Full text of Commercial and Financial Chronicle : November 14, 1946, Vol. 164, No. 4542, Section 2

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In 2 Sections-Section 2

ESTABLISHED 1839

Final Edition

Reg. TJ. S. Pat. Office

Volume

164

New

Number 4542

Price 60 Cents

York, N. Y., Thursday, November 14, 1946

a

Copy

President Orders Price Decontrol Truman Plea for
Congress' Cooperation
President, at

press

conference, is¬

5

stalementaskingCongresr
'1
put * -welfare * of nation : above
-party*
Sees foreign policy un¬

'

m

■

' EDITORIAL

sues

altered and denounces those who

j Jn this field seek opportunity to
si achieve /personal - notoriety
or
partisan advantage by exploita-

j tioeof Vthe^ensational. 5

Not Nearly So Simple As

general tenor of President Truman's plea for
single-minded devotion to the welfare of the country rather
than partisan advantage there will be complete agreement.
Our constitutional arrangements at intervals place one party
in the White House and ahbthemn control at the other end

and the Execu¬
nohrpartisan attitude in

between Congress
a

welfare.

nation's

the

promoting

He also expressed assurance

continuation of

i£;ati:awkward situation, which
jhapaptin the past yvorked out very ;weU^: 4'The';.President'f-:jdoubtless with the utmost sincerity, would like the next two
jyears to be an outstanding expeptioh to - the general histori¬
cal rule. The Republican Party cannot afford either for its
Sown, good or for the sake of the country to ignore or neglect
the plea the President now makes.
piyennsylvahih Avenue.

j At-his piesej conference5 ott NOy^
vi IjJ President ^Trumaii 'r£a<L
fblroaE statement {in ■ which1 he
tailed' for a policy fpf» cooperation

v

tive and

of a

the present for*

Not So

eign policy.
The text of this statement fol¬

The people have elected a Re¬
publican majority to the Senate
and to the House of Representa¬
tives. Under our Constitution the

Congress is the lawmaking body.
people have chosen to entrust
the
controlling: voice
in
this
branch of our government to the

The

Republican party. I accept their
verdict in the spirit in which all
good citizens accept the result of
any fair election.
^
,

At the same time and under the

Constitution, the duties and
responsibilities of the Chief Exec¬
utive and of. the executive branch
of the government are entrusted
to me and my associates.
same

government

the constitutional manciple

upon

that

the

branches of

three

the

of

independent

government

Tilde Bdrriers^ Must Be Reduced
By WINTHROP W.

Under this principle

country

our

has

prospered and

great. I should be less than

candid, however, if I omitted to

Chairman Chase National Bank

r i

are

each other.

grown

ALDRICH*

state

that

the

situation

present

Leading banker, noting Europe's current economic progress, states
U. S. leadership is indispensable henceforth.
Strongly advocates
'

'

nor the problems it presents
the unthinking might suppose.
Nu¬
merous
and difficult complications greet the eye upon
thoughtful examination of the facts. Neither the President's
party nor that of the opposition is a homogeneous, closely
knit unit unanimously or even overwhelmingly in agree¬
ment upon public policies. President Truman since almost
the first day of his encumbency has been at odds with Con¬
gress.
Despite large technical majorities he has been able
to persuade Congress to do very little of what he has
repeatedly requested, not to say - demanded of it. .. Large
elements in his own party, quite possibly now predominant
elements,- are at heart definitely not in sympathy with a
very large part of the program of that party,

founded

is

threatens difficulties.

provide general free

and restraint and the

constant de¬

termination to place

the interest

adoption of pending reciprocal concessions to
access to world's raw materials and trade.

who attended the Council Meeting of the Inter¬
national Chamber of Commerce in Paris this past June were greatly
encouraged by : ■
1———-r-——
our observareflect in their individual ways
Lion -"-Of-" -the
marked economic recovery and
rapid recov- Wf
are giving evidence of their forery
taking W.„ mer dynamic vigor. No less gratiplace in West- K
MM
I fying is the improvement taking
Those of us

ern :

The

Europe."'

-

resurg-

since

ence

of
h o s tilities in
the economic
the

end

&nd social life

H
B
B

,

9

■

Place in Britain's export trade. In
order to increase
exports, the
British have continued their do-

HH mestic policy of austerity and, in
BPy^B so doing, have shown that staying

pBpower

and

courage

which have

JSHcontributed to their greatness

as a

Only by the exercise of

of

our

country above all

wisdom

other in-

(Continued on page 2531)

GENERAL CONTENTS
Editorial

•

.2521

Regular Feattrre$
of the

Prom Washington Ahead

.2521

News

Yields,.,..2531
New York Exchanges*. .2533

Moody's Bond Prices and
Trading on.

2533

NYSE Odd-Lot Trading

Items About Banks and Trust

is

a
tribute to the '

BBKifll
v,

vitality of

K

t

w. W. Aldrlcfc

people.
■
tribute to the vitality
of the ideas and forces which
made
possible the growth of
their

It is also a

civilization.
.Much progress has been made in
overcoming
the
demoralization
which was the inevitable result
of occupation by the eneniy. :"
Belgium, France and Holland
Western European
.

pean nations look to the United
States for leadership. Similarity
in traditions, attitudes of mind
and political institutions bind us
together in close union,
_

by Mr. Aldrich beNational Foreign Trade

*An address,

the

Council, Nov. 11, 1946.




State of
General Review

Trade

..................

Tn contrast with the recovery

.2523

Commodity Prices, Domestic Index. .2534

.\2535

Weekly Oarloadings

Weekly Engineering Construction.. .2534

2534

September Record

. :

German Economy Still Prostrate

2535

Paperboard Industry Statistics

.2535

Weekly Lumber Movement

taking place elsewhere, the Ger-

Fertilizer Association Price Index...2531

is still prostrate,
This condition will, in all likelihood, continue until Germany, in
accordance with ; the Potsdam

Weekly.Coal and Coke Output....,,,2532

man

economy

agreement,

-

fore

Cos..2536

At this time all Western Euro-

Of Western

Europe

Pftfe

.

As We See It.

is

brought into

eco-

nomic unity. The recent arrangement looking toward economic
^ ; (Continued on page 2529) y t

Weekly Steel Review,

i.............

.2527.

Moody's Daily Commodity Index..

.-.2531,

Weekly Crude Oil Production.....

.

Non-Ferrous Metals Market

..2532

Weekly Electric

.2533

Output...1...•.,.....2531

Condition of National Banks at
June

29

.......v....2530

Simple

But neither the situation

are

lows:

Our

That

With the

nearly

The

so

simple

first

as

problem of the President at present is less

how he may work harmoniously and constructively
the Republicans, than it. is whether he should, or

modify his

own program

with
must,

to bring it into line with the ideas

(Continued on page 2524)

THE COMMERCIAL & FINANCIAL CHRONICLE

through the

selling
the

KHft|r*V

foreign investors, as'well

waftw

general control over prices and wages is
justifiable only so long as it is an effective instru^
ment against inflation.
I am convinced that the'
time has

come

when these controls can serve no

useful purpose.

indeed, convinced that their
r
further continuance would do the nation's economy
harm than

"We have
our

I

am,

good,

.•

,

.

>

reached the:ppjnt where^many of

now

shortages have disappeared and in many other

"panicky"
did

prices, prices will come down.

these

iead?rsmp

in

*

of

the

of the securities so

peace,

no^ s6 clear/ since

sources.

can

7

r -

--

—. — — —

-

t

*

chases

the

on

New

York

pur-

Stock

I

amounts
million

to

7%

only

share

of the

increase

279

between

dedicated

u n

d

o n a

York Stock Exchange brokers in¬
dicates that for the country as a

substantial growth in
Sept. 30, 1946
the total number of small stock¬
number of stocks

Exchange and points out that the in the total
indicate an increasing pub- listed, but it should be borne in holders and of small stock hold¬
Hie participation in security trad- mind that only a small portion of ings has occurred during and after
all
: ing and a growing rate of accumulisted
shares
are
traded in the war. This does not necessarily
Consequently it ap¬ mean that the share of small
> lation of equity securities by small each year.
7 investors. The article states:
pears that
such purchases have holders Tin! the total of securities
'
One of the interesting aspects bad a consistent influence toward outstanding has increased, how¬
of the trading in stocks on the higher prices, or toward limiting ever, since it is possible that se¬
curity holders with greater fi¬
v New
York Stock Exchange dur- recessions, for nearly four years.
nancial resources acquired a
ing the war and postwar periods
Demand for equity securities by
.has been the. substantial accumu- small
investors was met in the larger volume of new stock issues
offered over the counter by un¬
lation of equity securities by small main
through net sales by mem¬
derwriters and distributors.
investors. Based on data of the
bers of the Exchange on orders
'j, Securities and Exchange Commis¬ placed off the trading floor and
sion, "odd-lot transactions of the to some extent through net sales
public (generally transactions of by the larger investors and trad¬ President Lauds
less than a round lot of 100 shares) ers.
Although the selling orders
of members persistently exceeded Religious Program
r; resulted in net purchases of about
In a letter to Adolph S. Rosen¬
j 20
million shares of stock be- their
purchases, the excess of sales
£ tween the beginning of 1943 and was not large until the summer of berg, President of the Union of
American Hebrew Congregations,
Oct.
19, 1946.r It is noteworthy
945. Data on round-lot transac¬
President Truman, according to
■. that
these small security holders tions of the
public through the
stepped»up their purchases of Stock Exchange, however, indicate advices to the New York "Times"
on Nov. 4, praised the union for
stocks during the sharp decline frequent
changes in the position
its sponsorship of the American
of prices in September of ; this of the
large investors. This group
Jewish
Cavalcade, which is to
year, while larger traders acceler¬ made small net
purchases.in 1942,
stress
religion.
Describing
his
ated their selling.
sold small amounts between
early
pleasure at learning of the plans
tr;' The data on odd^lot-transactions 1943 and February j 1944,>
again for the
fcavalcade, and declaring
?
reveal an increasing public par¬ effected moderate net purchases
his belief in the importance of re¬
ticipation in security trading and through the middle of 1945, and
ligion in present day life, the
:
a growing rate of accumulation of sold stocks in larger amounts from
President, wrote:
equity securities by small invest¬ July, 1945 through Oct. 19, 1946
ors, especially toward the end of especially
in February,
T earnestly hope that more
March
the war and in the postwar period. and September, 1946. The result
and lnore men,
Christians as
Net purchases of stocks for the over the entire period was some
well as Jews, will incorporate
:•
account of odd-lot customers net excess of selling.
Within their daily lives the
amounted to 2 million shares each
Transactions of nationals of for¬
principles of religious living
in 1943 and 1944, 6 million in 1945
which are basic to mankind."
eign countries apparently have
and close to 10 million in the firsi been a factor of some
importance.
The
cavalcade, sponsored by
10 months of 1946. A sizable por¬ Foreign owners of domestic stocks
340 Reform Jewish congregations
tion of this accumulation took (including stocks not listed on the
of the union, was described
by
place at low levels in the early New York Stock Exchange) made the
group's director, Dr. Maurice
-phases of the bull market, but net purchases of $21 million of N.
Eisendrath, as seeking "to win
7 most of the increase in small in¬ equity securities in 1942, and then not
only the unaffiliated but also
vestors' holdings has been at the sold $43 and $35 million- in 1943
to impart to the affiliated a truer
..higher price levels prevailing in and 1944, respectively, stepping up
appreciation of our institutions
1945 and 1946, although a consid¬ their- sales to $100
million in and our cause through a coordi¬
erable part occurred when prices 1945. No further increase in the
nated
religious - emphasis pro¬
rate of foreign selling occurred in
,.; were failing.
• ;•
gram." Dr. Eisendrath explained
•"*
.The net purchase of 20 million the first eight .months of 1946
that the cavalcade coincided with
; " shares
''
:
:through odd-lot transac- however.•
the 100th anniversary of the ar¬
The middle of 1945 seems to be
L ,tions is but a small fraction of the
rival
in
this
country
of
the
billion shares listed on the the point when all
groups of large fouhdqr of American Reform Ju¬
"Exchange on Sept. 30, 1946, and traders began or increased their daism, the late Dr. Isaac M. Wise.
*

.

,

■

.

,.

(

i-C

$ Vt'.

V:




I

5 1 »< I

->'5 / >

c i

V

1

7 £' 5

'

.7,j:%Hin.i'ffH?I

5
;

\

great and

J

c.

tv

it

J,

SWJ.IW vv

.j.,,..

ViAV

1A
The people A# IVlA
of the
nA/\rv

Wl

lillUI/lVV*

TTAltAi-l

Unite'd

Ctn+Afc?«(

States

be proud that'our
nation took
the lead in this
can

1

U

W

<

divisions,

edly,
.

-

program, and that
they themselves and a Congress
rising above political
gave

'

Nor would 1 overlook the
moral
accomplishment
that
witnessed

our own

national
n a t i onal

cnvder

se-

.and

curity,

effect to it.

the salvation of all nations, is de^
oendent upon a full comprehend
sion of world Interests.

1
•

not one, but *11 the United Nations
assuming each a share of the responsibilities for revival and reconstruction.

The winning of a military vm*
tory over our enemies was but a
milepost along the road to

and security, and we
fully determined to persist in

until

course

final

the

steps

«...

oftemperTmenl

if.

s

practical

,

any other
tion.

stable

the

has

whole

*

course

foi

''

;

both

agricultural,

that

-

world

be

can

our

own

support

her
,V.j

■

•

taken

were

re¬

by

the

United States through the exteng|on 0f
credits, directly as in the
case 0f that voted
by the Congress
to Great
Britain; and to. other
nations

through the medium
Export-Import Bank,

peace,

And

tn^.

now,

^ |onger

ready to

range

take

serious

to war

of

over

financing of

constructi0n, ready because

nation in

effort

•

A1*%»

foreign

habilitation

ttt^
we

and the prestige, ana ine

cooperative

v

necessary

of

unfalteringly
foreign tode.

and that means for our own saxe.
we
must continue to throw
material force of this

absolutely

rM»AfAA+1Ayi
protection

,

a
a

Extension of Foreign Credits
Initial steps toward

ourselves, from its consequences,

world

was

the

y

economically blighted people,
seen it happen
^before, ana
we
have not been able to save
sake of

v* WW

Thft adontion nf Ri.rh
The adoption of such

must
i

en¬

-

V

types of pubproperty liUM, to be
had IfV WC
y

economy. America must maintain
her
merchant
marine
and
she-

have

re-

of the

study given before the end

of
0f

hostilities, is the International
Bank for Reconstruction
R
A
-1
«•»and De-

world security.
For the

'

|

throughout

1

the

and

lic and
Aiy utAM private

sound

a

.

power

voblig^

capacity,

industrial

vital

a

creation of

whole city may be en¬

the

.

-

gulfed by the germ of strife bred
in
in the environs of a morally or
uio

For

'

v

^en-

gulfed in an epidemic from dis¬
ease bred in some blighted slums
so

nation/ to this
•

repaired.

economy

as a

AiUUI

New life had to be
injected into
world productive

the world.
Just

from

UACU

and

/**♦

our

understanding

peoples.
Our own country

and

sick

VAAU

exhaus- 1
be proud of our
greater than that of -

contribution,

among

stake in the

w

can

and of political

philosophies, the-—
a

We

„

deavoring with all
.

f

has been made. De
4.

peace treaties

tain

U

tion.

present degree of accomplishment
much cause for gratificaiion. Real
progress
toward
writing
the
-

world

a

MAM

our

have in

we

aid

VV

devastation, hunger

realized.

I believe that

to

arc

goal

]

, We were faced fwrth the
fiecessity of taking immediate, concrete

world

a

of peace

prosperity o£.cmr own

velopment.

industry and labor, we must oeno

p

;

^^ ^

*

.

thl woTld

lVoeriyd eon°ert i^whtch

benefrang0°dS ^
In our search for peace

and

curity we must deal with both political
and
economic
stability.
President Truman has set forth

0pment.

These

The trade provisions of

Anglo-American
Agreement, and other

clearly the policies of this nation
in the Internationa political field.

same

policies, ably pursued by
Byrnes and our other

Financial
efforts

as

in

jnfer,

Trad^ organi2ation,

nationaI

wiU

contribute further to the expanding flow of commerce.

Secretar.y

•

tinue

Sf

o£ the

receive

to

AmSi

th? A?ne:

an

Thesf c00P?ratlve

efforts should
assist immeasurably in
J!16 -T^storation of our world papeople.^ie"?' but should afford real pro-

Thev have received,

Sid

will

"ot

con-

full support

the

p

P

tection against recurring disaster.

,

Certainly, in

Problems of Economic Stability

should like to deal
primarily with the problem of
economic stability.
onomic
^
Today,

r

I

*

can-

'

•'>>.

,.
,

*An address by
der at

p°licy

a

luncheon

•

v

convinced that you

am

V

i

.'

„

r

Association,

Philadelp

AA

A

V

summary we

1-

3^

Organization

A^CIVAUHO

V/i

gUUAA,a HWH

hope will be the me¬
carrying out these samd

XI

1!ii

1

goais jn the political realm.
Tho

1

-

TTniforl

The United Gfrj+ocs has been in
States Iiqc

y-

forefront

s
,

U

dium lor
for

Cn,.

tne ro

a

^n. M ®7* Nations
which we

_•

Secretary'
oi

I

such

™e?Tti(?.n the Permanent

I

.

-

the

ins. Undoubt¬

.

v

.1.j..-

TUr»

*

owner

con¬

r»iau
plan cooperatively for the difJLUi
dis¬
*
ficult UUJf g to follow the armistice.
days

rstand-

e

will

era

to
iv

in¬

terna t i

■——-r-

on the one hand
the other. The his¬

nations, in the midst of a
for survival, had the
wisdom

war

to

increased

Pre¬

'<■ data

.v

no

brighter chapter than that

no

i<

whole "a

the end of 1942 and

«u

small

world,

such 38 yours

_

relative increase in odd-lot

auu

■■

-

.

on

which details how

organizations

ship

-

:

tain

people,

and the

•

VilVAVAVVI

1
uioutwiiuu*

tory of this critical

-

.

J.V

1

and static

have cause to
oe
'be grateful to
graituui iu

.of
American corporations
seem to haVe occurred in the :war
and early postwar periods from
^ ^Federal Reserve Bank of New York points out odd-lot transactions
foreign to American stockholders
r
reyeal increasing public participation in security trading and grow¬
and from large to small investors.
Since turnover on. the New York
ing rate of accumulation of equity securities by small investors,
Stock
Exchange represents
the
v j
Sees large shift of American securities from foreign to American
bulk of the trading on all organ¬
'
stockholders.
ized exchanges as well as over the
The November issue of the "Monthly Review of Credit and Busi¬ counter, the accumulation of such
a
ness Conditions" of the Federal Reserve Bank of New York, in an
large volume of securities by
the odd-lot customers
of New
article entitled "The Stock MarketsV::H.
.CU> l/AV
and the Small Investor" traces the

-«■!

—

,3>

The AmerL

.

issues).
Substantial shifts in the

covery

and las t ing

(net)

,

N '

«

miciuauuuai

prosperity.{not be stable

torn**

acquired over the
counter by member firms, * acting
as participants in underwriting or
selling syndicates, either from
large stockholders (secondary of¬
ferings)
or
from
corporations
raising additional capital (new

In Small Stockholders

*

--

a pleasure to have this
opportunity to discuss with you some
problems that confront this nation in our efforts toward world

securities,

Reports Increase

•

It is
of the

portions of large blocks of listed

...

1

obligations.

sumably they may have included

simple and obvious'truths!

"

•

source

obtained from other

pv How Incredible and how unfortunate that a
political upheaval was necessary to teach these

1

CS^UUMUltg

Deplores depression psychology and concludes there need be
interruption of progress.
~

sales appear to have
considerably exceeded the normal
portfolios of Stock E x chang e
firms and their partners. A sub¬
stantial part of the securities sold
by members through the Ex¬
change, therefore, mqst have been

ing in the market place will, from now on, serve
the people better than would continued regulation
of prices by the Government."—President Truman.

..........

as

5.

affording aid for reconstruction -and rehabilitation. Says U. S.
must supply bulk of needed capital, and warns we must
stabilize our
domestic economy if we are to fulfill oar international

stocks
"general
represented by odd-lot
from

*

■

of "emotional" or

liquidation

come

transactions is

the law of supply and demand operate

If

"

II,

persistently sold by members pf
the
Exchange in; off-the-floor

i

t

Secretary of the Treasury

Secretary Snyder stresses need of restoring economic stability end
progress throughout world as basis for lasting peace.
Ppints out

-,r e

The

1
^Wholesalers and retailers alike are awafe of the
danger of accumulating inventories at prices so
high that they cannot be confident of reselling at a
profit.
Manufacturers, thinking of their future
£ markets, will hesitate to raise prices unreasonably,

V.v,H

Abroad and at Home
By IION. JOHN W. SNYDER*

traders.

'

"In short,

not

public,"

resistance can do to excessive prices.
The consumers of America know that if they refuse

.

in the way

was

consumer

:

Qui

price decline -was the selling of
professional ;■ and
other large
traders and that whatever there

supply is rapidly approaching demand, v
"Nevertheless, some shortages remain and some •
prices will advance sharply /when ""controls are v
removed.
We have, however, already seen what

to pay exorbitant

mem'-'

the

mediate factor in the recent stock

areas

v

as

and

Exchange, mostly; in
off-the-flpor trading. In addition,
specialists (members specializing
in one or a few stocks) also began
to make relatively small net sales
at an increasing rate. Selling by
the larger traders was accelerated
iif the early f months of 1946, and
especially in September.
Thus, it
would appear that the major' im¬
bers

-The

more

of

I

Exchange at

time—American

same

Thursday, November 14, 1946

building
:

a

of
the
effort
at
stable economic
world.

(Continued

on

2529)

If

I,-

THE COMMERCIAL &

Number 4542

164

.Volume

Sees No

Total

FINANCIAL CHRONICLE

Deposits of /

Early Change::,fS||sl| i. D.- Banks
In DoUarfouiU Polity
//The "total

2523

|

June 29

deposits of ..all

com¬

mercial and

Madden, Director of Institute of Finance of N. Y, JJniversity,

Dean

savings banks in the
United States and possessions on
Out of the National elections on Tuesday of last week came the
June 29, 1946, amounted to $160,answer to a questioning American people over their fears concern¬
341),000,000, Comptroller of the;
ing the fate of our present social-and economic philosophy of gov¬
Currency, Preston
Delano,
an¬
ernment which has produced class strife and economic uncertainty
nounced ..on Oct. 18.
This figure,
throughout the land. > /
V ^
,
.
,
•
he "said, which covers the returns
The immediate effect of the flection was the birth of a great
of the 14,626 active b.anks of all
feeling of relief and optimism for^-rclasses, was a decrease of $6,181,^
the future in the knowledge that the goods currently listed as best
000,000, or nearly 4%,/in the a
period of great industrial con¬ sellers,
amount; of deposits reported by
fusion and social unrest was about
Wholesale
volume
last: week
the active banks on Dec. 31, 1945,
to
end.
No
possible ,s misunder¬ was down slightly from the high
but an increase of $8,417,000^)00,
standing of the people's will could level of the preceding week but
or 5M>.%, in the amount reported
be
read
in • the election
results, compared
very
favorably
with
on June 30, 1945.
^
I
since they were so definite and that of the corresponding week a
Comptroller Delano also stated
far-reaching. The incoming party year ago. New order volume gen¬
that the total assets at the end of
virtually received a mandate from erally was limited by some clos¬
;June 1948 amounted to $172,702;them to check the growing, tide of ings on-Election Day and future
000.000, which was $5,649,000,000,
uncertainty
and confusion
that price uncertainties of.some com¬
or
3%, less than at the end of
has beset us these many years and modities. Backlogs of orders re¬
December 1945, but $9,675,000,000,
restore to- the country some sem¬ mained at a very high level and
or
6%, more than: ak the "end oi
deliveries improved moderately.
blance, of; economic •. b.alance.
Jiine 1945.
Most of the decline in

K

analyzes conditions that might lead to change in sterling exchange I
parity, and concludes, because of close financial relationships be' rj
\: tweeji D, S* and Great Britain and because prospect. Sojr busiucss 1
prosperity ip England is favorable for Jong period,1 there .will- he
gna- need for alteration in world's hey currencies./ >;
^T ^: ^ ^ j
-

_

,

v While
Great Britain and the United States have recently an4
i nounced their intention to continue the existing dollar-pound rela-

% ti onship, the
Jlong-r a nge
^ outlook.-for
the dollar

"

-

in Great
make

change ..value
I of the pound
-will depend

.

it is/impossible tcj
comparison .of the pur¬

Neither is

it-possible to state with)

any

v

"

prices in the
two countries;
the inter-:•
^rational economic and fi- ;

to

of these

I <2)

• But,
in spite
difficulties, it is possible

dollar will be;

the

draw

sions *

,

,

definite/conclu¬

certain

,

^

■

degree of accuracy what the
future course of the pound and of

of

commodity

.

a

chasing power, parity/ .of the-two
currencies at the. present time

•

(1) f.thei

€ movement

States than

Britain. Under these cir¬

cumstances

ex-

"

-lipn

-

-

further in the United

t

_

_

assets between December J945

by^Wwg!ihtofcC(^ntxhd

and

J*une 11946. wasv in\ holdings
of
United States Government oblxga-

.On. Monday
President

.

of "this

week

accepted, the

Steel

the

people's

Industry—Despite

a

pro¬

duction pattern far more intricate

Will influence
Action in/turning, qontrol of Con¬ and varied/than in wartime, the
pound.and'the dollar. :;;
- ; r tiohs,. .due. to the, retirement of gress over to. the Republicans, and steel industry last week regard¬
-.v:.;; ...
riich securities held by the banks; in so: doing called for the exer- less of scrap and certain labor
Dean J. T. Madden
Effect on Commodity/Prices
I sai<3 the comjptrojler's ' announce¬ ci&e 'of "wisdom and restraint" by shortages was turning out steel
I Britain; 1(3)
both major parties to avoid the at an unprecedented peacetime
/
Ihe fiscal pol*'
j
lb analyzing the 'effect ?oi; com-f ment, which added:'
"The banks held, obligations of danger of graye consequences for level which on an animal basis
sicies. of both countries; and (4) modity
prices 'on,/ the' . dollar-would produce more than 84,000,I the degree of economic and fi- pound relationship,' the bulletin the' United'* States Government^ .a divided* government.
000 tons of ingots—21,000;000 tons
direct and guaranteed, of $96,497,yianpial '.cooperation between th^ remarks:
On the same ,day President Tru¬
M - *" M-'
"
two countries, according to a bul¬
armistice .above the previous peacetime peak
"If
Commodity prices in the 000,000: iii .June 11946; a decrease man advocated anew
letin entitled, "The Relation Ret United States should rise sharply of $5,407,000,000 or 5% since De-^ in the relations between labor and of 1929, according to "The Iron
-

various factors that
the

posi-j. tion
of Great
Inancial

.

.

v

,

.

*

-

.

"

-

r

t

.

cember
1945.
Obligations
of
levels, then the;
States and political subdivisions
British / Government will; nppre-,
held amounted to $4,165,000,000;
date the pound sterling in order
an.' increase / of $82,000,000, and.
to- protect its own price structure.
other securities/held amounted to
An upward-valuation of the pound
The official appreciation of the would prevent increased prices of $5,060,000,000,- - an : increase * of
l^nreigiv exchange /value of the Ca4 imported/- conMAoditiesy ; notably $531,000,Q0Q., The / aggregate of alJ
nadian dollar and of the Swedish from the dollar block, from, fqre-j securities: held in J line 1946 was
.Ikropa on July ,5 and 12, 1946, re¬ fag upward the post. of living .at $105,-722,000,000, / and represented
spectively, coinciding with thd homo and thus, remove /the dan*i 61% of the banks' total*assets. At
-constant .'rise in: prices * of* com-* ger,of getting, jn motion tbb spiral the end of December 1945 the ra¬
tio was .62%
i; T
: ' '' ■.
jmodities/in the United-. Stated of rising prices apd wages./
f
"Lo.ans totaled $31,693,000,000
^since July 1, 1946, when" the war-;
Jf4: on. the .other hand, after the in June 1946, a net increase of
/time price controls expired, has
Current upward moyement of com¬ $1,227,000,000,- or 4%, since De¬
♦raised ' the/question of the future
modity prices in the United States cember :1945| arid/an Increase or
relationship between the pound has run its course and is. followed
$3,601,000,000,
or
nearly ''13%
•sterling and the dollar. As was to
by a sharp break,, as occurred in since Jiine last year.:; The total of
jfc>e expected the subject received 1920, then the British-Govern¬
loans on real estate held increased
! a great deal of attention in the
ment may deyalueithe pound :$ter-f 13%/.since!December 1945, 'and
.financial centers of the world and
ling in terms of the dollar in order amounted
to
$10,1.46,000,000 'in
.evoked many conjectures and all
to> maintain the country'^ com-j June
J946.w Gther loans showed* a
-3unds of rumors. ISome contend
petitive position in the. world's net increase
of. approximately
'that the pound is overvalued and
markets.,; Consequently, the first
$60,000/000/
/therefore is- likely- to • be' revalued
conclusion may be reached that
^Cash and; balances with other
ifa V the not - too; distant- .future^ the
fufur.e pf* the pound will be
/whUeotbers claimthatv since; thq determined in the main by the banks, including reserve balances,
in June 1946 were $33,461,000,000,
frigid wartime price controls in movement, of prices and economic
a decrease of $2,154,000,000 since
><Ireat jBritain^ are > still in effect conditions .prevailing in the United
December 1945. /
.sand are being enforced more efStates. -. This / statemem/ abpli e&
'Total. capital
accounts were
tfieiehtly than, in the United States* with * equal force- to ah sterling
"Wit- appreciation of the pound, td area currencies as well as to the $11,177,000,000,: an increase of
$565,000,000, or 5%, in the first
Its previous parity of $4.86 may be

'tween the Pound Sterling and the
/Dollar," recently issued by Dean
"John T. Madden, Director of the
institute of International Finance
"of New York University! f •

from the: current

,

.

.

,

,

.

"

.

.

expected.

1

currencies PfahUmbertof coun-;

'

.

I

When Is Currency Overvalued?
.Ordinarily it is not difficult to
Ascertain whether a currency is
over or undervalued,
but at the

tries which are
influence

of

greatly under the
conditions

prevailing in the United
British

portant role in the price structure
Great "Britain
than in the
The British Gov¬
ernment has provided in-its budget
for. the fiscal year ending March

Foreign Trade

pound, the bulletin states:

1

;

(

:

$125,386,000, an.
increase- of
$6,162,000,000 since
December 1945, and United States
Government
and postal
savings
deposits -were - $13,558,000,000, a
reduction
of
$11,221,000,000, or
45% in the period, due principal¬
ly to the withdrawal of War Loan
accounts to. provide for %F!ederalj
debt
retirement./ : Deposits
of

June

discussing Great "Britain's
-present time this is practically an
impossible task/ In the first place foreign trade/as a factor influenc¬
/subsidies play a much more im¬ ing foreign exchange value of the
•of

,

individuals, part-r
land
corporations in

nerships,

States."

In

-"United States.

half of .the year.

"Deposits of

economic

«

'

lowering the
international -vplue ,of the pound
sterling, would make British com¬
"It is obvious that

modities cheaper in foreign mar¬

1946

were

management in- an economy

freed Age,"

from w$r t i mni^restrictions oh
prices and wages; With the Presi^
dent's, announcement bn Satur¬

national

metal,working
its weekly-summary, of

paper, in
the steel
Unless

trade.

-/I/-!?'"'

'

hampered by

Mr;!'

coal mine
shutdown later this year the in¬
day ending almost all controls,
with the exception of rent, sugar dustry expects to maintain this
unusual output over the-next sev¬
and. rice, he had:, this to say; "To¬
eral months. Some sources fear,
day's action, places squarely upon
the magazine states, that John L.
management .and labor the; reLewis in his attempt to success¬
$toonsiibility> for.1 wor king out
agreements fori the adjustment of fully gain increased ..wages from
a

.

their-

differences

without

inter¬

the

government

may- adopt
the
plan of attack as he did last
April. // !
/ MM, |m ; ;. I .same

ruption of production."

.

,

.

reviewing the course of busi¬
The immediate
effect of such
and industry; for- the past
.action, would involve major steel
•We£k it/Was nbtfPThat industrial
".I In
ness

companies who because of

meager

•pri^ncti<?u; for the ; country: "at coal stocks would have to
begin
Targe continued atr a very high /to. curtail blast furnace
opera¬
which

tions

peaks, jn/output attained in ,some output. ;A
industries.

For

the

week

in

turn

reduce; steel

curtailment

ended

of 'steel

production at this time, after the
Oct. 26,- total unemployment com¬
•industry has indicated what it, can

pensation

claims

initial

while

declined

claims

for

1.0%,

the

like

.do if it is allowed to go

forward
unhampered, the above trade au¬

declined toy 1.7.%. '.
thority- /observes, would create
Among the latest weekly busi¬ national crisis.

period
ness

*

put,

barometers; steel ingot out¬

electric

Another

kilowatt; production threat of

aside

factor
a

coal

and daily; average crude oij! out¬

expected to

spur

put VU rose for the week; with
production of. steel reaching the
highest level* since June, 1945. Bi¬
tuminous coal production on the
other hand- showed a fractional
decline for the week, while carloadings of revenue freight re¬

and

flected v aor

greater, drop

of: 2.1%,

steel

cause

from

a

the

tie-up which is
steel production

consumers-to

at¬

tempt to lay in as much steel as

is

possible
tors

the

possibility

of

a

strike early next year. Fac¬

steel

building up,'"The Iron
points out, which by next

are:

Age"

February may present
serious

threat

to

a

far more

continued

high

922,312 cars from the previous
16-year high of 942,257 -coal mine

steel output than the spectre Of a

week's

shutdown does today.
Speculation in the trade as to
Production of automobiles and Whether or not the OPA will soon

cars.

trucks

in

the

United

States

rose

decontrol

'carbon

steel

products

after its action two weeks ago

in
be at a now high point' for this decontrolling alloy steel which
States and political subdivisions year.
It
is
reported
that
car constitutes about 9% of total steel
showed an increase of $859,000,- makers' inventories continue seri-1 output, continues rife// No /steel
for the week-and

was

estimated to

£334,000,- kets ' and hence; .'foster " exports/
'<©00, i.e., $1,336,000,000 (at the rate Great Britain is, however,lone of, 000,/ or nearly 15%, in the first oiisly unbalanced, with sheet steel; pipdpqer or steel user expects
half of the year, toeing $6,680,- lead, copper, zinc and other ma¬ wholesale
Of i£ =$4)/for subsidies with the the largest importing countries fa
price advances when
object :of preventing increases in the rW.prld, since with /exc^Ptipn of; 000,000 on June 39, 1946;
De¬ terials-in scarce supply. In an ef¬ carbon steels are decontrolled, the
/prices /of •fpod. and, tOia .smaliey coal /she/does jiot toosspss /natural posits of banks were $12,364,000,- fort: to complete 1946 model tout-' magazine states, but rather looks
-extent of utility clothing.
In the resources in sufficient quantities 000, a decrease of $1,725,000 000,; put;.at the "earliest possible time for
upward, revision I of
those
'"United States, on the other hand,' to.keeo her industries going and- and. other deposits were $2,361,-. manufacturers will endeavor to items, the production of which has
been held down due to the-low
oid to agriculture including sub¬ deperids on foreign raw. materials,, 000,000, a decrease of $255,000,000!'; increase the volume, not
only for
sidies in the fiscal year 1946.-1947 foodstuffs, and semi-manufactured
the remainder pf November ' but return to producers. So far there
.-will .amount to only $.1,200,000,000. goods. Hence, a lpw international
also
during December. For I the is not the slightest indication that
31, 1947, the amount of

.

over prices as well value of the pound sterling means
rationing in Great Britaift are that Great Britain has to pay more
<®tin alLembracing,
and conse* jn pounds fpr imports in so far

The controls

Earharl President of

«s

j<quently money
tute

the

claim

a

on

does not consti¬
goods.

Without

required coupons an individ¬

they originate in countries
side, the sterling..area.
.

as

out¬

.

"Thus, Great Britain- being' at

his money freely only
the same; time a. great exiporting
purchasing unrationed goods and
importing nation is faced with
sand in the black markets. ■* In the
an irreconcilable conflict between
"United States rationing, with few
.advantages obtained ,jn the export
."•exceptions, has been abolished en¬ market from
devaluating the curr
tirely. Money, therefore, has be¬
rency and advantages accruing to
come again a claim on goods and
.services and individuals can use an importing country from rais¬
ual

can

u^e

in

it
,

as

are

they see fit.

Price controls ing the foreign exchange value of

;being rapidly removed.

The

"process of conversion from war to
peace

production has- progressed




its

currency.

This

cleariy indi¬

cates that the BriUsb Government

(Continuedi on page 2526)

according to alloy steels, having beem decon¬
|
News," passenger car trolled,will be adyanced/
With iron ore decontrolled ef¬
output in the United States totaled
64.071 units and compared ./with fective Jan. 1 and with alloy steel

week

ended Nov. 9,

"Automotive

San Francisco Reserve
k C.

E. Earhart has been ap¬ 66.091 units in the week
previous.
pointed President of the Federal
Reserve; Bank of §an Francisco, ,r'Retail /volume rose moderately
to fill the vacancy caused by the in the week under the stimulation
death on Sept. 28 of Ira Clerk. Mr. of cooler weather and brisk Elecrl
Earhart entered the service of the tion Day shopping. Volume con-i
tinued to be considerably above
Bank in 1917, and has been an
officer, of the
was

noted

in

bank since 1920 it
the San Francisco

"Chronicle" of Oct. 23. Mr. Clerk,

having
tions

on

Australia, came
1905, and

to the United States in

became a citizen in 1914, He has
"been With the /Reserve Bank since
the

last

named

year.

•

■I'll :.;/;

continuance of regular
other

steels

be untenable and the

appears to
steel indus¬

try looks for a sudden change in
position on the part of OPA.
-The American Iron and Steel
that of the corresponding week a
Institute announced on Monday of
year ago. Consumer demand was:
this week
the opening rate of
directed toward almost, all lines;
steel companies > having 94 %of
of goods where quality prevailed.the steel capacity of the industry
The -supply-of many commodities
will be 91.2% of capacity for the
was slightly larger than in previ-j
week beginning Nov. 11, compared
ous, weeks.
Small gift items,
housewares and coats were among
(Continued on page 2528)
-

who was born in

been removed from con¬

the

trol,

m*uik

U'

•ii$ '-JH

THE COMMERCIAL & FINANCIAL CHRONICLE

2524

avoid this internal travail.

:ls|. As
'

■

.

V

^

;'v

7 r^ntinuei from

We0e<

can ever

conceptions of those ele-j did and constructive element
party which in the party, but who knows
have ' survived the tornado,« how many are hv agreement
and which without the slight- with him?
CertMnly,.there
est question will be dominant appear few enough with the
in his own party's representa¬ courage to make public ad¬
tion in the next Congress. If mission of being a follower of
he continues to listen to the that
politically unfortunate
ments in his own

soul. Then there

the Van-

are

counsels of Mr. Bowles, Mr.
Murray, theJPAC or to make denbergs, the Stassens, and a
weak concessions to Mr. Wal¬ number of others who consti¬

others, he can

the

and

tute the so-called

hard

of

time

it

during

the

pas t" months ■ because
he
could not;see the hand-writ¬

The fact

tion

on

Continua¬

the wall.

is, if the record of

the

party members, particu¬
larly in the House, is careful¬

ly studied, it
that

of

of

the

same

and frustrations.

blindness

His position

none

appears

soon
the

more

Roosevelt

dent

his

in

own

ficult one, but

have

a

livable existence dur¬

An Understanding

With

...

.

that there

is not

a

jjis Qwn

Sooner

later

found

be

must

the

or

Bank of Boston recalls effectiveness of
buyers*
strike after World War I, but cautions that
present situation is
not entirely similar since there is now
much less credit, the farmer
is in a stronger financial
situation, and corporate and individual

apolitical

savings

way

reshuffle

to

deck

in

this

are

considerably larger.

The

•<The m?st significant feature of the present situation
£.an arbficial and abnormal period following a great
First National Bank of Bos-*'s

ton

in

its

Letter.
some

current

New

England

Continuing the Bank

"It may be of interest and
sible
guide to
future

says,

a

pos¬

develop¬

ments

to

note

the

characteristics

standing

of

of

some

out¬
war

and

postwar periods, and specifi¬
cally the comparison with the pe¬
riod

understand¬

not very much that is
constructive in its record in

recent years.

Deliberately or
ing with his own party he
must then face the Republi¬ not, it has played a role of
obstructionism.
can majorities in both houses
It has now
of Congress. Indeed this sit¬ been" the beneficiary of a
uation must not be lost to large vote of resentment and
sight for a moment while he rebellion against its; political

Democratic

the

difficulties

(although not ap¬
Party.: It has its extremists pearing to be designed for
;•

as

at both ends of the

that

"

we

savs

ys

'

resulting inflationary spiral might
be the 'last straw.'

"Following

slump of '• the
fall of 1919, com¬
continued upward
until May,
1920, when they were
market in

the

the

modity prices
around

16%

above

November,

1919, while the cost of living also
rose
at a rapid
pace.
Wholesale
commodity prices since August,
1939, have advanced by about
71%, with approximately 20% of
this gain made since the first of
.

,

choice.

tion of wealth and the serious dis¬

»

locations

Longer Work Hours

because

prices

by the Department of

Agriculture

on

of

deferred

Needed, Govt. Says
A report

caused

by

do

war

not

show themselves immediately af¬
ter the conflict but are delayed

Nov. 5 stated that

the

huge

of

vacuum

demand.

Commodity

production lay in working harder
or longer hours —
perhaps both.

Announcing that the

September

index

industrial

stood at 177% of the prewar base,

1935-39, and 5% higher than for
Sept. 1945, the report stated, it is
learned from the United Press:
"The

production of

lead

wire

and

many

'

basic

nails,

individual

income payments are soaring to
new heights, the report continued,

fundamental

financing,

supply,

money

huge

same

pent-up

great
and

scarcities,

demand—predom¬

inated in both postwar
periods, it
is to be expected that there would

continue

pressure

and temporary exhaustion of con¬

World Wars.

that there
less

also

are

similarities.

credit strain.

farmer is

important dis¬

There

is

now

much

The individual

currently in

a

stronger

financial position. Corporate and
individual savings are consider¬

ably larger.
While farm com¬
modity prices are at about the

Comparison with the Postwar

production

of

"Because the
forces—deficit

to advance, but be strong similarities in features
of
accumulated of the business patterns. On the
stocks, strained credit conditions, other hand, it should be noted
the

Period of World War I

same

level

as

after the First World

"The year 1919, as is true of
War, non-agricultural prices are
1946, was devoted largely to ad¬ considerably lower.
justing business to a peacetime
"After
the
First World
War

Instead of the

basis.
war

end

being followed by

the

of

slump
materials is now near capacity; and heavy unemployment—as was
demobilization is virtually; com¬ predicted in both periods — labor
is ' at
work
finding
some opponents.
pleted and unemployment, is now shortages,; strikes, low man-hour
]Now, the party can con¬ at' a level generally considered to output, and high unit costs pre¬
ground on which his own
party can stand as a unit. It tinue this type • of behavior be: close to a practical minimum. I vailed. Under the" influence of
"Further
substantial increases heavy 'domestic deniand and ab¬
isa ; practical situation
by during the next two years. It
in industrial production will have normally large exports, commod¬
which the President is faced, can avoid definite responsi¬
to be attained to a large extent by ity prices advanced sharply.
At
and v no ' doctrinaire attitude bility for the formulation of
longer hours Of work and by more the peak, wholesale commodity
will serve any good purpose. broad,
constructive policies output per worker."
prices in the First World War
At the same time as there are period were 148% above prewar,
It is here, of course, that the and for vigorous efforts to
acute shortages persisting in vari¬ and in the Second World War
pe¬
Republican party also must see them take effect; it can ous
key lines, and supplies of steel riod were 71%, whild the gains in
fabe and accept a heavy re¬ content' itself with. evasive and iron
scraps are tight, as well farm prices were 138% and 168%,
It,
too,
has tactics designed to place their as foundry and malleable grades respectively.
sponsibility.
In
both periods
of pig iron, iron castings, copper, scarcities
prevailed in textiles,
been] about as badly split opponents in further political
asunder

is that
war

following the end of the First
patronage and
World War. It should be pointed
prestige. If the two major out that
comparisons have their
parties presently find them¬ limitations and that
any analysis
selves largely in agreement, to be valid must
give considera¬
let them merge to face an op¬ tion to the dissimilarities of pres¬ this
year, and another upward
ent and past, business patterns and
surge may be under way with the
position differently minded.
to the changed role of the Federal
lifting of price controls.
If they differ fundamentally,
Government, particularly in times
then the people will have an of
pissimilarity Between the Postwar
depression.
Periods of World Wars I and H
"The full effects of the destruc¬
opportunity to make a real
mere

although the nation's economy is

Having once come to some and
sort of workable

Business Affer World War I and II

great deal in it of which the
funning at top peace-time speed, sumer buying power bring about
party can be proud. There demand for most products re¬ a recession. This was the pattern
simply is no unity in the Re¬ mains unsatisfied, and that the after the Napoleonic, the Civil, the
publican Party at this time, only hope of increasing industrial Franco-Prussian, and the two

ing the next two years.
m

remains

the next two years.

1946

First National

and do it

last

three campaigns made telling
party is a dif¬
use of this record. He was not
he must find
some
effective modus oper¬ always very fair in his inter¬
andi as respects it, if he is to pretation of it, but the fact

before his

some such thing
effectively and con¬
vincingly. Such is the respon¬
sibility
for
"cooperation"
with the President during

is able to do

than

figures
conspicuously in the
eye
is particularly
would now, of course, bring public
him many more difficulties respected or, folio wed. Presi¬
ing

and remain there until it

own

country so that political par¬
progressive ties stand for
something other

hardly expect much support wing of the party.
from his own party in Con¬
A Poor Record
gress, to' say nothing of the
opposition.He has had a

It

is, however, seriously to be

questioned whether the party
really come into its

first page)

and

lace

■

Thursday, November, 14,

a

shoes,
automobiles,
particularly in housing.
sugar,

"The

in each

wars

case

there

was

official

an

disposition

to allow nature to take its course.
This made for a sharp and clearicut correction.

is

for

But the

policy

now

the

government' • to;; :step
into
the
breach ]; and

quickly
cushion

the shock, and it has
commitments to provide
support, particularly in the case
of agriculture.
This may prolong
the readjustment period and delay
many

recovery.
"The upturn

well

as

the

as

downtrend in

the postwar period
of the First World War was start¬

ed, by the consumer who in the
last quarter of 1920 began to,

buy
after six months of re¬
and straint, as prices had been brought
again,

.

within

the

buying

range.

Con¬

left the

sumers' goods industries recov¬
purpose); it can be cap¬ it was indicated by the United workers with
surplus earnings
tious, doctrinaire, and diffi¬ Press, the latter's advices also which were used on a spending ered first, with the heavy indus¬
cult to work with; it can, in stating:
spree. In 1919 it was featured by tries following from six to nine
"In
August — allowing for
expenditures for silk shirts; in months later.
The construction
short, "play 'politics" during seasonal
adjustments
the na¬ 1946
by the purchase of jewelry, and automobile industries served
the next two years.
If so, tional income hit a new record
diamonds, and antiques, as well as
it
will
deserve level of $169,500,000,000. This was by attendance at night clubs and as 'the spearhead for the subse¬
pear to have no strong po¬ however,
litical ] convictions or princi¬ nothing good at the hands of 3% above the wartime peak hit race tracks. In both periods the quent vigorous business expan¬
in Feb. 1945.
the voters, and
cost, of living mounted and en¬ sion.
ples,
^-'00$
/
certainly the
Part of the increase was attrib¬ croached
upon purchasing power.
President
Governor Dewey, the last
will
g
Conclusion g4; g '
have
good uted to the fact that some workers But
then, as now, the worker
"There are significant points of
Presidential candidate of the cause to complain.
already are working longer hours. thought in terms of money wages
The
average work week in
all instead of real wages, and this similarity as well as of differ¬
The Republican
party,, is, of. course, regarded
Party now

spectrum.
It has its full share of profes¬
sional politicians, particularly
politicians, with Presidential
bees in their bonnets, who ap¬

•

.

.

,

,

the titular head of it, but

as

obviously he is in no position
to Speak for it effectively. He
apparently is not particularly
eager to try to speak for it,
and^-if the bald truth is to be
told^-no one knows precisely
yybat positions he would have
it take on current questions
even if he had his way.
There
is an
allegedly reactionary
"wing" largely under the in¬
fluence of Senator Taft, but
t h e
dispassionate observer
studying the Senator's record
and analyzing what he has
had to say in recent years,
,

finds

it

a

little

—

.

difficult

to

place him in the role he is

it to itself and to the

owes

country fio
definite

what

it

come

fo

some very

conclusions
stands

for

about

in .this

troubled world, and, to let its
stand be

generated :' a vicious wage-price ence between the two postwar pe¬
riods and these should be t&kett
spiral.* s-" •' '
"The buyers' strike developed into consideration in
attempting
gradually in the, postwar period
to appraise the future business
of World War I with the first -Buy

6%

Nothing' clubs appearing' in Au¬
gust, 1919, which were featured by
the wearing of old clothes and
hats. At first these groups made
no headway as a large segment of
the population continued to spend
freely. By the first quarter of
1920, however, the rise in living

lower than the wartime peak

of

$47.50 in Jan. 1945, but 9%
higher than the $40.87 in Sept.

widely'and positive¬
ly known. It will be no easy 1945.
task. The party is now con¬
stituted of men of
nearly all Special Libraries Assn.
political
faiths. • Doubtless See Television Broadcast
some of its
membership, quite
The first fall meeting of the
probably some of the figures New York Chapter of Special
which

now

stand rather

con¬

Libraries Association
Station

was

held at

WABD

spicuously before the public,
would have to be
relegated to

in. Wanamaker's
on
Nov. 13, where the members
were guests of the Allen B. Du-

back seats in the

Mont

cils.

Cuff, station manager, addressed
group, which was given the
opportunity of seeing a "behind

party coun¬
Some of them probably

would make trouble.

Rebel¬

lions would

matter

what

occur—no

strong constructive pro¬
supposed to play. 1 Possibly
gram or line of policy were
ex-President
Hoover repre¬
adopted. The temptation will,
sents the most coherent, can- of
course, be very strong to




manufacturing industries in Au¬
gust was 40.3 hours. ^Coupled with
an average wage of $1.11 an
hour,
this brought the typical manufac¬
turing paycheck to $44.61 a week,

Laboratories.

Samuel

H.

the

the scenes" televised broadcast of

"McCracken
Men

in

Comes

the

audience

Through."
were

see

a

//

trend of events in

a

should serve as

general guide to what may lie

ahead, but allowances should; be
made

for

dissimilarities

"In the
were

ers'

summer

scope

of possible readjustments in

the various segments of our econ¬
,

in

various

at buy¬
parts of

So far, as an organ¬

ized

movement,

been

effective,

v!

of 1946 there

attempts

sporadic
strikes

the country.

they

but

have

there

not

is

a

Commerce Dent. Opens

Los Angeles
Establishment

headquarters

Calif.,

of

for

geles,

field service of the

luxury

lines

have

slumped. Should there be another

Commerce

a

regional

office in Los An¬

and

in

*

Field Office | §

growing resistance to high prices,
sales

in jeer

gard to timing as well as in the

was

the

expanded

Department of
announced

on

prize- upswing in prices followed by a Sept. 11 by Carlton Hay ward, Di¬
Vig:
:ggg fresh round of wage demands, the rector of Field Service.

broadcast

fig jts.■. -VV:

The

buyers'
strike
developed
and
helped bring about the recession. omy,"

in¬

vited to remain after the program
to

costs had become so great that a

outlook.

the earlier period

of

the

Death of Three Leaders

Republican Congress to Cut Taxes

OPA Decontrol Activity Continues—Additional
Rental Areas Bronglit Under Control

/

Conspicuous in ABA
leading Republicans have gone; on record
substantial cuts'in taxes and government expenses, with Affairs Occur in October

Folio wing, the election?

predicting

as.

the

Senator

had

to address

gone

For the Army and Navy

gether $10,000,000,000 to $12,000,000,000; for veterans $6,000,-

$30,000,000,000 would probably be
achieved next year as a result of
the election of a Republican Con¬
The Senator added that
taxes "probably" could be cut and
that they "should be cut because
they now are taking one-third of

Representative
of Minnesota,

House,
Knutson,

Harold

items

as

taxes would be
a

achieved, and that

that when the
Congress convenes a contest
will ensue on tax revisions. The

"A

sane

out

over

to

month.

On

Savings Banks, and held many
other posts of leadership in sav¬
ings bank circles both before and
after becoming a general, officer

tionally American approaches
to full employment, a high level
of business activity and lower

of

prices will again prevail."
"

Mr. Knutson

Mutual

of

Association

National

government
revenue.
and
many
other tradi¬

This

of
of
York, and President of the

New-

in-,

creased

the

cition.

said the unoffi¬

he

Bankers Assoof his death

American
the

At

was

time

member

a

of

State

the

Republican
Tax
Committee, headed by
Representative Reed, of New

Banking Board of New York. Mr.
Benson was elected Second VicePresident
of
the
American

York, will meCt in

Bankers

House

cial

Study

long

a

relationship

direct

a

Chairman of the Senate
Finance Committee, Sen. George,
told reporters in Columbus, Ga.,
on Nov. 7, according to the Asso¬
ciated Press, that Republican con¬
trol of Congress would not mean
an immediate sharp reduction in
taxes. Mr. George added that he
and Senator Taft had agreed that
any tax reductions "must be grad¬
present

The Senator went on to
express the conviction that Presi¬
dent Truman would veto any bill
"to provide a national deficit."

level of taxation has

period."

Washington

ing the Republican tax legisla.

Association

tion.

was

its

at

convention in

Francisco

later this month to begin draw¬

San

1936. He

An

majority of

overwhelming

New York

of banks in

State

in favor of permissive State

islation
them

close

leg¬

authorize
Saturdays

would

which
to

are

on

it was an¬
Chester R.
of the New
State Bankers Association,

throughout the

year,
Nov. 7 by

nounced

on

Dewey,

President

York

who is also President of the Grace

National Bank of New York*
>

Mr.; Dewey's

based

on

tionnaire

statement

the results

of

a

was
ques¬

this

subject com¬
pleted by the Association among
on

its member banks.

A total of 435

banks, or 84.1% of the 517 banks
that answered the questionnaire,

Reported that they favored yeararound

Saturday closing

on a per¬

missive basis.

Eighty-two banks
were opposed.
The advices from
Mr. Dewey also state: ;
"The results showed a substan¬
tial increase in

sentiment favor¬

ing year-around Saturday closing
over what existed a year ago at
this time.
In a poll of its mem¬
bers conducted by the Association
in November, 1945,

a

total of 269

banks, or 58.4% of the 460 reply¬
ing to the questionnaire; said that
they favored permissive* closing
on Saturday throughout the year.
Hast year's poll also asked mem¬
ber banks to express their senti¬

ments on Saturday closing during
the
to

summer

months—from

September.

June

On this question

total of 254 banks, or 63,1% of
the 402 banks replying, reported
a

themselves in the affirmative.

the Association's
most: recent
Saturday
closing
questionnaire was the largest and
most representative of its mem¬
bership ever to be received on
this question.
The breakdown of
results by counties discloses large
"Response to

areas.-

The heavy "yes", votes

recorded up-State, in agricultural
as well as urban territories, was

ask the

Will

-




Ayres was' identified

General

with the economic aspects of the

close

to

on

in

legal for banks

Saturdays

throughout

30

it

made

was

of

turn

veterans

and

defense

total population

York in ,1945
the ISO
finally, agreed to use three official
languages: English, French and

meetings

Coonley Heads New
Int'l Standardization
Howard

i

Committee

director

departments

the

of

education

and

statistics

of

of

the

the

of

vigorously for official
of the Russian ; lan¬

has pressed

recognition
guage.

,

,

"Technically the new ISO or¬
ganization is 'provisional,' and it
for Standardization^ the formation
Will be formally completed* when
,

of which has just been completed
its constitution is ratified by :15
by delegates from 25 nations
national standards bodies.
Actu¬
meeting in London, it was an¬
ally it is starting active work im¬
nounced by the American group
mediately by reviewing the projon Nov. 1.
Official notification of
ects and reports of the two prede¬
the completion of the new organ¬
cessor organizations and consider¬
ization and Mr. Coonley's election,
ing a number of new proposals.
the ASA report said, was received
The United Nationals Standards
from London recently.
Thet an¬ Coordinating Committee will con¬
nouncement issued by the Ameri¬
tinue in existence and maintain
can
Standards Association, also its office in London until the ISO

said:

headquarters in Geneva is estab¬

"Gustave L. Gerard,

staff Presi¬ lished."

dent of the Belgian Standards As¬

sociation
of

the

will

new

ization

Vice-President

be

international

which

is

organ¬

be
ISO. Head¬
quarters will be set up shortly in

known

expected to

informally

Geneva,
chosen

as

Switzerland, which was
in

12 to 11

a

close final ballot

over

cf

Montreal, Canada.,

"Formation

of

consolidates into

the

new

Mr.
is

Coonley, the new ISO head,

former President of the Na¬

a

tional Association of Manufactur¬
ers

and "of the American Standards

Association, to which he currently
devotes his entire time as Chair¬
man of the Executive Committee.
He

for many years Chairman

was

of the Walworth Company

ISO

single organ¬
ization the work of the old Inter¬
national Federation of National
a

still

a

and is

Director of that Company.

Standardizing Associations (ISA)

During the war he served as di¬
rector of the Conservation Di¬
vision
of
the
War
Production
Board and at the appointment naf

and that of the war^born United

Fresident

Nations

Standardsi Coordinating
The

Committee.

Electrotechnical

International

Commission,

third i rapo.rt a n t

division.
,

be

In 1920 bodies.

The

a

standardizing

agency,„ is expected to
with ISO shortly as its

will

Russell. Sage Foundation.

New

The Russian delegation

Russian.

Coonley, Chairman of

the Executive

in

and in Paris in this year,

American Bankers Associationac- American Standards Association,
tivity for a number of years, his has been elected President of the
new
International
Organization

■

State legislature

January to make it

a

,

in

Tfixas,

.

affiliate
electrical

members

*

of

ISO

the national standards
Its, work will be carried

Roosevelt

became

he

chief adviser of the ChineseTWar

Mr. Gerard „is
government spon¬

Production Board.
President of the

.

sored Institut Beige de

Normali-

was

Secretary of.: its

.predecessor, the

Associatiori*Belge

sation

de

and

Standardisation

which

was

founded in 1919.

Cleveland Trust out' through technical committees
The 25 nations represented in
Upon which any country, may be
the formation of ISO were: Aus¬
represented* it is so desires.
association follows a
was; probably best known for his
tralia, Austria, Belgium, Brazil,
n the; State which disclosed -that
editorship of the "Cleveland Trust / VThe governing body of ISO

Ihe year.
*

The

nore

The same advices said:

proposed

of the
poll of banks

action

than 86 % favored Saturday

losings

.on a

year-round basis.

.

"Members of the Boston Clear-

ng
y

House Association unanimous-

voted to support the move for

he legislation.
At the same time
interesting in view
hey went on record as agreeing
of the belief heretofore prevailing
that
sentiment
favoring
year- j to close on Saturdays throughout
round Saturday closing wa* tua- dievyeaf. if" the law is enacted."

particularly

Houston,

particular interest being the Re¬
search Council and the Eeconomic
Policy Commission. In addition to
being Chairman of the Economic
Policy Commission of the Associa¬
tion, Gen. Ayres was a member
of its Research Council and
a
member of its Advisory Commit¬
the business customs and habits in tee on Special Activities.
their individual communities.
In
Gen. Ayres was Executive Vicenumerous up-State areas Saturday
President of The Cleveland Trust
is an important business day, and
Company in Cleveland, Ohio. He
banks in some of these territories
derived his military title from
feel that to be closed all day Sat¬
service in two world wars. During
urday all the year around would World War
I, he was director of
work a hardship on their cus¬
statistics. He served as a Colonel
tomers.":; ^
?
*• ' 4
on the General Staff, was chief
Among those who recently de¬
statistical officer of the U. S.
clared themselves in favor of a
Army and chief statistician of the.
5-day week, was Arthur W. Mc¬
A.E.PV When the war was oyer,, he
Cain, President of the Chase Na¬ became chief statistical officer of
tional Bank of New York, who at
the
American
Commission
to
a
dinner at the Hotel WaldorfNegotiate Peace. Subsequently, he
Astoria on Oct. 9, said that the
was
economic
adviser
to the
bank had found the five-day week
Dawes plan Committee in 1924,
"satisfactory duriftg the summer
In Oct. 1940, he was called back
months" and "the management is
to duty to serve in World War II
favorably disposed toward the
as director of the War Department
five-day week on a year-round
Statistics Branch - and coordinator
basis provided the necessary per¬
of all Wart Department, statistics*
missive legislation is passed" by
In July, 1941, he was promoted
the. next- Albany. Legislature.
to the rank of Brigadier General;
According to advices to the
with which rank he retired later.
"Wall Street Journal" of > Nov. 7
Gen. Ayres started his career
from its Boston Bureau, the Mas¬
sachusetts
Bankers
Association as a teacher. In 1908 he became
c -

Oct.

of workers and their families have
3,585,379 in 1940 would be brought contributed to the housing short¬
under rent control on Nov. 1. At age in most areas."
the same time, the Bluefield, W.
The field and national force alVa. area was extended to include ready working exclusively- on
Boone, Fayette and Summers rental ceilings numbered 6,114 on
Counties. The announcement of Nov. 2. Many other OPA workers
the OPA said:
spend part of their time on en¬
"Eighty-one of the areas are forcement, accountingr and ad¬
being controlled for the first time ministration.
and controls are being restored
On Nov. 1, controls were lifted
in the remaining seven areas.
from nearly a hundred additional
"The new and recontrolled areas items including, according to As¬
which had a total of 323,549 rental sociated Press advices, paper and
units in 1940, will bring under wood matches, milking: ftiachines
rent control a total of 650 areas. an other dairy equipment, certain
It is likely that few additional lighting
fixtures, some lumber
areas will require controls because items, and innumerable industrial
today's list covers those in which products. At the same time as the
rent pressures have been mount- new list was announced notice
was served on local Price Boards,
ing since the war, OPA said.
"The
agency
explained
that 1,642 in number, to cease opera¬
many; of these areas have been tions on Nov. 4, and 10,000: OPA
watched since the end of the war field workers, or about one-third
in the hope that pressures and the of the remaining staff, were told
rising trend of rents would halt that their jobs would be discon¬
■
However, the housing shortage tinued in thirty days.

1938.

percentage replies* frOm banks in
all

in

vention

—

supply

advanced to the post of First

centrated in the larger cities, par¬

Saturday Closing

staff

Vice-President at the Boston con¬

ticularly 4h New York City; How¬

Association members ip New
York City that replied >to '^ther
questionnaire were unanimously
in
favor
of
Saturday
closing
throughout the year.
"The questionnaire elicited
many
comments from member
banks on the merit or lack of
merit
of
year-round
Saturday
closing.
Many banks that object¬
ed to Saturday closing explained
that they did so out of regard to

with

areas

vention in 1937 and he was elected

everj

to

taken

was

rental

known by the OPA that 88 rental

President of the A.B.A. at its con¬

Banks in N. Y. Favor

action

as

by an
estimated 600 by the end of the

years. lie had been President
the Savings Banks Association

■

a
deter¬
continued sur¬

pursue

of

IPA's

in

Bank

National

policy

expand

President

then

was

control until

throughout the nation has: been,
becoming more acute and an.in¬
creasing number of local organi¬
zations
and
officials have
peti¬
tioned the agency for rent control.
Moreover, some areas in today's
list are from a backlog of the in¬
terim period when controls were
suspended.
Increasing
employ¬
ment by local industries, the re¬

con¬

Administration

Price

would

veillance

savings bank activities for many

economies will per¬

ernmental
mit.

new

drawn

mined

■

It is anticipated

and

He
First

the

are

however, it became evi¬

that

officials

Mr* Benson, who was associated
balance the
with the Dime Savings Bank in
budget, establish a surplus each
Brooklyn, New York, since 1917,
year to apply on the national
was President of that institution
debt, and grant • as much relief
since 1932. He was one
of the
to a tax burdened nation as
outstanding leaders in
mutual
sound fiscal policies under gov¬

separate bill would be passed to

ual

dent

stitution.

"Our immediate goal will be

cut back excise taxes.
.

may

we

As far 6s rent controls

to cut expenditures,

income

individual

1947

1904-05.
of

balance.

cerned,

Oct. 29. Mr. Swinney

on

essential products and services still under
demand
have
attained

closer

A.B.A. President in the year

was

and "such aid
give" to agriculture.

of

City, and at the time of
Representative Knutson w e n t
his death was Chairman of the
into greater detail, according to
Executive Committee of that in¬
the Associated Press. He declared:

mittee, forecast on Nov. 6, ac¬
cording to Washington advices to
the Associated Press, that a 20%
in

loans- to

refunds,

tax

foreign nations,

who is expected to become Chair¬
man of the Ways and Means Com¬

cut

as

Cleveland

items being added to the list of those removed

and

Kansas

the national income."
the

Chairman of the A.B.A.
Policy Commission,
died suddenly of a heart attack in

P. Ayres,
Economic

000,000, and for Federal depart¬
ments $2,000,000,000.
The bal¬
ance
of the budget, he said,
would be
required for such

gress.

In

living past President of the Asso¬
ciation, "died in Kansas City on
Ocf. 24. Brigadier General Leonard

to¬

more

of War Mobilization and Reconversion not to order further decontrol

in the year

1938-39, died of a heart attack in
Brooklyn, New York, on Oct 16.
Edward F. Swinney, the oldest

and

more

from OPA jurisdiction, reports from Washington on Nov. 3 indicated
that Paul A. Porter, Price Administrator, has requested the. Office

,

Association

Bankers

follows:

sicians and Surgeons, that a Fed¬
eral budget of $25,000,000,000 to

tum,

its leaders during the

pared to the present $43,000,000,000. For the fiscal year beginning
next July 1, Senator Robert A. Taft (R.-Ohio), likely"successor to
Senator George (D.-Ga.) as Chairman of the Senate Finance Com¬
mittee, told a news conference on^
Senator Taft is reported to have
Nov. 7, according to Associated
Press advices from Chicago where itemized his proposed budget as
the American Association of Phy¬

While the price decontrol movement has daily gained momen¬

Organized banking lost three of
second half
of
October.. Philip A.
Benson,
President, of
the
A merle ah

the aim in view of a Federal budget of $25,000,000,000 a year com¬

2525

FINANCIAL CHRONICLE

THE COMMERCIAL &

Number 4542

Volume 164

he

The

joined

Company

as

Bulletin." He

Vice-President.; He

was

of the American

past President

Statistical Asso¬

ciation and Vice-President of the
American
and

was

Economics

Association

the author of a number of

books. Gen.

Ayres represented the

A.B.A.

many

on

-

occasions as;, a

witness before committees of
gress.

Con-

will be

a

Council containing rep¬

countries.
of these seats are assigned

resentatives
Five
for.

a

from

11

period of five years to China,

U.S.A. arid

France, Great Britain,
-CLS.S.R.

Others represented ini¬

tially on, the Council are Aus¬
tralia, Belgium, Brazil, India, Nor¬
way

and Switzerland.-

* Following; Ion g,
which 4 started : at;

;■

Czechoslovakia,
Italy,
India, Mexico, Netherlands, New
Zealand, .Norway, Palestine, Por
land, South Africa, Sweden, Swit¬
zerland, United Kingdom, United
States of America, Union of So^
Canada,

China,

Denmark, Finland, France,

discussions, j cialist

Soviet Republics,

preliminary fsl avia^®;

;:v t

2526

THE COMMERCIAL

net
appropriations - ;for
pensiohS; -7*
U

Sees No Eaily Change

The

In Dollai-Pound

Parity

pense,

to

be

determining

the

international

value of the pound.
"In

the

international

'

•

contemplating

\

.

change in

a

value

the

of

pound, Great Britain must con-,
sider the possible effect of such
action

"While

exceedingly careful in

the

it

no.

not

would

currencies

tied to the pound

are

While the sterling

sterling.

area

again become a loose organi¬
zation as it was prior to the insti¬
tution of foreign exchange control
following the. outbreak of the war
in 1939, it is obvious that any
change in the international value
of the pound sterling would have
may

to

be

made

members

to

As
ment

that

in

consultation

and

with
the
principal
of the sterling block.":-

agreement

■

.

.

,

international

the

invest¬

position, the bulletin states
Great

Britain

is

not

only a
large creditor nation but also a
large debtor.
Part of this debt
is expressed in U. S. dollars, in¬
cluding the .amounts drawn by

the

Until this

war.

that "partisan propaganda carried
bn at government expense through

the

postage* free print-;
ing and waste of public person¬
t

It

would

burden

because

of

the

reduce, however,
sterling debt,

the

lower

the/ interna¬

tional

exchange
value
of
the
pound,
the
higher
commodity
prices in Great Britain and the
the

smaller

quantity of goods" to
be exported in liquidation of these
obligations.
It
would
appear,
therefore,
that as an ^ external
debtor

in

pound sterling Great
Britain would benefit from low¬

ering; the international /value of
pound. On the other hand,

the

since most of the British invest¬
ments in other countries are ster¬

ling claims, it is to Great Britain's
interest
have

a

as

creditor

nation

to

high

international value
of its currency, for the higher the
value of the pound the more real
a

income

is derived
investments.

from

foreign

*

that the "defense"

.

•

"The

Anglo-American Agree¬
ratified July 15, 1946, has

ment,

laid the foundation for close

nomic
two

cooperation

nations.

that neither

steps

eco-.

between

It may

the

be assumed

country will take

any

regarding the international

value of
have

an

its currency which
may
adverse
effect
on
the

economy

of the other.

future,

change in the external

a

value of

one or

If in the

the other
currency

becomes necessary, it may be ex¬
pected that it will be made only
after,

negotiations
and
mutual
agreement.
/, Furthermore,
both
countries

are

ternational
therefore

members

Monetary

are

of the In¬

Fund

restricted

in

and
their

powers to alter the foreign ex¬
change value of their respective

currencies

beyond

the

specified
limit
without
approval
of
the
Fund.
In contrast, therefore, to

liberty

to' revalue

when

deemed

is

longer the

no

economic
been

its

case.

cooperation

established

close

that

has

between

the

United States and British
govern¬
ments precludes

definitely

lateral
in* the

action
main

by
real

either
of

uni¬

country

economics

and

finance that might
endanger
the interests of the other

country.




military

expenditures

took this

:

the

Congress

to work for "drastic economy and
maximum efficiency" in Federal

Government,

the

:

Commerce

the

State

of

Chamber,
of

of

;

New

tion-wide

campaign" to control
and reduce public * expenditures;
The program, which was drafted
by the Committee on Taxation of
which

Edmond

E.;

Lincoln

is

Chairman, attacked Government
waste1 and warned that our post¬

lowered unless Federal peacetime

spending
mum.

In

was reduced to

a

mini¬

forth

guide "reduction

principles

of

Federal

to
ex¬

penditures,
the
program: first
urged recognition of the fact that
"wasteful,
overcentralized
gov¬

Corporation, act¬
Chairman, taxes were dis¬

as

cussed

the

and

for

need

govern¬

>

E; :Hum^

phreys, Jr., Chairman of the Fi¬
nance
Committee, United States
Rubber Company, and of the tax
council

the

of

tion of

National

Associa¬

Manufacturers, laid before

the meeting proposals for reduced

possib 1 e in the com¬
ing year, Mr, Humphreys outo
lined a three-way program which
would include debt, retirement,
arid which he maintained could be
are

accomplished
wrould

if

the

-£'3

be necessary for

of •:

agents to tie up large amounts

warehouse space. WAA has set up

warehouse

holding

central

a

Akron in

at 7'

former Goodyear air-

a

y

craft

plant, and supplies will be shipped here from Government :
warehouses and sent to agents as 7

required.
,

menteconomies. :

."V-

,

Veterans

8.

from

the

may

agents

honored

Priorities will be

assets.

-

buy directly f
orfrom war'
y

at either

place and the price will 5
be the same.
:
: \
7; '
.

WAA said that its electronics in*

-

dustry-agents
are
expected
in"
Washington Oct. 23 to sign the

which have been $
by the Department of f
Justice, the General Accounting *
Office, WAA's General Review-.
Board, and an advisory committee
representing the industry.
contracts,

new

Reviewed

.

government

cut expenses. The reforms

Market Transactions in

Governments in

Sept.

;

-(1) -Reducing* indiyMuai-iricotoe
by 15% all along the line, I
During the month of Sept.^ :
and setting a top limit of 50% on
1946, market trafisactions Iti dU*
taxes on individual incomes;.(2)
i'ect and guaranteed securities of >
Reducing
combined the Government for Treasury in¬
corporate
taxes

normal

of

as

of governments
consistent with the

powers

speedily

as

national well being and the return

and

tax

to

surtax

32%;

vestment

and

other accounts

re-;

(3) Eliminating dottble taxa¬ Suited iri-net sales Of : $74^)53;450; ^
corporate earnings.
Secretary Snyder announced on;
Citing the current public debt Oct. 14.

tion

on

about 263' billion

at

States

credit

of

all

their

administrative

Constitutional

and

financial

sponsibilities and functions

re¬

were

also recommended,
The

dollars,

Mr;

Humphreys said bank holdings
constitute,an inflation threat and

by thO Federal Government to the

the

same

which

time

curtail

should

bank

to

expand. The manufacturer
called for a balanced budget, even
if it means drastic curtailment of

ness

pressed the belief that the Federal
Civilian personnel could .be re¬
duced

on

below

program

the

ex¬

level

1,600,000

Deering State V-P of

National insolvency, he warned.

v.:..':■;**.

...i

■...

■..

■

V;-

."11

•

The following tabulation shows *
Treasury's
transactions
in;
government securities for the last
the

two years:

busi¬

enable

Federal services. * Failure to bal¬
ance the budget and start paying
off the National 'debt will briftg

Chamber

1

Raymond

C.

Comptroller
Trust

Deering,

of

Deputy

Manufacturers

Company, N. Y„ has. been

appoirited State Vice-President of
the National Association of Bank
Auditors and Comptrollers for the
State of New York. Mr. Deering
is

a

President

past

York

the

of

New

City Bank Comptrollers and

Auditors'

Conference,

apast
Manage¬
ment Conference of the New. York
Clearing House, a member of the
Board of Governors of 'the New

Chairman

of

the Bank

Chapter, American Institute
Banking and a member of the

of

Committee
and

on

Research

State

Bank
of

Management

the

New

Bankers Association.

York
-

.

„>V

28,100,000 60ld

September
October

—

November

y 1945—
January

5.900,000 cold
12,000,000 sold

i

December

——

67,475.000 Sold.

—

—

WAA Announces Policy
-

The War Assets

Administrator,

June

56,414,050 sold

;

July

17,000,000 sold
'.y
:
150,000 sold
12,526.000 cold
300,000 purchased,

—iv-■'

August
September
Octooer

November

distributed through two

—

No sales or purchases
No sales or

December

purchases

y

1940

January

' '

700,000 sold
y
No sales or purchased
3,300,000 purchased
385,000 purchased

:.

March

April

-

May

-

June

.

69,800.000 sold

-

July

required to sign a statement cer¬
tifying that he will actively en¬
gage in such service.

September
——
74,053,450 sold
*j.ess than $50,000 sold,
r
-

further

announcement

by WAA Of the

try-agent

contracts

for

i57,800,000 sold

August

41,211,700 sold

_•—

'
"

,

was

indus

new

.•

.

business, and the buyer is to be

A

!y;|

$0,137,000 "Sold

■

February

given to non-priority buyers only
for distributive services to small

made

,

55,600,000 POld
34,400,000 sold

April

issued

are

r"

2,940,000 sold

Robert W. Littlejohn,

on Oct. 20
orders to regional offices
to offer surplus goods on two
levels of trade, if normally such

:

48,131,000 sold

February
March

levels of trade. Discounts will be

Nat'j Bank Auditors

:

1944—

May

goods

York

;

r

-setting

ing

Wartime

York at its

monthly meeting at 65
Liberty Street on Nov, 6 adopted
a
"program for action ia a na¬

American Lava

-v-;•••

It will not

7,

and

competition with private business;

new

dinner meeting

the

Chattanooga
Manufacturers Association,
with
its President, ,W. A. Jeffords, Vice
President,; and # Treasurer
of

A reexamination of the Whole
Social Security program,- the ter¬
mination of the emergency and

peacetime to operate government
corporations
and
industries
in

Drastic Economy
upon

program

recommended by the Byrd Com*
mittee, and in conclusion opposed
the use-of taxpayers money,k in

Congress Urged
ToWerkfor
Calling

Chamber

his government."

years.

New

-

the

injured directly or iridic
rectiy during 'the war should ex¬
pect ahy further payment from

demand for

a

of

.

position: "In addition to which He
proposed for the postwar
GI programs of education, vo¬
ttansition period were: v. -

bilitation into civilian life, no sol¬

of

British

annual

14

.

dier not

this demand will be stimu¬

There will also be

be

civilian

cational rehabilitation arid reha¬

the fact that exports from
Germany and Japan, two important

tively small iri the next few

ever

by

Regarding further payments to

our

lated by

Great Britain in
the world's markets will be tela-

than

scrutinized

veterans,

British machinery and .equipment,
chemicals and other products.
In

competitors

n6w more

authorities."

provide sufficient manpower
to-operate the various, industries.
In addition, there will also be a
substantial
foreign demand for

part

the

Oct.

both

all

-

to

Elk* Hills' Decisioh Delayed f
Consideration

surplus

House

the

by

electronics equipment. These pro¬

vide,: according to Washington ad¬
to the "Journal of Com¬

w

Naval Committee of a proposal by
the

vices

merce," for a flat commission of
from

10%'

to- 35%

amounts

Standard

Oil

of

Company

dalifotnia, that the contract gov-»-r
erning

withdrawal

oil

from

the,

Elk

actually sold. Replacing the cost-

Hills,
Calif., * reserve
be;
changed to require that the Navy

plus-a-fixed-fee,

pay

on

system

of

pay¬

ment,-the commission will cover
all of'the agent's sales costs from

two-thirds of the cost of keep-*
i'ng the oil reserve in readiness for;

the time material is received from

possihie emergency, " Was: post-;
poried until Ot least Nov. 18, ac-...

WAA until sales are completed.Not to include repair Or-conver *

cording

d

to

*

Washington

advices;

The"
(Associated Press) Sept. 0;
it. does cover ware
is one of our great do¬
BankersTrust Is Agent housing, advertising, inspection, views of independent petroleum
mestic problems" and then said:
packaging and mechandising. The
; Joseph
"Taxes should be
E^Hughes,; dhairman of same advices continued that the experts will be sOught. ; The as*,
regarded as
the Board of Trustees,
a
]NeW York new contract also provides • that: sertion by ;a Standard executive
necessary evil which at all times
should be kept ■ at* an irreducible State Bankers Retirement System,
i l; The ageiif will be required to that the provision irt the present
minimum;, based oh / the cohvic- announced on Nov.,6 that;,the l^eep a cphStanf inventory of ma¬ contract, forcing; the cpipprihy tn
Board's Executive Committee has
tion that any kind of
public waste
terial on hand.
pay
the : entire amount, aboutis a major crime
against every unanimously approved a resolu¬
2. Agents'wiil not be given ex
tion appointing the Bankers
$600,000 yearly, was "inequitable")
citizen.
Trust
elusive rights to any particular
Company .of New York .as agent
"In order to keep
commodities.: They wilj be re¬ was challenged by Representative.
government of
the Board of Trustees. The an¬
conservative in its
quired to take slow moving mer¬ Lyndon Johnson (D.-Tex.) who>,
expenditures, nouncement
:says:r;
/,
*
we should work for a
lower peace¬
chandise along With the fast.
said that "a pretty good vcontract"1*
time .ceiling on all income and ; "The agency agreement; effect¬
3.?A11 sales will be made at
sion' costs,

ernment

,

>

,

,

estate

taxes—in

ive

above

50%

Bankers

general' no tax
should be levied on

portion

any

of

an

individual

of

corporate income, or on any por¬
tion of

an

estate.

,/

"We should work

currency

The

budget for the

At

i

on

that

-

est

advantageous, this

fact

Want Balanced Budget

expenditures. Declaring that bud¬
get balance and tax reductions

activity in Great firitairi is bouhd
to be at:a. high level, and the
problem will be not to find em*
ployment for :people: but. rather

*

the situation which existed in the
past when each country, was at

the

we definitely favor
adequate defense, yet we believe

carefully

living

In conclusion the bulletin states:

to

provided for in the new contract
is subject to review after May 31* y

said:-: "While

should

economy would" be bogged
down and our standard of

Conclusion

...

attention

fiscal year 1947 is now 45% of the
total Federal budget, the program

accumulated

war

/

Calling

demand has been met, industrial

Canadian dol¬

the

of free

use

nel" should also be challenged,

products from the coun¬
Great Britain under": the Anglotries
endeavoring
to
liquidate
American Agreement, and part of
their frozen sterling balances. ' It
it is stated in Canadian dollars.
majr be stated, therefore,' that for
The bulk of the debt, however,
a
number of years there will beis in pound1 sterling. A decline in
rid danger of any prolonged de- *
the
international
value
of
the
Ipi^sioft -illGreiat Britsiiri; which
pound would increase the debt
would be the principal reason for;
burden as regarding payments of
'altering the international value ofprincipal and interest on the debt
the pofundstetling."
stated in U. S. and
lars.

clearly in the national inter¬

est" should be asked for. It urged

a

sterling area coun¬
little likelihood that such occasion
tries.
The pound sterling is the
will arise in the immediate futufe.
key
currency
of
the
sterling
For years to come British industry
block.
Any change in the value
will
be kept busy
meeting the
of the pound in terms of the dol¬
accumulated domestic demand for
lar, ' therefore,
will
affect
the
all kinds of commodities and re¬
economy not only of Great Britain
but also of the countries whose pairing the damages inflicted by
on

challenged and that "no local

Thursday, November

1947.:.!

- ex¬

individual expenditures by the
Federal Government which are

hesitate to negotiate
change in the international
value of the pound if such step
should seem necessary because of
declining business activity and in¬
creasing unemployment, there is
for

that

government

•

Chattanooga Mfrs.

>

or

be taken for
British Govern¬

may

granted that
ment

every

be

,

proposed new ex¬
grant-in-aid should

every

pense,

old-age

r

declared

program,

every :: current;

(Continued from page 2523)
has

& FINANCIAL CHRONICLE

everyone

government

acutely conscious
expenditures and

of government waste.

"We

should

work

peacetime ceiling
Government's

hope,

will

present

budget

000,000,000,

on

of

half

almost

including

a

Federal

which,

than

1,

provides

forth shall handle
routine

and

trustees

taxes

we

the

$43,and

-that

the

Trust Company hence¬

in

administrative

assist

the

System's

the: investment

Asider from

*

this,

the

of
or¬

ganization of the System is little
changed. Albert L. Muench, who

is

Secretary

State

of
Bankers

tinues

;

toward
our

budget

be less

_

funds.

fortjie broad¬

possible tax base, in order to

make
of

Get;

as

the

New .York

between the Bankers Trust Com¬
pany and the System's Board of
Trustees.
F. J. * Oehmichen, As¬
in

that

r

Secretary,
capacity.

will

continue

was

written' in 1944,

that apparf

eritly both the Navy and
Oil

took

a

business

Standard^

risk

in

ac*.

ceptirig the contract, but now the

that the agent may grant
to 30 days at his own
risk.
*: „•
iy-/:;•:
^
:, 4. The agent will be required to

original decision.

keep complete records of all sales

Press added:

except

credit

up

company * wants
cause

it -changed

be*

it doubts the wisdom of its

...

Association, con¬ in * accordancer with accounting
Secretary of the System, practices prescribed by WAA, and

and has been
appointed with pow¬
er to act as
administrative liaison

sistant

prices set by WAA and no reduc¬
tions: from these prices can be
made unless authorized by WAA,
All sales must be made for cash,

must

audit.
5.

submit his records to
-

..

;Vi"

.

*

WAA

able material. All unsalable items

will be disposed of at present lo.

.

:7yyV: '.I v-c
compensation

6. The amount of

"Proponents of Standard's pro¬

posal jsaid that eventually the cosf
will be the same to the* Govern¬

-

Agents will receive only sal¬

| cations.

The Associated

ment, regardless of which plan

followed,

because

the

is.

contract

specifies that the upkeep costs are
on withdrawals."
v'•

based

[Volume 164

count

Steel Production Again Increased —- Shift
i

in

Price increases mgde effective

early this week iri the metal work¬

(Nov. 14), further goes*'
zind advanced from 8.69

cents per

industry

lead¬

no

But

' '

;

limited

have

ducers

pound to 10.94 cents* One Of the'
ing steel producer this week made, largest increases iri* the rionfer~j
any Changes whatsoever
in the rous field occurred fearly this.
prices of steel products.
Nor is Week when the sole producers of
domestic antimony raised its pride
any general across-the-board ad-;
14 Vi
cents per pound at
vance
looked for at least until from
"In the steel

„

of such

the

Mr*

Washington Ahead of the News

i

|'SStiI XCdritinued from first page)

amount;

Fulbright had been

Scholar* and

Rhbades

"Sbme hot-finished carbon bar

which in turn would create a buyers,
according to
in its issue

to say:

on

'»•':

a Reactionaries. They have weighed
there¬ carefully all the benefits bestowed
fore intellectually above the men upon them by the New Deal. And
sellers, are booked up for the first
usually elected to the Senate. He they came to the conclusion that
quarter with. quotas' confined to
had the global view.
We were the New Deal was a great thing
their regular customers* ; To dis¬
the
labor
leaders but not
told that had he not been elected for
tribute small carbon bars,, which;
to the Senate with a campaign ex¬ necessarily for them, particularly
are in particularly strong demand, 1
penditure unheard of in the State when it-got to the point of their
Us equitably as possible most pro¬
forever
called
out < on
6f "Arkansas,* he'would undoubted¬ being

hand.

resistance strong enough to start; a business recession,
''The Iron Age,", national meialWorkiftg paper, which,
Of today

From

January is. virtually at

time for

ing industry* following the eliminatioii of OP A price controls^ re¬
flected the sober thoughts of management now confronted with the

possibility of runaway markets

of new rated

in the way

on

work, have, set up quotas for the
first quarter, although the lead

Political Power to Hasten End of Controls

.

2527

the Commercial & financial chronicle

Number 4542 4

.

was

ly have been made the
of Columbia^University,

tonnage to a .small .por¬

President

•

their strike was

strikes and when

settled, their being thrown out of tion of the quotas. For instance,'
because of a strike in
a
It may be that in this latter ca¬ work
one large mill has restricted small
pacity he would have been better supplier plant, or because of some
sized bars to 20% of the full allot¬
fitted to serve his fellow man, for picket line which had been thrown ment.
-v,-r
-,s •-»
which
he
had- .been
so
highly up by another group.
44 "In some instances, where con¬
It is this writer's conviction,
trained through the beneficence of
Philip Murray's United Steel-i Laredo, Texas, to 23 lk cents per; sumers have been hard hit by the the famous English imperialist. as Mr. Dooley once said, that
pound; iThe Office" of Metals
termination of war work and are
the Supreme Court follows the
yvorkers • Union makes known' its
Because
in the; Senate he has
serve was expected to advance the not
operating at as high a rate as made no contribution whatsoever election returns; so do the mayors •
\vage demands; On the other hand*
at least drie leading steel produ<M price of pig tin to 69 V2 cents or; prior to the war, such as .ship¬
and sheriffs and governors — the
except , when , the other day he
70 cents per pound front a former;
or may within the next few. weeks
yards, bar quotas may prove more Came up with the idea that Mr. local authorities generally — and £
domestic ceiling of 52 cents peri thari
M more make a pficC adjustmenti
ampler with: .the possibility Truman 4 should name - U; Repub¬ that there will be from now on, a
| that Some of this tonnage can later'
for those steel products on which pourid.
lican a.s Secretary ,of State and determination on the part of these
"The removal of controls will; be, diverted* However, such in-; then
it claims a loss or a low return, J
resign "so this Republican authorities : to/-enforce order on
"This
steel
company,
along have; no drastic effect ori the; stances are expected to be rela-i Would succeed to the Presidency. picket lines. When this is done,
:

.

#

-

,

,

'

machine tool industry or

^th others, had been negotiating
AVith OPA for severah rnohths preP

machine, tively few."

tool prides as the industry shifts
into an era of competition

back

Vious to the elimination of price
for
an
adjustment on

Few!

in

a virtually free economy.
across-the-rboard • increases

controls

products which were showing lxt4
tie or no profit.
Because steel
companies
normally
announce)
Steel prices on a quarterly basis a
few weeks or a month before; th^
beginning of a quarter, it is ex¬
pected that, an announcement on

looked for in this major
The

this

Institute
that

had

week

Sept Lbans iri Chicago

or

Steel!

announced

telegraphic reports which it
received indicated that the

"Steelmakers

faced

with

capacity for the week beginning
Nov. 11 (a new high level since
June, 1945), compared with 91.1%
one week ago, 90.5 %
one month

shortly thereafter!
already
costs this

were

increased

week when the price of iron and

Steel scrap reacted to the elimina4
tion of controls by moving up¬
ward. Iri some major centers the
net

increase

in

important

open-

hearth grades of scrap advanced

§3.50 a ton, but because of the
tight situation most orders being
placed

This

jpany.

contrasted

com*

to

some

normal markets where the broker

sells at

price

a

a

specific tonnage

-

and then attempts to cover on the

sale by picking up the
from dealers.
"For

the

material

several

past

sin savings,

building and loan as-j

sociations in September meant a
net income of. $1,490,932.

iri loans

outstanding, as compared with a
net decrease; of
^ame

and

terpreted by

manyhfficirils in the

metalworking industry

as

month

$2,522,326 for the
year ago,", said a

a

business,

Pr^tiseai

;
-

President Tru¬

A statement by

man

on*

of,National

the occasion

prices (being; paid today" fore the end of 1946 in view of thd
premium grade scrap will of possible corisoUdatidir of agOnciel
necessity because of the shortage and imposition of restrictions ori
cdUse the same No. 1 and No. % their powers. However, in the ab¬
heavy melting to be applied ori sence, of any definite statement of

Newspaper

policy by the idniiMstrhtion steej
producers are inclined to discount
possibility
of
sweeping
early this week was more thai the
§2.50 a ton* the actual increase in changes in steel controls until at

the problems' of peace. Published
in "Editor' ahd Publisher*'' the

orders.

Thus

while

the

statistical increase in scrap prices

the' convening 'of

the price to steel companies from

least

what

the

Congress.

ago

they

paying

were

amounted

to

an

week

a

average

of

§2.50.
"Whether

prices

the

current

market

steel scrap will remain

new

demand;!?
being dominated by two conflictf
ing forces: Disposition to. mark
"Meanwhile,- steel

the

in effect the balance of this Week

pending
better balance of consumer invent

Is

problematical.
While
some
scrap is coming out at the new
quotations,
dealers, are
in
no
hurry to fill the orders. It may be

tories;

St least

Steel industries.

on

.a

week

or

Deadline for Data

two before the

time

on

hand,

one

disposition on the other
hand to lay in- as much steel as
possible because of the beclouded
labor outlook in both the coal and
a

Still higher wage

Oct. 1 to 8,
praised the press again for its part
in aiding the nation's war effort,
arid expressed confidence that it
would share the work in solving
Week,

the

The

Netherlands

Embassy1 in

•

Washington, D. C*, announced oni;
Oct.

15

that owners

bf specified

securities
until Dec. 1* 1946,
in: whiclf; to declare -them: under;
penalty of such, securities becoming void. This is an extension of
the previous deadline of Oct. 15,
1946, for such declarations.
The

classes

Netherlands

of

have been given

Cleveland Federal Reserve

noting this, said:
"Owners

of

Bank*

-

these

Netherlands

■

obtain forriis and
instructions for their declarations %
from
the
Netherlands
Consul,?
securities

may

sort

be

detrimental

and the Congress, con¬

stalemate We are iri.

of

positive action on the part
of Congress is needed." That is tajt
revision
and the end of thO
Some

President's message read, accord¬

seizure powers

President's

ing to the NeW York "Times" on
Sept. 28:
"It is a pleasure to me again to
salute th'd press "of the United
States on the occasion of National

Newspaper; Week* The

on

Netherlands Securities

t$ Henry A. Nelson, 2036 East 22nd;!
Street, Cleveland,. Ohio, or from
counselor of thq;
trolled by conservatives of both the financial
Democratic arid Republican par^ Netherlands ?Embassy at 25 Broad-* :
ties, refused to pass that legislaf way, New York 4, N. Y.
tion. That is the situation now,
"The Netherlands' action is part
except that Mr. Truman won't of that govefnmerit's program ?for ;
even
make an attempt to have, recovery of property directly orr
such legislation passed.
That is indirectly looted by the enemy,
would

which

1945.

son4 the

current

with this silly idea.

many years,

hasteiri

other similar grades have found ing the end of Wartime*'economic
their way ;intq.^ldssificatioh9lt:ar|':: regulations.
"Various changes may come bef
rying a higher price. For this rea*
:

Fed->

report issued on. Oct. 14 by the
It was not wholly inane.
In¬
bank. This change in the demand
stead, it fitted right in With the
for the bank's funds to supple-*
purpose of those who are trying
ment local home lending resources
to create confusion by spreading
ago and 80.4% one year ago. This
was reported to the Federal Home
the word that we are now in an
represents
an
increase of 0,1 Loan
Bank
Administration at awful
fix, because we have a leg¬
point or 0.1% from the preceding
Washington on Oct. 14 by A. H; islative branch controlled by a
week. The Operating rate for the
Gardner, President; He said that
political party in opposition to the
week begiririing Nov. 11 is eqiiiva-*
September was the regional bank'$ President. We are, therefore, in a
lent ;to 1,607,300 tons of steel in-f
second biisie&t month in 1946 ahd
stalemate.
'
gots alia castings, compared, td that it saw' more advances made
For the country's business and
1,605,500 tons ope week ago, 1,4 than
any
September, in three
iridustry, we can imagine no bet¬
595,000 toris one month ago, and
years; A further contrast between
ter condition for the country to be
1,472,600 tons one year ago.
the demands for the home loaii
"Steel" of Cleveland, in its sum¬
bank's facilities a year ago and in, though it, is really not much
different than
the position wC
mary of latest news developments now lies in the fact that 195. dif?
have been in since the great PD's
in the metal working industry, ori ferentrsavihgs and loan -associaf
death. In* that period Mr. Trumaij
Nov. 11* stated in part: "Shift iri
fiohs are now using ; a portion of
Has sought, or has gone through
Congressional control in January their credit lines*- as against only
the motions of seeking, legislation
128 at the "close of September,
as a result of the elections is iri-*

mohths

steel

"The $3*917,892 which the

eral Home Loan Bank, of Chicago
advanced to Illinois and Wiscon-j

.

basis—as
the broker obtained the materia^
were on an open

he delivered it to the steel

;

Home Loan Bank Up

operating rate of steel companies
higher prices for some steel prod¬ having 94% of the steel capacityucts will he mddearound the first of the industry will be 91.2% of
bf December

could accomplish most of our strikes will be of
form of short duration. • In the Allis- ;
government, Mr. Fulbright hav¬ Chalmers - strike • at West Allis, ;
ing studied over there and being Wis., today, boria fide employees
versed in this form of govern¬ are tirying their best to-return to
work agairist the mass picket lines
ment, and the American people
having gotten along
for more of- Commies which the local au-»
than 160 years without this form thoilties have contended they are ;
pdwerles^ to deal with; They are y;
of government.
It
should
be
of interest to likely now t(f find they can deal;
scholars arid advocates of higher with them,/ the people,; including «
workers, having said they
educators that this highly edu¬ the
, ■
»
;,
cated individual came up* after so want them dealt with*

Iri this way we

the British parliamentary

industry.'1)
and

Iron

American

are

- ;

the

these

conviction

will

little br

It is this
that both of

emergency..

.war

writers

mndej:

bo

no

accomplished with

opposition from the

the

for

to

restoration

its

of

such

rightful • owners,-

The action also is for the purpose 4

enemy-owned property,
vested
State of the Netherlands^"

of tracing

title to*which has become
iri the

Drew

Dudley Director

Of Public Information of

President.

newspaper^

and

property

r
J

There
is
the
question
of International Bank
any • labor
legislation,
job during; the? wart They- threw whether
Eugene Meyer, President of the
their full support behind the cam¬ will be enacted. The Republicans
International Bank for
Kecon~
paign
to ;f salvage .' and- i collect most, assuredly will not go in for
needed war materials. They were, any labor baiting; But if the labor struction and Development, an¬
begin acting up' again,; nounced on Nov. 5 the appoint¬
in the forefront of every drive for leaders
the sale, of war stamps and bonds. there wili most assuredly be some
ment of Drew Dudley as Director
"They* reported the war admir¬ so-called.:, anti-labor ; legislation,
of Public Inforrriatidn.
Mr. Dud¬
ably,- operating under a voluntary against wbich Mr. Truman again
code of censorship.: They strength^ would register only feeble opposi¬ ley,
who was graduated from
•!
ened- the spirit of the people at tion.
Dartmouth College in 1933 with s
of the

nation

did: a' magnificent

•.

.

entire

list is clarified- and

scrap

before normal

relationships exist¬

ing

various

between

scrap

in

prewar

grades
periods are

of
re¬

established.

upward this week : with copper
being advanced
3Vs cents per

pound, by two, major producers, to
cents

possibly work stopf
pages of a devastating character
are in prospect.
"On

will

"The nonferrous market moved

17%

demands and

pound, delivered,
Other pro¬
expected to meet this
per

Nov. 8 deadline
for the filing of first quarter priK
ority assistance by those engaged
in
essential housing
work Was
established by the Civilian Pro¬
duction

ducers

ers

are

higher prices in the immediate fu-:

priorities

effect -after the

turn of the year, a

Connecticut. Valley.

price. This initial raise, accord¬
ing to authorities, by no means
disposes of the possibility of still

that

the," basis

continue in

Administration.

Produc¬

home and the morale of our

ing.
of

What is more :of

fight¬

forces abroad. Iri the words;
your

"voice

slogan,

our

now

rests, a trer-

mendous share of the

responsibil¬

Upon it

ri likelihood is

labor leaders, themselves

degree of A.B„ recently

resigned

learned; a lesson from the as Chief of the Media Program¬
etectiohs."
It must be clear ; ta ming Division of the Office of
everybody that it was not the- War Mobilization arid ReconyerEconomic^ Reyaiirts xybo wrought
sion where he acted as liaison be¬
Nov. 5's result.
There Ure not
enough" of them.
The way in tween the United States Govern-,

have

press is the

4pf-freeaom^r-guardia

liberty.'

that the

ity for solving the problems, of
pCace. I know Well, that this re¬

which the

Republicans swept in-

ment and the advertising indus¬
turntry. During the early days of the
that the
heretofore, the emphasis con¬
Christensen Resigns
war, Mr.
Dudley was with the
tinues on sheets, especially gal.WOikbrs; themselveg' Were fed;Up;
Their leaders were repudiated in Office of War Information and
vahized sheets.
Some producers, From SEC
who have hot even opened them
John W.r Christensen hks re¬ their efforts to get them to vote subsequently in the Office of the
They must be Secretary of
book§; for first quarter, are cov¬ signed as special counsel in the the party line.
{he Navy serving
ered Ion galvanized sheets on the Public Utilities; Division - of the, aware of this. They must realize
with the rank of Lieutenant Com¬
basis of anticipated arrearages at
Securities and. Exchange Commis¬ that they have a revolution in

already

rated orders

.receiving some
for that period. As

are

sponsibility will be. met iri full."

'

durtrialfceritersywR^
outs

of

voters,

means

"

ture.
•

"A

week

,

major

'

•

-

producer

advanced

early

this

the

price of lead
2% Cents per pound to ;a quota¬
tion of 10 V2 cents per pound at
New York.
Other producers are

-

the

end

of

this

year.

On

un~

expected to meet this competitive

coated sheets, arrearages probably
will average eight to ten weeks!

position.

production. Certain sheet produc¬

\

"At New York early

this week

C44:;v414,4.4;;.4




■f

•

<

?4?!?44i

ers,

nbt

yet

knowing; what

to

Prior to the war he was
their ranks and in the future will mander.
private law firm.
conduct themselves accordingly. •
the Consumer Sales Director of
Of: Milton : H.
There is nothing hard to believe
Cohen from - the same Division
the
William Wrigley ;; Jr. Com¬
was
indicated in our issue of about such an attitude of the
Workers; They are hot Tories arid pany, Chicago, 111.
Ndv. {7, PUge 2361.J

sion,' to join

a

The 5; resignation

2528

tTHE COMMERCIAL & FINANCIAL CHRONICLE

The Slate of Trade
(Continued from page 2523)
with

91.1%
month

one

year

the

ago

of 0.1

previous

This

and

90.5%

ago,

80.4%

one

This

ago.

crease

week

one

represents an in¬
point or 0.1% from
week.

week's

equivalent

to

•

■

operating rate is
1,607,300 tons of

steel

ingots and castings and com¬
pares with 1,605,500 tons one week
ago, 1,595,000 tons one month ago
and 1,472,600 tons one year ago.
Electric Production

—

The Edi¬

Electric'Institute reports that

son

the output of electricity increased
to

4,628,353,000 kwh. in the week
ended Nov. 2,
1946, from 4,601,767,000 kwh.
in
the
preceding
week. Output for the week ended
Nov. 2,
1946, was 18.7% above
that for the corresponding weekly

period

one

year ago.

Consolidated Edison Co. of New

v

York

reports

system

output

Nov.

3, 1946, compared with
176,400,000 kwh. for the corre¬
sponding week of 1945, or an in¬

crease

of 16.8%. Local distribution

of

electricity amounted to 191,500,000 kwh. compared with 175,800,000 kwh. for the correspond¬
ing r week of last year, an in¬
crease of 8.9%.
,

income for September

.'*Railroad

||illl

staple print cloths and sales

1 -,
Boston wool

The

peared to be in

1

'

,

and for brought demands for hourly rate
increases
to
maintain
weekly
Here in New York City the past
earnings.
Labor unions led the

ap¬

waiting attitude

a

increased

the year to

,

market

by

20%

date by 29%.

week retail trade's reaction to the

fight,

z,

was

tie-ups

ceding week and 97.5% in the like 14, when
price
increases went
1945 week, according to the Amer¬
into effect. However, a moderate
ican Paper & Pulp Association.
volume
of
trading in domestic
Paperboard output for the current wools was noted.
Sizable weights
week was 100% against 101% in
of fine territory wools were sold
the preceding week, and 97% in
to topmakers and manufacturers
the cor re sp on ding- week a on
the basis of prices for CCC
year ago.
wools, effective Oct. 14. Sales of
Wholesale Food Price Index De¬ wool
by the CCC continued in
cline, First in 9 Weeks—Mark¬ good volume. A total of
5,530,631
ing the first substantial decline pounds of domestic wools were
since the rollback of food prices
appraised for purchase of the CCC
at
the end of last August, the
during the week ending Oct. 25.
wholesale food price index, com¬ This
brings the total of 1946 wools
piled by Dun & Bradstreet, Inc., appraised to that date to
256,105,dropped to $6.14 on Nov. 5, from 145 pounds, as against
280,911,865
$6.34 (revised) on Oct. 29, a loss pounds appraised to the same date
of 20 cents, or 3,2%. The current last
year.
figure compares with $4.14 on the
Retail and Wholesale Trade—

provement.

18%
store

of

a

year

ago, an

increase

A

of

wave

most of the

cool

but

have

of

one

in

of

im¬ result,

a reduction of
10.5%
hours worked in mid-1946 was

about

est

railroads

of the

United

been

volume

greater had

"While the earnings parallel
it between 1946 and 1919
is close,
other important economic factors

found to be considerably
dif-?
Peacetime productive ca¬
buyers pacity, for
example* now far ex¬
ih the week to attend the spring
ceeds
1919
capacity.
Current
the

turnover

chandise.

of

The

seasonal

arrival

are

mer¬

ferent.

of

apparel openings were numerous.
Favorable reports were received

liquid funds

are

than

from wholesale grocers of contin¬
ued high food sales in most

times

The

however,

some consumer

sistance/was
recorded

noted.

that

retailers

purchased

wear

It

of

Bank's

serve

index,

Controls

in

000- compared

with

$8,848,870

in

September, 1945, according to the
Association of American Rail¬
roads. In the first nine months of

1946; estimated net income,'after
interest and rentals amounted to

$96,500,000 compared with $451,565,025 in the! corresponding; pe¬
riod of 1945.

in
had

September, 1946, the carriers
a

net

railway operating in¬
come, ' before interest and
rentals,
of $67,362,490
compared with $43,133,855 in September, 1945. For
the first nine months of

thi^

year

net

railway operating income, be¬
interest and rentals, totaled
as against $778,146,722 in the same period of 1945.
fore

$365,611,041

Taxes and net earnings for the
month of September and for the
first nine months of 1946 are after

last week,

range

re¬

mid-week low of 230.41. The

on

level

the

compared with

same

date

a

cur¬

$6,640,000, and for the first
months

of

1946

<

they

tiful and

Deupree,

and

Navy Munitions Board, has

had

final authority over Army
Navy buying since Oct, 15,

and

it was revealed on Oct. 24 by Mr.
Deupree in Cincinnati, according
to Washington advices from the
Associated
official
an

Executive

Truman

Mr.

Deupree's

conferred

was

in

Order of President"

which

the

Chairman

Board

to date in¬

Press.

status

Munitions/

made

public,

without comment.

30%.

Although there

Mit1946'Real'Wages

canned

The

year ago.

consumer

was

the

on

official

no

announcement

from the White House

or

the War

and Navy

active

demand from

mills.

try movement of wheat

light

Coun¬

of

was very

and Gulf

ports. Corn futures

were

generally lower; influenced by the
$60,326,000. Net rail¬
operating income for Sep¬ sharp drop in cash corn, especially
the new crop, which developed
tember
and
the
nine
months
way

-

would

cording to a study of the wagecost-price dilemma issued on Nov.
interest: in 6 by the National Industrial Con¬

cool

ing of

weather

dresses, lingerie and piany main
floor items were eagerly sought.

This

government.

lowing to

situation

existed, accord¬

certain industries since the end of
the war
In mid-1946, the aver¬
age /manufacturing
in

purchasing

mand

than

worker

more per

had
week

at his

com¬

power

in

to cover all the materials which
use.

Executive

The

leased

by

Mr.

Order,

as

Deunree,

re¬

stated

that he "is specifically charged. L
/• with the resnonsibility for mak- /
,

ing

decision

final

in

matters;

pertaining to the allocation of
joint procurement responsibil—/
ity
between
the Army and

while the amount for the soft coal

season.

say:

both services

Interest in furniture and
during the
miners nearly doubled during the
Country offerings of corn bedding remained at a very high
Same
period.
Wage
increases
were
affected
made. ;W
by
unfavorable level. Housewares continued to
weather
and
the lower market be high among the list of best granted in other non-manufactur¬
In the 12 months ended
Sept.
sellers in the durable goods line ing industries were somewhat less
30, 1946, the rate of return on values.
Trading in oats was quite active with the supply of aluminumware spectacular. The Board also says:
property investment a V e raged
1.59% compared with a rate of and prices finished higher after adequate.
Earnings After World Wars I & II
Retail volume for the
:howing early weakness. Flour
return of 3.73% for the 12 months
country
"Wage-earner income and the
business was spotty with moderate last week was estimated to be
ended Sept. 30, 1945.
volume of sales reported to large from 22 to 26% above that of the cost-of-living index pursued the
Total operating revenues in the
same general trends in the first
bakers,
chiefly
for
immediate corresponding week a year ago.
first nine months of 1946 totaled
peacetime years after both World
shipment.
Hog
prices
held up Regional estimates exceeded those
Wars. The factors underlying the
$5,621,973,863 compared with $6,fairly well despite more liberal of a year ago by the following
926,755,435 in the same period of
behavior of earnings and living
receipts, but cattle and lamb quo¬ percentages: New England 21 to
1945, or a decrease of 18.8%. Op¬
costs were often quite different,
tations
trended
steadily down¬ 25, East 22 to 26, Middle West 18
erating expenses in the first nine
but the results were generally the
ward./Offerings of lard were to 22, Northwest 24 to 28, South
months of 1946, amounted to
same during the two periods.
In
$4,- larger and a
slightly easier un¬ 26 to 30, Southwest 23 to 27 and
713,217,845 compared With • $4,both cases; however, actual week¬
dertone appeared at the close of Pacific Coast 20 to 24.
911,444,741 in the corresponding the
ly
earnings
in
manufacturing
period as a result of consumer
Increased selectivity, resistance
period of 1945, or a decrease of
were relatively stabilized, the cost
resistance to high prices.
toward the price of some commod¬
of living went up, and the real
>/%. Fifty-four class 1 railroads
Wide and irregular/fluctuations ities,
future
uncertainties
and take-home of
failed to earn interest and rentals
factory workers de¬
marked the course of cotton
in
prices some Election Day closings were clined somewhat from: wartime
the^ first nine months of 1946,
of which 24 were in the Eastern during the past week. The low frequently reported as the reas¬
peaks.
District, 11 in the Southern Re¬ point was reached on Tuesday of ons for a slight decline in whole¬
"Increases in basic wage rates
me
past week when the New sale volume during the week. New
gion and 19 in the Western Dis¬
weye the chief causes of the dou¬
York spot quotation dropped to order volume remained
trict.
very high bling of weekly earnings between
29.80 cents per pound. This re¬ despite the small
weekly decline 1914 and October, 1918.
Railroad Freight Loadings—Car
During
sulted in the closing of
and total volume was well above
leading
World War I, actual hours of work
loadings of revenue freight, for cotton
exchanges on the follow¬ that of the corresponding week a declined.
the week ended Nov.
In contrast,
the 90%
2, 1946, to¬ ing
day, Wednesday, for the third year ago. Deliveries continued -to rise in
taled 922,312 cars, the Association
weekly earnings during
time in the past two weeks. On improve generally.
World War II was largely the re¬
of American Railroads announced
subsequent days, however, trade
./ Department store sales on a sult of increases in premium pay¬
This
was
a
decrease of 19,945
and mill support lifted
pricey ap¬ country wide
cars (or
2.1%) below the preced¬
basis, as taken from ments for. overtime, a longer work
preciably and closing quotations
week, and a shift to higher-paid
ing week and
70,350
cars,
or were
slightly higher than a week the Federal Reserve Board's in¬ munitions and durable goods in¬
8.3%
above
the
corresponding ago. Transactions in standard
dex for the week ended Nov.
2, dustries.
gray
The increase < in
basic
week for 1945.
Compared with the carded cotton
goods
reached
a
1940, increased by 17% above the wage rates was no more than 35%.
similar period of 1944. an
increase moderate volume last
week but a
of 29,243
"Following World War II, cut¬
same
period of last year. This
cars, or 3.3%, is shown.

considerable weakness

sav¬

tablished by the War and Navy!!
Departments in 1922, and was;
made directly responsible to the
President in 1939. Originally it'
was charged with harmonizing
Army and Navy procurement
of war materials only, but its;
scope now has been broadened

.

approximately $8

a

mean

and personnel to the
In its advices the

The Munitions Board was es¬

ing to the Board's study, despite
loss of real ,net spendable
earnings
-''taker homa'^ jpay/ih
the

undoubtedly

money

Associated Press also had the fol¬

ference Board.

1939, and could
wear
thereby raise
his
standard
of
con¬
living by more than a third.
tinued to attract a large share of
Coal' miners,
the Conference
the consumer attention.
Board
points out,
made even
The sharp increase in the num¬ greater gains than did manufac¬
ber of requests for small gift items turing workers. In June, 1946, the
in the week was indicative Of the real weekly take-home for anthra¬
start of the Christmas shopping cite miners was 65.6% above 1939,

shipments continued re¬
The demand for children's
stricted by a shortage of box cars.
was up the
past week. Shoes
as

Higher TlaaBeforeWar

demand for

war, ac¬

tomatoes.

arrival

were

stimulated consumer
Trade volume in leading grain
heavy outerwear and suits, There
markets was slightly less than in
was a slight increase in the
sup¬
recent weeks as prices continued
ply of men's overcoats with se¬
to move irregularly. Wheat futures
lections of suits limited. The de¬
were rather unsettled but the cash
mand; for/ women's apparel
market held firm. Strength in the
high and the number of requests
leading cereal reflected continued for
coats rose sharply kfter the
purchasing by the Government to lull
induced by warm weather in
fill export requirements and an
the
previous week. Sportswear^

amounted to

would -have been
reduced, had
tthe carry-back credits not been

ID

Executive Chairman of the Army

comment

plen¬

was

price declines

some

noted. The

179.83

faking credit in the accounts for
carry-back tax credits. For the Exports of; wheal, showed some
month
of
August, such credits improvement following settlement
of the maritime strike at Atlantic
were

eight

almost all types of food

creased

year

end

Departments, it was re¬
ported that Army officials had
said privately that the action was
canned foods was moderate. Some
Wage earners, almost without a "step in the right direction"
4, slightly lower than a week resistance was
reported to the exception, could
earlier when it stood at 235.56*
purchase more in toward unification of the armed
current price of certain commodi¬
terms of goods and
services in services, and added that the move
out up about 4 points over the
ties such as lard, canned fish and
mid-1946 than before the

electing the swift progress of the
Government's decontrol program;
The index closed at 234.25 on Nov.

rent

-

wide

:airly

but for the

1919.

Army-Navy Buy's

A civilian, Richard R.

department

barley, hams, bellies, lard, during the past
week, according period last year. This compared
butter, cheese, coffee, eggs, pota¬ to Dun &
Bradstreet, Inc., in its with an increase of 3% in the pre¬
toes,: steers, hogs, sheep and lambs. weekly survey of trade. Dollar ceding week. Work stoppages in
The index represents the sum total
volume was estimated to be con¬ the trucking industry accounted
of the price per pound of 31 foods
siderably above that of the corre¬ for the reduced sales for the week
in general Use.
sponding week a year ago. The in the cities of New York and
For
the
four
weeks
supply of many gopds continued Newark.
Daily Wholesale Commodity
to increase
steadily and the trend ended Nov. 2, 1946, sales declined
Price Index
1%

more

of

Munitions Board Head

all

in corn,

more

those

government debt at the

men's

practically

According to the Federal Re¬

weather through

estimated at

also

was

available spring merchandise.

country and the brisk

three

lines, of World War II is almost
price re¬ times that of World War I."

Advances for the week included
buying that occurred on Election store sales in New York City for
wheat, oats, cottonseed, oij, cocoa, Day were important factors
in the the weekly period to Nov. 2,1946,
beans and peas. Declines occurred
increase in total retail volume decreased 7%
below
the
same

toward

iri

ac¬

department companied by a decline of only
were 2.3% in take-home
pay.

the

not been for the continued warm
weather which affected adversely

selectivity among
The daily wholesale commodity
September, 1946, had
shoppers was very noticeable.
estimated income,; after inter¬ price index, compiled by Dun &
/ Retail
food
volume
was
up
and rentals of about $38,500,- Bradstreet,
Inc., moved over a slightly last week. The
supply of

States
an

1

the

merchants

opinionr that

would

.

like date

sales

the

was

An increase
noted

was

•

—Class

and

government was
107.2% of mill ca- during the past week following
ending of the trucking and United quick to support the idea. As a
pacity, against 106.8% in the pre- the heavy buying preceding Oct. Parcel

*nov.

of of 48.3%.

206,000,000 kwh. in the week endend

centered in

sheetings..

Thursday, November 14, 1946

..

,

week.

Navy."
"This includes the

:.

assignment.

of the procurement of any item/
to either department or to a'*

the order said.4

joint agency,"

also includes the power of /
final decision in the event ofs
"It

depart¬
determi-/*
nations made by him. Such de- *
cisions will be binding on • both 5
departments."
the

between

disputes

ments arising from the

th e
Munitions
proposals were subject
fo veto by either service.
'
The Board members, in addirtion to Mr. Deupree, are Kenneth C. Royall, Undersecretary f;
of War, and W. John Kenney,I
Assistant Secretary of the Navy. J
Previously

Board's
■

,

.

"*■".

Dinner Dance

—

or

City Bank Club
Fifteen

hundred

members

of

City Bank Club, employees social

?

?

organization of The National City >
Bank of New York and City Bank

-

Farmers Trust Company,

,

a

at the Hotel

dinner dance

i

attended
St. *

cele- j
election of s-

George, Brooklyn, on Nov. 8
brating

the

annual

Club Officers. A

officials

was

new

slate of eight

chosen to administer >

'

renewed

Paper and Paperboard Produc¬
tion
Paper production in the
—

United States for the week




mills

lull

are

is

said

expected
to

be

through February of
ended' Activity during the

most

as

sold

next

week

up

year.
was

compared with
in

four

the

an

increase of 23%

backs

of two

to

six

hours

in

Club affairs in

1947. The Club is

the

among the country's oldest in the
work week, with the ac¬
companying elimination of pre¬ banking field and was established

average

preceding

week.

For

the

1

weeks

ended

Nov.

2,

1946,

mium

payments

for

overtime,

in

1004

.,L

~

-

-

Number 4542

Volume 164

THE COMMERCIAL

FINANCIAL CHRONICLE
&
conditions essential to the

nomic

maintenance of world peace,

Our Aim—Economic Progress Abroad and at Home
(Continued from page 2522)
And

must

we

exert

to

continue

pleasure to
preside, as Chairman, at the an¬
nual meeting of the Boards of
of

Governors

International

the

powerful nation will let its
for world leadership

Bank for Reconstruction and De¬

velopment and of the
tional Monetary Fund.

Interna¬

Impatience for getting
the job has

But we should never have any
illusions about the extent of time
and

distinct functions, but both have

we

effort

We

the

objective of

common

anced world
'

bal¬

a

immediate function of

the

supplying

capital for the

struction of

the

and

war-devastated

areas*

enduring function
of stimulating the flow of inter¬
national capital for development
purposes.
my

with

to

necessary

must

display

the

cure

war-wrecked

a

universe.

forbearance;
sympathy and

must strive for

our neighbors.
all, we must not become

Above

discouraged.

recon¬

more

Through

of

understanding with

economy.

The International Bank will as¬

sume

with

on

contributed much to

material progress as a nation.

our

ills

these

of

be

its influence for world

or

betterment be dissipated.

institutions has

Each

po¬

tential

curbed

that leadership.
It was recently my

personal acquaint¬

the

Domestic

vs.

Foreign Problems

Governors, the
President, and the executive staff

clusion

•of the Bank, I have become fully
confident that its operations will

meet

those

if

foe

at

remain strong and healthy
But we must not en¬

ance

sound

and

of

arnaximum
artost

will

produce

benefits.

the

This

is

important, for the trend of

of international

bilities.
we

It

is

responsi¬

that

true

we

can

responsibilities

only

home.

tirely
the

lose

sight

world

in

of

our

the

rest

oi

preoccupation

private investment in the future,
amuch larger in scope, will neces¬
sarily inherit the results of our

with political and economic com-;
plications here.

actions

In

The

No

the

a

demand for

Vast,

Consumer

unsatisfied

home and

goods,

demand

ber of Commerce.

at

Monetary ones, such as
pund provides one of our prin¬ labor and management, annoying
cipal hopes of promoting common ones, such as our
temporary short¬
standards of fair practice in the ages of this or thajt.
commercial relations of nations.
But along with * our amazingly
We have attached the greatest rapid reconversion to peace, in
importance to the program of the swelling tide of production,
building a sound basis for world in the record level of employment,
trade, sinc^it is the only alterna¬ and in the greatest material pros¬
.

tive to uncontrolled

currency

re*

strictions and

perity
ever

we or any

achieved,

own

believe there is

for

continuing
disap¬

If

on

match

the elements

stamina, there need be no inter¬
ruption of our era of progress.

international

cooperation

and

threaten the
peace..^

\No

is inclined to believe
jthat the dollars made available to
one

the world, through our contribu¬
tion to UNRRA, our subscriptions
to the Fund and Bank, and our

investments in direct credits will,
alone, bring us a new world in
Which every one is

We have

prosperous.

simply taken the basic

isteps necessary to permit the or¬
derly development of world econ¬
omy. The lifeblood of its full de¬
velopment will be, as it has been
in the past, free enterprise and

private capital venture.
Once

the

institutions

helped to create, and

have

we

direct

our

advances and relief expenditures
have given new life to the pro¬
ductive capacity of the world, and
have created fair practices under
which its maximum development
be achieved, then we will
have the ideal foundation for the

can

free

trade

the

United

States

.

major source of. such
private capital for several years,
since virtually all creditor nations
have
•

This
to

been

devastated

prospect

offers

a

by

war.

challenge

the

ability of our capital to
function intelligently and flexibly.
Unless it avoids the mistakes of
the past, we will have wasted not

only

our resources, but a critical
opportunity and responsibility. We

must remember that unproductive

capital

impoverishes
both
lender and the borrower.
Our

*

contributions

to

the

heights

of prosperity at
home, and to
heights of opportunity in
community of nations.
'
I

have

firm

a

belief

that

ternational cooperative enterprises
for world recovery and progress
constitute

a

beginning,

than the fulfillment of

We

must

guard

rather

our

against

quality of impatience in

our

aims.
that

Amer¬

ican character which might
impel
us
into a "what's the use"
psy¬

chology.

We must not drift into

new

to

are

be

re¬

over

and

accumulated
been

income

used

•

of

since

the

Jan¬

contributions of members on the
deaths of other members. The net
worth of the Gratuity Furtdv (val-^

there have been 89 deaths of jmembers, the assessments with respect

Before I

close

to which have been offset

by.,ap¬

propriations out of the Fund. Al¬

The World Trade Corporation

the

I would

like to

r

though the total net amount so
appropriated has beeii, approxi¬
mately $1,780,000, the net reduc¬

make brief reference to the World

tion in the net worth of .the. Fund
Corporation, which was es¬ during this period has been only
tablished early this year by Act of approximately $1,408,000. Appre¬
the Legislature of. the State of ciation and recoveries
totalling apr

the

Trade

must find time

,

New

York, and of which I am proximately $230,000 in the values
Chairman of the Board of Direc¬ of securities held, in ; the
Fund,

tors.

and net

The Act setting up this corpora¬
tion required that the board of di¬

$135,000
sible

,

a

,

'

forces of peace.

'

Multilateralism Needed
The great advantage flowing
from freer world trade and from

pate in the deliberations of - the. der a constructive report to the
Economic and Social Council and Legislature covering this entire
of its various subcommittees.
subject.in time for consideration
'-'T
""V'.V' *iZi
V"v'i
:"'\fj
at its next session.;
c

'

c:

1TO Plans

proposals and

group which, through long prac¬
tical experience, is well aware of
the destructive and
self-defeating
effects of trade barriers.
We shall be deluding

ourselves,

however, if
world

to

we expect the whole
subscribe to these doc¬

trines. Doubtless the Soviet Union
and her affiliated nations will re¬
tain either

state trading

or a

rigid

system of state control
ports and imports. Even

over

is

world

a

large

area

among

the

free

free ;

can

men

of

the

take
on

so,

in

place freely
the

competitive

basis of

As

an

on

Trade

and

and'

Employ¬

In

the

meanwhile, a preparatory
now meeting in Lon¬

to

make tentative plans for
this Conference and to review the

suggested charter for art Ipterna¬
tional

Trade

Organization,

cently issued by

our

re¬

Department

of State.

\

cold, for about ten min¬

a

Gratuity^Fund and William

D. Scholle is

Secretary and Treas¬
trustees of' the'

other

urer.

The

Fund

ThatcherM. .Brown,
Coleman, Clinton S. .LutLaurence M. v Marks' and
are

This charter contemplates that
the International Trade Organiza¬

by working

in close har¬
with the Economic and So¬

Nations,

kins,
John

J.< Starkweather.

Suspends Czech Credit
A British

Foreign Office spokes-,
on
Npv* 4 that
Great Britain had suspended ac¬
disclosed

man

tion

$10,000,000 r credit to
which, like the

a

on

Czecho-Slovakia

who was in

United States credit of $50,000,000

Washington to attend the annual

recently announced as suspended,
was to have been in the form of

utes.

party

Mr.

Molotov,

of

revolution,
Charles
press

Soviet Embassy in

at the

celebration

cial Council of the United
re¬

Truman

from

ference

mony

important step in the

on

Soviet

don

Economic

ment to be held sometime in 194?.

enterprise tion,

system.

The

committee is

the

Social Council has already issued
a
call for an International Con¬

ex¬

there

Molotov Calls

Foreign Minister,
Vyacheslav M. Molotov, paid a
"courtesy" Visit to President Tru¬
man at the White House on Nov. 7,
Associated Press Washington ad¬
vices reported, and remained with
the President, who was suffering

Government,

Of the

John A.

In line with the

multilateralism in trade do not
recommendations of the American
need to be elaborated upon.
in;this:

the

a

1917

by

described,

was

G.

Presidential

Ross,

secretary,

"purely

Russian

to

social

have

had

conversation"

surplus war materials, Associated
Press advices stated. One of the
factors

reported

to

retary of State,

national action for the reduction

subject of politics entering into it.

of the surplus war

of tariffs and other trade

barriers,

The Russian Foreign Minister was

mania at

for the elimination of all forms of

said to have. expressed happiness

discriminatory treatment in inter¬

at his

national

gen¬

and to have

eco¬

for being

released

for

the

on

Dec. 6,

consideration

the : peoples of the world
ment

p with

familiar;

1945,

which

you
"Proposals for

a

of

docu¬

are

all

eral,

for

commerce

and, in

the promoting

of

with

the

President,

without the

reception in this country;

praised the Americans

"delightful hosts."

.

influ-.

when the

State Department
requested the
Export-Import Bank ,to suspend
credit negotiations, was that the
Czechs were planning to sell some

will promote national and

inter¬

have

enced the United States,

duction of trade barriers, the Sec¬

Expan¬
a new isolationism of frustration
sion of World Trade and
Employunder which this richest and mostment."
These
proposals
were




Constitution, the ex¬
$500,000 of the capital

cess

political liberalism.

new

Article

*.

which trade

these in¬

restrictions

carry us forward to

Trade Barriers Masl Be Reduced

capital.

Obviously

recovery.

moved artd strength is to be given
to the forces
of economic and

'*

must be the

substantial

of

earnings of approximately
on the Fund made pos¬
larger total appropriation
than
rectors make a report to the Legoriginally anticipated and
islature of the State of New York, extended the period ^during whicli:
(Continued from first page)
no net payments by members were?:
setting forth its ideas as to what
unification of the American and endorsed not
action might he taken in the State required.
only by the Execu¬
British Zones is a desirable
tive Branch of the Government of of New York to encourage the ex¬
"The Trustees will make ^fur¬
step
in this direction.
Germany must the United States, but on all im¬ pansion of world trade. The Act ther appropriations from time t<*
be permitted to produce if she is
when
at the
end
of any
portant
points,
by
the
United requires that any proposed proj¬ time
to become
ect
should
have
a
municipal quarter the excess of the net
self-supporting and if Kingdom and France.
she is to contribute to the eco¬
The International GhamberJ of sponsor, which means that .if the worth of the Fund above $500,00®
nomic life of
neighboring nations. Commerce, at its Council meeting project should be developed in
•Which is the amount set fortti.
the
sponsor in
American policy did not foresee in June, gave full endorsement to New. York 'City,
the Constitutions-equals ap¬
a
Germany' separated into^ rigid the fundamental tenets and broad would, of course, be the City of proximately $15 for each member
New York. *
economic zones.
of the Exchange.
This
develop¬ aims of the American Govern¬
ment is contrary to the
principle ment and submitted resolutions to ; The opportunities for action to
"A full report of the operations
of economic
that effect to the President of the aid and promote the flow of in¬
liberalism, which, for
of the .Trustees of the Gratuity
a number of
Economic and Social Council of ternational trade through the Port Fund will be
years, has been an
included* as' usual,
essential
element
in
American the United Nations. The Interna- of New York are obviously varied in the Annual Financial
Report of
foreign policy*. This phase of rtational Chamber has recently and humerous and the members the
Exchange. Inasmuch as the >
American foreign policy had its been granted
of the Board of Directors of \ the
top consultative ca¬
program instituted
in 1941 for
origins in the Reciprocal Trade pacity to this important body. It World Trade Corporation have the reduction of the Fund to
$500,Agreements program of Secretary is the only international business been giving a great deal of time
0®0 is now completed, the Trust¬
Hull, who, as a true economic lib¬ organization
which
has
been and thought to the selection of the ees
are
submitting this interim
eral, recognized that freer trade is granted such status, a fact which steps best ^ .calculated to bring
report of the results
of this
essential in providing a suitable makes it possible for business men about the desired result. It is our
program."
economic
environment for
the throughout the world to partici¬ hope that we shall be able to ren¬
John Rutherford is Chairman

operation of enterprise and

U. S. Major Source of Capital

1941 to offset the required

countries

Then our American system of de¬
mocracy and free enterprise will

discriminating trade
same
system of free enterprise
practices, both of which are ruin¬ to consider our international re¬ that made our own country
strong
ous
to
economic
stability and sponsibilities.
•and prosperous holds the
great¬
world prosperity.
Such methods : Actually we cannot separate est promise to the world for
pros¬
restrict rather than expand the our concern for a stable
economy perity and peace.
benefits of productivity.
They
breed distrust and discontent that
undermine our whole process of

uary,

The

7

recovery and a

long-range advantages.
can

of

occurred.

Section

Further
sustained level of ing securities at market prices) at
well-being are dependent largely the time of the adoption of; this
upon the willingness of nations to Section of the Constitution
was
reduce trade barriers. Their will* approximately $1,927,000. At the
ingness to do so will depend upon present date the net worth is ap¬
our leadership.
Continued Amer¬ proximately $519,OOOSDuring this '
ican
leadership is essential if five-year and nine-month, period

we

we

has

a

will but submerge im¬
mediate self-interests and concen¬
trate

Fund

might

chaos,

have

well-being will

if

nro-

not

political

Western Europe are now emerging
from that chaos and have staged

economic

the

the

de¬

to

to < say:

on

with

VP of

our

obstacles

accordance

of

a

so-called

"In

visions

Most of

reason

pression psychology.

pear

Exchange. The notice to the Ex¬

change members weint

and

country and for export.

As I have said before, I do not

;

doc¬

the decade of the '20's and • '30's,
the second
World
War, which
plunged Europe and the rest of
the world into frightful economic

viding products and services for

other nation has

we

Gratuity
Members
Stock Exchange
on

been

Had the

espoused

we

translated into effective action in

There is the great potential ex¬
pansion of our facilities for pro¬
our

which

trines

throughout the world.

home, serious of " material stamina that exist in
those involving our country with an equal moral

International

Report

,;

Of

would deny that we do

one

i

near

Fund jo

have problems at

now.

the

future, the Ameri¬
can Government, under the terms
at home from our concern for a
of the * Reciprocal Trade Agree¬
stable world economy. A contin¬
ments Act, will proceed with ac¬
uing prosperity in these' United
tual negotiations for the reduction
States in the long run will con¬
The Trustees of the
of trade barriers. Reciprocal con¬
Gratuity
tribute more decidedly to world
of
cessions on the part of the nego¬ Fund
the
New York
Stock
health than all the steps we havp
tiating nations will provide an ex¬
xchange, reported to members of
taken thus far.
tensive area in which, in accord¬ the Exchange on Oct. 22 that the
There are many elements of
ance
with the Atlantic Charter net worth of the Gratuity Fund is
strength in our present situation and
the
Master
Lend - Lease now approximately $500,000 and
that hold forth a promise of con¬
Agreement; nations may have ac¬ that, beginning with the current
tinued full production and wide
cess, on equal terms, to the trade quarter, members will again be
distribution of goods, and of an and raw
materials of the world.
billed for
assessments, at the rate
expanding trade for a long period
of $15
These are doctrines
to which
each, on the death of a
ahead.
Current record earnings
consistent support has been given member,
to cover the
gratuity
and the accumulated
savings of
by the National Foreign Trade payment of $20,000 payable to
our
people represent a tremen¬ Council and
;he family of the deceased mem¬
by all groups associ¬
dous purchasing power. There is
ber under the Constitution of
ated with the International Cham¬
the

Another

danger we American
people
have to combat is the
temptation to concentrate our at¬
tention, and -our energies, on our
own domestic affairs, to the ex¬

2529

Office

a

spokesman said that "this

factor was borne in

the

goods to Ro¬

profit, and the Foreign

British

mind? when

Government

had the

matter under consideration.

2530

CHRONICLE

THE COMMERCIAL & FINANCIAL

Cotton Crop

Condition Of National Banks
calls back to and

including June 30, 1945,

For

of comparison,

purposes

-CONDITION OP NATIONAL BANKS IN THE UNITED STATES ON JUNE
30; DEC. 31,
,

?.'v "

,

■

1943 AND JUNE 29, 1946

(In thousands of dollars)

.

.

like details for previous

included.

are

Report

Plans

'

Dec.

30, 1945
(5,021 banks)

31,

June 29,

1945

of Oct. 1.

4.9% less than the Sept. 1 fore¬

This is 447,000 bales

The indicated production is
less than for any year since 1921

cast.

''A

....

Loans
U.

S.

■'

and

ASSETS

:

discounts,

Government

y;;"Zv;Y':

including overdrafts____

securities,

direct

12,389,133

I

obligations

Other bonds,

notes and debentures

Corporate stocks,

Total loans

Cash,
Bank

securities
other

of

estate

other

and

real

including

reserve

-Z..'.

balances,

than

other

bank

assets

66,515,182

503,793

495,105
10,068

18,661,851
495,932
10,038

45,937
27,191

46,384

46,916

41,943

58,049

135,460

147,946

140,255
64,831

:

2
earned

;-Y

assets

.

or

but

accrued

,

•

-

47,507

.

assets

55,870
1

iBi;794', 833

' ''k

■

12,553,000 bales.

Decreases

v

in

duction from
Belt

Cotton

with

Mississippi, Arkansas;
Alabama showing sharp drops;

Production

in

the

irri¬

western

States improved slightly
during September,,
Drought which prevailed oyer
wide areas of Arkansas
during
August continued ipr September

85,993,054

:

I

''

"

;

Demand

-

: •/

-:

'

-

'

LIABILITIES

'-t

'

;

•''

deposits of individuals, jpartnefships and corporations^.;.....

Time deposits of

individuals, partnerships and corporations,-Deposits of.U. S. Government and postal savings.
Deposits of States and political subdivisions

^

13*210,056

3,193,723
8,251,954
767,854;

.

banksi—'

Other deposits

(certified and cashiers'

checks^'fito. jZ~Z;:Z~T"7 "
■

Total

deposits.

other liens

-

•

-.

42,560,021
17,173,998

-

;

7,696,306

;

1,430,311

Interest, taxes and other expenses accrued

and

;

80,494,758

62,859,192

16,384.635
77,969

17,635,566
325

47,§43

71,061

caused considerably greater wee¬

31,484

43,367

vil

209,956

31,776
•

24,441

238,332

269,631

221,003
264,522

77,322,280

—

85,880,019

quent

81,119,477

■

1,624,184

:'r;

—-

1,658,839

'v

1,875,277
; 692,146

.Undivided profits ; ^-4—3.-^
Reserves and retirement account for preferred stock_Z.

2,100,222
788,759
301,107

688,986
296,509

,

4,472,553

4,655,737

,81*794,833

90,535,756

month delayed picking, and low*

•

capital accounts.

ered the quality of lint. Through*
out eastern States, cool weather in
late August and September fur¬

4,873.577

Y'

MEMORANDA
Par value of capital stock:
;
Class A preferred stock.,

:

1,659,050

5,608

stock...^.-;:.—

103,614
4,939

63,594
{

U. S. Government obligations,; direct snd.
guaranteed, pledged to Sectire
deposits and' other liabilities--,^..;.... ..-Y.
:
vY;
yYY-'y/'-.>

;

...

17,765,985

Other assets pledged to secure deposits and other
liabilities,
and bills rediscounted and securities sold under
repurchase

incfudZno'tes

.

,

;•

.

/'

Kr:--

»

,

V I'

"Z" V-

Z

14,260,418
•'

»

351,843

353,866

—-

101 277

109,439

i i'r

6,931

4,384

c

.

358,046

.

:

;

Total' >i—'

——

18,226,036

.

.

19,696,846

15,923,659

repur-yay/ :vy..-.

chase agreements

,

,

17,269,578

by pledged

5,209

assets._____.__^___Z__ZII—"ZIII—

24,441

10

6

lV,347,557

11,277,770

,

'

-

Deposits of individuals, partnerships and corporations—
Deposit of U. S. Government;.'C.'/.
;
War loan and Series

Others accounts

E

bond accounts—

'

37,126,500

'4.-—.3.;vvY-Z^Y-Zy

Z' —:

branches of foreign banks).—.11-'
banks in. foreign countries

of

branches of

other American

credit

and

cashiers'

banks

'

y.,y

258,143

2,858,679

-Y

YrY"

checks

(including

dividend

checks sold for cash and

(transit account)...

42,560,021
7,431,239

243,036
3,182,679

•

:

187,958
3,664,746

■

,

'

r '

7,669,129

of" foreign

8,586,132

7,121,558

544,899

balances

603,325

652,783

1,430,311

for

plants

in

Total demand

checks),

letters" of

amounts due

to Federal

deposits——-x—:.:..:

;Y

'Y

62,093,681,

Deposits accumulated for payment of personal
Christmas savings and similar accounts
accounts

98,838,312

conductors

13,731,807
367,025

I
•

cottonseed

of

foreign
Total

bus

as

bars.

.

plants located in 11 states*
The
plants were erigaged in the pro¬
duction of scarce metals' such as
aluminum

and

! In

magnesium.

its bus bar role the silver replaced

and

copper,

its use

released an

equivalent amount of copper for
other vital war purposes..
*
"Since the closing down Of the
war .plants: the silver has been in
storage, under the protection of
RFC guards.
The storage points

from

scattered

are

coast to

coast.

The RFC will deliver the silver to

United

the

Mints at

States

Den¬

ver and

Philadelphia and the As¬
say Office in New York City,
,

"As presently

stored, the silver

is mostly in the form of slabs cut
bus bar sections, the slabs

from

being eight to 12 inches wide,,ap-v

proximately y half an

inch

thick,

and two to six feet long.

The two
Mints and the Assay Office will
it into

recast

eithe^coinage in-^

commercial Zbars.

About

138 tons of the silver will be re¬
covered

from

electrical

large

transformers, in which it was usOdl
in place of copper as

winding ma¬

terial.

"In most of the war plants, sil¬
loss or damage
apparently

ver

was neglibile. In some * instances
there was loss from such causes

oxidation, melting, or the ef¬
of acid.
Preliminary esti¬

as

fects

mates Ure that the total loss will

but

be

small percentage of the ;

a

total

Weight of 474,194,634 : fine
ounces

originally

delivered

to the plants. The war plant silver
is carried on the Treasury's books;
at

value

total

a

of

about

$551,-

000,000. Most of it is "monetized'
silver, valued at $1.29 per ounce.

borrowed for electrical conductor
use ih the atomic bombr project
plant at Oak Ridge, Tennessee.*
.

should

be

the

banks

in

foreign banks)
foreign countries

banks

and

—

YY

(including balances of foreign
banks, but excluding amounts due to own

*

^

"/)

J

295,044
private

■

Y;i: 33,874

17473,99$

^ ■"

,17,173,998

.

(-

After

75,244
2,979
:

305,032

;
;

35,527

.

.

; ,Y

'

2,892

;~

342,013
35,644

4,052

deposits
reserves

5,802

6,802

14,731,856

i

to

net

demand

16,384,635

17,635,566

Total, Central Reserve city banks
Reserve city banks
Country banks..
Total, all member National banks

plus time deposits:
18.87 %




•
...
,

1

18.82%

18.72%

16.54%

Total,
Total,

five

years

in the

an
Industry Association of New
York, it was announced on Nov.
II
by Thomas Jefferson Miley,
Association Secretary. A Lieuten¬
ant-Colonel in the Infantry Re¬

'74,217

on
on

time

almost

Corps. Col. McCaffrey went
active duty in World War II
Jan. 12, 1942, on leave of ab¬

serve

branches)

Ratio of required

Industry (

16.47%

16.32%

10.99%

11.08%

11.10%

15.04%

14.94%

14.78%

.!

sence

from the Association. Grad¬

uating from the School of Military
Government at Charlottesville, he
served
overseas
from
May 10,
1943, to Aug. 24, 1946.

the

at

ing

tor of Research of the Commerce

:

Billion Mark

f

Army, Col. George H. McCaffrey
has returned to his post as Direc¬
15,960,051

Savings Bond Sales:

1946

Pass $6

the average for the past

Association

5,057

...

;

15,960,051

78,379

of

branches of other American

89,397

•;

J

14,315,450

,

Postal

branches

}•

100,174 i

'

'

savings deposits...
Deposits of States and political subdivisions...
Deposits of banks )n the United States (including

-

1

27,047

ioans_.

Total

Deposits

known

Savings bond
sales in 1946
five years, production would be passed the six million dollar mark,
Secretary Snyder reported on Oct.
3,551,000 tons.
Such a production
10, September .sales of E. F. and
would be 3.1% below the 1945 re¬
G, Savings. Bonds totalled $494,vised production of 3,664,000 tons
111,000, bringing the year's total
and 32.2% below the 10-year av¬
to $5,878,784,000 at the end of the
erage of 5,240,000 tons.
.* J;
month, according ; to the Treas¬
V The Bureau of the Census re¬ ury's announcement, which also
ports 2,334,399 bales ^pf cotton said;
>
ginned from the crop of 1946
"Sales exceeded redemptions p£
prior to Oct. 1, compared with
these series by $1,142,350,000. To¬
2,177,768 bales for 1945 and 3,988,tal of E. F and G bonds outstand¬
as

McCaffrey Returns tp Post

62,859,192 ;

A

—

Deposits of tJ. S. Government

American

form
chiefly

"Approximately 14,000 tons bf
in Northwest Texa^, Treasury silver remains on loan
Tennessee} north Ala¬ to. the War Department. It was

In Commerce &

Deposits of individuals, partnerships and
corporations:
;■
Savings deposits
;
Certificates of deposit
-p■. v"

;' Open

the

so

150 bales for 1944;

;

Time deposits:

,

in
war
of electrical
heavy
duty

installation

conductors,

reached

ber
;

•

(now the Office of Defense Plants,

RFC)

troy

1,240,887

*

own

^

and travelers'

Reserve

'

13,841,894

•767,854

(including

banks, but excluding amounts due to

foreign branches)..,
Certified

.

40,970,935

12,868,475

.........

Deposits of States and political
subdivisions.Z-'.ZZ.iZZZZZZZZZZZZZZZZZ—
Deposits of banks in the United States (including private banks and
American

expected

..

to

same

'

Deposits

early
than1

Although the percentage ginned
to Oct. 1, 1946 was higher than
for the same period a year ago,
it is considerably below the av*
erage for; this, season. The crop
is generally later than, usual and

lint

77,969

7

,;r

Total
Demand' deposits:

•'

less

cember; Howeven if the ratio of

11,253,323

<•'

15,928,875

Other liabilities secured

.

was

production in some areai
No estimate of cottonseed pro¬
duction will be made until De¬

14,739,870

g

Deposits secured by pledged assets pursuant to requirements of law
Borrowings secured by pledged assets, including rediscounts and
V

season

.

in RFC

use

reduce

Secured liabilities:

-'

very

Missouri,
bama, and Georgia. An early kill*
ingfrost would make a large
Crop of "bollie" cotton and further

13,409

Assets

was

picked

from

outturn

markedly

;

107,997

3

Y

J

K'l

19,229,157
YY.

agreement
pledged to qualify for exercise of fiduciary or corporate
powers
and for purposes other than to secure liabilities—:..
——»
• a
.Securities loaned

'

W

damage. In

rainfall

Many bolls; normally considered
showed heavy weevil dam*

59,128

Pledged"assets and securities loahed:

bolls

safe

4,466

108,553

where

of

the

age;

Total

•

States

fields

1,683,677 ;

113,019

maturity

heavy during the growing

3,318
1,636,253

118,627

ClasS B preferred

.

44,106

;

3,748

1,588,656

1,624,4li

Retirable, value of preferred capital stock:
Class: A preferred stock

.

66,646

4,360

stock

Total

./

;

75,296

1,544,755

Class B preferred stock..
Common

Y*.:.V

■

retarded

and increased weevil;

85,993,054.

1942 for

plants,
The Treasury -De¬
partment in announcing this said:
"The silver was borrowed by
the
Defense
Plant
Corporation
war

gots t>r

ther
and

July

Texas, Alabama, and Georgia
frequent rains during the past

1,683,489

2,011,403

•

280,946

accounts

Total laibillties

and

In

; capital accounts
(see memoranda below)
.,

June

m

and cool weather during Septem¬
ber were unfavorable.

"

Surplus

rains

damage than anticipated. In
northern Alabama excessive rainS

.

v

prema+

68,658,312

;

Total capital

considerable

"opening. The drought and
low night temperature retarded
development of late cotton and
reduced
prospective
production
135,000 bMes. The Oct. 1 estimate
for Mississippi is down 150,000
bales from a month ago, as fre¬

85,242,947

26,482
194,885

Total liabilities.

Capital stock

caused

ture

89

unpaid

liabilities...^.^——

■'

and

,

4,006,759
7,816,787
1,240,887

...

5,209

bank

on

premises and other real estate..
Acceptances executed by or for account of reporting banks and
outstanding
Interest, discount, rent and other income collected but not earned
Other

^, ■•

14,731,856

r

Time

or

1

■

*V

62,043,681

deposits
^
-"Y
: Y.
y:
: - ■; ■ "'
■
deposits
~_ZJZZZ~ZZ~ZZZZ~__ Z~ZZZZZ
Bills payable, rediscounts and other liabilities for
borrowed mnnPy
~~*
'

Mortgages

■

<■'

76,825,537

Demand

V

■

.

•

40,970,935
15,960,051
14,163,153
3,487,711
9,230,786

14.315,450

.3

„

Deposits 'of

>.

37,126,500

„

;

\

16,300 tons of silver

borrowed in

The installations were made in 13

prospective pro4
month ago werB

a

throughoutthe

general
!

av¬

proximately

/

,

gated

90,533,756

of

pounds and the 10-year
243.2 pounds.^/..

erage

and

■■

J.

Total

•

K

not
:

-

251.0

.

or

estate

liability on acceptances outstanding
cbmmissions, rent and other income

collected■„
Other

69,559,651
,20,178,789

1

premises

Customers'

Interest,

63,409,034

"I
bank

143,654

12,960

I

;

representing

1,945,946

Lint
yield per acre, computed at 235.6
pounds is the smallest since 1941.
The 1945 lint yield per acre was
average

cash

premises

inditectly

1,656,865
145,313

Y";

17,612,951

and

_

furniture and fixtures

owned other

Investments

T..

banks,

collection

2,454,265

1141,256

,

with

process

premises owned,

Real

banksl

7,401

2,341,725

1,422,677

_

47,465,475

Y

7,746

2,200.505

including stocks of Federal Reserve

and

balances

items in

•«'

y:>.

and compares with 9,015,000 bales
produced in 1945 and the 10-yeai*

14,498,441

13,948,042
51,459,960

47,230,307
25,156

Obligations guaranteed by U. S. Government
;
Obligations of States and political subdivisions

J -;!:

A United States cotton crop of
anArrangements,
it V- was
8,724,000 bales is forecast this nounced on Oct. 10, have been
year by the Crop Reporting Board completed by the
Treasury and
of
the
of
Bureau
Agricultural Office of Defense Plants, Recon¬
Economics based on information struction Finance Corporation, for
reported by farmers and ginners the return to the Treasury of ap¬

or

1946

(5,018 banks)

(5,023 banks)

■

;

Borrowed Silver

as
June

Return

to

•v;

As of October 1

The statement of condition of the National Banks under the
Comptroller's call of June 29, 1946,

•

has just been issued and is summarized below.

Thursday, November 14, 1946

cluding

the

Series

of

E

end
of; Septem¬
$46,200,000,000, in¬
increase in value
and F bonds ^dur¬

the nine monthSi;rqThis is a
gain of $1,500,000,000 for the three
series currently on sale.
*'■"»/ ■

ing

"Total

of

E bonds

at the end of

outstanding

September, $30,300,-

000,000, was 1.46% lower than at
beginning of the year.
Sep¬
E bond sales were $308,—

the

tember

846,000.
"As

a

spur

to bond sales in the

last quarter, a publicity

and ad¬

vertising campaign will be staged
Armistice

from

Day,

Nov.

ll,

through Pearl Harbor Day, Dec.
7.

The

last

followed
lirm

calpc

by

such
a

promotion Was

three-quarter bil-

mnnt.Vl

in

.Tlllv."

.Volume 164

Number 4542

Moody's Bond Prices
Moody's

computed

bond

and Bond Yield Averages
prices

Siten in the
following table:

;

MOODY'S

and

■

t;;

;

BOND

bond
■

yield

.

averages

are

During the week 16 price series in the index advanced and 20

declined; in the preceding week 12 advanced and 21 declined; in the
second

preceding week 31 advanced and 10 declined.

>

.

2531

CHRONICLE

THE COMMERCIAL & FINANCIAL

^

PRICES

;

INDEX

WHOLESALE COMMODITY PRICE

WEEKLY

Compiled by The National Fertilizer Association

'

>

<

,

Dally .;.i ;rV
Averages V "
Nov.

Govt.

Bonds

■

lli----w

Aaa

116.61

Aa

Exchange

122.20

v.

116.61*

Corporate by Groups*
Indus.

P. U.

.112.37;

110.34

112.37

117.60

116.61

121,25

119.20

116.22

110.34

412.37

117.60

122.17

116.61

121.25

119.20'

116.22

110.34

112.37

122.14

,117.60

120.02

6—___

116.61

121.25

119.20

116.22

110.34

112.37

117.60

120.02

119.20

116.22

110.34

112.37

117.60

120.02

Stock

2__—

116.61

122.14

1

;

121.04

119.20

116.22

110.15

112.19

117.60

: 116.41

121.04

119.20

116.02

.110.15

112.1'9

117.60

119.82

116.61

4

10.8

•Miscellaneous

8.2

163.1

116.22

112.19

117.60

120.02

7.1

Metals i

110.34

112.37

117.80

120.02

6.1

Building

116.22

110.15

112.19

117.60

119.82

13

Chemicals

116.61

121.25

119.00

116.61

110.34

112.56

117.80

119.82

.3

Fertilizer materials

.3

116.61

121.04

119.00

*

116.61

.

110.15

112.37

119.00

116,61

119.41

117.00

111.44

122.29

120.02

117.80

117.80

119.61

113.89

118.00

120.22

114.46

110.52

121.46

118.00

119.82

112.75

121.04

117.20

117.80

118.60

120.84

112.19

122.92

118.40

122.71

120.43

118.00

123.30

118.40

122.92

120.84

118.20

112.37 ; 114.85
112.37 1 115.04

118.80

121.25

119.00

121.46

•Indexes

16—L——.

123.49

118.40

122.92

120.63

118.20

112.37

115.24

119.00

124.5

178.3

154.7

128.2

126.2

122.5

122.5

122.5

118.3

125.1

125.1

125.1

119.9

116.6

116.6

181.3

123.49

118.60

123.13

120.84

118.20 '

112.56

115.24

119.00

118.60

323.13

120.84

118.20

112.56-

115.43

119.00

121.25

July. 26——4

123.77

118.60

123.13

121.04

: 113.40

112.56

115.63

119.20

121.46

June

124.11

118.80

123.34

121.25

118.40

112.56

116.02

119.20

121.46

May .31—

123.09

118.80

122.92

121.46

118:40

112.56

116.22

119.08

121.04

124.33

119.00

123.34

121.25

118.40

113.12

116.41

119.41

121.04

Mar. 29-^a---.

125.61

119.82

123.99

122.29

119.41

114.27

117.40

120.22

122.09

P^b. 21

126.02

120.22

123.34

121.88

119,00

114.27

116.41

120,22

122.09

25—126.28

122.0$

1926-1928'base

what

..

-

*:,:2

.

;

'Apr. 26-*

Jan-.

_

Dow

119.00

123,12

121.25

;il^.00

113.31

1151821 119.41

120.02

124.20

122.50

119.61

114.46

117.60

120.43

116.41

120.84.

118*80

116.02

409.97

112.00

117.60

119.61

1 year

123.28

116.61

120.63

119.41

116.61

130.02

2 Years

10,

Ago

113.31

117.40

'fe's

*

119.77

1^44-

112.75

118.40

117.00

MOODY'S BOND

(Based
I946w

U.S.

.'Daily
Averages

Govt.

12

1.56

——

11

*

9

-.V
'

—

■

7
■■

2.82

2.82

2.59

2.69

2.82

2.59

2.69

1.57

;

1.57
Stock

1.56

2.82

<

1.60

3.04

2.77

2.65

Middle

3.04

2.77

2.65

Central

3.15

3.04

: 2.77

2.65

West

3.15

3.04 '

2.77

2.65

Southern

2.84

3.15

3.04

2.77

2.65

2.69

2.84

3.16

3.05

2.77

2;69

2.85

3.16

3.05

2.77

*2.66

2.69

2.84

3.15

3.05

2.77

2.82

2.69

2.84

3.15

3.04

2.76

2.61

2.70

2.84

3.16

3.05

2.77

2.82

2.59

2.70

2.82

3.15

3.03

2.76

2.66

". 2.60.

f--,rV6

2^82

2.60

2.70

2.82

2.60

2.70

2.79

2.58

2.68

1.58

2.75

; 2.54

2.65

1.65

j

1-65

>

'

.

-

10.9

2.82

9.7

14.0

i

15.4 m
13.4

31.0

Central—:—tW

31.3

•10.3:'

Mountain

Pacific

8.1

11.7

14.7

-

•

28.4

V

19.5

7.4

19.1

18.7

Total United States—

8.5

17.7

.

IS

.

4.3
12.2

2.76

Aug.

3

3.02

2.76

2.67

Aug.

2.75

2.64

Aug, 17-—W

2.76

3.05

2.93

2.72

2.61

Aug. 24

2.71

2.59

Aug, 31-—-..—

2.70

2.58

2.70

2.59

1945

I 4,351,011

10

2.96

of

Kilowatt-Hours)

Sept: T—---.J--—.
Sept.

4,432,304

1932

1944

Over 1945
1.8

4.411,717

4,395,337

+

0.4

4,399,433
4,415,368

3,939,195

+ 12.3

4,451,076

4,116,049

+

8.0

4,418,298

4,404,192

a

4,137,313

+

6.5

4,414,735

1,431,910
1,436,440
1,464,700
1,423,977

3,909,408

+

7.0

4,106,187

+

10.1

4,227,900
4,394,839

1,476,442
1,490,863

—

1,415,122

1,729,667
1,733,110
1,750,056
1,761,594

1.55

2.75

.2.52

2;63

.2.75,

3.04

2.91

1.52

2.73

2.51

2.61

2.74

3.04

2.90

16-——

1.51

2.73

2.51

2.62

2.74

3.04

2.89

1.51

2.72

2.50

2.61

2,74

3.03

2.89

2.70

2.58

Sept. 21

4,184,404
4,521,151
4,506,988

4,018,913

+ 12.1

4,377,339

1,499,459

1,777.854

2— ———m

1.51

2.72

2.50

2.61

2.74

3.03

2.88

2.70

2.59

Sept. 28————

4,517,874

4,038,542

+ 11.9

4,365,907

1,505,216

1,819,276

1.49

273

2.50

2.60

2.73

3.03

2.87

2.69

2.58

Oct.

5———.

4,478,092

4,028,286

+11.2

4,375,079

June 28——,

1.47

2.71

2.49.

2.59

-2.73

3.03

2.85

2.69:

2.58

May 31——-

1.48

2.71

2.51

2.58

'2.73

3.03

2.84

2.70

2.60

Oct., 12
Oct. 19

\

.

July

26

Apr. 26———.

1.45

2.70

2.49

;;

■

2.73

2.59

3.00

Oct.

4,495,220

3,934,394 i

+ 14.3

4,354,575

——

4,539,712

3,914,738

+ 16.0

4,345,352

4,601,767

3,937,420 ;

+ 16.9

4,358,293

2.83

2.68

2.60

Nov'.

2—

1.36

2.66

2.46

2.54

268

2.94

2.78

2.64

2.55

Nov.

9—

21——

1.33

2.67

2.49

2.56

2.70

2.94

•2.83

) 2.64

2.55

Nov,

Jan.

25—

1.31

2.70

2.50

2.59

ill 2.70

2.93

2.87

2.68

2.55

1.68

2.83

2.61

2.71

$. 1.85

3.17

3.06

2.77

2.67

2.93

2.77

2.63

1946

1.31

—

1 year Ago ,
Nov. 10,, 1j45-

1.53

"

2.65

2.53

2.82

2.62

2.68

2.82

3.16

3.00

:2,82.

3.02

.

,2.45

2.73

2.80

3.01

3.55

3.30

-

2.99

10,

;1.86:

1944-

♦These prices are computed from average yields on the basis of one
bbndt
"typical
coupon, maturing in 25 years) and do not purport to show either the average
level or the average movement of actual price quotations. ••
They merely serve to
iUustrate in

a

more

comprehensive

way

"NOTIr—The

Issue of the

list used

in'compiling the

"Chronicle" on page 1321.

averages
t

given

was
<•

<

the

Sept. 5,

*

.

;.«

r-,

in

■

•

••■• •

"

■■

:

Commodity
Price Index Advances Slightly

Fertilizer

Association and made public

on

Nov. 12, registered a slight

gain in the week ended Nov. 9,1946, advancing to 181.3 from 181.0 in
the

preceding week.-

-

the index

yveeks ago when it stood at
and

a

year ago

During the latest yveek

advanced
was^

and

two

at its! all-time high point two

184.4.;] A month

142.0, all based

Association's reportadded:
,

was

on

>

one

declined.

ago the index was 174.4,

the 1935-1939 average as 100,
,

groups

The miscellaneous

of. the index

commodities index

higher-with the increased prices for hides and 'cottonseed meal

more

than

offsetting lower prices for linseed meal, bran and mid¬

dlings. ,The farm products index declined slightly.

in7 cotton prices resulted in
grains

index

was

lower

a

;

The sharp break

7.3% decline in the cotton index. The

with

prices

mixed.

The

livestock

index

Bhowd a small gain with- higher prices for good cattle, hogs and sheep
more

than, off setting lower

prices for calves, eggs, .and live poultry.

The. textiles index declined slightly.
foods

index; higher prices for butter,

salmon and

cottonseed

oil offset lower

potatoes, meats and lard.

-




v.;

There

flour,

no-

change in the

dressed

fowl, canned

was

prices for cheese,

corn
:•

1,475,268

1,793,584
1,818,169

4,368,519

4,042,915

4,524,257

1,510,337
1,518,922

1,718,002
1,806,225

meal,

When
States

when

especially burdensome
time to American
business men who
find it necessary to travel exten¬
sively in war-torn areas. They are
endeavoring to place their busi¬
nesses once more on. an efficient
and economical operating basis*
so that they can contribute their

at the present
and

tion

than

I

ascribe

well-charted

practice.

r5

.

/

Members of both parties m and

others

to

na¬

of

in actually carrying
foreign policies of our
government.
It has' been a na¬

paring,

out,

and

the

It will

program in so

been

ouf

to fol¬

cut of the

another party. We take the oath
of office. We have at one time or
offer

course

foreign policy has been
developed and executed on a bi¬
partisan basis. I have done my
best to strengthen and extend this

foreign

equally willing to
dives in the defense of

tional

of

and

not

party

a

continue to

far

be

as

State and I are

a

program.
national

the Secretary
concerned.
I

I
shalk proceed, firmly believe that our Republi¬
therefore, in the belief that the can colleagues who have worked
members of the Congress will dis¬ intelligently ; and fj cooperatively
charge their duties with a full with us in the task will do so in
our

country.

;

realization of their responsibility^

Inevitably, issues wilL arrive be¬
tween the President and the Con¬
gress.

When'this occurs, we must

examine

respective positions
with stern and critical analysis to
exclude any attempt to tamper
with the public interest in order
to achieve personal or partisan ad¬
vantage.
;
our

The change

in the majority in

t,^^

*

r»-"1

of

restoration

the

to

commended

on

the
>

its gen*>

the future..

My concern is not about those
in either party who know the se¬
of the problems which

riousness
confront

Those
are

who

united

them.

either
field

us

in

our

share
and

foreign affairs.

great problems
not divided by

personal notoriety or partisan ad¬

in

this country, in common

with

tries,

has

the

of

most

foreign

erected

obstacles to

serious

a

coun¬

number: of
international-

A logical first step might
calling of a conference of
the United States agencies

travel.
be

the

regulating such travel with a view
restric¬
tions and standardization of pro¬

to elimination of needless

cedures,"

Moody's Daily
Commodity Index

>

i

1946—,—
—
*
Wednesday, Nov. 6__—------------355.7
Thursday, Nov. 7—352.Q
Friday, Nov. 8—^356.1
Nov. 5,

Tuesday,

_

Saturday, Nov.
Monday,

11—

Nov.

Tuesday* Nov.;

12*.—361.3

Twa weeks ago,
Month ago,

Ye$r

ago,

1945

Octr. 29—,

Oct. ll_4.-t-————-

Nov.

High,

1945———_—-

10,

548.2
340.5
263.6

———

265.0

Low, Jan. 24__-—^————

My concern is lest any in

party should seek in this
an
opportunity to achieve

attitude

far-sighted

because

Congress have partici¬
all
not claim for pated in the inner council in pre¬
our

These

international

in

are

erally

Our

associates greater

another

of

dealing with the Overall problem
of barriers to international trade
and travel.
But in this particular
field it seems to have been remiss

a

I do

resident

a

domestic

low.

my

passports,

the

have

state of affairs.

to

obstacles and barriers.

travel

States is

Congress does not alter our
of foreign interests or
problems. In foreign affairs we

devotion to the welfare of

relating

"The Government of the United

(Continued from first page)

myself and

the

world's normal commercial life.

terests, can we meet and solve the
problems ahead of us.
The stake is large. Our great

some
may too easily assume,
indestructible.;"ic;:•
I shall devote all my energy to
the discharge of my duty with a
full realization of the responsibil¬
ity which results from the present

of

with widely varying laws.
a
resident of the. United
travels
abroad, however,

states

share

Congress' Cooperation

another

The

i

of !the composite

1,798,164

1,531,584

4,450,047

as

The wholesale commodity price index compiled by The National

,

1,520,730

4,396,595

internal strength ; and our emi¬
nent position in the world are not,

1946
\
'

National Fertilizer Association

;

4,354,939

3,841,350

the relative levels and the relative movement

yield averages, the latter being the true picture of the bond market.
,

+ 18.7

Commerce

inconveniences

3,S84,608

3,899,293

of

ous

2.78

13% %

in

1,798,633

Truman Plea for

; ,2.65

-2 Years Ago

Nov.

lead"

1,824,160
1,815,749

2.53

IjOW

1946—

the

1,806,403

2.67

High

"take

and

3,948,024

4,628,353
—r

16—Nov, '' 23—
Nov,
30—

to

country travels in the
United
States, whether for business or
for pleasure, he immediately is
confronted with all types of seri¬

1,792,131

1,525,410

Mar. 29—

Urging the United States Gov¬
ernment

1,674,588

1,533,028

26——.i—-

Peb.

International Travel

1,806,259

1,507,503
1,528,145

—.

In

Urged to Take Lead
Lifting Bans on

"People
can
travel
freely
throughout the United States even
though there
are
48 different

1929

4,422,242
4,444,040

j——

US

eign Commerce of which H. Har¬
vey Pike is Chairman, the report
said in part;
,

% Change

1946

3.04

;

meet

Drawn by the Committee on For¬

23——————

Atfg. 30-—:-

and all, I pledge
and. promise to
good will with good will.
one
faith

visas and other formal documents.

11.2

DATA FOR RECENT WEEKS (Thousands

Week Ended—

3.09

2.66

them,

procedures

9.3

24.1

16.5;

7.0

27.3

Coast

3.16

v

To

faith with

ulating such travel with a view
to simplifying • and standardizing

7.8

10.1

'

States.

3.14

•

the

of

my

State of New York advocated reg¬

12.8

7.9
"

15.0

Industrial

13.3

8.3

12.4
10.0

—-

Atlantic

2.80

2.82

-

members

hope and prayer
is that this spirit of cooperation
will be reciprocated.

Chamber
Oct. 5

Oct. 12

Oct. 19

Oct. 26

2.66

1.65

13—

^

—Week EndedNov. 3

England-—s.

2.65

2.83

1.63

20

.•"*

OVtiR SAME WEEK LAST YEAR

2.65

1.63
1.65

every prop¬

burdensome
restrictions
upon international travel, a report
made
public on Nov. 3 by the

2.65

2.60

with

manner

4,601,767,000 kwh., produced

week in 1945.

Division—

Rocky
2.69

2.60

2.60

2.82

-

same

Major Georgraphlcal

3.15

•

in

increases of 31.0% and 27.3%, respect-* lifting

PERCENTAGE INCREASE

3.15

2.84

the

over

2.65

2.84

;

the corresponding

over

The
largest increases %ere reported by the Southern States and Pacific

2.77

2.60

2.82

Bept. 27--—*

increase1 of 18.7 %

electric output amounted to 3,899,293,000 kwh.

3,937,420,000 kwh., produced in th6 week ended Oct. 27, 1945.

3.04

•

2.83

aZZZZZ

industry for the week ended-Nov. 2, 1946,

an

in the week ended Oct. 26, 1946, which was 16.9% higher than the

3.15

Exchange Closed

"li .57'

18—

week1 last year when

2.84

2.69

25

4,828,353,000 kwh.',

2.84

2.69

2.59

1.57

I".

electtic light and power

New

2.59

2.82

4

■'

2.84

people.

.

The Edison Electric Institute, in its current weekly report, es¬
that the amount of electrical energy distributed by the

Corporate by Groups*
R.R.
P.U.
Indus.

Bad

Closed

2.82

—^

' 2—

Oct.

2.69

1.56

5

y

A

best

be

our

timates

States groups which showed

Closing Price's)

Aa

2.59

Stock Exchange

•-6—

'

107.62

Corporate by Ratings*

"^Aas^.

1.57

8

•

rate*;

103.30

to

me

of all

I shall cooperate

ElectricOulpuf for WeekEnded Nov. 2,1948
18.71 Ahead of TKat for Same Week Last Year

ively,

Avge.
Corpo-

Bonds

112.93

YJCELD AVERAGES

individual

on

:

Npv.

.

simple

..

The current figure also compares with

;1?6.61, -110,15; 113.12

United

a

always be based upon a progres¬
sive concept of government.
;
er

w£s

Ago:

10, 1945-

Nov.

"

by

in^all cases, from

to

seems

Gongress and

122.50

120.70

1946--.-.
1946

Nov.

>

126.28

I

High

'

the

guided

am

105.0

1

were:

our

Our search for that welfare must

121.46

123.45

on

10, 1945, 110.6,

I

for the welfare

,

174.4

181.0

:

our¬

of

142.0

116.5
'••'

*•;

benefit

day to day, with'out regard to
narrowpolitical
considerations,

109.8

184.5

121.25

9—_™_

Nov.

160.5

125.0

country. To fol¬

of

formula: To do

211.9

128.2

Farm machinery—J.—.

President

132.8

>

184.5

All groups combined--;-—.

.3

100.1)

As

States

143.5

201.0

•>-

<

167.6
166.8

151.1

125.0

—

our

with

129.9

;

128.2

—

and

193.6

200.5

i——

drugs

frustration to

154.2

154.2

Fertilizers—

>

and

hard course.
executive
or
the legislative branch of the
government to embarrass the other
for
partisan gain would
bring

country, we must look beyond and
above ourselves and our party in¬
terests for the true bearing.

226.6

223.1

222.2

—_w—-*——

materials

set upon a

are

selves

173.1

367.9

215.6

154.8
——

116.22

110.34

218.2

286.4 i
:

225.1

commodities

119.20

We

low the course with honor to

1945

224.0 fi

222.8

—

Textiles

119.00

116.61

-

202.3

154.2

-119.20

122.52

Aug. 30--—*
?:■<& 23

279.2

-

121.04

121.14

-

>': Livestock-^.-——A-'d.*.
Fuels

121.04

121.80
'

284.9

-

2,

*

or

146.6

265.6

12Q.84

121.08

i

193.0

214.4

116.61

'

r6

280.1

Grains

-116.41

121.05

^

145.0

Cotton

121.43

Bept. 27-

;

17.3

120.02

121.77

.

188.8

Farm Products.j-*-^—^-————
;•

121.08

18

11

.

23.0

.

116.61

122.14

25_—

120.02

■

121.04

201.9

279.3

Cottonseed Oil—

,

Exchange Closed

122.20

Nov. 10,

201.9

Foods

120.02

122.17

4

Ago

Ago

1946

Fats and Oils

Ii6'i$

119.20

Year

Month
Oct. 12,
1946

Nov.

Nov. 9,

Closed

121.25

7

,

Group

Total Index

117.60 ? 120.02

8----

Oct.

Bears to the

1946

R. R.

j

110.34

.

Latest Preceding
Week
Week

Each GfoUp

Baa

A

U9i0 ,116,22

121.25

Stock

1!

•

rate*

12_«___W„*: ''122.24

■

1935—1939=100*

(Based on Average-Yields>
Avge
Corpo¬
Corporate by Ratings*

U.S.

•

exploitation of' the
by the mere crea¬

by

sensational

An effort by -either the

,

■

1946—•

vantage

tion of controversy.

252.1

1946

High,

•••;.

Low,

♦Holiday.

Dec.
Oct.

Jan.

27——

15——
2—
■.

v/'V:!';:;.-';'''

371.6
264.7

KiZ^&zsimuasat

—site: v.i'"ram

THE COMMERCIAL & FINANCIAL

Weekly Goal and Coke Production Statistics
Production of

: •;

bituminous

coal

during the week ended Nov. 2,
1946, was estimated by the United States Bureau of Mines at 12,400.0G0 net tons, compared with 12,500,000 tons in the preceding
week and with 12,489,000 tons in the
corresponding week of 1945.
Cumulative production during the calendar year through Nov. 2,
1946, totaled some 451,311,000 tons, which was a decrease of 6.8%
below the 484,277,000 tons mined in the comparable
portion of 1945.
Preliminary estimates of soft coal production during the month
of October, 1946, show 56,000,000 net tons, compared with 39,192,000
tons produced during
October, 1945, when a widespread strike oc¬
curred in the soft coal fields.

"f;-7 Celebration of Mitchell Day and a religious holiday in the an¬
of Pennsylvania cut production for the week ended
Nov. 2, 1946 to 848,000 tons, compared with an
output of 1,296,000
thracite fields
tons in the

preceding week and with 854,000 tons in the week ended
Cumulative production of hard coal in the calendar
through Nov. 2, 1946 was approximated at 50,781,000 tons, which
was an increase of 8.5%
above the 46,792,000 tons produced in the
comparable period in 1945.
;
The Bureau also reported that the estimated production of bee¬
Nov.

3, 1945.

year

hive

coke

in

the

United

States

for the

week

Washington advices. The higher
prices for tin/when it * comes, is
expected materially to reduce
5
The
supply situation remains subsidy losses. However, consum¬
tight, with producers holding to ers: are obtaining November tin
-

.

the view that relief' will not come
until controls are removed. Sales
of lead last week totaled
3,827
tons.

the basis of 52c.

on

pound.

a

RFC has raised the export price
of Grade A tin to the basis of

69V2C. a pound, ex dock or store,
December distribution of for¬
New York, effective Nov. 1. The
eign and "kitty" lead will be dis¬
premiums allowed on small lots
cussed at a meeting in
Washing¬ remain
unchanged.
ton on Nov. 22.
Stocks of lead at smelters

The

and

supply situation in tin is

such

that allocation of the metal
plants
in
the
United
by CPA is expected to continue
States on dct. 1, 1946, and
Sept.
1, 1946, in tons according to the for some time.
American Bureau of Metal Sta¬
Straits quality tin for shipment,
in cents per
tistics:
V
pound, was nominally

refining

matte, and in

Oct. 1

smelters

118,037

117,915

at

process

In base bullion:
At

Nov.

pig

7,7

'

■

■

Week Ended

■,

.

Nov.

-

Bituminous coal and lignite-—
Total,

including mine fuel__

Daily

average

—Jan. 1 to Date—

•• -

♦Oct. 26,

Nov. 3,

1946

1945

12,400,000

12,500,000

2,067,000

•Revised.

•i

2, '

1946

2,083,000

f Nov. 2,

Nov. 3,

12,489,000 451,311,000 484,277,000

1,871,000

1,758,000

2,082,000

"

tSubject to current adjustment.

•'

ESTIMATED PRODUCTION OF PENNSYLVANIA ANTHRACITE AND COKE

•

(In Net Tons)
-Week Ended

$Nov. 2,
Penn Anthracite—

1946

§Oct. 26,

,

Nov. 3,

1.946

<

,/

♦Total incl. coll. fuel

848,000

1,296,000

tCommercial produc.

815,000

-Calendar Year to Date-

•

1,243,000

.

1946:

,

50,781,000

821,000

48,823,000

6,

43,718,000
41,532,000

185,813

States

115.100; 7 112,600

76,000.

4,536,800

3,577,000

'Includes

washery and dredge coal and coal shipped by truck
..tExcludes colliery fuel.
^Subject to revision.
§ Revised,

operations.

2,903,500
authorized

from
;

.

...

and State sources

or

of final

annual returns from

the

operators.)
Week Ended

State-

:

Alabama—
Alaska

Oct. 26,
1946

391,000
'

•

:

__

Georgia and North Carolina.^.
.

Illinois..

7 1,157,000

Kentucky—Western
Maryland.
Michigan
Montana
New

512,000

(bituminous and lignite)
Dakota

..

116,000

1,174,000

'

,

(bituminous)

(bituminous and lignite)

40,000

1,000 "k

*7"

82,000

'7>

7

4,000

>

25,000
•7

'91,000
•

30,000

84,000

'

70,000

|

846,000
60,000
3,090,000
142,000
7
2,000

Tennessee

823,000 77
67,000
2,968,000

746,000
58,000

•

2,834,000

137,000
•

..

.

,,,

135,000

Virginia
Washington

'

.

,

■

y,

"Of the total amount ldaned ih

52.000

September this year, , $18,790,48$

52.000

62.000

52.000

99%

r

or

tin, was

un¬

51.125c.

at

and

f/;

377,000
19,000

.

,

-:

814,000

7

2,318,000

;

77

<7

;

lignite.

12,500,000

'

29,000
2,112,000
1,138,000

f

958,000

194,000

•77.77 '77'

'

214,000
1,000

:

12,510,000

12,215,000

'*■

wfVAttuimia VIA*

Jv

on

the B.

& O.

Panhandle

Oregon.

in

District

VUC 11«

Hi

VV«,

v>

W

V»)

VII gUUftli

,

I\.

Kanawha, Mason and Clay counties.
fRest
and Grant, Mineral and Tucker counties.

06

of

IVl,,

D«

State,

§Includes

0£

U,,

OiilU

including
Arizona

the
and

*Less .than 1.000 tons.

'"E. & M. J. Metal and Mineral

7, states: "The Republican

Markets," in its issue

of

,

Washington advices indicate.

Dur¬

last week

The

was

have

per

di¬

of

the

market

has

Effective

Nov.. 1, the
wholesale lots be¬

re¬

$72.

raised

Business

placed last week
spot metal at $.90 per flask, a

bids

decline

of $3 compared with a
previous. Continued price
uncertainty. in reference to for¬
eign metal caused most buyers to
limit their purchases to small lots.
Consumption. of quicksilver in
this country has been increasing

the

re¬

to

pressure

to

sell

has

been

comparatively light.
London reports that the British

$54

authorities are about to lower the
price to £ 25 per flask. The cur¬

ton.
Iron

Ore

rent quotation in the British mar¬

OPA has decontrolled iron ore
shipped on or after Jan. 1, 1947.

ket is

£30.

Aluminum

•.

that

With demand for aluminum ab¬

sorbing
Civilian

and

a

because

con¬

of

its

the basis of 90.5c., the action

on

taken

by OPA had

the

on

the

market.

market

influence

no

The

position of

unchanged

was

with

week,

last

foreign. market

Now

at

90 %c.

throughout the

expected for week. London continued
according to changed at 55V2d.

14.150

17.425

1

2-w—^— 14.150

un¬

4

14.150

0,-*;

14.150

Holiday1

New York
.

52.000

•;

9.25

.7 7

52.000

17.425

8.10

9.25

8.25

8.10

9.2D

8.25777117?

8.10

9.25

-Holiday
52.000

8.25

,

flask."
went

The

on

publication -further
to say, in part as follows:

'

*, ;>
The

-

Copper

British

has purchased

over

the

remainder

of

the

year.

The strike at Braden
Copper, in
Chile, has not yet been settled.:77

consumers'

As

delivery

charges

with

vary

Lead

\

\

: 7

large tonnage of
A strong case for decontrol of
Canadian copper for delivery over lead was
presented by spokesmen
the first half of 1947. The
for the industry to OPA officials
tonnage
has not been fixed,
owing to some on Oct. 31, but members of the
uncertainty on the quantity of advisory committee were
given no

Canadian metal that will be avail¬
able,
but
the
settlement
basis

thority intend to alter their stand.

agreed upon is 17y2c.,f.a.s. Cana-;

The

encouragement that
next

move,

it

those in

-

was

au-|

felt

in

the

destination,
...

equivalent, Atlantic seaboard.
On f.a.s. transactions
lighterage, etc., to arrive at the f.o.b. refinery quotation,
Quotations

For

standard

for

cakes

up,

depending

0.225c.

an

extra

dimensions

mand
not

a

less

delivered

premium
than

month.- •":

•

•

lc.
-

.

of

lc., per

over
-

in

.

the

...

is

charged;

for

0.075c.,

As¬
from

For all of last year
38,025.0t)0. Earlier

was

28,425,000

were

26,219,000 in
in 1941.

man*,

the

reported

1927

and

In' "1937?
23,048,000

The uumber7 of

strike^

and lockouts for the

three-quarter
period totaled 3,575, as compared
with 3,784 for all of 1945.
The,
Associated Press also said:
"The

reason for the big
jump
man-days lost,: officials said^

the

walkouts generally were
spontaneous and quickly

war

small,

settled."

Securities Exchange Act
The adoption of

East

&

over

J."

M.

777

and. Middle .West

•

the

current

average

;7 ,.7:

•

for

amendment

by the Securities and Exchange
which

had

the

fol-s
''

"Among other things, paragraph

of the rule permits

(a)

change,
tain

facts to

from

_.;7;^7.-.-;,77;7;7
and

slabs

Ingot

0.175c.

Contract

tion

an

ex-*

certification of

upon

cer¬

the

securities

'retired/

Commission, to

listing and registra¬
which

have

Paragraphi

bars

anfy

up,

prices

been

(a);t'is

amended by the addition of a new

sentence

if

which: makes

cleai*

that securities shall be deemed'to

be retired within ' the

meaning/of
pertain^

the rule where all rights

ing to

such

securities

Such

extinguished.

ari

have

evCnt

occur,

of

for example, where

a

been

nia^
plaEj

reorganization under the Bank¬

ruptcy

Act

for

Holding

or

the Public' Utility

makes

Company

no

security, provided
received

has

proval

or

Act

provision for
that

whatever

of
a

.1935

junior

the

plai*

final

ap¬

confirmationr may

be

In

nearly all instances com¬
market .for Prime Western but

Prime

'\7

-Quotations for lead reflect prices obtained for

an

to paragraph (a) of Rule X-42D24
2 under the Securities
Exchange
Act of 1934 was announced on Oct,

foi

weight:1 and dimension; for billets an extra 0.95c.,,
quality. Cathodes in standard- sizes are soid at tr

pound
...

pound

deduct

wirebars

of

ordinary Prime Western brands.

the

"E.

per

ordinary forms

we

.

on

and

discount of 0.125c per
pound.;
Quotations for zinc are for

High-grade zinc

the

0.075c.

depending

up,

on

for

copper, are

ingots

•for

Washington.

of

the

are net prices at refineries on
the Atlantic seaboard.... Delivered
prices in New England average 0.225c.
per pound above the refinery basis.
V
>Effective March 14, the export quotation for copper reflects
prices obtaining In
the open market and is based on sales in the
foreign market reduced to the f.o.b

a




plants.

figures shown above

refinery

Ministry of Supply

because

disputes,

Press

the total

remove

.

decline

98,225,000 7 man-da^a

lost

sociated

St. Louis

8.10

7;7:'V'8.25";'7777

52.000

'17.425 7

7

St. Louis

: 8.25

Average
14.150
17.425
ing the last week, decontrol orders unchanged
52.000 '
at. 17y2c., f.a.s.
New
by OPA came through at a fast York
equivalent,
with
buyers
Average prices for calendar week ended Nov. 2, are: Domestic
rate, but major non-ferrous met¬ again
willing to pay a premium copper f.o.b.
refinery, 14.150c; export copper f.o.b. refinery, 17,425c.;
als were not disturbed. Silver and on
nearby metal*
;
Straits tin, 52.0000/New* York lead, 8.25ue;: St. Louis
iron ore were
lead, 8.1000/St.
among the items
Conditions in the domestic cop¬ Louis
zinc, 9.2500; and silver, 90.1250.
,
freed by OPA. In reference
to per market have not
altered. Fab¬
The above quotations are "E. & M. j. ill & M. M's"
prices,
appraisal of the major United
foreign
copper
became ricators are
asking for more metal States markets, based on sales reported by; producers and agencies.
They are reduced
firmly established at 17y2c., f.a.s, than is
readily available, with to the basis of cash, New York or St. Louis, as noted. All prices are In cents per pound.
basis; refined platinum was firmer, wire and cable makers
Copper, lead and zinc quotations are based on sales for both prompt and future
particu¬
deliveries; tin quotations are for promot delivery only..
advancing to $70 an ounce troy; larly active. The
,v
Government's
jm
the frade, domestic copper prices are quoted on a delivered basis: that
Is,
and quicksilver declined
$3 per stockpile is
delivered at

to

record

Zinc

firm but;
generally

expected

previous

lowing to say:

-Lead-

52.000

17.425

•'

that

been

agement-labor

8

<"E. & M, J." QUOTATIONS)

Straits Tin,
New York

17.425

vov.

Nov.

had

Commission
OF METALS

Nov.

Now

stated

chase at current prices.. The New

York Official quotation was main¬

-Electrolytic Copper—
Dom. Refy.
Exp. Refy.
14.150
%17.425 7

—

the

was

From
January, through
September of this year the report

obtaining

consumers

are

DAILY PRICES

Oct. 31

working time during all of 1945,

which
year.

all of the metal they care to pur¬

tained

tin-plate,

than three times the similar loss
in

is that postwar strikes have been
bitter and for keeps, hence ex-*
tended for longer periods. During

housing program.

Price increases

the United
States due to strikes in the first
months of 1946 was more

Administra¬

Production

considering

ing that idleness in
nine

in

proposal for
Government purchases of
ingots
from Canadian sources.
Require¬
ments for next year will be
huge,
according to industry estimates,
particularly if the metal is to be
Used extensively in the Govern¬

tin

price

in¬ readiness to sell
unpledged silver
domestic .production, the

creased

tion is

Treasury virtually

the

The Bureau of Labor
Statistic^
Oct. 31 released figures show-t

on

greatly

already

an

the

trols

BLS Reports Strike

peaks

Alloy steel, comprising about 8%
Silver
of the total sales of
steel, also has
OPA included silver in its de¬
been
decontrolled, effective on control order that
became effect¬
the same day.
ive on Nov, I, In view of the fact

h

September."

was

week

and

their

ernization and all other purposes.
"Loans to veterans of World

Manpower Losses

Quicksilver

7

7

Metals

market

homes;

established at $70 an ounce,
advance of $1. However, on

an

electrolytic zinc
ore

of

1,707 loans amounting to more,
than 45% of the total loaned in

in

convert

purchase

War II amounted to $10,737,378 on

Nov.

the end of most wartime
controls, operators in non-ferrous metals
believe. After OPA
finally passes out of existence, the Commerce
Department is expected to take over
any controls that cannot be
discarded
quickly, and the Department of Interior may continue op¬
eration - of
the
Premium
Price
Plan in the
tapering-off
dian

ports.

platinum

sources

sales to consumers the market

Wash.
obtain the

to

an

Tri-State

sweep at the Nov. 5 election will hasten

period,

refined

mained unchanged at

zinc

Tin

and Zinc Active—Platinum Situation Firmer

of

"outside"

the

came

functioning last week when

ment's

Non-Ferrous Metals—Gall for Copper, Lead
^

intends

smelters

387,000

212,000

.7,,77; ,;
States-i

The
sumed

Platinum 77:

quotation for

castings

&

for

$2,434,333 was for the construction
of new homes, $1,077,198 for re¬
financing of existing loans, and
$1,495,579 was for repairs, mod¬

undertone

refinery. '

118,000

2,262,000

'

Total bituminous

77 135,000

.

22,000

■

tWest Virginia—Southern
tWest Virginia—Northern

Wyoming
{Other Western

1,000

133,000

,

1,000

381,000

Utah

it

450,000

38,000
-

90,000

(lignite)

plant

953,000

392,000

Mines

company

property into

loans

6

steadied.

excellent.,

the

$23,797,593
2,865

minished, with the result that the

Co. has entered a bid of
$2,000,000
for the Government-owned alum¬
inum
plant
in
Should

of

with

League of Associations added:

from

zinc

in

die

and

Orielle

total volume

52.000

52.000

---Holiday—»

Offerings

•

7 86,000

Oklahoma

57,000

'

114,000

29,000

and South

Pennsylvania

27,000

1,000

Ohio

Texas

597,000

394,0007..
37,000
_

Mexico

North

1,519,000

7

Pend

compared

5

with demand for the
grades used

1,000

1,428,000

^

25,000
ff 119,000

Kentucky—Eastern—,™

173,000

7:7.7;

1,000

Missourijc—.

6,000
34,000

»

151,000

555,000
and

^

35,000

1,448,000

Iowa

Kansas

42,000
154,000

7

386,000

7,000 c

-

„

Indiana

1945

of

situation

galvanizing

a

52.000

52.000

unchanged last week,

described: as

York

52,000

52.000

§y:|u7.;%7\,.

Tacoma,

Oct. 27,

!

358,000

,7>7

7,000

—_

Arkansas

Colorado

Oct. 19,

,71946

about

was

in

ESTIMATED WEEKLY PRODUCTION OP BITUMINOUS COAL AND LIGNITE,
.
I
'
V1
•
BY STATES, IN NET TONS
(The current weekly estimates are based on railroad cascadings and river shipments and are subject to revision on receipt of
monthly tonnage reports from district
V

pound

per

market

New

52.000

7

Oct. 31.

The

total

"7Ziucf

lc.

for

was

contained in these items, effective

Beehive Coke—

Uited

of

the

162.000

1

changed

Producers of primary and sec¬
ondary zinc base alloys, zinc an¬
odes, zinc dust, wire, and battery
cans were
permitted by OPA to
raise their ceiling prices to the
extent

1937

•

.

854,000

.

Nov.

Nov, 3,
1945
46,792,000
44,991,000

Nov. 2,

1945

of

of Savings and Loan
Associations.
During this month
these institutions made 4,750 loans

52.000

52,000

Chinese,

7,589

191,743

Total stocks

v

Vice-President
State League

52.000

26,686

10,077

.

:

made by these,
during
the
same.
month last year, according to fig¬
ures
recently7 made public by
Zebulon V. Woodard, Executive

2—

15,392

30,867

lead

1945

1946

loans

over

Nov.

3,749

refin¬

lead

Antimonial

130%

Associations

Nov.

44,482

eries ____—16,320
Refined

New

during the month of Sep¬
tember, 1946 were approximately).

4 *4

31

NOV.

12,867

:

In process at

of

York

Nov.

smelters and re¬

—

Jan.

and loan

State

amounting to $10,667,054 made in
September,
1945.
The
State's?

Oct.

transit to refin¬
eries

Dec.

the

Nov.

7:77

fineries
In

follows:

as

Sept. 1

Loans made by savings

-

associations in

as

..

In ore,

Savings & Loan A$$ns.

p

.

J

1
•

Loans by N. Y. Slate

.

2, 1946,
showed an increase of 2,500 tons when compared with the
output for
the week ended Oct. 26, 1946; and it was
39,100 tons more than for
the corresponding week of 1945.
ESTIMATED UNITED STATES PRODUCTION OP BITUMINOUS COAL AND LIGNITE
7 :7
(In Net Tons)

Thursday, November 14, 1946

market circles, would have to take
the^form of an appeal for action
to the Decontrol Board.
7

ended Nov.

,

CHRONICLE

Western
;

common

for

7--:7..'-.7'.:
lead

only.

•

the

necessary,

previous

peal

7

that

.

that all applicable ap4

periods

have

expired,

and

"7...
^

,

no

appeals

are

pending "7

Volume

Number 4542

164

THE COMMERCIAL & FINANCIAL CHRONICLE

Daily Average Crude Oil Production for Week
j
Ended Nov. 2,1946, Increased 28,?50 Bbls.
•(;

;

age gross crude oil

4,758,550'barrels,
ceding week and

the

production for the week ended Nov. 2, 1946, was
increase of 2(5,750 barrels per day over the pre¬
gain of 440,200 barrels

a

by the United States Bureau of Mines
month of

aver¬

October, 1946,

4,771,000 barrels.

was

whole

a

to stills

ran

The

Bureau of Mines basis approxi¬

a

of the total transactions

2,695,231 shares,

\t& On
week

ended

total volume

ended

Oct.

distillate fuel, and 7,434,000 barrels of residual fuel oil during the

shares

was

week ended Nov. 2, 1946; and had in storage at the end of

Total

the week

Oct. : 19
on

amounted

OIL

PRODUCTION

State

(FIGURES

Sales

on

Change

4 Weeks

Calculated

Ended

from

Ended

Nov.

Oct. 1

Previous

2,

York-Penna

•♦New

48,200

54,350

Virginia—

8,400

7\850

7,GOO

5,900

Nov. 3,

.

1945
•;

52,000

~250

8~300

7,600

+

250

5,750

Indiana

+

200

2,450

3,300

13,650
205,700

19,000

+

350

18,750

212,200

+

7,950

30,000

30,150

+

100

47,000

Kentucky
Michigan

18,950

214,000

Illinois

48,850

4

2,950

207,500
30,300
47,700
750

274,450

270,000

t279,100

384,000

—

Texas—

t750

264,000

—

353,625

t362,450

—

6,600

t

144,800

449,300

214,300

i

-

District V

39,800

'

ple.

District VII-B

33,500

362,800

129,700

agement, labor
which will:
1. avoid

est

^Aotai:Sexasi-i^

11.62,

the floor—

on

394,950

2,450
;

.

;
:

Arkansas

77,000
60,000

—

Mississippi

436,000'

—•—

Alabama

396,400

80,284

+

73,500

+

1,000

300

73,450

1,300

75.850

53,850

50

106,000

100,000

1,050

the New York Curb Exchange and
Members* (Shares) *

on

Sales:,

OCT.

19,

1946
1

99,100

100,000

450

,v-U

93,800

New Mexico-r-Other

Wyoming

-

109,600

200

109,500

800

24,150
38,150

Short sales

24,000

Colorado

——

23,350

32,000

—

850,000

—

4,500

872,500

+28,750

4,739,600

4,318,350

+

+

....

—

4,771,000

4,758,550

190,650

214,405

2. Other transactions initiated

Total
■

on

68,100

:

3,750

+

66,050

63,000

-;

•These

Bureau of Mines calculations of the requirements of

are

domestic crude oil

Total sales.,

„

from crude

oil inventories must be

deducted from

the Bureau's

estimated requirements

2,850
61,100

.

...

to ,determine the amount of new crude to be produced.

tOklahoma, Kansas, Nebraska figures

ended 7:00

are for week

a.m., Oct.

The
3.61

63,950

6

4. Total-

tThis

is

and

which

fields

several

shutdowns
for

the net basic allowable as

shutdowns

Includes

were

Oct,

for

exempted

were

of

the
entirely

exemptions

ordered for from 7 to

calculated

1

entire
and

10 days,

on

month.

of

31-day basis and
the exception of

a

With

certain

fields

other

the entire State

for

Total purchases.
Short sales—.

which

jV

TO

/

.

STILLS;

PRODUCTION

OF

GASOLINE;

STOCKS OF

i946

AND RESIDUAL FUEL OIL, WEEK ENDED NOV. 2,

(Figures in thousands of
Figures in
estimate

barreis

of 42 gallons each)

this section include

of

unreported amounts and

Crude Runs

Refin'g
Capac.

Report'g

District—

Cast

99.5

Coast

Product'n

to Stills
Daily % OpAv. erated

are

at Ref.

tStocks

Unfln.

Inc. Nat.

of

Gasoline

Blended

Stocks

1,804:

84.3

707

and

tin
therefore

of

& Dist.

.i

76.3

103

72.0

District No. 2

84.7

60

96.8

Did., 111., Ky
Okla., Kans., Mo.

87.4

828

95.2

78.3

376

80.2

Inland

308

•

Oil

.

636

i

813

73

147

8,901

1,412

8,742

1,382

3,374

5,714
1,357

59.8

223

67.6

930

2,982

485

637

89.2

1,189

97.0

3,231

13,144

3,967

337

105.0

867

4,595
1,500

1,695

10,785
3,649

65

170

426

8,150
2,394

480

216

t§

8

122

73.9

California

85.5
85.5

751

75.6

Total U.S.B. of M.
basis Nov. 2, 1946..

85.8

4,769

85.8

14,594

♦85,930

21,510

65,943

61,636

85.8

4,758

85.6

14,863

86,423

21,607

65,499

60,872

inflation and deflation.

46,651

"Methods of stabilizing the con¬
struction industry; ways of bring¬

>, District No. 4—

61.5

•

77

24
371;

1,371
15,636

2,252

,

720

35

39

15
204

r

•

\544

675

12,047+

29,202

basis Oct. 26, 1946-

*J. S. B. of M. basis

NOV. 3,
<•<

4,749

•Includes unfinished

^

gasoline

14,963
stocks

gasoline stocks of 8,797,000 barrels.
®nd

in

pipe

lines,

of

in

the

{in addition, there

week ended Nov.

ibarrels and 7,728,000

2, 1946,

8,456,000

12,469

barrels,

45,720

tlncludes

unfinished

tStocks at refineries, at bulk
terminals, in transit
were

.$,731,000 barrels of gas oil and distillate fuel
■oil

177,417

which

produced

1,948,000

barrels

of

kerosine,

oil and 7,434,000 barrels of residual

compares

with

fuel

2,055,000 barrels, 5,710,000

barrels, respectively, in the precedir.," week and 1,636,000 barrels,

4,792,000 barrels and 9,183,000 barrels, respectively, in the week ended Nov. 3, 1945.




sales

reason

is

that

i

.

.'

v

.

ing about

a

steady flow of invest¬

ment in business and
tions businessmen

industry;

can

ac¬

take in the

management of their business af¬
fairs to help keep employment
high and productivity increasing.
'

"Federal tax policies to encour¬

ter

increasing

industrial

proper

and

reports

planned.

studies

and

economists

are

Eventually,

'•

*

-

•-

•/

\'<-*«.

•

1

i

ODDi-

THE

FOR

ON

Odd-Lot Sales by Dealers—
(Customers' purchases)
Number of orders,-,
-

Number

of

shares,,,

'Dollar value

$

THE* N. ;iY.

STOCK EXCHANGE

Week Ended Oct. 26,
-

...,

?»

1946

Tptsii;;

/ » j;

*24,^8
'i

!

,———

684,419

$27,640, 49?

Odd-lot Purchases by Dealers—%
;
(Customers' sales)
">; Number of Orders:
Customers'
•Customers'

,

.

short

"

-

sales—™

*;

other sales—-

Customers'

total

19,024

i9,218

sales—,*.•<

Number of Shares:

.

a" x.. Customers' short sales—-'«Customers' other sales,,,*
Customers'

total

Number

Sales

by

' 7,847
562,530

.

570,31*1
$21,895,529

sales

value

Dollar

Round-Lot

194

Dealers—

of Shares:

Short sales

;

———

0

/Ti

146,600

tOther sales
Total sales

-

-146,600

Round-Lot Purchases by Dealers— r w '
t ■
Number of shares
-v* 273,690
—

said, some 15

research

by

account

wage-

price relationships to raise living
standards and stimulate produc¬
In all Mr. Yntema

.'V

TRANSACTIONS
SPECIALISTS

AND

.

tion and employment."

individual

odd-lot

LOT ACCOUNT OF ODD-LOT DEALERS

;

productivity

peace;

vV:

y-!.'

STOCK'

the Commission's

"Ways of encouraging the devel¬ age production and employment;
of small business; fiscal practices and policies in laborand monetary policy to combat
management relationships to fos¬
■

1945

and

opment

Total U. S. B. of M.
,

purchases

Exchange for the

Research
Director T. O. Yntema stated
recently at a meeting of editors and
publishers of the midwestern business press. Mr. Yntema outlined
the future research studies planned by the CED,
dealing with such
subjects as the following: ^ ;
■''
■''■.y

19.0

for

filed with the Commission by the
dealers and specialists. •

ductivity in the United States is the ultimate
program of the Committee for Economic
Development,

70.9

of complete figures

summary

odd-lot

pro¬
goal of the research

826
.

,

ftocky Mountain—
District No. 3

members'
the

Achieving and maintaining high employment and increasing

'

51.6

of
on

High Employment and Increasing Productivity
Goal of Research Program of CED

265

2,706

97.4

55.9

total

„

379

14,965

Louisiana Gulf Coast.
No. La. & Arkansas—

the

tRound-lot short sales which are exempted frcm restriction
by
rules are included with "other sales.";
§Sales marked "short exempt"' are included with "other sales."

.12,423

203

Texas Gulf Coast

Texas

percentages

a

•;f*'s-VvA

Oil

3,022

>

their

Fuel

/

24,704

488

2,467

these

compared with twice the total round-lot volume
the Exchange volume includes only» sales.- ; •

Appalachian—
District No. 1

100,638

—

Resid.

Fuel

sine

9,349

a

Gas Oil

Kero.

19,638

on

tStks. of tStks.

calculating

Exchange

a series of
current figures being
published by the Commi ssion. - The
figures are based upon ^reports

79,164

„

an

and

.

New York Stock Exchange, for the
week ended Oct. 26, continuing

79,164

...

Totalsales—

_

16.11

308,360

•The term "members" includes all regular and
associated-Exchange members,
firms and their partners, Including special partners.

reported totals plus,

-Bureau of Mines basis
§Gasoline JFinish'd

% Dally

;

of

of all odd-lot dealers and special¬
ists who handled odd lots on the

.....Wi'.--..—

Total purchases.

FINISHED

,

.

Total sales

Customers' short sales..

v

Securities

transactions

30,655

{Customers' other sales

AND UNFINISHED GASOLINE, KEROSINE, GAS OIL AND DISTILLATE FUEL

i

.

277,705

C. Odd-Lot Transactions for Account of Specialists—

{Recommendation of Conservation Committee of California Oil Producers.
4CRUDE RUNS

Y

tOther sales.—

<■

ordered shut down

was

days, no definite dates during the month being specified; operators only being
required to shut down as best suits their operating schedules or labor needed to
•perate leases, a total equivalent to 7 days shutdown time during the calendar month.

regi¬

a

means

showing the daily volume of stock

300,285

7

of

a

Commission made public on Nov.

Total sales.

31, 1946.

as

NYSE Odd-Lot Trading

72,590

»r—

+.

tOther sales

->

economy

1.50

.30,005

;

——

labor-man¬

-;;4*

3. Other transactions initiated off the floor-

Total purchases.:
Short sales...—...—

in

dips that

25,955
■

<after deductions of condensate and natural gas derivatives) based upon certain
premises outlined in its detailed forecast for the month of October.
As requirements
anay be supplied either from stocks or from new production, contemplated withdrawals

concerned

nomic progress without the sharp
we have had in; the past"

4,050

tOther sales..-^—
r

all

same

26,435

■

of

ocratic free enterprise and at. the
time bring continuous eco¬

11.00

the floor—

purchases^,—

Short RftlesJ—

••Pennsylvania Grade (included above)..

members

getting high production and .em¬
ployment.
We are seeking n for
policies that will strengthen dem*

23,755

■

Total United States

'

businessmen

mented

.

*

of
report

group

research

search rejects the idea

.

,

Total sales

19,500
20,750
839,500

38,750
869,600

§842,500

■

,

tOther sales

'

Montana

California

,

advisory

The

In concluding his summary'" of
the future research program, Mr.
Yntema pointed out that "CED re¬

\„

■

—

——

96,350

200

+

...

an

con¬

panel of business¬

'

.

*
1,888,810
Dw'
*
1. Transactions of specialists in stocks in which
they are registered—!■
•
•
«
•;
t: " i
Total purchases—
201,260
/-4
,

400

:

34,465
! 1,854,345

a

sulting groups of businessmen and
economists.
'
-C'-;'-

Total for Week

.♦

B. Round-Lot Transactions for Account of Members:

150

99,100
450

New Mex.-So. East-i

—

V.

agement relations on the basis of
the facts presented in the B):pwnMyers report and with the aid of
suggestions -offered by the con¬

for Account of

Total sales—

75,050

+

77,250

2,000

2,450

for

1,649,840

tOthersales——

383.000,..

Douglass

the Research and
Policy Gommittee will 'develop recommendations

1,263,030

Short sales—a-.:..

•

dis¬

with the standard CED
prac¬

The

3.70

386,810

WEEK ENDED
A. Total Round-Lot

73,450

interests of

tice.

1,323,060
a,

and

ance

411,180

Transactions

V-:: !

*vTotal Louisiana-

the

as

will present the
findings and con¬
clusions of the authors in accord¬

330,060

.362,150

+

/:'-•••

being settled; and

Profs.

economists.

2.11

219,410

....

Total Round-Lot Stock Sales

288,700

90,800

305,600

•

management-labor

are

well

as

men

219,920

Total sales.

89,350
305,600

North Louisiana—

while

sultation with

81,120
a..

1,790,000

Coastal Louisiana...

••

They Will have the benefit of

180,970,

...

tOther sales

84,950

government

sachusetts Institute of Technology.

38,950

Total purchases
Short sales

2,046,350

and

interruptions to produc¬

dertaken -by

1,018,740

———,

Total sales

2,046,350

2,120,000 t2,064,032

,

ap¬

The original research arid
prep¬
aration of a report has been un¬

752,000

4. Total—

84,950

recently

Brown and Charles
Myers of Mas¬
......

Short sales—

129,700

District

labor-managfe-

the vimmediate parties' to
putes."
*•

139,900

tOther sales..

27,450
484,650

V District IX

the

2. lead to terms of settlement
that
serve the general
public inter¬

.

266,740

I

Total sales

33,500

27,450
484,650

VIII

the

atements

s

proved by the CED trustees, Mr.
Yntema stated that its aim is "to
find a pattern of policies for man¬

disputes

963,750

>

——,-r-w

3. Other transactions initiated off the floorTotal purchases

102,450

District VII-CL*~
District

of

Committee

••

Concerning

ment relations study

,'

pother fiftiesvr:r— ^;^.-rri4n.irfT,y;

•

316,000

102,450

VI—.

Policy

bility and higher living standards
an
increasing number of peo¬

tion

495,700
8,036,460

Total purchases
Short sales

39,800

316,000

,

Dist.

and

for

Total for Week

,,

—,

^

2. Other transactions initiated

214,300

Other

i

Director, the businessmen
Research

449,300

f East Texas

.

—

.....

Total sales—...—

19,450
144,800

District IV

V

194&

19,

Short sales—

29,500
46,100

356,150

19,450

District

-

the

Exchange and Round-lot Stock
(Shares)
'

...

•f District I
P District II

t

ENDED OCT.

tOther sales

241,850

800

Nebraska

Kansas

pro¬

Making use of the findings of
the economists, said the Research

800

1~250

—

Oklahoma

of

4,850

2,650

Ohio—Other——..

high

Members*

**

—

they are registered—
Total purchases

,

50,550

3,750

+

—

of

increasing

;

(>•< 150

•♦Ohio—Southeast

of

Except for the Odd-Lot Accounts of Odd-Lot
Dealers and Specialists:
,
1. Transactions of specialists in stocks In which

Ended

Florida
••West

16.11%

or

Total
sales.———8,532,160
S. Round-Lot Transactions for Account of
Members,
:

Week

Nov. 2,
!* 1946

Week

1946

the - New York Stock

for Account

WEEK

V

Short sales

Actual Production

Week

ables

Begin.

shares

BARRELS)

IN

Allow¬

October

608,645

During the week
trading for the account of Curb members of 584,390
14.44% of the total trading of 2,024,035 shares.

A. Total Round-Lot Sales:

,,

♦B. of M.

Requirements

to

that Exchange of 1,888,810 shares.

tOthersales—
CRUDE

the

on

Transactions

rels of kerosene; 65,943,000 barrels of distillate fuel, and 61,636,000

AVERAGE

19, continuing
by the Commis¬

Exchange of 8,532,160 shares.
This
during the week ended Oct. 12 of
15.54% of the total trading of 8,676,030 shares.

or

Round-lot Stock
-

DAILY

all

12

$5,930,000 barrels of finished and unfinished gasoline; 21,510,000 bar¬

'

of

the New York Curb Exchange, member trading during the

barrels of

'

account

with member trading

barrels of gasoline;' 1,948,000 barrels of kerosene; 5,371,000

-

the

problem

and

ductivity.

making specific recommendations
for public and business
policies
designed to promote economic sta¬

mately 4,769,000 barrels of crude oil daily and produced 14,594,000

barrels of residual fuel oil.

for

central

will develop and issue

compares

on

transactions

the

on

employment

Trading on the Stock Exchange for the account of members
(except odd-lot dealers) during the week ended Oct. 19 (in roundlot transactions) totaled
2,972,900 shares, which amount was 17.43%

Reports received from refining companies indicate that the in¬
as

stock

separately from other sales in these

Institute's statement further adds:

dustry

round-lot

report will be issued bringing the
findings of all the studies to bear

figures.

Daily production for

the four weeks ended Nov. 2, 1946, averaged 4,739,600 barrels.

of

series of current figures being published
weekly
sion.
Short sales are shown

estimated

as

volume

Exchange and the New York Curb Exchange and

a

the requirement for the

as

York Stock

members of these exchanges in the week ended Oct.

the cor¬

day over

per

|jl

The Securities and Exchange Commission made public on Nov.
figures showing the volume of total round-lot stock sales on the

6

an;

responding week of last y.ear. The daily average figure,

New York Exchanges

on

M

New

The American Petroleum Institute estimates that the daily

i

Trading

2533

a summary

♦Sales

marked

"short

exempt"

are

re¬

ported with "other sales."
tSales to offset customers' odd-lot orders
and sales to
is less
"nfViAl*

liquidate a long position which
are reported who

than a round lot
"

*•

:

2534

THE COMMERCIAL & FINANCIAL CHRONICLE

ConsimcfiM Totals

products, y Bread , quotations generally remain un¬
Canners' prices for canned salmon frqm 4-he nJcw pack

bakery

some

Civil Engineering

Thursday, November 14,11946

changed.

Prices for

advanced.

Life Ins.

Payments ?
To Sept. Higher

declined while lard and edible
tallow were down, with reports of. increased resistance to high prices.
^
Green coffee quotations declined following-the
advance of the preCivil
Food prices-en the-average were 22.4% above a month i ^vBayments to American policyengineering construction volume in continental United vious week.
holders and beneficiaries by life
States totals $52,958,000 for the four-day week ending Nov. 7, 1946,
earlier and 55.6% above a year ago.
.
insurance companies in the first
St? reported bv. "Engineering News-Recbrd."
This volume is 52%
"Other Commodities^—Average prices of all commodities other
eight months of this year totaled
below the previous week, 16% above the corresponding week of
than farm products and foods rose 0.8% during the week.-; .Quotations
$1,874,135,000, an increase of $81',last year; and 40% below the previous four-week moving average.
for cotton goods and some woqJ^a*4ress goods rose, reflecting highpr
954,00Q over payments in the cor¬
The report issued on Nov. 7 added;
.
<
"
costs of materials.. Barytes and linseed oil, not under OPA control,'
responding period ; of: 1945/ the
Private construction this week, $35,179,000, is 53% below last rose sharply and were largely, responsible for the 2.4% advance in
Institute of Life Insurance re- /
week and 16% above the week last year/ Public construction, $17,the group index for building-anateiials. / Stock mill " work prices
ported on Oct. 30.
The Institute
779,000, is 48% below last week, and 16% greater than the week last moved up to higher ceilings granted earlier.. Prices for inedible iajsays:-•
year.
State and municipal construction, $14,277,000, 53% below hist low more than doubled following decontrol on Oct, 29.
Cottonseed
"The-increase was entirely in
week, is 21% above the 1945 week. Federal construction, $3,502,000,
meal continued to advance but most .other fertilizer materials, still
payments to living policyholders,
is 7% below last week and 1% below the week last year.;
under price control, were unchanged. .-Quotations for
butyl acetate
as
death benefit payments were
and bismuth subnjtrate also were higher. * Soybean oil prices
Total engineering construction for the 45-week period of 1946
dropped
$867,1.21,000 in the eight months,
records a cumulative total of $4,624,576,000, which is 147% above the from the high levels of the previous week. Higher prices followed
down $11,009,000 from last year.
total for a like period of 1945.
On a cumulative basis, private con¬ ceiling adjustments for some furniture and mattresses, and sewmfe
Payments to living policyholders,
machine prices increased.
struction in 1946 totals $2,811,815,000, which is 236% above that for
Contract quotations for newsprint ad¬
including maturing endowments,
vanced to higher ceilings previously
1945.
Public construction, $1,812,761,000, is 76% greater than the
alloy/ed. Prices for tobacco
disability
payments,
annuities,;.,
cumulative total for the corresponding period of 1945, whereas state
products and cattlefeed, exempt ;froirr%PA control, were up."
surrender
valuepayments mad
and municipal construction, $1,250,931,000 to date, is 287% above 1945. •
Inasmuch as the figures for the week" ended Oct. 26 have not
policy dividends, totaled $1,007,Federal construction, $561,830,000, dropped 21% below the 45-week: heretofore been given in these columns
(the last referred to were
014,000 in the eight months, 54%
total of 1945.
those of Oct. 19, in our Oct. 31 issue, page 2277) we note here that for
,
of total payments by the life com¬
Civil engineering construction volume for the current week, last the Oct. 26 week
average primary market prices increased 0.6%,
panies.
This represents an in¬
week, and the 1945; week are: *' ; ■ '•
1
'
chiefly because of higher prices for livestock which had been re¬ crease of
$92,963,000 over the pay¬
Nov. 7, '46
Oct. 31, *46
Nov. 8, 45 moved from OPA control in the
previous week.
As to the figures for ments to
living policyholders dur¬
■;U
(four days) (five days)
(four days)
th^ week ended Oct. 26,- the Bureau also-said: >
,
ing the jsimilar'jperiod of 1945.
\
Total U. S. construction
$52,958,000 $109,385,000 $45,828,000
"There was a sharp break |ri cotton quotations from 20
year
"August payments by the life
Private construe Ion >1*———
; 35,179,000
75,090,000
30,452,000
highs. At 135.9% of the 1926 average/ the.index of commodity prices companies totaled
Public construction j_-+
17,779,000
34,295,000
15,376,000
$216,264,000, an
in primary markets prepared by Ithe Bureau was 306%
higher than increase of $5,558,000" over pay¬
State and municipal---*--•
14,277,000
30,530,000
11,843,000
before temporary, suspension of \ controls at the end of June* and ments in
August last yearj evein
Federal
;
3,502,000
3,765,000
3,533,000 28.6% above late October, 1945."
though the August death benefit
^ In the classified Construction groups, public buildings and UnclasAlso for the week ended
Oc^. 26 the bureau stated:
payments this year of $101,276,000
sified construction gained this week over the previous week. Five
"Farm Products and Foods-^Substantial increases for
livestock, were $3,847,000 under the total for
of the nine classes recorded gains this week over the 1945 week as
which more than offset smaller fdeelines for grains and other farm
August, 1945." ;
•follows: waterworks, sewerage, highways, commercial buildings, and
products, 'raised the group index j for farm; prdouefs 6.2 % iduring; the
public buldings.
<
J ; * < * ,' •
>
week.
Quotations for hogs were up nearly 50 % and steers nearly
New,Capital
Xmas Club Distributions
40%, and calves and cows rose 16%.
Quotations for sheep, live poul¬
*V-' New capital for construction1 purposes this week totals $40,267,The distribution of $635,000,OQO
try and eggs declined, reflecting [reduced demand with record ship¬
000, and is made up of $11,317,000 in state and municipal bond sales ments of hog$ and ateers.
Most grain .quotations w£re lower during to about 8,360,000 Christmas Club
and $28,950,000 in corporate securities. New capital for construction
the week.- Liberal supplies of c<om* and .reduced* demand for feed members will be made by ap¬
purposes for the 45-week period of 1946 totals $2,994,375,800, 74%
resulted in declines for corn, oats and rye.
Wheat quotations were proximately 5,000 banking and
were

corn syrup

$52,958,000 for Week

.

.

,

-

Jt

„

_

.

.

c

-

...

,

.

,

«

,

'

|

.

more

■1945.

than the

$1,723,122,000 reported for the corresponding period of
'

-

/

,
(

>l'

suy

*

■I" Y'1 1'''

u'u,''^r' 1 1

\

\,

.

r

1
,

slightly lower as flour millers, still operating under ceilings,'resisted savings institutions and other or¬
higher grain costs.
Potatoes, onfons and. apples were^lower in price ganizations during National Pros¬
with good supplies, while prices of oranges increased.
Heavy de¬ perity Week, starting Monday,
mand for linseed oil resulted in Ian- increase of nearly 75% In flax¬ Nov. 25, according to an estimate
seed prices following decontrol. : Prices of alfafa also, increased be¬ given out on Nov.6 by Herbert ^
cause of reduced shipments due to the railroad car shortage'.
Farm Rawll, founder and-President of
products were 21,2% above the end; of June }apd 33.2 %,&boy&"-& year Christmas Club; -a- Corporation,

•

i

J r.

'v'

September OiviS Engineering Construction
Totals $373,056,000
:i:.

The

Civil

engineering construction volume in continental United
"Food prices dropped 3.2%/during the week largely because of
States totals $373,056,000 for September, an average of $93,264,000
lower prices of meat, butter and lard as consumers resisted last
for each of the four weeks of the month. This average is 14% below
week's high levels.
Veal and mutton prices were up.
The decline
the average for August, and is 59% above the average of September,
of 6% for butter followed decontrol of other edible oils.
Cheese
1945 according to "Engineering News-Record."
The report made prices continued to advance. There were
sharp increases for a num¬
public on Sept. 28, added in part:
/
ber of other commodities recently removed from
control, including
;
; Private construction for September on a weekly average basis is coffee, oleomargarine and other fats and oils. ' The
group index for
15% below last month, but 37% greater than September, 1945. Public
foods/was 49,8% higher than at tlie end of June.and 60.3% above the
construction is 11% below last month and 113% above last Septem¬
•corresponding week of last year.
CtV:
*
t
ber. State and municipal construction, while 8% below last month,
"Other Commodities—Average prices pf other commodities rose
is 197% above the average for September, 1945. Federal construction,
0.3% during the week.
There were sharp increases for-fertilizer
down 23% from last month is 8% below September, 1945.°
materials, eattle feed and soybean oil recently' removed from OPA
Civil
engineering construction volume for September, 1946, control.
Natural menthal prices were lower.
Uncontrolled prices of
August, 1946 and September, 1945 are:.
India goat skins resumed their advance, sustained by strong world
Sept., 1946 * Aug., 1946
Sept, 1945
demand..
Textile products, increased slightly with higher pricesf of
*(four weeks) (five weeks) (four weeks) gingham and sisal rope.; Higher costs of linseed oil resulting in ceil¬
Total U. S. Construction
$373,056,000
$541,325,000 $235,155,000 ing adjustments, caused small price increases for hard surface floor
/
Private Construction
229,622,000
339,100,000
167,853,000 covering. Prices of natural gasoline increased.
The group index for
/ 143,434,000
Public Construction
202,225,000
67,302,000 all commodities other than farm products and foods was 7.3% higher
$ 118,066,000
State and Municipal
160,991,000
39,702,000 than at the end of June; and ,13.0% above, a year ago."
:■.■•;■ Federal:25,368,000
41,234,000
27,600,000
f

.

fro m

announcement-

Christmas Club said;*

*.

the
,

h

"The total distribution; '-is'l 15.7%
ahead of last year and represents
an all-time high for the 36 years
of Club operation. £ The average
per-member distribution is about
$10(1 iuL large Metropolitan areas
and $76rfor the entire country, as
against * $72; last year^ The* total
number'

individual

of

participating
of

increase
ago.

-

;

members

this year shows an
760,000" over a year
'

•

-'

■

j+

'v

"A recent - cross section surveyindicates

the

funds

estimated

of

■

——

——.

CHANGES IN WHOLESALE PRJCES

New Capital

capital are not available. Due
to the truck strike and resultant paper shortage, sale of State and
municipal bonds and corporate securities have not yet been published
'■

1

•

•

Dropped 0.8% in Week
Ended No*. 2, Labor Department Reports

rise of 0.6% in wholesale prices during the week
primary market prices dropped 0.8% during
the week ended Nov. 2, largely because of lower prices for agricul¬

Following

a

ended Oct. 26, average

tural commodities, said

the Bureau of Labor Statistics, U. S. Depart¬
ment of Agriculture on Nov. 7.
At 134.8% of the 1926 average, the
index on Nov. 2 of commodity prices in primary markets prepared
by the Bureau was 7.8% above a month earlier and 27.3% above
the corresponding week of last year.
,
/>)'"• / ■ a V * k',
The Bureau's further advices regarding prices in the week ended
Nov. 2 follow:.. -

'i
*
10-19

10-5

11-3

10-26

.10-5.

U-3

1946

1946

1946

1945

4946

1946

1945

.*,.134.8

135.9

135.1

125.1

105,9

0.8 .+

7.8-

+27.3

._„_:^__T166.5
165.9

Farm products—

Foods_,

—

17Q.1

160.1'

158.0

129,1

2.1

+

5.4

+29.0

169.9

175.6

135.5

106.6

2.4

+

22.4

+55.6

143.3
126.5

141.5

141.1

119.1

0,.

+

126.3

125.9

IPO.0*"

0.6

+/l.r

0

95.0
materials—94.8
114.4
114.4
Building materials—_ 137.4 ' 134.%
Chemicals and allied products-™, 103.5 /,. 99.5
Housefurnishings goods-———117.3
115.9
Miscellaneous commodities
105.4. 103.7;

Special Groups—
Raw

-

,

.

_,

?.

»

All commodities other

;

thfin farm'

,

OCT. 26,
v

Other

102.5

102.2

0.2

+ 12;2

+

0.2

+

8.7

+

2.5

+

16.2

+/5.0

+

8.4

1.2

+

1,9

+ 10.2

1.6

+

—

4.0

i+

95.5

106.4 +
34.6 +

146.3

+- 3.1

+ 11.4

.

"li8.2

144.5

•

117.5

128.5

116.9

133.7

118.1

~

+ 27.7;

96.7.

+ 24.7

101.9

+ 28.0

/;

-

129.7 ,117.8 /100.8

0.5

—

+

8!6

'

>

+26.9

i;

113.1

foods-.rr——^^--.114,0

.

112.6

112.8

100.1

0.8

+

,

' '

'

+

1.2

prQducts__/__«._^l+;!/-r™,/-.

T

Cattle

feed—r_—-.—i—,1„

Other

textile

Paper

and

Other

miscellaneous—------

products--------

—;-;V 3.3

.

Other, building
Livestock

Woolen

and

•;

.i.

-

i-/-

worsted

goods-!—-

0.2

-

Decreases /

Meats-'farm

•Based

8.6
,>.4.0

products

i-^—

,on

the

BLS

for - Massachusetts $63,000,000, for New Jersey $49,000,000. New! York's Metropolitan area
will " receive
about
$110,000,000.^
000,000;

index

of

America

T.

&

125^000

in

members

California..

The Bank of the Manhattan Coni-

has

pany

?

$6,200,000

for

65,000

for

Savings

The Seamen's
in New York

approximate total of

an

$5,550,000; the Dime Savings Bank
of Brooklyn,

$3,280,000; the How¬

Institution of Newark,

J., $2,800,000; in Hudson Coun¬

New

J., the Trust Company qf

Jersey and the Hudson Coun¬

ty National Bank each have about

Grains

.

Other

prices

N.

S.;' A has abqut $12,500,000,' for

..

2,0
' 1,5

$2,250,000."1
The

weekly

of

Bank

The

ty,1 N.'

materials-

and

-

,

timates for Pennsylvania are $78,-

N.

poultry-.
i

.

jState leads the other States
about $176,000,000/ the es¬

with

ard Savings

—

materials

Chemicals
Fertilizer

,

l.o

0.8

1.3
V

JJ

—

Hosiery and underwear

1.6

Furniture

York

City has

I
'1.2

Dairy products-_j-*-:

2.6

—,

:

"In the distribution of Christ¬
mas
Club. funds this year, New-

Bank

:

^

\

5,0;Cotton
3.8

000, -: /

+13.9

fats—-———; 28.4 Furnishings

and vegetables—4.4

approximately as fol¬
- Savings
32%,
$203,200,000; Insurance Premiums
12%,
$76,100,000;
Debt /Retire¬
ment 7%, $44,500 000;
Year-end
Bills 7%, $44,500,000; Taxes 10%,
$63,500,000;Christmas Purchases
32%, $203,200,000; total, $635,000,lows:/Permanent

members enrolled in 49 offices in,

Incireases;1

'■.

by the

recipients

Greater New York.

1946 TO NOV. ?, 1946

Paint and paint materials—-13.2

Cereal

llfr. 2

98.6

115.1

+20.3.
+27.3

PERCENTAGE CHANGES IN SU5GROUF INDEXES FROM '

(

Fruits

134.1

98.8

1.6,

2.4

105i&,..

115.7

:

I

.

127.9

products

products and

0.2

114.2

134.2

117.7
' 131.7

130.4

All commodities other than farm

;

95.0

114.4 <

7

153.0

materials-—-—— 150.9

Manufactured products

•

—

j

,

Semi-manufactured—120.6

week of 1945.




.

95.0

Fuel and lighting

Metals and metal products-,—-.--,

Oils and

index for foods was due largely
to further price declines for most meats, but quotations for cured
pork, still scarce, were higher.
Butter prices advanced following the
decline of the previous week, and cheese, still in short supply, moved
up.
The decontrol of cereal products on Oct. 24 was followed by
increases in flour quotations averaging 9%, and higher prices for

products.^—rI.; J43.3

products-,-1—+.-4+ 127.3

lowered corn prices.
Wheat, oats and rye moved up, influenced
by the decontrol of cereal and bakery products.
Quotations for
steers, lambs and live poultry advanced, but hog prices were down,
with the largest shipments to market in more than two years,; Egg
prices continued to decline with increased supplies of meat.
Cotton
continued the sharp drop begun the previous week.
Prices of fresh
fruits, including apples, lemons, oranges and bananas rose.
Large
supplies lowered prices of potatoes and onions.
On the average,
prices of farm products were 29% higher than in the corresponding
crop

—.—

Hides and leather

Textile

"Farm Products and Foods—Lower quotations for corn, cotton
and eggs were largely responsible for a decline of 2.1% in average
market prices of farm products. , Increased supplies from the new

"The drop of 2.4% in the group

' /Nov. 2/ 1946, from—

10-26

1

r:

-

: '

11-2

-

Wholesale Prices
V1

.

1946

Commodity Groups—
All commodities——:

v

1946

(1924=400)

for the last week of September.
»'»■■'

BY COMMODITY GROP?^

FOE WEEK ENDED NOV. 2t

Final figures on new construction

$635,000,000 will be used

of

'

National

" Association

Of

approximately 900 commodities
which measures changes in the general jevel of primary market
commodity prices.
Mutual Savings. Banks has . also
This Index should be distinguished from the daily Index of 28 basic materials.
For
the most part, ,the prices are those charged by manufacturers or producers or are' given out a tabulation of Christ¬
those prevailing on .commodity exchanges.
The weekly - index is calculated from mas
funds
in Mutual
Savings
one-day-a-week. prices.
It is designed as aff indicator of week-tp-week changes and
should not be compared directly with the monthly index.
Banks in the Nation.
;
"

THE COMMERCIAL & FINANCIAL CHRONICLE

Number 4542

Vplume

Total Loads

Railroads

Freight Car Loadings During Week
Ended Nov. 2,1946, Decreased 19,945 Cars

Revenue

Loading of

1

Total

59,426

Atlanta, Birmingham Si Coast

corresponding week in 1945.

•

,

Clinchfield——

343

197

2,129

t

1

13,381

12,291

9,993

10,048

4,403

3,785

4,476

4,494

^

446

142

1,830
81

61

114

1,294

2,381

2,137

386

408

770

783

Macon, Dublin & Savannah

5,007

3,708

4,541

16,799

15,631

the

26,295

10,411

10,050

242
-

3>^9
lit

Norfolk Southern

Piedmont Northern

of

781

907

883

166

1,253

■'938

128,516 ^.113,909

106,522

156

—

of

139,821

130,123

21,721

20,472

19,783

15,690

14,675

2,912

2,747

3,205

4,125

3,507

Chicago, Milw., St. P. & Pac
Chicago, St. Paul, Minn. & Omaha

25,440

22,672

22,97,5

11,957

4,402

3,909

3,376

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

18,338

18,713

24,520

4,899
399

714

643

9,203

10,895

Northwestern District-

weeks

1

3,052,487
4,022,088...

*

•

i

).*

,

i «'

-v

T

s» i

'/ 1 "C V7

'

463

.

5,0)8

Central Lines
H. & Hartford

—

Shawmut
Shawmut & Northern
Pittsburgh & West Virginia——

7,944

Rutland

Wabash—Wheeling &

14,191

.

X

Cornwall

Long Island
Penn-Reading Seashore
Pennsylvania System
Reading Co..

Union

42,708

42,708
5,363

———

Lines

(Pittsburgh)
Maryland

12,524

'"11,082

16,335

i5,8o2

859

486

2,169

2.230

4,132

4'039

139,217

145,061

94,765

88,283

4,035

5,97&

2,369

2,044

2,605

3,201

5

353

641

■

334

-

385

.

2,120

1,269

3,494

1,039 j

1,713

1,536

2,710

5,443

2,624

2,722

3,764

2,266

2,293

367

2,290
343

1,413

1,254

8

189

;

330,
r

220

86

355

155

10,290

8,319

7,903

4,135

4,770

4,942

9,701

9,378

12,416

5,934

5,179

5,864

6,254

89

79

76

66

H 113

i

tIncluded

■4,443

15,269

....

32

22

.39

11

65,982

78,870

59,254

Coast Line

Jlncludes Kansas,

RR.

Oklahoma

SStrike,

and Oklahoma City-Ada-AU)ka Ry.

* Hi^h, 99.907, equivalent rate of
discount
approximately
0.368%
per annum.
"s...
Low, 99.905; equivalent rate of
discount: approximately
0.376%
per annum.
;S:::
73% of the amount bid for at
the low price was accepted.
There

25

;

The

'2,4561,269

7*5% Below Production

7,104
5,581

6.963

12,874

5,809

3,909

157,396

164,416

219,379

year's

figures

59,134

Gulf Ry.,

&

v

685

1,495

46,814
■■X 5,212

26,048

reporting

Lumber
.;'

Trade

i

ri •

■

■;•" ••

the Rational
Barometer v were ■$.
•;
::•••;?>
♦« <;
to
•

.l.

<

,

production

for

the

7.5%

below

ending Nov. 2, 1946. In the
week new orders of "these

below

produc¬

mills

were

tion.

Unfilled order files of the

7.2%

production.

STATISTICAL

Orders

the

at

stocks

Received

Period

3,748

■

;

195,702

Aug.

-

Aug. 17

1,041

-24,766

2,741

1,990

Aug. 24

VX

Aug. 31

163,034
166,363

Tons

Current Cumulative
'

620,354
t

98

'

.

610,459

578,276

'

95

.-, loo ~

;

95

100

9

15,646

Sep.

14

483

518

527

47

"59

Sep.

21

290

242

167

12

14

53

120

6

8

Oct.

5

w

1,706

1,743

4,766

3,962

Oct.

12

—

2,020

1,839

1,821

2,181

1,636

Oct.

19

92,250

81,295

85,484

67,217

14.429

12,950

15,346

26,319

19,750

15,235

•19,536

5,611

5,339

4,223

4.153

3,918

11,301

;

Sep. 28

—

615,8651

172.476

593,213

156,822
160,969

169,143

579,500

170,970

569,409

172,354

619,581

Oct.

26

—w—

Nov.

2

——w

205,422

—

NOTES—Unfilled
do not necessarily

151,793

138,189

151,407

223,117
158,176
155,589
165,140

10,669

61,393
25,261

/X

reports,

orders

of the

169,988

598,569

:;

100

:v •i % 95

r 100

:

;

i

i

si

t

;

:).

gross

year-to-date, shipments

production;

below

1.0%

orders

below production.

reporting

of

6.1%

above;

mills

above;

96

-

was
were

were] 10.1%

orders

Compared

above.

96

shipments
to

the

corre¬

95

98

96

175,440

572,188

174,752

601,787

100

prior week,

|

11.8%

95

99

:'X

and

95

101

X

0.X%

duction

95
95

101

sponding week

less production,
Compensation for delinquent

stock, and other items mfcde necessary adjust¬
i

)

in 1945, produc¬

tion of reporting mills was

plus orders received,

equal the unfilled orders at the close.

orders made for or filled from
orders.

83'.''X

rate,

equivalent to 41 days'

sponding week of 1935-1939, pro¬

95

101

605,059

161,534

;

.

are

Compared to the average corre¬

95

98

564,299

X

orders

reporting identical mills were

were

95

<

96

;

600,674

168,120
173,064

v

Percent of Activity

Remaining

Tons x

167,192

'

5

19,257

167,006

v

215,730
156,766
158,304
146,057
160,074

192,978

Sep.. 7

1,445

"

Production

Tons

f;

3

current
are

For the
of

Unfilled Orders

unfilled

mills,

equivalent to 26 days' production

REPORT—ORDERS, PRODUCTION, MILL ACTIVITY

11,392

•

6,477

189,295

.V.

406

of

shipments

lumber

mills

industry,

1,498

-•

Manufacturers Associa¬

week

„

revised.

ibis Association represent 83%

of

members

6,037

174,873

.National

the

to

According
Lumber

wood

1,085

*

Nov. 14 in the

Weekly Lumber Shipments

2,432

376

43,989
4,674

on

of $1,313,714,000.

amount

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

219

150

255

-

maturity of a sim¬

was a

ilar issue of bills

We give herewith'latest figures received by us from the National
aperboard Association, Chicago, 111.;'in relation to activity" in the reporting mills, amounted to 61%
of stocks.
For reporting soft¬
paperboard industry.
1
h
%

43

634

,

-

same

1,692

1,076

/

23

}!

Weekly Statistics of Paperboard Industry

6,332

-

'

4,204

15,182

66,506
in Atlantic

•

competitive

Wr&ySW'MWM

bids: i

6,554

—.

7,071
18,873
i

ments of unfilled




mately 0.376% per annum.

5,841

5,579

—

IV. i,

(includes $21,768,000 ' entered on
fixed price basis at 99.905 and

accepted in full).
Average price, 99.905 + ; equiva¬
lent
rate
of discount approxi¬

320

8

,

.

160

...

'

a

403

3,434

1,446

191,998
Total

30,833
23,301

10,465

NOTE—Previous

Western
-

28,297

21,828

758

j

Total

Range of accepted

158
10,490
3,253

6,420
•

720

1

applied for $1,755,891,000.
accepted,
$1,313,712,000

Total

!7

5,744

1,838

—

166

674

18,288

118

—

—

Pennsylvania

Cumberland &
Ligonier Valley

662

566

F93

;

5,594

—_—;

Midland Valley Ry.,

'

& Youngstown
Baltimore & Ohio.
—
Bessemer & Lake Erie
Cambria & Indiana.——.
—....
Central R. R. of New Jersey

1

464"

2,456

2,242

1946—Week Ended

District—

746

1,858

1,831

J

355
4,633

Aug. 10

Allegheny

Akron," Canton

1,289

782

2,039

were

Reserve

Federal

the

were of¬
opened at
Banks, on

which

13,

Nov. 5,

tion,

7,209

7,492

764'

•

1,248

XX

1,793
v

on

,

2,318

417

5,956

1,307

32,661

TotaL——

t. 13,728

194

176,693

2,329

22,294

——————

Weatherford M. W. & N. W

2,120

9,824

1

1,057

1,890

1,422

Wichita Falls & Southern..

13,832

465

1,131

1,155

Texas & Pacific

49,643

2,449

5,838
735

7,294

Total

53,669
:-16,706

8,214

469

—~

"35

Texas Si New Orleans

8,415

367

298

f

Lake Erie

58

^

17,454

1,809

7,008
5,519

1065

.

—

—-—.

618

g

St. Louis-Southwestern

16

6,753

998

5,304

790

b

St. Louis-San Francisco.——^—

274

33

6,591

of

Nov. 11.

3,032

?

"

3,515

,285

-

Feb.

fered

14,798

3,803

9,770
1,131

1

'2,107

5,357

2,463

5,743-»
2,070
51,572

854

Pittsburg St
Pittsburg,

;

2,889
10,463

457

2,024

5.229

2,195
tJC. O. & G.-M. V.-O. C.-A.-A
...—
1,316
Kansas City Southern.——3,048

156

2,407

2,637

48,228

7,114

3,465

1,347"

4,656

International-Great Northern

1,159

8,249

8,488;

6,337

3,116

1,288

8,094

7,666

.

2,826

4,716

1,404
1,073

Burlington-Rock Island

X 2,203

'

bills to

$1,300,000,000
or;
90 - day Treasury
be dated Nov. 14 and to
for

tenders

13,056

919

Gulf Coast Lines—

9,065

1,378

7,908

858

Western
St. Louis——
ft. Y., Susquehanna & Western
Pittsburgh & Lake Erie
—

13,913

44

18,181

1,921

V

13,135

149,405

1,984

3,611
1.65Q
9,463

11,110

—

—

1,609

•

14,018

1,568

sr

2,839

184

56,960

—

York, Ontario &
New York, Chicago &

Marquette

3,933

190

Bill Offering
Secretary of the Treasury
announced
on
Nov. 8 - that the
The

789

2,237

City

Quanah Acme Si Pacific

282

13,820 •

11,562

2,706

39

12,765

796

:.

Missouri Pacific

8,860

383+

++4,098

6,074
2,718

,

———

52

13,986

3,055

—

Western Pacific

2,464
'10,786

x

*

,

424

23,149

Southwestern District—

^12,159

2,082

5,347

2,131
8,053

383

725

.

1

13,219

.,.35"

411;~

; 396

184

3,314

3,334

2,982
i

Union Pacific System———
Utah
—^—

1,455
308

X

434^

7,651
:

13,336

New

Pere

1,914
V

11,773

3,570

23,123

Toledo, Peoria & Western

1945

344
^"14,827
^,335

lrlOOr;
4,875

460

2,470

..

6,995

549
493

13,382

3,820

15,667

Missouri & Arkansas—.——
Missouri-Kansas-Texas Lines

1,620

-■■

6,939
1,322
,.:r 33

1,127
4,224

8,078

Montour

York

1,340
46

,

27,170

3,624

Peoria & Pekin Union.

....

?£ttl946X

,.2(006.-.r-

6,992

39

,

Y„ N.

64,478

,

24,057
—.

North Western Pacific.

—Connections—

428

r:

1,881

1,094

Trunk

Monongahela

■

25,622
3,542

3,173

—

Nevada Northern—,—

893,069

, r

1944

383:

1,649

—«-———

—

,

'

Western
Lehigh & Hudson Rivera———.-—
Lehigh & New England
Lehigh Valley
—:
Maine Central-———--.—

New

.73,104

2,514

1,140

Missouri-Illinois

Total Loads

1945

1,788
7,861

Detroit, Toledo Si Ironton
Detroit & Toledo Shore Line

N.

131,486

Illinois Terminal————

freight "carloadings for

Freight Loaded^

1946

'

1-

Aroostook-

—

124,945

413

X

431

Fort Worth & Denver

Total Revenue
—.—

Maine.
Chicago, Indianapolis & Louisville—
Central Indiana
Central Vermont
Delaware Si Hudson;
Delaware, Lackawanna & WesternDetroit & Mackinac
—

Grand

—"r—;

37,237,379

M XXX

Boston &

Erie

——,

Denver & Salt Lake

FROM CONNECTIONS
OF,CARS) WEEK ENDED NQVr 2
-

-lutcrii District—
Arbor-,-——

&

587

2,861

*

FREIGHT WXAPED AND RECEIVED

Ann

Bangor

4,944

163

2,670

————

and systems for the week -ended Nov. 2, 1946,
&8 roads reported gains over the week: ended

.Railroads

.

5,325

155

Colorado & Southern

4,338,886
3,459,830

36,017,246

is a summary of the

• (NUMBER

12,719

12,489

•

mature

Litchfield & Madison————

;

.

3,521

•

.

Result of Treasury

146

*

3,441,616

" i

? 851,962

WW—1

2,986

4,106

2,069

"■

hostlers), 4.28.

66

3,384

6,960

218

Louisiana & Arkansas.—

REVENUE

53

2,308

8,065

Bingham & Garfield

Nov* 3, 1945.
'

1,931

2,469

2,492

X

Chicago, Burlington & Quincy
Chicago & Illinois Midland
Chicago, Rock Island Si Pacific—
Chicago & Eastern Illinois

separate railroads

During this period

2,018

8,149
—s,

and

equipment

and

'-fv..:; 'v

813

27,516

4,473,872
4,478,448 "^^4,100,512 XX
3.527,162
3,517,188
3.255,757
3,680,314
£,151,185 £ ^ 3,598.245

922,312

f ! /

-"r-'v

925

13,798

and

.

transportation
(yardmasters, switchtenders, and

thereabout

3,158,700
3,154,116
3,916,037

.

October

' I

536

'X,

V

135,888

Alton

of

2.94,

stores,

6,313

540

2,503

Sppkane, Portland Si Seattle.

*^3375.846

3,377,335

35.021,223

c("

122

7,133

"

2,616,067 ' X
3,456,465..-.
4,062,911
4,366,516 ;V
3,406,874
* ""3,379,284

May.

The following table

i
the

•

3,003,655

3,982,229
2,604,552

—

Total
V

•

,

407

20,246

1,926

Minneapolis & St. Louis.
Minn., St. Paul Si S. S. M

1944

2,866,710

staff
assistants, 0.05; professional, cleriical, and general, 2.48; mainte¬
nance of way and structures, 11.48;

8,530

430

592

Bay & Western,
Lake Superior & Ishpeming

*

.f

•

officials,

238

20,124

Spokane International

2,883,620

Nov. 2.

Week of

4,810

'-."•475

542

Northern Pacific—

1945

—

of September.

4 weeks of

9,356

891
6,952

10,527
>

22,478

Green

1946

of June—

weeks

4

'/

*1,021

Great Northern—

the

v:

•

maintenance

Elgin, Joilet Si Eastern
Ft. Dodge, Des Moines & South—

be

are:-

Executives,

Central Western District—

.weeks of July
weeks of August

5

23,245

Chicago Great Western..

4,268 cars
increase of 6,895 cars above the cor¬

January—

weeks

creases

560

—

Denver & Rio Grande Western

of February
weeks of March
weeks of April

spectively. The percentages of de¬

8,119

25,0111

Chicago & North Western

with the corresponding
all reported increases compared with 10^4 except

weeks

1,500
8,514
•

25,380

.

week in 1945.

the Southwestern.
■weeks

8,939

26,427

Total..

responding week in 1945.
."■ All districts reported, increases compared

i945, and

9,911

'

1,678

29

Winston-Salem Southbound-

13,819 cars, a decrease of 416 cars be¬
preceding week, but an increase of 2,131 cars above the cor¬

■week in

9,596

10,815

Tennessee Central——

Coke loading amounted to

low the

1,850
1,786

,

12,572

responding week in 1945.
,

471
429

Southern System

corresponding week in 1945,
Ore loading amounted to 58,457 cars, a decrease of

;

420

4,151

;

Seabpard Air Linej—-

the*week of Nov. 2 totaled 20J191 cars a decrease
preceding week, and'a decrease of'2,858

preceding week but an

993

-«•

435

(other than train, engine, and
yard) and transportation (train
and engine service), which show
increases of 1.54% and 0.26%, re¬

868

391

4,418

■;.

438

zjy

995

435

3,739

..

1,244 •

/

—

Richmond, Fred. & Potomac

229

291

3,414 '•

\

is

1945,

reporting group with
exception of transportation

ees

31,561

v

Sept.

for every

5,046

——i——

Nashville, Chattanooga & St. L._——

under

shown in the number of employ¬

26,911 •

2?.273.

decline

A

28,682

4,727

.■,
—

Mississippi Central

3,785 cars below the

bfelow the

'

;/ ■'!

sion.

144

1,287

,

-

the Interstate Commerce Commis¬

628

1,786

1,189

"

loading for the week of Nov. 2 totaled 33,
839 cars, a decrease of 590 cars below the preceding week and
decrease of 3,535 cars below the corresponding week in 1945.
Livestock loading amounted to 25,354 cars ^-decrease of 5,439
cars below the preceding week and a decrease of 2,476 cars below
the corresponding week in 1945. In the Western;T3istricts alone load

forest products totaled 46,804 cars, a decrease of 1,019 cars
Week but an increase of 10,735 cars above

250
V

693

-

V

1,559

100

Louisville & Nashville..——

grain and grain products

low the preceding

1,398

2,586

350

449

Illinois Central System

week in 1945. In the Westerm Districts alone

below the corresponding

1,534

3,293

331
J73

X

1,272

...

Gulf, Mobile & Ohio

244] cars below the preceding week and a decrease of 6,905 cars

■cars

!

117,

1,862

—*

420

1,687

461

1,808

Georgia & Florida

but an increase of 1,549 cars above the
corresponding week in .1945,;
*
' '
y
Grain and grain products loading totaled 52,165 cars, a decrease

of

Employees of Class I railroads
the United States, as of the
middle of Sept. 1946, totaled 1,362,315, a decrease of 3.49% com¬
pared ; with
the
corresponding
month in 1945, and 0.42% under
Aug. 1946, according to a report
issued by the Bureau of Trans¬
port Economics and Statistics of
.

of

198

2,258

t

2,143

Gainesville Midland——...——

bqlpw the preceding week

ir[g of livestock for

22,533

v:?■; 767

478

Georgia

'

follow the corresponding

24,326

f

'■r*

506

—

—

Florida East Coast...

.

carload lot freight totaled 131,123 cars a decrease of 439 cars below the preceding week, but an in
crease of 14,868 cars above the corresponding week in 1945.
Coal loading amounted to 182,235 cars, a decrease of 7,547 cars

of

831
■

4,064

Columbus & Greenville.

Loading of merchandise less than

]

••v

6,454

"1,764

•

Central of Georgia
Charleston & Western Carolina

Durham & Southern—

above the

7,326

1,402

55,425

431

t
14,955

Atlantic Coast Line.———1

Employees Drop
0.42% to 1,362,315

1945

14,315

"

-

•

935

decreased

•1946

15,598

21,307
4,385 \

338

increase of 43,553 cars

preceding week, but an

below the

5,060

Alabama, Tennessee & Northern

totaled 412,355 cars a decrease of

Miscellaneous freight loading
cars

22,950

4,034

Atl. & W. P.—W. R. R. of Ala

..Loading of revenue freight for! the week of Nov. 2
cars or 2.1% below the preceding week.

573

25,293

—

Southern District—

3.3%

19,945
*

1944

29,733

62,001

Virginian

above the same week in
..

1945

31,416

!■

RR.

—Connections^-

Freight Loaded

1946

32,674

Norfolk & Western—

revenue

corresponding week in 1945, and an increase of 29.243 cars or

V

Chesapeake & Ohio.—■—

freight for the week ended Nov. 2, 1946
totaled 922,312 cars the Association of American Railroads announced
on Nov.
7X This was an increase of 70,350 cars or 8.3% above the
•

!

-

Pocahontas Districts—

Received from

£vc';I Total Revenue

.

i

above;

v

60.2%

were

and

orders 1 were

new

64.8% above.
'Vt V:

76.0%.

shipments

above;

yi j'V'+iy

Xiv'ji

;V:vv-'
y

t

/•

"
<

V.

THE COMMERCIAL & FINANCIAL CHRONICLE

2536

Frank
"f

1

Watts,

••

of

Honorary

died

on

Nov. 5 at

a

ation.

Companies

Death

was

a

major

elected

was

director of the com¬

nected with

directors of the bank at the Tow¬

1919.

Brooklyn.
All direc¬
tors, officers and branch managers
were present. Mr. Smith is retir¬
ing after more than 20* years of

since

the bank
a

Vice-Presi¬

dent in 1928 and was

promoted to

He

appointed

was

associated

l>ecome

with

the- gen¬

management of the bank in

eral

Nov. 11 at a

of honor on
dinner given by the
guest

Kleitz has been con¬

Mr.

pany.

a

a

Hotel,

ers

(Continued from first page)
the government to drop the con¬
trols.
v-...

said the St. Louis "Globe
Democrat," from which we also

Percy J. Smith- formerly VicePresident of the Lafayette Na¬
tional Bank of Brooklyn in New
was

President Orders Price Decontrol

ease,

-

York,

oper¬

due to heart dis¬

Chairman

1943. * Previously he had been
active Chairman of the board and
before that President of the bank.
He

;

took

the

leading

role

in

National
Bank in
1919 with the Liberty
Central Trust Company, bringing
the total resources of the merged
the

consolidating

institutions

to

First

than

more

$218,-

i

^ p ,•_*;<.<

The major

•

in

<,J'' ,4 •

,

>

-i'-

'j .'I'I'

problem with which

withholding

gard.
We must continue an ag¬
gressive
program
of
building
homes and apartments for vet*

market.

erans.

we

have

had

to

contend

is

the

of goods from the
price controls are
dropped, one by one, many sellers
naturally hold on to their goods
in the hope that their turn will
come next and that they can ob¬
tain a higher price.
In addition
to those who «re holding on to
goods merely in expectation of de¬
As

there are others Whose
Earlier he had directed the con¬ motive is deliberately to force de¬
fayette National Bank.
.
\4
solidation of the. Third'. National control by depriving consumers of
essential: goods ,or; manufacturers
the
Mechanics-American
The Pennsylvania Company for Bank,
This with¬
National Bank and the St. Louis of essential materials.
Insurances on Lives and Granting
holding is becoming so -serious as
Annuities > of - Philadelphia • an¬ Union Bank to form the First Na¬
tional. Mr. Watts was born in Pa-, .to .threaten key; segments of the
nounces {the opening
of a new
economy "with'paralysis.
travel department under the di¬ aucah, Ky., Nov. 14, 1867. Follow¬
.The real basis of our difficulty
rection of Walter C. Ransom, Man¬ ing the death, of his father, when
is the unworkable price control
he was .7 years old, he went' to
ager,
formerly associated with
work at 14 years in a drug store law which the Congress gave us
Cunard-White Star, Ltd., and Pan
to administer.
The plain truth
in Union City,' Tenn., and shortly
American World Airways.
Mrsl
after;Secured employment in- a .ip that, under this inadequate law,
service

as

an

officer with the La¬

00(j,000."g®£m;P:,

control,

v..-•,;.r.

.

January 1945.

He is also a direc¬
Inc., and In¬

tor of Wilson & Co.,

spiration Consolidated Copper Co.
•

The board of directors ,of the;
Guaranty Trust Company of New
"York at its regular meeting No¬

recommend

to

that,

stockholders

the

to

decided

6

vember

at the

forthcoming annual meeting, to
be held on January .15, the stock¬
holders authorize an increase in
the authorized capital

stock of the

from $90,000,000, con¬
900,000 shares of $100
par value to $100,000,000 to consist
of 1,000,000 shares of the same par
company

sisting of

•

H

enriettaj Bryan Jefferis, Assistant

Manager, Was formerly director of

Specialized l ^ravoi Service, Inc.; '•
*

? ;

/

v

••

V

-1

Gustavus Ober,

\

4

^ 'j

Jr., Vice-Presi¬

plated that the additional 100,000

dent, and for many years a direc¬
tor and member .of the executive
committee of the Fidelity and De¬

shares will be distributed to stock-

such

ize

elders

increase,

as

a

it

is

contem¬

stock dividend at the

each nine
shares held. The advices addressed
to the stockholders on Nov. 6 by
of

rate

one

share

for

and executive committee until his

land, President, further said:

was

that

contemplated

death,

following

which; his

son
elected to succeed him in both

Ober for many
years was head of the firm of G.
Ober & Sons Company, fertilizer
capacities.

Mr.

removal

leaves

no

of

basis

price controls
necessity iot

or

the continuation of wage
which have

controls,

operated, jr.-.most in¬

dustries,- only
price

an adjunct to
Accordingly, I

as

controls.

have

issued

Executive

an

terminating all
controls

the

Order

wage

under

and salary V
Stabilization

Act of 1942. This does not affect;
of course, the statutory provision

si.

governing changes; in iterms and ti
conditions;4 ofr? employment"^ in im¬
plants operated by the^ Govern* 1
ment pursuant to the War Labor

Disputes Act.

;

.

/

,

I have asked the Bureau of tho

Budget, in consultatiph {with the '
agencies
involved, to
prepare

generally give it their

the Fourth National Bank.

Bargaining1

support.
We have

Clarence

E.

now

reached the point

Baen, banker and where
on Nov. 10.
Mr. Ober's father was
many of our shortages have
civic leader, has been appointed a
one of the original organizers of
disappeared and in many other
Vice-President of the Anglo Cali¬
the
Fidelity
and
Deposit
and
areas supply is rapidly approach¬
served on its board of directors fornia National Bank of San Fran¬
ing demand.
In the 15 months

Eugene W. Stetson, Chairman of
the board, and J. Luther Cleve¬

\

The

plans for the reduction, of; opera* *
tions resulting from; ttoday^s»ac- j
nearby bank. When. 21 years old
he was named Cashier of the First support needed io, n^ke%it work; tion, and to devise themmo^V'efAt
best, the; administration of fective and. economical methods m
NationalBank of
Union City,
From there he went to Nashville, price control is an extraordinarily for
administering:^; the Vf unctions *
difficult and complex business, and which iremainiiii ^ ' * r Tv - '
'• v
Tenn.," and worked out the merger
it can work successfully only - if
of the First National Bank and
Return of Free Collective
'
the; people

posit Company of Maryland, died

If the stockholders author¬

value.

proach to some of the problems
in the housing program.
I am

asking the Housing Expediter to
report to me promptly in this re¬

Problem of Partial Control

following:;';Vv".'.-''

He became Honorary

meeting of the board of
directors of Guaranty Trust Com¬
pany of New York on Nov. 6, Wil¬
liam
L.
Kleitz, Vice-President,
a

the

local hospital,

where he underwent

take the

At

of

board

the

First National Bank of St. Louis,

Items About Banks,
Trust

O.

;

Chairman

Thursday, November 14, 1940

cisco,; it

was

announced;

on

Nov.

since

4

V-J

by Allard A. Calkins, President. program
A
native
of
Cincinnati,
Ohio, measure
where he

admitted to the bar,
Baen went to San Francisco
was

Day the stabilization
has preserved a large

of general economic sta¬

The

controls results in

wage

turn

•

lifting of price controls and

to

free

market

the

'

re¬

with

free

-

bargaining. Industry has
sought removal of price, controls

•

a

collective

while

labor has

pressed for re¬

moval of control of wages.

insisted

have

that

is

also

.

bility

,

-

,

,

.

■

,

armed service," the "Post Gazette"

The directors of Midland Bank

advices added.

James

Harmon,
Assistant
Treasurer of Guaranty Trust Co.
of New York, and a resident of
Garden

City, L. I., died on Nov. 8,
of 49, following a long

at the age

illness.

the

Ltd.

E.

He had been

a

member of

Guaranty staff for 34 years.




The

Drexel

National

Bank

of

Chicago, 111., increased its canital

The Viscount

that Field-Marshal

Alanbrooke, G.C.B.,

has been elected to

Oct. 28 from

a

of the

Currency Bulletin

on

Nov. 4.

Company.

would drive these materials away
from

housing and defeat the ob¬
jectives of the program. The re¬
the
moval of price ceilings on build¬

seat at their

$500,000 to $600,board and at the board of
000 by the sale of new stock, it
was
reported in the Comptroller Midland Bank Executor & Trustee
on

building materials alone, with no
control on products com¬
peting for the same raw materials,

Polish

price

announce

V.

of

during a period in which these controls would lead to in¬
Mr.
explosive forces would otherwise creased
following the payment of such
production
and
fewer
in 1908 after practicing law in his
have produced economic disaster. work stoppages.
stock
dividend, the balance in
home state and in Colorado. For
General Contingency Reserve, aft¬ manufacturers,
which had been
In fact, the situation is far more
High production removes the
several years he was Manager of
er
certain adjustments, will be established
favorable for the return to a free hazdrd of inflation and brings"
by his grandfather,
the California and Hawaiian ter¬
Gustavus Ober, in 1857, and of
transferred to undivided profits
economy today than it Was when prices within the- reach ; of the
ritories for Bradstreet's mercantile
the present badly weakened sta¬ mass market.
and $40,000,000 will be transferred which his father, Robert Ober was
Wage rates not jusi
credit agency. In 1916 he joined
bilization law was finally enacted tified by labor
from undivided profits to surplus. President until his death.
productivity and
the staff of Anglo Bank, and has
After making these transfers the
Mr. Ober was born in 1881. Aft¬
by the Congress.
prices not justified by manufac*
been associated with the public
accounts
will stand as follows: er leaving Princeton University
Nevertheless, some shortages re¬ turers' costs may bring the illu¬
relations phases of the bank's ac¬
main and some prices will ad¬ sion of
capital $100,000,000, surplus $200,- he accepted a position with the
prosperity.
In the long
tivities ever since. In 1918 he was
vance sharply when; controls are
000,000 and undivided profits ap¬ Fidelity and Deposit Company
run; however, good wages, full
appointed an Assistant Vice-Pres¬ removed. We have,
and three years later joined the
proximately $53,000,000."
however, al¬ employment and sound business
ident. For the past ten years Mr.
ready seen what consumer re¬ profits must depend upon man¬
firm of G. Ober & Sons. During
Baen has been President of the
sistance can do to excessive prices. agement and workers cooperating
James T. Lee, President of the his connection with the fertilizer
San
Francisco
Convention
and The consumers
of America know to produce the maximum volume
Central
Savings Bank of New industry, he served as a member
Tourist Bureau, and has been in¬
that if they refuse to pay exorbi¬ of goods at the lowest
York, announces that the bank's of the American Committee of the
possiblestrumental in bringing to
San tant prices, prices will come down.
price.
I
deposits as of November 1 passed International Agricultural Insti¬
Francisco many of the great na¬ Wholesalers and retailers; alike
the $260,000,000 mark. "This fig¬ tute at Romei: Italy, also as Pres¬
Today's action places squarely
tional conventions that have met are
aware of the danger of ac¬ upon management and labor theure," said Mr. Lee, "represents an ident and member of the board of
there.
He is a past President of
cumulating inventories at prices agreements for the adjustment of
all-time high in the bank's 87- directors of the National Fertilizer
the San Francisco Credit Men's so
high that they cannot be con¬ responsibility for working out
year-old history." Commenting, at Association. In March, 1935 Mr.
Association,
a
director of
the fident of reselling at a profit. their differences without inter*the same time, on the bank's new Ober disposed of his interests in
Downtown
Association,
and
a Manufacturers, thinking of their
1947 Christmas Club, the first in G. Ober & Sons and about a year
ruption of production.
member of the Commercial Club,
future markets, will hestitate to
20 years, Mr. Lee stated: "We're later was appointed assistant to
the California State and San Fran¬
raise prices unreasonably. In short,
Charles R. Miller, then President
happy .to be able to offer this
Polish Govt, to Work Out
cisco Chambers of Commerce, and the Jaw of
supply and demand
popular service to the public once and now Chairman of the board
the California State Bar,operating, in* the market; place Plans to
again;? Our overall goal is 10,000 of the Fidelity and Deposit Com¬
Pay Bonds
will, from now on, serve the peo¬
members and we hope to enroll pany. He wras elected a Vice-Presi¬
The Polish Government, in an.
William B.
Marshall became ple better than would continued official
5,000 at our downtown office, 14th dent of the latter company in Sep¬
announcement published
Street and 4th Avenue and 5,000 tember, 1938. .In addition to his, Manager and Richard H. Burke, regulation of prices by the gov¬ Nov. 12 reaffirmed the
recognition
ernment.
at our uptown office, 73rd Street connection
with
the
F&D, Mr. Assistant
of
its v obligations to. American,
Manager, on Nov. 1 of
and :Brodway»"
Ober at the time of his death was
bondholders
and
announced
its.
/
Rent Controls Continue
the Springfield (Ore.) branch of
a
director and member of the
firm intention to work out plans-.
The reasons which impel the
the United States National Bank
with
ther i Foreign
In- Cooperation with the Chil¬ executive committees of the Fi¬
Bondholder^
lifting of price controls are not Protective
dren's
Book
Council,
Colonial delity Trust Company and the of Portland, Ore., it was announced
Council, Inc., and the
applicable to rents.
Housing is holders of
Mount Vernon-Woodberry Mills,
Trust Company of New York has
privately issued bond^
by E. C. Sammons, President of
desperately short and will con¬ for the
a display
of • children's books in Inc., both of Baltimore; a direc¬ the
resumption of payments
latter, it is learned from tinue to be short for a long time to When
tor of the Savings Bank of Balti¬
the windows of its principal office
conditions
affecting Po¬
come.
Tenants are in no position
in
Rockefeller
Center
land's ability to make payment#"
during more, the Cumberland Coal Com¬ Springfield advices to "Portland
to
resist
extortionate
demands.
in foreign exchange become more
'Children's Book Week," Novem¬ pany and Lamman, Kemp, Bar¬ Oregonian," which also said:
The fixing of rents by the ordi¬
normal.'
>
ber 10 to 16. Over 40 of the lead¬ clay & Company of New York.
Mr. Marshall followed his pro¬
nary
processes
of
bargaining
The
announcement
continued
ing publishers of the country have
fession of banking in Kansas be¬ would be
hardship and suffering that the
-contributed < books,
original
Polish; Government be-The Colonial Trust Company of fore
to our people. It may be that some
coming to Springfield as As¬
lieved that "negotiations for thesketches and illustrations, making
Pittsburgh, Pa., on Nov. 6 opened sistant
the exhibit one of the most out¬
Manager earlier this year. adjustment of rents will be re¬ resumption of payments should be j
a new branch office in the Bloomquired, but control of rents and
standing of its kind. In addition field section of that
Mr. Burke, a native of. Pennsyl¬
possible within the next year."city. In charge
control over evictions must be While
to being of interest to children,
regretting the need for
of the new office will be John D. vania, was educated in California continued.
it will also be a valuable guide to
such delay, the announcement ex¬
Beswarick. it was announced by and
Portland, and attended the
I wish that it were possible to
parents and school teachers in se¬ C. A.
McClintock, President, ac¬
University of Oregon. He has been keep effective price controls on plained that this would "make it
lecting books for boys and girls cording to the
Pittsburgh "Post
of all ages.
with the United States National building materials in furtherance possible better to fix conditions^
Arthur S. Kleeman, Gazette" of Nov. 1. ■;>
of the Veterans' Emergency Hous¬ fair to creditors and
President of the bank, in announc¬
government,
Mr. Beswarick started with the since 1937, having served as as¬
ing Program, under which we alike." The
ing the exhibit, said: " 'Children's Colonial Trust Company as a mes¬
notice, issued by the*
sistant head bookkeeper at the have seen an
unprecedented ac¬
Book Week' has for 27 years been
senger in 1936, and has recently
Polish Minister of Finance, and:
head office in Portland before ac¬ celeration both of homebuilding
observed
by
schools,
libraries, returned after a two and one-half
and of the production of building released here by Janusz. Zoltow—
bookstores and leading civic or¬
cepting the new appointment.
year leave of absence spent in the
materials.
But price control on ski, Financial Counselor of the^
ganizations of the United States."
"It

-*!

Both

removal

materials
will
obviously
necessitate a change in the ap¬
ing

was

Embassy

in

Washington*;,

addressed to holders of dollar-

bonds and coupons of the Repub¬
lic of

City

Poland; Province of Silesia*,

of

nomic

Warsaw;

National

Bank, Warsaw,

Eco-e

and Land!

Mortgage Bank, Warsaw.

,

: