchanged
and
steel
Total
as
by WPB.
zinc
(all
creased
gard the supply situation as tight,
in
oz.
Silver
The
quiet
the production of
flame-retarding paints and similar
products. Conservation Order M-
slightly in the last month,
being estimated at 70,000 tons, but
66,903
against
n
tonnage
June
are
69,874
March
in
February, and 83,809 oz. in March
last year, according to the Amer¬
ican Bureau of Metal Statistics.
''
*
gold in the United
amounted to
Production of
States
gales of lead during the last
week amounted to
determining
the
preceding week and 1,689,000 barrels, 4,714,000
respectively, in the week ended May 13, 1944.
f
52.000
163.5
was
the
1944
aviation
52.000
16—,—• 52.000
130.4
solidated
existence
United
49,166
S. Bur. of Mines
basis
52.000
159.9
Total U. S. B. of M.
basis
52000
52.000
52.000
163.3
against 2,508,000 pounds (revised)
1945
52.000
52.000
15-______
213.1
producers participating in the pro¬
test are: Calumet & Hecla; Con¬
result
Total U. S. B. of M.
basis
"
14.52.000
the absence of important
business, and general uncertainty
pounds, which com¬
7,697,000 pounds in
January, according to the Alumi¬
num
and Magnesium Division of
WPB.
Production
in
February
would
7,318
lipand
& Arkansas
any
dual
96
La.
of domestic
tStocks tGasoline Stocks
76.8
Gulf Coast
52.000
May
156.7
available for this purpose.
to meet all peacetime re¬
of Resi¬
81.2
Texas
May l2--——,_
Prime Western continues to move
of
1
Texas
~
& Dist.
District No. 2
District No.
Copper
Gas Oil
tStocks
93.3
erated
age
52 000
199.7
Markets," in its issue of May 17,
of
at Ref.
porting
99.5
52 000
52.000
155.0
lower
duction
to Stills
ity Re- Aver- % Op-
Coast
at
publication further
Inc. Nat.
Pro-
Capac- Daily
District—
" 52.000
52.000
expand- $>
an
legislation which may make pos¬
sible any reduction in the existing
% Daily Crude Runs
\/
with
available
and
The
Means
basis—
July
52.000
11-L^IL
163.1
19, 1945,
quirements 4 at reasonable prices,
gallons each)
section include reported totals plus an
unreported amounts and are therefore on a
June
.
10__T
May
It
and at Painesville
Ohio.
Quicksilver
Texas,
Luckey,
copper
§Gasoline
i
May
May
166.5
Metals—Copper Sales for June
amended to cope
AND
this
of
un¬
Straits quality ;4tin for
shipment, in. cents per pound, was
nominally as follows:
changed.
211.4
—
May
were:
ing demand for the oxide. Mag¬
nesium production
was
ordered
increased at DPC plants at Va-
FINISHED
FUEL
"
remains
.
been
DISTILLATE
RESIDUAL FUEL OIL, WEEK ENDED MAY 12, 1945
.
base
May 10, 1945,
a.m.
is the net basic allowable as of May 1 calculated on a. 31-day basis and
includes shutdowns and exemptions for the entire month.
With the exception of
eeveral fields which were exempted entirely and of
certain other fields for which
thutdowns were ordered for from 2 to 14 days, the entire state was ordered shut down
lor 6 days, no definite dates during the month being specified; operators only being
>:
tin
"
of
163.1
of control measures by WPB during
"Easing
?This
SRecommendation
price
166.6
the last week
were
numerous, but changes announced, with few exceptions, in¬
volved items that do not loom large in consumption of non-ferrous
metals.
Buying of both copper and zinc for June delivery was slow.
Lead continued
in
steady demand.
Antimony restrictions were
went
tOklahoma, Kansas, Nebraska figures
.
reports.
The
140.3
"E. & M. J. Metal and Mineral
lesco,
'
Total United States
stiute
138.5
Light—Lead Demand Steady—Quicksilver Off
stated:
incl. 111., Ind.,
(Not
Non-Ferrous
50
199,750
—
■
+
Eastern—
Kentucky
against 573,533 tons in
the January-March period of I944
the American irott arid Steel ihtons,
145.2
v
150
50
3.050
+
197,550
Indiana
80,300
650
15
'.
r
_
79,750
—
300
_
-
___
l.linois
200
—
54,250
80,000
.
057
104.8
combined
1926-1928
106.9.
1944,
20.
1944
357,950
368,500
150
+
4, 444's
;
of tin-plate in the
first quarter of 1945 totaled 733
*119.9
Machinery
groups
on
+''"4*4 "'' *
Shipments
could
78,786
Arkansas
All
100.0
May
370,900
400,800
360,000
Louisiana-
Total
Drugs
Fertilizers—1
Farm
283,100
150
+
299,800
—
and
Materials
Fertilizer
.3
North
**
.3
1,995,500
1945:
118.3
Building Materials
563,300
2,171,600
can
manufac¬
second- quarter
of
the
125.4
Metals
1:2,176,150
in
turers
154.4
Textiles
364,100
11355,650
2.170,000 12,170,717
additional steel
no
157.1
~
Total Texas
Committee that
May 20.
1
141.9
145.3
133.7
Commodities
140,100
——
Man"
Industry Advisory
160.2
Fuels
378,950
Texas
ufacturers
130.4
138,200
Texas'—1
Coastal
stringent, WPB in¬
163.8
379,800
Texas
Fast
South
more
214.6
—i
17.3
429,150
492,400
495,300
Vest Texas
Central Texas—
become
formed members of the Can
163.1
Livestock
147,200
151,950
44'.
:,4: ':44;;.'
*
Holding to the view that the
supply situation in tin is likely to
166.8
Cotton
153,900
Texas
East
.
Oils
Products
Grains
Panhandle
or
;
>'
145.3
\
141.5
145.3
Cottonseed Oil
Farm
23.0
1
North
and
Fats
333,550
278,000
900
f385,150
t270,900
367,500
269,400
367.500
Kansas
t900
90,000
Oklahoma
44
May
AgO
-
1945
1945
1945
141.6
Food
Ago
Apr. 21,
May 12,
May 19,
Group
the
Bears to
■
Week
Week
Each Group
Year
Month
Latest Preceding
»
%
Actual Production
•State
metal
May
1935-1939=100*
PRODUCTION (FIGURES IN BARRELS)
AVERAGE CRUDE OIL
DAILY
.
Association
Compiled by The National Fertilizer
'
\
the
,
possible.
will be. allocated to
Al
-
fractionally with trie cotton
rels below the
subgroup showing a slight increase; the grains subgroup advancing
with higher quotations on corn and rye; the livestock subgroup ad¬
Administration
vancing with the slightly lower quotations on good cattle and milk
as reported by the Institute follow:
more than offset by the higher quotations on lambs, sheep, and poul¬
i Reports received from refining companies indicate that the in¬ try. Hay prices showed a decline. The foods group advanced slight¬
dustry as a whole ran to stills on a Bureau of Mines basis approxi¬ ly because of higher prices on potatoes; the metals index was un¬
changed although the quotation on; steel $crap. was slightly-lower.
mately 4,850,000 barrels of crude oil daily and produced 15,137,000
The textiles index advanced fractionally, v All other groups in the
barrels of gasoline; 1,496,000 barrels of kerosine; 4,749,000 barrels of index remained unchanged.
/'.v'YV'":
distillate fuel, and 9,610,000 barrels of residual fuel oil during the
During the week 7 price series in the index advanced and 5
declined; in the preceding week there were no advances and 8 de¬
week ended May 12, 1945; and had in storage at the end of that week
clines; in the second preceding week there were 6 advances and
40,166,000 barrels of civilian grade gasoline; 40,784,000 barrels of
3 declines.
I
military and other gasoline; 7,821,000 barrels of kerosine; 28,996,000
WEEKLY WHOLESALE COMMODITY PRICE INDEX .
_■
barrels of distillate fuel, and 38,948,000 barrels of residual fuel oil.
sponding week of 1944.
for
;
by
for
weekly wholesale commodity price index compiled
Fertilizer Association and. made public on May 21,
The
ores
wherever
Tin
Advance
Price Index Shows Small
oxide
put
service
of
55 new locomo¬
the first four
in
which
were
box,
13
Diesel.
were
steam,
New locomo¬
tives installed in the same
period
191, which in¬
cluded 32 steam and 159 Diesel.
last
year
totaled
THE COMMERCIAL &
FINANCIAL CHRONICLE
Number 4388
161
Volume
1.2323
k
Freight Car Loadings During Week
Revenue
Total Loads
Railroads
freight for the week ended May 12, 1945,
totaled 1838,507 cars, >the Association of American Railroads an¬
nounced on May 17.« This was a decrease below the corresponding
week of 1944 of 28,675 cars, or- 3:3%i,and a decrease below the same
week in 1943 of 10,525 cars or 1.2%.
Loading of revenue freight for the week of May 12 decreased
Loading of revenue
24,892 cars, or
2.9% below the preceding week.
the preceding week, but an increase of 6,680 cars
above the corresponding week, in 1944.
Loading of merchandise less than carload lot freight totaled
108 474 cars, a decrease of 4,313 cars below the preceding week but
an increase of 1,852 cars above the corresponding week in 1944.
13181 cars below
amounted to 139,492 cars,
decrease of 3,850
a
:
*
'
1945
v
cars
preceding week, and a decrease of 38,169 cars below the
corresponding week in 1944.
Grain and grain products loading totaled 49,498 cars, a decrease
below the
2,835 cars below the preceding week but an increase of 9,487 cars
above the corresponding week in 1944.
In the Western Districts
1944.
1943
1945
1944
Alabama, Tennessee <fc Northern..
Atl. & W. P.—W. R. R. of
Ala.,
410
362
282
336
882
924
678
Atlanta, Birmingham & Coast.
2,776
837
803
1,390
1,720
13,021
10,243
10,082
4,144
4,659
5,413
523
1,524
Atlantic Coast Line
Central of Georgia
'
11,817
.
13,127
3,710
Charleston & Western Carolina..
509
Clinchfield...".
4,047
,
1,687
Columbus & Greenville
Durham & Southern
yy
466
,
1,790
1,634
210
132
121
1,978
2,747
1,966
479
1,836
2,861
'
330
112
Florida East Coast
223
:
■
;
570
206
1,248
1,483
62
37
46
160
182
1,105
1,115
2,430
2,773
...._ZZZ
316
457
••'y
687
4,345
3,676
4,067
4,322
30,049
26,202
18,369
19,935
27,115
■
369
5,189
28,154
Illinois Central System
Louisville & Nashville
26,393
26,687
12,687
13,014
Macon, Dublin & Savannah
205
Mississippi Central
427
Nashville, Chattanooga & St. L
156
206
785
1,093
1,002
259
228
506
630
3,242
3,252
4,655
4,621
•.,
3,495
Norfolk Southern
984
986
1,170
Piedmont Northern
1,558
446
381
357
1,243
1,163
Richmond, Fred. & Potomac
535
427
4 lO-
11,722
Seaboard Air Line
11,527
11,210
11,063
ll,320
8,278
9,345
Southern
System
yyy^
1,693
25,182
23,799
22,353
26,203
26,221
Tennessee Central
618
777
542
739
865
Winston-Salem Southbound
147
157
128
1,000
1,006
127,496
127,519
122,344
121,224
127,107
Total
The
Livestock loading
amounted to 16,027 cars, a decrease of 1,302
but an increase of 318 cars above
the corresponding week in 1044.
In the Western Districts alone
loading of live stock for the week of May 12 totaled 12,330 cars, a
decrease of 1,647 cars below the preceding week, but an increase of
375 cars above the corresponding week in 1944.
below the preceding week
loading totaled 42,926 cars, a decrease of 126
cars below the preceding
week and a decrease of 4,281 cars below
the corresponding week in 1944.
Forest products
75,083 cars, an increase of 1,381 cars
week, but a decrease of 4,469 cars below the
corresponding week in 1944.
loading amounted to
Ore
the preceding
above
1945 settlement
Chicago & North Western
Chicago Great Western
Chicago, Milw., St. P. & Pac
Chicago, St. Paul, Minn. & Omaha__
Duluth, Missabe & Iron Range
Duluth, South Shore & Atlantic
Elgin, Joliet & Eastern
Ft. Dodge, Des Moines & South
18,562
amounted to 14,913 cars, a decrease of 366 cars
below the preceding week, and a decrease of 93 cars below the cor¬
19,572
14,645
its
2,610
2,705
2,721
3,455
3,583
21,321
19,249
10,628
11,363
3,410
3,219
3,195
3,937
3,901
25,778
26,906
23,067
reported increases compared with
and Pocahontas.
■;.
■
•
.
1944
1945
of
the
May
15,
1945,
was 4-3,shares, compared with 30,665
shares on April 13, 1945.
' **
502
Exchange's
announcement
listed
sues
157
in which
636
503
or
10,524
11,917
412
379
104
80
21,933
21,676
7,647
6,479
463
431
461
945
985
2,354
2,073
59
1,886
2,654
6,935
6,697
3,313
4,446
11,202
10,633
9,609
6,295
6,116
tion
2,415
6,618
Minneapolis & St. Louis..
Minn., St. Paul & S. S. M
—
which
of
Spokane International
192
141
151
2,075
3,030
2,033
128,168
131,081
122,177
Spokane, Portland & Seattle
570
731
3,821
3,000
69,455
69,499
r
w. •■;
2,000
.^-j' y
shares
more
1944—
23,238
20,796
16,768
12,816
3,165
2,718
4,555
•
397
460
592
70
1,287,970
July 31
1,327.64^1
1,283,555
*
Sept. 29
1,275,709
31...
18,409
18,040
12,310
13,185
2,150
3,294
3,017
958
846
Chicago, Rock Island & Pacific
Chicago & Eastern Illinois
12,598
11,502
11,633
13,568
13,063
Dec.
—
1,373,540
—
1,436,271
._
29
1,390,713
1945—
101
18,314
,:u>
June 30
3,278
Chicago, Burlington & Quincy
Chicago & Illinois Midland
oc¬
1,181,293
Nov. 30
3,542
Bingham & Garfield___
or
during the month.,,
Aug. 31
26,208
.
shares
May 31..
Oct.
Central Western District—
on
70 issues
existed, or in
change in the short posi¬
a
curred
Exchange
were
short interest of 5,000
a
more
42
1,945
1,944
2,084
the
on
May 15, 1945, there
889
i
;..v
Of the 1,258 individual stock is¬
23,168
Ishpeming
As
settlement
odd-lot dealers' accounts
377
Great Northern
firms,
compared
date, the total short interest in all
8,519
Jan.
31—
1,475,441
Feb.
15
1,582,647
2,754
2,751
2,581
5,765
6,640
Mar. 15....
620
688
789
2,035
2,685
Anril 13
Denver & Rio Granue Western
3,159
3,880
3,641
7,627
6,328
1,361,495
May
1,486,504
4
Weeks
of January.
3,001,544
3,158,700
4
Weeks of February.
3,049,697
3,154,116
3,055,725
Denver & Salt Lake
5
Weeks
March__.
4,018,627
3,916,037
3,845,547
Fort Worth & Denver City
Illinois Terminal
1,015
833
923
1,484
2,158
1,682
2,419
1,915
Missouri-Illinois
1,126
832
1,048
642
Nevada Northern
1,426
1,865
2,089
100
131
839
937
1,140
681
767
5
5
1
0
0
32,198
31,604
30,798
16,198
15,564
1,520,334
1,744
2,137
4
of
3,275,846
of
May
5—
May
12—.
838,507
849,032
14,630,359
15,207,419
15,146,212
corresponding week
Southern Pacific (Pacific)
of the freight carloadings for
a summary
AND
for the week ended May 12, 1945.
Total Revenue
Eastern District—
1945
Ann Arbor
: ■
Bangor & Aroostook
Chicago, Indianapolis & Louisville..
337
32
•
-
:
43
14,942
2,070 :
1,510
1,282 '
1,064
;
443
14,100
928
& Ironton
2,277
33
45
2,160
:.
1,026
2,117
13,743
11,958
115
3,136
4,942
6,490
12,944
7,899
7,620
11,410
220
254
405
164
1,183
1,550
1,802
1,171
333
289
3,439
2,541
10,912
Grand Trunk Western
1,738
406
Detroit & Toledo Shore Line
Erie
13,653
13,350
3,938
16,957
17,138
8,522
8,697
219
2,290
3,599
3,810
•3,997
Lehigh & Hudson River
Lehigh & New England
Lehigh Valley
181.:,
160
648
ZZZZZZZZl Z
ZZ-ZZZZZZZ
LineaZZZIZZZZZZZ
2,037
1,267
8,770
11,878
2,338
2,205
2,729
6,631
6,569
266
;
2,813
2,520
26
47,886
17,474
1,283
6,604
'
15,407.
1.937
112,349
104,426
305
243
1,105
416
441
624
7,707
7,651.
,9,037
8.824
4,778
4,945
8,500
8,145
674 W"
868
932
289
393
391
«
I
1,163
1,379
.
39-
20
:
213
1,251"
231
3.161
'
1,278
403
318
1,267
5,524
12,900
12,368
5,827
5,834
6,397
4,617.
4,266
146,390
161,356
169,042
;
238,988
219,041
Allegheny District—
710
44,265
46,714
43,404
28,836
7,544
6,327
2,821
2,731
1,814
4,691
4,176
Bureau
254
176
1,310
1,126
and
6,046
6,917
4,843
3,193
2,777
3,348
4,218
3,160
2,925
Commerce Commission.
278
—-
263
,1,549
361
563
555
193
86
426
433
7,278
6,491
5,771
5,479
5,003
16,784
13,969
15,445
22,015
19,841
77
62
52
402
429
Quanah Acme & Pacific
*
8,846
7,246
1,830
«
$
0
302
1,658
1,860
5
7,553
19,376
20,559
461
650
60
152
219
239
yy8
150
140
61
1,767
1,630
1,146
4,204
4,558
2,233
2,679
976
562
J.
•
23
'
1
_
pSn^eadi.ng Se~ashore~Lines_ZZZZZZI
K
1,901
87,678
83,998
62,633
68,858
10,295x
:
1,752
81,649
Pennsylvania System..
Reading Co
15,250
15,831
28,207
28,966
18,979
19,954
21,288
6,951
8,477
3,614
-ZZZZZZZTZZZZZZZ
4,288
4,266
13,724
13,202
7,454
,9,451
9,454
3,288
y< 8,488
8,410
14,564
5,972
5,220
show decreases of 0.66% each. The
yy 4,676
4,735
8,922
7,869
105
98
36
percentages of increase
70
31
15
36
72,861
70,615
78,930
;
24
yy-
79,229
'
.
176,079
195,090
188,926
169,506
179,552
72,522
&
Baltimore
Ohio
year's figures
Vlm°nl'a?W'5tera-"-~—
"•
...
Total—..
29,998
20,257
21,688
"23,256
4,522
4,497
5,017
15,073
14,319
7,811
7,454
2,877
•
We give
Herewith latest figures received by us from the National
of
members
The
this
Association
83%
represent
of the
55.571 '
58,271
25,761
23,906
way
member of the orders and
a
figure which indi¬
activity of the mill based on the time
the
cates
production, and also
operated.
staff
and
structures, 2.01;
(other than train,
These
equal 100%, so that they represent the total
Tons
ZZZZZ
February 10
February 17
March
93
92
151,307
560,960
149,816
553.609
93
92
152,755
529,238
97
93
558,285
580,804
557,986
537,005
96
94
95
99
93
93
93
94
178,483
150,486
152,611
153,625
158,551
162,386
549,631
100
94
146,832
158,938
162,040
604,720
604,214
564,631
92
97
98
94
94
95
142,387
158,854
546,311
99
95
223,162 '
-
3lIZZZIIIIIIZZZZ
7'
_
_
...
21
28—ZZZZZZZZZZZZZ—
5 "
'
I2ZZZZZZZZZZZZZZZZ.
-
161,764
605,892
97
95
..-602,717
94
152,208,-
Notes—Unfilled orders of
equal
-
reports, orders made for or
ments of unfilled orders.
153,111
,
-
porting
Trade
low
at the close.
to
the
National' Lumber
Barometer
were
3.3% be¬
production for the week May
1945.
In the same week new
of
files
these
of
amounted to
and
to
mills
the
112%
were
}1.8%
Unfilled
reporting
or¬
mills
of stocks.
For
gross
stocks
are
equivalent
32 days' production.
For the year-to-date, shipments
of
reporting
ceeded
identical
millsr
ex¬
production by 7.5% ;. orders
by 11.9%.
Compared to the average corre¬
95-
the prior week, plus orders received, less production,
do
Compensation for delinquent
filled from stock, and other items made necessary adjust¬
I—*-.—_w,, i„
;.LiJhJjJ
the unfilled orders
Association,
reporting softwood mills, unfilled
orders are equivalent to 3.7 days'
production at the current rate,
91
203,891
159,733 *
125,708
--
Z~
necessarily
'
92
181,377
177,711
129,948
137,911
-
Auril 14
.May
565,064
149,590
3_
17.Z
148,139
145,541
Z
March 24
March
Manufacturers
lumber shipments of 456 mills re¬
der
Percent of Activity
Current Cumulative
131,989
-
ZZZZZ
March 10
Tons
Remaining
Tons
204,550
week Ended
3
February 24
Mirch
Production '
Received
period
1945
ber
less than production.
Unfilled Orders
Orders
• -
According to the National Lum¬
12,
REPORTS—ORDERS, PRODUCTION, MILL ACTIVITY
Movement—Week
Ended May 12, 1945
orders
STATISTICAL
February
Lumber
total
industry, and its program includes a statement each week from each
not
53.870
'
and
tenders, and hostlers), 1.75.
paperboard industry.
2,133
''
of
transportation
Paperboard Association, Chicago, 111., in relation to activity in the
Mav
29,386
are:
assistants, 2.72; professional, cler¬
ical, and general, 1.89; mainten¬
RR.
revised.
Weekly Statistics of Paperboard Industry
Anvil
29,091
officials,
engine, and yard), 1.91, and trans¬
portation
(yardmasters, switch-
April
Pocahontas District—
Chesapeake <fc Ohlo.^.,
Executives,
31
,
ance
Anrii
Total
ception of maintenance of equip¬
ment
stores
and
transportation
(train and engine service), which
3.101
Weatherford M. W. & N. W
36
1,659
1944, is
employ¬
group with thef ex¬
13,453
Wichita Falls & Southern
69
,
5,392
April,
over
the number of
for every
ees
Interstate
127
Texas & Pacific—
8
7,380
87
»
c5m«lt R'N™
in
Economics
the
5,585
—
1,962
O
gain
shown
of
3,838
9,501
Texas & New Orleans
in
Transport
12,449
St. Louis Southwestern
♦Included
of
Statistics
A
1,031
696
180
St. Louis-San Francisco
Trttal
"
300
!y
614
—
—
Note—Previous
decrease of
a
2,632
m
r.
Missouri Pacific
1944, but
0.02% under March, 1945, accord¬
ing to a report issued by the
374
Missouri-Kansas-Texas Lines-
28,894
5,832
5,685
Buffalo Creek &
Gauley.
Cambria & Indiana'
States, as of the
of
April,
1945,
totaled
1,421,707, an increase of 0.67%
compared with the corresponding
4,008
City Southern
1,261
1,378
758
755
;
the1" United
middle
8,290
——
industry.
Akron, Canton &
Youngstown.
Baltimore & Ohio
Bessemer & Lake EtTa - *
Employees of Class I railroads
of
3,471
i—
Missouri & Arkansas—
2,649
5,389
6,452
LakVErieZZZ.ZI.ZZ.
__
Midland Valley*.——
2,163
490
7,678
349
(Pittsburgh)"ZZZ'~'
117,657
.
Litchfield & Madison
15,933
366
..
Western Maryland
123,704
Louisiana & Arkansas
3,830
3,479
7,097
4,903
a
Kansas
20,547
"
■
..
figures are advanced to
Union
4,548
56,703
9,728
760 •:,i,263
Rutland
Long Island
5,217
i
-
15
Railway Employees Off
To 1,421,707 In April
1,986
18,411
yy'/
e
32
56,797
,
6,264
Total.
2,132
2,134
19,782
1'
i
■
306
10,424
:
10,054
Western..
York, Chicago & St. Louis
Y., Susquehanna & Western
Pittsburg & Shawmut..
Pittsburg, Shawmut & North
Pittsburgh & West Virginia
2,153
Western Pacific
3,282
48,845
2,320
48,352
New
"
541
:
16,444
2,078
■
.
,
332
12,429
556
1,726
9,344
5,930
:
2,156
5,169
,
Maine Central
&
1,443
5,751
.?
Delaware, Lackawanna & WesternDetroit & Mackinac—
Wabash..,
1,361
,
13
Delaware & Hudson
232
:
1944
6,228
1,165
& Lake Erie
Pere Marquette..
332
2,121
Utah
Kansas. Oklahoma & Gulf
1945
7,025
-
1,090
Central Indiana
Pittsburgh
391
14,327
International-Great Northern-
1943
1,352
6,996
Central Vermont
Wheeling
65
; 1,179
Boston & Maine
N.
y
391
—
Gulf Coast Lines
Received from
;
Connections
1944
279
•
N. Y., N. H. & Hartford
New York, Ontario &
21
y...
15.255
f "494
Toledo, Peoria & Western
Union Pacific System
Burlington-Rock Island
Freight Loaded
New York Central
35
Southwestern District-
12
Total Loads
Railroads
Montour
720
month of
CONNECTIONS
RECEIVED FROM
WEEK ENDED MAY
(NUMBER OF CARS)
]
730
ago.
a year
REVENUE FREIGHT LOADED
Monongahela
526
Peoria & Pekin Union.
During the period 52 roads showed increases when compared with
Detroit, Toledo
!
127,275
following table is
the separate railroads and systems
the
.
North Western Pacific
Total
The
r
816,538
867,182
863,399
of
3,152,879
V 835,538
3,374,438
April
of
Weeks
Week
Week
2,910,638
member
shares,
accounts of all odd-lot dealers:
852
Colorado & Southern
1943
as
on April 13,
1945, both totals excluding short
positions carried in the' odd-lot
8,918
222
the
May 15,
compiled
with 1,361,495 shares
851
Atch., Top. & Santa Fe System
the Centralwestern and Southwestern. All
1943 except the Eastern, Allegheny
ing week in 1944 except
and
1,486,504
8,522
Alton
decreases compared with the correspond¬
districts reported
members
was
13,781
loading
responding week in 1944.
All
19,617
20,041
Green Bay & Western
Northern Pacific
date,
of
as
the
on
from information obtained
by the
New York Stock Exchange from
The
Lake Superior &
interest
business
continued:
Northwestern District—
s
Coke
short
close of
647
1,109
Georgia
Georgia & Florida.
Gulf, Mobile & Ohio
lowing:
alone,
cars
May 15 Reported
The New York Stock Exchange
made public on May 18 the fol¬
3,193
220
of
grain and grain products loading for the week of May 12
totaled 33,889 cars, a decrease of 1,798 cars below the preceding week
but an increase of 9,233 cars above the corresponding week in 1944.
To
2,964
999
Gainesville Midland
Miscellaneous freight loading totaled 392,094 cars, a decrease of
Coal loading
Southern District—
NYSE Short Interest
Received from
.Connections
;\-J
Freight Loaded
24,89y ers
EndM May11#lt4itteereaseil
Total Revenue
sponding week of 1935-1939,. pro¬
duction
of reporting mills was
.
5.8%
shipments
were
3.9% greater; orders were 5.4%
less than production.
greater;
•
framed testimonial was
A
Companies.
Items About Banks, Tiust
Director of the Lawyers
as a
Company, New York, was
recently by. Orie R.
Trust
'
announced
Mr. Quillinan is
Kelly, President.
partner in the law firm of Wag¬
ner, > Quillinan,
Wagner & Tennant. Mr. Quillinan is also Chair¬
man of the American Citizenship
.Committee
of
the
New : York
a
County Lawyers Association.
! -
;
In 1942 Mr. Debevoise was
ment.
transferred
'■■■•£.,'.'V'i
George F. Butt, Auditor of
Commercial
National
Bank
Secretary
and
President
Viceof the
Reeves,
Irving Savings Bank of New York,
died May 20, of a heart attack,
at the
age of 60
after a short
He resided at
321 West 74th St., New York City.
of illness.
period
years'
A veteran banker of 35
ex¬
Mr. Reeves started with
the
Brooklyn Savings Bank in
1910 and stayed until 1922 when
he was appointed General Secre¬
tary of the Savings Banks Asso¬
perience,
he became
Vice-President of the Irving Sav¬
1923,
December,
ings Bank and in February, 1937,
was appointed Vice-President and
Secretary.
He
was
also wellknown in church circles, having
been a soloist with a number of
.
the
elected President of the New
and
Auditors
Bank
City
The
v
Central Hanover Bank
Co.,
New York, was
Trust
&
Vice-President and Henry
named
United
of
Trust
States
York, became Secre¬
of New
Co.
Vice-
Assistant
Diefenbach,
G.
President
tary-Treasurer.r
' '
Avenue
•
16 was
of the Fifth
Director
Mr.
York.
New
Bank,
Taylor has been connected with
the American Telephone & Tele¬
graph since 1906 and is now Viceof operations.
President in charge
George F. Doyle on May 16 was
Vice-President
of
the
elected
3
has
Beinecke
recently
Director of Title
Guarantee & Trust Co., New York.
Abeen elected
President
is
He
a
John C; Paige &
of
Director
and
York
New
the
became
46th
the
meeting of
annual
the
Bankers Associa¬
tion, May 15, William J. Ahern,
County
Kings
1, 1945 The system received appli¬
cations
for
participation
from
100% of the bank's 90 eligible em¬
New
Bank,
York, was re-elected Presi¬
dent of the Association for the
Charles Oldenbuttel, Vice-President of the Peoples
ensuing year.
Bank
National
Brooklyn, was
Vice - President,
of
established in 1859, has resources
re-elected
and John J. Hayes,
William
$195,000,000.
L.
De
Bost, President
Savings Bank,
of the Union Dime
in announcing the bank's partici¬
pation in the system, stated:
"The
Union
Board
of
Dime
of
Trustees
the
Savings
Bank be¬
lieves that this bank's participa¬
tion in the Savings Banks Retire¬
ment System is for the best inter¬
of the employees and of
bank.
'
-J
ests
the
'
.
.
the
of
Vice-President
in
of
First
Trust
Manufacturers
the
of
President
Assistant Vice-
Company,
re-elected
was
Vice-President. Harold F.
Second
of
the
Brooklyn Trust
Company,
Secretary-Treasurer.
was
Vice-President
Klein,
Frederick E.
the
Lewis L. Fawcett, who is a re¬
tired
Supreme Court Justice, has
of
Trustee
Savings
been elected a
Kings
County
recently
the
Bank
&
Trust
New
York, announced on
that Vice-President Ed¬
May
17
win
Van
Pelt
will
be
in
charge of the Seventh Avenue of¬
fices
of
the
Mr. Van
bank
ant
placed
of
as
June
1.
Pelt, who went with the
Continental in
1936
as
Vice-President,
Vice-President in
Assist¬
an
was
elected
a
His pre¬
1943.
vious
banking
experience
was
with the Irving Trust Co. and the
Bank of
the Manhattan Co.,
both
of New York.
Vice-President
C.
Carl
Lang,
with whom Mr. Van Pelt has been
associated for several years at the
Seventh Avenue branch, will re-
-
turn to the main office of the Con¬
-
tinental at 30 Broad St. to take up
duties.
new
New
York
Dept. announced
the Bank
State
on
of
President
Muller, who is Treasurer of
Mr.
the
Kings County Savings Bank.
Brooklyn, N. Y., succeeds Joseph
A. Duddy, Assistant Comptroller
of the East River Savings Bank
President
Trust
the
of
Vice-
Manufacturers
New
in
charge of the office at Fifth Ave¬
nue
a
Street,
Bank
trustees
Mr.
ing
on
elected
was
with
at a meeting
May 16.
with
the
Company
Seaboard
and
later
of
Chatham
Bank.
of
the
The New York "Times"
-
Manufacturers
1932,
(later
he
ing President.
banking career of Paul S.
Dick dates back to 1895 when he
Portland.
Shortly thereafter, this bank was
merged" with the United States
Fred W. Bennigsen was elected
connected.
Bank),
President of the latter
also Chairman
was
of the Board of the Clark County
National
of
Bank
Washington,
Vancouver,
the
of
affiliate
an
the
on
council
advisory
Francisco and
on
the
of
of
Bank
Reserve
San
numerous
com¬
mittees of the American Bankers
pany of Maryland, Baltimore, Md.,
has executed a bankers blanket
bond
recently
the
covering
of
Quonset
a
Guam is
only bank housed
of
the. Bank
Hut,
of two such institu¬
one
maintained
tions
N.
da,
Y.,
recently
was
elected
Treasurer of the New York State
Association.
The
of
urer
bany,
of
promotion
the
N.
President,
First
Y.,
in all classified rates based on the
the
by
S.
U.
Trust
announced
the
of
the
Vice-
on
May
Rooney, Presi¬
by Edward S.
dent
Al¬
Co.,
Advices from
bank.
Albany "Times-Union" said:
Hartman
Mr.
with
ated
when
the
was
he
First
the
has
been
bank
entered
the
National
associ¬
since
1917,
employ
Bank,
of
which
later
merged with the First
Company.
He has been
Manager of the West End branch
of the bank for the last two
years.
a
meeting
of
the
Bankers Ass'n in Kansas
Missouri
City
on
May 15, James P. Hickock, Pres¬
ident of the Manufacturers Bank
& Trust Co., St. Louis,
Mo., was
took
as
Dlace
Vice-
institution,
elected President of the Associa¬
tion.
general categories:
"A nation-wide uniform classi¬
of rates.
At-present an
present structure in and between
and'Western
Southern
the
rate
territories and between those ter¬
rates
will
East.
East.
the
and
■
v
/
■
»
effect
in
Railroads
90 days to
given
whether
Commission
they would
undertake to
apply
set by
was
will
up
The
differ
not
A
the ICC
classification
the
to
when it is established.
system
set
classification.
uniform;
scale of rates
to
establish¬
the
new
substan¬
tially from the temporary rates.
ICC
order
minimum
cents
75
ments
on
The
the basic rates.
decision
issued
was
sectional
to
as
an
complaints
that the rate differentials
were
to
nomic
eco¬
development of the South
West.
and
barrier
an
South
Spokesmen
West
and
have
for
a
nation-wide
under-
classification.
-
the
out
that the Eastern rate territory was
undersell
manufacturers
the
V>.;\
..
that
"Directed
class rates
in
same
:
,
differences
in
existing through¬
now
be reduced to
country
minimum, except for
a
the Pacific
Coast, which asked for no reduc¬
The effect of
this order
tion.
eliminates
virtually
territorial
which
divisions
rate
the
South
West contended have placed
their sections at an industrial dis¬
and
advantage with the East.
"For this revision the Commis¬
recommended
scale
that
class-
a
approximately
15%
than
present first class
in Eastern territory be es¬
higher
rates
tablished
sult in
as
This will
base.
a
re¬
higher rates for the East
and lower rates for the South and
West.
applying
"Althou^i
the
protested
differ¬
a
Henceforth, said ICC,
particular article must move
rate
on
under
classification
East.
sion
a
might be
classification
one
lower-rate
the
55
from
radio
a
as
under
South and
the
in
hundred
cents
moving
answer
shipped
less than carload ship¬
to
pounds
increased
also
charge
such
article
uniform system.
new
were
the
notify
remain
and would
fication
ent,
changes would
pending
the
ment of
the
in
inequalities between the
sections
three
same
•*
■
...
The ICC said the
minimize
10%
raised
be
The
ruling, ' according to the
Press, covered these
class rates, as
only
to
distinguished from
commodity rates which govern a
larger share of all shipments, the
population of the areas in
which they are located. The other
inequalities.
bank is
changes sought by the South and' class rates."
The
Samoa.
on
bank
of
transacts
Guam
other
securities.
It
is
U.
a
to
other
in the
areas
S.
Government Depository.
the
opposing
Truman I has
President
from
308 South
Broadway to the Ohio Oil Build¬
Lubin
ing; 437 South Hill Street.
Press
its
old
known
are
Terminal
Ofice
business
the
at
The
the
as
of
was
new
Monday, May 14.
on
Savings
&
National Bank and
zens
Citi¬
location,
quarters
new
Subway
for
Trust
open
location
*
Banks
has
and
been
Bank
America's
department,
transferred
from
Los
after
the
to
period
a
armed forces.
ing
career
bank
of
Mr. Court
a
year
service
He began
ago
in
the
his bank¬
with the Phoenix Na¬
tional Bank, Phoenix, Ajriz., and
joined the Bank of America or¬
ganization in 1937.
the
on
arations
Moscow
War
Commission,
the
from
announced
Rep¬
United
Washing¬
ton, May 15:
the
of
President
Gordon
Sproul,
University of
California, who will
human
on
serve as
aspects of
"ad¬
repa¬
rations;" Jubal
ton,
R. Parten, Hous¬
industrial adviser; Dr.
Tex.,
Luther
H.
Gulick,
New
York,
of
the
Vaughan, Vice-President
Bank
of
America, San
Francisco, Calif., since 1936, here¬
tofore
in
charge
of
advisory
boards
and
staff
education,
has
national
law;
George
Johnson,
Wisconsin, machine tools and met¬
als; Lawrence Richardson, Massa¬
chusetts, rolling stock.
Mr.
with
Giannini, President.
Vaughan became associated
Bank
after ten
of
America
years
in
1929,
with the Fidelity
National Bank & Trust
Company
were
named:j
German
Abraham Bergson,
economy
sumes
new
duties,
which he
immediately,
ivill
as¬
bring
him into contact with other bank¬
ing
institutions
nation.
throughout
the
He makes his office at the
engaged
"all customers
with
production and who have
availed themselves of the T-
war
not
Loan
them
procedure" and point out to
the
benefits of the plan.
Very few termination loans have
the present time,
been made up to
with the total of
compared
Under
the
to
and
industry;
T-Loan
the
out¬
May
8,
with
a
contractors
may
arrange
other
commercial bank or
financing
institution
upon cancellation or
for
financing
said, according
"Journal of Commerce" on
Sproul
Mr.
to obtain,
termination
Govern¬
the
of
convenience
(1) accounts
reimbursable ex¬
loans against
receivable,
(2)
penditures for inventory
(includ¬
ing direct labor, cost of raw ma¬
supplied, (3) re¬
paid or to be
terials and parts
Moses
imbursable amounts
Rubin, "legal phases;"
Abramovitz, German in¬
abroad;
Col.
E. '
John Faigle, S.
Wilson
J.
Trone, Thomas W.
J., Maj. G. S. Carter and
Berger.
chief
of
Durham,
the
New
York,
reparation mission's
secretariat.
that
a
"fair
and workable settlement" of Ger¬
reparations
war
man
bank.
tasks.
would
be
of the most difficult post-war
*-
(4)
and
administrative overhead.
Mail to Norway and France
The Post Office Department an¬
nounced on May 17 the resump¬
tion
of limited
mail service to
Norway, and of parcel post service
to
France.
>
post cards
only deliveries
Non-illustrated
at present the
m'e
be¬
ing made to Norway.
The President said
one
paid to his subcontractors and
reimbursable manufacturing
E.
Fogelson, Texas; Capt. N. L. McLauren,
San
Francisco;
Capt.
San Francisco Head Office of the
0
communi¬
urging them to
York,
in
a
Sproul,
Seymour
Richard
of Kansas City.
the
received
Allan
ment,
vestments
by
circular letter
President of
Federal Reserve Bank of New
cently
from
plan,
according
announcement
institutions
parties in the
Second Reserve District, have re¬
nah, Wis., plant and equipment
appraisal; J. Howard Marshall,
Ashland, Ky., counsel; Richard B.
Scandrett Jr., New York, inter¬
dustry, and George Luthringer.
Josiah
DuBois, Treasury De¬
partment, expert on German in¬
to
on
standing contracts.
Bankers department of the bank,
been transferred to the Banks and
L. M.
most
move
financing
Banks,,
political science and public ad¬
ministration; Ernst Mahler, Nee-
Four State Department officials
Earl I.
goods
the
in
because
and other, interested
cate
Robert
Dr.
viser
of
Bankers
pointed
Citi¬
Henry J. Court Assistant Vicein
manufactured
ap¬
Bank, Los Angeles, Calif., moved
National
West
Sproul Urges T-Loan
Appointees to
Reparations Committee Aid for Contractors
the following staff of 21
experts to assist U. S. representa¬
tives Edwin W. Pauley and Isador
of
Office
acclaimed
was
and
U. S.
-
Broadway
decision7
South
railroads
The
of the
because
a
ing loans and selling bonds and
His
At
The
Associated
civilian
E.
Treas¬
Assistant
to
was
Harold
Assistant
from
Hartman
a
fic volume.
able
returned
Neilson, President
of the Bank of Gowanda, Gowan-
!./■,
10% cut
costs -for
a
territory 0f
smaller population, of less indus¬
trial development, of smaller traf¬
road
Navy for the benefit of army and
navy
personnel, as well as the
Francisco Head Office.
A.
af¬
not
rate
insurmountable
Guam.
Said to be the
in
bulk
special
by this decision.
The order called for
fected
re¬
opened Bank of Guam, located in
Agana on the reconquered island
as
raw
The
Angeles headquarters to the San
Stanley
other
>
The Fidelity and Deposit Com¬
grain, coal, oil and
materials, move largely
such
fice,
the
Mr. Dick served for many years
Treasurer.
with
merger
Trust
He
became
he
which
with
Vice-President,
Frank Lipinski,
Secretary, and Albert F. Kendall,
National
continued
of
Bank,
a
which constitute the bulk of traf-
ritories
The
President
merged
Vice-President
Phenix
the
When
Mercantile
National
became
May
on
17 said:
Trust
Debevoise began his bank¬
career
Trust
in
York,
trustee of the Union Dime Sav¬
ings
-
43rd
and
elevated to the Chair¬
was
and
and Western areas,
Banking
Debevoise,
Company,
un¬
manship, E. C. Sammons becom¬
New York.
of
15
Elliott
the
Savings Banks
Auditors and Comptrollers forum.
May 11 that
for
Savings, New York
City, applied on May 4 for per¬
mission to open a branch office
on West 33rd St., New York.
Mr.
at which
zens';
Adam C. Muller has been elected
Bankers
The
til March 30 of this year
The
Hasler, President
Continental
of
Co.
1931
National
the Interstate Commerce Commission on
basic freight rates in the Southern
10% increase in Eastern rates.
The adjust¬
ments will be on a temporary basis, effective Aug. 31, pending the
preparation of a uniform rate classification system for the whole
country.
The changes will applydo so-called "classified" freightlargely manufactured goods anc.A
West
denied that present
miscellaneous goods, which con¬
rates
stitute ; about
10% of the total were discriminatory. They were
freight
traffic.
Commodities they said, in keeping with raill
May 19 ordered a 10% cut in the
Pacific Northwest fi¬
nancial institution from
Freight Rates Ordered Equalized
vote of 9-to-2,
a
under
President of
complete banking business, main¬
taining a trust department, mak¬
elected
Bank, Brooklyn, N. Y.
of
:
Mr. Dick served as
time he
Railroad
By
the
Bank of the Manhattan Company,
The Union Dime Savings
May 9.
Association.
Assistant
*
Ore.,
Portland,
of
Bank,
on
will continue in this capacity.
participating bank in the Savings
System on May
excess
tional
Bank of the City
of New York.
Mr. Doyle, who is
also Treasurer of the institution,
Dollar Savings
Banks Retirement
ployees.
Board
Federal
At
of
Paul S. Dick, Chairman of the
of the United States Na¬
f
Co., Inc.
Dime Savings Bank
The Union
'
United States National.
K' choirs.
Walter
Board.
started to work for the Ainsworth
Oscar M. Taylor on May
a
past 20
recently retirbd and took
the *post
as
Chairman of the
years,
National
elected
President
was
the institution for the
this leading
;
George Ehrhardt, Assistant Sec¬
retary of
who
Mr. Adams,
of
Trib¬
this said:
une" in reporting
the bank.
died
"Herald
York
New
of service with
tion of his 55 years
&
Comptrollers Conference.
ciation of the State of New York.
In
'•
Co., New York, on May 16
Trust
was
York
J.
Walter
Mr.
is now in charge
largest branch.
;
^
:
partment, and
of their
National
Dallas, Tex., in apprecia¬
Bank of
De¬
Banking
the
to
pre-;
by the
Adams
Nathan
to
stockholders of the First
J. Quil- and for eight years was in charge
of their Personal Trust Depart¬
The election of Francis
linan
sented
Thursday, May 24, 1945
CHRONICLE
THE COMMERCIAL & FINANCIAL
2324
Parcel post service to
France is
and win
not effective until June 1
be
limited
from the
to
same
addressee.
one
parcel
weekly
sender to the
same
@FedFRASER