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Mc.
oininerriat
Volume 135
tL Janda'
Iiratturie
New York, Saturday, November 19 1932.
Number 3517
The Financial Situation
IF THERE is to be genuine and sustained revival
of trade—and it seems to us that the time has
arrived in the long period of trade depression where
every endeavor to that end should be made—there
must be co-operation on the part of labor, and
especially union labor. Though the Presidential
election is now a thing of the past, and the embargo
imposed upon business activity by the heated campaign which marked the closing weeks of the contest, no longer exists as a dampening influence upon
normal trade operations, there is little sign of any
disposition to take hold in earnest and start the
country on a course that will afford a sure basis for
a greater volume of trade. Instead, there seems to
be the same hesitancy as before about embarking
upon anything except routine transactions—the same
reluctance to engage in new ventures that involve
anything except the most ordinary risks.
A variety of circumstances might be mentioned
to account for this, but among these a foremost place
in our estimation must unquestionably be assigned
to the attitude of union labor in resisting an adjustment of wages to a level in accord with the requirement of the times, and instead holding out for continuance of wages that were reasonable enough when
the country was enjoying unalloyed prosperity, but
which now are sadly out of joint with the new era
that has dawned upon us. .It seems like stating an
obvious truth to say that labor cannot escape adjustment to the new conditions, when conformance
thereto is imperative in every other direction. The
truth is, it is the mere working out of an economic
law as inexorable as any physical law, and which
no one can disregard with impunity.
This thought, which has found frequent expression
in these columns, is again brought to the fore by the
action of the railroad labor unions the present week
in their consideration of the proposition for continuance of the 10% reduction in wages agreed upon
early in 1932 and which by its terms is to expire on
Jan. 31 1933. The executive heads of the railroads
feel not only that the 10% reduction should be continued, but that, owing to the desperate plight in
which the railroads find themselves, the wage reduction should be more drastic, raised say to 20%. On
the other hand, the executives of the'different railroad brotherhoods which control the operations of
unionized railroad labor will not consent to a continuance of the 10% reduction for more than a period
of six months, and are at the same time seeking to
impose as a condition that the railroads give assurance that they will find employment.for an extra
number of employees—men who are now idle because
the railroads have nothing for them to do. The
proposition is chimerical on its face, for railroad
managers would obviously have to be in possession
of super powers if they could accomplish a feat of
that kind, that is, create traffic where none exists,
and in such an eventuality the need for the services
of the Reconstruction Finance Corporation would
at once disappear.
The security markets the present week, after their
slight ebullition of strength last week, have again
been weak, and railroad securities, both stocks and
bonds, have been especially depressed. The reason
undoubtedly is the hostile spirit which is being manifested by railway labor in dealing with the wage
question, for the plight of the railroads to-day is
pitiable, and little more is needed to involve them in
utter ruin. On Thursday the heads of the different
railroad unions had a conference with the executive
officials of the railroads, at which they presented
their demands and the railroad executives in turn
spent much time in showing how utterly impossible
it is for the roads to yield to such demands,no matter
how favorably inclined they might be to yield acquiescence under other circumstances. But it does not
appear that railroad managers accomplished much
in the way of convincing the labor union heads that
their demands were entirely untenable.
The labor heads had a conference of their own
the day before, at which they formulated the conditions with which the railroads must comply, and
it is only needful to rehearse these conditions to
make it plain to the ordinary man that the railroads
are in no position to comply with the demands, and
hence that a sensible course would be to withdraw
them and thus pave the way for a speedy settlement
of the controversy, which would do so much to aid
in restoring trade revival. According to the daily
papers, the conference of the labor executives on
Wednesday was a closed conference, in which 21
railroad brotherhoods took part. It was a meeting
of the Railway. Labor Executive Association, of
which A. F. Whitney, President of the Brotherhood
of Railway Trainmen, is Chairman. While the proceedings were not divulged, Mr. Whitney, in a talk
with newspaper men, charged that the railroads had
failed to live up to the agreement made with the
Brotherhoods in Chicago last January and under
which the railroads.undertook to increase employment in exchange for the 10% wage reduction. Mr.
Whitney charged the railways with violation of the
Chicago agreement in the sense that instead of striving to diminish unemployment they had actually laid
off an additional 111,000 men since conclusion of the
3394
Financial Chronicle
agreement, raising the total number of the unemployed on the railways to more than 700,000. "We
will ask the railway representatives to agree to correct these violations," he said.
The conference with the ilailway executives on
Thursday was called on the initiative of the Railway
Labor Executives' Association. The invitation was
extended to the railway committee headed by Daniel
Willard, President of the Baltimore & Ohio RR.,
which made the agreement with the Brotherhoods
last January. This committee readily assented to
the request for a conference, although it appears
that this committee is no longer functioning, its
official life having expired with the conclusion of
the Chicago agreement last January. A new committee, representing the railways, and headed by
W. F. Thiehoff, General Manager of the Chicago
Burlington & Quincy RR.,has been created to negotiate with the Brotherhoods on the proposal for a six
months' extension of the 10% wage reduction put
into effect at the close of last January. It appears
that the railroad officials, while believing that the
decrease in wages should be larger than 10%, are
willing to enter into a temporary agreement for extending the 10% wage decrease for a period of six
months, hoping that by that time conditions will
have sufficiently developed for more decisive action.
If no amicable agreement is arrived at before that
time, then the different railroads will post notices
of the reduction, as required under the law, and will
in that way undertake a reduction large enough to
meet the necessities of the situation. Mr. Whitney,
the Chairman of the Railway Labor Executives' Association, stated that necessary authorizations to discuss an extension of the 10% reduction agreement
were being received and that another conference between the labor and rail committees to negotiate the
matter is to be held in December. The conference
on Thursday was accordingly devoted almost entirely
to u discussion of the unemployment situation, and
here it was again argued by the labor leaders that
the railroads must find employment for a considerable body of those now idle.
But how is that to be accomplished? Statistics
just compiled by the Inter-State Commerce Commission show that the statement that there are fewer
hands employed by the railroads than was the case
last January is correct, though not to quite the extent
claimed by .the labor executives. The figures compiled by the Commerce Commission show that at the
middle of September the total number of employees
on all the railroads of the United States was
1,010,442, as against 1;108,691 the number of employees at the middle of last January. But why has
the number thus shrunk? No doubt the railroads,
because of their vanishing revenues, have dispensed
with every employee that was not absolutely essential to the safe and efficient operation of their trains,
but in the last analysis the cause for the shrinkage in
the number of employees is to be looked for in the
tremendous falling off in traffic. There was really
not work enough for the same number of employees
as before.
Very few persons have any conception of the extent to which the traffic of the roads has dwindled
as a result of business depression. On that point
some statistics compiled by the Bureau of Railway
Economics at Washington speak eloquently of the
way railway traffic has been reduced. From a report released on Thursday of the present week it
Nov. 19 1932
appears that freight traffic handled by Class One
railroads of the United States in the first nine
months of 1932 aggregated 189,770,860,000 net ton.
miles, and that this was a reduction of 72,051,613,000
net ton-miles, or 27.5% under the corresponding
period in 1931 and a reduction of 131,724,229,000 net
ton-miles, or 41%, under the same period in 1930.
Just think of a shrinkage of 41% in two years and
of a loss of over 131,000,000,000 net ton-miles in the
interval, the ton-mile being the unit of transportation service. If the railroads had put on additional
men, what would they have done with them, with
no traffic to handle or move? It would obviously
be a useless expense, closely akin to a crime, coming
at a time when the roads are obliged to have extensive
recourse to the lending facilities of the Reconstruction Finance Corporation. The railroad Brotherhoods may say reduce the number of hours of labor
from eight hours a day to six hours,or even less. But
supposing such a change was at all feasible in the
operation of railroad trains, it would be open to the
same objection, namely, that it would involve extra
expense, since these labor unions want the same pay
for the shorter day that they are at present receiving
for the ordinary day.
In the meantime what is the position of the railroads to-day after their enormous loss of traffic and
revenues? Class One railroads of the United States in
the first nine months of 1932 had gross revenue from
railroad operations in the sum of only $2,363,830,088
as against $3,279,2-15,950 in the same nine months of
1931, $4,083,333,090 in the nine months of 1930, and
$4,781,684,237 in the corresponding nine months of
1929. Here, then, there has been a loss in gross
revenue of $2,417,854,149 in the three years, or over
50%. The net revenues from operations (before the
deduction of the taxes) has shrunk in the same alarming fashion, the amount for 1932 at $512,463,600 comparing with $754,849,710 in 1931, $1,030,360,216 in
1930, and $1,362,287,203 in 1929. Here the falling
off has been in excess of 60%. The result, when
fixed charges and dividends are considered, is perfectly startling. Few railroads are any longer able
to pay dividends. Even such roads as the Pennsylvania RR. and the New York Central, both with a
dividend record extending back to the date of the
organization of the companies, have the present year
been obliged completely to suspend dividend payments. Not only that, but some of the strongest
railroads in the country are unable to earn their fixed
charges, the New York Central, the Chicago Burlington & Quincy, the Louisville & Nashville, the New
Haven, the Baltimore & Ohio, the Chicago Rock
Island & Pacific, the Illinois Central, and a host of
others all being instances of the kind in their returns
for the nine months ending Sept. 30. The New York
Central fell short of meeting its fixed charges for
the nine months in the large sum of $15,454,649. For
the railroad system of the United States as a whole
the story in that regard is a most impressive one.
The latest figures to hand in that case are for the
eight months ending in August. For that period in
1932 the railroads of the United States, considered
as a whole, fell $173,892,660 short of meeting their
expenses and fixed charges.
There remains the question of the possibility of
raising transportation charges to help the railroads
out of their dilemma. Of course the labor unions
have no objection to this, and are ready to agree to
anything that may maintain or increase their own
Volume 135
Finanial Chronicle
compensa lion, no matter what the effect on other
parts of the industrial machine. Some Moderate
increases in freight charges were authorized by the
Commerce Commission the beginning of the year,
and these will presumably be retained for the time
being. But as to any further raising of freight rates
the distress which the agricultural classes of the
country are suffering forbids anything of the kind.
Think of raising rates for the transportation of
grain when wheat at Chicago is selling in the neighborhood of only 40c. a bushel!
There is hence not the slightest merit in the contention of the railway labor unions that railway
wages shall be maintained or that the expense accounts of the reads should be padded in order to
add to the list of employees when there is no room
for additional employees. There is only one way in
which the cause of railroad labor can be advanced,
the same as the cause of the entire population, and
that is by recognizing that inflated price levels are a
thing of the past, not excepting the price of railroad
labor, and that there must be willing adjustment to
the new conditions. This done, trade and business
will by degrees come back to the normal, employment
will increase (reducing the number of the idle), and
in the course of time, with prosperity once more
abounding, the way will be paved for a higher level
of wages again, even if not the unduly high level prevailing during the speculative era.
HERE is another incubus that is weighing
heavily upon business and which should be removed. We refer to the matter of the international
debt payments. Great Britain, France and a number of other countries have asked for a postponement
of the payments due to the United States during the
coming month,and for a reconsideration of the whole
problem of international debt payments with a view
to the cancellation or reduction of such payments.
The discussion of the matter has had an unsettling
effect upon the foreign exchanges and has proved a
disquieting influence generally at a time when there
is such strong need that the course of business should
be allowed to proceed free from extraneous agencies
of every kind. When we say, however, that this disturbing factor should be eliminated we do not mean
that this should be done in the way advocated by a
number of well-meaning people who have been singing the same refrain for a long time; namely, by the
cancellation of the debt, thereby "wiping the slate
clean." We discuss the matter at length in a separate article on a subsequent page, and will only say
here that one conclusive reason against anything of
the kind is that the state of the country's finances
is such that positively we cannot afford any such
sacrifices. With the budget deficit running into
hundreds of millions of dollars (as high as $700,000,000 having been mentioned this week), and with
new taxes burdensome beyond endurance, we cannot
forego the receipt of a single dollar due to this country. Nor can we see that anything would be gained
by so doing. All the world's numerous problems
growing out of the War would remain the same as
before, with the additional menace that Europe, relieved of the burden of debt payments, might in lighthearted fashion proceed upon a new era of spending
worse than any yet practiced.
Something ought to be done, to be sure, to facilitate American trade with • foreign COuntrieS, but
there is only one way of doing this, and that is by
T
3395
revising our customs duties, at least to the extent
of removing the tariff excesses. Debt cancellation
leads nowhere, and would strip this country of some
needful moneys. On the other hand, tariff revision,
to which the incoming Administration is pledged,
would result in benefit all around and would do more
to promote amity and peace.than any other single
agency.
President Hoover is apparently in a quandry as
to how the requests of Great' Britain, France, &c.,
had best be treated, and with a nice sense of courtesy is to have a conference the coming Tuesday with
President-elect Roosevelt to ascertain the latter's
views on the subject and presumably to be guided
largely by them. But it seems to us the course is
clearly mapped out fix. both Mr. Hoover and Mr.
Roosevelt. They could jointly agree without any
sacrifice of principle and with entire propriety and
without any derogation of dignity, by saying that the
matter was really out of their hands and that they
were precluded from any action in the premises, because of the Congressional declaration attached to
the resolution by which. Congress gave its approval
to the moratorium on reparation payments and intergovernment debt payments which President Hoover
negotiated in June of last year. Mr. Hoover himself,
in the courteous invitation for a conference with Mr.
Roosevelt which he extended to the latter and which
the latter accepted, quotes this declaration. After
noting that he had recommended to Congress that a
new debt commission be created to deal with situations that might arise owing to the temporary incapacity of any individual debtor to meet its obligations to the United States during the period of world
depression, Mr. Hoover well says that Congress declined to accede to this recommendation, but instead
passed a joint resolution containing the following
declaration:
"It is hereby expressly declared to be against the
policy of the Congress that any of the indebtedness
of foreign countries to the United States should be
in any manner canceled or reduced; and nothing in
this joint resolution shall be construed as indicating
a contrary policy or as implying that favorable consideration will be given at any time to a change in
the policy hereby declared."
Congress is the law-making body without whose
approval the Executive cannot act. Why not, therefore. take the simple course of saying that when the
national legislative body declared that it was not
the policy of Congress that "Any of the indebtedness
.of foreign countries to the United States should be
in any manner canceled or reduced," that settled
the whole thing once and for all. What, indeed, is
it possible for the Executive to do in view of this
declaration, so emphatically expressed? The advantage of such a course of action would be that it
would leave both President Hoover and Mr. Roosevelt free of all embarrassment.
There is another phase of the controversy which
should not escape attention. We mean that there
is an element of the ludicrous in the implication contained in the French request that France is so poor
as to be acctually unable to meet the payments due
to the United States. On that point it will be sufficient simply to quote the observations made by
Will Rogers, the humorist, in his daily letter published in the New York "Times" on Thursday of the
present week, as follows:
"To the Editor of the New York 'Times':
"Corona, Cal., Nov. 1G.—You couldn't pick up a
3396
Financial Chronicle
Nov. 19 1932
paper for a year and a half but it told of the millions embarrassed institutions. Mr. Pomerene stated that
and millions of gold shipped to France, especially.
examiners from Cleveland and Washington had been
"Our whole export trade consisted of gold bars rushed to Pittsburgh to confer with private and State
to Europe. They tried everything from petty larceny bank officials. "We have set up machinery which
to manslaughter to get us off the gold. If they had
will enable us to loan every cent permitted under
been able to do it, their celebration would have been
the
law to the two National and one State banks in
bigger than the Armistice. I was in Europe and
that's all they talked of. Then for France to say Pittsburgh which have closed," Mr. Pomerene said.
The precise reasons for these various banking failthey can't pay!
"Here is the funny part about the whole thing. ures have not been disclosed, but they appear all to
Why don't they default? Oh, no; they never use be local in character and apparently without sigthat word. They don't want it said they 'defaulted.' nificance outside the localities where they occurred.
Yours, WILL ROGERS."
HE Federal Reserve returns this week disclosed
week.
present
comes
no new or special features. Changes were
failures
the
bank
of
CROP
as a reminder that the country is not yet com- along much the same lines as in previous weeks, expletely out of the woods as far as banking difficul- cept that the amount of Federal Reserve notes in
ties are concerned, notwithstanding the assurances circulation this time shows a decrease, the total
that have come so plentifully from Washington in having dropped from $2,715,299,000 Nov. 9 to $2,699,that respect in recent periods, and notwithstanding 747,000 Nov.16, as against increases in the two weeks
also the activities of the Reconstruction Finance preceding. Presumably there was some further inCorporation, whose special function it is to relieve crease in the issue of National bank circulation,
institutions financially embarrassed—that is, where though the total of money in circulation is reported
embarrassment has not proceeded so far as to make as $22,000,000 down for the week. There is also some
the case absolutely hopeless. At the beginning of slight decrease in the volume of Reserve credit outthe month, it may be recalled, 12 banking corpora- standing, this being reported at $2,197,999,000 the
tions in the State of Nevada controlled by the present week as against $2,201,079,000 last week, the
George Wingfield interests went to the wall, creat- measure used being the total of the bill and security
ing a situation so serious that a so-called "business holdings. There are no changes of consequence in
and bank holiday" extending until November 12 the different items making up the total of these holdwas declared by the Chief Executive of the State. ings, aside from the fact that the discount holdings
The present week Oklahoma has had a similar un- again show a slight further reduction, the amount
fortunate experience. On Monday news came from having been reduced from $310,953,000 to $307,Oklahoma City of the closing of six Oklahoma banks, 172,000. These discount holdings reflect member
the largest the Shawnee National, with combined de- bank borrowing, which has been sharply diminishing
posits of over $3,000,000, all members of a chain of since National banks have been endowed with the
28 State and National institutions controlled by privilege of taking out additional bank circulation.
H. T. Douglas. State Bank Commissioner W. J. The holdings of acceptances and of United States
Barnett said the affiliated banks were closed fol- Government securities remain substantially unlowing inability of Mr. Douglas to collateralize ap- changed, the one at $34,524,000 against $34,002,000,
proximately $1,250,000 in loans as demanded by and the other at $1,850,734,000 as against $1,850,697,000. Gold reserves have further risen in the subEastern creditors.
1
2 million dollars.
On the same day news came that owing to heavy stantial amount of, roughly, 17/
withdrawals of deposits and shrinkage of securities. Nevertheless, the ratio of total reserves to deposit
the Diamond National Bank of Pittsburgh, organ- and Federal Reserve note liabilities combined reized about 60 years ago, had not opened for business mains unchanged at 62.4%. This is due to the fact
on that day, the Board of Directors having voted to that though the amount of Federal Reserve notes
suspend and place the bank's assets in the hands of in circulation has diminished during the week, as
the Comptroller of the Currency. The Diamond Na- already noted, on the other hand the deposit liabilitional's deposits are said to have shrunk about $17,- ties have increased during the week from $2,404,000,000 during the past 18 months. The deposits 458,000 to $2,459,125,000, the increase being mainly
at the time of closing amounted to $9,919,000. The in the item of member bank reserves, which increased
Sept. 30 return, under the call of the Comptroller of from $2,342,333,000 to $2,399,722,000. The putting
the Currency, showed $12,045,917 in deposits, $16,- out of additional National bank circulation serves
049,423 in resources, $600,000 in capital stock, and both to increase member bank reserves and to dimin$1,500,000 in surplus. The bank's President, J. D. ish member bank borrowing.
With the diminution in the amount of Federal ReCallery, died in May, and no successor had been
appointed. On Tuesday there followed the closing serve notes in circulation there has come also a reof the Duquesne National Bank of Pittsburgh, due duction from $424,900,000 to $423,300,000 in the
to the "depressed conditions of business and unusual amount of United States Government securities
heavy withdrawals." In its statement for Sept. 30 pledged as collateral behind Federal Reserve notes.
this bank reported a capital stock of $500,000, sur- The holdings of acceptances at this center for account
plus of $1,000,000, and total resources of $9,178,451. of foreign central banks has been further reduced
• Still another Pittsburgh institution, namely the Real during the week from $37,916,000 to $34,954,000; 12
Estate Savings & Trust Co., went to the wall on months ago, on Nov. 18 1931, tliese holdings for
Wednesday. This bank had a capital of $400,000, account of foreign banks still aggregated $114,surplus of $134,882, and deposits of $2,699,462. In 685,000. Foreign bank deposits held by the Federal
the case of these Pittsburgh institutions Atlee Pome- Reserve banks are a little larger this week at $10,rene, Chairman of the Reconstruction Finance Cor- 922,000 against $10,737,000. A year ago, however,
poration, averred that the Corporation was prepared on Nov. 18 1931, these foreign bank depo4its still
to do everything within its power to assist the stood at $137,415,000.
A
T
Volume 135
ORPORATE
Financial Chronicle
3397
Oct. 26, during the period of the sensational collapse
4@
/
last month, with the range yesterday at $3.283
2. The grain markets, after early strength,
$3.301/
also showed renewed collapse, the December option
8c.
for wheat in Chicago having dropped back -to 421/
/8c. the close on Thursday of
yesterday against 437
last week, the Chicago Board of Trade having been
closed on Friday, it being Armistice Day. Cotton
also again showed a weakening tendency, spot cotton at New York being marked down to 6.35c. yesterday as against 6.70c. on Friday of last week. The
copper market likewise continued depressed, the
metal being freely available for domestic delivery at
5%c. a pound. At the same time there was nothing
particularly encouraging regarding conditions in
the steel trade, the "Iron Age" in its weekly report
saying that "outside the automobile industry, which
appeared to be pushing ahead with some degree of
aggressiveness, steel was finding little demand for
its products, and the coutiousness of buyers, so
noticeable before election, still continued in evidence." The steel mills continued to be engaged at
only about 19% of capacity, approximately the same
as in the previous week.
Considerable interest was manifested in the probabilities regarding the dividend declarations on American Tel. & Tel. and on Electric Bond & Share common, but no effect on the market was apparent when
news came that both dividends had been continued
unchanged at the regular rate—V.25 a share for the
2% on the
quarter on American Tel. & Tel. and 11/
common stock of the Electric Bond & Share Co.
Stocks of companies, however, closely affiliated with
Electric Bond & Share were among the conspicuous
weak features, particularly the preferred shares of
American Power & Light and Electric Pow6r*Sitight.
Those issues have suffered losses for the week of 6%
2 points
points in the case of the 6% preferred and 41/
on the preferred "A" stock of the American Power &
Light Co., and 3 points on the 6% preferred and 3%
points on the 7% preferred stock of the Electric
Power & Light Co., while the stock of Electric Bond &
Share continued heavy on the Curb Exchange.
Weakness in Electric Power & Light was ascribed
to the reduction in the preferred dividend of the
United Gas Co., which the Electric Power & Light
Co. controls. Brewery stocks or shares of companies
that seem likely to benefit by the legalization of the
manufacture of beer were a less conspicuous feature
than was the case last week. However, General
American Oar closed'yesterday at 17 as against 183
8
/
on Friday of last week; Crown Cork & Seal closed
at 21 against 21½; Canada Dry Ginger Ale closed
at 12 against 12%; Liquid Carbonic at 16% against
187
8, and Owens Illinois Glass at 361/
/
4 against 39%.
Among the gold stocks, Homestake Mining closed at
HE New York stock market, after the post-elec- 155 ex-div. against 147 on Thursday of last week.
tion rise of last week, turned downward again Bond prices were weak in the case of the low-priced
the present week, losing a good part of the advances railroad issues, but presented a firm front in the
established last week. There were no really new de- case of the higher grade issues. Among the stocks
velopments, and trading was very limited in charac- dealt in on the New York Stock Exchange 13 stocks
ter, with the result that in the absence of buying established new high records for the year during the
orders prices simply drifted lower from day to day. week, while seven stocks sold down to new low figThe agitation of the question of the payments due in ures for the year 1932. Call loans on the Stock ExDecember to this country by Great Britain; France change again remained unaltered at 1%.
Trading has been very limited, only occasionally
and other countries acted as a deterrent on speculation for a rise, and the renewed weakness of sterling reaching a million shares a day. At the. half-day
exchange was also an adverse feature, cable trans- session on Saturday last, the sales on the New York
fers on London selling down on Thursday to $3.27%, Stock Exchange were 888,752 shares; on Monday
or not far from the low figure of $3.27% reached on they were 1,307,345 shares; on Tuesday, 1,048,980
dividend declarations the present
considerable notice. Inattracted
week have
action of the American
the
on
largely
centered
terest
on that of the Elecand
Co.
Telegraph
&
Telephone
Tel.& Tel. reported
American
Co.
Share
&
Bond
tric
use during July,
in
telephones
268,000
of
loss
net
a
a loss of 201,000 in August, a further loss of 90,000
in September, and of 105,000 telephones in October,
and really made a poor income showing for the September quarter, but nevertheless met expectations in
declaring the regular quarterly,dividend of $2.25 a
share on the common stock, involving the payment
of a total of approximately $42,000,000, accumulated
surplus being drawn upon to meet the current deficiency in income. The Electric Bond & Share Co.
2% in
also announced the regular dividend of 11/
common stock on the outstanding common shares,
but decided in view of existing conditions to consider
dividends on the common stock annually hereafter
instead of quarterly. Directors of R.H. Macy & Co.,
Inc., declared the regular quarterly dividend of 50c.
a share, but announced discontinuance of the practice of paying stock dividends previously in effect
for the last five years. Coca-Cola Co. declared the
regular quarterly dividend of $1.75 on the common
shares, but omitted the extra dividend of 25c. a share
previously paid each quarter. Coca-Cola International Corp., in conformity with the action taken by
the Coca-Cola Co., decided to omit the extra payment
of 50c. a share on the common stock, but declared
the regular quarterly dividend on this issue of $3.00
a share. The United Gas Corp. reduced the quarterly dividend on the $7 cumul. non-voting preferred
stock from $1.75 to 87y2c. J. J. Newberry Co. reduced the quarterly dividend on common from 271/
2c.
a share to 25c. a share. The General Gas & Elec.
Corp. omitted the quarterly dividend on the $6
cumul. preferred stock series "A" and the $6 cumul.
cony, preferred series "B." The Cincinnati New Orleans & Texas Pacific Railway omitted the semiannual dividend ordinarily payable about Dec. 26 on
the common stock. Previously the company paid
regular semi-annual dividends of 4% on this issue,
and in addition paid extra dividends. The Western
Railway of Alabama omitted the semi-annual dividend ordinarily payable about Dec. 31 on the capital
stock. A distribution of $2 a share was made on
June 30 last, as compared with $4 a share semiannually from 1925 to and including 1931. In the
railroad world the Chesapeake & Ohio retained the
rare distinction of holding its dividend unchanged
through the depression by declaring the regular quar2c. a share. It is also one of
terly dividend of 621/
companies
of
any kind to earn its regular
few
the
dividend in 1932.
C
T
3398
Financial Chronicle
shares; on Wednesday, 947,435 shares; on Thursday,
709,040 shares, and on Friday, 728,290 shares. On
the New York Curb Exchange the sales last Saturday
were 124,410 shares; on Monday, 205,510 shares; on
Tuesday, 177,290 shares; on Wednesday, 186,230
shares; on Thursday, 92,100 shares, and on Friday
110,110 shares.
As compared with Friday of last week, prices are
quite generally lower. General Electric closed yesterday at 163/i against 183' on Friday of last week;
Brooklyn Union Gas at 773 against 803/2; North
American at 29 against 313%; Standard Gas & Elec.
at 163/2 against 183/
2; Consolidated Gas of N. Y.
3 against 613/g; Pacific Gas & Electric at 273/i
at 57%
against 2834; Columbia Gas & Elec. at 13 against
143
%; Electric Power & Light at 73% against 9%;
Public Service of N. J. at 483% against 503% ;International Harvester at 223
% against 243; J. I. Case
Threshing Machine at 423/2 against 44; Sears, Roebuck & Co. at 197/i against 213/
2; Montgomery Ward
& Co. at 133 against 1434; Woolworth at 373/2
against 393/s; Safeway Stores at 51 against 523/
8;
Western Union Telegraph at 31 against 35%; American Tel. & Tel. at 1073/2 against 11234; International
Tel. & Tel. at 93% against 11%; American Can at
533/2 against 563/2; United States Industrial Alcohol
at 273% against 315
/s; Commercial Solvents at 103/2
against 1134; Shattuck & Co. at 83/2 against 9, and
Corn Products at 513/ against 543%.
Allied Chemical & Dye closed yesterday at 7734
against 81 on Friday of last week; Associated Dry
Goods at 6 bid against 6%;E. I. du Pont de Nemours
at 3634 against 393/8; National Cash Register "A"
at 9 against 1134; International Nickel at 8% against
938; Timken Roller Bearing at 143/2 ex-div. against 16;
Johns-Manville at 223/2 against 253%; Gillette Safety
Razor at 1734 against 183%; National Dairy Products
at 183% against 19%; Texas Gulf Sulphur at 23
against 245
/s; Freeport Texas at 26 against 2734;
American & Foreign Power 73% against 9%; United
Gas Improvement at 183/2 against 193/8; National
Biscuit at 40 against 41%; Coca-Cola at 815
% against
91; Continental Can at 35 against 35%; Eastman
Kodak at 5234 against 55%3; Gold Dust Corp. at
16 against 17%; Standard Brands at 153
% against
163/8; Paramount Publix Corp. at 334 against 33%;
Kreuger & Toll at % against %; Westinghouse Elec.
& Mfg. at 283/2 against 313/
8; Drug, Inc. at 34 against
38%; Columbian Carbon at 273
% against 3234; Reynolds Tobacco class B at 283/2 against 309/s; Liggett
& Meyers class B at 563/i against 62%3; Lorillard at
1334 against 1434; American Tobacco at 633/s against
6834, and Yellow Truck & Coach at 4 against 432.
The steel shares have participated in the general
decline. United States Steel closed yesterday at
3 on Friday of last week; Bethlehem
3534 against 39%
Steel at 173/2 against 203/8, and Vanadium at 135
%
against 1534. In the auto group Auburn Auto closed
yesterday at 44 against 49 on Friday of last week;
General Motors at 14 against 153/2; Chrysler at 153/2
against 17; Nash Motors at 13% against 143/2;
Packard Motors at 23/2 against 3; Hudson Motor Car
at 53% against 53/2, and Hupp Motors at 23/2 against 3.
In the rubber group Goodyear Tire & Rubber closed
yesterday at 1634 against 19%; B. F. Goodrich at
53/2 against 7; United States Rubber at 53/2 against 6,
and the preferred at 932 against 113%.
The railroad shares have been especially weak
features. Pennsylvania RR. closed yesterday at 14
against 163/g on Friday of last week; Atchison Topeka
Nov. 19 1932
& Sante Fe at 415
% against 46%3; Atlantic Coast Line
at 193
% against 253/2; Chicago Rock Island & Pacific
at 53/2 against 7; New York Central at 23% against
263
4; Baltimore & Ohio at 12 against 1394; New
Haven at 1434 against 173/2; Union Pacific at 6994
against 7438; Missouri Pacific at 43
4 against 55A;
Southern Pacific at 183
4against 22; Missouri-Kansas3 Southern Ry. at 73/2 against
Texas at 6% against 7/s;
9; Chesapeake & Ohio at 233
4 against 253/2; Northern
Pacific at 15 against 1694, and Great Northern at
10% against 133/2.
The oil shares show moderate declines. Standard
Oil of N. J. closed yesterday at 31 against 323/2 on
Friday of last week; Standard Oil of Calif. at 261
4
against 273/s; Atlantic Refining at 163/2 against 17%,
and Texas Corp. at 1534 against 153/2. The copper
group has moved sharply downward on the unsatisfactory price of the metal. Anaconda Copper closed
yesterday at 93% against 11% on Friday of last week;
Kennecott Copper at 11 against 13; American Smelting & Refining at 16 against 1734; Phelps Dodge at
6 against 63/2; Cerro de Pasco Copper at 83/2 against
9, and Calumet & Hecla at 33/2 against 33
4.
—8--TOCK markets in all the important European
financial centers were extremely dull this week,
with the trend of prices toward lower levels in all
instances and at almost all sessions. The exchanges
in London, Paris and Berlin were depressed over
the prospect of a prolonged controversy on the subject of intergovernmental debts. This factor was
especially apparent as an influence on the London
Stock Exchange, reports said. The Paris Bourse
was unsettled in addition by the current difficulties
in balancing the French national budget. A cabinet
crisis developed in Germany and created uncertainty
on the Berlin Boerse. European financial and trade
reports, on the other hand, are rather favorable. In
an unofficial meeting of directors of the Bank for
International Settlements, last Sunday, optimistic
views on the world monetary situation are said to
have prevailed. There was little comment this week
on British and French trade returns, but the German
business situation appears to be decidedly on the
mend. The Bureau of Statistics in Berlin reports
gains in many industries, and a substantial increase
in the German foreign trade figures for October also
is indicated.
The London Stock Exchange opened with a firm
tone, Monday, but business was on a small scale and
the market tone became soft later in the day. British
funds lost a little ground, but showed much greater
stability than in last week's sessions. The industrial
section of the market was unsettled by weakness in
tobacco stocks, and the downward trend was resisted only by a few issues. Anglo-American stocks
were marked down on unfavorable week-end reports
from New York. In Tuesday's session the London
market again was quiet and depressed. Turnover
was reduced even from the small figures of the preceding session. British funds continued to drift
lower, and almost all home industrial stocks also
lost ground. International stocks were soft on further depressing reports from New York. The tone
Wednesday was likewise dull, with much anxiety
expressed regarding the American reply to be made
on the war debt note. British funds remained 'soft,
and home rail stocks joined the movement when poor
traffic returns were announced. Industrial stocks
were lower at the opening. but some improvement
S
Volume 135
Financial Chronicle
developed in this section later and small net gains
resulted. International stocks were featureless.
After a slightly better opening, Thursday, prices resumed their downswing on the London market.
Growing apprehensions that the war debt appeal
will not prove effective, caused renewed declines in
British funds. In the industrial market prices were
generally lower, while international issues also were
marked down. The trend to lower values was resumed in a further quiet session yesterday.
The Paris Bourse was irregular in the initial session of the week. The opening was weak, but some
buying appeared at the lower levels and most of
the recessions were wiped out before the close. Trading was on a small scale. The market Tuesday was
largely a repetition of the previous session. After
a lower opening, prices strengthened and a large
part of the initial declines were regained. The fortnightly settlement was easily effected, with money
for the carry-over quoted officially at 1/
8 of 1%. An
unsatisfactory debate on the national budget in the
Parliament unsettled the Bourse Wednesday. Rentes
were especially heavy in this session, while other
securities also closed lower after see-saw variations.
The market was hesitant,Thursday,owing to general
uncertainty regarding the war debt position. A few
stocks showed small gains for the session, but the
majority of issues resumed their slow downward
drift. Small declines were registered on the Bourse
in quiet dealings yesterday.
The Berlin Boerse was unsettled, Monday, by the
increasing evidences of political disaffection. Business was exceedingly dull, and stocks showed small
losses on a modest amount of liquidation by professional operators. Extreme dullness characterized
the market Tuesday, as well, and further small recessions were recorded. Small offerings were sufficient to depress prices, as there was almost no buying interest. The Boerse was closed Wednesday, in
observance of the Atonement Day holiday. When
trading was resumed, Thursday, the market again
moved downward. Some improvement appeared
later, however, on rumors that the von Papen Cabinet would resign. The decline was resumed in the
final hour, when the rumors were not confirmed, and
small net losses were registered for the day in most
stocks. Overnight confirmation of the reports that
Colonel von Papen would,resign occasioned an advance yesterday on the Boerse.
3399
meats in Europe also are expected to take similar
action.
With the merits of these appeals and the situation
which called them forth we are dealing in a subsequent article in this issue and also in some remarks
in the earlier portion of this article. The importance
attached to the communications by the present Administration in Washington is indicated strikingly
by the message dispatched by President Hoover last
Saturday to President-elect Roosevelt, suggesting an
early personal conference on this and other pressing
questions. Governor Roosevelt has agreed to an
interchange of views, while insisting, fittingly, that
the responsibility for the immediate decisions on
the European communications rests with the present
Executive and Congress.
The British note, signed by Ambassador Sir Ronald Lindsay, recalls that on June 22 1931 the British
Government subscribed whole-heartedly to the principle of the proposal made by President Hoover for
the postponement during one year of all payments
on intergovernmental debts. Hopes raised by the
President's initiative have not been realized, it is
pointed out,and the economic troubles have not come
to an end. Secretary of State Stimson also was
reminded that in October 1931 a communication published at Washington on the occasion of the visit of
the then Premier of France,Pierre Laval, recognized
that "prior to the expiration of the Hoover year,
some agreement on intergovernmental obligations
may be necessary covering the period of the business
depression. The initiative on this matter should be
taken early by the European Powers principally concerned within the framework of the agreements existing prior to July 15 1931." Many thoughtful men
throughout the world are now convinced, the British
note adds, that further remedial measures must be
sought if the depression is to be overcome.
Attention likewise was called by Sir Ronald Lindsay to the Lausanne agreements of July 9 last, which
aim at the ultimate termination of all reparations
payments. Those agreements were described as the
"maximum contribution in the field of intergovernmental finance which the governments concerned
have so far been able to make toward that early
restoration of world prosperity in which the people
of the United States, no less than those of the British
Commonwealth of nations, have so deep an interest,
and for the achievement of which the co-operation of
the United States is essential." The note referred
I N formal communications to Washington couched to
previous expressions of the British Government
in somewhat similar terms the British and French, regarding
the nature of the remedial measures that
Governments called late last week for a re-examinamay have to be adopted, and added the firm conviction of the entire question of the war debt settle- tion
that the regime of intergovernmental obligaments and for a suspension, in the meantime, of the tions,
as now existing, must be reviewed. The
payments due to be made Dec. 15. The requests are
importance of speedy action was emphasized
contained in a British note and a French memoran- and
the hope expressed that an •interchange of
dum, both dated Nov. 10, and both made public in • views
can be arranged at the earliest possible
Washington last Monday. The Belgian Government
moment.
associated itself with the action of the two leading
It was remarked,finally, that the next installment
European governments in a memorandum dated of the
British war debt is due to be paid Dec. 15
Nov. 15. Contrary to early reports, the Italian Gov- next. Agreement
on the general subject of the debts
ernment has not addressed any formal communica- is not likely
to be reached in the intervening weeks,
tion to the United States Government on this sub- the note added. At
Lausanne, last summer, it was
ject, but Rome reports indicate that Italy is merely found necessary to
reserve during the period of the
waiting to study the American reaction to the other conference the
execution of the reparations payments
requests before deciding on a similar move. Warsaw due to the
participating Powers, it was recalled.
dispatches state that the Polish Government has "His Majesty's
Government in the United Kingdom
under consideration a similar appeal to the hope that a similar
procedure may now be followed,
United States, and a number of other govern. and ask for a suspension
of the payments due front
3400
Financial Chronicle
them for the period of the discussions now suggested,
or for any other period that may be agreed upon,"
the note stated. The suggestion was added that the
proposed discussions could best begin in Washington,where they would be conducted for Great Britain
by the Ambassador.
The French memorandum, submitted by Ambassador Paul Claudel,expressed serious concern with the
effect of the problems arising from the intergovernmental debts. It was deemed of "vital importance
to approach the Government of the United States,
asking it to co-operate in examining this question
in a spirit of frankness and true friendliness."
France also called attention to the Lausanne conference, declaring that her very heavy sacrifices
there were based upon the principles expressed in
the Hoover-Laval communications of Oct. 25 1931,
and the proposal by President Hoover in June 1931
for a one-year suspension of intergovernmental payments. "Important as were the effects of the Lausanne conference," the memorandum continued, "it
must be said that the economic and financial difficulties which stand in the way of a resumption of
normal relations between nations are still present,
and that a further effort must be made to put an
end to them in the interest of all." As an indication
of the active interest taken by France in the economic recovery of Europe, the attitude of her representatives at Lausanne and Stresa was cited, and
it was added that France is no less anxious to cooperate in bringing about the success of the world
economic and monetary conference.
"It is in this very same spirit," the French memorandum states, "that the French Government to-day
proposes to the Government of the United States to
join with it in a further study of the debt question.
Inasmuch as such a study will, by virtue of circumstances, require too much time for a speedy conclusion to appear probable,the French Government asks
that,in accordance with the process followed at Lausanne, an extension of the suspension of payments
may be granted to the French Government in order
that the study of the present serious problems now
under discussion may be continued and completed
in the necessary atmosphere of mutual trust. The
French Government is further convinced that such
a step would have the most helpful effect on the
monetary crisis which threatens so many nations."
The conviction was expressed that the point of view
of the French Government will be understood and
the request favorably received.
The Belgian Government, in its memorandum of
Nov. 15,simply associated itself with the British and
French governments and made a similar request in
respect of the payments due from Belgium. It was
noted in this communication that the British and
French governments, moved by a desire to alleviate
the difficulties resulting from the economic depres- •
sion, had proposed a re-examination of the problems
arising from the intergovernmental debts. The Lauanne agreements again were cited and attention
called to the suspension of payments while that conference was in progress, and a corresponding suspension of payments due from the Brussels Government
was requested. The unhesitating acceptance by Belgium of the Hoover proposal of June 1931 was recalled, and the sacrifices incurred at Lausanne also
were mentioned. "The Belgian Government remains
convinced," the memorandum adds, "that the difficulties with which the world is faced to-day cannot
Nov. 19 1932
be overcome unless the nations pursue a resolute
policy of co-operation and mutual assistance."
The similarity of the British and French appeals
caused a good deal of unofficial conjecture in this
country, and apparently occasioned some embarrassment in London and Paris. It was widely recalled
that the British and French governments announced
a consultative agreement after the conclusion of
the Lausanne meeting, and that other European governments quickly adhered to the principle of consultation on European questions. French officials were
first reported as believing that the consultative pact
meant concerted action on the debts due the United
States, but such reports were modified after it was
officially denied by Great Britain that the agreement applies to the British debt to the United States
Government. In a London dispatch of Nov. 14 to
the New York "Times" it was remarked that the
British Government's attitude is the same to-day as
it was in July, when the denial of any concerted
action with France was issued. France was informed of Great Britain's intentions in general
terms, however, because "the British do not want to
give the impression of trying to steal a march on
the French, thereby running the risk of increasing
difficulty in reaching a disarmament agreement at
Geneva," the dispatch said. A Paris dispatch of Nov.
12 to the New York "Times" quoted official statements of the French Government to the effect that the
British and French requests should not be regarded
as in any way joined. The hasty action after the
American election was regretted, but considered unavoidable. The interesting statement was added that
"it was at the direct request of the United States
Ambassadors in Europe that a kind of truce on the
debt discussion was observed during the electoral
period."
Save for the announcements of the communications to the United States Government on the debt
question, all the European governments concerned
maintained complete reticence on the subject this
week. Liberal and Labor members of the British
House of Commons attempted on several occasions
to elicit statements from the National Cabinet on
the problem, but no information was given. Neville
Chamberlain, Chancellor of the Exchequer, pointed
out on one occasion that the debt discussions can
safely be left to the British representative at Washington. He was asked Tuesday if the Government
would make a declaration to the United States that
it cannot continue to make the payments in gold,
but Mr. Chamberlain made no reply. In a report of
this discussion published in the New York "Times,"
it was remarked that the British Government "is emphatic enough in letting it be known there will be
no default or repudiation, but it maintains absolute
silence concerning the only alternative--that it can
and will pay if it has to." The reason for this is
fairly obvious, the dispatch added. "The British
realize," it was stated, "that any official announcements that they can pay would merely be used as
ammunition by the opponents of postponement in the
United States Congress during the debate that is
considered inevitable. It is already taken for
granted that many bitter attacks on Great Britain
and other debtor States will be made in that debate.
It is also realized that admission of the ability tO
pay would swamp all arguments that the British
negotiators hope to bring forth to show that payment
now would be as detrimental economically to the
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3402
Financial Chronicle
referred to as an "indivisible whole," in the French
statement. Although the plan caused disappointment elsewhere, it was treated with courtesy. The
French press, on the other hand, criticized the plan
in very plain terms. "There seems to be agreement,"
a Paris dispatch to the New York "Times" remarked,
"that the basis of the whole pyramid of pacts, covenants and conventions on which the plan is to be
built up is very uncertain."
Sir John Simon,Foreign Secretary in the National
Cabinet, placed a British plan before the Bureau
Thursday. He proposed to satisfy the German demand for equality in armaments by -allowing the
Reich to have the same kind of armaments as other
nations. European States in general, under this
scheme, would join in •a treaty or convention for
the settlement of present or future difficulties by
other means than a resort to force. Limitations on
armaments &mid then be made effective, he said,
with German armaments limited by the same disarmament agreement which defined the limitations
on the armaments of other nations. The essential
task of the conference, Sir John Simon declared,
is to get Germany back into the meetings. Principles
advanced to satisfy Germany's claim to equality
should apply likewise to the armaments of Austria,
Hungary and Bulgaria, lie continued. Any reorganization of Germany's forces, however, must "not
involve an increase in Germany's powers of military
aggression," the British Minister remarked. If Germany should be released from her 12-year military
service rule by reducing the term to six years, then
Germany's armed forces must be reduced from
100,000 men to 50,000 men,lie said. The British plan
was supported, so far as the equality provision is
concerned, by the Italian delegate at Geneva, an
Associated Press dispatch of Thursday said. Rene
Massigli, for France, announced that Paris would
stand by its proposals. Norman H. Davis, American
delegate at the gathering,-recalled the scanty results
of the meeting to date and urged the nations ref-resented to reduce armaments and not merely talk
about them.
Nov. 19 1932
purpose of financing the electrification of railways
in sucheountries as Poland, Rumania, Portugal and
Iraq. hi British financial circles there was little
enthusiasm for this project of stimulating public
works construction on the Continent, an Associated
Press report from London said.
SIGNATION of the Junker Cabinet in Germany, headed by Chancellor Franz von Papen,
was announced in Berlin, Thursday, after the failure
of protracted negotiations with party leaders, designed to secure the aid of the powerful Parliamentary groups for the regime. Termination of the
anomalous rule by Colonel von Papen and his chief
military supporter, General Kurt von Schleicher,
has revived hopes for democratic government in the
Reich. The resignation was submitted, it is understood, when the Junker Cabinet heads were unable
to secure the support of President Paul von Hindenburg for their plan to dissolve the new Reichstag and
rule by dictatorship. It is indicated in Berlin that
President von Hindenburg personally will conduct
negotiations for the formation of a national government that will be able to count on Parliamentary
support. His aim will be to form a Presidential
Cabinet, uniting the National-Socialist followers of
Adolph Hitler, the Nationalist party of Dr. Alfred
Hugenberg, the Catholic Centrists under former
Chancellor Heinrich Bruening, and minor Reichstag
groups. "The fate of these negotiations probably
will depend on the outcome of an interview between
the Field Marshal and Herr Hitler," a dispatch to
the New York "Herald Tribune" states. "If the
President persists in his refusal to intrust the Chancellorship to Herr Hitler, these negotiations are
likely to fail, as the Fascist newspapers insist that
Hitler's leadership in the Government is an indispensable condition of their participation." If the
effort to be made over the week-end by the German
President does not succeed, he is expected to form
an interim regime to rule over the winter months.
No change in German foreign policy or in the domestic economic program is expected to follow this
Cabinet crisis.
FRANCO-GERMAN economic consortium, to
After the Reichstag elections of Nov.6, Chancellor
which British bankers are to lend financial von Papen attempted to form a
coalition that would
aid, was announced in Paris, Wednesday. The plan provide a vote of confidence in the
new Chamber,
was evolved at a meeting of economic experts in which is scheduled to meet early
next month. He
Berlin, and it is the first fruit of the Franco-German found, however, that he could not
induce a single
Economic Commission,created as a result of the visit important party to follow him. The
Socialist party
to Berlin by former Premier Laval and former For- is said to have ordered its
leaders to decline his
eign Minister Briand, of France, last year. Opera- invitation for an interview. The
Catholic Centrists,
tions of the consortium, which will begin to function though willing to enter a
National concentration
next Spring, will be devoted to the financing of public Cabinet, refused to have anything
to do with a Cabiworks throughout Europe, with the aim of relieving net headed by a man they regard as
a renegade. Herr
unemployment. Raymond Patenotre, French Under- Hitler, who heads the largest
single block of ReichsSecretary of State for National Economy, made the tag members, finally informed
the Chancellor, early
plan public. "It has been agreed," a Paris dispatch Thursday, that lie would not
engage in personal conof Wednesday to the New York "Times" said, "that versations with him, but would
submit written views
bonds will be offered in London and Paris and even- "under certain conditions." The
collective resignatually in Berlin, and that 40% will be floated in tions of the Cabinet were
offered to President von
London, 40% in Paris and 20% in Berlin. All de- Hindenburg late the same day,
and accepted. The
tails are now being studied by bankers of the three President requested Colonel von
Papen to carry on
countries, who are preparing strong guarantees for until a succeeding Government
has been formed. It
investors, for one advantage .of the project, it is is generally conceded that this
marks the end of
hoped, will be to afford firmly secured investment the von Papen regime, Which came
into power June 1,
for a large amount of idle capital in European coun- after the resignation of the Bruening regime
was
tries." M. Patenotre was quoted as saying that a forced by the President. In the recent Reichstag
further consortium is under consideration for the elections the Nationalist party of Dr.
Hugenberg
A
Volume 135
Financial Chronicle
r as the only group dedicated to the support of Colonel von Papen and it secured only 10% of the
popular vote.
OMMUNISTS in Soviet Russia celebrated last
week the fifteenth anniversary of the revolution which placed all the country in the hands Of
the Bolsheviki. In Moscow the-event was made the
occasion, early in the week, for a huge parade,
in which 1,000,000 soldiers,sailors, workers and peasants, representing all the parts of the Soviet Union,
• marched past the highest officials of the Government. Commissar of War K. E. Voroshiloff was
the only speaker. He dwelt upon the immense successes in Socialist construction, achieved "at a time
when the rest of the world is unable to cope with
the depression." Only the first steps have so far
been taken and the future is bright with promise,
the Commissar said. In accordance with Soviet
custom, the capitalist system was represented as
about to topple into oblivion, with the depression
signalizing its end. The military phase of the celebration was carried out by the 50,000 troops of the
Moscow garrison. All observers agreed that the
units were well trained and much better equipped
than on any previous occasion.
An independent review of conditions in Russia,
presented in last Sunday's New York "Times" by
Walter Duranty, Moscow correspondent of• that
journal, hardly bears out the hopeful picture presented by the officials. The Soviet Union is in relatively better shape than most of the world, Mr.
Duranty states, but is not exempt from the effects
of the depression. There are no strikes between capital and labor, and there is no political strife to hamper the national effort. Severe curtailment, never• theless, has been found necessary in many directions,
partly as a result of declining Soviet exports. "Under the best conditions the Five-Year Plan would put
a heavy strain upon the nation, and as it was, shortcomings and failures appeared in many branches,"
the review states. "The shortage of consumers'
goods and the weakness in transportation reacted
unfavorably upon agriculture. Peasant energy and
initiative were dulled by failure to receive commodities in return for produce." The national food supply is considerably smaller than a year ago, it is
said, with real hardship facing some rural sections,
and a marked fall in the standard of living indicated
even in the cities. Soviet leaders are said to feel
that the difficulties are only temporary and can be
overcome without a change of policy. That drastic
steps are considered necessary in some directions
was shown last Saturday, when an order was issued
for the discharge of between 25,000 and 30,000 minor
employees in virtually every Government bureau.
They are to be assigned to farms and factories needing workers, it is said. By this means the Moscow
authorities hope to increase the efficiency and lower
the administrative costs of government, an Associated Press dispatch said.
C
HE Bank of England statement for the week
ended Nov. 16 shows a gain of £8,313 in gold
holdings and as this was attended by a contraction
of £1,813,000 in circulation, reserves rose £1,821,000.
Gold holdings now aggregate £140,451,771 in comparison with £121,770,967 a year ago. Public
deposits increased £20,000 and other deposits £1,982,637. The latter consists of bankers' accounts,
T
3403
which rose £2,641,710 and other accounts which fell
off £659,079. The reserve ratio is at 41.17% as compared with 40.42% last week and 33.57% a year
ago. Loans on Government securities rose £510,000
and those on other securities decreased £312,766. Of
the latter amount £4,112 was from discounts and advances and £308,654 from securities. The rate of
discount is unchanged at 2%. Below we furnish a
comparison of the different items for five years:
BANK OF ENGLAND'S COMPARATIVE STATEMENT.
1932
1931
1930
1929
1928
Nov. 16.
Nov. 18.
Nov. 19.
Nov. 20.
Nov. 21.
£
Circulation
2359,397,000 354,614,998 353,740,322 355,087,000 132.802,375
Public deposits
20,447.000 21,213,372 17,779,906 15,340,000 14,898,189
Other deposits
115,698,087 92,279,062 92,414,233 97.087,831 99,472,150
Bankers accounts. 82,499,930 59,662,473 59,460,865 58,544,923
Other accounts.
33,198,157 37,616,589 32,953,368 38,544,908
Government securs_ 68,563,094 51,005,906 33,431,247 62,498,855 48,340,327
Other securities
29,273,525 43,068,162 29,262,196 29,952,118 34,757,491
Disct. de advances 11.795,039 12,067,781
4,398,154 8,108,161
Securities
17,478.486 31,000,381 24,864,042 21,843,957
Reserve notes de coin 56,054,000 42,155,969 65,225,250 37,742,000 49,032,214
Coin and bullion_ _ _140,451.771 121,770,967 158,965,572 132,830,637 162,084,589
Proportion of reserve
to liabilities.
41.17%
35.57%
59.19%
33.57% 42 13-16%
Bank rate
2%
3%
6%
534%
434%
a On Nov. 29 1928 the fiduciary currency was amalgamated with Bank of England
note issues adding at that time £234,199,000 to the amount of Bank of England
notes outstanding.
HERE have been no changes the present week
in the discount rates of any of the foreign
central banks. Present rates at the leading centres
are shown in the following table:
T
DISCOUNT RATES OF FOREIGN CENTRAL BANKS.
Country.
Rate in
Effect
Dale
Nov.11 Established.
Austria__ __ 6
Belgium... 334
Bulgaria__ 834
Chile
434
Colombia
5
Czechoslovakia ___ 434
Danzig__ _ 4
Denmark _ _
334
England_ __
2
Estonia_ _ _ 534
Finland__ 634
France ____ 234
Germany __ 4
Greece __ 10
Aug. 23 1932
Jan. 13 1932
May 17 1932
Aug. 23 1932
Sept. 19 1932
Prepious
Rate.
7
234
934
534
8
Sept.24 1932 5
July 12 1932 5
Oct. 12 1932 4
June 30 1932 234
Jan. 29 1932 634
Apr. 19 1932 7
Oct. 9 1931 2
Sept. 21 1932 5
Aug. 8 1932 11
Country.
Rate in
Effect
Date
Nov.11 Established.
Holland _ __
Hungary__
India
Ireland__
Italy
Japan
Lithuania
Norway _
_ _.
Poland_
Portugal_
Rumania
Spain
Sweden
Switzerland
234 Apr. 18 1932
434 Oct. 17 1932
4
July 7 1932
3
June 30 1932
5
May 2 1932
4.38 Aug. 18 1932
7
May 5 1932
4
Sept. 1 1932
6
Oct. 20 1932
634 Apr. 4 1932
7
Mar. 3 1932
6
Oct. 22 1932
334 Sept. 1 1932
2
Jan. 22 1931
Pretdous
Rate.
3
5
5
334
6
5.11
734
434
734
7
8
634
4
234
In the London open market discounts for short
bills on Friday were %®%%,as against 11-16@3%%
on Friday of last week, and 13-16@%% for three
months' bills as against 13-16@Y% on Friday of
last week. Money on call in London on Friday was
M%. At Paris the open market rate continues
at 1 8%,and in Switzerland at 13/2%.
—4-HE Reichsbank's statement for the second quarter of November shows a gain in gold and bullion of 7,869,000 marks. The Bank's bullion now
stands at 825,152,000 marks, as compared with
1,038,008,000 marks last year and 2,179,847,000
marks the previous year. Decreases appear in reserve in foreign currency of 17,290,000 marks, in
bills of exchange and checks of 137,248,000 marks,
in advances of 3,829,000 marks, in other assets of
53,207,000 marks,in other daily maturing obligations
of 8,566,000 marks and in other liabilities of 19,264,000 marks. Notes in circulation reveal a loss of
loss of 88,655,000 marks, reducing the total to 3,413,583,000 marks. A year ago circulation aggregated
4,453,459,000 marks and two years ago 4,130,784,000
marks. Silver and other coin, notes on other German banks and investments record increases of
52,091,000 marks, 2,590,000 marks and 32,539,000
marks respectively. The proportion of gold and
foreign currency to note circulation is now 27.2%,
which compares with 26.7% a year ago. Below we
furnish a comparison of the various items for three
years:
T
3404
Financial Chronicle
REICHSBANK'S COMPARATIVE STATEMENT.
Changes
Not'. 15 1932. Noe. 14 1931. Nov. 15 1930'
for Week.
Retchsmarks. Retchsmarks. Retchmarks.
Retchsmarks.
Assets—
Inc. 7.869.000 825,152,000 1,038,008,000 2,179,847,000
Gold and bullion
93,004.000 221,376,000
Of which depos. abr'd- Unchanged.
61,252,000
Res've in for'n curr- Dec. 17.290,000 104,536,000 151,774,000 485,906,000
3,781,369 1,664,817,000
Bills of exch. & checksDec. 137,248,000 2,657.645,000
Silver and other coin_ _Inc. 52,091,000 237,776,000 118.848,000 176,553,000
8,534,000
10,44E000
Notes on oth.Ger.bks-Inc. 2,590,000
19,860.000
98,377.000
Advances
95,312,000 133,364,000
Dec. 3,829,000
Investments
Inc. 32,539,000 394,885,000 .102,884,000 102,474,000
Other assets
Dec. 53,207,000 865,765,000 894,904,000 471,906,000
Liabilities—
Notes In drculation Dec. 88,655,000 3,413.58E000 4,453,459,000 4,130,784,000
Oth.dally matur.oblig.Dec. 8,566,000 357,645,000 406,836,000 281,711,000
Other liabilities
Dec. 19,264,000 746.444.000 862,059,000 293,318,000
Propor. of gold & foen
64.5%
26.7%
curr, to note circul_Inc.
27.2%
0.4%
Nov. 19 1932
EALING in detail with call loan rates on the
Stock Exchange from day to day, 1% was the
ruling quotation all through the week both for new
loans and renewals. The time money market has
been without apparent movement this week. Rates
are quoted nominally at M% for 30 to 90 days,
Y
i% for four months' maturity and 1% for five and
six months' maturity. The commercial paper market
has been greatly restricted this week on account
of the shortage of offerings. Quotations for choice
names of four to six months' maturity are 13/2@1%%.
Names less well known are 2%. On some very high—4
--class paper occasional transactions at 13/2% are
HE weekly statement of the Bank of France, noted.
4—
dated Nov. 11, shows a gain in gold holdings
of 197,623,991 francs. Total gold holdings are now
HE market for prime bankers' acceptances has
83,233,443,734 francs, in comparison with 67,580,been extremely quiet this week. The demand
-324,767 francs last year and 51,380,027,411 francs continues good, but the supply of paper is extremely
the year before. Credit balances abroad increased short. Rates are unchanged. The quotations of
3,000,000 francs, while bills bought abroad declined the American Acceptance Council for bills up to and
66,000,000 francs. Notes in circulation reveal a including three months are 4
5 % bid, 3% asked;
contraction of 709,000,000 francs, reducing the total for four months, 4
3 % bid and %% asked; for five
of notes outstanding to 82,313,581,015 francs. Cir- and six months, 1% bid and 4%
7
asked. The bill
culation a year ago stood at 82,276,258,025 francs buying rate of the New York Reserve Bank is 1%
and two years ago at 74,698,198,450 francs. French for 1-90 days; 11
4% for 91-120 days, and 1
for
commercial bills discounted and advances against maturities from 121-180 days. The Federal Reserve
securities record decreases of 196,000,000 francs and banks show a trifling increase in their holdings of
132,000,000 francs, while creditor current accounts. acceptances, the total having fallen from $34,002,000
increased 434,000,000 francs. The proportion of last week to $34,524,000 this week. Their holdings
gold on hand to sight liabilities stands this week at of acceptances for foreign correspondents decreased
77.76%, as compared with 59.86% last year. Below during the week from $37,916,000 to $34,954,000.
we furnish a comparison of the various items for Open market rates for acceptances are as follows:
three years:
SPOT DELIVERY.
D
T
T
BANK OF FRANCE'S COMPARATIVE STATEMENT.
Status as ofChanges
Nov. 111932. Nov. 13 1932. Nov. 14 1932.
for Week.
Francs.
Francs.
Francs.
Francs.
Gold holdings_ _ _ Inc. 197.623,991 83.233,443,734 67,580,324,767 51,380,027,411
3,000,000 2.988,102,022 13,094,878,764 6,513,085,284
Credit bale. abed_Inc.
a French commeel
bills discounted_ Dec. 196,000,000 2,580,997,593 6,970,504,928 7,575,571,639
b Bills bo't abed_Dec. 66,000,000 1,930.777.415 11,326,374,355 19,135,146,005
Adv.agst.securs__Dec. 132,000,000 2.546.039,629 2,799,395,454 2,914,494,584
Note circulation_ _Dec. 709,000,000 82,313,531,015 82,276,258,075 74,698,198,450
Cred. curt'. acc'ts_Inc. 434,000,000 24.727,622,840 30,614,736,834 22,473,662,063
Proportion of gold
on hand to sight
77.76%
59.86%
52.88%
Inc.
0.38%
liabilities
a Includes bills purchased In France. b Includes bills discounted abroad.
RANSACTIONS in the New York money market
remained diminutive this week, and rates were
unchanged in all departments. Demand for funds
is far under the supply induced by the open market
operations of the Federal Reserve banks. Brokers
see little likelihood of any early change in rates, in
these circumstances. After a meeting of Federal
Reserve heads in Washington, Tuesday, it was
indicated that approximately $1,800,000,000 of
United States Government securities held by the
banks will be retained in their portfolios. The
Treasury did $75,480,000 of 91-day discount bill
financing, Monday, at an average rate of 0.21%.
Call loans on the New York Stock Exchange were 1%
for all transactions this week, whether renewals or
new loans. An abundance of funds was available in
Time loan
the unofficial Street market at
minimum.
with
business
at
a
rates were unchanged,
Brokers' loans against stock and bond collateral
declined $16,000,000 in the week to Wednesday
night, according to the report of the Federal Reserve
Bank of New York. Gold movements in the same
period at New York consisted of imports of $1,180,000
and a net decrease in the stock of the metal held earmarked for foreign account by $6,833,000. There
were no exports.
T
Prime eligible bills
—180 Days-- —160 Dogs—
BSC Asked.
Bid. dated.
1
II
1
14
--40 Dap—. —40Days—
BM Asked.
Md. diked.
Prime eligible bills
%54
fi
34
FOR DELIVERY WITHIN THIRTY DAYS.
Eligible member banks
Eligible non-member banks
1% bid
1% MS
HERE have been no changes this weetf in the
rediscount rates of the Federal Reserve banks.
The following is the schedule of rates now in effect
for the various classes of paper at the different
Reserve banks:
T
DISCOUNT RATES OF FEDERAL RESERVE BANKS ON ALL CLASSES
AND MATURITIES OF ELIGIBLE PAPER.
Federal Reserve Bank.
Barton
New York
Philadelphia
Cleveland
Richmond
Atlanta
Chicago
St. Louis
Minneapolis
Kansas City
Dallas
San Francisco
Rata ea
MAW an
Nov. 18.
Dago
Establishai.
Previous
Raze.
834
234
354
854
334
344
234
854
344
334
334
834
Oct. 17 1981
June 24 1932
Oct. 22 1931
Oct. 24 1931
Jan. 25 1932
Nov. 14 1931
June 25 1932
Oct. 22 1931
Sept. 12 1930
Oct. 23 1931
Jan. 28 1932
Oct. 21 1021
234
8
3
3
4
8
834
244
4
3
4
2W
TERLING exchange is essentially unchanged
from last week in all important respects.
Aside from a certain hesitancy in trading created
by the recent proposals for revision of the war
debts, there has been no vital change in the Situation
since the end of September. The range this week
% and 3.343 for bankers'
has been between 3.275
sight bills, compared with a range of between 3.277
4
and 3.32% last week. The range for cable transfers.
.has been between 3.273
4 and 3.345%, compared
-with a range of between 3.283. and 3.33 a week ago.
It will be recalled that on Friday of last week there
was a wild and erratic market dominated by the new
developments in the war debt situation, when sterling
S
Volume 135
Financial Chronicle
3405
8c. on the day. Much Nov. 16, as reported by the Federal Reserve Bank
/
shot up to 3.32%, a gain of 43
y of New York, was as follows:
the same kind of market characterized day-to-da
GOLD MOVEMENT AT NEW'YORK, NOV. 10-18, INCLUSIVE.
sterling
when
,
Thursday
until
trading this week
Exports.
Imports.
4. Throughout the week
$987,000 from Newfoundland
slid off to around 3.273
113,000 from Mexico
traders found it difficult to do business as the rate
None
80,000 chiefly from LatinAmerican countries
jumped at times as much as a quarter of a cent
between transactions. There was fairly good buy- $1,180,000 total
Net Change in Cold Earmarked for Foreign Account.
ing in New.York, but here as in most other centers
Decrease: $6,833,000
of
purpose
the
for
largely
be
to
seemed
buying
the
are for the week ended Wedfigures
above
The
covering short positions. Offerings have been small
Thursday there were no
On
evening.
nesday
Friday
for the past few weeks. The advances since
metal nor was there any
the
of
exports
or
imports
withentirely
made
of last week seem to have been
d for foreign account.
earmarke
held
in
gold
change
British
the
but
support,
out noticeable official
imported, $240,200
was
gold
of
$357,600
Yesterday
extent
some
to
market
in
the
been
Treasury has
from Mexico.
$117,400
and
Holland
from
coming
On
seller.
and
buyer
as
both
day
nearly every
on that day,
metal
Thursday of this week when sterling again slid off, There were no exports of the
account de'foreign
for
d
New York traders reported that no actual business but gold held earmarke
Wednesended
week
the
For
0.
was done at the lower levels. The shorts are appar- creased $3,851,50
was
gold
of
$624,000
tely
approxima
ently wary both here and in the European markets, day evening
Friday
On
China.
from
Francisco
San
at
received
fearing a squeeze. At the moment the supply of
San Fransterling bills seems to be extremely limited, making $1,071,000 more of gold was received at
$486,000
and
China
from
coming
$585,000
cisco,
purposes
it so difficult to obtain sterling for covering
Australia.
from
to
exercise
that speculative interests are obliged
Canadian exchange continues at a severe disextreme caution, amounting in effect to inactivity.
funds were at
This has been the case ever since the establishment count. On Saturday last, Montreal
on Tuesday
114%,
8% discount, on Monday at
/
of the £150,000,000 Exchange Equalization Fund. 105
Thursday
%,
on
2
123/
at
y
The sag in quotations on Thursday was due at 123.%, on Wednesda
133/%.
at
Friday
8%,and on
largely to a feeling that Britain's plea for a post- at 133/
Referring to day-to-day rates, sterling exchange
ponement of the December payment of $95,500,000
and fairly active. Bankon the war debt might not meet with a favorable on Saturday last was firm
4
cable transfers, 3.323
8@3.32%;
/
3.325
was
sight
ers'
reception from Congress. Bankers will not take a
active.
and
firm
was
sterling
Monday,
On
@3.33.
technical position in the foreign exchange market
either here or abroad until a definite stand on the The range was 3.3234@3.343 for bankers' sight
war debt problem is indicated. Articles covering and 3.323'@3.34% for cable transfers. On Tuesday
these phases more fully will be found in other columns. exchange was quiet and easier. Bankers' sight was
4; cable transfers, 3.31%@3.32%. On
Money continues abundant in the London market 3.31%@3.323
sterling was easier. The range was
y
Wednesda
the
in
market
is
increasing
there
visibly
and activity
2@3.32
for bankers' sight and 3.303/
@3.31%
%
re3.303
Treasury
certain
securities
although
new
for
dull
was
sterling
strictions are still in force. Several millions sterling for cable transfers. On Thursday
2
.
3
was
range
7%@3.293't
were involved in issues made or sanctioned last week, and decidedly weak. The
for cable
A
@3.293
4
3.273
and
sight
bankers'
for
being
placed
are
of
offerings
large
a
number
which
of
the range
firmer;
was
sterling
Friday
privately. Gold will, of course, continue to sell at transfers. On
4@
3.283
and
sight
bankers'
for
.30%
a high premium so long as sterling is off the gold was 3.28%@3
s on
quotation
Closing
transfers.
cable
for
standard. This week gold seems to have sold in the 3.303/2
5
%
for
3.29
and
demand
for
9-16
3.29
were
2d. to 125s. Friday
London open market at from 123s. 23/
at
bills
finished
sight
al
Commerci
transfers.
taken
been
cable
have
per ounce. All the gold sold seems to
;
4
at
3.273
bills
y
90-da
3.28;
at
bills
60-day
for
4
call
3.291
money
Londan
for Continental account. In
and
at
3.283/2,
days)
(60
payment
for
s
document
the
week
t
at
throughou
against bills was in supply
%. Cotton and grain
3 %,showing a slight tendency to firm- seven day grain bills at 3.291
to 4
from
ness. Bill rates are also displaying a shade more for payment closed at 3.2914.
3 %,
firmness. Two-months' bills are 11-16 to 4
XCHANGE on the Continental countries has
bills,
four-months'
%%;
to
13-16
bills,
-months'
three
been showing a tendency toward ease which
% to 15-16%; and six-months' bills, 1 1-16 to 13/8%.
Only a few weeks ago the longer-dated bills were at has been especially apparent since the British and
the war
1% flat. The Bank of England seems to be in an French notes requesting reconsideration of
no
currency
present
At
public.
exceptionally strong position. For the week ended debts were made
Nov. 16 the Bank shows an increase in gold holdings anywhere is at par with the dollar. The ease in
presof £8,313, the total standing at £140,451,771, which the European units is due in part to seasonal
arising
the
from
market
the
of
but
the
dullness
The
18
on
sure,
1931.
Nov.
967
compares with £121,770,
to
a
take
brokers
with
of
exchange
40.42%
foreign
compared
hesitancy
41.17%,
at
Bank's ratio is
has
question
debt
war
the
ago.
until
position
technical
year
a
35.57%
with
on Nov. 9 and
At the Port of New York the gold movement for been resolved must also be held responsible for curof
the week ended Nov. 16, as reported by the Federal rent weakness. Undoubtedly the undertone
debt
war
the
of.
of
is
franc
soft
of
market
consisted
because
imports
the
York,
New
of
Bank
Reserve
$1,180,000, of which $987,000 came from Newfound- uncertainty. In banking circles in New York it is
nt could
land, $113,000 from Mexico, and $80,000 chiefly considered doubtful if the French Governme
French
from
a sufficient number of dollars
from Latin-American countries. There were no gold obtain
United
the
to
its
a
to
here
meet
obligation
exports. The Reserve Bank reported decrease of balances
of
position
the
g
weakenin
States
without
Treasury
$6,833,000 in gold earmarked for foreign account.
proNo
side.
this
on
l
balances
French
the
week
for
commercia
ended
In tabular form the gold movement
E
3406
Financial Chronicle
vision has been made in the French budget for payment of the $19,000,000 due Dec. 15. Foreign
exchange traders think that if it is finally settled
that France will have either to pay or to be in default
and the French Chamber votes the necessary appropriation, there will be some difficulty in holding
francs to present levels if any sale of francs becomes
necessary. Exchange traders say that while the
amount due is not large, the franc market is so thin
that the offering of even a small portion of the total
would be sufficient to cause weakness in the rate.
The Bank of France gold holdings are at a new
record high, standing at 83,233,443,734 francs on
Nov. 11, an increase over the previous week of
197,623,991 francs, which compares with 67,580,324,767 francs on Nov. 13 1931 and with 28,935,000,000 francs in June, 1928, when the franc was
stabilized. The bank's ratio is also at record high,
standing at 77.76%, compared with 77.38% on
Nov. 4, with 58.86% a year ago, and with legal
requirement of 35%.
German marks are steady. The mark is, of
course, only nominally quoted as there is no free
market, foreign exchange operations being controlled
by the Reichsbank. It seems quite improbable that
there will be any immediate modification in the control of German financial affairs through decree.
On Monday the Bank for International Settelements
extended for another three months the credit of
$90,000,000 to Germany, subject to the approval
of the central banks of France, England and the
United States. The approval of these institutions
may be taken for granted.
The London check rate on Paris closed at 84.37
on Friday of this week, against 84.68 on Friday of
last week. In New York sight bills on the French
centre finished on Friday at 3.91%, against 3.92 on
Friday of last week; cable transfers at 3.913
4,
against 3.923/
8, and commercial sight bills at 3.913/
2,
against 3.91%. Antwerp belgas finished at 13.863
for bankers' sight bills and at 13.869 for cable
transfers, against 13.88 and 13.883/2. Final quotations for Berlin marks were 23.763/ for bankers'
sight bills and 23.77 for cable transfers, in comparison with 23.77 and 23.773/
2. Italian lire closed at
5.113/ for bankers' sight and at 5.11 8 for cable
transfers, against 5.115
% and 5.123'. Austrian
schillings closed at 14.103/
2,against 14.103/2; exchange
on Czechoslovakia at 2.969/8, against 2.969/8; on
Bucharest at 0.603, against 0.603; on Poland at
11.24, against 11.243/
2, and on Finland at 1.463.',
against 1.453/2. Greek exchange closed at 0.583'
for bankers' sight bills and at 0.583/2 for cable transfers, against 0.58 and 0.583/2.
XCHANGE on the countries neutral during the
E
war presents pretty much the same picture as
in other
recent weeks. Spanish pesetas are steady,
as they have been for several months now. Holland
guilders and Swiss francs are easy in tone and ruling
slightly under dollar parity. The Scandanavian currencies are on average firmer than last week as they
run rather parallel to the movements in sterling exchange. The quarterly review of the Skandinaviska
Kreditaktiebolaget carries an estimate of the Swedish
balance of payments for 1931 showing a deficit of
kr. 130,000,000, compared with a surplus of kr. 100,000,000 for 1930 and kr. 281,000,000 for 1929. This
was the first deficit since 1924 when the balance was
against Sweden to the extent of kr. 6,000,000. The
Nov. 19 1932
deficit in 1931 was caused by increase in the visible
import trade balance to kr. 306,000,000 from kr. 114,000,000 in 1930. The increase was not offset owing
to the large falling off in Swedish shipping as foreign
trade in general declined. There is nothing yet to
indicate a material improvement in the invisible
accounts but the smaller visible import balance is
lessening the strain. The visible import surplus for
the first eight months of 1932 amounted to kr. 165,800,000, compared with kr. 225,700,000 in the corresponding period of 1931. The relative ease in
Holland guilders and Swiss francs is due partly to
seasonal pressure and to some extent to a movement
of surplus funds from these countries to the Paris,
London and New York security markets. The movement to New York is not as yet very noticeable.
Recent flotations by the British Treasury and by the
French Government are believed to have proven
particularly attractive to Dutch and Swiss funds.
Bankers' sight on Amsterdam finished on Friday
at 40.143/
2, against 40.153/i on Friday of last week;
cable transfers at 40.15, against 40.16, and commercial sight bills at 40.11, against 40.12. Swiss francs
closed at 19.223 for checks and at 19.223' for
cable transfers, against 19.25 and 19.253/2. Copenhagen checks finished at 17.18 and cable transfers
at 17.183/2, against 17.293/ and 17.30. Checks on
Sweden closed at 17.543/
2 and cable transfers at
17.55, against 17.593/i and 17.60; while checks on
Norway finished at 16.823/ and cable transfers at
16.83, against 16.913/i and 16.92. Spanish pesetas
closed at 8.163/ for bankers' sight bills and at 8.17
for cable transfers, against 8.18 and
8.183/2.
XCHANGE on the South American countries
E
continues to be merely nominal. There is no
open
market and of course there is no way of tracing
the value or influence of "bootleg" transactions in
the various markets of the world. Business is
undoubtedly improving in most of the South American countries and there is much less political unrest
but foreign trade and foregn exchange operations
labor under restraints imposed by government
control boards.
A recent Paris dispatch to the Wall Street "Journal"
relates to exchange on Chile. It says:
"Another stage in the rapid development by France
of a clearing house system for trade with countries
exercising restrictions on monetary exchange has
been marked by the signature of the Franco-Chilean
agreement, the most complete yet effected.
"The agreement provides settlement of all commercial interchanges through a clearing agency in
each of the two countries. These agencies are
authorized to reserve up to 50% of payments received
from importers for liquidation of accounts now
overdue. The basis for exchange will be the actual
official rate of 65 pesos for 100 francs, compared
with parity of 32 pesos for 100 francs. The Nationa
Bank of Chile undertakes to transmit in francs
at this rate.
"The Chilean nitrate industry is granted an exception and is allowed free disposal of 60% of the proceeds of its sale to France."
Argentine paper pesos closed on Friday nominally
at 259, against 253
4 on Friday of last week; cable
transfers at 25.80, against 25.80. Brazilian milreis
are nominally quoted 7.45 for bankers' sight bills
and 7.50 for cable transfers, against 7.45 and 7.50.
Chilean exchange is nominally quoted 63/8, against
63/s. Peru is nominal at 17.00, against 17.00.
Volume 135
3407
Financial Chronicle
Eastern countries is
XCHANGE on the Far
featured this week by great irregularity and
E
sharp breaks in Japanese yen. The gold par of the
yen is 49.85. It will be recalled that on Monday
of last week yen dropped to a new low of 203A and
that there was a partial recovery by Friday to 21 1-16.
On Tuesday of this week the unit dropped to 20.41,
a decline of 65 points from the close of Monday.
The yen was weaker again on Wednesday while on
Thursday it went to an all-time low of 20.13, although most of the day's trading was done nearer
to 20.25. The renewed weakness in yen is attributed
primarily to bugetary difficulties and conditions
within the country itself. The military chiefs are
calling for such expenditures that the Government
may be forced not only to borrow but also to increase
taxation if present and prospective deficits are to be
overcome. Japan suspended the gold standard in
January last. The downward trend of yen since,
and especially during the past few months, cannot
be traced to the country's foreign trade conditions
nor to inflation. So far there has been no note inflation although the gold backing has been greatly
reduced in the past few years. Foreign trade is more
satisfactory than at any time in several years. The
Indian rupee, of course, fluctuates with the British
pound to which it is attached at the rate of one
shilling and six pence per rupee. The Chinese units
are steady, as might be expected owing to the
steadier quotations for silver. In New York the
official quotation for silver averaged a slight fraction
above 27 cents an ounce during the week.
Closing quotations for yen checks yesterday were
203/8 against 211-16 on Friday of last week. Hong
8@22 15-16, against 22%@
/
Kong closed at 225
s@29 11-16, against 29%;
/
22 15-16; Shanghai at 295
Manila at 49% against 493A; Singapore at 38 8,
against 38%; Bombay at 24.95, against 25 1-16,
and Calcutta at 24.95, against 25 1-16.
FOREIGN EXCHANGE RATES CERTIFIED By FEDERAL RESERVE
BANES TO TREASURY UNDER TARIFF ACT OF 1922.
Banks of-
1932.
1931.
1930.
1929.
1928.
£
121,770,967
540,642,598
47,533,150
89,669,000
58,918,000
72,033,000
73,080,000
53,416,000
11,857,000
9,121,000
6,560,000
£
158,965,572
410,400,219
101,502,750
97,885,000
57,243,000
35,514,000
37,003,000
25,624,000
13,430,000
9,561,000
8,135,000
£
132,830,637
324,316,255
104,212,550
102,595,000
56,017,000
36,885,000
30,481,000
21,345,000
13,405,000
9,582,000
8,151,000
I
162,084,589
246,814,718
123,895.950
102,533,000
54,527,000
36,321,000
23,416,000
18,774,000
13.169,000
9,602,000
8,180,000
Total week 1,274,428,320 1,084,600,715
Prey. week 1.272.284.616 1.084.847.536
955,263,541
955.870.824
839,820,442
836.381.010
799,317,257
799.896.038
£
England_ _. 140,451,771
France_ a _ _ 665,867,549
38,195,000
Germany b
90,315,000
Spain
62,687,000
Italy
86,240,000
Nethlands
74,650,000
Nat.Belg'm
89,165,000
Switzerland
11,443,000
Sweden _
7,400.000
Denmark
8,014,000
Norway_
a These are the gold ho dings of the Bank of France as reported In the new form
of statement. b Gold holdings of the Bank of Germany are exclusive of gold held
abroad, the amount of which the present year is £3,062,C00.
The United European Front Emerges-Again
the War Debts.
The concerted course of Europe against further
payment of the war debts owed to the United States,
clearly foreshadowed in the agreements of the Lausanne Conference but held off until after the Presidential election, has now been launched. On Nov.
10 the British Ambassador at Washington handed
to Secretary Stimson a note, the text of which was
made public on the 13th, asking for a postponement
of the debt payment due from Great Britain on Dec.
15, and for an exchange of views with the United
States regarding the whole question of existing intergovernmental obligations. A memorandum of the
French Government of the same date, less specific
but to the same effect, was presented at the same
time by the French Ambassador. On Monday a
press dispatch from Warsaw reported that the Polish
Government was preparing to send a note requesting a postponement of its next debt payment "in
line with similar action taken by France and Great
Britain," while the Greek Government was reported
as proposing "to inform the United States that it
cannot pay the next instalment on its debt pending
the settlement of debts of other countries to America." A memorandum of the Belgian Government',
referring to the communications of the British and
NOV. 12 1932 TO NOV. 18 1932, INCLUSIVE.
French Governments and making the same request,
Noon Buying Rate for Cable Transfers in New York.
was handed to Secretary Stimson on Tuesday.
Money.
Monetary
States
Value in United
Country and
Unit.
Nov. 12. Nov. 14. Nov. 15. p Nov. N. Nov. 17. Nov. 18.
It is interesting to notice that France, which in
$
$
8
$
past has been most outspoken and insistent in
$
EUROPE$
the
.139437 .139750 .139437 .139437 .139437 .139437
Austria,schilling
.138638 .138600 .138757 .138638 .138605 .138588
that the war debts could not be paid, has
Belgium. belga
declaring
Bulgaria, lev
007200 .007200 .007200 .007200 .007200 .007200
7zechoslovakia, kron .029613 .029620 .029618 .029615 .029616 .029613
relinquished the leadership in notemoment
the
for
.172923 .173315 .172792 .172683 .171175 .171146
Denmark, krone
England, pound
writing to Great Britain. The British statement,
3.326750 3.330750 3.318583 3.316708 3.284500 3.291250
sterling
'014480 .014450 .014550 .014500 .014500 .014483
Finland. markka
brief, but the longest of the three communications
France. franc
039192 .039191 .039203 .039192 .039184 .039180
Germany. relchsmark .237607 .237671 .237721 .237721 .237664 .237628
thus far received, begins by pointing out that the
.005810 .005737 .005687 .005823 .005744 .005730
Greece. drachma
Holland, guilder
401467 .401450 .401598 .401510 .401439 .401375
hopes raised by the announcement of the Hoover
174250 .174250 .174500 .174500 .174500 .174250
Hungary, Pengo
.051185 .051191 .051187 .051195 .051191 .051188
Italy. lira
moratorium "have unfortunately not been realized,
.168946 .169238 .168638 .168476 .167453 .167591
Norway, krone
.111710 .111860 .111710 .111710 .111710 .111710
Poland, zloty
the economic troubles which it was designed to
and
Portugal, escudo
.030460 .030540 .030220 .030260 .030240 .030240
.005989 .005997 .005980 .005975 .005966 .005979
Rumania.leu
have not come to an end." It then recites
.081721
alleviate
.081717
.081707
peseta
.081746
.081760 .081800
Spain,
175930 .176538 .175638 .175623 .174430 .174596
Sweden, krona
the statement of the communique issued in October
Switzerland. franc-. .192398 .192396 .192439 .192441 .192369 .192283
Yugoslavia. dinar- _ .013500 .013660 .013525 .013525 .013575 .013475
ASIA1931, on the occasion of Premier Laval's visit, that
China.308750 .307916 .307500 .308750 .306666 .306041
Chefoo tael
to the expiration of the Hoover year some
"prior
Hankow tact
303750 .302916 .302500 .303750 .301250 .300625
.296875 .296250 .295937 .296562 .294687 .293593
Shan;hal tael
on intergovernmental obligations may be
agreement
Tient vin tael
.315000 .314583 .313333 .314168 .312916 .311875 •
thaw Kong dollar_ .227187 .226406 .225468 .226093 .225156 .225312
the period of the business deprescovering
necessary
.209375 .207812 .208437 .208125 .207187 .206562
Mexican dollar_
Tientsin or Pelyang
"the
initiative in this matter should
that
and
sion,"
.207916
.206666
.206250
dollar
.208750 .207083 .207916
.208750 .207083 .207916 .207916 .206666 .206250
Yuan dollar
be taken early by the European Powers principally
.251525 .252500 .251175 .251750 .248900 .248865
India, rupee
.210500 .210000 .204550 .204240 .202375 .201250
Japan. yen
within the framework of the agreements
concerned
Singapore (8.8.) dollar .385625 .387500 .385000 .385000 .382250 .381250
NORTH AMER.to July 15 1931." .In accordance with
existing
prior
.892968 .884375 .876875 .876145 .870260 .868750
Canada. dollar
.999100 .999162 .999100 .999268 .999268 .999437
Cuba. peso
the memorandum continues,
recommendation,
this
.323833
.323166 .323333
maxim peso (silver) .324333 .323700 .323000
Newfoundland. dollar .890250 .882375 .874625 .873250 .867750 .866250
of July 9 last, representLausanne
the
agreements
AMER
SOUTH
Argentina. peso (gold) .585835 .585881 .585837 .585835 .585835 .585835
ing "the maximum contribution in the field of inter.076300 .076354) .076300 .076300 .076300 .076300
Brazil. !Minns
.060250 .060875 .060250 .060250 .060250 .060250
Chile. peso
governmental finance which the Governments con.475000 .473333 .473333 .473333 .473333 .473333
Uruguay. peso
952400 .952400 .952400 .952400 .952400 .952400
Colombia. peso
cerned have so far been able to make" toward the
early restoration of world prosperity, were conof
the
gold
amount
indicates
table
following
HE
bullion in the principal European banks as of cluded. The British Government believes, however,
Nov. 17 1932, together with comparisons as of the that "the regime of intergovernmental financial obligations, as now existing, must be reviewed," and
corresponding dates in the four previous years:
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Volume 135
Financial Chronicle
a change, and why the debtor Governments which
have asked for or proposed delay should be told that
payment of the December instalments of their debts
is expected. With the Treasury deficit mounting
daily to new heights and tax receipts persistently
below estimates, the Treasury is in no condition to
lose the debt payments or to have them postponed,
while as for a postponement, that, obviously, would
merely push the issue along to some indeterminate
future without in the meantime settling anything.
If the Hoover moratorium contributed nothing of
importance to world recovery, another moratorium
could not be expected to contribute more. If the
debtor Governments prefer to default rather than
to pay the instalments of their debts, the decision,
of course, rests with them, and the case of default
can be met when it occurs, but the blow to the international credit structure and to friendly international relations which default would occasion is one
which, we think, the Governments concerned are
likely to consider. We are not surprised at the reports of a veritable revolt among members of Congress against suspension of debt payments or interference with the debt agreements, for the views
ascribed to members of Congress represent, we think,
the overwhelming majority opinion of the country.
Until it is shown, as it has never yet been shown,
that the European debtor ,countries, and more particularly Great Britain, France, Italy and Belgium,
cannot meet their war debt obligations by rational
economies or reasonable taxation of their national
resources, there is no reason whatever why the United
States should acquiesce in a deferral of the agreed
payments or enter into any negotiations for a revision of the war debt settlements.
Thanksgiving.
A special Day of Thanksgiving is a unique custom
of this nation, a custom first inaugurated by the
New England fathers in the early Seventeenth century, inaugurated by them in darkest hours, when
disease and famine stalked and when faced by the
rigors of a barren winter. Had they much to be
thankful for? Not a family but had lost a dear
one, not a log hut but sheltered someone sick. Food
was scarce and hard-gotten. Their garners were
bare, hostile red men surrounded them, the snows
were deep, the cold intense, the elements more hostile than the savage tribes. No ship could be expected from over the wide ocean for many months.
They asked no luxuries, but only animal necessities.
They were in want of everything. There were among
them, in this first American depression, brave men
and glorious women who knew from inner voices
that they could not survive the winter. They were
one and all leaders, individualists,facing life in their
own right, standing erect. One quality they had in
great abundance—vision; and another—intelligent
humility. They gathered together in a spirit of intelligent humility and established this Day of
Thanksgiving. In a loud shout of defiance to all
hostilities of tribes, famine, disease, and the elements, they sang the Nineteenth Psalm of David.
With vision, in cold and depression, these few hundred founded this nation of millions.
We are now one hundred and twenty-five millions.. We are in a period of one of the greatest business depressions the country has ever known. The
whole world is in the throes of this depression. Some
ten millions of our own fellow citizens are without
3409
employment, again facing want and winter. Too
many, lacking faith and hope in a land where none
lack the charity of love, can see only blackness ahead.
Have we nothing to be thankful for at this season
which our pioneer ancestors consecrated to praise
of Deity? All the seers of all the ages have told us,
and all men of practical wisdom even of our own
day, men of this very hour, know that out of the
lowest depths there is a path to the most exalted
heights.
It was always true, ever since the first Thanksgiving, and never truer than it is to-day, except that
it will be more true to-morrow: This is the land of
opportunity for one and for all, for the grateful and
the ungrateful, for the deserving and the undeserving, for the rich and the poor, for the able and the
less able, for the exalted and the lowly. This is the
true folk land. It is the grateful and the able who,
blessed through life experience with intelligent humility, make this great folk land the land of opportunity. Humble greatness is here in these United
States in more effective number than in all the world
before, and the world has never been lacking in great,
good, and true men. These have not failed us, but
are sensitively aware, filled with intelligent hope,
fervently praying, manfully striving. Should we not
be thankful? These our strong men know that the
tide of depression has already been stemmed, that
it has turned, that the immediate prospect is improved, and that the more distant outlook is brighter
than ever. Should we not be thankful?
It is the universal dictum of the wise of all time
that were life devoid of difficulties, mankind would
be obliged to create them or perish of inertia. We
are not sticks and stones, we must have hard material upon which to exert our powers, to feel our
strength, to learn and know we are alive. This is a
world of uses. Through labor of hand and head and
heart we humans, of a race divine, discover for ourselves the soul and the spirit of which our bodies are
but vehicles and instruments. The Lord of Moses
said, "Let there be Light." The world is full of
Light. Light leads, Light feeds, Light supports. All
our fellows, the great and the humble, are instruments of never-failing Providence, working through
us for Its and our own ends. "Feed on Him in thy
heart by faith with thanksgiving."
How the sailor welcomes the gale! How the
strong man rejoices in his strength! With what
fervor the scientist attacks his difficult problem!
Step by step, from difficulty to greater difficulty,
the artist painted the picture which rejoices the eye.
At 20 he could not do it, nor at 40, but at 90 Michael
Angelo restored the arm of the Laocoon. Time is
kindly, it mends. Time is curative, it builds. But
it frustrates the impatient.
In the last analysis this depression, now coming
to an end, was brought on by an all too great impatience to enjoy and to get rich. There is no need
to minimize our plight. Times are hard, appallingly
hard for too many. But we live in a land where
charity abounds. Ordinarily 'we like to let one
another alone, to permit everyone to go about his
business in his own way. But in times of crisis it
has always been the custom and the privilege of the
American people to make themselves their brothers'
keepers. In other countries and in other times millions upon millions have died of famine and disease.
Here no one is permitted to starve. Here is thanksgiving.
3410
Financial Chronicle
The country is richer than ever. The land is still
here, the crops are bountiful. One cause of the
depression is no doubt the fact that the crops
have been too bountiful. "We can correct this.
The great plants and machinery have not been
destroyed. Too many are idle. This will be corrected. The country's abundance of gold and
money and credit is too.largely unemployed. But
confidence is returning and the instuments of credit,
the sinews of plenty, cannot lie idle forever.
If we forget all economic questions, even the very
poorest of us should find innumerable causes for
gratitude and satisfaction. It does not take so much
to sustain and clothe a human body. Men whose
personal requirements have been indescribably
meagre have nevertheless placed the world in their
debt.
The sun still shines, the air invigorates, children
play, youth still aspires, love and intelligence and
good fellowship still abound. We need to draw upon
our pioneer heritage which could give thanks in the
midst of hardship.
We have been looking too far abroad for help, surrendering our individual rights to state and nation.
We cannot expect aid to be delivered at our doors
through bureaucratic offices, but should resurrect
within ourselves the old-time American spirit of selfreliance. Let us go back within ourselves. The poet
sang, "He is an ever ready help in time of need."
That help dwells within ourselves. George W. Russell points the way. "None need special gifts or
genius. Gifts! There are no gifts. For all that
is ours we have paid the price. There is nothing we
aspire to for which we cannot barter some spiritual
merchandise of our own." Business depressions are
ultimately overcome by self-reliant men and women
who, while still trusting in their own light, have faith
in their fellow men. Self-reliance with faith is
thanksgiving. There is no lack of power in any of us.
It is only the will that is lacking. A wise man of
China once said,"So long as we desire, we succeed."
With self-reliance and faith in our fellow men we
will shortly come to know this depression for what
it is—nothing but an incentive to new endeavor. By
faith with thanksgiving men conquer the world and
all things.
Evolution in National Campaigns.
One of the finest examples of sportsmanship is the
manner in which the American people accepted the
verdict rendered at the polls on November 8, when
decisive majority of votes were cast for Franklin
D. Roosevelt for President of the United States.
President Hoover, who was defeated, conducted
the greatest campaign of speechmaking ever undertaken by a candidate for re-election to the high
office. James A. Garfield, who had served the old
Nineteenth Congressional District in Ohio for many
terms and had been elected to the Senate, was a good
campaigner and a forcible speaker on the floor of
the House, but he chose in 1880 to conduct a front
porch campaign at his home in Lake County, Ohio.
Many pilgrimages were made to that rostrum by
Republican clubs, some of which traveled long distances to show their loyalty to the candidate and
the principles he advocated.
The greatest meeting of that campaign was held at
Warren, Ohio, which Garfield often referred to as
the "Hub of the 'Western Reserve." Although the
candidate's home was less than fifty miles from
Nov. 19 1932
Warren, Garfield did not attend the great' rally
in his campaign. That .meeting, however, was attended .by General Grant, Roscoe Conkling, General
John Logan and other prominent men of the.period.
The imperial Senator from New York and Garfield
had a bitter quarrel and Garfield's friends sat in
the audience with bated breath ready to raise the
roof whenever Conkling would mention the name of
the Republican candidate. But not once in any
manner did Conkling in his eloquent speech mention Garfield. The wound was never healed.
Grant's speech was the first political talk he ever
gave. The National Committee had it printed in
big block type and posted it upon bill boards all
over the country.
Garfield's front porch talks were so forcible and
effective they induced greater efforts on the part
of later Republican candidates to take greater personal interest in the National campaigns than had
previously been given, paving the way for the coast
to coast pilgrimage recently concluded by President
Hoover. Certainly no presidential incumbent ever
addressed personally so many American citizens as
has Herbert Hoover in the recent campaign. He had
a tireless opponent in Franklin D. Roosevelt. The
manner in which these two rival candidates met the
great task which they assumed, traveling over a
large area, which began with the spectacular flight
by air of Mr. Roosevelt from New York to Chicago
to deliver his speech of acceptance before the nominating convention adjourned, was a tremendous
trial of endurance, physically and mentally.
During no previous campaign were the candidates
brought face to face with such a multitude of citizens
and never was the electorate so well informed as
to the issues between the two leading National
parties. In addition to the edifying speeches delivered personally by the candidates the radio
rendered a marvelous service. By day and by night
not only the speeches of the candidates but those of
their logical supporters were broadcast not only to
the homes of millions of citizens in every city and
town throughout the United States,'but to a multitude of homes upon isolated farms.
Opportunity was thus afforded for all citizens
who desired to hear the voice of each candidate,
coupled with the enthusiastic reception accompanying delivery, but the effect of the radio's simultaneous utterance of the speeches to city, hamlet
and farm was to force the daily newspapers to print
the addresses in full, lest the work of the daily press
might be outdone by the radio. Consequently the
public never was so well informed about NatioAal
issues and the candidates as during the campaign
just ended.
The only way to judge of the effect of the broadcasting and the unusual publicity afforded by the
press is by the result. Every listener of the unseen
audience had the opportunity candidly to weigh
every address of importance, to ponder o'er the
arguments and form individual conclusions uninfluenced by neighbors or any extraneous motive.
Broadcasting has made a place for itself in National campaigns.
Majorities in many cases were overwhelming.
Under these unprecedented circumstances controversy ended with the voting and a remarkable expression of candor and loyalty to the Government
has followed announcement of the election results
which 'bodes well for the safety of the Republic and
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3412
Financial Chronicle
smaller rate of interest. The railroads are using
some of this borrowed money to pay taxes, although
the barge lines pay no taxes on its floating equipment. This situation would indicate that the railroads cannot pay taxes and interest when competing
with a Government-owned transportation agency
which pays neither.
One of the points stressed by General Ashburn in
his statement of conditions which are necessary to
be fulfilled in order to insure successful operation
of the Inland Waterways Corp., is as follows:
"There must be a suitable navigation stream." This
point was first enunciated by General Ashburn in
1924, and since that date taxpayers of the United
States have spent over $100,000,000 in providing
navigable streams on which the Inland Waterways
Corp. now operates, or on which is expects to operate.
In addition, it is asserted that the Federal Barge
Line has secured the benefits of the expenditure of
over $100,000,000 previously spent in making permanent improvements on these streams. Furthermore,
the United States Government has obligated itself to
spend for construction work alone on these streams
the further sum of $100,000,000 of taxpayers' money.
Only when these expenditures are forgotten can the
water transportation furnished by the Federal Barge
Lines be called cheap. Therefore, taking everything
into consideration, inland water transportation on
the route of the Federal Barge Line is enormously
expensive and the costs to the taxpayers overshadow
the alleged savings to the shippers.
The reports of the Inland Waterways Corp.for the
years 1924 to date show, among other things, two
figures: (1) They show a net income for each year,
and (2) a net profit for each year. The following
table shows in separate columns the "net income"
of the operating divisions, and the "net profit" of
the corporation for each year of its existence:
Na Income.
Year.
Lower
Missisalpp1.
Upper
sipPi.
1924 __ .$126,060
268,855
1925
*86,315
519,412
1926
261,436
*91,720
1927 _*238,345
702,468
1928 __
362,663
*319,946
1929 __
188 119
1930 -331 590
1931 __
Warner
River.
Warrter
River
Terminal.
*8406,550
*303,375
*299,900
*191,524
*136,411
*152,447
*122,942
*32,833
87,633
11,262
77,435
36,575
18,227
29,406
Net Profit.
Total.
*$532,610
*34,520
220,830
*10,546
405,147
*73,155
64,994
298,756
*8324,348
*65,214
175,509
*179,423
257,776
*354,048
46,336
166,991
*8276,421
•Indicates loss.
In arriving at its figure of net profit (loss) as
shown in the table above, the Inland Waterways
Corp. has taken into its accounts, as income, the
interest which funds of the United States Government, appropriated for the use of the Corporation
and not expended by the Corporation, have earned
from banks in which that money was deposited.
During the period of its existence the Corporation has thus received as interest the sum of $288,278.72, and if it had not received this interest,instead
of showing a net loss for the period of its existence
of $276,421.30, it would have shown a net loss of
$564,700.02.
These facts prove conclusively that there is no
reason for the Government to continue in the barge
business inasmuch as it has failed as a business
proposition according to its own figures.
Proposed St. Lawrence Waterway Attacked
by Railway Executives.
According to the Association of Railway Executives, the construction of the St.Lawrence Waterway
is not only economically unjustified but will cost
Nov. 19 1932
the taxpayers of this country at least nearly twice
as much as estimated and place a heavy burden on
their shoulders.
The views of that organization, which represents
nearly 95% of the mileage of the Class I railroads of
the country, were presented last Monday and Tuesday by Alfred P. Thom, the General Counsel, to a
subcommittee of the Senate Foreign Relations Committee, which is now considering the subject.
Instead of costing American taxpayers $272,453,000, as estimated by the joint board of engineers
which prepared the data for the Hoover-Canada
treaty, the St. Lawrence shipway would cost the
United States about $491,045,000. In addition, Mr.
Thom said:
"The costs, whatever they may prove to be, will
be borne in large part by the taxpayers and thus
establish a subsidized service, competitive with the
rail carriers.
"The tonnage diverted to this artificial and subsidized waterway will, if as great in amount as
claimed by proponents, result in unjustifiable injury
to the railroads of the United States, without compensating advantage in lower transportation costs,
but if less in amount than claimed by proponents,
then, of course, the project fails of justification.
"The transportation service to be offered by this
proposed waterway will •be an incomplete service,
limited by climatic conditions to six and one-half or
seven months out of the year.
"This will compel the railroads to stand by with
unused equipment and watch a subsidized competitor
take the cream of the traffic during its operating
season.
"The proposed project will result in a tax-free,
unregulated transportation agency competitive with
heavily taxed and regulated railroads.
In the official estimate, according to Mr. Thom,
as to the cost of the undertaking, no consideration
has been given to important elements of costs which
private enterprise must face. There are substantial
costs contingent upon the completion of the project
and its operation as contemplated. They have not
entered into the estimates of cost that have officially
been made public.
It has been noted in the cost of other similar stupendous undertakings and perhaps none of which
presented the engineering and other difficulties that
will be faced in the St. Lawrence project, that, without exception, actual costs have greatly exceeded the
estimates. This was true in the case of the Panama
Canal, the Suez Canal, the Chicago Drainage Canal
and the Welland Canal.
The St. Lawrence project is estimated to require
from seven to 10 years for construction, but no allowance has been made for interest on the money required for construction. The estimates of the joint
board of engineers also makes no allowance for collateral costs, such as for adequate harbor and dock
facilities. There are also other substantial costs
contingent upon the completion of the project and
its operation as contemplated, but which have not
entered into the estimates of costs that have officially
been made public.
Considering these facts, Mr. Thom says, it is the
firm conviction of the railway executives that the
official announcement as to the estimated costs must
be greatly increased if the project is to be carried out.
They also feel that these collateral costs, which
must inevitably be met if the project is put into
operation successfully, should receive the serious
Volume 135
Financial Chronicle
consideration of Congress and the public. Such additional costs may be sufficiently great even to
change the judgment with respect to the desirability
and feasibility of the project itself.
It has been estimated that the construction of the
St. Lawrence Shipway would bring about a saving of
from 6c. to 12c. a bushel on wheat, which constitutes
about 60% of the anticipated St. Lawrence traffic.
Mr. Thom states that the railway executives have
examined these claims somewhat carefully. They
find that wheat has been moving, via the existing
all-water route through the Welland Canal, from
upper Lake ports to Liverpool as low as 8c. a bushel.
If 6c. is to be saved out of this total, there will be
left only 2c. a bushel for the ship operator.
Therefore, the railway executives are convinced
that the estimated savings, like the estimated costs,
are in error. Just as the costs will be substantially
greater, the savings will be inconsequential or disappear. It is their firm belief that no savings at
all will be realized, and a tremendous burden of
expenditure will have been shouldered upon the taxpayers as the result of the project.
Mr.Thom said the annual cost to the United States
for interest charges, maintenance and operation of
the St. Lawrence Shipway would amount to from
$27,000,000 to $43,000,000, depending upon the construction cost.
If the United States, he said, would pay annually
to the railroads of this country the amount it would
have to pay annually for interest charges, maintenance and operation of the project, the railroads
could afford to haul free all the grain that would
move from the United States through that waterway
and still have a substantial balance left over. The
rail carriers are fully able to handle the normal
increase in traffic. There is therefore no sound reason why a new additional and subsidized transportation should be constructed.
Mr. Thom pointed out further that it is obvious
that shippers from those sections of the United
States who must ship to the Gulf, Atlantic or Pacific
ports will, by this expenditure of public funds, be
put to a disadvantage as compared with shippers
from the area to the north and east of a given line
who can avail of the cheaper service which it is proposed to create--cheaper only, however, when considered from the standpoint of what the shippers
pay and without considering the contribution from
the public treasury. Obviously, this proposal involves the use by the United States of public funds
to the serious detriment of its Atlantic, Gulf and
Pacific ports.
Moreover, he says, it should not be forgotten that
the railroads are one of the largest employers of
labor among our industrial enterprises, and if the
project under consideration results in a substantial
diversion of their traffic, their ability to employ
labor will be seriously impaired and the problem of
unemployment will be rendered all the more difficult.
By way of conclusion it was stated that the railroads do not take the position that they are opposed
to water transportation in competition with them
under any and all circumstances. If a proposed
waterway is a necessary, a reasonable and an economic development and fair to all the people, the rail
carriers have no right to complain, even though their
special interests are affected. If, however, a proposed waterway is not necessary, it is not a reasonable and economically sound project, the railroads,
3413
as taxpayers and as carriers as against whom it is
proposed to establish Government subsidized competition, not only have the right, but it is likewise their
duty, to protest against its construction.
The Course of the Bond Market.
Bond prices in general have been very irregular during
the current week with no definite trend noticeable. The
movement of United States Government bonds was the
outstanding feature of the general bond market, these
bonds having advanced steadily throughout the week.
Moody's price index for 120 domestic bonds was 80.03 on
Friday, as compared with 79.91 a week ago and 79.11 two
weeks ago.
In the Government bond market Liberties and high
coupon Treasury issues regained most of the ground lost
in the past two weeks and approached the high6 for the year.
The tax-exempt Liberty 3 2s reached a new high for the
year by a small fraction. This strength in Government
obligations was probably due to the decision reported to
have been reached by the Reserve Board in Washington
that the open market policy of the Reserve banks would
not be changed for the present. This quieted the talk that
there would be a reduction in the Reserve's holdings of
Government securities. On Dec. 15, $600,000,000 of
Government obligations will mature and it is probable that
the banks desire to be of assistance in this Treasury financing.
Because of this, it is to be expected that a change in the
present open market policy will be postponed until after
the end of the year. The price index for eight long term
Treasury issues advanced to 101.50 on Friday, as compared
with 101.18 a week ago and 101.31 two weeks ago.
The action of railroad bonds during the week has not been
uniform. High grade issues held rather firm, but medium
grade and low grade issues declined. The weakness in the
latter two groups may be ascribed to the weakness of commodities and stocks and perhaps also to the indications of a
greater-than-seasonal decline in traffic as measured by carloadings. For the moment, at least, the more favorable
earnings reported for September and those expected for
October were ignored. The firmness of high grade bonds
may have been a reflection of the relative scarcity of bonds
regarding interest payments on which there is Lbsolutely
no question; perhaps, also to the accumulation of funds
seeking investment. Weakness was experienced by practically all bonds selling below 60. Chicago Milwaukee St.
Paul & Pacific 50-yr. 55, 1975, declined from 26 to 223.;
4s, 1949, from 183/i to
Chicago & North Western deb. 48
15; Illinois Central deb. 4%s, 1966, from 40 to 36%, and
Southern Pacific deb. 43/25, 1981, from 503' to 467/8.
Moody's 40 railroad bond price index stood at 71.96 on
Friday, as compared with 72.55 a week ago and 71.57 two
weeks ago.
Considered as a whole, the utility bond market presented
an irregular picture during the week, high grades resisting
pressure very well, while there was considerable irregularity
among the lower grades. In the top group Buffalo General
Electric 43/2s, 1981, Duquesne Light 43/2s, 1967, Public
Service Electric & Gas 43/
2s, 1970, and West Penn Power
5s, 1946, made good performances, while among bonds of
lower rating Chicago District Electric Generating 53'2s, 1935,
Nevada California Electric 5s, 1956, and San Antonio
Public Service 5s, 1958, acted well. Pronounced and steady
weakness was exhibited by many speculative issues, among
them being American & Foreign Power 5s, 2030, International Telephone & Telegraph 43/
2s, 1952, and 5s, 1955,
Associated Gas & Electric 43/
2s, 1949, and Electric Power
& Light 5s, 2030. The speculative issues, of course, were
influenced largely by the behavior of the stock market which
was declining most of the week. New issues made their
appearance once more with the $27,500,000 Toledo Edison
5s, 1962, being the most prominent. The price index for
this group ended the week on Friday at 84.97, as compared
with 84.60 a week ago and 83.85 two weeks ago.
As was the case with the public utility bond market,
industrial issues were very irregular during the week with
no definite trend in either direction shown. High grade
obligations continued in fair demand, with Owens Illinois 5s,
for example, making a new high for the year. Oil issues
resisted the weaker tendencies of the market on Thursday
and gained in some instances. Steels, rubbers, packing and
merchandising company issues in most cases, neither gained
nor lost ground. Another period of declines.onlight volume,
in motion picture bonds was seen in reflection of poor
published statements, though unfavorable reports in other
groups had little effect. Ameridan Sugar Refining further
cut its debt, announcing the call for redemption at 1023/3,
Jan. 1 1933, of $4,000,000 of its 6s, 1937. The price index
for the industrial group as computed by Moody's was 84.35
on Friday,83.48 Friday a week ago and 82.74 two weeks ago.
The foreign bond market as a whole was rather weak
throughout the current week. Scandinavian bonds, particularly Norwegian and Finnish obligations, lost severs.,1
.points; Danish bonds alone exhibited resistance to the
general downward trend. Most South American issnea
evidenced declines for the week, as did German Government,
.municipal and corporate issues. Particularly noticeable
x,on Public Works bonds.
difihinos .,ere.,recorded
Japanese, Australians, as _we as-Most credits emanating
from Eastern Europe depreciated somewhat, with the
exception of the obligations of the Polish Government which
were practically unchanged. The foreign bond yield
averages on Friday stood at 10.33%, as compared with
19.10% a week ago and 10.30% two weeks ago.
The municipal bond market has been generally firm
throughout the week, with some losses among issues of large
cities facing difficulties. New issues continued small.
Requests for deposit of Pontiac, Mich., bonds mark the
formation of the first protective committee for a northern
city of prominence.
Moody's computed bond prices and bond yield averages
are shown in the tables below:
MOODY'S BOND YIELD AVERAGEB.1
(Based on Individual Closing Prices.)
MOODY'S BOND PRICES..
(Based on Average Yields.)
00C,
:C.
......
ICAtemsl.Pcoltalttgo20.4.41.4.4..4,14.4 bac...po
wawa a
0...aceam.a.ma.m.ww.w
a741mbapccca.c pcoc.4
a-C1.1C
a7-66a. 6t4.14O,
e
ieL.ec;-.1;-.64
sCaaCa;p.6aa:6614;464.
4aCaL.a2Ce
10
0°10,
1-4.40 V..14.0,
a ..
ma
ac c
c...laaaaaa.aaa.4.4aaa 00,
mm...avaac
0
P
79.68
104.68 100.00
92.82
w
56.64
97.47
P. U. /mita.
84.35
84.22
84.35
84.35
84.22
83.85
83.48
83.11
82.87
82.99
82.99
82.74
82.50
82.99
83.23
83.60
83.97
83.72
83.72
83.85
83.72
82.74
83.23
82.14
81.18
79.45
77.66
74.77
72.26
69.31
67.25
65.96
65.12
66.04
66.21
65.62
63.90
0385
65.29
6064
79 40
70.90
71.48
71.00
71.38
73.65
74.57
74.98
76.14
73.55
72.75
72.45
70.62
70.71
70.81
71.48
71.19
84.35
62.09
90.55
63.74
74.05
co
v.
73.25
101.81
101.64
101.64
101.47
101.64
101.64
76.78 61.71
76.89 61.49
76.89 61.87
77.22 62.17
77.11 62.25
76.89 62.25
76.67 61.71
76.35 60.97
76.25 60.67
xchang e closed
76.35 61.11
78.14 60.60
76.03 60.38
76.03 60.01
76.46 60.89
78.78 62.02
co
87.83
79.56
79.22
79.11
78.99
79.45
80.03
88.23
88.23
88.36
88.63
88.63
88.10
87.96
87.30
87.30
Stock E
87.58
87.69
87.56
87.69
87.96
87.96
4C480$00C100%020.06,4,2WAWTNIOMWV.:vvIroc.olan.
MM.
SMC-.....Pt.,40.
..tt:0.0NOOCIMIIC,Cq
....cono..tvqmaa atop.* qpiveRm...m.19aRr-agm
62.79
63.98
63.66
64.96
66.30
66.81
64.88
67.16
66.47
65.79
65.64
61.11
54.61
51.86
47.63
45.50
43.58
43.02
43.62
44.25
43.02
41.03
38 88
41.44
42.90
45.46
47.44
49.22
47.73
45.15
50.80
55.42
56.58
59.80
58.66
57.57
58.32
55.55
55.73
55.99
57.17
57.30
67.86
37.94
78.55
42.58
102.14
102.14
102.30
102.14
101.97
102.14
101.97
101.81
101.81
0
.0.5.0bC1,
010000CON0q
77.11
77.55
77.22
77.33
78.44
77.66
76.78
77.22
76.89
76.67
75.61
72.26
68.67
67.42
63.27
60.16
58.73
58.52
59.36
59.94
59.80
58.04
56.12
6852
60.31
63.19
65.62
67.07
66.64
67.07
71.29
73.45
73.85
75.29
73.35
72.26
71.77
69.77
70.62
70.52
72.06
73.15
78.55
54.43
92.97
59.87
0
RR.
101.64 88.23
101.81 88.90
101.54 88.63
101.81 88.63
102.30 89.45
101.47 88.90
100.49 87.83
100.33 88.10
99.68 87.43
99.36 87.96
98.73 86.38
96.70 83.85
95.18 80.72
94.29 79.46
93.26 77.88
91.81 76.46
90.83 74.67
90.13 74.77
90.27 75.82
90.55 76.78
90.13 76.35
89.04 73.45
86.64 73.55
89.45 77 00
92.10 78.88
93.26 80.95
93.85 81.90
94.58 82.62
92.82 80.95
92.68 79.68
94.58 82.50
96.70 84.35
96.70 84.72
97.62 85.74
95.63 83.48
94.29 82.02
93.70 81.54
91.67 79.80
91.81 80.49
92.25 81.07
93.40 82.99
93.70 82.87
102.30 89.72
85.61 71.38
106.96 101.64
87.96 76.03
80.03
80.03
80.14
80.37
80.37
80.26
79.91
79.34
79.22
80.49
81.18
80.84
81.42
82.50
82.14
80.84
81.78
81.18
80.95
80.14
76.67
72.26
70.43
66.98
64.71
82.87
62.48
63.27
63.90
63.11
60.97
59.01
62.02
63.98
66.55
68.40
69.86
68.49
67.07
71.67
74.88
75.61
77.55
75.82
4
reb. 26.......... 74.57
74.46
19
72.16
11
72.85
5
72.95
rim. 29
74.36
22
74.77
15
82.62
111111 1932
57.57
..,ow 1932
93.65
11gb 1931
62.56
..ow 1931
Year AgoToy. 18 1931.- 76.25
Two Years Ago93.55
by. 15 1930
120 Domestics
by Groups.
a a
1 4aaaaa444 gaeia4g aaage-aaaaax.gaacidO*28..04.6a4,1t:4..m..;cocsonasa
namma n a a
amm maamma anr.b.nomana
wawa
lamoommoomma
Nov. 18
17
16
15
14
12
11
10
9
8
7
5
4
3
2
1
WeeklyOct. 28
21
14
7
Sent.30
23
16
9
2
Aug. 26
19
12
5
July 29
22
15
8
1
lane 24
17
10
3
May 23....
31
14
7
61W. 29____ -_
22
15-8
1
War. 24
18
11
AU
120 Domestics by Rat nos.
120
DomesBaa.
A.
Aa.
Aaa.
M.
't-0.C.*.500.2CC
1 0.-.01c1M..coMC4
1932
Daffy
Attracts.
Nov. 19 1932
Financia,Chronicle
3414
90.55
AU
120
1932
Daily
Domes
Averages. tie.
120 Domestics by Rat ngs.
A.
Bea.
Ana.
An.
Nov.18._ 6.21
17.. 6.21
18.. 6.20
15._ 6 18
14_. 6.18
12.- 6.19
11._ 6.22
10._ 6.27
9__ 6.28
8
7__ 6.25
5._ 6.28
4._ 6.29
3._ 6.30
2... 6.26
1._ 6.21
4.62
4.62
4.61
4.62
4.63
4.62
4.63
4.64
4.64
5.55
5.55
5.54
5.52
5.52
5.56
5.57
5.62
5.62
4.64
4.65
4.65
4.66
4.85
4.65
5.60
5.59
5.60
5.59
5.57
5.57
Oct. 28..
21..
14...
7__
Sept.30__
23__
16..
9._
2_ _
Aug.26_ _
19._
12__
5__
July 29._
22__
15._
8-1-June 24-17._
10-3._
May 28__
21-14_
7-Apr. 29._
22._
15._
8._
1-.
Mar.24.1811__
4__
Feb. 26_
19__
11-5-Jan. 29..
22..
15._
Low 1932
High 1932
Low 1931
Blab 1931
Yr. Ago.
Nov.1831
2 Yrs.Ago
Nov.1530
6.17
6.11
6.14
6.09
6.00
6.03
6.14
6.06
6.11
6.13
6.20
6.51
6.94
7.13
7.51
7.78
8.01
8.06
7.94
7.88
7.98
8.26
8.53
8.12
7.87
7.56
7.35
7.19
7.34
7.50
7.00
6.68•
6.61
6.43
6.59
6.71
6.72
6.96
6.90
6.87
6.73
6.69
5.99
8.74
5.17
8.05
4.65
4.64
4.65
4.64
4.61
4.66
4.72
4.73
4.77
4.79
4.83
4.98
5.06
5.12
5.19
5.29
5.36
5.41
5.40
5.38
5.41
5.49
5.67
5.46
5.27
5.19
5.15
5.10
5.22
5.23
5.10
4.96
4.96
4.90
5.03
5.12
5.16
6.30
5.29
5.26
6.18
6.16
4.61
5.75
4.84
5.57
5.55
5.50
5.52
5.52
5.46
5.50
5.58
5.58
5.61
5.57
5.69
5.89
6.16
6.26
6.40
6.53
6.70
6.69
6.59
6.50
6.54
6.82
6.81
6.48
6.31
6.13
6.05
5.99
6.13
6.24
COO
5.85
5.82
5.74
5.92
6.04
6.08
6.23
6.17
6.12
5.96
6.97
5.44
7.03
4.85
6.57
6.47
6.43
6.46
6.45
6.35
6.42
6.50
6.46
6.49
6.51
6.61
6.94
7.32
7.46
7.96
8.37
8.57
8.60
8.48
8.40
8.42
8.67
8.96
8.60
8.35
7.97
7.67
7.60
7.55
7.50
7.04
6.82
6.78
6.64
6.83
6.94
6.99
7.20
7.11
7.12
6.96
6.85
6.34
9.23
5.21
8.41
8.02
7.87
7.91
7.75
7.59
7.53
7.76
7.49
7.57
7.65
7.68
8.24
9.20
9.67
10.48
10.94
11.39
11.53
11.58
11.23
11.53
12 05
12.67
11.94
11.56
10.95
10.52
10.16
10.46
11.02
9.86
9.07
8.89
8.42
8.58
8.74
8.63
9.05
9.02
8.98
8.80
8.78
7.41
12.96
6.34
11.64
6.55
4.91
5.58
6.84
5.17
4.47
4.75
5.22
weeny
I
40
ForP. U. Indus. sIgnl•
120 Domestics
by Groups.
RR,
5.80
5.79
577
5.77
5.77
5.79
5.83
5.85
5.86
5.85
5.86
585
5.85
5.86
5.89
5.92
5.95
5.97
10.33
10.29
10 22
10.18
10.15
10.10
10.10
10.15
10.15
5.85
5.89
5.89
5.89
5.86
5.81
5.96
5.96
5.98
6.00
5.96
5.94
10.22
10.29
10.30
10.27
10.18
10.16
6.82
6.74
6.77
6.70
6.51
6.53
6.68
6.55
6.56
6.55
6.54
7.03
7.69
7.85
8.41
8.93
9.16
9.18
9.04
8.93
9.04
9.56
10.10
9.60
9.21
873
8.40
8.05
8.28
8.49
7.77
7.16
7.05
6.78
6.87
7.00
6.99
7.25
7.16
7.10
6.96
6.95
6.30
10.49
5.06
9.43
5.78
5.71
5.75
5.67
5.61
5.66
5.75
5.68
5.74
5.73
5.81
6.07
6.43
6.59
6.86
6.95
7.24
7.27
7.22
7.12
7.21
7.33
7.54
7.06
8.87
6.72
6.58
6.50
6.67
6.98
6.43
6.15
6.12
5.93
6.09
6.24
6.25
6.47
6.44
6.42
6.20
8 08
5.59
7.66
4.95
6.81
5.01
5.88
5.90
5.90
5.89
5.90
5.98
5.94
6.03
8.11
6.26
6.42
6.69
6.94
7.25
7.48
7.26
7.73
7.62
7.60
7.67
7.88
7.95
7.71
7.55
7.24
7.08
7.02
7.07
7.03
6.80
6.71
6.67
6.56
6.81
6.89
6.92
7.11
7.10
7.09
7.02
7.05
5.85
8.11
5.38
7.90
10.20
10.09
9.97
9.99
9.98
10.08
10.48
10.33
10.92
10.99
11.10
11.30
11.53
11.73
12.02
12.16
12.13
13.75
13.93
14.30
16.75
15.29
15.28
14.82
14.03
14.10
13.70
13.31
13.39
13.23
12.77
12.66
12.62
12.31
12.55
12.82
12.86
13.23
13.00
13.29
13.12
1330
9.86
15.83
6.57
16.53
8.88
7.21
5.60
6.76
11.34
6.24
5.09
5.04
5.38
6.91
6.50
8.16
6.97
6.49
8.19
6.99
649
8 14
897
6.46
8.10
6.91
6.47
8.09
6.90
6.49
8.09
6.89
6.51
8.16
6.91
6.54
8.26
6.99
6.55
8.30
7.01
Stock E xchang e closed
6.54
8.24
6.95
6.56
8.31
6.98
6.57
8.34
7.01
6.57
8.39
7.01
6.53
8.27
6.95
6.50
8.12
6.88
basis of one -Ideal.. bond (at(% coupon, maturing In 31 years) and do not purport to show either she
•NO16.-Tbase prices are computed from average yields on the They
merely Nerve to Illustrate in a more comprehensive way the relative levels and the relative move'
average ,evel or the average movement of actual price quotation&
market.
bond
men; of yield averages, the latter being the truer picture of the
was published In the 'Chronicle" on Oct. 1 1932. page 2228. For Moody's Index of bond
Indexes
these
t The last complete list of boucle Used in computing
vrtses by months back to 1928. refer to the -chronicle of Feb.6 1932. page 907.
Sept. 21, 10.31: Sept. 20, 10.39, and Sept. 19, 10.40.
10.24:
x Revised back to Sept. 19. Other figures are as follows: Sept. 22.
Indications of Business Activity
THE STATE OF TRADE-COMMERCIAL EPITOME.
Friday Night, Nov. 18 1932.
remains practically the
trade
general
of
condition
The
same. It is along seasonal lines with buying still cautious
and a disposition on the part of business to await developments as regards the war debt settlement and budget legislation when Congress meets next month. From present
indications legislative opinion will be against granting any
prolonged delay in the payments due Dec. 15 from our
European debtors and the uncertainty regarding the effect
of this attitude is injuring the vitality of our trade and
slowing up the work of recovery generally. It is a significant
fact that while most bonds have latterly been declining,
U.S. Government obligations have been advancing. Stocks
have been dull with a declining tendency. Short selling,
although on no great scare, is becoming more popular than
it was a short time ago. All the speculative exchanges have
been quiet and commodities as a rule have also shown a
marked declining tendency however.
In general trade textiles still make the best showing with
the shoe industry next. The unit sales of shoes this week
are reported as about 5% larger than in the same week last
year with dollar volume smaller owing to the decline in
prices. The demand, it appears, is mostly for the cheaper
descriptions such as retail at $2 to $4. October department
store sales increased by 3% with dollar volume 18% under
that of October last year. Building is very dull and engineering construction is also backward. Electric power produc-
Volume 135
tl'inancial Chronicle
tion has recently expanded by an approximately seasonal
amount. In the retail trade interest now centers in the
holiday business and the release of Christmas savings ia
expected to cause a noticeable increase in such trading though
it is not expected to be as large as that of last year. Some
reports state that retailers with depleted stocks after long
abstention from buying are in some cases buying more freely
and that taking retail trade in general the improvement
which in some cases began last August is maintained. As a
rule, however, business keeps within_ eouservative bounds
pending further developments. Wheat—has been mbstly
quiet but latterly has given way to- near13;.-ffie Siowesi prices
recorded under the- weight of steady Murciano- Nrid"reports
of large indicated crop yields in Agstralia and the Argentine.
Corn has decline& with whebt especially as the export trade
has disappeared and the Eastern demand whicht-One time
was fair has slackened. Oats and rye hate follerived the
more active grains downward. Cotton, although receding
With otlier"commodities,• has reeisted pressure recently owing
to a persistent trade demand and a falling off in the hedge
selling. Earlier reports of damage -done by the Cuban
hurricane to the sugar crop in that island proved to have been
exaggerated and prices both for raw sugar and futures hate
declined in quiet„tradin„
Coffee has advanced on advices from Brazil that no change
in-the present,export tax method would"be made. Iron and
A'Ott are still quiet although considerable material will be
needed shortly to satisfy the immediate needs of automobile
manufacturers in preparation of new models. The automobile industry is showing more activity for this reason. Arguments continue pro and con as to the actual amount' of
financial benefit which will accrue to the country at large
from the modification of the Volstead Act provided that such
action is taken by Congress in December. The consensus of
opinion is that modification will be an economic and psychological help but will not prove the panacea for all evils looked
for in some quarters. Meanwhile the.inidertone of business
is still hopeful but real activity is in abeyance pending the
clearing up of the debt situation—witg.all that the final
decision regarding it may mean as to the future of the price
level.
The;stock market on the 12th acted for the most part
steady although there was some irregularity. But profit
taking halted the advance and the transactions fell off to
888,752 shares, though this was muchlarger than on some
recent Saturdays. Bonds were a fraction higher in most
cases and 2 to 4 points higher in others, with sales of $4,464,000. Car loadings in the first week of November decreased
23,334 cars from the previous week. Wall Street approved
President Hoover's appeal for "unity of national action"
irrespective of politics on measures looking to the welfare of
the country. Stocks on the 14th declined 1 to 3 points but
partially recovered the lost ground and at the close the net
loss in the pivotal stocks was about 2 points. The reaction
was pretty generally looked for after the rapid advance of
last week and no special significance was attached to it.
Transactions were in slightly more than 1,300,000 shares or
only about half of the volume of the previous full day,
Friday. Bonds showed an irregular decline with sales of
$7,270,000.
On the 15th stocks were dull, the trading being in only
1,048,000 shares. Prices closed irregular but with the tone
steady and firm. There was a rise of a small fraction in some
of the leaders although apparently there was a greater
volume of professional short selling than has recently been
in evidence. The confidence of the bearish element was
increased by the overshadowing importance of the war debt
question. For the same reason there was little indication
of any aggressive buying power. Bonds were irregular with
sales of $7,040,000. U. S. Government issues were higher
but the tone of the rest of the list was a bit hesitant. On
the 16th stocks were 1 to 4 points lower and dull, the sales
being only 946,000 shares. The uncertain outlook in the
matter of dividends was one reason given for the decline.
The American Telephone Co. with the help of its old surplus
declared the usual dividend at the rate of 9%. The trading
was cautious with perhaps a little more tendency to sell
for a turn. Bonds were in general lower or irregular while
U. S. Government issues were higher; the transactions were
$7,200,000.
On the 17th the market was even duller than on the day
before the sales being only 700,200 shares and prices declined
slightly partly in response to a break in wheat and sterling
exchange. The latter fell 2%c. American Telephone with
3415
a small advance was one of the exceptions to the decline,
but U. S. Steel dropped 2 points.- U. S. Government issues
in advanced: • Stocks to-day were firmer early but deined later with wheat. Trading was very small. Not all
of the early advance was lost however,for some leading issues
were fractionally higher at the close. Bonds were either
steady or slightly higher on high grade issues, with TT. S.
government shares showing the most activity. In the main
trading was quiet with sale3 for the day estimated at
$7,700,090.
At Utica, N. Y., local textile industries have virtually
returned to normal. According to the Industrial Association
of Utica, with working schedules up to 98% of normal. The
report is the most optimistic given in 1932. Utica textile
factories in October reported the number, of men employed
as 90.6% of normal and schedules 98%. In -September
textiles here reported 81% employment and 92.6% working
schedule. Major industries of the city when averaged show
an increase in October.over September of 8.4% in employment and 4.2% hours worked. At New Bedford', Mass.,
Nashawena Mills has closed its Mill B completely. Nashawena Mill A is operating in part, but is not running full.
It is understood the closing Of Mill B is for a short time only,
_though no offl,statement_on this point was,forthcoming.
Providence wired that late last week the textile mill property
in tM Pawtuxet Valley section of Rhode Island suffered
consiatable damage'When the Pawtuxet River, which feeds
virtuallrevery mill in the valley rose in flood as a result of
torrential- rains. In the Arctic area -basements of nearly
every mill for a time were flooded.
At Mooresville, N.C.,after a shutdown of several mouths,
the Mooresville Corp. has started operations. PhiladelPhia
wired that activity among worsted knitting yarn spinners
in this district continues to decline—.Those operators
having cheap wools and forward orders for ,yarns _placed
under the present level are running fairly well, but not comparable with the rate of a month ago; spinners that have
been working hand to mouth show a greater drop in machinery activity, one medium sized firm reportinra 25% rate
this Week, against 100% early in October.
The Plate Glass Manufacturers of America report an
increase in the total production of polished plate glass from
3,405,854 square feet during September to 3,935,416 square
feet during October. Production during Oct., 1931,
amounted to 4,531,507 square feet. -- At Greenville, S. C.,
the local plant of the Virginia-Carolina Chemical Co. will
resume operations within two or three weeks after several
months of suspension.
As to the weather on the 12th inst., it was clear and cold
here, 35 to 53. Buffalo, N. Y., had the heaviest snowfall in
8 years with a minimum temperature of 27. Cities east and
west of Buffalo had little or no snowfall. Philadelphia had a
brief snow flurry and a temperature of 36. It was cold all over
the South with 32 degrees in Atlanta and in the 30s in many
other parts. It was 10 degrees below zero at Winnipeg on the
13th and 35 to 45 above in N. Y. City. On the 15th New
York City temperatures rose from 41 to 60. Chicago had
34 minimum. Cincinnati 46 to 52, Detroit 40 to 49, Minneapolis 2 to 12, Omaha 12 to 18, Boston 42 to 64,-Philadelphia
42 to 60, Seattle 46 to 54, San Francisco 54 to 60 and Winnipeg 20 degrees below to 4 above zero.
On the 16th it was 48 to 58 here; Boston had 42 to 66;
Chicago, 32 to 36; Kansas City, 10 to 26; St. Paul, 4 to 22;
Omaha, 10 to 30; St. Louis, 20 to 30; Seattle, 52 to 58, and
Winnipeg, 12 below to 10 above. There was a cold wave
in parts of the South, though Savannah had a temperature
of 73. There was a general killing frost in northern Louisiana
with the thermometer at 24 at Shreveport. Detroit had
the heaviest November snowfall, 10 inches,on record. Other
parts of Michigan had heavy snow storms; also Ohio, with
nine to 12 inches. Kansas had a temperature of one above
zero. Snow and sleet fell in Arkansas and heavy snow
at Buffalo, N. Y.
To-day it was 32 to 45 degrees here and the forecast was
for rain to-night or to-morrow. Overnight Boston had
30 to 56 degrees; Philadelphia, 36 to 52; Pittsburgh, 30 to 42;
Portland, Me., 30 to 56; Chicago, 32 to 36; Cincinnati,
32 to 40; Cleveland, 28 to 38; Detroit, 24 to 32; Milwaukee,
34 to 36; Kansas City, 22 to 34; St. Paul,22 to 36; St. Louis,
22 to 38; Los Angeles, 66 to 84; Portland, Ore., 54 to 66;
San Francisco, 36 to 44; Montreal, 16 to 32, and Winnipeg,
2 below zero to 20 above.
Loading of Railroad Revenue Freight Again Falls Off.
Loading of revenue freight for the week ended on Nov. 5
totaled 588,383 cars, according to reports filed on Nov. 12
by the railroads with the car service division of the American
Railway Association. Due to the usual seasonal decline in
freight traffic this was a reduction of 29,259 cars under the
preceding week. It also was a decrease of 128,665 cars under
Financial Chronicle
3416
the same week in 1931 and 293,134 cars under the same week
two years ago. Details are outlined as follows:
Miscellaneous freight loading for the week of Nov.5 totaled 210,147 cars,
a decrease of 16,002 cars under the preceding week, 54,303 cars under the
corresponding week in 1931 and 119,288 cars below the same week in 1930.
Loading of merchandise less than carload lot freight totaled 177.195
cars, a decrease of 467 cars below the preceding week. 35.470 cars below the
corresponding week last year and 59,538 cars under the same week two years
ago.
Coal loading totaled 124.766 cars, a decrease of 4,103 cars below the preceding week, 9,113 cars below the corresponding week last year and 47,549
cars below the same week in 1930.
Live stock loading amounted to 19,713 cars, a decrease of 3.895 cars below
the preceding week. 7,198 cars below the same week last year and 9,453
cars below the same week two years ago. In the Western districts alone.
loading of live stock for the week ended on Nov. 5 totaled 15,529 cars, a
decrease of 6,378 cars compared with the same week last year.
Grain and grain products loading totaled 29.863 cars. 2,088 cars below
the preceding week, 10,497 cars below the corresponding week last year and
9.055 cars under the same week in 1930. In the Western districts alond.
grain and grain products loading for the week ended on Nov. 5 totaled
19,126 cars, a decrease of 7.514 cars below the same week in 1931.
Forest products loading totaled 17,416 cars, a decrease of 1,440 cars below
the preceding week,5,937 cars under the same week in 1931 and 20,198 cars
below the corresponding week two years ago.
Ore loading amounted to 4,284 cars, a decrease of 1.735 cars below the
week before. 5,103 cars under the corresponding week last year and 24.329
cars under the same week in 1930.
Coke loading amounted to 4,999 cars, an increase of 471 cars above the
preceding week. but 1.044 cars below the same week last year and 3.726
cars below the same week two years ago.
, Nov. 19 1932
All districts reported reductions in the total loading of all commodities
Compared with the same week in 1931 and 1930.
Loading of revenue freight in 1932 compared with the two previous years
follows:
Four weeks in January
Four weeks in February
Four weeks in March
Five weeks in April
Four weeks in May
Four weeks in June
Five weeks in July
Four weeks In August
Four weeks In September
Fiva weeks in October
Week ended Nov.5
Total
1932.
1931.
2,269,875
2,245,325
2,280,672
2,772,888
2,087,756
1,966,355
2,422,134
2,065,079
2,244,599
3,158,104
588,383
2,873,211
2,834,119
2.936,928
3,757,883
2,958.784
2,991,950
3,692,362
2,990,507
2,908,271
3.813,162
717,048
3,470,797
3,506.899
3,515,733
4,561,634
3,650,775
3,718,983
4,475,391
3,752,048
3,725,686
4,751,349
881.517
24.101.170
32 474 2ns
40 010.812
1930.
The foregoing, as noted, covers total loadings by the railroads of the United States for the week ended Nov. 5. In
the table below we undertake to show also the loadings for
the separate roads arid systems. It should be understood,
however, that in this case the figures are a week behind those
of the general totals-that is, are for the week ended Oa.29.
During the latter period 19 roads showed increases over the
corresponding week last year, the most important of which
were the Pittsburgh & West Virginia Ry., the Montour RR.,
the Spokane Portland & Seattle Ry., the Virginian Ry., the
International-Great Northern RR. the Detroit Toledo &
Ironton RR., the Gulf Coast Lines and the Rutland RR.
REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS (NUMBER OF CARS)-WEEK ENDED OCT. 29.
Eastern DistrictGroup A:
Bangor & Aroostook
Boston & Albany
Boston & Maine
Central Vermont
Maine Central
New York N. H.& Hartford
Rutland
Total
Group B:
y Buff. Rochester & Pittsburgh..
Delaware & Hudson
Delaware Lackawanna & West_
Erie
Lehigh & Hudson River
Lehigh ge New England
Lehigh Valley
Montour
New York Central
New York Ontario & western..
Pittsburgh& Shawmut
Pittsb. Shawmut & Northern-x Ulster & Delaware
Total
Group C:
Ann Arbor
Chicago Indianan.& LouisvilleCleve. Cin. Chi. & St. Louis_
Central Indiana
Detroit & Mackinac
Detroit & Toledo Shore LineDetroit Toledo & Ironton
Grand Trunk Western
Michigan Central
Monongahela
New York Chicago & Bt. Louis.
PereMarquette
Pittsburgh & Lake Erie
Pittsburgh & West Virginia
Wabash
Wheeling & Lake Erie
Total
Grand total Eastern District
Allegheny DistrictBaltimore & Ohio
Bessemer & Lake Erie
y Buffalo & Susquehanna
Buffalo Creek & Gauley
Central RR. of New Jersey.....
Cornwall
Cumberland & Pennsylvania
Ligonier Valley
Long Island
Pennsylvania System
Reading Co
Union (Pittsburgh)
West Virginia Northern
Western Maryland
Total
Pocahontas DistrictChesapeake di Ohio
Norfolk & Western
Norfolk & Portsmouth Belt Llise
Virginian
Total
Southern DistrictGroup A:
Atlantic Coast Line
ClInchfield
Charleston & Western Carolina
Durham & Southern
Gainesville & Midland
Norfolk Southern
Piedmont & Northern
Richmond Frederick.& Potom_
Seaboard Air Line
Southern System
Winston-Salem Southbound _ _
Total
Total Loads Received
from Connections.
Total Revenue
Freight Loaded.
Railroads.
1932.
1931.
1930.
1932.
1931.
1,271
2,875
8,052
683
2,520
10,426
726
1,827
3,603
9,387
818
2,944
13,355
696
1,841
3,672
11,502
872
4,149
14,902
762
215
4,540
9,746
2,321
1,877
11,438
931
252
5,617
11,635
2,766
2,577
14,227
1,170
26,553
32,630
37,760
31,088
38,244
5:iii
ago
11.306
14,179
226
1.771
9.783
1,796
25,671
2,016
699
439
o;oi5
8,278
11.469
123
1.412
7.980
2,319
20,270
1,994
464
319
12,916
16,401
245
2,272
11,377
2,782
33,581
1,466
633
586
6.119
5,438
13,161
1,916
899
6,467
43
25,437
1,923
66
252
6,315
14,440
2,315
1,124
7,724
85
29,772
2,080
170
232
59,756
74,466
91,322
61.721
71,640
605
1,598
7,706
38
404
178
1,370
2,132
5,364
3,649
4,445
4,227
3.741
1,524
5,154
3.281
676
1.876
9,414
51
411
293
1,093
2,772
6.309
4,208
5,804
5,938
4,574
1,175
6,213
3,436
740
2,423
11,358
76
528
243
2,230
4,173
8,747
5,840
6,867
7.387
6,073
1.843
7,394
3,862
1,030
1,707
10,896
49
135
1,995
711
5.360
7,041
211
7,895
4,249
4,341
534
6,757
1.936
1.138
1,982
11,458
88
129
2,178
766
6,214
8.657
238
8,191
4,550
5,062
809
7,747
2,297
45,416
54,243
69,534
43,847
61.504
131,725
161.339
198,616
147.636
171,388
26,600
1,564
33,043
2,146
40,548
4,676
13,119
768
16,477
1,293
278
5,589
1
244
189
1,030
55,954
13,612
3,565
237
10,507
500
395
161
1,972
91,153
19,094
9.365
68
4,019
4
9,918
41
26
9
3,131
37.357
14,103
1,139
3,183
168
8,794
512
371
177
1,577
73,515
16,584
6,696
45
3,783
3;iii
5
12,562
77
20
40
4,290
43,731
18,980
1,838
1
4,563
111,859
147,410
182,695
82,880
103,877
23.107
23,404
29,314
7,427
8,351
18,482
770
3,550
20,068
908
3,457
22,091
1,100
4,098
3,459
1,031
614
3,750
1,684
410
45,909
47,837
56,603
12,531
14,195
7,177
826
376
129
72
1,673
484
305
6,686
19,492
219
8,949
1,331
438
189
53
2,050
553
426
7.964
23.544
226
12,564
1,425
706
201
121
2,323
635
468
10,814
27,474
225
3,930
1,060
674
354
106
1,115
736
2,269
3,217
11.014
751
4,880
1,218
951
347
154
1,338
896
2,874
3,785
13,394
1,118
37,438
45,723
56,956
25,226
30,955
so
7,383
GTOUP B:
Alabama Taus.& Northern____
Atlanta Birmingham ds Coast__
AU.& W.P.-West RR.of Ala
Central of Georgia
Columbus& Greenville
Florida East Coast
Georgia
Georgia & Florida
Gulf Mobile & Northern
Illinois Central System
Louisville & Nashville
Mason Dublin & Bavannah
Mississippi Central
Mobile & Ohio
Nashville Chattanooga & St. L.
New Orleans-Great Northern
Tennessee Central
1932.
1931.
1930.
233
648
702
3,215
•237
657
962
305
880
22,097
18,085
124
175
2,091
2,862
696
259
283
688
745
3.682
347
672
1,009
402
940
25,336
19,648
128
221
2,374
3,379
951
585
276
925
937
4,515
462
809
1,383
554
1,371
29,746
26,408
181
280
3,107
4,007
795
730
1932.
139
529
1,007
2,159
236
342
1,074
245
696
8,082
3.364
238
259
1,537
1,841
356
689
1931.
184
627
1,282
2,520
329
466
1,432
260
897
9,966
4,391
318
377
1,317
2,103
395
609
54,228
61,370
76,480
22,793
27,473
Grand total Southern District
91,666
107,093
133,436
48.019
58,428
Northwestern DistrictBelt Ry. Of Chicago
Chicago & North Western
Chicago Great Western
Chic. Milw. St. Paul & PacificChic. St. Paul Minn. & Omaha
Duluth Missabe & Northern_Duluth South Shore & Atlantic
Elgin Joliet & Eastern
Ft. Dodge Des M.& Southern.
Great Northern
Green Bay & Western
Minneapolis & St. Louis
Minn. St. Paul & S. S. Marie
Northern Pacific
Spokane Portland & Seattle__
1,093
14,756
2,405
18,114
3,442
1,479
822
2.838
.266
10,765
596
1,857
5,262
10,255
1,225
1,351
18.300
3,080
21,607
3,812
1,904
1,152
3,973
320
12,034
681
2,011
5,532
11,304
968
1,64424,182
3,427
27,276
5,472
12,560
1,426
6,349
419
20,985
847
2,959
7,983
15,052
1,814
1,708
8,813
2,486
6.718
3,383
110
361
3,214
137
1,542
340
1,634
1,940
2,093
913
1,696
9,683
2,919
7,571
3,234
112
370
4,354
143
2,190
440
1,742
2,184
2,520
997
75,175
88,029
132,195
35,392
40,164
23,189
3,053
141
16,511
12,480
2,611
1,672
4,353
546
1,959
665
202
15,716
168
300
17,484
620
1,434
27,597
3,805
200
20,796
15,754
2,868
2,304
4,778
727
2,622
727
137
18,196
340
292
19,095
778
1,827
32,531
4,634
303
27,460
18,394
3,989
2,528
6,139
914
2,316
1,186
341
25,336
420
30(1
24,061
1,039
2,277
5,134
1,774
32
7,212
6,278
1,680
938
2,474
7
1,344
214
34
2,813
286
1,020
8,462
' 8
1,941
5,908
1,940
37
7.904
7,521
2,079
1,368
2,693
14
1,361
266
3,633
261
786
8,897
9
1,631
103,104
122,843
164,174
41,651
46.043
DO
•239
299
1,794
129
2,252
281
1,566
1,352
*89
835
101
5.879
15,514
51
234
10,203
3,123
264
6,733
5,639
1,510
27
188
210
290
1,587
113
2,029
282
2,032
2,155
334
930
151
6.037
19,380
45
177
I 0,720
3,750
357
7,754
5,644
1,622
25
269
479
383
2,163
277
2,268
458
2,488
1,642
340
1,382
154
7.132
22,086
42
' 172
12,800
3,341
367
9.437
7,088
2,189
39
2,496
790
138
836
27
1,837
772
1.367
874
438
198
322
2,436
7,569
18
151
3,307
1,201
237
2.515
3,099
2,062
40
2,661
715
114
1,441
43
2,135
1,043
1,979
1,028
521
233
376
2.341
8,170
37
142
3,723
1,381
261
3,357
3,748
2,588
58
58, 204
65.812
76.996
32,739
38,095
Total
Total
Central Western Dist.Atch. Top.& Santa Fe System.
Alton
Bingham & Garfield
Chicago Burlington & Quincy..
ChicagoRock Island & Pacific
Chicago & Eastern
Colorado & Southern
Denver & Rio Grande Western
Denver & Salt Lake
Fort Worth & Denver City
Northwestern Pacific
Peoria & Pekin Union
Southern Pacific (Pacific)
St. Joseph & Grand Island
Toledo Peoria & Western
Union Pacific System
Utah
Western Pacific
Total
Southwestern DistrictAlton & Southern
Burlington-Rock Island
Fort Smith & Western
Gulf Coast Lines
Houston & Brazos Valley
Internatlonal-Great Northern
Kansas Oklahoma & Gulf
Kansas City Southern
Louisiana & Arkansas
Litchfield & Madison
Midland Valley
Missouri & North Arkansas_ _
MIssouri-Kansas-Texas Lines_
Missouri Pacific
Natchez & Southern
Quanah Acme & Pacific
St. Louis-San Francisco
St. Louis Southwestern
San Antonio Uvalde & Gulf-Southern Pacific in Texas & La.
Texas & Pacific
Terminal RR. Assn. of St. Louis
Weatherford Min. Wells& N.NV.
Total
Included in New York Central. y Included in Baltimore & Ohio RR. z Estimated. •Previous week.
Total Revenue
Taal Loads Ragloed
Freight Loaded.Porn COWIdegi0118.
Railroads.
5e
olume 135
Financi
Chronicle
3417
. M. Anderson Jr. of Chase National Bank Believes
Business on Mend—Improvement in Prospect in
Fundamentals—Worst of Latter in Foreign Trade
and Foreign Credit Situation—Reduced Tariffs
Necessary to Restore Domestic Equilibrium.
Expressing the opinion that real improvement has taken
place in the ,business situation and that "much greater improvement &s in prospect with respect to the fundamentals,"
Benjamin M. Anderson Jr., Ph.D., Economist of the Chase
National Bank of New York, on Nov. 15 went on to say that
"the worst of these fundamentals is in the foreign trade
and foreign credit situation." In the view of Mr. Anderson,
"we should lower the tariffs so that the foreign customers
of our export interests can send goods here, sell them, turn
over the dollars to their creditors, and use the rest of the
dollars in buying our export goods." "This is necessary,"
said Mr. Anderson, "to lift the buying power of American
a llricultural and our other great, depressed export interests,
so that these, in turn, can make a good domestic market
for those of us who do not depend on export trade but rely
primarily upon the domestic market. Thus we shall restore
the balance among the various elements in our economic
situation." Mr. Anderson's views, quoted in the foregoing
extracts, were contained in an address before the Illinois
Manufacturers' Costs Association at the Hotel La Salle,
Chicago, Ill., in which he discussed "The Business and Financial Situation—Retrospect and Outlook—With Special Reference to Prospective Tariff Reductions." In his address Mr.
Anderson said:
the middle of 1931 to June and July of 1932 was a period when both the
level of security prices and the volume of business were contracted unduly
nder the influence of false fears. (1) There was the fear that we would
ah,sndon the gold standard under the pressure of foreign withdrawals of gold.
(2 There was a fear that our Congress would wreck the credit of the
Government and wreck the currency by unsound legislation. (3) There was
the fear of an utter collapse of Germany through the inability of Germany
and France to compose their differences. (4) There were vague, indefinite
fears of a general collapse of the capitalistic system.
The drop in business from the high level of 1929 to the low level of the
summer of 1931 was thoroughly justified. But most of the trouble in the
year that followed was greater than the fundamentals called for and was
due to the paralyzing influence of fear and fear of things that we now
know were not going to happen. A rally in business merely to the levels
of the summer of 1931 would solve many of the worst of our problems. It
would mean an enormous decrease in unemployment. Railroads with volume
of traffic at mid-1931 levels and with costa reduced as they now are would
generally be earning fixed charges, and would, in many cases, be making
good profits.
The drop in the seasonally adjusted business index of the New York
"Times" (based on steel production, automobile production, electric power
production, car loadings and cotton textiles) was from 75% in the summer
of 1931 to 52.2% in early August of 1932, from which point it has had a
rally. If we could get back to that 75% level, our more serious problems
would look very manageable, indeed.
I wonder how many of us realize that the movement in security values
under the spell of the panic through which we have passed in this year 1932
was more severe in percentage than any single downward movement in the
two and a half years that preceded. A well-known stock market average,
based on 25 rails and 25 industrials, stood at the high of March at approximately 80, dropped by July 8 to 34, a decline of 57%, from which low level
it had returned, at the close on Nov. 11, to 61.35%, a rally of 80% from
the July lows.
The stock market in June, largely under the influence of paralyzing
fear, saw our best investment stocks giving a 10% yield or more, and it
saw a daily volume on the Stock Exchange so small, and at prices so low,
that a few million dollars would buy the whole daily offering. It was
merely waiting for a little courage and a little investment buying to shoot
it up violently, and, with the restoration of that courage, we got that.
Politics and Economics.
I invite you to turn with me to-night from politics to economics. We
have been through a. stormy political campaign. We take our politics
seriously in the United States while the campaign is on. We get tremendously excited about things. We conjure up bogies and nightmares. Our
imaginations are so good that we are even able to believe, for a time, in
the caricatures which we create of opposing political parties and of opposing political leaders. But, when the campaign is over, Democrats and
Republicans can sit down together at the dinner table and laugh about it.
Things that looked terribly earnest and real while the campaign was on
become good jokes afterwards. We accept the result. We have confidence
in the good faith, in the wisdom of the new Administration, whichever
party may succeed, we wish the new President well, we hold ourselves
ready to co-operate with him at his call, and we go on from there.
The Revival of Confidence.
Confidence has returned. There were some disturbing incidents connected
with the political campaign in October which tested financial and business
confidence, and which have led to some moderate reaction, but the fabric
of confidence was tough enough and strong enough to stand these episodes,
and we have, in October and early November, a demonstration, I believe,
that the panic is really behind us. The ghosts tried to walk again, but we
didn't really believe in them.
Some of these ghosts may come back. We face, of course, a bad winter,
a desperately bad winter. There will be a great deal of suffering. Relief
measures may be inadequate. Pressure on the Government for greater
relief measures will probably lead to some concessions. We may have
temporary scares connected with the Government's deficit, though I think
that we shall realize, when they come, that a great, rich country like
ours, very lightly taxed as compared with all the countries of Europe,
can afford a deficit for a time, provided it is making proper efforts to
increase revenues and to reduce expenditures, and showing an intelligent
understanding of the problem and a definite determination to deal with
it in a responsible manner.
Business Bad But Improving.
The present economic situation is bad, extremely bad. But I believe, and
I think that we all believe, that it is on the mend. I believe that the turn
came in the banking situation when the Reconstruction Finance Corporation
began to function, and that the last really important phase of the banking
situation was cleared up late in June. I believe that we reached bottom
in security values in June and early July, and I believe that we reached
bottom as regards volume of business with respect to the season in the first
week of August. Improvement with respect to all three of these points
since the dates mentioned has been definite and strongly marked, and, while
there may be setbacks, I do not think that we shall go as low again, and
I think that the future trend is upward.
Of course, you know that exact prediction in economic matters is impossible, and that all that one can do is to analyze trends and underlying
causes. A certain measure of prediction one must make every day as one
takes practical action, and practical action in an uncertain world must be
based on probability. What I am saying, therefore, is said "when, as
and if, subject to prior commitments and future cancellations, obtained
from sources believed to be reliable, but not guaranteed." But I have a
great confidence that things are clearing up, and that we have seen the
worst of this great national and world disorder.
Business 1Vorse Than the Fundamentals Justify.
This confidence rests on two considerations: first, that progress has been
made and that much greater progress is in early prospect with respect to
clearing up the fundamentals of this great disorder; and, second, that the
present business situation is worse than even the fundamentals justify.
We had earned a terrific economic set-back as the result of our follies
from 1922 to 1928 and 1929, the three worse of these follies being: (a) our
high protective tariffs; (b) our cheap money policy, which enabled us to
get exports out despite the high tariffs, and which also brought us our
appalling growth of debt, our immense bank investments in real estate
mortgagee, the rapid growth in installment finance, our immense over-issue
of securities, our enormous bank purchases of bonds, and our fantastic
stock market speculation; and (c) the excessively high schedules for reparation payments and inter-allied debt payments, which were the main cause
of the German collapse and a large contributing cause to the abandonment
of the gold standard by Great Britain, since each involved a fearful marginal
pressure on budgets already overstrained.
1930 Better Than We Had a Right to Expect.
Following the stock market crash,'we bad every reason to expect a great
reaction in business. We delayed this by unsound measures in 1930: (1) a
renewal of cheap money, new foreign security issues, and a renewed stock
market boom; (2) the pressure on railroads, public utilities, municipalities.
and others to borrow money and to spend money for the sake of whipping
things up; (3) the artificial maintenance of wages; and (4) a concerted
pmaram of optimistic talk, under the leadership of the Government. We
lived, in substantial part, on false hopes through 1930, and business did
not really reach the levels justified by the fundamentals until the summer
of 1931, when the acuteness of the foreign situation, manifesting itself,
first in Austria, and then in Germany and England, brought us to sharply
lower levels of activity here.
Reaction in 1931-32 Greater Than Fundamentals Called for—Panic Fears.
When England was forced off the gold standard, and the foreign raid
began on our own gold in the autumn of 1931, with a great liquidation
movement in bank credit anti with an enormous increase in bank failures, we
came into an era in which fears were worse than facts, and the period from
The Assembling of Congress.
There may be, with the assembling of Congress, some new political
fears, but I think we learned last winter that the Congress was, after all,
definitely well intentioned. Bad legislation was threatened, but very little
of it was adopted. The steady, sober men in Congress generally prevailed
in the actual legislation adopted. The great difficulty in the last Congress.
was the lack of effective party control in either house, and the lack of
political sympathy between the Congress and the Executive. The lack of
effective party control made for delay, but, when the actual record of
legislation was tallied, it proved to be a pretty good Congress after all.
Able men of both parties co-operated on essential legislation, and co-operated
also in preventing dangerous legislation. One very clear gain from the
sweeping Democratic victory is that President, House and Senate can now
work in close harmony again, and that quick action on vital problems
can be obtained. Party responsibility can be enforced. Whatever the
fears that may arise in the coming months, I think it reasonably certain that
they will merely be echoes of fears which we have already had in intensified form in the terrible winter of 1931-32 and in the spring of 1932.
I can't imagine a fear regarding anything that was not current at that
time, and I am confident that echoes will not disturb us in anything like
the degree that the first noise did.
The Outlook for Fundamental Imiprovement—Foreign Trade the Heart
of the Matter.
I repeat, I have large confidence in the future, both because the situation
this year is worse than even the bad fundamentals have justified, and
because I believe that real improvement has taken place, and that much
greater improvement is in prospect with respect to the fundamentals.
The worst of these fundamentals is in the foreign trade and foreign credit
situation. On an adequate export trade depends the prosperity of American
agriculture, much of our raw material production and no small
part of
our mass production in manufacturing.
Production and Consumption.
It is a fallacy to say that we produce in this country more than
we can
consume, taking things in the aggregate. The ability to consume
depends
on the ability to produce. A great producing country is a
great consuming
country. The 120 millions in the United States consume vastly more
than
the 500 millions of China, and solely because they produce
vastly more.
Our Large Production Gives Us the Income Which Pays
for Our Large
Consumption.
The production of wheat creates purchasing power which
makes possible
the consumption of automobiles, of silks, of sugar, of
cotton goods and of
other things that the wheat producer wants. The production of
automobiles
creates the purchasing power that makes possible the
consumption of wheat,
of silks, of sugar, of cotton goods and of other things
that the automobile
producer wants. And so with every other commodity. It is supply
of its
Own kind, but it is also demand for everything
else.
When goods are produced in the proper proportions, that law holds.
Each comes into the market as demand for all the
others, and, in the
exchange in the markets of one for the other the markets are cleared and
way is made for more to be produced. And growing production on
one kind
of commodity creates increased demand for other kinds of commodities.
Financial Chronicle
3418
Unbalanced ProductionForeign Trade Needed to Restore Our Equilibrium.
' But, when the balance among them is disturbed, difficulties arise. When
• too much of one thing is produced arid too little of another, then the terms
of exchange betWeen them are disturbed, and the markets will not take
the over-produced commodity at such prices as to enable its producers to
buy adequately of other things. And then even the relatively scant commodity appears to be excessive, and production there is also curtailed.
Balance, equilibrium, proper proportion—here is the vital necessity. 'With
corn at 10c. a bushel on the farms, with hogs at $2.80 on the farms, with
wheat at only 46c. a bushel in Chicago, the farmer cannot look, the manufacturer in the eye an even terms and keep the factories busy.
• We could consume everything that we produced in the United States if
we had the proportions of our production properly balanced. But as our
activities are at' present 'proportioned We haven't, looking at our country
alone, the proper balance. Part of our industry creates an export surplus,
and, if it lacks the necessary export market, the whole industrial balance
is broken. Our farmers must sell abroad on satisfactory terms if our
manufacturers are to prosper.
Experts and Tariffs.
„ But this means that our foreign customers must be able to get bold of
dollars with which to buy our export goods. Our high tariffs prevent their
doing this in adequate amount. They must get hold of enough dollars, not
merely to buy our goods, but also to pay interest and amortization on the
debts that they owe us. When our tariffs were raised in 1922, there
were serious warnings with respect to these points. The American
Bankers' Association in 1923 sounded a warning. If Europe could not sell
to us how could she buy? None the less, from 1922 till far into 1929, she
did buy. From the middle of 1924 into 1929, she even bought enough
to make a fairly satisfactory export situation in agriculture and to make
prices for agricultural commodities, which, while they did not satisfy the
farmers, still look amazingly good from the standpoint of the present
tragic markets. American farmers were in position to buy a great lot of
manufactured goods during this period.
Exports and Foreign Loans.
How was it we maintained our export trade when our tariffs were so
high and the foreigner could not earn enough dollars in our markets? The
answer is simple. We wouldn't let him earn the dollars here, but we lent
him the dollars. Europe sent us one year long-time bonds in the purchase
of her daily bread, and next year sent us more long-time bonds with which
to pay interest on last year's bonds, and with which to buy more daily
bread, and year after year the think went on. But observe that this was
merely postponing the day of reckoning. Observe that this meant that
more and more of the money loaned to the outside world currently had
to be used in paying interest and amortization on previous borrowings and
that a progressively smaller proportion of it was available for buying our
goods. Observe that this meant that foreign loans had to increase year after
year in order that foreign trade might remain constant year after year,
and observe that inevitably a payday would come in which foreign payments would exceed foreign loans and in which export trade would collapse
unless we lowered the tariffs so as to permit exports to be paid for by
Imports. Observe, too, the immense possibility in this that, when that payday came, not a few of our foreign debtors, lacking gold, and prevented
from shipping goods, would be unable to pay and would default.
All this which was prophecy has now become history. Foreign loans and
export trade have largely ceased together. Observe these figures:
AMERICAN EXPORTS, IMPORTS AND FOREIGN LOANS.
Exports.
Imports.
Excess of
Exports.
New Foreign
SecurUy Issues.
•
NV.
P.P.iCtsWOQ...N
NNNNN.NNMMM
OCAOO*0005M=0
8630,000,000
$719,000,000
$3,832,000,000 $3,113,000,000
267,000.000
376,000,000
4,168,000,000 3,792,000,000
981,000,000 1,047,000,000
4,591,000,000 3,610,000.000
683,000,000 1,078,000,000
4,910,000,000 4,227,000,000,
377,000,000 1,145,000,000
4,808,000,000 4,431,000,000
680,000,000 1,562,000,000
4,865,000,000 4,185,000,000
5,128,000,000 4,091,000,000 1,037,000.000 1,319,000,000
759,000,000
842,000,000
5,241,000,000 4,399,000,000
782,000,000 1,010,000,000
3,843,000,000 3,061,000,000
255,000,000
333,000,000
2,424,000,000 2,091,000,000
0
174.000.000
I lag non 000 1 015_000 000
•First nine months.
Tariff Reduction to Restore Domestic Equilibrium.
We should lower the tariffs so that the foreign customers of our export
Interests can send goods here, sell them, turn over the dollars to their
creditors and use the rest of the dollars in buying our export goods. This
is necessary to lift the buying power of American agricultural and our
other great, depressed export interests, so that these, in turn, can make a
good domestic market for those of us who do not depend on export trade
but rely primarily upon the domestic market. Thus we ahall restore the
balance among the various elements in our economic situation. Then the
country generally, including the manufacturers from whom part of their
protective tariffs have been withdrawn, will have a growing, profitable and
trustworthy market in which to do business. It- is of no use to anybody
to have exclusive possession of a disorganized market.
The Manufacturers' Practical Fears.
I have had occasion to talk with very many business men in recent
months, and, for that matter, in recent years, regarding this tariff problem.
I find a growing body of manufacturers who are convinced of the general
principle that we cannot sell unless we buy, and who are convinced that We
must moderate our tariff policy so as to receive more imports if we are to
restore our export trade. I find a large and growing number of them who
are convinced that, practically, they, as manufacturers, must be content
to make concessions on their own tariff schedules if they are to restore the
buying power of the great farm market which is so important to them. But,
none the less, these same 'manufacturers, looking at particular schedules and
looking at particular cases, have fears and reservations and concern. I want
to deal fairly in the argument with these sincere and public-spirited men,
and, in what I have to say in the rest of my discussion of this topic, I want
to take up many of the points which have arisen in these conversations.
The Order in Time.
I, myself, am satisfied that if we forthwith reduced our tariffs the
immediate effect would be a great upswing in our economic situation. There
are those who admit that in the long run we should gain from this, but
fear that, in the order 0/ time, trouble might first come to certain of our
industries through hasty imports of European manufactures. I am satisfied
that, on the contrary, the first effect, long before any goods could be loaded
on ships on the other side, would be a great upswing in farm products
and raw materials, since it would be manifest that European buyers had
earning power once more and, consequently, would have credit for purchases,
and that, before even the first cargo of goods came from the other side, we
should have a better domestic market in which to receive it. Cables work
faster than ships, and prices of food and raw materials move faster than
Nov. 19 1932
prices of manufactured goods. Moreover, it is much simpler to cable an
'order for standardized wheatOr cotton or copper than to cable for finished
manufactures, where specifications of quality are less exaat.
Stocks of raw materials, stocks of imported foods are very low in Europe
to-day. Under,cruel pressure for the past three years or more, Europe has
been holding ber purchases of outside goods to a minimum. If she knew
that markets for her manufactures were being increased in the outside
world, she would buy and would have credit for buying foods and raw
materials. A very moderate change in the attitude of markets towards food
and raw materials means a radical swing in food and raw material prices.
Modest increase in activity in the manufacturing centers means large
changes in raw material prices. The further goods are away from the
consumer the more radical are the swings up and down in' their prices.
There are very few indeed of our manufacturers who would not, almost
immediately, lie doing better business if we had a carefully considered
reduction of our tariff along these lines.
And there is one further important point about this Order in time, when
tariff legislation is under way, but not yet passed. If an increase in rates
is in prospect, then importers hasten to bring in goods before the new
rates become effective. If, however, a dchertward revision is in prospect,
the tendency is for importers to hold back, in order to get the benefit of
the lower rates. But the prospect of the lower rate is, meanwhile, encouraging manufacturers and others on the other side to buy more of our raw
materials. They could pay for these, moreover, because they could then
obtain short-term credits here which would not be justified if tariff reduction were not in prospect. Our raw material exports would have a substantial increase, and a substantial rise in price, even before our new tariff
became a law. Of-course too long a delay it) putting the new law through,
or uncertainty as to its going through, would be harmful with respect to
these points.
The International Warfare of Tariffs.
You will note that I have put the emphasis on the tariff of 1922 rather
than on the tariff of 1930. The great mischief Was done before 1930, though
the intensification of the mischief, by the raising of the tariff in 1930, was a
grave evil, and particularly grave since it involved taking part in and
intensifying a world tariff war, with reprisals and counter-reprisals, with
country after country seeking to strangle the trade of other countries.
To tariffs have been added quota restrictions, restrictions on foreign exchange payments and other devices for checking imports.
Almost every country is seeking for a disproportionate share of a dwindling and unprofitable world trade, instead of contenting itself with its
fair share of a growing, expanding and profitable world trade. We are
not the only sinner with respect to this matter. Original sin is found in
(-very country. A part of this warfare of tariffs has not even been slue to
original sin or to reprisal. It has been due to the desperate efforts of debtor
countries, suddenly called upon to make el1011110118 payments, to protect
what little foreign exchange and gold they had so that they could keep
solvency or some semblance of solvency.
Even they have acted on false theories in part. A great German financial
authority has warned Germany that part of her restrictions on imports are
had even from the standpoint of foreign exchange, since they lead to foreign
restrictions on Germany's exports which more than counterbalance.
There is no point upon which competent students of the present world
crisis are snore fully agreed than that the rising tariffs all over the world,
choking the trade of the world, are the primary factor in the great world
disorder.
•
Exchange Depreciation and Tariffs. •
Every sign of weakness in the situation has been seized upon as an excuse
for further tariff restrictions. Unable to market its products and called
upon to make payments, country after country has been forced off the gold
standard, and forced to a depreciated and fluctuating exchange position.
The depreciation of its exchange has been seized upon in other countries
as a reason for raising tariffs still further against it, with the result, of
course, that its exchange position is still further weakened and still further
deprecation made probable if not inevitable.
We should not yield to this unfortunate world strangling fallacy. Postwar experience has justified what theory could have foretold with respect
to this matter. The influence of depreciating paper money is so demoralizing to the whole economic life of a country that even Its exports suffer.
The moderate lowering of exchange rates, within the gold points, of a
sound gold standard currency does give a stimulus to exports and does
Impose a check on imports. But, when exchange is depreciating because
the gold standard has been abandoned and there is lack of confidence in
the currency, a different situation arises. Importers reason that they
would do well to hurry in buying foreign goods because their money will
be worth still less a week hence, and exporters reason that they need not
hurry to export because by waiting they can get a still better price in terms
of their own domestic currency for the goods that they send out. Experience
in Europe in the years shortly following the war bears out this proposition.
France's percentage of exports to imports in the years 1919 to 1926, prior
to stabilization, was 74%, whereas, in the years 1927 to 1930, following
stabilization, it was 92.2%. Italy's ratio of exports to imports in the
years 1919 to 1926 was 55.6%, whereas in the years 1927 to 1930 the
ratio was 71%. Belgium's percentage of exports to imports in the same
year prior to stabilization was 71.9%, whereas it rose to 90.6% in the
years following stabilization. (terman trade figures, because of the
extreme demoralization after the war, are not adaptable to this calucation.
But the official returns of Great Britain and the United States show that
the exhorts of these countries to Germany exceeded imports from Germany
while the !mark n-as depreciating. Exchange depreciation of a non-gold
standard country is not an asset in competition in the world's markets for
export business. It is a factor of weakness rather than of strength in international competition.
The same story has been told with respect to the current period for the
months October 1931 to February 1932 by our own Tariff Commission,
which, in a report to Congress in May of 1932 points out that in the
October-February period of 1931-32, as compared with the same period 12
months before, there was a decline of 28% in our imports from the six
leading European countries which were off the gold standard, as against
a decline of only 23% from the six leading European countries which were
on the gold standard.
Narrow m's. Broad Markets.
Individual cases of particular commodities are frequently cited where
sharp discrepancies in price exist between the imports and our domestic
prices, and where exchange depreciation is rated as an important factor
in this matter. I have looked into a nmnber of such cases. The volume
usually is small and frequently there is real question of comparable quality.
But the main consideration in connection with this is that when world
trade is strangled, as it is to-day, almost anything that moves must move
at ruinous concessions, and that the effort to stop it by further trade
restrictions merely adds to the strangulation and intensifies the trouble.
We have seen in recent months a pitiful movement of American corn out
of the country at ruinous prices, prices below cost of production. To the
Volume 135
,
Ei4ancial Chronicle
3419
prompt metion.is-- called for to -get this paralyzing difficulty out of the
outside- world, this could look-, like- dumping, and, 1..he same reason .that
•
.
would lool Us to 'elleCk dribbling imports at:low prices, of- foreign distress . way of the world.
argument -does not rest'etc-the question of our rights. Everybody
goods would lead the outside world to forbid the -import of our corn at
knows that our rights are written in the contract. The argument rests
these low prices.
on our interests. Even if we could collect time -260 or 270 millions a year
Small sales of distress goods in denioralized markets bulk large in the
front our foreign debtors, of what use would.it be if it'perpetuates a world
imagination, and may even have considerable effect upon the general price
disorder which, reacting on ourselves, reduces our own tax receipts by two
fabric. But the remedy is to be found in broadening the markets, in restorbillions or more a year? How does that help our own taxpayers? A settleing good balance and in setting things going vigorously again, not in still
ment, generous on our part, which clears the thing up once and for all,
further stifling and restricting the markets. The distress goods make very
broad
would be a stroke of "good business" of absolutely first rank.
difference
are
demand
when
and
trade
the
when
channels
of
little
We should • move promptly in this matter. No two other countries are
Is vigorous.
so important •to American business as England and Germany. England
Furthermore, we must go on the general assumption that merchants will
remains uncertain as to whether or not. she can go back to the gold
be good merchants, that no country eases to give away the produce of its
Standard, and as to what new par•she can give to the pound sterling on the
labor, that -all sell'' -ill get as much as the markets Will give them, and
production
coat
at
are
which
of
lowest
gold standard basis until she is sure of what we are going to do about her
prices
determined,
the
not
by
that
debts to us.: Germany, struggling heroically, still remains in a state
a small portion of the supply can be produced, but, rather-, by the highest
where only partial payments can be made, where imports are cut to the
cost of production at which demand exists... Producers who can get more
minimum, and where a most desperate struggle must be made to get exports
than their cost of production are the ones'thatmake profits, and the desire
transactions.
leading
is
the
out
commercial
motive in all
until her credit is restored by the ratification Of the Lausanne Agreefor profit
ment. Many countries are waiting to return to the gold standard until
Moderate Protection—Not Area Trade.
this question is settled. And the importance of sound money and, above all,
You don't need to be afraid of moderate tariffs—and I am not talking
Use importance of sound sterling in the outside .world, to American trade
about free trade, and I am not talking about the abandonment of protection.
cannot be over-estimated. And we need a gold standard world to give
anr talking about moderating our prohibitive tariff structure so that goods
steadiness and poise to our own gold standard money market.
can come in instead of being kept out. I want enough of an increase in
We should 'absolutely forget politics in this matter. All parties hould
imports of diversified manufactures to make it unnecessary for us to base
get together to consider it from time standpoint of America's business
our export trade on foreign loans. I want from a billion to 1;200 millions
interests, and we should settle it as quickly and expeditiousljr as possible.
More of diversified manufactures coming into the country than were
The fact that I have high hopes that this will be done is a further highly
coming in in 1927 and 1928, at which time were were receiving about 900
significant reason for the confidence which I have expressed to you in the
millians a year. This will still leave a great deal of protection, but it will
future of American business.
balance the international balance sheet. It will restore the farmer's foreign
market, and it will give ,you a good domestic market once more. And
that good domestic market, which you will share to a moderate extant with
Col. Ayres of Cleveland Trust Co. Finds Percentage of
foreign competition, is worth vastly -more to you than exclusive possession
Increase in Industrial Production from August to
of a market in which the American farmer is getting 10c a bushel for his
September This Year Greater Than That of Any
corn at the farms and $2.80 per hundred pounds for his fat hogs.
Previous Single Month in 143 Years. Says Res•
Individual Schedtdes vs. the General Picture.
toration of Normal Business Activity Involves Large
Let the add, in conclusion, that you cannot look at this matter in terms
of individual schedules considered separately. You must stand above the
Increase in Production of Durable Goods—Comindividual schedule and look at the whole picture. You must look, not
ments on Presidential Election.
at one industry, but at all the industries in their inter-relation. It is the
business of the economist to do that. In large part, it is the business of
The fact that the percentage increase in industrial producthe banker to do that, since he duals with all the industries. It is not
tion "from August to September this year is greater than that
so easy for a man in a particular line of business to do it. But you
of any previous single month" in the "long span of 143 years"
cannot see far into the tariff problem by looking at individual schedules.
The problem is more complex than that.
is brought out by Col. Leonard P. Ayres, Vice-President of
Tariffs, Wages and Standard of Living.
the Cleveland Trust Company in the institution's Business
Very many of my friends among the manufacturers raise with me the
Bulletin dated November 15. "Almost every important elequestion of what effect tariff reduction would have upon wages and standard
ment in the index," says Col. Ayres, "showed advances from
of life among the American workers. In 1918 the American business community Wise talking about "the liquidation of labor." But, in this great
August to September." According to Col. Ayres," it now
trouble of 1929 to 1932, the American business man has demonstrated, by
seems probable that the July record of 51.1% below normal
Making actual financial sacrifices, his determination to protect the Amerwill prove to be the lowest record of this depression."
ican wage scale as far as possible. It is a matter in which he is deeply
and sincerely concerned.
Col. Ayres states that "the per capita production of durNow, the answer to this question is that the doctrine that high tariffs
able goods will be much smaller in 1932 than in any previous
make high wages and high standard of life has no standing among profesyear since 1899, and probably we should have to go back a
sional economists. The law of wages is something very different. Wages
are high in countries where land and capital are abundant and where men
good deal further to find smaller output figures." He adds
are relatively scarce. Wages are low in countries where men are
"the restoration of normal business activity involves a large
abundant and land and capital are relatively scarce. Labor's protection
increase in the production of durable goods. New construcis in immigration restrictions, not tariffs. The notion that we cannot
compete with low wage labor abroad is likewise fallacious. When men are
tion,increased buying by railroads, new industrial equipment,
scarce and wages are high, we economize labor and we use land and capital
and much larger sales of motor venicles are the most imporlavishly. In other words, we engage in mass production. This means that
tant elements." We quote in full what Col. Ayres has to
_wages per unit of output are low, even though wages per day are high,
and it is cost per unit of output that is significant in market competition.
say:
We have lower costs than Europe has in mass production. Europe, where
Statistical forecasting of election results has once more been vindicated
men are abundant, and land and capital relatively scarce, is more efficient
by the outcome of the national vote taken last Tuesday. The many straw
than we in specialty production, where a great deal of hand labor must
votes conducted by newspapers, and the great post card poll of the Literary
get into individual units of output produced.
Digest, furnished evidence which the statistician refers to as arrays of ranFinally, however, from the standpoint of wages, employment, standard
dom samples. For many weeks these samples had been indicating that unand
everything else, it is clear, in the light of what has gone before,
of life
usually large numbers of voters were planning to cast their ballots for the
that the terrible overdoing of prohibitive tariffs has been very harmful.
Democratic ticket, and the outcome showed that the samples had correctly foretold the result.
An International Tariff Conference.
There does not exist any statistical technique by which samples of evidence
I believe that we are going to improve this great adverse factor in the
can be gathered to foretell the effects which the results of the national
fundamentals in the near future. I believe that the great international
election may have on the future course of business in this country. One
conference for the reduction of tariffs which the new Administration is
condition which does seem to be only too validly established is that the
expected to call is going to work a radical change in this whole American
recent
political campaign was not a period of important and helpful
picture and the whole world picture. I want it to be thorough. I want it
popular education in matters concerning our national economic problems.
to be adequate. I want it to be prompt. It ought to accomplish two great
Probably the reason for this is that there was not this time, as there was
purposes: one, beneficial to us as well as to our foreign customers, of getting
for example in the silver campaign of 1896, a clear-cut division between
our own tariffs down to a point that will permit our foreign customers to
the
two leading parties on any important economic policy.
earn enough dollars here to pay their debts and to buy our exports, and
In recent weeks hundreds of thousands of our people have attended
the other, beneficial to the outside world as well as to us, getting the
political meetings, and millions of them have been listening to political
tariffs of the rest of the world down so that our exports can have easy
addresses transmitted over the radio. Probably most of them have been
access to their markets.
impressed with the importance of greater economy in government. It
The Inter-Allied Debts.
seems likely also that nearly all of them have realized more keenly than
I have referred to another great adverse fundamental in the excessive
before that the economic affairs of other nations have real importance for
schedule of reparations and inter-allied debts, which have imposed unbearus. Many among them must have cariied away the thought that tariff
able marginal pressure on the budgets of important governments. Germany, • problems deserve more consideration, but it may be doubted if they re'by efforts that were almost superhuman, carried the burden of reparations
ceived much enlightenment concerning them. Some must have noted that
through prosperous times and, even in the difficult adverse times which
both parties declared for sound money.
came to her in 1929 and 1930 and the first half of 1931 ; but then she
The catalog of such probable intellectual gains is a short and rather sorry
England
and
carried
other
it
countries
down
to the moratorium.
cracked.
one. Meanwhile the conduct of the political campaign has rather definitely
retarded the business improvement that gained vigorous momentum last
But England cracked, and not a few of the smaller countries cracked.
Every government expects a deficit in times of great depression, though
summer. Part of the gains have been retained, but the rate of advance has
slowed down. It is well that the political campaign is behind us, for the
it expects also, when the deficit appears, to take steps to correct it. But a
situation
in which governments
problems of business recovery demand attention.
great depression almost always brings a
temporarily
until
their
readjust
they
can
finances.
borrow
In the
must
Industrial Production.
case of Germany, borrowing was impossible by the German Government on
The volume of industrial production increased sharply from August to
any substantial scale because of the reparations burden, which made
creditors afraid. England's public credit was similarly affected, though
September. In August it was 49.5% below the computed normal level,
and in September it was only 44.6% below. This is an increase of nearly
not to so great an extent. We must get these reparations and inter-allied
that
they
in
readjusted
jeopardy
the
put
credit
of
will
any
not
10%,
which is greater than any previous increase in one month of which
debts so
government in bad times.
we have record. The September figures are preliminary, and are subject
to revision, which is not likely to make them any less favorable.
Progress, great pro ems, has been made with respect to this matter.
The data in the small table within the diagram (this we omitted) bring
France and Germany lave come to terms in an agreement at Lausanne
expected
it in the winter of
the index as nearly up to date as the available figures will permit. These
so incredibly good that nobody could have
us.
I
think
by
completion
action
figures
that
awaits
public
its
But
may be used to bring forward any of the long diagrams of business
1931.32.
activity that have been published by this bank. The data used are records
opinion in the United States is clarifying rapidly with respect to this point.
of industrial production compiled by the Federal Reserve Board. and
I think that we all know that we must do something about it, and that
3420
Financial Chronicle
adjusted by this bank to show the percentage fluctuations above and below
the computed normal level. One of the long diagrams referred to carries
the record of business activity in this country back by months to 1790,
and it is of interest to note that the percentage increase from August to
September of this year is greater than that of any previous single month
in that long span of 143 years.
Almost every important element in the index showed advances from August to September. In manufacturing output there were especially noteworthy increases in iron and steel, textiles, food products, leather and shoes,
cement, and tobacco. In mining the largest advances were those in the
output of coal, with the percentage increase in anthracite exceeding the
Important improvement in bituminous production. There were slight decreases in the output of lumber, and in the production of zinc and silver.
It now seems probable that the July record of 51.1% below normal will
prove to be the lowest record of this depression. Previous low records for
earlier great depressiops include those of 27.0% below in 1921, a record of
18.1 below in 1908, one of 19.9 below in 1894, one of 19.1 below in 1843,
and one of 22.0% below in the Embargo depression of 1808. The severity
of this depression as measured by curtailment of industrial production has
been extreme.
Stocks of Goods.
The warehouse stocks of raw materials in this country are now far greater
In volume than they were when the depression began, while those of manufactured goods are so low as to be somewhat subnormal. These conditions
are reflected by the two lines in the diagram which show the monthly
changes in the accumulated stores of both sorts of goods during the past
10 years. The data are those compiled by the U. S. Department of Commerce. The averages of the stocks in 1923, 1924, and 192$ are taken as
being equal to 100. The data are expressed on a per capita basis, and they
have been corrected to remove merely seasonal variations.
The raw materials consist of the four great groups of metals, chemicals
and allied products, food stuffs, and textile materials. The manufactured
goods are far more varied in nature, and include 16 major groups of articles.
The manufactured goods carried in stock increased gradually and irregularly
from 1923 up to the autumn of 1930, and since then have decreased by more
than 20%. The showing affords but scant support for much of the discussion of the dangers of industrial overproduction, either past or threatened, and the need for curtailing working days and weeks in manufacturing
plants.
Conditions relating to stocks of raw materials are very different. There
was a moderate increase in 1926, and a sharp one beginning in 1929 and
continuing up to the present time. This advance has carried the stocks of
raw materials more than 70% above their 1923-1925 averages. These conditions would seem to indicate that the proposed shorter working week, and
shorter day should be put into effect among our farmers, and oil drillers,
and miners rather than among the factory workers.
The fact is that our domestic economic problems are similar in important
respects to our international problems, and to those existing between other
nations. We have excess stocks of raw materials which bear down upon
the already collapsed prices of those goods, and these low price levels result in a meager purchasing power on the part of the farmers and miners
and oil country workers who can no longer buy normal amounts of manufactured goods. In the world as a whole the warehouse stocks of the staple
goods that constitute the bulk of international trade exist in greatly excessive volumes, and restrict the purchasing power of the raw material
producing countries.
Iron and Steel
At the beginning of September the number of blast furnaces actually
producing pig iron was 41. By the first of October the number had increased to 46, and by the beginning of November it had mounted to 51.
This is an increase of 22% in two months, which is most unusual. In the
past 50 years, there have been a number of increases in the blast furnace
percentage as large as this one or larger, and almost or quite without exception they have marked the turning points of depressions from which
sustained recoveries were initiated.
In those days an important increase in the number of active blast furnaces
was highly significant. The reason was that furnaces were seldom put into
production unless the owners not only had actual order for the immediate
output, but also- were confident of making future sales. If the furnace
was put in blast and then shortly allowed to go out again, it usually had
to be relined at a cost of many thousand dollars. For this reason the
changing percentages of active blast furnaces have long constituted a most
reliable business indicator.
The figures are still important, but they have lost something of their
old-time significance, for one of the technological developments of this
depression is that iron masters have learned how to bank the furnaces so
that their productivity is suspended Instead of terminated. Intermittent
operation of blast furnaces has become an almost common practice, for
they can be taken out of production and brought back again without rebuilding or refilling, and the changes no longer involve serious expense.
Bank Reserves.
For the first time in this depression the member banks of the Federal
Reserve System now have reserves that are not only substantially in excess
of those required by law, but which are rapidly increasing. This is one
of the prerequisites of expanding bank credit, for it is only when banks
have ample reserves that they can make new loans or purchase securities
In large volume. In the diagram (this we omitted) the cross-hatched area
shows the monthly fluctuations since the beginning of 1929 in the total
reserves held by member banks. .The narrow top section shows the excess
of reserves over legal requirements, and the rapid increase in the excess
reserves in recent months.
When depositors draw out funds the member banks borrow from the Reserve Banks in order to keep their reserves up to legal requirements or
slightly above them. The lowest section in the diagram shows how the
member banks have used this privilege during the past four years. During
the boom period in 1929 the demand for funds for both business and speculation was so great that member banks had to borrow heavily from the
Reserve Banks in order to keep their reserves intact. Their borrowings
mounted to well above one billion dollars.
Following the liquidation in security prices and the rapid declines in the
levels of business activity the need for funds decreased, and the borrowings
fell to less than 200 millions. Then late in 1931 the banks were forced
once more to borrow to meet the demands from depositors for funds either
to hoard or to export in the form of gold. This caused a sharp increase in
the borrowings from Reserve Banks which reached a peak of about 850
millions last February. At that time almost two-fifths of the reserves held
by opr member banks consisted of funds borrowed from the Resew Banks.
Mee that crisis period funds have been steadily flowing back to the
member banks, and this has enabled them to pay down their borrowings
own reserves. The borrowed
from the Reserve Banks, and to increase their
millions, and the excess reserves are
funds are now down to less than 400
the first time in this depression the banks
up to almost 500 millions. For
Nov. 19 1932
are in a position to pursue a policy of credit expansion, and their excess
reserves constitute a potent Influence in that direction.
Production.
The goods produced each year in this country by agriculture, mining,
forestry, and manufacturing may be classified in the main into two great
groups. One group of products consists of consumption goods. These are
materials that are promptly put into use by individual members of our
population, and usually consumed or worn out in relatively short time.
Most agricultural products, textiles, and articles made of paper, rubber
and leather fall within this grouping. The other great group consists of
durable goods. It includes such products as the metals, lumber, cement,
ships, freight cars, locomotives, and motor vehicles.
The diagram at the foot of the page (this we omitted) shows the variations in the physical volume of consumption good's and durable goods in
this country each year since 1899. The data have been reduced to a per
capita basis, and the total production in 1919 is taken as being equal to
100. The generally increasing trend in the output of consumption goods
over this 34-year period has been a relatively gradual one. The annual
rate of increase up to 1930 on a per capita basis has been less than I% a
year, and if the allowance for increase of population had not been made
the rate of increase would have been only about 23i% per year.
The increase in the output of durable goods has been much more rapid.
On a per capita basis it amounted for the years up to 1930 to nearly 25i%
a year, and without allowance for population increase it was over 4% Per
year. In the earliest years shown on the diagram the output of durable
goods accounted for only about one-quarter of our national production,
while in the later years, just before the depression, it constituted one-third
of it. The reason for the differing rates of growth is that in a prospering
country the population cannot rapidly increase its consumption of food and
clothing and similar current goods, but it can rapidly add to its capital
Investments in buildings, highways, automobiles, and utilities.
It is likewise true that even in times of depression the output of consumption goods does not decrease very sharply, for the people continue to wear
out clothes, and both they and their domestic animals keep on consuming
farm products. It is the production of durable goods that is greatly curtailed during depressions, for in such times new construction, and the installation of industrial equipment, and the manufacture of railroad rolling
stock and of motor vehicles can be postponed.
The per capita production of durable goods will be much smaller in 1932
than in any previous years since 1899, and probably we should have to go
back a good deal further to find smaller output figures. The restoration
of normal business activity involves a large increase in the production of
durable goods. New construction, increased buying by railroads, new industrial equipment, and much larger sales of motor vehicles are the most
Important elements.
Wholesale Prices Decreased 1.1-3% from September to
October According to United States Department
of Labor.
The index number of wholesale commodity prices as computed by the Bureau of Labor Statistics of the United States
Department of Labor shows a decrease from September
1932 to October 1932. This index number, which includes
784 commodities or price series weighted according to the
importance of each commodity and based on the average
prices for the year 1926 as 100.0, averaged 64.4 for October
as compared with 65.3 for September, showing a decrease
of about 1 1-3% between the two months. When cornpared with October 1931, with an index number of 70.3,
a decrease of 8 1-3% has been recorded in the 12 months,
Under date of Nov. 17, the Bureau also said:
In the group of farm products decreases in the average prices of grains.
livestock and pultry, oranges, peanuts and white potatoes caused the
group, as a whole, to decline 4%% from the previous month. Increases
wer
Aemr
oe:rfd
oe
otdh,in the average prices of eggs, lemons, hay, tobacco and
sweet potatoes.
price decreases during the month
were reported for butter.
cheese, bread, rye and wheat flour, most meats, dressed poultry,
coffee.
and
most
vegetable
lard, granulated sugar
oils. On the other hand, canned
fruits, bananas and raw sugar averaged higher than in the month before
Thegroup as a whole decreased 2% in October when compared with
September.
The hides and leather products group increased slightly more than
ot
1% during the month, due to increases in boots and shoes, skins, leather
and suitcases and bags. Decreases were shown in the
average prices for
hides. Textile products as a whole decreased 3,i..6% from September
to October, due to declining prices for cotton goods, silk and rayon, woolen
and worsted goods and other textile products. The sub-group of knit
goods increased slightly.
In the group of fuel and lighting materials increases in the average prices
of coal, gas and petroleum products caused the group as a whole to advance.
nearly ji of 1%. Electricity declined during the month and coke remained
at the September level.
Metals and metal products showed a slight upward tendency for October.
due to increases in iron and steel products and plumbing and heating fixtures. Agricultural implements and non-ferrous metals declined slightly,
while motor vehicles showed no change during the month. In the group
of building materials lumber, paint and paint materials and other building
materials moved upward and brick and tile, cement and structural steel
showed little or no change in average prices for the two months. The
group as a whole advanced Jj of 1% from September to October.
Chemicals recorded minor price decreases between September and
October. Drugs and pharmaceuticals, fertilizer materials and mixed
fertilizers showed recessions during October, causing the group to decline
a little more than P., of 1% from the month before. As a whole the housefurnishing goods group showed no change from the previous month.
The group of miscellaneous commodities decreased approximately 1%
between September and October, due to declining prices of cattle feed,
paper and pulp, crude rubber and other miscellaneous commodities. Automobile tires and tubes moved upward during the month.
The October averages for all the special groups of commodities, with
the exception of semi-manufactured articles, which showed no change between the two months, were below those for Scoember. ranging from
ji of 1% in the case of all commodities other than farm products and foods.
to nearly 3% in the case of raw materials.
Between September and October price increases took place in 133 instances, decreases in 201 instances, while in 447 Instances no chaneg in
price occurred.
Volume 135
INDEX
Financial Chronicle
NUMBERS OF WHOLESALE PRICES BY GROUPS AND SUBGROUPS OF COMMODITIES (1926+100.0)
Commodity Groups and Subgroups.
All commodities
Farm products
Grains
Livestock and poultry
Other farm products
Foods
Butter, cheese and milk
Cereal products
Fruits and vegetables
Meats
Otherfoods
Hides and leather products
Boots and shoes
Hides and skins
Leather
Other leather products
Textile products
Clothing
Cotton goods
Knit goods
Silk and rayon
Woolen and worsted goods
Other textile products
Fuel and lighting materials
Anthracite coal
Bituminous coal
Coke
Electricity
Gas
Petroleum Products
Metals and metal products
Agricultural implements
Iron and steel
Motor vehicles
Non-ferrous metals
Plumbing and heating
Building materials
Brick and tile
Cement
Lumber
Paint and paint materials
Plumbing and heating
Structural steel
Other building materials
Chemicals and drugs
Chemicals
Drugs and pharmaceuticals
Fertilizer materials
Mixed fertilizers
Housefurnishing goods
Furnishings
Furniture
Miscellaneous
Automobile tires and tubes
Cattle feed
Paper and pulp
Rubber, crude
Other miscellaneous
Raw materials
Semi-manufactured articles
Finished products
Non-agricultural commodities
All commodities other than farm products
and foods
* Data not yet available.
October
1931.
September
1932.
October
1932.
70.3
58.8
44.3
57.6
64.2
73.3
86.1
70.6
68.2
71.1
69.7
82.5
93.1
50.0
80.7
101.1
63.0
73.9
69.7
59.2
41.7
64.6
72.4
67.8
94.2
83.6
81.5
102.1
100.8
39.2
82.8
85.6
81.7
95.4
54.9
81.6
76.1
82.6
75.1
65.2
77.0
81.6
81.7
82.0
75.6
79.7
61.6
70.2
77.2
81.0
79.8
82.4
66.6
48.0
49.4
80.5
10.2
86.9
61.5
65.2
75.1
72.6
65.3
49.1
37.4
51.2
52.1
61.8
60.6
65.8
52.5
60.9
64.6
72.2
84.4
48.2
63.2
81.5
57.0
67.3
57.9
50.4
32.6
56.7
68.6
70.8
87.7
81.1
76.7
103.4
107.6
46.7
80.1
84.9
79.7
92.7
51.6
66.8
70.5
75.4
79.0
56.3
68.2
66.8
81.7
79.9
72.9
79.8
56.6
63.6
66.9
73.7
74.7
72.7
64.7
42.7
45.9
75.5
8.2
83.2
56.2
60.7
70.4
68.7
64.4
46.9
34.4
45.0
52.1
60.5
60.5
64.1
52.2
56.4
65.4
72.8
84.6
49.6
64.1
81.9
55.0
62.5
56.2
50.9
30.8
56.5
67.7
71.1
88.7
81.1
76.7
*
•
47.4
80.3
84.7
80.4
92.7
50.7
67.5
70.7
75.3
79.0
56.6
68.3
67.5
81.7
80.0
72.7
79.8
55.9
63.4
66.5
73.7
74.7
72.8
64.1
44.6
42.7
73.4
7.3
82.1
54.6
60.7
69.6
68.1
72.9
70.4
70.2
Wholesale Prices During Week Ending Nov. 12
Increased .2 of 1% According to United States
Department of Labor.
The Bureau of Labor Statistics of the U. S. Department
of Labor announces that its index number of wholesale prices
for the week ending Nov. 12 stands at 64.0 as compared with
63.9 for the week ending Nov. 5, showing an increase of .2
of 1%. Under date of Nov. 16 the Bureau also said as
follows:
These index numbers are derived from price quotations of 784 commodities, weighted according to the importance of each commodity and based
on the average prices for the year 1926 as 100.0.
The accompanying statement shows the index numbers of groups of
commodities for the weeks ending Oct. 15, 22. 29 and Nov.5 and 12.
INDEX NUMBERS OF WHOLESALE PRICES FOR WEEKS OF OCT. 15.
22, 29 AND NOV. 5 AND 12.
(1926=100)
11 eat Ending.
Al) commodities
Farm products
Foods
Hides and leather products
Textile products
Fuel and lighting
Metals and metal products
Building materials
Chemicals and drugs
HouseturnishIng goods
Miscellaneous
Oct. 15
Oct. 22
Oct. 29
Nov. 5
Nov. 12
64 4
47.4
60.7
72.5
54.9
71.3
80.1
70.5
72.7
72.4
63.9
64.4
47.0
60.8
72.8
54.7
71.9
80.3
70.5
72.7
72.5
63.9
64.1
46.2
60.1
72.2
54.5
72.8
79.9
70.6
72.4
72.5
63.9
63.9
45.9
59.3
71.6
84.2
72.8
79.9
70.7
72.4
72.5
63.8
64.0
46.6
60.2
71.3
54.0
72.2
79.8
70.6
72.2
72.5
63.6
Changes in Retail Prices of Food by Cities.
During the month from Sept. 15 1932 to Oct. 15 1932 the following
cities from which prices were received showed increases in the average
cost of food: Birmingham, Bridgeport, Richmond, and Salt Lake City,
2%; Dallas, Kansas City, New York, Portland (Me.). and San Francisco,
1%; and Boston, Buffalo, Los Angeles, Minneapolis, Mobile.
Newark.
Philadelphia, Pittsourgh, Portland (Ore.), and Scranton, less than .5 of
1%. Decreases were shown in the following cities: Butte, Cleveland,
Columbus, Detroit, and New Orleans. 2%; Atlanta, Baltimore, Charleston
(S. C,), Cincinnati. Fall River, Houston, Indianapolis, Jacksonville,
Louisville, Manchester, Memphis, Norfolk, Rochester. St. Louis. Savannah.
Seattle, and Springfield alb), 1%; and Chicago, Denver, Little Rock,
Milwaukee, New Haven, Omaha, Peoria, Providence, St. Paul, and
Washington. less than .5 of 1%.
For the year period Oct. 15 1931 to Oct. 15 1932 all of the 51 cities
showed decreases: Cincinnati, 23%; Detroit. 22%; Butte and Columbus,
19%; Boston, Minneapolis. Mobile, Philadelphia, and Providence, 18%;
Chicago, Houston, Indianapolis, Jacksonville. Louisville, St. Louis, St.
Paul, Salt Lake City, and Scranton, 17%; Baltimore, Charleston (S. C.).
Cleveland, Fall River, Little Rock. Manchester, Memphis, Milwaukee,
New Haven, Omaha, Pittsburgh, and Washington, 16%; Atlanta. Buffalo,
Dallas, Kansas City, Los Angeles, Newark, Portland (Me.), Rochester,
Savannah, and Seattle, 15%; Bridgeport, New Orleans, New York, Peoria.
Richmond, and Springfield (Ill.), 14%; Birmingham, Denver, and Norfolk,
13%; San Francisco, 12%,and Portland (Ore.), 11%.
Commodity Prices Higher According to National
Fertilizer Association for First Time in Several
Months During Week Ended Nov. 12.
For the first time in several months commodity prices were
decidedly higher during the latest week (Nov. 12). The
wholesale price index of the National Fertilizer Association
advanced from 59.9 to 60.5-a gain of six fractional points.
During the preceding week, the index declined four fractional
points, while two weeks ago it declined three fractional points.
The gain for the latest week brings the general index number
nine points higher than the record low, 59.6, reached on
June 11 1932. A month ago the index stood at 60.7 and a
year ago it was 67.4. (The three year average 1926-1928
equals MO.) Under date of Nov. 14 the Association further
reported:
Of the 14 groups listed in the index, six advanced, one declined and
seven showed no change during the latest week. Foods, grains, feeds and
livestock, textiles, metals, fats and oils, and fertilizer materials advanced.
The fuel group was lower because of reduced prices for gasoline. Substantial gains were shown in the grains, feeds and livestock, and fats and
oils groups.
During the latest week, only eight commodities showed price losses. while
33 showed price gains. This is the greatest number of price advances in
many weeks and the number of commodities that showed price losses was
the smallest for several months. Higher prices were noted during the latest
week for cotton, silk, lard, butter, cottonseed oil, coconut oil, eggs, white
potatoes, apples, corn, oats, wheat, cottonseed meal, cattle, hogs, sheep,
lambs, lead and tin. Among the commodities that declined were wool,
jute, soya bean oil, corn mean, linseed meal, coffee and gasoline.
WEEKLY WHOLESALE PRICE INDEX-BASED ON 476 COMMODITY
PRICES (1926-1928=100).
Per Cent
Each Group
Bears to the
Total Index.
23.2
16.0
12.8
10.1
8.5
6.7
6.6
6.2
4.0
3.8
1.0
.4
.4
.3
100.0
Increase of .1 of 1% Reported in Retail Food Prices
During Period from Sept. 15 to Oct. 15-United
States Department of Labor Notes Average Decrease
of About 15%% Since Oct. 15 1931.
Retail food prices in 51 cities of the United States, as
reported to the Bureau of Labor Statistics of the United
States Department of Labor, showed an average increase of
.1 of 1% on Oct. 15 1932, when compared with Sept. 15
1932, and an average decrease of about 153
%% since Oct. 15
1931. The Bureau's weighted index numbers, with average
prices in 1913 as 100.0, were 119.1 for Oct. 15 1931; 100.3 for
Sept. 15 1932, and 100.4 for Oct. 15 1932. The Bureau of
Labor Statistics, in reporting the foregoing on Nov. 17,
also said as follows regarding retail food prices:
3421
During the month from Sept. 15 1932 to Oct. 15 1932 the following
articles increased in average price for the month
Strictly fresh eggs, 17%;
plate beef, fresh milk, vegetable lard substitute. cornflakes, and coffee,
1%;and oranges. less than .5 of 1%. Decreased were shown in the average
price of the following Pork chops. 10%; cabbage, 8%; onions.
7%; leg
of lamb, and raisins, 6%; sirloin steak and round steak, 4%; chuck roast,
sliced ham, canned red salmon, cornmeal, and bananas, 3%; rib roast,
sliced bacon, hens, rice, navy beans, tea, and prunes, 2%; butter, oleomargarine, lard, pork and beans, canned corn, canned peas, and canned
tomatoes, 1%; and cheese and wheat cereal, less than .5 of 1%, The
following articles showed no change in the month
Evaporated milk.
bread, flour, rolled oats, macaroni, potatoes, and sugar.
Group.
Foods
Fuel
Grains, feeds and livestock
Textiles
Miscellaneous commodities...
Automobiles
Building materials
Metals
House furnishing goods
Fats and oils
Chemicals and drugs
Fertilizer materials
Mixed fertilizer
Agricultural implements
All groups combined
Latest
Week
Nov. 12
1932.
Preceding
Week.
Month
Ago.
Year
Ago.
61.0
63.6
40.0
45.6
61.0
86.6
70.7
68.1
77.4
44.8
87.4
62.5
68.8
92.1
60.4
64.0
37.5
44.8
61.0
86.6
70.7
68.0
77.4
42.0
87.4
62.2
68.8
92.1
62.0
62.3
40.5
46.3
62.0
86.6
70.5
69.9
77.4
42.1
87.4
61.9
68.8
92.1
72.9
61.6
53.7
51.3
65.8
89.3
75.0
75.6
84.4
60.1
86.7
70.8
80.2
93.0
60.5
59.9
60.7
674
Annalist Index of Business Activity-Slight Decrease
Shown in October.
The Annalist Index of Business Activity for October is
60.1 (preliminary), as compared with a revised figure of 60.3
for September. The small decrease indicated by the
preliminary figure was the net result of advances in five
components of the index for which October figures are
available and of declines in four other components, says the
"Annalist," which also says:
The factor which contributed most substantially to the support of the
index was the rise in car loadings which culminated in the middle week of
the month. There was also a further marked gain in the adjusted index of
bituminous coal production. The steel ingot and pig iron indices were
slightly higher. Offsetting these advances there were fairly sharp downturns in the adjusted indices of cotton consumption and boot and shoe
Nov. 19 1932
Financial Chronicle
3422
production, and a moderate decrease (estimated) in electric power production, in addition to which automobile production declined to a new low
record.
Table I gives the combined index and its components, each of which is
adjusted for seasonal variation, and where necessary for long-time trend,
for the last three months. Table II gives the combined index by months
back to the beginning of 1927.
TABLE I.-THE ANNALIST INDEX OF BUSINESS ACTIVITY AND
COMPONENT GROUPS.
October.
August.
September.
16.7
19.7
Pig iron production
20.9
18.3
22.5
24.0
Steel ingot production
48.9
52.4
Freight car loadings
56.0
67.5
68.3
Electric power production
:67.5
49.9
57.0
64.4
Bituminous coal production
24.6
25.4
y17.7
Automobile production
75.3
89.0
83.4 Cotton consumption
87.1
95.5
Wool consumption
91.1
100.9
:89.3
-Boot and shoe production
27.8
27.6
30.1
Zinc production
55.5
60.3
Combined index
:60.1
kilowatt7,140,000,000
z Subject to revision. x Based on an estimated output of
hours; as against the Geological Survey total of 6,739,000,000 kilowatt-hours in
September and 7,765,000,000 kilowatt-hours in October 1931. y Based on the
National Automobile Chamber of Commerce estimate of 50,270 cars and trucks in
the United States and Canada, as against the Department of Commerce total of
86,483 cars and trucks in September and 81,582 cars and trucks in October 1931
TABLE II.-THE COMBINED INDEX SINCE JANUARY 1927.
1932.
1931.
1930.
1929.
1928.
1927.
62.8
January.
62.6
February
61.6
March
56.5
April
52.9
May
52.9
June
52.0
July
55.5
August
60.3
September
October
:60.1
November
_
Dararnhar __ __ __ _
x Subject to revision.
74.4
76.2
78.0
80.8
78.1
76.5
78.2
73.5
70.8
66.3
65.1
65.5
95.0
94.2
91.2
95.0
90.0
89.0
86.4
83.1
82.4
79.5
76.1
76.1
105.5
106.1
104.3
108.8
110.1
108.9
109.9
108.1
107.3
105.7
96.9
92.1
98.0
99.7
99.4
99.9
101.3
98.7
100.5
102.1
102.4
105.0
103.7
102.0
102.2
104.7
106.9
104.4
104.8
103.4
101.5
101.8
100.9
98.2
95.5
93.7
Annalist Weekly Index of Wholesale Commodity Prices
-Slight Drop From Previous Week's Figures.
A slight drop of 0.1 point from the previous week carried
the "Annalist" Weekly Index of Wholesale Commodity
Prices to 88.8 on Tuesday Nov. 15. The "Annalist"
further said:
The decline was due entirely to a sharp lowering of steel prices and to a
less severe drop in prices for refinery gasoline, the first largely seasonal and
the latter probably canceled by subsequent advances. Apart from these,
the general trend was upward, in sympathy with the stock market rally in
the latter part of last week, with wheat, corn. cotton and most of the nonferrous metals, in particular, showing net gains.
THE ANNALIST WEEKLY INDEX OF WHOLESALE COMMODITY PRICES
(Unadjusted for Seasonal Variation) (1913=100)
Nov.15 1932. Nov. 7 1932. Nov. 17 1931.
Farm products
Food aoducts
Textile .roducts
Fuels
Metals
Building materials
Chemicals
Miscellaneous
69.3
96.8
:72.3
130.1
95.3
106.5
95.3
73.3
RR 5
z70.1
94.4
72.8
131.6
95.0
106.5
95.3
73.3
559
89.7
110.0
84.4
133.0
100.2
111.2
96.8
88.1
102.2
z Revised. x Provisional.
Sales of Life Insurance in United States in October
20% Below Those of Same Month Last Year.
Sales of ordinary life insurance in the United States during
October were 20% below those of October 1931, according
to figures issued on Nov. 17 by the Life Insurance Sales
Research Bureau at Hartford, Conn. The Bureau says:
This general decrease was experienced in every section of the country with
but two States, Nevada and New Mexico showing increased sales for the
month. Although sales are below those of a year ago, the volume of new
insurance sold is an indication of the importance being placed on life insurance protection. With increased unemployment and decreased incomes
experienced by all classes the sales of new ordinary insurance averaged over
820,000,000 during every working day.
The figures below give by sections the experience in new ordinary life
insurance sales for October and for the 10 months of 1932:
October 1932 Compared 10 Months 1932 Compared to 10 Mos. 1931.
to October 1931.
New England
Middle Atlantic
East North Central
West North Central
South Atlantic
East South Central
West South Central
Mountain
Pacific
79%
77
83
84
80
78
85
83
78
82%
82
82
78
78
79
84
78
83
81%
80%
Total United States
These figures are based on the experience of 76 companies having In force 88%
of the total ordinary life insurance outstanding in the United States.
Production of Electricity Again 6.3% Below
Corresponding Period Last Year.
According to the National Electric Light Association, the
production of electricity by the electric light and power
industry of the United States for the week ended Nov. 12
1932 amounted to 1,520,730,000 kwb., a decline of 6.3%
as compared with the same period in 1931, and compares
with 1,525,410,000 kwh. for the preceding week, which was
Weekly
also a decrease of 6.3% as compared with the figure for a
year ago. The output for the week ended Nov. 12 for the
Atlantic seaboard was down 3.2% from the corresponding
period last year and compares with a decrease of 2.6%
for the week ended Nov. 5. New England, taken alone,
was off 1%, against a decline of 3.5% in the previous week.
The Central industrial region, outlined by Buffalo, Pittsburgh, Cincinnati, St. Louis and Milwaukee, showed a
decrease of 8.9%, compared with a decline of 7.8% the
week before. The Pacific Coast was down 10.9%, against
9.1% in the Nov. 5 week.
Arranged in tabular form, the output in kilowatt hours of
the light and power companies for recent weeks and by
months since the first of the year is as follows:
Weeks
Ended.
1932.
1931.
Jan. 2 ____ 1.523.652.000 1.597.454.000
Feb. 8 ---- 1.588.853.000 1.679,016.000
Mar. 5 ---- 1.519,679.000 1.664.125.000
Apr. 2 ---- 1.480.208,000 1,679.764,000
May 'I -_-_ 1.429.032.000 1.637.296.000
June 4 _-_ x1,381.452.000 1.593.622,000
July 2 ---- 1.456,961,000 s1,607.238.000
Aug. 8 ---- 1,426,986,000 1,642.858.000
Sept. 8 --- 1,464.700.000 1.635.623.000
Sept.10 ---- 1.443.977.000 1,582.267.000
Ser4.17 ---- 1.476.442,000 1,662.660.000
Sept.24 -- 1,490.863,000 1.660,204,000
Oct. 1 -- 1.499.459.000 1.645.587.000
Oot. 8 -- 1,506,219.000 1.653,369,000
Oct. 15 -- 1.507.503.000 1.656.051.000
Oct. 22 --- 1.528.145,000 1.646,531,000
1,533,028,000 1,651.792,000
Oct. 29
Nov. 5
1,525.410.000 1.628,147.000
Nov. 12
1,520,730,000 1,623,151,000
MonthsJanuary
7,014.066.000 7.439.888,000
6.518,245,000 6,705.564.000
February
6.781.347.000 7.381.004.000
March
6.303.425,000 7.193.691,000
April
6,212,090.000 7.183.341,000
May
6.130.077.000 7,070.729,000
June
6.112.175.000 7.286.576.000
J1119
6.310.667.000 7,166,086,000
August
00,,,h,.
A 217 722 non 7 noo 421 nnti
1930.
1929.
1932
Under
1931.
1.680.289.000
1.781,583,000
1.750.070.000
1.708.228.000
1.689,034.000
1.657,084,000
1.594.124,000
1,691,750,000
1,630,081,000
1.726.800.000
1,722,059.000
1.714,201,000
1,711.123.000
1.723.876,000
1.729,377,000
1.747,353,000
1,741.295,000
1.728.210.000
1,712,727,000
1.542.000,000
1.726.161,000
1,702.570.000
1,663,291.000
1.608,492.000
1,689.925.000
1.592.075,000
1,729.667,000
1.774.588,000
1,806,259,000
1.792.131.000
1,777,854.000
1.819.278,000
1,806,403,000
1,798.633.000
1,824.160,000
1,815,749,000
1.798.164.000
1,793,584,000
4.6%
54%
8.7%
11.9%
12.7%
13.3%
9.3%
13.1%
10.4%
8.7%
11.2%
10.2%
8.9%
8.9%
9.0%
7.2%
7.2%
8.3%
6.3%
8,021.749,000
7.066,788.000
7,580,335.000
7,416.191.000
7.494.807.000
7.239.697,000
7,363.730.000
7.391,196,000
7 227 me nen
7.585,334,000
6.850,855.000
7.380.263.000
7,285,350,000
7,486,635.000
7,220,279,000
7.484,727.000
7,772,878.000
7 002 200 nnn
5.7%
76.1%
8.2%
12.4%
13.5%
13.3%
16.1%
11.9%
11 11,
2:.
Including Memorial Day y Change computed on basis of average daily reportss Including July 4 holiday.
Note.-The monthly figures shown above are based on reports covering aPProrlmutely 92% of the electric light and power Industry and the weekly figures are based'
on about 70%.
Further Increase Reported in New York State Factory
Employment by New York State Department of
Labor During September to October Period.
"The upturn since August in New York State factory employment continued during the September to October period," according to a statement issued November 12 by Industrial Commissioner Frances Perkins. "The increase over
September amounted to 2.8%, as against a usual seasonal
rise of less than 1%. Total wage payments were also higher,
being 3.0% above the September figures. Returns from
approximately 1,600 factories operating throughout the State
and representing all manufacturing industries form the basis
for this analysis." Further reporting on factory employment
in New York State, Commissioner Perkins also said:
The October advance raised the New York State factory employment
index to 59.4 (preliminary), as against 57.8 in September, 54.3 in August,
and 71.3 a year ago. The payroll index was at 46.2 (preliminary) in October, as compared with 44.9 in September, 41.1 in August, and 62.3 a
year ago. These indexes are computed with the 1925-1927 average taken
as 100. The improvement was fairly general. increased employment being
noted in all major industrial groups with the exception of the food and
tobacco and the pulp and paper groups. New York City's factory employment went up 3.3% and its total payroll rose slightly during the period.
Metal Industries Recall Workers.
The September upturn in employment in metals continued during October, with the group as a whole showing a 4% gain. Increased working
forces were reported by the instruments and appliances, brass, copper and
aluminum, silverware and jewelry, machinery and electrical apparatus, and
sheet metal and hardware industries. Advances ranging from 9 to 20%
occurred in the firearms, tools and cutlery, railroad equipment and repair
shops, boat and ship-building, and cooking, heating and ventilating apparatus divisions. The iron and steel, structural and architectural iron,
and automobile and automobile parts divisions failed to hold their September gains and laid off workers.
Clothing Factories Add to Forces.
Increased employment as compared with the previous month was again
noted in the clothing and millinery group as a whole, despite unseasonal
declines in some branches. Seasonal factors were still operating towards
higher employment in the men's furnishings, women's clothing and women's
underwear industries. The passing of the peak of the fall and winter manufacturing season in men's clothing left employment in that industry about
unchanged from September. Women's headwear, miscellaneous sewing,
and laundering and cleaning establishments were not as busy as in September. although usually employment in these shops tends towards higher
levels during October.
Textiles Extend Recovery.
Unusually sharp seasonal increases, extending the gains since August,
were reported by the textile industries. The textile employment index.
which in July had fallen to an extreme low of 44.1% of the 1925-1927
average, has now recovered to 59.8 (preliminary), a rise of approximately
36%, as a result of the August, September and October gains. Advances
over September of from 10 to 15% were shown by all branches of the
group. Manufacturers of woolens, carpets and felts, who had gone contrary to thegeneral trend in August and September and had laid off workers,
increased their forces by 12% in October.
Financial Chronicle
Volume 135
Food Industries Depressed.
Employment in the food group, which had shown a good-sized pick-up
In September, was depressed during October. Canneries, coincident
with the passing of the summer canning season, let go 40% of their September forces. Decreases of 5% and 3%, respectively, occurred in the beverages and sugar and other groceries divisions. The seasonal upswing
in the candy industry continued. Other industries in the group reported
slight upward or downward movements.
Other Industries Continue Gains.
Seasonal activity continued in the industries comprising the furs, leather
and rubber goods group. Makers of wood products extended their gains
of the two previous months, with the musical instruments division again
reporting an especially large increase in numbers employed. Printing
plants and paper goods manufacturers continued seasonally busier, and
employment in chemicals, oils and paints was somewhat above the level
of previous months. All branches of the stone, clay and glass industry,
excepting lime, cement and plaster, were busier, with an unusual gain
In numbers employed occurring in the brick, tile and pottery division.
Employment in water, light and power plants turned upward. Pulp
and paper manufacturers went against the general trend and let go approximately the same number of persons they had taken on during September.
Improvement Both in New York City and Up-State.
Factory employment and payrolls in New York City continued their
the September to October period. Seasonal factors
during
advances
continued to favorably affect employment in the clothing, textiles, printing
and paper goods and furs, leather and rubber goods groups. Employment
in chemical plants and in wood manufacturing establishments continued
to seek higher levels. The stone, clay and glass, and water, light and
power groups, which had let go workers in September, were increasing
their forces during October. Employment in metals was but slightly
changed from September and in food and tobacco continued upward.
Increased employment and larger total payrolls were reported in October
In all of the up-State industrial centers except Rochester. In that district
seasonal curtailment in the canneries caused a net decline of 2% in total
factory employment. The largest percentage increases were in the AlbanySchenectady-Troy area, where there was a sharp rise in employment in
the railroad equipment and repair industry and substantial gains in the
manufacture of brushes, textiles and clothing. Both Utica and Binghamton
reported general advances, with almost all industries showing improvement.
In Buffalo the largest gains were in factories making heating apparatus,
machinery, railroad equipment and repairs, and textiles. In Syracuse
the gains in employment were smaller and leas numerous, although total
payrolls rose almost 5%.
Employment Lower in Construction Industries.
Contractors engaged in general building, highway and miscellaneous
general contracting and subcontracting, all employed fewer workers in
October than September. Percentage decreases in employment amounted
to 0.5 for general building contracting, 2.1 for highway contracting, 7.6
for miscellaneous general contracting and 5.0 for subcontracting. Both
payrolls and man-hours decreased at a greater rate than employment.
FACTORY EMPLOYMENT IN NEW YORK STATE.
(Preliminary.)
Industry.
Percentage Change
September to October 1932.
Total State. N. Y. Cup.
Stone. clay and glass
Miscellaneous stone and minerals
Lime, cement and plaster
Brick, tile and pottery
Glass
Metals and machinery
Silverware and jewelry
Brass, copper and aluminum
Iron and steel
Structural and architectural iron
Sheet metal and hardware
Firearms, tools and cutlery
Cooking, heating, ventilating apparatus
Machinery and electrical apparatus
Automobiles. airplanes, dm
Railroad equipment and repair shops
Boat and ship building
Instruments and appliances
Wood manufactures
Saw and planing mills
Furniture and cabinet work
Pianos and other musical instruments
Miscellaneous wood, ,to
Furs, leather and rubber goods_..
Leather
Furs and fur goods
Shoes
Gloves, bags, canvas goods
Rubber and gutta percha
Pearl, horn, bone dro
Chemicals, oils, paints, etc
Drugs and Industrial chemicals
Paints and colors
Oil products
Photographic and miscellaneous chemicals
Pulp and paper
Printing and paper goods
Paper boxes and tubes..
Miscellaneous Paper goods
Printing and bookmaking
Textiles
Silk and silk goods
Woolens, carpets, felts
Cotton goods
Knit goods, except silk
Other textiles
Clothing and millinery
Men's clothing
Men's furnishings
Women's clothing
Women's underwear
Women's headwear
Miscellaneous sewing
Laundering and cleaning
Food and tobacco
Flour, feed and cereals
Canning and preserving
sugar and other groceries
Meat and dairy Products
Bakery Products
Candy
Beverages
Tobacco
Water, light and Dower
Total
• No change.
+4.3
+2.7
-6.9
+15.7
+7.0
+3.6
+3.1
+1.7
-7.0
-8.8
+0.4
+9.4
+17.2
+0.8
-3.7
+15.7
+19.7
+2.6
+4.8
+0.6
+7.8
+14.3
-0.6
+2.8
+5.2
+11.2
+0.2
+11.3
+1.6
+12.8
+0.9
+2.0
+3.4
+1.4
-0.6
-2.9
+3.2
+8.9
+7.9
+1.7
+11.0
+12.0
+11.5
+15.4
+10.3
+9.8
+3.3
+0.4
+8.3
+8.9
+5.9
-3.9
-1.2
-0.8
-5.7
•
-39.7
-3.2
-0.3
*
+4.8
-4.5
-0.2
+2.1
+2.8
+10.9
+6.9
+1.9
-24.3
+30.3
+0.2
-3.3
-4.7
----215
+3.4
+iii
-1.8
+1.9
-14.4
+19.7
-3.6
+5.7
-6.0
+29.9
+12.9
-1.2
+4.7
+11-.2
-2.8
+14.6
+1.7
+5.4
+3.0
+2.4
+4.5
+3.2
-0.9
+1.8
+4.6
+20.8
+6.2
+3.2
+13.2
+18.2
+0.6
-1-2T3
+15.1
+3.3
+0.3
+6.0
+8.8
+3.9
-3.9
--2.7
-0.3
+1.4
+18.8
+0.7
+0.6
+4.9
-6.3
+3.0
+2.9
I
+3.3
Canadian Industry Irregular. S. H. Logan, General
Manager of Canadian Bank of Commerce, SaysLarge Export Trade in Grains at Unusually Low
Prices-Record Tobacco Crop.
According to S. H. Logan of the Canadian Bank of Commerce, "the seasonal operations of Canadian industry are
now more irregular than usual, for, while a number of secondary industries are busily engaged, there has been no
steady rise in those of primary importance." Mr. Logan
on Nov.8 added:
The activity so far in evidence in the secondary industries is the result
of the customary autumn demand, of some switching of business and filling
of orders consequent upon the decisions of the Ottawa Conference, and a
slight improvement in the purchasing power of the Western farmer. Moreover, any satisfaction to be derived from the abnormally large exports of
grain is tempered by the fact that these have been made at extremely low
prices. Yet an increase in merchandise carloadings in recent weeks indicates that the agricultural community has, at least temporarily, a volume
of new crops more than sufficient to offset the lower prices which these
command.
With the exception of potatoes, hay, clover and sugar beets, the field
crops for 1932 are well in advance of last year, but it must be borne in mind
that 1931 was one of partial crop failure in several important agricultural
districts. All field crops, with the exception of wheat, oats and sugar
beets, have fallen off considerably, the most marked declines being in
barley, potatoes, hay and clover. Conditions were not favorable for
potatoes, except in British Columbia. It is interesting to notice that the
yield per acre ofsugar beets is up from last year,so that the sharply reduced
acreage has not led to a correspondingly reduced production.
The latest reports available from the bank's branches indicate that the
tobacco crop is the finest ever gathered in this country. In the middle of
September it was stated by one of our representatives in Ontario that
"Norfolk County (where bright leaf is grown extensively) has just completed
the harvesting of its best crop, both as to quantity and quality, yet grown."
•
Industrial Situation in Illinois During October
Reviewed by Industry by Illinois Department
of Labor-Increases Reported in Both Employment and Payrolls as Compared with September.
Howard B. Myers, Chief of the Division of Statistics
and Research of the Illinois Department of Labor, stated
on Nov. 16 that "increases of 1.2% in employment and
1.3% in payrolls from September to October were reported
by 1,451 industrial establishments in Illinois." According
to Mr. Myers,"manufacturing industries showed a .2 of 1%
decrease in number of wage earners employed, but an increase of .8 of 1% in total wage payments. Non-manufacturing industries," he continued, 'showed increases in
employment of 3.5% and in payrolls of 1.9%. Continuing,
Mr. Myers also said:
A gain of 2.9% in nominal man-hours of work was shown by reports for
1,090 establishments. Manufacturing industries reported an increase of
1.8% and non-manufacturing industries of 5.2% in nominal man-hours.
For the third consecutive month this year employment and payrolls in
Illinois industrial establishments have shown increases over the preceding
month. Gains from September to October of 1.2% in the number of wage
earners employed and of 1.3% in total wage payments were reported by
1,451 establishments. The seasonal movement from September to October,
based on the average percentage change for these months during the sevenyear period preceding 1929, shows a rise of .7 of 1% in employment and
of 3.1% in payrolls. Current payroll figures were adversely affected by
continued reductions in wage rates. Wage cuts of from 2 to 25%, but
typically 10 or 20%, were reported by 36 establishments. Eleven of the
firms reporting reductions were coal mines, which have resumed operations
on the lower wage scale since the last report. The reductions reported
affected 5,446 wage earners, or 2% of the total number of wage earners
in all reporting industries.
Manufacturing industries, which were responsible for the upward movement in the all-industry group during August and September, reported a
slight decrease of .2 of 1% in employment for October. Although payrolls
Continued the upward movement with an increase of .8 of 1%,this increase
was considerably less than the gain in payrolls experienced during the two
Preceding months. Increases and decreases were distributed evenly among
the rline main groups of manufacturing industries. Four of these groups
-wood products, chemicals, oils and paints, printing and paper goods,
and textiles-increased both employment and payrolls. The increases in
employment ranged from .6 of 1% to 6.3%, and those in payrolls from
2% to 8.8%. The metals, machinery and conveyances group decreased
employment .2 of 1%, but increased payrolls 3.2%. In the remaining four
groups-stone,clay and glass, furs and leather goods, clothing and millinery.
and food products-decreases in employment ranged from .1 of 1% to 4%
and in payrolls from .2 of 1% to 12.1%.
In the non-manufacturing industries gains of 3.5% in eniployment and
1.9% in payrolls were reported in October. The gain is the first gain in
employment reported in the non-manufacturing industries as a whole since
June 1931 and the first in payrolls since November 1931. Wholesale and
retail trade, coal mining and building and contracting contributed to these
increases. Most of the gain, however, was contributed by the 29 reporting
coal mines, which have increased the number of men employed by 3.710
since the time of the last report. This increase more than trebled the volume of employment in these mines. Services and public utilities establishments, however, showed decreases in employment and payrolls, which
offset to a large extent the increases in the other groups.
Allbut two of the 13 industries which are included in the metals, machinery and conveyances group contributed to the 3.2% increase in payrolls
which was reported for the group as a whole. The increases in payrolls
exceeded 30% in the manufacture of machinery and of watches and jewelry:
exceeded 20% in agricultural implements, and 10% in the non-ferrous
metals and cars and locomotives; and were greater than 5% in the iron and
steel, tools and cutlery, and sheet metal work and hardware industries.
The two industries in which payrolls showed a decrease for October were
cooking and heating apparatus and electrical apparatus, the former reporting
a decrease of 1.2% and the latter 14.4%. Only five of the 13 industries,
however, showed a gain in number of wage earners employed. These were
the non-ferrous metals, cars and locomotives, machinery, watches and
jewelry, and agricultural Implement industries.
3424
Financial Chronicle
Food products, the second largest of the reporting manufacturing groups
and the one which contributed largely to the Increases of the preceding
month,in October showed a slight loss of .7 of 1% in employment and .2 of
1% in payrolls. Four of the 11 industries included in this group, flour,
feed and cereals, miscellaneous groceries, meat packing, and cigars and
tobaccos, reported gains in both employment and payrolls. Confectionery
showed an increase in employment but a decrease in payrolls. Marked
decreases, largely seasonal in nature, were reported in the canning industry
and in the manufacture of ice and ice cream.
Of the four manufacturing groups in which both employment and payrolls
showed an increase from September to October, textiles reported the largest
gains,6.3% in employment and 4.5% in payrolls. All of the four reporting
industries in this group shared in the gain In employment and all but the
thread and twine industry in the rise in payrolls. The printing and paper
goods group, represented by six industry classifications, showed increases
in employment in all industries except job printing, but showed larger payrolls in only three of them-the manufacture of paper boxes, bags and tubes,
edition book binding, and lithographing and engraving. The printing and
paper goods group as a whole raised employment 2.9% and payrolls 2.4%•
Expanded operations in the wood products group were reflected in the increases of .7 of 1% in employment and 8.8% in payrolls. Saw and planing
mills, furniture and cabinet work, the manufacture of pianos and musical
instruments, and miscellaneous wood products showed increases in payrolls
and all but miscellaneous wood products showed gains in employment.
Chemicals, oils and paints, the remaining one of the four manufacturing
groups in which both employment and payrolls showed increases, reported
a .6 of 1% gain in employment and 2% gain in payrolls. The number or
increases and decreases were evenly divided between the industries in
this group.
A marked decline in employment and payrolls was shown by the furs
and leather goods group, which decreased the number of wage miners 4%
and reduced payrolls 5%. Reductions of 6.1% in employment and 9.7%
in payrolls reported by 20 boot and shoe factories were entirely responsible
for the losses in the group as a whole, since the other industries in this
group-leather,furs and fur goods, and miscellaneous leather goods-added
more wage earners and increased payrolls. Clothing and millinery, another
of the manufacturing groups in which decreases were recorded, showed only
a slight loss of .1 of 1% in employment, but a 12.1% drop in payrolls.
Total wage payments in the men's clothing industry decreased 15% and in
the women's clothing industry 13.3%. The stone, clay and glass products
group showed a decrease of 1.1% in employment and of .8 of 1% in payrolls.
The miscellaneous stone and minerals, and the lime, cement and plaster
industries reduced employment and payrolls. Brick, tile and pottery
increased employment but not payrolls, while glass factories showed a loss
In employment but a rise in payrolls.
In the non-manufacturing group of industries, the most pronounced
improvement for the month was reported by coal mines, which increased
employment 203.5% and payrolls 315.2%. A number of mines which had
been closed down since last March resumed operations during the month.
Building and contracting also contributed to the general upward movement
showing an increase of 11.9% in employment and 2.2% in payrolls. In
wholesale and retail trade 75 establishments reported an increase of 1.1%
in the number of wage earners employed and an increase of 1.8% in total
wage payments. The increases were contributed by department stores,
mail-order houses and metal jobbing concerns. Decreases in both employment and payrolls were shown by wholesale dry goods, wholesale
groceries and milk-distributing establishments.
The services group, represented by 80 establishments, reduced employment 1% and payrolls 3.6% from September to October. In 61 hotels
and restaurants employment declined .7 of 1% and payrolls 3.7%. Nineteen laundering, cleaning and dyeing establishments showed losses of 3.4%
and 3.1%, respectively, in employment and payrolls. Public utilities also
showed a general downward movement; employment declined 1% and
payrolls 3% from September to October. The percentage declines in
employment ranged from .6 of 1% in railway car repair shops to 1.8% in
water, gas, light and power companies. The latter industry, however,
showed a decline of only .6 of 1% in payrolls, while railway car repair shops
decreased payrolls 2.1%, telephone companies 2.9% and street railway
companies 5.1%.
The October Index of employment in all reporting industries of the State
Is 58.6, denoting a decrease of 42.8% since October 1929, when the value
of the index was 102.5. Payrolls have declined even more during these
three years. The index of 38.8 shown for October this year is 60.5% lower
than the index of 98.3 in October 1929. These indexes are based on the
monthly average of the three years 1925-27 as 100.
A review of the industrial situation in Illinois by cities
was also issued by Mr. Myers under date of Nov. 17:
The number of wage earners employed in 963 reporting factories in
Illinois showed a slight decline of .2 of 1% from September to October.
Payrolls in reporting factories continued to Increase but the gain of .8 of
1% from September to October was appreciably smaller than the gain
reported during the two preceding months. The simple average of the
Percentages of change from September to October, based on the years
1922 through 1928, shows an average gain of less than .1 of 1% in employment, but an average increase of 3.3% in payrolls. The percentages of
change from Septemner to October 1932, although not equaling the averages, are more favorable than any percentage changes for October as compared with September, reported since 1928. In the years 1930 and 1931
both employment and payrolls declined from September to October, while
in 1929 employment declined more than in the current year. and payrolls
showed the same percentage increase.
Of the 15 cities for which figures are compiled separately, seven reported
a larger number of wage earners in October than in September, and eight
showed an increase in payrolls. Six of the 15 citles-Cicero, Danville,
Joliet, Peoria, Rockford and Sterling-Rock Falls-showed marked increases in employment, payrolls and average weekly earnings. Chicago
factories reduced payrolls 1.8%, a loss which was more than offset by an
increase of6.1% reported by factories in the rest of the State. In the group
of cities classified as "all others," factory employment showed a decrease
of 1.2% or about one-third of the increase reported in the previous month.
Payrolls in these cities, however,showed an increase of 5.4%,a gain nearly
as large as that reported in Septemoer.
From September to October the opening of an appreciable number of mines
in the coal regions of the State helped to decrease unemployment in these
areas. The demand for farm labor showed a temporary increase during
the corn-husking season, especially since low wages induced many farmers
to employ laborers rather than machines for the husking. It was reported.
however,that fewer of those hired were retained for permanent employment
than has been the case in preceding years. The Division of Highways of
the Illinois Department of Public Works and Buildings reports a total
of 21,410 men engaged in road construction during October. This is a
decrease of 6.7% from the total of 22,958 men reported during September.
At the free employment ofices of the State, the ratio of registrations to
every 100 positions open was 170.4 in October, as compared with a ratio
of 187.4 in September.
Nov. 19 1932
Aurora.-Employment decreased 2.1% and payrolls 3.9% in 18 reporting
factories in this city. Eleven reporting metals establishments were mainly
reponsible for these declines. The unemployment ratio at the free employment office was 226.1 in October as compared with 205.8 in September.
Bloomington.-Decreases of 2.1% in employment and 3.1% in payrolls
reported by 11 factories of this city offset only a portion of the increases
reported in the preceding month. The ratio of registrations to every 100
places available at the free employment office increased from 147.5 In
September to 153.7 in October.
Chicago.-Reports from 499 factories of this city showed decreases
from September to October of .1 of 1% in employment and 1.8% in payrolls. The decreases in employment and payrolls were mainly the result
of declines in the metals, and furs and leather goods groups, while decreases
in payrolls were attributable to declines in these two groups, and also
to losses in the stone, clay and glass, clothing and millinery, and food
products groups. Indexes of employment and payrolls based on the
1925-27 monthly average, showed values in October of 53.3 for employment and 31.4 for payrolls. These series show the severity of the drop
in industrial activity in Chicago factories, not only since the base period,
but since January 1932, when the employment index was 61.9, and the
payroll index, 44.6. The free employment offices of the city reported a
total of 247.7 registrations to every 100 positions open in October as compared with a ratio of 264.5, in September.
Cicero.-Eleven factories of this city reported increases from September
to October, of 7.1% in employment and 20.2% in payrolls. These reported
gains constitute the fourth consecutive increase In employment and the third
in payrolls. All reporting groups of industries shared in the current
gains. The unemployment ratio at the free employment office showed
a decline from 229.9 in September to 207.5 in October.
Danville.-Increases of 6.8% in employment and 7.0% in payrolls were
reported by 11 factories in this city. Establishments in the metals, wood
products and printing and paper goods groups shared in the gains shown
during the month, while brick-yards and food products establishments
showed declines. The unemployment ratio at the free employment office
dropped from 248.9 in September to 242.8 in October.
Decatur.-Employment decreased 3.0% whole payrolls increased 2.2%
in 17 reporting factories in this city. Of the four groups of industries represented in the reports, metals and wood products showed increases in both
employment and Payrolls food products In payrolls but not employment;
while clothing and millinery showed decreases in both employment and
Payrolls. The unemployment ratio at the free employment office declined
from 395.1 in September to 224.6 in October.
East St. Louis.-Decreases of 3.3% in employment and 6.9% in payrolls
reported by 20 factories of this city more than offset increases reported
in the preceding month. The metals group, represented by seven establishments ran counter to the general movement, adding more wage earners
and increasing total wage payments. The unemployment ratio of 117.6
in October was slightly below the ratio of 121.7 reported for September.
Joliet.-Increases of 1.7% in employment and 4.0% in payrolls in October
were reported by 25 factories in this city. Four of the six industrial groups
to which reporting factories of this city belong, shared in the general increases in employment and payrolls. A millwork establishment and a roofing plant represented the two industrial groups in which figures for employment and payroll showed a decline. The unemployment ratio at the free
employment offices showed a sharp drop from 415.3 In September to 262.7
for October.
Moline.-Decreases of 1.8% in employment and 1.0% in payrolls reported
by 15 factories only partially offset the increases reported in the preceding
month. The metals group, which includes establishments manufacturing
agricultural implements, continued to show increases in payrolls. A
printing company and two candy manufacturing establishments were
mainly responsible for the total decreases. The free employment office
reported that the completion of two Federal construction projects would
release many men. Since the number of positions open at the free employment offices was less than 100, the unemployment ratio has not oeen
computed.
Peoria.-Increases of8.7% in employment and 19.7% in payrolls reported
by 33 factories in October continued the upward movement noted during
the preceding month. The metals and food products groups were mainly
responsible for the gains reported. The printing and paper goods group
and a textiles estaolishment suffered losses which practically offset all of
the gains that were reported a month earlier. The unemployment ratio
at the free employment office was 141.3 as compared wuth 142.5 in Sep •
tember.
Quincy.-ThIrteen reporting factories of this city Increased employment
2.0%, but decreased payrolls 2.9%. The divergent movement shown by
these figures was to a large extent the result of the action of two clothing
establishments which increased the number of wage earners, but reduced
total wage payments. The metals group showed gains in both employment
and payrolls. The free employment office reported an unemployment
ratio of 109.9 in October as against 108.6 the preceding month.
Rockford.-Sucstantlal increases of 5.6% in employment and 21.5% In
payrolls were reported by 34 factories in thsi city. All reporting groups
showed increases. The industries reporting the most important gains
were those in the metals group and the furniture and cabinet work and
knitting goods industries. The unemployment ratio at the free employment offLie declined to 160.3 in October from 170.1 the month before.
Rock Island.-A decrease of 2.1% in employment reported by 10 factories
of this city reversed the upward movement shown by this series since July.
Payrolls continued to Increase, showing a gain of .6 of 1%. Six establishments In the metals group were mainly responsible for the movements
shown in the totals for this city. The number of positions available at
the free employment office of this city was less than 100.
Springfield.-The reports from 12 factories of this city showed decreases
of 3.5% in employment and of .1 of 1% in payrolls. Substantial gains
in the metals group were more than offset by the losses in several other
groups of industries and particularly by losses reported by a large shoe
factory and by establishments in the printing and paper goods group.
The free employment office reported an unemployment ratio of 134.4 for
October against 126.5 for September.
Sterling-Rock Falls.-Thirteen reporting factories in these cities showed
increases of 2.0% in employment and 27.2% in payrolls, which compensated for the sharp decreases reported in the preceding month. The
metals group, represented by 11 establishments, was mainly responsible
for the gains.
All Other Cities.-A decrease of 1.2% in employment and an increase
of 5.4% in payrolls were reported by 221 factories in this group of cities.
With the exception of furs and leather goods, every reporting group showed
a rise in payrolls. The decline in employment was contributed mainly
by the food products group, although the furs and leather goods, wood
products and stone, clay and glass groups also showed declines in employment. The metals group increased employment 1.6% and payrolls 8.7% •
The printing and paper goods, textiles and clothing and millinery groups
showed appreciaole percentage increases in both employment and payroll.
Financial Chronicle
Industry.
PAYROLLS.
Index of
Index of
Average
Per
Employment
Payrolls
Per
Weekly
Cent
(Monthly
Cent
(Monthly Earnings
Change
Average
Average
Change
of
Sept. 15 1925-27=100) Sept. 151925-2/=--100) &rite
to
Wages&
Oct. 15 Oct. Oct. Oct. 15 Oct.
Oct. Oct. 15
1932. 1932. 1931. 1932. 1932. 1931. 1932.
+1.2 58.6 70.4
All industries
+1.3 38.8 55.2 820.79
All manufacturing Indus._ -0.2 54.4 65.7
+0.8 32.5 47.7
18.27
-1.1 43.5 53.6
Stone, clay. glass
-0.8 22.7 35.1
17.18
Miscell. stone, mineral_ -1.6 52.7 57.9
-7.7 27.6 38.3
21.69
-2.6 47.3 49.3 -12.7 21.0 31.4
Lime, cement, plaster
16.79
Brick, tile, pottery.... +7.0 28.6 39.7
-5.5 11.3 20.6
13.67
-3.7 61.3 74.9
Glass
+8.5 51.8 79.3
17.00
MetaLs. puuth'y,convey'ese -0.2 41.8 60.5
+3.2 21.1 38.6
17.18
-0.8 58.1 72.2
Iron and steel
+5.9 25.0 43.4
13.39
sheet metal w'k. hardw_ -0.1 50.7 66.7
+8.1 41.8 67.4
15.93
-7.1 31.5 46.4
Tools. cutlery
+6.5 13.5 26.9
16.34
coorg & heat's apple_ -3.1 49.5 68.3
-1.2 21.3 36.9
16.46
Brass, cop.,zinc & other +0.2 52.0 66.7 +10.6 30.3 45.6
19.61
Cars,locomotives
+6.3
7.0 14.3 +17.4
3.9 10.4
16.11
Automobiles, accesories -10.9 34.2 70.7
+4.5 25.8 44.7
20.42
Machinery
+13.3 45.9 58.9 +33.1 31.3 46.8
18.67
Electrical apparatus. _ _ -8.5 32.0 61.8 -14.4 13.4 30.0
23.04
Agricultural Implements +23.5 38.3 43.0 +24.8 17.7 24.6
14.64
Instruments & appircee -1.8 43.3 51.1
+3.8 20.2 29.8
20.12
+16.0 38.2 66.1
Watches, Jewelry
33.8 27.4 52.3
16.57
-2.2
All other
--------+1.9
------30.73
Wood products
+0.7 .34.3 46.2
+8.8 21.2 34.0
14.75
-1-4.9 31.9 45.5
Saw-planing mills
+7.2 14.4 30.4
15.49
+3.3 36.4 48.3
Fun.,cabinet work_ _ _
+9.4 21.3 33.8
14.05
Pianos, musical Instr.-Gs_
+2.7 21.3 25.9 +35.9 12.2 14.8
20.57
Miscell. wood products. -7.5 41.1 52.7
+ 1.0 22.5 33.2
14.06
-4.0 83.8 83.8
Furs and leather goods
-5.0 44.0 45.3
12.42
Leather
-1-9.6 98.3 06.7
+9.5 79.4 91.1
22.19
Furs, fur goods
+3.2
___
_
+17.1
------36.59
shoes
and
Boots
-6.1 76.5 183.1
.-9.7 37.7 37.5
10.65
Miscell. leather goods.._
-1-2.9 34.1 37.4 +11.7 25.5 33.8
15.66
Chemicals, oils, paints_ - _
+0.6 68.7 79.4
+2.0 55.0 71.6
21.22
Drugs, chemicals
-0.4 61.6 68.5
+5.9 43.8 56.2
18.48
Paints, dyes, colors
+5.7 65.1 73.7 +16.8 63.2 78.2
22.67
Mineral & vegetable oil_ -0.9 69.6 78.2
-1.5 66.5 84.8
24.20
Miscellaneous chemica
+0.3 68.2 83.8
-5.3 44.0 62.6
16.83
Printing and paper goods
+2.9 70.5 82.3
+2.4 42.3 59.1
26.40
Paper boxes. bags. tu
+7.3 73.1 81.4
+8.4 44.6 56.41 20.12
miscell. paper gooda..
+0.1 76.3 84.0
-0.3 56.6 79.0' 18.68
Job printing
-0.5 49.8 62.9
-0.9 24.2 36.2
24.94
Newspapers, periodical* +1.1 84.0 88.8
-1.5 59.5 78.6
36.17
Edition bookbinding... +7.4
------+6.8
------28.16
Lithographing & engrav
+8.1
------28.32
------+ 12.1
Textiles
+6.3 70.3 79.7
+4.5 63.0 80.1
15.91
Cotton. woolen goods._
+2.8 94.1 106.0
+2.7 104.2 140.5
20.09
Knit goods
+10.6 67.5 86.2 +16.1 71.4 99.1
12.08
Thread and twine
+4.9 59.2 62.0
-7.4 43.3 57.6
12.55
Miscellaneous textiles-. +7.7 94.7 92.2
+4.3 63.0 65.8
15.63
Clothing and millinery _ -0.1 67.7 68.1 -12.1 33.8 42.5
14.19
Men's clothing
-0.2 61.1 61.7 -15.0 33.2 38.0
15.47
Men's shirts, furnishings +13.6 61.9 70.1 +18.1 50.1 74.4
13.11
Overalls, work clothes._
+2.0 24.5 23.0
-7.0 23.1 25.5
7.58
Men's hats. caps
-2.1
-------22.8
------19.02
Women's clothing
-6.8 75.2 74.31.1
-13.3
41.0
10.96
Women's underwear.... +3.9 109.5 90.4 +23.3 88.8 103.8
14.80
Women's hats
-8.7
-------47,3 ------12.16
Food, beverages, tobacco_ -0.7 82.3 75.7
-0.2 60.9 71.4
19.79
Flour, feed, cereals..... +0.1 83.6 77.9 +16.1 75.3 75.9
23.46
Fruit, vegetable canning -58.9 73.0 76.4 -31.7 41.1 52.0
12.81
Miscellaneous groceries_
+3.5 77.8 80.9
+91 62.5 83.7
24.06
Slaughtering, meat pkg. +1.9 82.8 84.6
+0.3 70.1 90.3
20.80
Dairy products
-1.3 82.6 92.8
-2.2 67.8 89.5
29.32
Bread, other bak'y prod. -1.2 58.8 68.9
-5.2 54.3 60.6
22.57
Confectionery
+4.4 136.9 85.5
-4.2 68.2 55.9
13.60
Beverages
-9.1 54.1 78.7
+9.6 40.4 64.1
24.38
Cigars, other tobaccos._ +94.4 38.7 69.4 +48.8 31.4
64.0
13.94
Manufactured Ice
-20.6 68.7 90.4 -12.1 112.2 146.2
37.53
Ice cream
-20.5
-------15.4
------31.75
Mina. manufacturing.- -1.3
------477.2 ------18.48
Non-manufacturing Indus. +3.5
------+1.9 ------24.66
Trade-Wholesale & retail +1.1 53.7 62.8
+1.8 45.8 59.7
23.47
Department stores
+0.7 84.2 92.9
+3.8 74.7 96.9
19.06
Wholesale dry goods... -6.8 66.4 76.3
-4.5 60.7 64.9
21.47
Wholesale groceries.... -1.3 56.2 77.2
-1.3 56.1 72.3
27.42
Mail order houses
+2.0 45.7 54.8
+4.8 32.0 44.6
17.91
Milk distributing
-0.9
-------1.4
------44.31
Metal Jobbing
+4.7
------+0.6
------21.96
Services
Hotels and restaurants- -0.7
-------3,7 ------15.62
Laundries
-3.4 74.8 89.5
-3.1 53.7 79.2
14.77
Public utilities
-1.0 75.3 86.1
-3.0 65.8 89.5
26.64
Water. gas. lIght k pow_ -1.8 79.5 109.0
-0.6 36.0 53.7
31.93
Telephone
-0.8 88.7 96.1
-2.9 77.6 104.3
22.60
Street railways
-0.8 75.9 84.1
-5.1 84.8 103.7
30.57
Railway car repair
-0.6 44.0 47.0
-2.1 46.0 70.6
20.60
Coal mining
+203.5 55.5 75.8 +315.2 29.1 32.2
23.83
Building. contracting-- +11.9 16.6 27.5
+2.2 14.8 24.3
23.82
Building construction-- +13.8 11.3 22.3
+3.1
8.5 20.6
26.63
Road construction
+9.4 386.2 132.0
-0.2 730.8 132.1
18.91
MIscell. contracting---- +11.0 15.9 22.2
+2.5 15.2 31.1
23.93
Further Increases Reported by Federa Reserve Bank
of Philadelphia in Employment and Payrolls in
Pennsylvania Factories from Septmber to October
-Payrolls of 'Delware Factories Increased While
Employment Decreased.
"Factory employment in Pennsylvania showed a further
gain of about 3% and wage payments 8% from September
to October, according to reports to this Bank," states the
Philadelphia Federal Reserve Bank, "from 804 manufacturing plants employing nearly 230,00J workers with a
weekly payroll of $3,531,000. These increases continued to
be larger than usual," the Bank also noted, "the movement
having been steadily upward for three successive months.
Employment in October thus was 9% larger and wage
payments 19% greater than in July, when record low levels
were reached. These gains during the three months were
considerably larger than the usual seasonal increases estimated for this period." Under date of Nov. 18 the Bank
further reported as follows on factory employment in Pennsylvania and Delaware:
operating time showed a similar upward trend. Employee-hours
actually worked increased steadily for three months, the gain in October
FACTORY EMPLOYMENT, WAGE PAYMENTS AND
EMPLOYEE-HOURS IN PENNSYLVANIA.
Prepared by the Federal Reserve Bank of Philadelphia in co-operation with
the Pennsylvania Department of Labor and Industry and the United States Bureau
of Labor Statistics.
(Index numbers are percentages of 1923-1925 average which Is taken as 100.)
Employment.•
Payrolls.*
Per Cent
Per Cent
Change From
Oct.
Oct.
Change From
1932
1932
hider. Sept.
Oct. Index. Sept.
Oct.
1932. 1931.
1932. 1931.
Emprye
Hours.:
%
Change
Oct.
From
Sept.
1;,1..c.C.1
ix. 4.b
EMPLOYMENT.
All manufacturing Indust__ 62.4 +2.8
38.7 +7.5 -29.0 +8.5
Metal products
51.0 +2.6
25.9 +7.5 -39.5 +8.9
Blast furnaces
38.6 +4.0
15.4 +13.2 -38.9 +17.1
Steel works & rolling mills 45.1 +1.8
20.4 +7.9 -37.9 +7.1
Iron and steel forgings_
47.3 +11.6
29.1 +34.1 -44.3 +39.7
Structural iron work
73.5 -1.6
42.0 +8.5 -34.0 +7.8
Steam and hot water heating appliances
80.8 +3.9
54.8 +29.2 -17.8 +28.4
Stoves and furnaces
65.9 +7.9
53.9 +22.2 -0.2
Foundries
49.1 +0.8
20.9 +6.1 -36.7 +4.5
Machinery and parts_
13.0 +2.9
28.2 +14.2 -40.0 +14.4
Electrical apparatus_ _
72.4 +6.5
43.7 +2.1 -45.1 +7.5
Engines and pumps
33.9 +1.5
18.3 +11.6 -38.0 +9.9
Hardware and tools
55.2 +0.2
29.6 +5.3 -39.6 +7.1
Brass & bronze products. 53.0 +1.0
29.1 +0.3 -39.8 -0.7
Transportation equipment. 37.3p +1.6
20.6p +0.5 -51.9 +3.6
Automobiles
26.5 +2.3
13.1 -3.0 -44.5 +3.2
Automobile bodies& parts 39.8 +40.1
27.6 +39.4 -50.1 +55.4
Locomotives and cars... 20.7 -0.5
11.0 +5.8 -25.7 +10.2
Railroad repair shops
67.6 +15.0
34.5 +58.3 -34.8 +67.2
Shipbuilding
24.9 -50.3
27.3 -65.1 -50.5 -68.2
Textile products
89.2 +5.1
70.6 +15.7 -9.0 +14.4
Cotton goods
59.5 +4.2
47.9 +5.5 -10.0 +15.3
Woolens and worsteds
63.2 -2.2
44.3 +2.5 -20.0 +15.2
Silk goods
102.3 +4.5
83.4 +15.2 -7.4 +13.0
Textile dyeing & finish's 74.3 -5.0
62.1 -10.6 -9.1 -8.7
Carpets and rugs
54.5 +9.7
36.2 +28.4 -38.7 +28.0
Hats
67.1 +14.7
61.1 +10.3 +5.7
__Hosiery
108.0 +6.6
95.2 +23.8 -1.8 +16.7
Knit goods, other
92.1 +5.7
78.6 +27.4 +2.3 +37.5
Men's clothing
81.6 +15.1
59.5 +16.9 -18.2 +41.8
Women's clothing
87.8 -3.2
56.3 -3.8 -27.3 -31.3
Shirts and furnishings... 122.2 +2.2
81.3 +5.2 -35.1 +5.9
Foods and tobacco
98.9 +2.3
80.7 +2.9 -14.4 +3.3
Break and bakery prods_ 95.4 +0.8
77.6 +0.1 -20.2 -0.4
Confectionery
103.0 +14.4
94.0 +23.2 -9.9 +7.8
Ice Cream
74.9 -13.7
61.7 -13.8 -29.4 -14.0
Meat packing
94.3 +0.5
75.5 +1.5 -12.1 +0.4
Cigars and tobacco
97.7 -0.3
74.2 -2.2 -10.1 +7.5
Stone, clay & glass products 49.0 +6.8
23.8 +12.3 -38.5 +10.3
Brick, tile and pottery
49.8 +6.9
21.9 +14.1 -44.4 +9.1
Cement
44.2 +4.0
20.3 +4.1 -39.9 +8.2
Glass
59.0 +12.6
38.2 +25.2 -25.2 +17.4
Lumber products
45.8 +1.1
30.6 -1.6 -36.4 +6.8
Lumber & planing mills_ 26.8 +6.3
15.5 -4.3 -51.7 -9.5
Furniture
52.7 +0.2
35.2 -7.6 -34.8 +7.9
Wooden boxes
55.7 -0.9
41.3 +15.7 -19.3 +20.2
Chemical products
771 -2.6
60.2 -4.4 -18.2 -5.9
Chemicals and drugs.... 52.1 +4.6
41.0 +8.8 -28.2 +25.5
Coke
55.6 +0.2
18.6 +1.6 -42.8
Explosives
65.6 +2.7
56.9 +8.6 -31.4
Paints and varnishes.... 84.7 +4.4
60.6 +11.4 -18.7 +11.1
Petroleum refining
116.9 -6.3
103.9 -9.2 -10.6 -9.8
Leather and rubber prod__ 87.4 +4.2
66.1 +10.0 -18.4 +10.0
Leather tanning
83.5 +3.0
58.2 +6.4 -30.0 +4.7
Shoes
102.8 +4.9
83.3 +3.9 -1.5 +5.3
Leather products, other. 73.4 +9.4
60.3 +6.0 -6.5 -1.0
Rubber tires and goods
79.0 +1.9
85.4 +58.1 +2.3 +46.7
Paper and printing
82.0 +0.4
67.3 +3.7 -22.6 +4.8
Paper and wood pulp _ _ _ _ 73.2 -1.6
50.8 +6.5 -20.1 +7.3
Paper boxes and bags
66.3 +8.2
60.7 +16.7 -31.7 +25.0
Printing and publishing
86.9 +0.7
74.4 +1.9 -22.7 -4-0.4
Preliminary. • Figures from 807 companies representing 51 industries.
x Figures from 570 companies representing 47 industries.
oZ34`.2'c';'a
g ...
6o;o i4:-.OD 4,6 e•D ;p.
EMPLOYMENT, PAYROLLS AND AVERAGE WEEKLY EARNINGS IN
ILLINOIS, OCTOBER, 1932.
3425
being almost 9% over the September level, according to reports from 570
factories, employing 175.000 workers, whose weekly compensation amounted
to nearly $2,596,000. Compared with the low point in July, plant operations were expanded by 26%. As in the case of employment and wage
earnings, the upward tendency in working schedules during the autumn
months was much more favorable this year than in the past two years.
Virtually all manufacturing groups reported appreciable gains in employment and payrolls from September to October, the largest increases
occurring in textile, stone, clay and glass, leather and metal products
industries. The group covering chemical and related products showed
declines, owing solely to decreases in employment and payrolls of the
petroleum refining industry. Lumber products registered a gain in employment but a decline in wage earnings.
All industrial areas of this District, except that represented by Wilmington, reported marked increases in wage payments; most of them also
had taken on additional workers in October. Compared witn a year
ago, the areas comprising Hazleton-Pottsville, New Castle, Wilkes-Barre
and Wilmington sections employed more workers, while the New CastleWilmington sections employed more workers, while the New Castle,
'Wilmington areas alone showed larger payrolls.
The Pennsylvania employment index number in October was 62.4%
of the 1923-25 average, or 13% lower than in October 1931. The payroll
index number was nearly 39, or 29% lower than a year ago. The employee-hours index number was 18% below that of last year. The spread
between indexes of this and last year has been narrowing noticeably since
July.
Delaware factories showed gains in payrolls and working time, but a
decline in employment. The employment index number in October was
71, or 5% lower than a year ago; while the payroll index number was 48,
or 21% below that in October 1931.
do cO to to *146
kao:4
Mr. Myers also issued the following statistics:
c4cm .4co do o
m C**4"; .84c7.4"- C7.4.oo O-o.do
iz O.6.1.C. b. Co
63;-.:-.42:4;.- 4a Ca
Volume 135
FACTORY EMPLOYMENT AND WAGE PAYMENTS IN
DELAWARECOMPARISON WITH THE PREVIOUS MONTH BY INDUSTRY.
Prepared by Department of Research and Statistics of the Federal
Reserve Bank
of Philadelphia.
Per Cent Change October
No. Compared With September 1932.
of
Plants. EmPlogPayEmployee
mate.
Hours.*
rolls.
All manufacturing industries
Metal products
Transportation equipment
Textile products
Foods and tobacco
Stone, clay and glass products
Lumber products
Chemical products
Leather and rubber products
Paper and printing
• Based on reports from 48 plants.
54
10
-1.7
3
7
4
5
5
8
7
-4.0
+0.3
-19.3
+29.0
-7.2
+5.8
+1.6
+0.3
+0.3
-1.7
-7.4
-3.4
-5.1
+16.0
-12.8
+12.8
+7.4
+4.6
+1.7
-3.1
-5.2
+2.5
-11.2
+13.9
-13.5
+19.3
+6.7
+3.0
Financial Chronicle
3426
'FACTORY EMPLOYMENT AND WAGE PAYMENTS BY CITY AREAS.
Prepared by Department of Research and Statistics of the Federal Reserve Bank
of Philadelphia.
(City areas are not restricted to corporate limits of cities given here.)
Payrolls.
Employment.
Per Cent Change
Compared With
Per Cent Change
Compared With
October
Indexes.
Allentown-Bethlehem54.3
Easton
58.9
Altoona
56.6
Erie
61.7
Harrisburg
92.0
Hatleton-Pottsville
38.0
Johnstown
61.7
Lancaster
New Castle
40.2
69.9
Philadelphia
52.8
Pittsburgh
67.2
Reading-Lebanon
Scranton
60.9
69.1
Sunbury
101.1
Wilkes-Barre
48.9
Williamsport
71.0
Wilmington
York
79.5
Sept.
1932.
Oct.
1931.
+3.4
+2.1
+10.5
+2.0
+1.9
-1.0
+3.4
-0.2
+5.9
+2.5
+2.0
+1.7
+0.9
+3.4
+7.7
-12.4
-21.4
-28.1
-11.2
+22.7
-1.6
-19.7
+2.6
-11.3
-12.9
-14.4
+3.8
+7.0
-32.3
+10.9
Oct.
Indexes.
34.5
35.3
38.2
43.3
59.5
17.9
39.0
20.3
54.3
21.9
43.0
51.6
46.2
75.7
34.6
54.4
54.8
Sept.
1932.
+10.6
+6.6
+18.6
+7.2
+0.2
+13.3
+9.9
+19.4
+6.3
+4.3
+22.9
+8.9
+7.2
+11.0
+8.5
-2.3
+6.6
Oct.
1931.
-27.1
-37.4
-37.2
-23.0
-13.3
-40.5
-37.4
+2.5
-23.3
-41.3
-25.3
-13.1
-42.2
+3.8
-17.6
FACTORY EMPLOYMENT AND WAGE PAYMENTS IN DELAWARECOMPARISON WITH PREVIOUS YEARS FOR
ALL MANUFACTURING INDUSTRIES.
Prepared by Department of Research and Statistics of the Federal Reserve Bank
of Philadelphia.
Employment.
January
February_ March
April
May
June
July
August
September
October
November_
Oecember
Average
Payrolls.
1932
1932
Contpar'd
Indexes.
Compared
Indexes.
with 1931
with 1931
1930. 1931. 1932. Per Cent. 1930. 1931. 1932. Per Cent.
--24.9
57.5
77.0
-9.0 107.8
79.3
113.1
87.1
--25.5
59.5
79.9
78.5 -10.4 107.0
112.4
87.6
--30.0
57.2
81.7
75.9 -13.8 108.1
88.1
112.9
--33.8
52.5
79.7
74.8 -13.9 108.1
86.9
112.6
--39.1
49.4
81.1
103.8
72.6 -15.9
86.3
109.4
48.5
--37.8
78.0
71.5 -16.5 101.1
85.6
107.2
--33.2
45.9
94.2
68.7
-17.3
84.4
69.8
102.7
--35.1
44.7
68.9
93.2
-18.1
68.1
83.2
101.6
--25.3
64.1
47.9
89.7
-11.2
72.1
81.2
98.5
--21.3
48.0
61.0
87.1
-4.8
70.9
74.5
94.0
54.7
78.1
74.9
87.9
56.4
78.7
76.0
86.7
70.9
96.4
83.0
103.3
Rubber Shipments from British Malaya Smaller According to Rubber Exchange of New York.
Gross exports of rubber from British Malaya during October totaled 37,946 tons, The Rubber Exchange of New
York, Inc., was advised on Nov. 1 by cable, compared with
41,973 tons exported in September, and 45,911 tons during
October 1931.
The Rubber Exchange also reports that for the ten months
ended with October, Malayan rubber shipments amounted
to 398,061 tons, as against 435,987 tons during the corresponding time last year.
Tire Manufacturing Companies Entering "Spring Dating" Period With No Changes in List Prices of
Tires or Tubes.
From the "Wall Street Journal" of Nov. 14 we take the
following:
The leading tire manufacturing companies are entering the period in
which they do their spring dating business with no changes in the list prices
of tires or tubes. This period extends from November 15 to May 15 and
it is during this time that dealers lay in their stocks for spring business.
In order to spread the buying out and tend to eliminate extreme peaks and
valleys in production and sales, the tire companies guarantee the prices to
dealers during this period against decline.
The tire companies are making some minor adjustments both up and
down in dealers' discounts at this time. On the average the adjustments
would tend to give the dealer a more advantageous basis for operations.
John N. Willys States Automobile Prices are Still Too
High-Chairman of Willys-Overland Board Cites
Reduced National Incomes as Basic Reason for
Lower Car Costs to Consumer.
"Now that the election is over and the will of the majority
expressed, the sponer we all get down to solid fundamentals,
place our shoulders to the wheel and fully recognize that we
are in a new era, the sooner we. Will work our way out of
the depression and back to business health," John N. Willys,
Chairman of- the Board of the Willys-Overland Company
declared in an interview at Toledo, Ohio. Mr. Willys said:
"The voting public indicated that they want a new deal. If that is true
in our national political life, it is also true in our every-day life. We are
In unusual times. New precedents are being established. We have to
scrap our old ideas and methods and start again from scratch. And this
applies to all forms of industry and business. It is one of the chief fundamentals of this new era and the sooner we recognize it the sooner will we
find our economic life improving.
"Take the automobile business-the business I am most closely interested
Despite the fact that commodities,
in-as an example. What do we find?
under
farm products, incomes, &c., have been reduced approximately 50%
Nov. 19 1932
the levels of 1929, the prices of automobiles in the class selling under 1750
disclose a reduction of only a fraction more than 4% in the past three
years. This makes it evident that the price to the consumer is still out of
range with current incomes.
"The basis of car prices for 1933 should take into consideration the
reduced income of the masses. This price does not mean only the lowest
first cost, but the lowest operating and maintenance costs in the history of
the automobile. The public in this new era, living under an entirely new
order of things, with incomes and earning power materially lower than at
any time in the past decade, must be provided with transportation that is
within its means to purchase. With present prices of motor cars still out
of line with purchasing power, I for one feel that car prices must come
down even further. The automobile manufacturer, particularly the one
who produces in the lowest priced fields, can only survive on volume and
unless 1933 car prices are more on a parity with incomes, there would be
little hope of this great industry taking a leading part in the march back to
healthier business life.
"In the matter of economy of operation, the car buyer under existing
conditions and lowered incomes, has the right to expect considerably more
miles to the gallon of fuel than in the current automobile. Where it has
cost the owner approximately seven cents a mile to operate and maintain
his car, he is not unreasonable to expect that this cost be reduced to four
cents a mile-or five cents at the most. This would mean that he should
be provided with a car that will give anywhere from 25 to 30 miles to the
gallon-that when he fills his fuel tank on Sunday, and driving the normal
miles that the average owner drives, this tank full of gas should last him a
week."
When queried as to the 1933 plans of Willys-Overland,
Mr. Willys stated that although the program is well advanced, he would have nothing definite to give out until
some time in December. He did hint, however, that the
company had completed the groundwork for making 1933
one of the most successful since the formation of the company
more than 25 years ago.
Prague Plans to Cut Imports of U. S. Tires Czechoslovak Newspapers Attack Us Because of New Tariffs.
Under date of Nov. 2 a wireless message from Prague to
the New York "Times" said:
Czechoslovak newspapers are filled with violent attacks on the United
States owing to the increased duties on rubber shoes, which are a product
of the factories at Bata Zlin. An American investigating committee is
reported en route to Min to settle the question of alleged dumping by the
Bata concern.
Minister of Commerce Matousek to-day confirmed the report that the
government was preparing to retaliate by restricting the importation of
American automobiles and tires into Czechoslovakia. This country's annual exports of rubber shoes to the United States total $300.000, while
more than $2,000,000 worth of automobile tires are imported from the
United States.
The newspaper Lidove Noviny, while protesting against the American
action, admits the Czechoslovak government is not entirely blameless in
that by severe "restrictions" it has cut off the entry of American automobiles and films.
Consumption of Crude Rubber Shows a Further
Decline in October-Imports Continue to Increase
Over Preceding Month,.but Are Still Below Those
of a Year Ago.
Consumption of crude rubber by manufacturers in the
United States for the month of October amounted to 21,018
long tons. This compares with 22,491 long tons for September 1932, and represents a decrease of 6.5% according to
statistics released by the Tubber Manufacturers Association.
Imports of crude rubber for the month of October were
35,473 long tons, an increase of 20.2% above 'September
1932, but were 14.3% below October a year ago.
The Association estimates total domestic stocks of crude
rubber on hand Oct. 11 1932 at 373,823 long tons, which
compares with Sept. 30 stocks of 365,789. October stocks
show an increase of 2.2% as compared with September of
this year, and were 36.7% above the stocks of Oct. 31 1931.
Crude rubber afloat for the United States ports on Oct. 31
1932 totaled 40,176 long tons, as compared with 46,188
long tons afloat on Sept. 30 1932, and 51,320 long tons afloat
on Oct. 31 1931.
Increase in Shipments of Pneumatic Casings and Inner
Tubes Continued During September-Production
Again Falls Off-Inventories Lower.
Shipments of pneumatic casings for the month of September amounted to 3,082,285 casings, an increase of 16.1%
over August this year, but were 2.16% below September
1931, according to statistics estimated to represent 100% of
the industry, as released by the Rubber Manufacturers
Association, Inc. Production of pneumatic caeings for September 1932 totaled 2,538,720 casings, a decrease of 17.8%
under August this year and 20% below September 1931.
Pneumatic casings in the hands of manufacturers Sept. 30
1932 amounted to 6,096,098 units, a decrease of 8.5% below
Aug. 31 stocks and were 25.3% under Sept. 30 stocks a year
ago. The actual figures are as follows:
Volume 135
Financial Chronicle
PRODUCTION AND SHIPMENTS OF PNEUMATIC CASINGS.
[From figures estimated to represent 100% of the industry.]
September 1932
August 1932
September 1931
Shipments.
Produaion.
3,082,285
2,654,863
3,931,860
2,538,720
3,089,201
3,171,969
Inventory.
6,096,098
6,658,974
8,158,453
The Association, in its bulletin dated Nov. 11 1932, gave
the following data:
PRODUCTION AND SHIPMENTS OF PNEUMATIC CASINGS AND
INNER
TUBES (BY MONTHS).
[From figures estimated to represent 80% of the Industry.]
Pneumatic Casings.
Incentory.
1932fanuarY
FebruarY
March
April
May
Tune
July
august
'September
Oatput.
6,329.417
7,337,796
7,902,258
7,876,656
7,502,953
a3,999,260
4.962.285
5.327,179
4,876,878
Total
Inner Tubes.
Shipmeras.
Inventory.
2,769,988 2.602,469 6,175.055
3,098,976 2,042,789 7,007,567
2.936.872 2,363,323 7,558,177
2,813,489 2.958,014 7,552.674
3,056.050 3,406,493 7,130,625
4,514,663 z8,051,932 z4,139,358
2,893,463 1,923.276 4,779,814
2,471.361 2,123,890 4.901.884
2,030,976 2,465,828 4.602,160
26.583,838 27,937,513
1931January
February
March
April
May
June
July
August
September_October
November
December
7,165,846
7,628.520
8,011,592
8.025,135
8.249,856
8,357,768
7,935,585
7,117.037
6,526,762
6,640,062
6,335,227
6,219,776
Total
OutMig.
2,939,702
3,188,274
3,730,081
3,955,491
4.543,003
4,537,970
3,941,187
3,124,746
2,537,575
2.379,004
2,000.630
2,114,577
2,995,479
2,721.347
3.297.225
3,945,525
4.332,137
4,457.509
4,369,526
3,967,987
3.145,488
2,281,322
2,309,971
2,225,036
3,588,862
3,644,606
3,890.981
4.518,034
4,573,895
4,097,808
3,193.057
3,332,489
2.692.355
2.865,933
2.123,089
2,251,269
2,718,508 2,803,369
3,056,988 2.182,405
2,801,602 2,148,899
2,579,768 2.708,186
2,727.462 3.093.593
4,222,816 x7.215,371
2,349,761 1,727,750
2,198,560 2,002,347
2,081,146 2.478,234
24,736,611 26,360,154
7,551,503
9.936.773
8,379,974
8,330,155
8,438,799
8,403,401
7,671,801
7,019.217
6,476,191
6,658,913
6,495,708
6,337,570
38.992.220 40,048,552
1930January
9,539,353
February
9.928,238
March
10,010.173
April
10,461,208
May
10,745,389
June
10,621,634
July
9,449,318
August
8,678,164
September-- 7,849,411
October
7,842,150
November
7.765,786
December
7.202,750
Ship'WO.
2,898,405
3,132.770
3,559,644
3,693,222
4,329,731
4,286.467
3,964,174
3,548,335
2,759,431
2,461,578
1,954.915
2,077,701
3,249,734
2,720,135
3,031,279
3,708,949
4,224,594
4.317.543
4,664,964
4,240,403
3.320,103
2,250,494
2.075,716
2.213.261
38,666.376 40.017.175
3,525,404 10.163,267
3,358,104 10,428,968
3,773.865 10,543,026
4,071,822 11,027.711
4,173,177 11,081,523
4.234.994 10,889,444
4,357,836 9,325,602
4,139,900 8,589.304
3,524,141 8,052,121
2,799,440 8.413,578
2.267.465 8,250,432
2.688,960 7.999,477
3,685.410
3.707.066
3.952,921
4,408.030
4,428,387
3,959.972
3,151.107
3,836.880
3,053.424
3,161,048
2,143.609
2,448,195
3,885,717
3,469,919
3,781,789
3,878.697
4,058,847
4,212.082
4,684,182
4.609,856
3,632,458
2,777.965
2.230,659
2,729,973
Total
40.772,378 42,913,108
41,936,029 43.952,139
z Revh3ed.
CONSUMPTION OF COTTON FABRICS
AND CRUDE RUBBER IN THE
PRODUCTION OF CASINGS, TUBES, SOLIDS
AND CUSHION TIRES
AND OUTPUT OF PASSENGER CARS AND
TRUCKS.
Consumption.
Cotton
Fabrics
(80%)
Crude
Rubber
(80%)
Production.
Gasoline
(100%)
Passenger
Cars
Truats
(100%) (100%)
Calendar years:
(Pounds)
(Pounds)
(Gallons)
1926
165.963,182 518,043,062 10,708,068,000 3,929,535
1927
177.979.818 515,994.728 12,512.976,000 3,093.428 535.006
1928
222,243.398 600.413.401 13,633,452.000 4.024,590 486.952
1929
208.824,653 598.994,708 14,748.552.000 4,811,107 576.540
1930
158,812.462 476.755.707 16.200.894.000 2.939.79 810,549
1931
151,143,715 456.615.428 16.941.750.000 2.036,567 569.271
435.784
First 9 months of:
1931
125,589,362 377,317,358 12,900,510.000 1,829,090
1932
106,816.120 341,950,101 11,853,324,000 1,011,830 367,600
198,749
Month of Sept. 1932
8,417.417 27,577,826 1,413,720 000
66.489 19,994
a These figures include Canadian
production and cars assembled abroad the
Parts of which were manufactured in the
United States.
WHOLESALE PRICES OF COMMODITIES.
Commodity.
Average Prices.
Sept.
1932.
All commodities
Crude robber (cents per Pound)
Smoked sheets (cents per pound)_
.039
Latex crepe (cents per pound)
.045
Tires (dollars per unit)
Balloon (dollars per unit)
9.14
Cord (dollars per unit)
4.84
Truck and bus (dollars per Unit).
26.85
Tubes, inner (dollars per unit)
2.20
Sept.
Aug.
1932.
1931.
.038
.045
.051
.054
8.74
4.57
25.46
1.96
9.59
5.28
31.13
2.43
Index Numbers.
1926=100.
Sept. Aug. Sept.
1932. 1931. 1931.
65.3
8.2
8.1
9.0
42.7
41.5
50.9
43.9
39.1
65.2
7.9
7.8
9.0
40.1
39.7
48.1
41.6
34.7
71.2
10.6
10.5
10.8
46.0
43.6
55.5
50.8
43.1
Review of Building Situation in Illinois During
October
and First Ten Months of 1932 by Illinois
Department of Labor.
"Building reports for October 1932, from 45
Illinois cities
show relatively small declines from the figures for
September
1932, amounting to 3.7% in the number of buildin
gs authorized by permits and .2 of 1% in total estimated
expenditure," according to Howard B. Myers, Chief of the
Division
of Statistics and Research of the Illinois Depart
ment of
Labor, in reviewing the building situation in that
State.
According to Mr. Myers, "the total estimated
expenditure
October
for
1932,for all reporting cities, however, was 62.3%
below the total estimated expenditure reported for October
1931, by the same 45 cities." Under date of November
12
Mr. Myers also said:
The loss in total estimated expenditure for the State during
October was
attributable to declines of 22.8% in the total estimated
expenditure for
Chicago projects. and 12.6% for the 23 reporting cities outside
the metropolitan area. In contrast to these declines the total estimated
expenditure
reported by the group of 21 suburban cities increased 74.7%.
3427
In October, two building classifications, new
residential building and new
non-residential building, showed increases over the
preceding month. The
Increase in the former classification was 5.5% while
that for the latter was
9.0%. The increase in total estimated expenditure
for new residential
building was the third consecutive monthly increase
reported. The total
estimated expenditure for additions, alterations,
repairs and installations
reported for October was 10.8% below the aggregate
for this classification
In September 1932.
In Chicago the decline in total estimated expenditu
re for October was
caused by declines of 42.7% in proposed expenditure for
residential building, and 44.4% in the proposed expenditure for
additions, alterations.
repairs and installations. New non-residential building,
however, increased
56.5%. In October the index of estimated expendit
ure for total building
in Chicago was 1.9; for new residential building in
Chicago, 0.8; for new
non-residential building, 1.5; and for additions, alteratio
ns, repairs and
installations. 15.8. (Monthly average 192100*.) The
October index of
total estimated expenditure for Chicago building is the lowest
of any monthly
index in the series which begins with January 1921, while
those for new
residential building and for additions, alterations and
repairs are the lowest
in each of these two series which begin with January 1926.
In October 1932. the 21 suburban cities reported a gain
of 120.3% in
the estimated expenditure for new residential building, and
an increase of
72.7% in additions, alterations, repairs and installations.
A decrease of
14.0% in the estimated expenditure for new non-residential building
was
reported by these cities. Eleven cities in this group reported
gains in October 1932, over the preceding month and five-Blue Island,
Evanston,
GlenCoe, Highland Park and River Forest-reported gains over
October
1931. The total estimated expenditure for Evanston in October
1932, was
$191,950, of which $94.000 was to be expended for a new sorority
house
at Northwestern University. In this same city 23 addition,
alteration,
repair and installation projects were authorized at an estimated
cost of
880,000.
For the group of 23 reporting cities outside the metropolitan area
the
estimated expenditure for new residential building in October
declined
36.2%, and that for new non-residential building declined 7.5%
from the
corresponding figures for September 1932. The estimated expendit
ure for
'additions, alterations, repairs and installations increased
1.5% over September 1932. Eight cities in this group reported increases in
October 1932,
over the preceding month and three-Bloomington. Canton
and Kankakee
-reported increases over October 1931. Kankakee reported
the proposed
erection of a factory building estimated to cost 855.000.
Of the total estimated expenditure reported in October
1932, by the 45
cities of the State, 30.4% was to be expended for Chicago
building projects,
33.0% for projects in the suburban reporting cities, and 36.6%
in the reporting cities outside the metropolitan area. Of the total estimated
expenditure authorized in October by the 45 reporting cities,
29.9% was to
be expended for new residential building. 33.2% for new non-resid
ential
building, and 36.9% for additions, alterations, repairs and installati
ons.
For the first ten months of 1932, the total estimated expenditu
re for all
the reporting cities of the State was $12,370,530. This represent
s a decline
of 83.1% from the total authorized during the first ten months
of 1931.
For Chicago, the total for the first ten months of 1932
was 87.7% below
the total for the same period in 1931. For the reporting suburban
cities
the cumulative total declined 80.2%, and for the reporting
cities outside
the metropolitan area the decline was 69.2% for the
same period. Two
reporting cities of the State-Murphysboro and Rockford
-showed larger
total estimated expenditure for building projects for the
first ten months
of 1932 than for the same period of 1931.
TABLE 1.-TOTAL NUMBER AND ESTIMATED COST
OF BUILDINGS
BASED ON PERMITS ISSUED IN 45 ILLINOIS CITIES
IN OCTOBER
1932, BY CITY.
City.
October 1932.
September 1932.
October 1931.
No.of Estimated
Bldgs.
Cost.
No.of Estimated
Stags.
Cost.
No.of Estimated
Bldgs.
Cost.
'otal all cities
931
$
1,111,191
961
$
1,113.048 1,520
$
2,949,905
letropolitan area
542
704,087
522
647,244
861
2,059,238
:Mesa°
351
337,945
348
437,625
588
1,315,867
letropolitan area, excluding Chicago _ _ _
191
366.142
174
209,619
273
743,371
13
14
16
35
4
4
7
3
14
1
4
13
3
4
18
4
2
3
4
14
11
7,225
16,865
10,245
191,950
375
8,500
1,770
400
21,494
100
5,250
11,918
1,250
3,200
22,985
5.100
30,000
1,150
1,525
18,200
6.640
15
22
6
24
16
1
7
4
15
1
2
8
__
5
16
9
6
2
2
6
7
38,550
8,022
4,550
55,750
2,670
50
6,300
2,550
17,325
1,500
600
14,818
20
25
14
24
11
5
14
6
16
6
11
14
10
14
28
16
5
4
9
.12
9
16,190
8,515
19,300
142,250
94,600
3,850
47,900
1,225
19,774
4,400
9,530
91,533
9,434
29,100
69,970
22,860
1,840
6,000
14,800
122,175
8,125
Berwyn
Blue Island
Cicero
Evanston
Forest Park
Glencoe
Glen Ellyn
Harvey
Highland Park
Kenilworth
La Grange
Lake Forest
Lombard
Maywood
Oak Park
Park Ridge
River Forest
West Chicago
Wheaton
Wilmette
Winnetka
Total outside metropolitan area
1,015
29,410
11,285
1,144
1,680
7,500
2,475
2.425
389
407.104
439
465,804
659
890,667
Alton
13
4,480
14
13,027
34
16,033
Aurora
12
2,380
23
9,582
40
31,219
Batavia
1
100
3
4,200
Bloomington
4
54,000
2
8,000
2
12,000
Canton
1
3.000
3
670
4
1,050
Centralia
1
5,000
2
9,000
Danville
12,473
7
6
11,758
14
64,650
Decatur
16
2,645
21
14,762
18
49,700
East St. Louis
40
27,075
43
32,835
35,18.5
45
Elgin
36
6,401
40
14,718
50
181,000
Freeport
7
2,400
7
7,585
27,025
13
Granite City
1
3.000
Joliet
9
21,400
10
14,800
45,708
32
Kankakee
6
61,580
1
167
4.018
6
Moline
61
18,677
54
25,171
40,217
62
Murphysboro
Ottawa
4
10,400
Peoria
37
73,825
it)
84,600
158,930
88
Quincy
18
1,618
17
18,040
9.005
17
Rockford
18
17.425
20
12,115
25,370
46
Rock Island
48
20,621
25,173
57
9,091
51
Springfield
49
64.694
76
45,318
86,007
105
Waukegan
7
12.410
147.500
42,742
4
22
•Based on the
monthly average for 1929, as 100. See Aug. 1932 issue of "The
Labor Bulletin," page 36, for indexes
of estimated expenditu
Chicago building,
by building classification, Jan, 1926, through July 1932. re for
NOV. 19 1932
Financial Chronicle
TABLE 2.-TOTAL NUMBER AND ESTIMATED COST OF BUILDINGS
BASED ON PERMITS ISSUED IN 45 ILLINOIS CITIES FROM JANUARY
THROUGH OCTOBER 1932, BY CITY.
Jan.-Oct. 1932.
City.
No. of
Bldps.
8,984
Jan.-Oct. 1931.
No. of
Bldos.
Estimated
Cost.
a
$
12,370,530 14,799
73,048,970
Metropolitan area
5,018
8,250.581
8,583
59,662.581
Chicago
3,610
5,774,518
6,063
47,134,604
Metropolitan area excluding Chicago
1,408
2,476,063
2,520
12,527,977
...10,P.MW.OWWW .WoPNOQW.P.
SOWC,WW.000..4=001,2,1WNta.WOW
Total all cities
Estimated
Cost.
95,429
74,627
64,275
720,950
20.545
90,921
68,575
84,114
211.294
3,790
16,575
177,941
.11.185
170,858
242,945
38,240
84,904
10,380
104,525
51,255
133.035
222
240
135
312
112
42
81
86
151
26
77
146
62
163
210
117
43
25
45
136
89
666,969
217,889
1,054,028
3,130,250
240.485
171,390
214,814
210,674
429.430
102,650
118,255
1,010,041
51,463
537,264
804.258
473,505
662,948
35,490
144,400
909,344
1.342.430
3,966
4,119,949
6,216
13,386,389
190
202
9
32
32
4
84
149
374
259
75
3
101
32
471
4
19
480
132
222
466
569
77
174,261
122,557
12.800
285,000
25,895
29,000
113,599
173,541
237,407
148,293
92,561
600
128,900
90.528
177,256
12,000
31,800
550,330
49,698
739,405
156,344
497,989
270,185
315
443
24
57
43
9
120
222
470
419
110
15
305
53
610
3
67
708
145
524
565
774
206
462,417
1,080,363
38.410
701.700
34,770
36,000
236,916
731,955
1,015,696
569,681
248,523
66,150
850,497
96,698
487,530
7,500
503,100
1.492,232
1,347,883
595,352
440,151
1,701,066
641.810
Berwyn
Blue Island
Cicero
Evanston
Forest Park
Glencoe
Glen Ellyn
Harvey
Highland Park
Kenilworth
La Grange
Lake Forest
Lombard
Maywood
Oak Park
Park Ridge
River Forest
West Chicago
Wheaton
Wilmette
Winnetka
Total outside metropolitan area
Alton
Aurora
Batavia
Bloomington
Canton
Centralia
Danville
Decatur
East St. Louis
Elgin
Freeport
Granite City
Joliet
Kankakee
Moline
Murphysboro
Ottawa
Peoria
Quincy
Rockford
Rock Island
Springfield
Waukegan
Business and Agricultural Conditions in Minneapolis
Federal Reserve District-October Volume of Business Smaller than in October a Year Ago.
The Federal Reserve Bank of Minneapolis, in its preliminary summary of agricultural and business conditions
issued Nov. 17, stated that "despite increased grain marketing, the volume of business in the Ninth (Minneapolis)
Federal Reserve District during October was smaller than
in October last year." The Bank also reported as follows:
The bank debits index declined considerably during the month and was
much lower than for the same month last year. The country check clearings
index also declined during October, but was on the same level as in October
a year ago. Total freight carloadings were nearly 20% smaller in October
1932 than in October 1931, although there were small increases in coal,
coke and grain and grain products. Total marketings of grain were much
greater than a year ago, when extremely small crops were harvested in this
district, but shipments of flour and other manufactured grain products
showed a decrease which practically offset the increase in grain marketings.
earloadings of livestock were much smaller than in October of last year,
when hogs, sheep and calves were received at South St. Paul in recordbreaking or record-equaling quantities. Electric power consumption was
smaller in October than in the same month a year ago.
The estimated cash value of major farm products marketed in October
was smaller than the 1932 high point established last month, but with that
exception was higher than any month since November last year. The
October estimate was 29% smaller than the estimate for October last year,
more than half the decrease being on account of the large reduction in the
value of hogs marketed. All grain prices and all important livestock
prices as well as prices of butter, milk, eggs, poultry and potatoes were
lower than in October 1931.
ESTIMATED VALUE OF IMPORTANT FARM PRODUCTS MARKETED
IN THE NINTH FEDERAL RESERVE DISTRICT.
% Oct. 1932
Oct. 1931. 0/ Oct. 1931.
Oct. 1932.
135
35,630,000
$7,687,000
Bread wheat
102
1,410,000
1,436,000
Durum wheat
103
153,000
157,000
Rye
91
1,983,000
1,801,000
Flax
74
4,206.000
3,102,000
Potatoes
63
11,220,000
7,092,000
Dairy products
42
12,531,000
5,280,000
Hogs
-1
7'
7
$37,133,000
$26,455,000
Total of seven Items
The United States Department of Agriculture Nov. 1 preliminary estimate of corn production in the four complete States in this district was
slightly higher than the Oct. 1 forecast, a 10 million bushel increase for
Minnesota more than offsetting decreases in the other three States. The
preliminary estimate of potato production in each of the four States was
reduced, with the exception of North Dakota, which was unchanged. The
four State preliminary estimate of flaxseed production was reduced 4%
from the Oct. 1 forecast as a result of acreage abandonment in North
Dakota and South Dakota. The 1932 preliminary estimates, however, are
larger than the final 1931 estimates for each of the three crops, corn, potatoes
and flaxseed.
Lumber Production and New Business Show Declines.
In accord with the usual seasonal decline, lumber production during the week ended Nov. 12 was less than during any
week of the preceding four months and was lowest except for
the Fourth of July week since early March, according to
telegraphic reports to the National Lumber Manufacturers
Association froni regional associations covering the operations
of 702 leading softwood and hardwood mills. New business
was lowest since July and shipments showed a decided drop
from the record of recent weeks. The Association further
reports as follows:
Compared with the corresponding week of last year,softwood production
was down 15%; hardwood production 55%;softwood orders were 24% less
than last year; hardwood orders were 17% below. The hardwood cut was
less than in recent weeks and orders were heavier than those of the preceding
three weeks.
During the week ended Nov. 12, production of all reporting mills was
10,5,702,000 feet or 21% of capacity. New bdsiness was 24% of capacity,
the same as during the previous week.
In comparison with last year all regions showed considerable decline in
new business, the Western Pine mills making the best record, only 1%
below. For the first time since early July orders as reported by the Southern
Pine mills were less than production, being 17% below. West Coast orders
were less than 1% below production. Western Pine orders exceeded cut
by 45%. Northern pine mills continued to show large excess of orders over
production. Mills in the Northern Hemlock and Hardwood region have
been recording very little new business and scarcely any production.
Lumber orders reported for the week ended Nov. 12 1932, by 457 softwood mills totaled 104,062,000 feet, or 7% above the production of the
)
same mills. Shipments as reported for the same week were 104,445,001
feet, or 7% above production. Production was 97,579,000 feet.
feet,
Reports from 259 hardwood mills give new business as 16,074.000
or 98% above production. Shipments as reported for the same week were
15,526.000 feet, or 91% above production. Production was 8,123,000 feet.
Unfilled Orders.
Reports from 395 softwood mills give unfilled orders of 344,350,000 feet,
on Nov. 12 1932, or the equivalent of nine days' production. The 368
Identical softwood mills report unfilled orders as 338,160,000 feet on Nov.
12 1932, or the equivalent of nine days' average production, as compared
with 412,400,000 feet, or the equivalent of 11 days' average production, on
similar date a year ago.
Last week's production of 421 identical softwood mills was 94.416,000
feet, and a year ago it was 110,509.000 feet; shipments were respectively
102,249.000 feet and 125,366,000; and orders received 101,755,000 feet and
133,558,000. In the case of hardwoods, 198 identical mills reported production last week and a year ago 6.098,000 feet and 13,511,000; shipments
13,112,000 feet and 18,459,000; and orders 14,185.000 feet and 17,142,000
feet.
West Coast Movement.
The West Coast Lumbermen's Association wired from Seattle the following new business, shipments and unfilled orders for 217 mills reporting for
the week ended Nov. 12
SHIPMENTS.
UNSHIPPED ORDERS.
NEW BUSINESS.
Feet.
Feet.
Feet.
Domestic cargo
Coastwise and
Domestic cargo
delivery ____ 17,385,000 delivery _--- 83.602.000 intercoastal _ 23,973,000
9,033,000
65,402,000 Export
13,631,000 Foreign
Export _____
14,608,000
15,059,000 Rail
35,065,000 Rail
Rail
4,851,000
Local
4,851,000
1.ocal
52,485,000
50,926,000? Total
184,069,000 Total
Total
Production for the week was 51.023,000 feet. 'reduction was 20% and
new business 20% of capacity, compared with 23% and 21% for the
previous week.
Southern Pine.
The Southern Pine Association reported from New Orleans that for 114
mills reporting, shipments were 4% above production, and orders 17%
below production and 20% below shipments. New business taken during
the week amounted to 19,756,000 feet. (previous week 26,204,000 at 120
mills); shipments 24,709.000 feet, (previous week 30.042,000); and production 23,834,000 feet, (previous week 23,580.000). Production was
36% and orders 30% of capacity, compared with 35% and 39% for the
previous week. Orders on hand at the end of the week at 105 mills were
56,497,000 feet. The 105 identical mills reported a decrease in production
of 9%, and in new business a decrease of 31%, as compared with the same
week a year ago.
IVestern Pine,
The Western Pine Association reported from l'ortland. Ore., that for
105 mills reporting, shipments were 17% above production, and orders
45% above production and 24% above shipments. New business taken
during the week amounted to 31,646.000 feet, (preview; week 29,207,000
at 113 mills); shipments 25.544,000 feet, (previous week 31,889,000), and
Production 21.879,000 feet, (previous week 25,526,000). Production was
18% and orders 26% of capacity, compared with 19% and 21% for the
previous week. Orders on hand at the end of the week at 105 mills were
122,430,000 feet. The 95 Identical mills reported a decrease in production
of 9%, and in new business a decrease of 1%, as compared with the same
week a year ago.
Northern Pine.
The Northern Pine Manufacturers of Minneapolis, Minn., reported
production from seven mills as 657.000 feet, shipments 1,236,000 feet,
and new business 1,495.000 feet. The same number of mills reported no
production last year and new business this year 19% less than for the
same week last year.
Northern Hemlock.
The Northern Hemlock and Hardwood Manufacturers Association, of
Oshkosh, Wis., reported production from 14 mills as 186.000 feet, shipments 491,000 and orders 239.000 feet. Orders were 4% of capacity compared with 6% the previous week. The 13 identical mills reported a decline
of 75% in production and of 80% in new business, compared with the same
week a year ago.
Hardwood Reports.
The Hardwood Manufacturers Institute, of Memphis, Tenn., reported
new
production from 245 mills as 8,123,000 feet, shipments 14,555,000 and
business 15,402,000. Production was 17% and orders 32% of capacity,
mills
identical
185
The
previous
week.
the
compared with 18% and 30%
same
reported production 54% less and new business 14% lees than for the
week last year.
of
Association,
The Northern Hemlock and Hardwood Manufacturers
Oshkosh. Wis., reported no production from 14 mills, shipments 971,000
with
feet and orders 672,000 feet. Orders were 14% of capacity, compared
13% the previous week. The 13 identical mills reported a decrease of 55%
In orders, compared with the same week last year.
Volume 135
Financial Chronicle
Japan to Set Up Rice Monopoly-Ministry to Support
Market from Government Funds-Minimum Price
20.58 Yen perKoku.
The following, from Tokio, is from the "Wall Street Journal" of Nov. 11:
With a bill calling for establishment of a rice monopoly being prepared
by the Ministry of Agriculture and Forestry for submission to the Diet in
January, the Ministry has laid down its policy for the current crop. It will
support quotations with Government money.
In the August-September session of the Imperial Diet the old regulations
for fixing the price at which the Government should buy rice were jettisoned. Under them the officials prepared figures showing cost of production
and cost of living, and set the price with reference to both, so that rice
should not get out of line with general living standards and the prices of
competing foods. The Seiyukai, the majority party, is doing its best to
discredit the national cabinet which replaced it last May.
' It therefore is championing the cause of every group which wants aid
from the public purse. It has been making an especially strong play for
the support of the farms. Following this line, the party placed a rider on
a Government relief bill which rescinded the old law providing for figuring
in the cost of living as well as the mat of rice production. The Government was told in no uncertain tenris that the party wanted it to buy rice
with public money until the price got. high enough to suit the farmers.
Consequently the announcement of the first minimum rice price has
been greeted with much criticism. The Imperial Agricultural Society had
announced that, in view of its researches into the cost of production, the
minimum official price could not be below 23 yen per koku (3.12 bushels
of 60 pounds). The price set was 20.58 yen. On Oct. 6, when it was stated,
spot rice was selling for 21.07 yen.
The Rice Bureau of the Ministry, however, said it would support the
market for new rice against the imports of Korean rice which are expected
shortly, even though prices may not recede below the minimum level.
For its operations the Rice Bureau has 70,000,000 yen left over from
previous authorizations, and 130,000,000 yen voted at the recent extraordinary session of the Diet. It issues 60-day rice notes which are supposed to
he self-liquidating in order to finance its purchases. Of this total it may
use pp to 30,000,000 yen to buy Korean rice.
Y2,000,000 Loaned Rice Growers to Aid Price IncreaseAdvance to Prevent Dumping of Crop on Low
Market.
From the New Orleans "Times-Picayune" we take the
following from Lake Charles, La., Oct. 24:
Rice growers of Louisiana, Arkansas and Texas will be aided in holding
their crop for better prices through a $2,000,000 loan advanced to the
American Rice Growers' Co-operative Association by the Federal Intermediate Credit Bank at New Orleans, Homer L. Brinkley, General Manager
of the Co-operative, announced here to-day.
He said the money would he re-loaned to member growers on rice now
held in warehouses, enabling them to market more advantageously and
preventing a dumping of the crop on the present low market.
Brinkley asserted the loans would prevent forced sales, which the farmers
might otherwise have to make to meet pressing obligations. He expressed
the opinion the yield this season would be under previous estimates and that
prevention of dumping would combine to bring an improveinent in prices.
Estimates of the 1932 Crops of the Dominion of Canada.
The Dominion Bureau of Statistics at Ottawa, Canada
issued on November 10 its report giving the provisional esti•
mate.)of grain and other crops in Canada for the current year.
The report in part follows:
The report is based upon the returns of our regular corps of crop correspondents. including practical farmers throughout Canada, bank managers
and railway and elevator agents in the Prairie Provinces and the Alberta
Provincial Police. A special return was also received for this report from
a large list of selected agriculturists, in addition to those already co-operating as regular crop correspondents, and from rural postmasters
in the
Prairie Provinces.
Yields of Principal Grain Crops.
The total yields of the principal grain crops are estimated provisionally
In bushels as follows, with the figures for 1931 within brackets: Wheat
431,200,000 (304,144,000); oats 394,876.000 (328,278,000);
barley 82.981,000 (67.382,600); rye 9.937.000 (5,322.000); peas 1,505.800
(1.369.400);
beans 1,059.600 (1.304,100); buckwheat 8,281.000 (6,916,700); mixed grains
39,878,000 (39.431,000); flaxseed 2,533.700 (2.565.000); corn for husking
5,231,000 (5.449,000). The average yields per acre are, in bushels as
follows, with the averages for 1931 within brackets: Wheat 15.9
(11.6): oats
30.0 (25.5); barley 22.2 (17.9): rye 12.9 (6.8); peas 18.1 (16.6); beans 15.1
(15.9); buckwheat 23.0 (20.6); mixed grains 33.3 (33.2): flaxseed
5.6 (4.1);
corn for husking 38.2 (41.4).
Production of Late Crops.
The 1932 production of peas, beans, buckwheat, mixed grains and corn
for husking are estimated for the first time and show very little change
from the 1931 figures. Buckwheat is an exception, however, and the production of this grain is 1% million bushels higher than in 1931 due to greater
acreage and improved yields per acre.
Grain Yields of the Prairie Provinces.
For the three Prairie Provinces, the provisional estimate of the yields of
creme is, in bushels, as follows, with the
principal
grain
the five
figures
for 1931 within brackets: Wheat 411.000.000 (284.000,000); oats 247,300,000(163.700,000); barley 65,569,000 (50,540,000): rye 8,763.000
(4,157,000); flaxseed 2,453.700 (2,470,000). By provinces, the yields are as follows: Manitoba-wheat 45.000,000 (27.000.000): oats 38.500.000 (25.500,000); barley 22,500,000 (15,400,000); rye 557.000 (661,000); flaxseed
355.000 (450,000). Saskatchewan-wheat 202,000,000 (121,000,000); oats
108,200,000 (67,700.000); barley 23.399.000 (14.340,000): rye 5,335.0130
(2396,000); flaxseed 1,982,000 (1,820,000). Alberta-wheat 164.000,000
(136,000,000): oats 100.600,000 (90,500,000): barley 19,670,000 (20,800,000); rye 2,871,000 (1,100,000); flaxseed 116.700 (200,000).
Wheat Production in the Prairie Provinces.
The estimate of wheat production in the Prairie Provinces is now placed
at 411 million bushels compared with the preliminary estimate of 446
million bushels. A reduction of 2 million bushels is shown in Manitoba,
25 million in Saskatchewan and 8 million in Alberta. The largest relative
3429
reduction (11%) is in the main wheat-growing province of Saskatchewan
and the least (4%) in Manitoba.
The November estimate is equally as representative (statistically) as
that of September, the compilations resulting from about 7,000 returned
schedules in each case. The acreages used for the two estimates are identical, being based on the June survey schedules returned by 46,500 western
farmers.
The obvious explanation of the reduction lies in the impossibility of estimating the effects of drouth and other depreciating influences on yeild
until actual threashing operations were in progress. The western crop was
encouraged in stooling anti leaf growth by heavy June rains. When drouth
and insects later began to cause damage, the effects on the development
and weight of the kernel were obscured by the heavy growth of straw and
the damage was underestimated when the first yield reports were filed at
the end of August. Threshing has proceeded at a very satisfactory rate
since that time, although rain and snow in the north and west caused some
concern. The present figures are based largely on threshing returns.
The heavy marketings up to date may suggest that there is undue pessimism among our correspondents regarding yields. In the period from
August 1 to October 28, the deliveries at country elevators and platform
loadings were approximately 26.2 million bushels in Manitoba, 119.1 million
In Saskatchewan, and 69.7 million in Alberta, making a total of 215 million
bushels. At the present date, deliveries have exceeded 230 million bushels.
On a crop estimated at 411 million bushels, total commercial marketings
should be in the neighborhood of 355 million bushels. Up to the present,
64.8% of this amount has been delivered, which is a considerably higher
proportion than is usual at this period of the year.
In the province of Manitoba, the most important reductions between
the two estimates were recorded in the southern and central regions. In
Saskatchewan, the largest declines in yield per acre were shown in the north
(Crop Districts 8 and 9). The eastern and north-central districts showed
lesser declines, while the reductions in the south-center and south-west
(Crop Districts 3 and 4) were the least severe. The downward trend in
yeilds per acre was fairly general over the province of Alberta but the
greatest declines were in the extreme south (Census Districts 1 and 2) and
in the north-central and northern regions. Census Districts 3, 4. and 5 in
the south-centre showed minor declines while Census District 6 showed an
appreciable improvement.
Production of Other Grains in the Prairie Provinces.
The production estimates for oats, barley, rye and flax also show appreciable reductions compared with the preliminary estimates of September
10. The production of oats in the three provinces is now placed at 247.300,000 bushels-a 10% reduction from the September estimate of 274.700,000 bushels. Barley shows a smaller reduction of 7%-from 70,400,000
bushels in September to the present estimate of 65.569,000 bushels. Rye
production is now estimated at 8,763,000 bushels, a significant decrease of
24% from the September figure of. 11,586,000 bushels. Flax production is
also placed considerably lower, the new estimate of 2.453.700 bushels being
20% below the production of 3.052.000 bushels forecasted in September.
I. PROVISIONAL ESTIMATE OF THE AREA AND YIELD OF FIELD
CROPS FOR 1932, AS COMPARED WITH 1931.
Field Crops-
1931.
1932.
1931.
1932.
1931.
1932.
Bush.
Bush.
CanadaAcres.
Acres. per Acre. per Acre.
Bush.
Bush.
Fall wheat
537,658
546,000 28.8
15,475,000 15.463.000
28.3
Spring wheat_ _.25,576,992 26,628,900 11.3
15.6 288.669.000 415,737.000
All wheat
26.114,650 27,174.900 11.6
15.9 304.144,000 431,200,000
Oats
12.871,341 13,156,700 25.5
30.0 328,278,000 394,876.000
Harley
3.768,269 3,742.000 17.9
67,382,600 82,981,000
22.2
Fall rye
598,511
613,900
6.5
12.6
3,873.000 7,760,500
Spring rye
179,023
158,700
8.1
13.7
1.449.000 2.176,500
All rye
777,534
772,600
6.8
5.322,000 9.937,000
12.9
Peas
82.640
83,200 16.6
18.1
1.369.400 1,505,800
Beans
82,109
70,300 15.9
15.1
1,304,100 1,059,600
Buckwheat
335,339
360,500 20.6
23.0
6,916,700 8,281,000
Mixed Mine_ _. 1.186,877 1,196,200 33.2
39,431,000 39,878,000
33.3
Flaxseed
627,430
453,750
4.1
5.6
2,565,000 2,533,700
Corn, husking_ _
131,695
137,000 41.4
38.2
5.449,000 5.231.000
2. AREA AND PROVISIONAL ESTIMATE OF THE YIELDS OF WHEAT.
OATS, BARLEY, RYE AND FLAXSEED IN THE PRAIRIE
PROVINCES 1932, AS COMPARED WITH 1931.
CropsWheat
Oats
Barley
Rye
Flaxseed
1931.
1932.
1931.
Acres.
25,352,722
8,311,967
3,202,727
711,709
618,561
Acres.
26,395,000
8,533,000
3,154.100
706,200
445.700
Bushels.
284,000,000
183,700.000
50.540,000
4,15i,000
'2.470.000
1932.
Bushels.
411,000,000
247,300,000
65,569.000
8,763,000
2.453.700
Paris Deputies Ask Inquiry as to Market for Wines in
United States.
Under date of Nov. 10 Associated Press advices from
Paris said:
The beverage committee of the Chamber of Deputies called upon the
Government to-day to investigate the possibility of marketing French
wines and liqueurs in the near future in the United States as a result of ths
American election.
A resolution expressing pleasure in Tuesday's developments [Nov. 8)
in the United States in so far as they affect prohibition was adopted by
the com-mittee.
California Wineries Anticipating Prohibition Change
-10,000,000 Gallons of Wine Held in Bonded Storage-State's Grape Industry Represents Investment of $300,000,000.
Some 10 million gallons of California wines, having an
estimated value of $15,000,000, are locked in bonded winerieof that State, awaiting permissive legislation to enter National and world markets, it is reported by the Bank of
America, large Pacific Coast branch banking system, in it.
weekly review of business in the far West, issued Nov. 14.
It is pointed out that prior to prohibition, California produced 40 million gallons of wine annually as compared with
6 million gallons last year, indicating that the present supply
of aged wine could not be expected to last long. The grape
industry of the State, it is added, approximates an invest-
3430
Financial Chronicle
'ment of $300,000,000; embraces 525,000 acres of which 185,000 acres are admittedly wine grapes, 240,000 acres raisin
and 90,000 acres table grapes, and represents 90% of the
entire production of grapes in the United States.
A report on wine was compiled, it is stated, to answer
domestic and foreign inquiries as to the market importance
of California wine in the event that prohibition laws are
revised. In the related subject of brdwer's materials, according to the bank, California to-day ranks fourth in the
production of barley and between 1915 and 1919 produced
twice as much hops as any other State in the Union. In
many markets of the world, California malting barley is
still considered a standard. The bank also says:
Business reports for eleven Western States for the week and month
showed little, if any improvement. Power production for the week was
off 9.1%, as compared with the corresponding week in 1931, while bank
debits to individual accounts in the principal cities of the 12th Federal
Reserve District for October totalled $1,819,783,000 as compared with
$2,621,970,000 for October 1931. Building permits for 91 Western cities,
including Salt Lake, Seattle, Portland, San Francisco and Los Angeles,
advanced 6% from September to October, whereas overtaxed crude oil
storage situation in California, which threatened crude and gasoline prices,
was temporarily solved, and perhaps until the end of 1933, through increase
in purchases by major companies.
21,000 Grape and Hop Growers Aid California WineBeer Move.
According to San Francisco advices, Nov. 11, to the
New York "Times" 21,000 grape and hop growers of Sonoma
County on that day joined in a body the Graiie Growers
League of California, which was organized to push legislation at the December session of Congress for immediate
legalization of light wines and beer. The dispatch added:
The group is headed by Sophus Federspiel and its nucleus was formed
among 28 of California's largest growers.
It is the contention of the organization that this State's $350,000,000
grape industry cannot survive "except through the legalization of light wines
and beer."
Beduction in Liquor Prices in Ontario by Tariff and
Excise Slashes.
advices
from Toronto, Nov. 15, said:
Press
Canadian
Reductions of 35 cents a bottle on most Canadian liquors and 40 cents on
Scotch whiskies, effective to-morrow, were announced by Stewart
McCienaghan, Chairman of the Ontario Liquor Control Board to-claay.
"We are passing on to the public the full benefit of the reductions in
tariff on the imported brands and in excise on the Canadian," he said.
"In fact, our reduction in price is a bit more than the cuts in duty and
excise. It is about as close as we can make it in round figures."
There will be no change in the prices of beer or imported wines.
Brazil's Coffee Tax—Export Duty of 65 Milreis per Bag
to Remain Unchanged.
The following is from the "Wall Street Journal" of Nov. 16:
The 15-shilling per bag coffee export tax imposed by the National Coffee
Council and collected now in the form of 55 milreis will remain unchanged,
according to official advices from Rio de Janeiro to the New York Coffee
& Sugar Exchange.
This original gold export tax was imposed in conjunction with the $97.330,000 realization loan of April 1930. It was to be collected in English
funds. When England went off the gold standard on September 21 1931,
the tax was converted to American dollars and still amounted to $3.65 a
bag. Brazil started to manipulate the value of the milreis early this
year through exports of gold, &c. and to protect themselves issued a decree
declaring the tax collectable at the rate of 55 milreis per bag as long as the
milreis remained above 15.070 cents. It is now around 12.960 and therefore the tax is larger, being about $4.25. There had been some talk recently
of a change in the tax, but this proved without foundation.
Trading in New Colombian Coffee Contract on New
York Coffee and Sugar Exchange.
With no official ceremonies to mark the event, trading
commenced on the New York Coffee and Sugar Exchange
on Monday, Nov. 14 in the new Contract "H" (Colombian
Coffee Contract). The first trade was made at 10.30 a.m.
at the opening call when C. J. Walter sold a contract for
32,500 pounds for December delivery to Jack Spitzer for
10 cents a pound. The new contract is exclusively for coffee
produced in the Republic of Colombia. The basis grades
are coffee from the districts of Caldas, Cundinamarca, Huila
and Tolima in the Republic of Colombia.
Commenting on the opening, H. H. Pike Jr., President
of the Exchange, pointed out that the advant of the new
contract provides Colombian planters with a hedge market
where they may sell their crops for future deiivery. He
said, in part:
"It provides a central market place where the producing interests of
Colombia may trade with the merchants of this country under rules and
regulations that have been tested and improved for more than a half century
of coffee dealings. Since the Exchange started coffee trading on March 7
1882, a total volume of 475.000,000 bags, or 62,700,000,000 pounds, have
changed hands on the floor of the Exchange."
The announcement by the Exchange also said:
Trading characteristics of the new contract will be the same as the existing
"Rio" and "Santos" contracts, which have Brazilian coffees as their basis
Nov. 19 1932
grades. The unit of trading is 250 bags, or 32,500 pounds. Fluctuations
are in hundredths of a cent a pound with each point fluctuation equivalent
to $3.25 per contract. The Commission rates for non-members are $25
per round turn when the price is under 10 cents and $30 per round turn when
the price is between 10 and 20 cents a pound.
Production of coffee in Colombia over the past decade has been increasing
steadily in volume and exports now approximate 3,000,000 bags a year.
However. Brazil continues to be by far the largest and most important
coffee producer with an average annual production for the past few years of
about 20,000,000 nags.
The provisions of the new contract follow:
Contract "H."
(Colombian Coffee Contract.)
New York,
19
have this day sold and agreed to
bought
32,500 lbs.
deliver to M
receive from
(In bags of a commercial size) of coffee of the growth of the Republic of
Columbia, S. A., at the price of
cents per pound.
The seller shall have the option of delivering growths of the districts of
Caldas, Cundinamarca, Huila, and(or) Tolima at the above price, and(or)
growths of the districts of Antioquia, Santander, Cauca, and Valle at the
differentials provided in Section 88 of the By-Laws of the New York Coffee
and Sugar Exchange, Inc.
Delivery to be from licensed warehouse in the Port of New York between
the first and last days of
x or
inclusive,
ei,th
v ivs
19
delivy
er within such time to be at seller's option upon eitherfil
seven days' notice to the buyer,
Nothing in this contract shall be interpreted as permitting the delivery
of coffees known as "Segundas" or similar or lower grades.
The coffee shall be graded on the basis of New York Coffee and Sugar
Exchange "Mild Type No. 1," with deductions, if any, for grades as
prescribed in Section 94 of said By-Laws.
The coffee shall be "sweet" in the cup, and of good bean and good roasting quality for the district in which it is grown.
Either party may call for a margin, as the variations of the market for
like deliveries may warrant, which margin shall be kept good.
This contract is made in view of, and in all respects subject to, the
By-Laws, Rules and Regulations of the New York Coffee and Sugar Exchange, Inc.
For and in consideration of one dollar to ________ _ _________________
in hand paid, receipt whereof is hereby acknowledged,
accept this contract with all its obligations and
conditions.
Coffees Deliverable under Contract "H" (Columbian Coffee Contract), with
the Fixed Differentials, are as Fo:lows:
Fixed
Fixed
Differentials.
District—
District—
Differentials.
-F
c
Tolima
Antioquia
Basis
Basis
Caldas
Santander
—5kic
Basis
Cauca
Cundinamarca
—lc
Basis
Valle
Huila
—lc
(The boundaries of the above districts shall be as shown on the official
maps on file with the Exchange.)
A reference to the new contract appeared in our issue of
Oct. 29, page 2897.
New York Coffee Market for Week of Nov. 11
—10,203,000 Bags of Coffee Destroyed in Brazil.
Review of
The New York Coffee & Sugar Exchange in its review of
the coffee market for the week ended Nov. 11 said:
Reports of an impending change in the Brazilian export coffee tax caused
the coffee futures market to fluctuate nervously during the past week
on the New York Coffee and Sugar Exchange. Net changes for the week
ended Nov. 11 were 2 points higher to 12 points lower in the Santos contracts and 9 to 17 points lower in the Rio contracts. A cable received
by the New York Coffee and Sugar Exchange on Friday reported that uP
to the end of October a total of 10,20:3.000 bags of coffee had been officially
destroyed in Brazil. In the New York spot green coffee market, roasters
were reported still following their policy of buying from hand-to-mouth
for immediate requirements.
Brazil Studies Ways to Diminish Coffee—Ministry
Assents to Coffee Council's Plan for Survey to
Cease Enlarging Surplus.
From the "Wall Street Journal" of Nov 17 we take the
following from Rio de Janeiro:
The National Coffee Council presented to the Minister of Finance various
suggestions for a study of how to ease the coffee situation. There are still
some 23,000,000 bags of coffee held in the interior of Brazil for which no
market exists. The study is to consider these points:
1. Re-establishment of the statistical position by the acquiring of retained
stocks in the state of Sao Paulo;
2. Recommence payment of stocks purchased by the National Coffee
Council in Sao Paulo,
3. Modify legislation regarding replanting coffee.
4. Study possibilities of destruction of coffee trees, especially those
attacked by broca.
5. Prohibit the exportation after July 1 of coffees containing impurities
above a fixed percentage.
6. Fix a sacrifice quota for destruction front each future crop.
•
Brazil is Likely to Export Only Her Choicest Coffees
If Coffee Council's Recommendations are Carried
Out.
If recommendations made by the Coffee Council are carried
out by the government, beginning next July Brazil will export
only the choicest coffee types, freed of all impurities said a.
cablegram Nov 16 from Rio de Janeiro to the New York
"Times" which added:
f
Volume 135
Financial Chronicle
The Council's recommendations include tariff revision, in order to establish reciprocal treaties with other countries, which now retaliate by imposing
heavy taxes on coffee.
It also recommends abolition of the tariff protection afforded to "fictitious" national industries in order to open Brazilian markets to much additional foreign merchandise.
The council emphatically states that the 15 shillings coffee tax should
remain and urges continuance of wide advertising abroad, using the radio•
and newspapers.
Creation of County Councils of Bankers, Insurance
Men, Farmers, &c., to Solve Problems of Distressed
Farmers.
In Associated Press accounts from Des Moines, Iowa, on
Nov. 13 it was stated that many who have worried for
months about farm mortgage foreclosures conclude that it
is best for farmers to help themselves with the aid of their
neighbors. The account added:
Many conferences have been held here, and much study has been put
into the problem of keeping farmers on their properties if they cannot pay
past due debts. Now financial and agricultural leaders say they have a
practicable plan.
It provides for the establishment in each Iowa county of a council of
bankers. insurance men, farmers, county agents and others, who will hear
the problems of every distressed farmer and seek a solution for each case.
The councils are expected to start functioning in two or three weeks.
Before them will appear farmers who need help. The status of each will be
investigated. Those whom the council members feel are reliable and worthy
of a "second chance" are promised help so they will not have to give up
their farms.
The county councils will work with a State agricultural council, named
several weeks ago, which includes executives of several financial and
agricultural enterprises.
Moratorium on Farm Mortgages in Nebraska
for Indefinite Period.
From Madison, Neb., Nov. 15, Associated Press accounts
stated:
Judges in the Ninth district have declared a moratorium on farm mortgages for an indefinite period. In opening the November term of court
Judge Clinton Chase announced that in mortgage cases where no defense
had been made he would neither issue decrees of foreclosure nor confirm
foreclosure sales. Judge Charles H. Stewart said he would make the same
announcement in opening a court term at Wayne. Attorneys said they
understood the ruling would affect sales under judgment as well as under
foreclosure.
Protest by Nebraska Delinquents Halts Sale of Farm
Tax Titles—Charge Usury and Will Seek Relief
from Legislature.
In its issue of Nov. 13 the New York "Times" published
the following from Omaha Nov. 10:
When the annual sale of delinquent taxes was opened in Madison County
‘everal buyers were present but no sale was made. There was no sale
because there were no offers, and no offers probably because there were
also present 250 farmers to protest against the sale of tax titles.
These tax titles are bought, not with the expectation that the buyer will
get possession of the property, but for the 12% interest which the State
allows the buyers to collect from the time of the sale until the taxpayer
finally is able to liquidate the government's claim.
The protesters assert that this interest is usurious. Their protest will
undoubtedly be carried to the State Legislature this Winter. In the meanlime, everywhere they are discouraging the sale of tax titles this Fall.
Canada Backs Hedging—Winnipeg Operations of
Wheat Pools Guaranteed to Extent of $18,000,000.
Ottawa advices as follows are taken from. the "Wall
Street Journal" of Nov. 15:
Canadian banks were guaranteed by the government against loss in
financing hedging operations by Canadian Cooperative Wheat Producers,
Ltd., central selling agency of the three prairie pools, Premier R. B. Bennett
revealed in Parliament in reply to a question as to whether the government
has been. buying wheat in the Winnipeg market.
The Dominion now stands behind banks to the extent of $18,000,000,
which is equal to the estimated cost of a five cent bonus on this year's crop,
according to Mr. Bennett, and he added he considered it improbable the
Federal Treasury will sustain any considerable loss through the guarantee.
Without hedging operations, prices on Winnipeg grain exchange might
have fallen below 40 cents a bushel, Mr. Bennett said. Hedging was
necessary for orderly marketing of the Canadian wheat crop, the government felt, as speculators had practically disappeared and operations of
investors (milling companies), were restricted by the depression, thus removing the buying power that normally kept the market stable.
We also quote the fcllowing from Ottawa Nov. 15, copyright by the New York "Sun":
The Canadian Government is supporting and bolstering the wheat
market by guaranteeing bank loans to grain interests and by employing the
wheat pool to maintain the level of prices according to a revelation by
Premier Richard B. Bennett.
In a statement before the House of Commons last night, Mr. Bennett
explained how the Government had been making advances to banks guaranteeing them against losses in curred ,on advances for the purchase of
wheat at the elevators and for hedging operations to stabilize wheat prices
carried on by the Canadian Co-operative Wheat Selling Agencies, Ltd., in
view of the virtual disappearance of the private speculator.
Bennett offered no figures on the amount of money involved, but emphasized that no matter what loss might be entailed, if any, it would not
equal Government disbursements in the form of a bonus of five cents a
bushel on wheat. He made it clear that the Cabinet had been confronted
with the question whether to guarantee the banks or renew this bonus,
which was revoked last year, as reports had indicated that unless hedging
operations were continued the crop could not be marketed.
Declaring that he could not predict when Government support of hedging operations would be discontinued. Bennett pointed out that immediate
3431
withdrawal of such assistance would have a detrimental effect on
the market
and would probably see wheat down to below 40 cents.
Reviewing the causes of this development. Bennett stated that
formerly
there had been two factors in the purchase of wheat; the
investor and the
speculator. The latter was no longer a factor, having almost passed
out of
the market, he said. In connection with the hedging of wheat,
the investor
must bedepended upon, but owing to present trade conditions,
the investor's
position was not sufficiently strong. Therefore, the wheat pools
their selling organization became the only possible body available througb.
for hedging operations.
Bennett submitted statistics to show that 225,000,000 bushels
of the
present year's crop had been delivered to the country elevators by
the grain
growers, of which 175,000,000 bushels had been sold, as against a
total sale
last year of only 265,000.000 bushels. Another indication, he said,
of the
freer movement of wheat so far this crop year was the fact, excepting
1928.
the export of wheat for the first three months had been greater
than in any
other year since 1922.
Reduction of 12,000 Acres in Canada's Wheat Area
for Next Year's Crop Reported.
On Nov. 15 Associated Press advices from Ottawa, Ont.,
stated:
Canadian farmers sowed 12,000 fewer acres to Fall wheat this year
a year ago, the Dominion Bureau of Statistics reported to-day. The than
area
was estimated as 556,400 acres, compared with 568,400 acres for the
1932
crop.
The estimated area sown to Fad rye for 1933 was 496,000 acres,
compared
with 664,400 acres last year, a decrease of 168,400 acres, or 25%.
The condition of Fall wheat in Canada on Oct. 31 was reported
as 98%
of the long-time average against 105 at the same time in 1931.
while that
of Fall rye was 90, compared with 94.
Grain Shipments at Montreal Reach 100,000,000 Bushel
Mark.
Under date of Nov. 15 a dispatch from Montreal to the
New York "Herald Tribune" said:
The Montreal Harbor Commission announced to-night that the
100,000,000 bushel mark in grain shipments was reached this afternoon.
This
total is expected to be considerably increased before close of
The shipments are the highest since the record year 1928 when navigation.
211,000,00a
bushels were shipped.
Firm of Crosse & Blackwell Barters for 20 Carloads of
Canadian Wheat.
On Nov. 12 the Department of Commerce at Washington
said:
Twenty carloads of Canadian wheat has been ground into flour for export
to Finland and Lapland under "barter" arrangements made
by crone.
and Blackwell Canada, Ltd., makers of pickles, sauces,
and Catchup.
with Canadian wheat growers early in the present grain season,
according
to a report to the Commerce Department from Trade Commissioner
L. A.
France, Toronto.
The "barter" plan consisted of agreements whereby receipts
from the
sales of the pickles and other products in the Prairie Provinces
would be
applied to purchase of wheat for immediate shipment abroad.
Sales in Western Canada have netted sufficient gross receipts
to the
company to allow for the purchase of the 20 carloads of hard
wheat. The
company, originally planned merely to export the wheat but it
has decided
to go one step further and has arranged with the St. Lawrence Flour
Mills,
Ltd., of Montreal, for grinding wheat into flour. The company's
wheat.
will be milled for export only, and will be distributed in
Lapland and.
Finland.
The proposal of the firm to "barter" products for Canadian,
wheat was referred to in our issue of Aug. 13, page 1068..
New Grain Storage Rates at Montreal.
An announcement as follows was issued Nov. 12 by the
United States Department of Commerce:
In order to promote freer flow of grain through the Port of Montreal.
the
‘
Harbor Commissioners have announced their decision to absorb the cost
insurance on grain stored in their elevators, according to a report to
the
Department of Commerce from Trade Commissioner E. G.
Sabine,
Montreal.
The paragraph dealing with insurance is as follows:
It shall be compulsory for the Commissioners to insure against
loss
by fire and explosion, on account of whom it may concern, all
ceived in their elevators, and pay the premium therefor on the grain refollowing
conditions:
(a) No charge will be made by the Commissioners for the
premium
of insurance paid by them to cover such loss during the free
period of
storage as mentioned in this by-law.
(b) After the expiry of the free period, insurance will be charged
against
the grain at the rate of 20 cents per $100 of value, per annum,
while stored,
and shall be payzble to the Commissioners before delivery
thereof by the
holders of the warehouse receipts, or other documents issued
in lieu ofwarehouse receipts.
Storage rates have also been altered by order-in-council,
the principal
difference being in the reduction of the period of winter
storage by one
month. Instead of a straight charge of 1% cents per bushel be
made, the
new rate is one-ninetieth of a cent a day from Dec. 2 to
April 15 (formerly
May 15). which actually amounts to 114 cents for the
whole period.
Report for Year of United Grain Growers, Ltd.
The following from Winnipeg is from the "Wall Street
Journal" of Nov. 10:
United Grain Growers, Ltd., reports for year ended
July 311932. operating profit of $917,245 comparing with
$993.101 in preceding fiscal Year.
After providing for depreciation, interest, income
taxes, &c., net profit was
.$180,213. against net profit of $251.070 in previous
year. All bank loans
were paid off on July 31, last.
Argentina Increas3s Acreage for Wheat.
From Buenos Aires, Nov. 15, the New York "Sun" re-,.
ported the following:
3432
Financial Chronicle
in Argentina
An increase of 2,495,710 acres in the area sown with wheat
estimates
this year as compared with 1931-1932, is shown in the final crop
shown in the
prepared by the Ministry of Agriculture. Increases are also
year's
last
under
oats, barley and rye areas. Linseed is the only crop
sowings, with a reduction of 1,239,200 acres.
the Ministry
The total sowings for the 1932-1933 season as contained in
of Agriculture report follows:
19.790.239 acres
Wheat
7,400,645 acres
Linseed
3,652338 acres
Oats
1,519,665 acres
Barley
1,623.447 acres
Rye
of the wheat
Locust damage has destroyed approximately 618,000 acres
sowings and about 1,112,000 acres of linseed.
Peru May Tax Wheat and Flour.
the
Special correspondence from Lima, Peru, Nov. 6, to
said:
"
"Times
New York
growers to sow at least
Congress is considering a bill to compel all wheat
recommended by the Depart50% of their land with varieties of fine wheat
proposed to put a tax
is
it
ment of Agriculture. For the purchase of seeds
being applied to the
on imported wheat and flour, any surplus resulting
Irrigation in the Jauja and Huancayo valleys.
Create
French Deputies Vote Grain Board—Decide to
Wheat.
e
Regulat
Group to
g (copyFrom the New York "Sun" We quotc the followin
right) from Paris, Nov. 18:
Farm Board to peg prices
Disregarding the failure of the American
of grain, the French Chamber of
by governmental purchasing and stocking
of 165 votes to create a wheat
Deputies last night decided by a majority
board for a similar purpose.
which led to the creation of
The reasons for this step resemble those
the farmers that something be
the American board, namely, demands by
for their outlay and labor.
done to assure them of an equitable return
to create the board. As
Premier Edouard Herriot's Cabinet hesitated
ago Abel Gardey, Minister of
days
three
as
recently
as
fact,
of
a matter
a step, but the Cabinet changed
Agriculture, took a stand against such
that they would press for the
its attitude when the Socialists indicated
of the Government.
board even if their action entailed defeat
purchase wheat and take-all
The new organization will be empowered to
next harvest. It may also fix
other measures to stabilize prices untilatethe
to the price of wheat.
prices for bread at a figure proportion
Plan for Idle.
"Back to the Farm" Move, New Zealand
to
The New Zealand Government is pressing the "back
yment
unemplo
for
remedy
partial
a
the land" scheme as
New Zealand,
and a means of relief, according to Wellington,
which added:
"
"Times,
York
New
the
to
advices Nov, 14
ts gather to-day at a conThe heads crf the government departmen
more of the unemployed on farm
ference to discuss the project of settling
is considering a comprehensive
land. It is understood the conference
"10 acres" plan. If carried out,
scheme, more extensive than the present
the general heading of unemploythe new scheme would be listed under
that fund.
ment relief and would be financed from
DisFederal Farm Board Flour Said to Have Been
s
173
Countie
but
All
00
20,000,0
Among
tributed
in Nation Aided- -15,000,000 Persons Clothed with
Government Cotton.
Nearly 20,000,000 persons have received Government
inflour through the American Rod Cross, and 15,000,000
dividuals will receive clothing made from Government
cotton, John Barton Payne, Chairman of the Red Cross,
announced on Nov. 12, according to a dispatch from Washington on that date to the New York "Times", which further
said:
Congress last Winter authorized
Responding to need over the nation,
n
by the Farm Board, and distributio
use of wheat and cotton controlled
0 bushels were released.
of the wheat began in March when 40,000,00
, but in July Congress voted
This wheat was exhausted in September
to last until Spring. In July
another 45.000,000 bushels which is expected
bales of cotton to provide
Congress also authorized release of 500,000
clothing.
United States have received
All but 173 of the 3,072 counties in the
for flour, Judge Payne said,
flour, and in 18 States every county has asked
effort to expedite deliveries.
adding that the Red Cross had made every
persons, but was
The wheat had not only provided food for 4,250,000
d to 184,188 farmers in
also cracked for livestock feed, and distribute
River.
doutth-stricken counties west of the Mississippi
Figures on Flour Distribution.
The following figures were given:
Nov. 5; number of
Chapter applications for flour numbered 9.669 up to
8 24-pound sacks;
barrels of flour distributed, 5.770,216, or 46,161,72 flour, 771; bushels
the
families receiving flour. 4,247,929; millers who milled
and other Red Cross units
of wheat used up to Nov. 5,51.028,987; chapters
applying for flour, 3.497.
into clothing was started
The difficult task of converting raw cotton
approved requests from 2.986
Aug. 29. By Nov. .5, the Red Cross had
8 yards of six varieties
Red Cross Chapters and other units for 44,907,60 birdseye. and cotton
flannel,
of cotton cloth—gingham. shirting, muslin,
seamstresses in sewing
prints. This was made up by women volunteer
more than 10,000,000 garments of
rooms and was expected to suffice for
underclothing, dresses, shirts, &c., for men, women and children.
was well under way, the Red Cross
After the distribution of the cloth
, hose, overalls, trousers, knickers
prepared to give cotton knit underwear
small boys.
for boys and suits for
More Clothing Still Needed:
distribution numbered 13,398,788 and
Garments purchased for this
these
other Red Cross units have already applied for
1.565 chapters and
Red Cross has committed 241,247 bales of cotton
garments. Thus far the
these goods.
in exchange for
Npv. 19 1932
approUnder the legislation passed by Congress, which carried no
Cross has
priation to pay for conversion of the raw materials, the Red
met these expenses through payment in wheat or cotton.
is
The expense of administration has been borne by the Red Cross and
y about
averaging $1,500 a day. The Red Cross has employed temporaril
the
ISO persons to handle these complex merchandising problems, with
wheat distribution directed by executives from Chicago and the cotton
operation handled by disaster-relief experts from Washington.
more
The organization has estimated that the cotton will meet not
and
than 20% of the clothing needs of the destitute, and urges its chapters
to obtain
other agencies distributing the clothing to continue their efforts
additional clothing elsewhere.,
New York Cotton Exchange Sets Maximum Limit of
Interest on Future Contracts at 1,000,000 Bales
for Delivery from November 1932 to October 1933.
The Board of Managers of the New York Cotton Exchange voted on Nov. 14 to set the maximum limit of interest
by any member, firm or corporation, and his or its affiliations, at 1,003,000 bales for delivery in November 1932, and
in all months up to and including October 1933.
This compares with 1,000,000 bales set by the Exchange
on Oct. 13 for delivery in October 1932 and in all months up
to and including September 1933, as noted in our issue of
Oct. 15, page 2573.
Production, Sales and Shipments of Cotton Cloth in
October as Reported by Association of Cotton
Textile Merchants of New York Production at
Highest Weekly Rate Since April 1930.
The highest weekly rate of production since April 1930 and
a continuation of the abnormally low mill stock position are
features of the statistical reports on carded cotton cloths for
October released Nov. 14 by the Association of Cotton
Textile Merchants of New York. The figures cover a period
of four weeks. The Association, in its report, also said as
follows:
Production during October was 253.109.000 yards, or at the rate of
63.277.000 rm.& weekly. This was an increase of 11% over the weekly
rate for September. Billings were 246,562,000 yards, or 97.4% of profor
duction. Stocks on Oct. 31 were 166.668.000 yards, the lowest figure
report.
any month save the 160,121,000 yards recorded in the September
Sales were 149.657,000 yards and unfilled orders 347,123,000 yards.
Corresponding data for the same period in each of the last five years
emphasizes the ability of the industry to function with reduced stocks:
Stock
117rekly Production Rate
Unfilled Orders
Oct. 31.
During Octbber.
Oct. 31.
00
0
63.277,000
347.123,0
166,668,00
1932
56,779.000
344,639,000
255,833,000
1931
45,773,000
00
00
350,845,0
350.889,0
1930
70,766,000
395,698,000
362,657,000
1929
71,225,000
492.556,000
394,742,000
1928
These statistics are compiled from data supplied by 23 groups of manufacturers and selling agents reporting to the Association of Cotton Textile
Merchants of New York and the Cotton-Textile Institute, Inc. These
groups report on more than 300 classifications or constructions of carded
cotton cloths and represent the major portion of the production of these
fabrics in the United States.
Stephen Paine of Boston and Pandia John Calvocoressi
of London Elected to Membership on New York
Cotton Exchange.
Stephen Paine of Paine, Webber & Co., Boston,and Pandia
John Calvocoressi of Ralli Brothers, Ltd., London, England,
were elected on Nov. 14 to membership in the New York
Cotton Exchange, the Exchange announced on Nov. 15.
Mr. Paine is a Governor of the Boston Stock Exchange. Mr.
Calvocoressi is a director of Ralli Brothers, Ltd., one of the
largest cotton firms of the world, and is a member of the
Liverpool Cotton Exchange.
Production Statistics—October 1932.
The following statistics cover upwards of 300 classifications or construcof the
tions of carded cotton cloths, and represent the major portion
represents
production of these fabrics in the United States. This report
Inc.
yardage reported to our Association and the Cotton-Textile Institute,
since
It is a consolidation of the same 23 groups covered by our reports
a period of
October 1927. The figures for the month of October cover
four weeks.
Production was
Sales were
Ratio of sales to production
Billings were
Ratio of billings to production
Stocks on hand Oct. 1 were
Stocks on hand Oct. 31 were
Change in stocks
Unfilled orders Oct. 1 were
Unfilled orders Oct. 31 were
Change in unfilled orders
October 1932
(4 Weeks).
253,109,000 yards
149,657,000 yards
59.1%
246,562,000 yards
97.4%
160,121,000 yards
166.668,000 yards
+4.17e
144,028,000 yam*
317,123,000 yards
—21.8%
Trading Space Privilege Extended Six Months to Wool
Associates of New York Cotton Exchange by the
Exchange.
The New York Cotton Exchange voted on Nov. 17,according to an announcement issued by the Exchange on Nov. 18,
to continue for a period of six months, from Jan. 1 1933 to
of
June 30 1933, the arrangement with the Wool Associates
s
furnishe
it
which
by
Inc.
the New York Cotton Exchange,
Volume 135
Financial Chronicle
to the latter organization trading space on the Exchange floor
and other facilities. It further empowered the Board of
Managers of the Cotton Exchange to continue the arrangement beyond six months at its discretion.
Census Report on Cottonseed Oil Production
During October.
On Nov. 12 the Bureau of the Census issued the following
statement showing cottonseed received, crushed and on
hand, and cottonseed products manufactured, shipped out,
on hand and exported for three months ended Oct. 31 1932
and 1931:
Imports of Foreign Cotton (500-1b. Bales).
Courant of Production.
State.
Alabama
Arizona
Arkansas
Californ.a
Georgia
L001812112
Mississippi
North Carolina
Oklahoma
South Carolina
TennesseeTexas
All other States
Crushed
Aug. Ito Ott. 31.
On Hand at Mills
Oct. 31.
1932.
1931.
1932.
1931.
1932.
1931.
126.649
11,193
211.607
22,079
174,075
123,294
304,958
105,843
192,428
86,367
236,630
721,131
30.957
166,975
14,095
205,717
36,833
170,760
133.189
306,785
90,507
179.375
74,927
182,405
955.338
36.107
90,349
12.740
98,100
14,373
108.776
78,189
151,986
62,889
121,641
64,178
97.032
515,778
17,045
107,368
8,690
92,355
17,634
124,298
73,883
144,152
53,601
84,268
59,326
64.580
531,183
15,430
46.394
5.551
121,315
12,961
75,756
47,443
178,017
47,733
110,590
24,486
148,963
380,621
14,327
60,276
5,454
114,137
20,399
47,841
59.958
163,714
37,913
98,402
16,506
118,053
437.648
20.728
nniteo States
2 347.209 2.553.013 1.433.078 1.378.768 1.214.157 1.201.029
* Includes seed destroyed at mills but not 300,024 tons and 24.784 tons on hand
Al. 1, nor 14,757 tons and 6,691 tons rush pped for 1932 and 1931 respectively.
COTTONSEED PRODUCTS MANUFACTURED, SHIPPED OUT,
AND ON HAND.
Item.
Season.
On Hand
Aug. 1
Produced
Aug. 110
Oct. 31.
Shipped Out
Aug. 1 to
Oct. 31.
On Hand
Ott. 31.
1932-33 .29,523,581 437.686,860 370,004,619 *133.874,554
1931-32
8,086,071 424,686,236 361,533,318 116,950,535
Refined oil, lbs. 1932-33 0628,420,148 8285,362,719
a581,582.720
1931-32 277,836,530 284,620,282
231,759,780
Cake and meal__ 1932-33
114,656
646.521
452,389
308.788
1931-32
tons
146,888
617,087
626,661
137,314
Hulls, tons..... 1932-33
162,773
406,818
312,155
257,436
1931-32
47,723
386,061
273,594
160,190
Linters, running 1932-33
235,521
221,612
185,422
271,711
1931-32
bales
175.904
213,420
140.716
248,608
Hull fiber. 500- 1932-33
4,138
5,698
2,843
6,993
1931-32
bales
3,564
8,719
3,376
8,907
Grabbots,motes,
&e., 500-lb. 193233
15.250
6.856
5,957
16,149
1931-32
bales
12,475
5,890
3,301
15.064
•Includes 4,182,006 and 18,217,053 pounds held by refining and
manufacturing
establishments and 7,235,770 and 29,'69,455 pounds in
transit to refiners and
consumers Aug. 1 1932 and Oct. 31 1932,
respectively.
a Includes 4,652.177 and 1,799,478 pounds held by refiners, brokers, agents,
and
warehousemen at places other than refineries and
manufacturin
5.598,691 and 16,136,520 Pounds in transit to manufacturersg establishments and
of lard substitute,
oleomargarine, soap, &c., Aug. 1 1932 and Oct. 31
1932. respectively.
b Produced from 309,578,745 pounds of crude oil.
EXPORTS OF COTTONSEED PRODUCTS FOR TWO MONTHS
ENDED
SEPT. 30.
Item1932.
1931.
-Crude,
pounds
Oil
1,343,533
171.600
Refined, pounds
1,282,747
1,081,526
Cake and meal, tons of 2,000 Pounds
15,652
12,746
Linters, running bales
26,402
9,575
Crude oil, lbs.--
Census Report on Cotton Consumed in October Larger.
Under date of Nov. 15 1932, the Census Bureau issued
its report showing cotton consumed in the United States,
cotton on hand, active cotton spindles and imports and
exports of cotton for the month of October 1932 and 1931.
Cotton consumed amounted to 502,244 bales of lint and
57,955 bales of linters, compared with 491,655 bales of
lint and 61,308 bales of linters in September 1932,and 461,023
bales of lint and 57,955 bales of linters in October 1931.
It will be seen that there is an increase over October 1931,
in the total lint and linters combined, of 36,861 bales, or
7.04%. The following is the official statement:
OCTOBER REPORT OF COTTON CONSUMED, ON HAND,
IMPORTED
AND EXPORTED, AND ACTIVE COTTON
SPINDLES.
Cotton in running bales, counting round as half bales, except foreign,
which is in
500-pound bales.)
Cotton Consumed
During-
Cotton on Nand
Oct. 31-
Cotton
Three
In con- In Public Spindles
Months turning
Storage
Active
Ending Establish- dt at Corn- During
Oct.
Oa. 31. ments. presses. October.
(bales) (bales)
(bales)
(bates) (Number)
I 1932 502,244 1,396,500 1,266,816
United States
I 1931 461,023 1,350,388 1,108,034 9,826,875 24,587,732
9,460,691 25,200,056
C0tton-growing States.- 1932 414,572 1,160,708 1,011,195 9,388,000
1931 378,144 1,097,440 851,786 9,108,868 17,094,300
1932 72,521 196,392 209,974 231,916 16,892,658
New England States
1931 65,704 203,837 214,475 120,706 6,797,440
7,274,376
1932
States
15,151
39,400
All other
45.647 206,959
695,992
1931 17,175
49,111
41,773 231,117 1,033,022
Included Above1932
7,858
Egyptian cotton
20,552
31,874
30,809
1931 6,598
19,361
34,745
17,310
1932 4,635
Other foreign cotton
12,164
15,106
4,014
1931 4,277
14,474
29,100
8,283
5,001
Amer.-Egyptian cotton__ 1932 1,551
6,076
10.276
1931 1,322
4,254
MI
7,619
12,092
NorIntluded AboveI 1932 57,955 166,883 266,866
Linters
52.364
1 1931 82.315 188291 108912
30850
Yew
October.
1932.
Egypt
Peru
China
Mexico
British India
All other
Total
3 Mos. End. Oct. 31.
1931.
1932.
1931.
2,046
424
1,473
1,439
175
78
438
515
70
494
8.5
6,816
406
941
1.690
5,298
147
4.021
2,637
18,199
15,298
12,494
1,895
3,231
Exports of Domestic Cotton Excluding Linters
(Running Bales-See Note for Linters).
Country to Which Exported.
COTTONSEED RECEIVED. CRUSHED AND ON HAND (TONS).
Received at Mills*
Aug. Ito Oct. 31.
3433
United Kingdom
France
Italy
Germany
Spain
Belgium
Other Europe
Japan
China
Canada
All other
October.
3 Mos. End. oct. 31.
1932.
1931.
1932.
1931.
209,418
106,500
97,437
244,279
28,374
22,962
56,824
199,680
13,821
17,068
11,660
169,239
42.976
79,150
25,5,393
31,871
23.223
47,619
216.255
113,320
20,526
14,608
363,590
293,980
208,301
602.126
74,563
53,608
128,962
361,551
59,854
29,507
17,800
204,515
71,048
141,092
397,649
72,167
40.010
88,091
431.684
274,459
36,400
26,287
Total
1,008,023 1,014,180 2,193,842 1,783,402
Note.-Linters exported, not included above, were 18,705 bales during October
in
1932 and 9,529 bales in 1931: 45,107 bales for the three months ending
Oct. 31 in
1932 and 19,104 bales in 1931. The distribution for October 1932 follows:
Kingdom, 5,588; Netherlands, 1,465; Belgium, 708; France, 4,237; Germany,United
Italy, 500; Canada, 1,460; Japan, 1,118; Panama,22;Poland and Danzig, 50. 3,557;
WORLD STATISTICS.
The world's production of commercial cotton, exclusive of linters, grown
in 1931.
as compiled from various sources was 26,329,000 bales,counting
American in running
bales and foreign in bales of 478 pounds lint, while the consumption
of
cotton
(exclusive of linters in the United States) for the year ended July 31 1932,
was approximately 22,916,000 bales. The total number of spinning cotton
spindles,bot active
and idle is about 161,000.000.
•
Petroleum and Its Products-Ames Heads A. P. I.Oil States Advisory Committee Reports on Production Limitations-Texas Bill Signed by GovernorSee Early Settlement of Kettleman Hills Proration
in California.
Directors of the American Petroleum Institute metating
in Houston, Te]r., this week, selected Y. B. Ames, VicePresident and General Counsel of the Texas Corporation. as
President to succeed Amos L. Beaty. The election of Mr.
Ames came as a surprise, although it was generally understood that there has been internal dispute in the Institute
regarding matters of general policy.
An important session of the Institute directors included
an address by Sir John Cadman, Chairman of the AngloPersian Oil Co., Ltd., who put great stress upon the beneficial
effects of co-operation. Sir John pointed out that "a set
of principles has been in evolution with the object of establishing a fair and just equilibrium which would admit of the
stabilization of exports, prices, and trading conditions.
Those principles are now in process of adoption by most of
the important oil exporting countries of the world." He
warned that strict vigilance is needed to ward off relaxation
of the effort to maintain the balance of supply with demand
in the petroleum industry. "Any relaxation would inevitably lead us back again to the state of chaos from which we
are only just emerging," he emphasized.
The Institute directors also heard Henry I. Harriman,
President of the Chamber of Commerce of the United States,
strongly advocate amendment of the Sherman Anti-Trust
Act so as to permit business enterprises to gain the same
advantages through agreement as would be possible in
merger. He stated as his opinion that such action would be
a potent force in improving present conditions and in speeding up recovery.
Retiring President Beaty declared that the industry had
made progress during the year, and is headed in the right
direction. Speaking of the situation as it stands to-day,
he
stated that "daily crude production is more than
100,000
barrels higher than it should be under a constructive program
to balance supply with demand. Runs to stills
are 9%
above the ideal from now until April 1 if there is to
be no
increase in motor fuel stocks from now until then, or
6% too
high if we expect tp reach that date with only
57,000,000
barrels of motor fuel, including say 4,000,000 barrels
of unblended natural gasoline. Present excesses may
not be
ruinous but they are injurious."
The new Texas oil bill which permits the Railroad
Commission to consider market demand and physical
waste in
determining crude production for that State, has been signed
by Governor Ross. Opponents of the new measure
declare
several provisions of it to be unconstitutional, and there
will
doubtlessly be several tests of its legality in both State and
Federal courts. The new bill was passed with a majority
3434
Financial Chronicle
Nov. 19 1932
sufficient to make it immediately effective upon the Gov- which reported that for the week ending Nov. 12 stocks
declined 478,000 barrels to 48,321,000 barrels. During the
ernor's signature.
On Thursday the allowables subcommittee of the Oil same period refinery operations increased to 59.3% of
States Advisory Committee recommended to the Texas RR. capacity, running to stills 2,135,000 barrels of crude daily,
Commission that the Texas production be held to 825,000 as against 2,000,000 barrels daily the preceding week.
Reports from the midcontinent area show a decided falling
barrels daily to Jan. 1, and 800,000 barrels daily from Jan. 1
to April 1 1933. The report urged that the total production off in gasoline movement into consumption. Refiners are
in the United States be held to 2,045,000 barrels a day to shading prices to bolster volume, but jobbers are working
Jan. 1, with the following allotments recommended: Okla- on a hand to mouth basis. The arrival of real wintry
homa, 390,000 barrels; Kansas, 94,000 barrels; Texas, weather, with heavy snowfalls throughout the Northwest,
825,000 barrels; California, 440,000 barrels; Louisiana, has reduced consumption to a low point.
Sentiment in Chicago seems to run contrary to the opinions
64,000 barrels; Arkansas,34,000 barrels; the Mountain States
the Federal Oil Conservation Board, which announced
of
Michigan,
barrels;
101,000
States,
75,000 barrels; Eastern
22,000 barrels. The production under this recommenda- that domestic consumption of motor fuel for six months
tion from Jan. 1 to April 1 would be 2,000,000 barrels daily, ending next March 31 would average a 7.6% decline. Dealers
as follows: Oklahoma, 37,500; Kansas, 92,000; Texas, figure that between 10% and 15% decline would be more
800,000, California, 440,000, Louisiana, 63,000, Arkansas, accurate, and therefore favor holding stocks of motor fuels
33,000; Mountain States, 75,000; Eastern States, 101,000; to the present level below 50,000,000 barrels rather than
building up to the 54,000,000 barrel stock recommended by
Michigan, 21,000.
Board.
the
producuniform
present
the
that
reported
is
it
In Texas,
In the Eastern markets it is probable that all major distion ratio of 40 barrels daily per well for the entire East
tributors will follow the lead of Standard in advancing tank
Texas field may be changed, the new plan taking into conwagon and service station gasoline prices. It is generally
varying
and
wells
of
groups
sideration conditions affecting
admitted that prices on gasoline have been too low throughthe allowables according to potentiality, acreage and other
out the past few months, but the uncertainty of the crude
factors. This would automatically meet the objections
price structure has hitherto made inadvisable any definite
which
Court
recently voiced by the three-judge Federal
price turn.
was
allowable
well
per
40-barrel
uniform
the
that
ruled
There has been a noticeable improvement in fuel oil
discriminatory and unreasonable.
business locally, but no price movements have yet occurred.
Reports from California indicate that an early settlement
Grade C bunker fuel oil is in fair demand, with the price of
of the Kettleman Hills dispute may be expected through
a barrel holding strongly. Diesel oil continues in a
75c
bring
an agreement to cut the field's output 10% and thus
routine manner with price firm at $1.65 a barrel, at refinery.
allotted
quota
the
barrels,
54,000
to
down
production
its daily
Weather conditions have brought about a seasonal imin the November schedule. The official figures give Kettleprovement in demand for kerosene, and 41-43 water white
man Hills' production as 58,986 barrels as of Nov. 13.
is steady and active at 53'c. a gallon in tank car lots, at
Settlement of the Kettleman Hills dispute will be a decided
refinery.
step forward in reaching the 440,000 barrel daily output
Price changes of the week follow:
for the entire state. It has been found that the recently
Nov. 16.-Standard Oil Co. of New York posts Hc. advance in tank
production
of
excpss
established practise of purchasing oil in
wagon and service station gasoline prices.
is too burdensome because of the inequality of purchasing
Gasoline. Service Station. Tax Included.
185 Cleveland
3 185 New Orleans
distribution. The Standard Oil Co. has been buying New York
5.128
19 Denver
Atlanta
20 Philadelphia
14
25,000 barrels daily, the bulk of which went into storage. Baltimore
104 Detroit
.125 Ban Francisco:
Houston
165
Boston
139
18
Third
other
but
grade
purchaser,
heavy
a
been
also
has
Co.
Oil
Union
175 Jacksonville
Buffalo
195
Above 85 octane_ _ _ 180
15 Kansas City
214
155 Premium
large purchasing companies have not been active in this Chicago
185 Minneapolis
Cincinnati
14
147 St. Louts
respect due either to reduced finances or to lack of storage
Kerosene, 41.43 Water White. Tank Car Lots, F.O.B. Refinery.
been
have
companies
several
N. Y.(Bayonne).- .0534 Chicago
facilities. In any event,
3.0214-.0334 New Orleans, ex_ _ _30.03%
Los Ang.. ex .0434-.o(1
North Texas
03
.0434-.0334
Tulsa..
supplying their refinery needs from their own production
Fttel Oil. F.O.B. Refinery or Terminal.
their
over
taking
of
instead
storage
from
withdrawals
or by
California 27 plus D
N. Y.(Bayonne)$.80
Gulf Coast C
3.75
Bunker C
3.75-1.00 Chicago 18-22 D...42%.50
share of excess production, as had been originally agreed.
1.85 New Orleans C
Diesel 28-30 D
.60 Philadelphia C
.70
To sum up the developments of the week, the petroleum
Gas Oil. F.O.B. Refinery or Terminal.
conconcerned,
is
production
N. Y.(Bayonne)I Chicagoindustry insofar as crude oil
Tulsa
5.0134
28 plus G 0_ _11.03M-.04 I 32-38 a 0
8.0134
tinues unabated on its path toward regulation of production U. S .Gasoline, Motor (Above 55
Octane).
Tank Car Lots, F.O.B. Refinery
to meet consuming demands, and for that reason there is a N. Y.(Bayonne)N.Y.(BayonneChicago
3 0534-.0534
Sinclair
Standard Oil, N. J.$ 073( New Orleans, ex. .05-.05
general feeling of optimism regarding the ultimate outcome.
Pan-Am. Petv Co_ .00
Motor. 88 oeArk
.04-0434
an
as
up
held
example
been
has
Shell
3.0634
Eastern
tone
industry
Pet_
.08,ii California
The petroleum
05-.07
New YorkMotor, 85 ocLos
0434-.07
ex_
Angeles,
depres07
tone
Colonial-Beacon... .07
of a major industry lifting itself from the slough of
Gulf porta
05-.0534
.07
LevIck
Crew
standard
Motor.
07
Tulsa
06-.0534
watched
with
being
are
direction
this
in
steps
its
sion, and
z Texas
Stand. Oil. N. Y. .07
.0634 Pennsylvania....
.05K
Gulf
.07
Co
Oil
Water
Tide
of
branches
all
in
commerce.
ii
08
leaders
keen interest by industrial
Continental
Richfield Oil(Cal.).07
.07
Republic Oil
Warner-Quin. Co_ .07
No changes in crude prices were announced this week,
•Below 85 octane. z"Fire Chler .07.
the price status in all fields remaining as of last week.
now
Y.
N.
quoting on
**Standard 011 of
Prices of Typical Crudes per Barrel at Wells.
(All gravities where A. P. I. degrees are not shown)
$0.75
$1.72 Eldorado. Ark.. 40
Bradford. Pa
.95
.85 Rusk Tex., 40 and over
Corning. Pa.
.94
1.10 Salt Creek, Wyo.. 40 and over_
Illinois
.80
1.05 Darst Creek
Western Kentucky
.88
Mid-Continent, Okla., 40 and above 1.12 Midland Dist., Mich
1.06
Hutchinson, Tex.. 40 and over.... .77 Sunburst. Mont
.90 Santa Fe Springs, Calif.,40 and over 1.00
Spindietop, Tex., 40 and over
1.00
.75 Huntington Calif.. 28
Winkler. Tex
1.90
.75 Petrolia, Canada
Smackover, Ark.. 24 and over
REFINED PRODUCTS-GASOLINE PRICES ADVANCED IN EAST
-MIDCONTINENT CONTINUES WEEK-STRONGER TONE
HERE IN KEROSENE-FUELS FIRM.
An advance of Mc. a gallon in tank wagon and service
station prices on gasoline posted by Standard of New York
Wednesday, November 16, featured the refined products
market this week. A determining factor in the advance
was the settlement of the Texas oil bill measure, which assures
continuance of controlled production of crude in that state.
The advance in gasoline prices was made effective throughout the greater part of Standard's territory, which includes
New York and New England. No changes have been mide.
in tank car prices, but sentiment locally is that an advance
will be posted shortly. Pre'ent schedules list below 65
octane at 634 to 63/sc., and above 65 octane at 63/s to 7c.,
tank car at refineries.
Total stocks of gasoline reached a new low for this year
last week, according to the American Petroleum Institute,
basis of de ivered price not more than
Ise. per gal, under company's posted service station price
at point and date of delivery but in no event less than 834c. a gal.. f.o.b. New York Harbor, exclusive
of taxes.
Oil Proration Bill Passed by Texas LegislatureEnlarges Powers of Texas Railroad Commission in
Limiting Production of Oil-Special Session Called
by Governor Sterling Ends.
Shortly after Governor R. S. Sterling of Texas affixed his
signature to a bill, passed by the Texas Legislature, enlarging
the powers of the Railroad Commission in limiting production
of oil, the fourth called session of the Legislature adjourned
on Saturday night, Nov. 12. Associated Press advice&
from Austin (Texas) Nov. 13 to the Houston "Post" said
that the bill was given a two-thirds majority of affirmative
votes in each house, the necessary number to put it into
immediate effect. The advices also said in part:
The House voted 105 to 22 to accept the Senate bill on the subject, the
upper branch having previously approved the draft by a vote of 23 to 5.
The Railroad Commission is expected to hold a hearing of operators in the
East Texas field, probably not later than Nov. 16, to fix an order based on
the new law.
Governor Sterling called the Legislature at the urgent request of many oil
operators after a three-judge United States district court invalidated orders
limiting production in the East Texas oil field on grounds the Texas Railroad
Commission, administrator of proration,exceeded its authority by considering "economic waste" in regulating the output there. The court pointed out
that the law under which the commission acted confined it to consideratiora
of "physical waste" in fixing oil field allowables.
Financial Chronicle
Volume 135
The law, which the bill approved would replace, was passed at a special
session of the legislature more than a year ago. The East Texas field,
source of much worry since its discovery two years ago, and other oil pools
in the State were regulated under its provisions.
The East Texas field at present is being held to an allowable production
of40 barrels per well daily, with a top field limit of 335,000 barrels daily.
Without a two-thirds affirmative vote in each house the bill would not
have become law until 90 days after adjournment of the Legislature.
Governor Sterling, until convinced by oil operators that a "reasonable
market demand" law was necessary to save the industry from overproduction, had expressed opposition to any kind of "price fixing" legislation.
Proponents of the new plan, however, insisted consideration by the commission of "reasonable market demand" did not amount to fixing the price
of petroleum.
Further Associated Press advices from Austin under date
of Nov. 15, to the "Post" said the Texas Railroad
Commission on Nov. 14 called a hearing of operators in the
East Texas oil field for Austin on Nov. 25, to discuss issuance of a proration order under the State's new "market
demand" statute.
A previous item regarding the new oil proration bill was
noted in our issue of last week (Nov. 12), page 3246.
Kerosene and Gasoline Required by Uruguay During
Twelve Months' Period Beginning June 1 1933 to
Be Bought from Soviet Russia.
According to Associated Press from Montevideo, Uruguay,
Nov. 11, as noted in the New York "Herald Tribune" of
Nov. 12, the Uruguay government alcohol, fuel and cement
monopoly contracted on Nov. 11 with Soviet agents to buy
from Soviet Russia all the kerosene and gasoline Uruguay
will require in the twelve months beginning June 1 1933.
The advices as noted in the "Tribune" also said:
The government Administrative Council recommended levying maximum
duties against Spanish and Cuban imports, declaring Uruguay buys millions
of pesos worth of Cuban sugar and Spanish oils yearly, while both those
countries refuse to purchase Uruguayan beef reciprocally.
Output of Venezuelan Crude Oil Higher in October—
Shipments Show a Further Falling Off.
According to "O'Shaughnessy's Oil Bulletin," the estimated outpirt of crude oil in Venezuela totaled 9,171,320
barrels of 42 gallons each, as compared with 8,802,687
barrels during September last and 9,440,165 barrels during
October 1931. Shipments amounted to 7,794,100 barrels,
as against 8,087,300 barrels in the preceding month and
9,639,300 barrels during the corresponding period last year.
During the ten months ended Oct. 31 1932 there were
produced a total of 97,243,821 barrels, as against 96,673,859
barrels in the same period lastyear,while shipments amounted
to 92,559,100 barrels, as compared with 94,595,744 barrels
during the first ten months of 1931. A comparative table
follows:
PRODUCTION AND SHIPMENTS OF VENEZUELAN OIL.
[In Barrels of 42 Gallons Each.]
Production.
Shipments.
Mona.
1932.
1931.
1930.
1932.
1931.
October
9,589.088 10,384,451 11,518,273 9,087.000 10,787,289
8,994,242 9,486,327 10,898,535 8,546,100 9,515,725
9,998,250 10,282,727 11,920,282 9,949,300 10,362,346
10,480,750 9,252,503 10,724,04.5 11.004,200 8,585,690
10,648,460 9,514,909 10,918,419 11,260,000 9,048,694
10,578,631 9,181,369 11,361,233 10,313,300 8,561,200
9,550,761 9,913,192 11,624,070 8,394,200 9,401,400
9,429,632 9,795,887 11,378,274 8,123,600 9,274,100
8,802,687 9,412,329 11,310,770 8,087,300 9,420,000
9,171,320 9,440,165 11,784,591 7,794,100 9,639,300
Ten months
November
December
97,243,821 96,673,859 113,438,492 92,559,100 94,595,744
9,535,068 10,910,501
8,984,320
9,921,889 10,492,030
9,100,800
January
FenruarY
March
Mut
May
June
July
August
September
Total for year.
116,130,816 134,841,023
112,680,864
Gasoline Price Advance Has More Than Absorbed
Recent Increase in Crude Oil, According to T. S.
Hose Weekly Report.
Optimism regarding the oil industry is justified, it is
declared in the T. S. Hose weekly report on the petroleum
industry, which points out that in the first ten months of
this year gasoline sales were nearly 92.7% of the same
period last year. The review says:
Mid-Continent U. S. Motor gasoline is selling for 4% cents per gallon
at the refinery as against 4 cents per gallon a year ago, an increase of
15,6% over last year. and gasoline stocks at the refineries were reauced
in excess of 1.000,000 barrels during the month of October and are approsimatelY 2,600.000 barrels lower than in October 1931.
The recent advance in crude, which went Into effect on Oct. 15. showed
an average increase on 36 deg. gravity Mid-Continent crude from 92 cents
to $1.04 per barrel, an advance of 12 cents per barrel, or approximately
13%. Since the increase rellnery gasoline has advanced from 3 cents
increase of approximately 24%, as against an
to 4% cents per gallon. an
increase in crude of approximately 13%.
complaint
among refiners that 49 cents per gallon
some
been
There has
did not justify an increase in the price of crude, yet we heard no complaints whatever when crude was at 92 cents and refinery gasoline at
3 yi cents. The refiner Immediately took his advance of 10% more than
crude has advanced and by confining refinery runs to requirements, thus
3435
eliminating distress gasoline, the refiner can not may make momy but
reduce his stocks, most of which were built up on lower priced crude.
The oil industry has truly been the first to turn red figures into black
and should not hesitate to lead this country out of the desert of depression.
There is no excuse to-day for the refiner and producer cutting prices or
selling their products at a loss. Any industry which can do 92.7% of its
best business the first ten months of this year, the worst business year
which most men living have seen, and at the same time reduce stocks in
Its two major branches, namely crude and gasoline, is not in a position
where it has to operate at a loss. The refiner who cuts prices or the producer who ignores proration laass deserves no sympathy as there is sufficient
market for oil and gasoline at the posted prices, and should the sheriff tack
a sign on his door he can blame it on just one thing—his own lack of
foresignt.
Reduction in Railroad Freight Rates for Transporting
Gasoline Approved by Inter-State Commerce Commission.
E. J. Hoy and P. S. Peyser, examiners, on Oct. 31, according to Associated Press advices from Washington, recommended that the Inter-State Commerce Commission authorize railroads serving New Orleans and Baton Rouge, La.,
and Mobile, Ala., to reduce rates on gasoline in carloads to
certain destinations to meet water competition. The advices as reported in the New Orleans "Times Picayune" of
Nov. 1 also said:
The examiners recommended that the roads be permitted to haul gasoline,
kerosene and naphtha from the New Orleans-Baton Rouge, La., group to
Memphis, Tenn., and from the New Orleans-Baton Rouge group and
Mobile, Ala., to Birmingham, Tuscaloosa, Holt, Montgomery and Selma.
Ala., at rates lower than intermediate rates.
The application of the carriers was based on the necessity of meeting rates
charged by barge lines operating in the same general territory.
Five Day Week Adopted By Proct:r & Gamble.
The five-day week was adopted by the Procter & Gamble
Co. of Cincinnati, Ohio, on Nov. 10 to become effective
immediately in its general offices. This change has not
affected salaries. About a month ago the company adopted
the five-day week in its plants in this country and in Canada.
Dodge Brothers Corporation Rehires 20,000 Employees
on Part-Time Work.
K. T. Keller, President of Dodge Brothers Corp., said
on Nov. 10, according to Associated Press advices from
Detroit, Mich., that approximately 20,000 employes of the
motor manufacturing company are now back on part-time
work preceding the introduction of a new model. According
to the advices he also said that 10,000 more are scheduled
for recall within the next two or three weeks, when production opens.
Buffalo Plant of Pierce Arrow Motor Car Co. ReEmployes 2,000 Men.
The Pierce Arrow Motor Car Co., a Studebaker subsidiary,
announced on Nov. 15, according to Associated Press
advices from Buffalo, N. Y., under that date, that 2,000
men had been put to work in the Buffalo plant producing
a new line of Pierce krrows.
About 1,000 Men Hired by Socony-Vacuum Oil Corp.
as Result of Adoption of Five-Day Week—Subsidiaries of Standard Oil Co. of New Jersey Added
Like Amount During September Alone.
Standard Oil Co. of New Jersey, the largest, and SoconyVacuum Oil Corp., one of the "big four'• of the Standard Oil
group, have added more than 2,0)3 men to their pay rolls
and in addition haw saved the jobs of nniny others by adopting the five-day week throughout their organizations, it
was officially announced on Nov. 10 according to the New
York "Herald Tribune" of Nov. 11, which further said:
The Jersey Standard was the first oil company in the industry to adopt
the short week as a means of "spreading employment." While official
figures are not obtainable, it is thought the number of employees added by
the two companies as a result of the shorter week is nearer 4,000 than 2,000,
as in each case the official data is incomplete.
Herbert L. Pratt, Chairman of Socony-Vacuum, stated that as a result
of the company's participation in the "share-the-work" movement, approximately 1,000 men had been added to the company's payrolls in the New
York and New England districts alone. In addition, adoption of the plan
had resulted in materially lowering the number of layoffs in the area usually
made at this time of year in anticipation of diminished business during the
winter months.
Mr. Pratt also stated that surstantial additions to employees and reductions in seasonal layoffs are oeing affected in other parts of the country by
subsidiaries of Socony-Vacuum.
The Standard Oil Co. of New Jersey's statement said that during September alone the company's subsidiaries added 1,000 men to payrolls and
in addition kept the jobs of 3,000 other workers who would have oeen laid
off had the longer week been retained.
Regarding the adoption of the five-day work week by the
Socony-Vacuum Oil Corp. in its Springfield, Mass.-district,
the Springfield "Republican" of Nov. 4 said in part:
Nov. 19 1932
Financial Chronicle
3436
Inauguration of the five-day week schedule among Socony-Vacuum employees in the Springfield district, which comprises the four western counties
In Massachusetts, has resulted in the hiring of 50 additional employees and
the retention of jobs by 12 workers about to be laid off, it was announced
Nov. 3 by District Manager John H. Schoonmaker. There is also a
possibility that about 10 more workers may be addea throughout the district before the new schedule, which Is part of a nation-wide share-the-work
movement in which the Socony-Vacuum corporation is co-operating, is
functioning smoothly. Mr. Schoonmaser stated. The new five-day
schedule oegan this week.
receive a day off each week, with the
IIKAll drivers on company trucks
loss of one-half day's pay. Service station attendants also will be given a
day off during each week.
Crude Oil Output Again Increased-Gasoline
Inventories Continue to Decline.
The American Petroleum Institute estimates that the daily
average crude oil production for the week ended Nov. 12
1932 was 2,134,350 barrels, as compared with 2,103,760
barrels for the preceding week, an average of 2,123,450
barrels per day for the four weeks ended Nov. 12 and
2,464,050 barrels daily for the week ended Nov. 14 1931.
Gasoline stocks showed a decline of 478,000 barrels during
the week ended Nov. 12 1932 to 48,321,000 barrels.
Reports received during the week ended Nov. 12 1932
from refinding companies controlling 93.4% of the 3,856,390
barrel estimated daily potential refining capacity of the
United States, indicate that 2,135,000 barrels of crude oil
daily were run to the stills operated by those companies and
that they had in storage at refineries at the end of the week,
31,016,000 barrels of gasoline and 134,302,000 barrels of gas
and fuel oil. Gasoline at bulk terminals amounted to 11,198,000 barrels and 1,307,000 barrels were in water borne
transit in or between districts. Craeked gasoline production
by companies owning 95.4% of the potential charging
capacity of all cracking units, averaged 421,000 barrels
daily during the week.
The report for the week ended Nov. 12 1932 follows in
detail.
DAILY AVERAGE PRODUCTION OF ()RUDE OIL.
(Figures In Barrels 01 42 Gallons.)
Week
Ended
Nov. 12
1932.
Oklahoma
Kansas
Panhandle Texas
North Texas
West Central Texas
West Texas
East Central Texas
East Texas
Southwest Texas
North Louisiana
Arkansas
Coastal Texas
Coastal Louisiana
Eastern (not including Michigan)
Michigan
Wyoming
Montana
Colorado
New Mexico
California
397,300
95,850
45,950
47,550
25.100
154,500
49,400
350,950
62,300
30,460
33,900
137,460
37,600
103,650
21.450
35,100
8,100
2,750
31,500
475,700
Week
Ended
Nov. 5
1932.
394,100
95,250
44,2(0
47,250
24,800
150,800
49,450
349,100
52,650
29,550
34,050
132,750
35,400
102,350
21,050
34,350
6,550
2,900
31,850
465,300
Average
4 Weeks
Ended
Nov. 12
1932.
Week
Ended
Nov. 14
1931.
396,600
96,500
45,900
47,400
24,850
154,150
50,000
351,100
62,900
29,850
33,950
129,750
35,700
101,300
22,100
34,150
8,800
2,750
31,850
478,050
543,750
102,900
60,500
57,650
28,400
196,450
56,450
411,250
55,950
29,600
37,750
125,800
32,300
110,300
14,600
38,400
7,850
3,900
44,350
507,900
2.134.360 2,103.700 2,123,450 2.464.050
Total
CRUDE RUNS TO STILLS, MOTOR FUEL STOCKS AND GAS AND FUEL
OIL STOCKS, WEEK ENDED NOV. 12 1932.
(Figures in Barrels of 42 Gallons Each.)
Daily Refining Capacity
of Plants.
District.
Reporting.
Potential
Rate.
East Coast
A p palach!an
Ind., Ill., Ky.__
Okla., Kan.. Mo.
Inland Texas
Texas Gulf
Louisiana Gulf._
No. La. & Ark_.
RockyMountain
California
Total.
644.700 638,700 99.1
144,700 137,500 95.0
434,900 424,000 97.5
459.300 405,800 88.4
315,300 219,700 69.7
555.000 545,000 98.2
148,000 142,000 97.3
84,500 94.6
89,300
152,000 139,000 91.4
915,100 868.100 94.6
Crude Runs
to Stills.
Daily OperAverage. ated.
471,000
90,000
263,000
199,000
97,000
421,000
87,000
47,000
32,000
428,000
ablotor
Fuel
Stocks.
Gas and
Fuel Oil
Stocks.
73.7 12,007,000 9,679.000
792.000
65.5 1,815,000
62.0 6,044,000 4,116,000
49.0 4,394,000 3,074.000
44.2 1,403,000 1,993,000
77.2 5,847,000 9,741,000
81.3 1,224,000 3,660,000
539,000
203,000
55.6
449,000
23.0 1,086.000
49.4 14,698,000 100,259,000
Totals weekNov. 12 1932_ 3,856,300 3,602,300 93.4 2,135,000 59.3 c48321000 134,302,000
Nov. 5 1932_ 3,856,300 3,802,300 93.4 2,000,000 55.5 c48799000 134,348,000
a Below is set out an estimate of total motor fuel stocks on U. S. Bureau of Mines
basis for week of Nov. 12 1932, compared with certain November 1931 Bureau
figures:
49,420,000 barrels
A. P. I. estimate B. of M. bats week Nov. 12 1932_b
50,439,000 barrels
U. S. B. of M. motor fuel stocks Nov. 1 1931
51,995,000 barrels
1931
30
U. S. B. of M. motor fuel stocks Nov.
which is of
report,
Economics
I.
P.
A.
with
comparison
permit
to
Estimated
b
Bureau of Mines basis.
1,307,000
terminals,
bulk
at
refineries,
11,198,000
at
barrels
• c Includes 31,016,000
barrels in trtuult, and 4,800,000 barrels of other motor fuel stocks.
d Revised in Oklahoma-Kansas district.
Shipments of Portland Cement Continued to Exceed
Output During October-Inventories Again Decrease.
The Portland cement industry in October 1932 produced
7,939,000 bbls., shipped 8,743,000 bbls. from the mills,
bbls.
and had in stock at the end of the month 17,074,030
Production of Portland cement in October 1932 showed a
decrease of 26.2% and shipments a decrease of 29.3% as
compared with October 1931. Portland cement stocks at
mills were 19.5% lower than a year ago.
In the following statement of relation of production to
capacity the total output of finished cement is compared
with the estimated capacity of 165 plants both at the close
of October 1932 and of October 1931.
RATIO OF PRODUCTION TO CAPACITY.
Oct. 1931. Oct. 1932, Sept. 1932. Aug. 1932. July 1932.
The month
The 12 months ended--
47.4%
48.6%
34.6%
29.6%
34.2%
32.1%
36.9%
30.6%
33.4%
34.2%
PRODUCTION, SHIPMENTS, AND STOCKS OF FINISHED PORTLAND
CEMENT, BY DISTRICT,S IN 1931 AND 1932 (IN THOUSANDS OF
BARRELS).
October.
Production.
District.
Eastern Pa., N. J., and Md
New York and Maine
Ohio, Western Pa., and W. Va
Michigan
Wis., Ill., Ind., and KY
Va., Tenn.,Ala., Ga.,Fla.,& La_
East. Mo.,Ia., Minn.,& S. Dak_
W.Mo., Neb., Kan., Okla.& Ark.
Texas
Colo., Mont.,Utah,Wyo.,& Ida_
California
Oregon and Washington
Stocks at End
of Month.
October.
Shipments.
1931.
1932,
1931,
1932.
1931.
1932.
2,389
1,110
904
602
1,337
1,009
975
795
601
117
698
245
1,457
488
1,053
640
1,242
488
927
634
218
185
443
166
3,123
1,231
1,139
618
1,682
1,050
995
881
583
185
882
233
1,566
668
829
865
1 375
580
'
1,308
1331
381
144
473
125
4,668
1,159
3,122
1,893
2,352
1,884
2,372
1,219
558
474
1,086
831
3,793
1,314
2,352
1,249
1,359
1,278
1,513
1,534
554
548
1,063
517
10,762 7,939 12.380 8 743 21.218 17.074
Total
PRODUCTION, SHIPMENTS, AND STOCK OF FINISHED PORTLAND
CEMENT. BY MONTHS, IN 1931 AND 1932 (IN THOUSANDS OF
BARRELS).
Month.
January
February
March
April
May
June
July
August
September
October
November
December
Production.
Stocks at End
Shipments.
of Month.
1931.
1932.
1931.
1932.
1931.
1932.
8,595
5,920
8,245
11,245
14,010
14,118
13,899
13,549
12,092
10,782
8,161
5,974
5,026
3,971
4,847
5,478
8,913
7,921
7,859
7,835
28,210
7,939
4.892
5,074
7,192
11,184
14,200
16,077
15,545
15,172
13,671
12,380
7,156
4,142
3,393
3,118
3,973
6,536
8,020
9,264
9,218
10,968
29,729
8,743
27,759
28,812
29,676
29,715
29,554
27,602
25,934
24,313
22,736
21,218
22,219
24,098
25,778
26,857
27,545
26,496
25,394
24,043
22,512
19,398
217,878
17,074
124,670
126.485
Total
a Revised.
Note.-The statistics above presented are compiled from reports for October
received by the Bureau of Mines from all manufacturing plants except three, for
which estimates have been Included In lieu of actual returns.
International Copper Conference To Be Held in
New York Nov. 28.
According to the New York "Sun" of last night (Nov. 18)
an invitation to attend an international copper conference
has been extended to the principal American and foreign
producers by the Copper Institute. It is stated that the
date set for the opening of the conference is Nov. 28. It is
expected, says the "Sun", that the subject of continuing
the copper curtailment program adopted last February will
be discussed.
Foreign Price of Copper Ranging from 5.56 to 5.70 Cents
a Pound.
Copper buying ha l stopped abroad, apparently in keeping
with the trend of liquidation characterizing many of the
security markets abroad, according to the "Wall Street
Journal" of Nov. 17, which continues:
Offerings are made of from 5.55 to 5.70 cents c.i.f. Hamburg, Havre and
Custom smelters selling under special price
ruling of Copper Exporters are offering at 5.625 cents abroad, but without
business. European price appears to be around 5.55 cents c.i.f. European
base ports.
There is no change in the domestic market. Copper is obtainable to
end of 1932 at 5% cents a pound delivered and custom smelters are asking
5% cents for first quarter. 1933, shipments. No one appears to be willing
to pay more than 5% cents for that delivery, however.
London, without any buying.
Price of Tin Plate at Pittsburgh Reduced to $4.25 a Box
-Lowest Price Since 1916.
The American Sheet & Tin Plate Co., subsidiary of the
United States Steel Corp., on Nov. 17, announced the price
of tin plate for delivery over the first half of 1933; the new
quotation being $4.25 per standard box of 100 pounds, a
reduction of 50c. Advices from Pittsburgh, Pa., to the New
York "Journal of Commerce" of Nov. 18, in stating Um also
said:
This Is the first price change since Oct. 11931, at which time a 25c. reduction went Into effect. The price reduction will undoubtedly be put into
effect by the independent makers of tin plate.
The new price Is the lowest since 1910, when,during the first nine months
of the year a price of $3.60 prevailed. A reduction in price has been expected for some time, since raw materials entering tin plate manufacture
are cheaper and since other long stabilized steel commodities, such as steel
rails, have been marked down recently,
Volume 135
Financial Chronicle
Lead Price Reduced to 3 Cents a Pound.
The American Smelting & Refining Co. reduced the price
of lead 15 points on Nov. 18 to three cents a pound.
Domestic and Foreign Copper Prices Slightly HigherZinc Moves Upward.
With selling pressure not a factor in the last week, prices
for major metals, taken as a group, developed a slightly
firmer tendency, says "Metal and Mineral Markets" in
its issue of Nov. 17. Contrasted with a week -ago, higher
yrices prevailed for copper, zinc and tin. Lead prices were
steady at the advance which occurred on the last day of
the preceding seven-day period. Copper and lead statistics
issued during the week showed no important change in
the position of these metals, though producers received
some encouragement from the apparent gains in shipments
to consumers. So far, however, the increase in the movement of these metals, in the opinion of traders, has fallen
short of expectations. Producers of copper, at the moment,
are discussing ways and means for holding world output
in check. It is added:
Copper Prices Advance.
Demand for copper in the domestic market was somewhat greater than
in the preceding week, the increase in business also being accompanied
by an advance in prices. Although the metal was available over the
first three days at 5.25 cents, sellers' views strengthened on January forward material at the very outset, and March shipment business was booked
at a 5.50 cents. Connecticut, basis. By Monday the 5.25-cent material
had disappeared and the lowest figure named was 5.375 cents, at which
figure business was booked through the first half of 1933. Even producers participated in the market on a 5.50-cent basis for January-February
shipment. One small lot of prompt metal was sold yesterday by a custom
smelter on the basis of 5.625 cents, Connecticut.
In the foreign market, business fell off slightly, compared with the
preceding week, with buyers generally preferring to watch the outcome
of producers' negotiations and the British tariff developments. Early
yesterday a rumor prevailed in the trade that enactment of the tariff
had been indefinitely postponed. Cable inquiry elicited the response
that the rumor was unfounded, and that 2d. duty on electrolytic copper
would probably be passed by Parliament, to take effect Dec. 1. No
definite statement regarding the tariff has, however, been made by the
British Government.
Informal discussions among representatives of the principal copper
producers, now in this country, are apparently supplanting, at least for
the time being, any general conference that might have been contemplated.
In some quarters these discussions are said to remove the possibility of a •
conference at this time, whereas in other directions a short meeting, to
follow the discussions, is believed probable, if for no other reason than
to give a formal tone to the conclusions reached.
Copper statistics that circulated among producers last week were interesting, as usual, out on close analysis failed to reveal that any important
change had taken place in the position of the metal. The apparent upward
movement in production, as well as in foreign deliveries, was attributaole
almost solely to the British tariff situation, which resulted in the shipment
of non-British metal to the United Kingdom.
A summary of the world statistics on copper, embracing about 90%
of the total production, all figures in short tons, follows
October.
September.
August.
Production
67.000
65,000
76,800
DeliveriesDomestic
19,700
25,500
18,300
Foreign
53,700
55,500
48,000
Totals
73,400
66,300
81,000
Stocks_ a
790,542
798,996
786,412
a Stocks In hands of producers, including supplies held for account of fabricators.
Lead Holds Recent Gain.
•
Sales of lead suffered a little contrasted with recent weeks, but sufficient
business was booked to maintain the higher level of prices announced on
the last day of the preceding week. In other words, the market held
at 3.15 cents, New York, which was also the contract oasis of the American
Smelting & Refining Co., and at 3 cents, St. Louis. Corroders again
were the principal buyers, with December metal receiving most attention.
Domestic shipments of lead in October totaled 29.764 tons, against
26,412 tons in September. The shipments were the largest since last
March and somewhat above the average for the year to date. Production
from domestic ore showed little change during the month, though a gain
was recorded in output from secondary and foreign sources. The heavy
intake of scrap before the price dropped was largely responsible for the
6,984 tons produced from secondary and foreign material.
The refined lead statistics for September and October, according to the
American Bureau of Metal Statistics, in short tons, follow
September.
October.
ProductionDomestic ore
20,498
21,092
Secondary and foreign
2,315
6.984
Totals
22,813
28,076
Stocks at beginning
175,426
171,831
Total supply
198,239
199,907
Stocks at end
171,831
170,171
Domestic shipments
26,412
29,764
Steel Output Again Shows a Slight Falling Off-Operations Now at 19% of Capacity-Price of
Steel Scrap Lower.
New business in steel products has continued to decline
in nearly all markets except Cleveland, where automotive
requirements are paramount, reports the "Iron Age" in its
review of iron and steel conditions on Nov. 17. A policy
of caution among buyers, which began to affect orders
adversely during the latter half of October, has not been
altered even with the election uncertainty out of the way.
On the contrary, the placing of some tonnage under con-
3437
sideration before the election has been indefinitely postponed.
The "Iron Age" adds:
To what extent the apathy of steel buyers is due to political uncertainty
and how much to natural year-end tendencies toward restriction of stocks
is difficult to determine. Among jobbers there is a definite indication
that pre-inventory considerations are affecting purchases, but steel stocks
in the hands of manufacturing consumers are so small that mills are constantly being urged to hurry shipments, and hence any further check upon
manufacturers' orders, if general business continue to improve, will have a
favorable reaction later on.
The automobile industry is the one major steel-consuming channel that
is pushing ahead with some degree of aggressiveness, but even here marked
activity is largely confined to a few companies, notably Chevrolet and
Plymouth. However, other makers, including Buick, Dodge, Pontiac,.
Studebaker and Willys-Overland, are also busier. Plymouth has stepped
up production to 1,200 cars a day, and some departments are working
seven days a week. November production of the industry should exceed
the extimated 50.270 units of October by a fairly good margin. Automobile accessory manufacturers are placing orders more freely for strip
steel. A Philadelphia body builder has received large contracts for car
bodies.
Railroads are slow to enter steel orders. Only one new rail contract has
been placed, 3.000 tons for the Delaware & Hudson. The Erie. which will
need approximately the tonnage taken this year, will not buy until the
end of the year. No other tonnages are definitely in sight. The New York
Central steel purchases for car and locomotive repairs probably will be
small, as material from dismantled cars will be salvaged and used again.
In the construction field there is the usual year-end letdown, notwithstanding the efforts of the Washington Administration to push building
work for aid of the unemployed. Structural steel lettings in the week were
only 8,500 tons, a small total even though it was more than double that
of the preceding week. Bids were taken this week on 11.000 tons for a
post office in Cleveland.
Miscellaneous seasonal business, which helped to left steel production
moderately in September and October, is in smaller volume.
The 1933 Um plate price probably will be announced this week. A reduction is expected, but the mere ending of the uncertainty as to the price
will undoubtedly release a number of large tin plate contracts, on which
mills will be able to roll for shipment in January and February.
Steel ingot production for the country as a whole has slipped slightly
this week to 19%. Output in some districts has declined, while in others
there has been a gain. Cleveland output is up three points to 38% of ingot
capacity, the Wheeling district is operating at 40%, mostly on anticipatory
tin plate rollings, and the Buffalo mills are doing better. However. Birmingham production has dropped to 10%, declines of smaller proportions
have occurred at Chicago and in the Youngstown area, while the Pittsburgh
mills are barely holding their recent average of 17%•
The decline in steel-making activity at Chicago has affected heavy
melting steel scrap, the minimum price of which is 25c. a ton lower, bringing
the "Iron Age" scrap composite down to $7.46. Nearly all grades have
declined at Detroit, an important scrap producing center, while at Pittsburgh there is a tendency toward weakness, though absence of transactions
leaves prices unchanged.
Pig iron and finished steel quotations are generally steady. Current
prices of sheet steel probably will be continued into the first quarter.
Leading makers of structural shapes have adopted a new plan of quoting
wherein prices will be named for delivery at the job, including fabricationin-transit rates where such apply. The effect of this may be to localize
structural steel fabrication. Following recent reductions on rails and tie
plates, a downward revision of $4 a net ton has been put into effect on
angle bars.
Continental European steel mills are booking more business, especially
from South America and China, and they have good inquiries from Scandinavia and Holland. Some Luxemburg mills are sold up to the middle of
January. Continental steel prices continue to rise.
THE -IRON AGE- COMPOSITE PRICES.
Finished Steel.
Nov. 15 1932, 1.948e. a Lb.
Based on steel bars, beams, tank plate.,
One week ago
1 94Re. wire, rails. black pipe and sheets,
One month ago
1.977c. These products make 85% of the
One year ago
2.008e. United States output.
Low.
High.
1932
1.9260. Feb. 2
1.977e. Oct. 4
1931
1.945e. Dec. 29
2.037e, Jan. 13
1930
2.018e. Dec. 9
2.273e. Jan, 7
1929
2.283c. Oct. 29
2.317o. Apr, 2
1928
2.217e, July 17
2.286e. Dec. 11
1927
2.212e. Nov. 1
2.402e. Jan. 4
Pig Iron,
Nov. 15 1932, $13.59 a Gross Ton. Based on average of basic Iron at Valley
One week ago
$13.59 furnace foundry irons at Chicago.
One month ago
13.59 Philadelphia, Buffalo. Valley and Ills'One year ago
14.96
mIngham.
Low.
High.
1932
513.59 Oct. 25
$14.81 Jan. 5
1931
15.79 Dec. 15
15.90 Jan. 6
1930
15.90 Dec. 16
18.21 Jan. 7
1929
18.21 Dec. 17
18.71 May 14
1928
17.04 July 24
18.59 Nov.27
1927
17.54 Nov. 1
19.71 Jan. 4
Steel Scrap.
Nov. 15 1932, $7.43 a Grass Ton.
Based on No. 1 heavy melting steel
One week ago
$7.50 quotations at Pittsburgh, PhIladelPhla
One month ago
7.51 and Chicago.
One year ago
8.75
High.
Low.
1932
$8.50' Jan. 12
$6.42 July 5
1931
11.38 Jan. 6
7.62 Dec. 29
1930
15.00 Feb. 18
11.25 Dec. 9
1929
17.58 Jan. 29
14.08 Dec. 3
1928
16.50 Dec. 31
13.08 July 2
1927
15.25 Jan. 11
13.08 Nov.22
"Steel" of Cleveland, in its summary of the iron and steel
markets, on Nov. 14 stated:
Practically single-handed, automotive requirements for new models now
being put into production sustained steelmaking operations at 21% in the
week ended Nov. 12.
Cleveland mills expanded 134 points to 35%; Pittsburgh, with some support from tin plate, rose 1 point to 20; Birmingham and Buffalo were a
shade stronger at 25 and 22, respectively; Chicago and eastern Pennsylvania were steady at 18 and 1334: Youngstown eased 255 Points to 17
.
This maintained steel rate, however, is contrary to the increasing listlessness of the market situation. Rolling of automotive material should hold
up for several weeks, and tin plate mills continue to anticipate first quarter
shipments, but the shrinkage from other consumers may prove decisive.
An element of strength is derived from the fact that United States Steel
Corp. unfilled orders increased Oct. 31 for the third consecutive month
despite a higher rate of production. September output of steel ingots, at
Financial Chronicle
17.3%, was a gain of 3 points over August; October at 19% was a rise of
almost 2 points; the first half of November has averaged 21%.
Thus far the result of the national election has had no effect on the
markets, except the negative one of prolonging the indifference of most
buyers. The industry, however, is confident that if the improvement since
August is basic it will survive, and that recovery of business is as essential
to the new administration as the old, and hence new policies will be tempered.
Expanding automobile assemblies are largely seasonal, and with the exception of Plymouth and Chevrolet, the outpouring of new models is rigidly
restricted to dealer and show requirements. But the aggregate of these
minimum schedules will lift November considerably over the alltime low
of 50,000 units in October, and probably also insures an active December.
Railroad budgets are not sufficiently advanced to release any rail tonnage, and R. F. C. loans are disappointingly slow in conjuring up actual
rollings. Norfolk & Western has placed 1,500 tons of plates, with some
New York Central inquiry for repairs to 13.000 cars near. The St. LouisKansas City Short Line has applied for an R. F. C. loan for track improvements requiring 91.360 tons of rails, 4,650 tons of angle bars and 2,635.000
tie plates.
Structural steel awards, totaling 8,887 tons, again were below the yearly
average. Chicago has 10.000 tons active, chiefly bridges and public work,
and 9,700 tons for the Golden Gate bridge approach is near letting. The
28,000 tons of cable for this bridge has been formally placed. Concrete
bar awards, at 1,350 tons, also were exceptionally low. Los Angeles has
bought 7,443 tons of cast iron pipe, chiefly from the United States Pipe &
Foundry Co. Bids are in on the 4,000-ton pipeline for the Pure 011 Co.,
Chicago.
Shipments of pig iron continue to outrun those of October, but further
buying is conspicuously lacking. In the absence of fresh demand, scrap
prices are growing easier. Pittsburgh dealers have cut their asking price
for steel scrap 25 cents, to $8.75, with no takers. Italy is inquiring for
5,000 to 10,000 tons of scrap for December and January shipment.
No actual increase in production is reported, but inquiry for stainless
steel for the brewing industry has been stimulated by the election.
All composites of the magazine "Steel" are unchanged this week-iron
and steel at $29.32, finished steel at $47.70. scrap at $6.91. But there is
an easier tendency in many products, which the customary year-end apathy
of buyers may accentuate. Light rails are definitely off $2, and spiegeleisen
$1. On sheets for the automotive industry reductions have been made.
Steel ingot production for the week ended Monday (Nov.
14) is placed at a shade over 19% of theoretical capacity,
according to the "Wall Street Journal" of Nov. 16. This
is unchanged from the rate of a little over 19% in the preceding week and compares with 19%2% two weeks ago, adds
the "Journal" continuing:
U. S. Steel is credited with an average of 18% against a fraction under
that figure in the week before, and 17% two weeks ago. Leading independents are placed at a little under 21%, compared with 21% in the
previous week and nearly 22% two weeks ago.
In the corresponding week of last year the average was down about 1%,
to nearly 31%. U. S. Steel showed a decline of 3% to a fraction over 31%,
while independents were up approximately 1% to 30% %. In 1930 operations were unchanged, the industry being at 43%, U. S. Steel at between
47% and 48% and independents about 41%. For the like week of 1929
there were declines of 2%, the average being above 71%, with U. S. Steel
at 73% and independents 70%. while in the like period of 1928 the industry
showed a loss of 1%% to 81%. U. S. Steel being down about 1% to be
tween 79% and 80% and independents falling 2% to 82%.
International Wire Cartel Increases Prices.
The Department of Commerce at Washington on Nov. 15
said:
A substantial rise in the demand for wire on all markets served caused
the International Wire Cartel, as represented by its sales organization
"IWECO," to approve recommended price increases recently at its meeting
in Brussels. according to a report to the Department of Commerce from
Commercial Attache R. C. Miller. Brussels.
A second phase of the Cartel's price policy was also held to oe a success'. e., the fixing of different rates for each country, competition from nonCartel sources having peen greatly reduced.
The meeting also decided that a revision of the provisional production
quotas was in order, as, to quote an example cited, in the last few months
part of the orders on German mills were handed over to the Belgian membership which was not then so well provided with orders. The Cartel did
not attempt this revision at the last meeting, but plans to hold a second
meeting in the near future to establish definite quotas.
The quotas under which the Cartel is at present operating (which are
based on exports in 1928-30) are as follows:
53.4%
384,000 tons
Germany
35.3%
Belgium
252,000 tons
6.0%
43,000 tons
Czechoslovakia
4.0%
28,500 tons
Netherlands
0.7%
Hungary
6,000 tons
Denmark
4,500 tons
0.6%
718,000 tons
French
Retailers
Reach
Price
Agreement on
100.0%
Steel
Products.
French retailers of steel products have reached an agreement defining a uniform sales policy on all sales less than
10 tons, according to a report to the Commerce Department
from Trade Commissioner W.L. Finger, Paris. The Department on Nov. 14 added:
Acting under auspices of the Comptoir Siderurgique, French retailers
will add 6 francs to the price of each 100 kilos: 8 francs for orders between
two and five tons; 13 francs on purchases from 250 kilos to two tons: 16
francs per 100 kilo on sales under 250 kilos.
How this scale of increases will apply is shown in the following example:
Merchant bars are quoted by the Comptoir Siderurgique at 53 francs per
100 kilos at Thionville. while freight to Paris will add 10 francs. A Parisian
merchant then receives an order for two tons of merchant bars and quotes
a price of 71 francs per 100 kilos. Had his order been for 6 tons the price
would have been 69 francs per 100 kilos, while had it only been for 500
kilos he would have quoted 76 francs.
Retailers may apply even larger increases than those given above if they
desire, but the establishment of these minimum increases is expected to
Nov. 19
1932
result in less keen price competition. On its part the Comptoir Siderurgique
retains its liberty of selling to anyone who wishes to be supplied by it, but
If it sells at retail it must observe the price regulations. It is thought that
purchasers of small quantities will not gain by buying from the Comptoir.
(A franc equals about 4 cents, U. S. 1 kilo is equal to about 21-5 pounds).
Production of Bituminous Coal and Anthracite Again
Declines.
According to the United States Bureau of Mines, Department of Commerce, production of bituminous coal and
Pennsylvania anthracite again fell off during the week ended
Nov. 5 1932, amounting to 7,300,000 net tons and 893,000
tons, respectively. This compares with 7,475,000 tons of
bituminous coal and 1,001,000 tons of anthracite during
the preceding week and 7,690,000 tons of bituminous coal
and 1,149,000 tons of anthracite during the corresponding
period last year.
During the calendar year to Nov. 5 1932 there were produced an estimated total of 249,727,000 net tons of bituminous coal, as against 323,865,000 tons during the calendar
year to Nov. 7 1931, while anthracite output amounted to
40,697,000 net tons, as compared with 51,883,000 tons
during the corresponding period last year. The Bureau's
statement follows:
Production of both bituminous coal and anthracite declined in the
week ended Nov.5 1932. The total output of bituminous coal is estimated
at 7,300,000 net tons, a decrease of 175,000 tons, or 2.3%, from the preceding week. Production during the corresponding week of 1931 amounted
to 7,690.000 tons.
Anthracite production during the week of Nov. 5 is estimated at 893,000
net tons. This indicates a decrease of 108,000 tons, or 10.8%, from
the preceding week, and compares with 1,149,000 tons produced during
the same week of 1931.
Production of beehive coke during the week of Nov. 5 is estimated at
18,200 net tons. This is in comparison with 19,000 tons in the preceding
week and 26,500 tons in the corresponding week of 1931.
ESTIMATED UNITED STATES PRODUCTION OF COAL AND BEEHIVE
COKE (NET TONS).
Week Ended.
Nov. 5
1932.c
Oct. 29
1932.d
Calendar Year to Deus.
Nov. 7
1031.
1932.
1931.
I
1929.
Bitum. coal aWeekly total 7,300,000 7,475,000 7,690,000 249,727,000 323,865,000,450,007,000
Daily aver_ _ 1,217,000 1,247,000 1,282,000
952,000 1,233,00W 1,714,000
Pa. antbra,bWeekly total 893,000 1,001,000 1,149,000 40,697,000 51,883,000 61,751,000
Daily aver_ _ 148,800 200,200 191,500
156,800
238,000
199,900
Beehive coke19,000
18,200
Weekly total
26,500
609,900 1,113,600 5,766,700
3,167
3,033
4,417
Daily aver ...
2,302
21,761
4,202
a Includes lignite, coal made into coke, local sales, and colliery fuel. b Includes
Sullivan County, washery and deredge coal, local sales, and colliery fuel. c Subject
to revision. e Revised.
ESTIMATED WEEKLY PRODUCTION OF COAL BY STATES(NET TONS).
State.
Week Ended.
Oct. 29 '32. Oct. 22 '32. Oct. 31 '31. Nor. 1 '30.
Alabama
Arkansas and Oklahoma
Colorado
Illinois
Indiana
Iowa
Kansas and Missouri
Kentucky-Eastern
Western
Maryland
Michigan
Montana
New Mexico
North Dakota
Ohio
Pennsylvania (bituminous)
Tennessee
Texas
Utah
Virginia
Washington
West Virginia--Southera-•
Northern_ b
Wyoming
Other states
207,000
110,000
134,000
717,000
283,000
78,000
122,000
703,000
181,000
26,000
10,000
32,000
29,000
60,000
352,000
1,891,000
68,000
13,000
78,000
200,000
37,000
1,653,000
383,000
116,000
2,000
194,000
119,000
111,000
837,000
306,000
91,000
143,000
737,000
244,000
26,000
9,000
31,000
27,000
42,000
392,000
1,833,000
67,000
12,000
85,000
217,000
41,000
1,741,000
431,000
112,000
2,000
102,000
127,000
164,000
942,000
278,000
78,000
114,000
669,000
185,000
43,000
13,000
53,000
34,000
48,000
422,000
1,921,000
83,000
18,000
91,000
209,000
50,000
1,652,000
512,000
117,000
1,000
Total bituminous coal
Pennsylvania anthracite
7,475,000
1,001,000
7,850,000
1,367,000
8,016,000
1,309,000
,..
..,
to
.o'c w. .1,,cl
tO®
wi...z.w
cowo,r.omocio?...3.0.t.amowcwo.
000bo
-g8§888§§§§1§§88888§800000
oo 000
00000 000000
3438
10,275,000
1,404.000
Total coal
8,476.000 9.217000 n 225 non ii 570 000
a Includes operations on the N.& W.;C.& 0.; Virginian; K.& at., and B.C.& G.
b Rest of State, Including Panhandle.
A Further Gain in Anthracite Shipments Noted During
October.
Shipments of anthracite for the month of October 1932, as
reported to the Anthracite Bureau of Information, Philadelphia, amounted to 4,248,463 gross tons. This is an increase as compared with shipments during the preceding
month of September, of 976,782 tons, and when compared
with October 1931, shows a decrease of 946,505 tons. Shipments by originating carriers are as follows:
Month ofOct. 1932.
Reading Company
974,910
Lehigh Valley RR
670,728
Central RR.of New Jersey
328,099
Delaware Lack. & Western P.R.
470,651
Delaware & Hudson RR. Corp._
429,844
Pennsylvania RR
481,535
Erie Railroad
503,617
N.Y. Ontario & Western Ay_ _
211,605
Lehigh & New England RR
177,474
Total
4,248,463
Sept 1932. Oct. 1931.
638,095 1,238,358
473,498
856,133
287,051
434,465
381,695
568,609
392,905
646,338
361,403 I 489,382
379,473
533,170
211,238
215,667
141,894 • 217,275
Seps.1931.
874,713
477,870
286,081
359,737
415,485
353,313
260,811
198,641
146,275
3,271,681 1.5,194,968
3,372.928
3439
Financial Chronicle
Volume 135
G. B. Southward of American Mining Congress Reports
30% Increase in Combustion Efficiency by Consumers of Coal Compared with 20% Production
Increase by Coal Mine Operators
A 30% increase in combustion efficiency by the consumers
of coal is compared with the 20% production increase by
coal mine operators in a report of G. B. Southward, mining
engineer of the American Mining Congress. Mr. Southward on Nov. 9 stated:
These are average figures and include all bituminous coal mines. While
the average figures show that coal producers as a whole have not kept
pace with the advancement made by consumers, the accomplishments of
those operations that have been modernized indicate that coal mining can
be developed to equal and surpass the efficiency made in combustion
performances.
The report to be printed in the November "Mining
Congress Journal" states four classes of coal customers
used 210,000,000 tons of coal in 1930. It is further stated:
If these customers had been operating on the fuel efficiency basis of a
decade ago, they would have required 300,000,000 tons. Industrial
steam plants, which also have improved and modernized their boiler
practice, are not included in these figures. The average increase in combustion efficiency by the major coal users is around 30%.
While these fuel economies were becoming effective, coal operators were
also becoming more efficient. During the same decade the production
for all men engaged in bituminous coal mining was increased from 4.2
tons per man-day to 5.06 tons. This amounts to an increase of 20% in
the productive rate per man, and represents the increase in the operating
efficiency of the bituminous coal mine industry as a whole.
Power stripping methods were used in taking out some 20.000.000
tons of bituminous coal in 1930 as compared with only 5,000,000 tons
mined by this method in 1921. The 8.3 tons per man-day taken out of
strip pits in 1921 was increased to 16.2 tons in 1930—an increase of 100%
in production efficiency.
Coal cutting machines in 1921 handled 272.000,000 tons and 362,000.000
tons in 1930. An average of 14,000 tons per machine in 1921 was increased
to an annual production of 25,000 tons in 1930—an increase of 64% in the
capacity of the machines and men employed In coal cutting.
All coal was loaded into mine cars by hand shovelling in 1921; mechanized
loading accounted for the handling of 47,000,000 tons in 1930.
The report likewise says:
Fuel economies are designed by the consumer to reduce heat and power
costs and not primarily to conserve coal as a natural resource. The consumer is entitled to the saving. However, it is pointed out that economies
made in the use of coal have not been equaled by a corresponding increase
in the efficiency of coal production. Coal mining has suffered as a result,
and coal consumers have profited.
Current Events and Discussions
The Week with the Federal Reserve Banks.
The daily average volume of Federal Reserve bank credit
outstanding during the week ending Nov. 16, as reported by
the Federal Reserve banks, was $2,205,060,000, a decrease
of $18,000,000 compared with the preceding week and an
increase of $169,000,000 compared with the corresponding
week in 1931. After noting these facts the Federal Reserve
Board proceeds as follows:
On Nov. 16, total reserve bank credit amounted to $2,208,000,000, an
increase of $9,000,000 for the week. This increase corresponds with an
increase of $58,000,000 in member bank reserve balances, offset in part by
increases of $14,000,000 in monetary gold stock and $11.000.000 in Treasury
currency, adjusted, and by decreases of $22,000,000 in money in circulation
and 82,000,000 in unexpended capital funds, nonmember deposits, &c.
Holdings of discounted bills declined $4,000,000 at the Federal Reserve
Bank of San Francisco and the same amount at all Federal Reserve banks.
The System's holdings of United States Treasury notes increased $5.000,000, while holdings of Treasury certificates and bills declined by the
same amount.
Beginning with the statement of May 28 1930, the text
accompanying the weekly condition statement of the Federal
Reserve banks was changed to show the amount of Reserve
bank credit outstanding and certain other items not included
in the condition statement, such as monetary gold stocks
and money in circulation. The Federal Reserve Board's
explanation of the changes, together with the definition of
the different items, was published in the May 31 1930 issue
of the "Chronicle" on page 3797.
The statement in full for the week ended Nov. 16, in
comparison with the preceding week and with the corresponding date last year, will be found on subsequent pages,
namely, pages 3483 and 3484.
Changes in the amount of reserve bank credit outstanding
and in related items during the week and the yeat ending
Nov. 16 1932, were as follows:
Increase (÷) or Decrease (—)
Since
Nov. 16 1932. Nov. 9 1932. Nov. 18 1931.
Bills discounted
Bills bought
U. S. Government securities
Other Reserve bank credit
3
307,000,000
35,000,000
1,851,000,000
16,000,000
TOTAL RES'VE BANK CREDIT_ _ 2,208,000,000
Monetary gold stock
4 284,000,000
Treasury currency adjusted
1,929,000,C00
Money in circulation
5 629,000,000
Member bank reserve balances
2,400,000,000
Unexpended capital funds, non-member deposits, asc
392,000,000
CONDITION OF WEEKLY REPORTING MEMBER BANKS IN CENTRAL
RESERVE CITIES.
New York.
Loans and investments—total
Nov. 16 1932. Nov. 9 1932. Nov. 18 1931.
$
7,026,000,000 7,044,000,000 7,262,000,000
Loans—total
3,381,000,000 3,420,000,000 4,525,000,000
1 555,000,000 1,570,000,000 2,297,000,000
1 826,000,000 1,850,000,000 2,228,000,000
On securities
All other
3 645,000,000 3,624,000,000 2,737.000,000
Investments—total
2,576,000,000 2,555,000,000 1,702,000.000
I 069,000,000 1,069,000.000 1,035,000,000
U. S. Government securities
Other securities
Reserve with Federal Reserve Bank__ - _1,026,000,000
36,000,000
Cash in vault
969,000,000
41,000,000
731,000,000
48,000,000
Net demand deposits
Time deposits
Government deposits
5,558,000,000 5,476,000,000 5,363,000,000
910,000,000 910,000,000 909,000,000
205,000,000 214,000,000
27,000,000
Due from banks
Due to banks
82,000,000
85,000,000
1 444,000,000 1,419,000,000
Total
Om demand
On time
Loans and investments—total
61,000,000
887,000,000
16,000,000
Borrowings from.Federal Reserve Bank_
Loans on secur. to brokers & dealers
For own account
For account of out-of-town banks_
For account of others
326,000,000
12,000,000
6,000.000
341,000,000
13,000,000
6,000,000
623,000.000
140,000,000
12,000,000
344,000,000
360,000,000
775,000,000
189,000,000
155,000,000
203,000,000
157,000,003
560,000,000
215,000.000
Chicago.
1131.000,000 1,141,000,000 1,671,000,000
659,000,000
664,000,000 1.169.000,000
369,000,000
290,000,000
372,000,000
292,000,000
691,000,000
478,000,000
472,000,000
477,000.000
502,000,000
280,000,000
192,000,000
285,000,000
192,000,000
285,000,000
217,000,000
Reserve with Federal Reserve Bank.—
Cash in vault
279,000,000
16,000,000
271,000,000
18,000,000
155,000.000
14,000.000
Net demand deposits
Time deposits
Government deposits
882,000,000
323,000,000
26,000,000
889,000,000 1,114,000,000
323,000,000 436,000,000
28,000,000
3,000,000
Due from banks
Due to banks
230,000,000
318,000,000
223,000.000
308,000,000
—355,000,000
—499,000,000
+1,124,000,000
+12,000,000
—32,000,000
Loans—total
+9,000,000
+14,000,000
+11,000,000
22,000,000
+58,000,000
+236,000,000
—86,000,000
+154,000.000
+158,000.000
+276,000,000
Investments—total
2,000,000
—130,000,000
—4,000,000
+1,000,000
Returns of Member Banks in New York City and
Chicago—Brokers' Loans.
Beginning with the returns for June 29 1927, the Federal
Reserve Board also commenced to give out the figures of
the member banks in New York City, as well as those in
Chicago, on Thursday, simultaneously with the figures for
the Reserve banks themselves and for the same week, instead'
of waiting until the following Monday, before which Um( the
statistics covering the entire body of reporting member
banks in the different cities included cannot be got ready.
Below is the statement for the New York City member
banks and that for the Chicago member banks, for the
current week, as thus issued in advance of the full statement
of the member banks, which latter will not be available until
the coming Monday. The New York City statement, of
course, also includes the brokers' loan of reporting membel
banks. The grand aggregate of brokers' loans the present
week shows a decrease of $16,00),000, the total of these
loans on Nov. 16 1932 standing at $344,000,000, as compared
with $331,000,000 on July 27 1932, the low record for all
time since these loans have been first compiled in 1917.
Loans "for own account" decreased from $341,000,000 to
$326,000,000, and loans "for account of out-of-town banks"
from $13,000,000 to $12,000,000 while loans "for account of
others" remain unchanged at $6,000,000.
On securities
All other
U. S. Government securities
Other securities
Borrowings from Federal Reserve Bank..
117,000,000
256,000,000
2,000,000
Complete Returns of the Member Banks of the Federal
Reserve System for the Preceding Week.
As explained above, the statements for the New York
and Chicago member banks are now given out on Thursday,
simultaneously with the figures for the Reserve banks themselves and covering the same week, instead of being held
until the following Monday, before which time the statistics
covering the entire body of reporting member banks in 101
cities cannot be got ready.
In the following will be found the comments of the Federal
Reserve Board respecting the returns of the entire body of
3440
Financial Chronicle
reporting member banks of the Federal Reserve System for
the week ended with the close of business on Nov.9:
The Federal Reserve Board's condition statement of weekly reporting
member banks in leading cities on Nov. 9 shows an increase for the week
of $44,000.000 in net demand deposits, and decreases of $50,000,000 in
Government deposits, $22,000,000 in reserve balances with Federal Reserve
bank and $6,000.000 in borrowings from Federal Reserve banks. Total
loans and investments show no change for the week.
Loans on securities declined $8,000,000 at reporting member banks in the
New York district and $16,000,000 at all reporting member banks. "All
other" loans increased $21,000,000 in the New York district and declined
$9,000,000 in the Boston district, all reporting banks showing no change
for the week.
Holdings of United States Government securities increased $20,000,000
In the New York district and $9,000.000 in the Philadelphia district, and
declined $10,000,000 in the Boston district, all reporting banks showing an
increase of $7,000,000 for the week. Holdings of other securities increased
$10,000,000 in the New York district and $9,000,000 at all reporting banks.
A summary of the principal assets and liabilities of weekly reporting
member banks, together with changes during the week and the year ending
Nov. 9 1932, follows:
Increase (+) or Decrease (—)
Since
Nov. 9 1932.
Nov. 2 1932.
Nov. 11 1931.
8
Loans and investments—total _ __ _19,026,000,000
—2,007,000,000
Loans—total
On securities
All other
Investments—total
10.425.000,000
--16,000,000 --2,996,000,000
4,295,000,000
6,130,000,000
--16,000,000 --1,553,000,000
—1,443,000,000
8,601,000,000
+16,000.000
U. S. Government securities_ — _ 5,291,000,000
Other securities
3,310,000,000
Reserve with F. It. banks
Cash in vault
Net demand deposits
Time deposits
Government deposits
Due from banks
Due to banks
Borrowings from F. R. banks--
+989,000,000
+7,000,000 +1,192,000,000
+9,000,00) —203,000,000
1,907,000,000
217,000,000
—22,000,000
+28,000,000
+324,000,000
—37,000,000
11,505,000,000
5,707,000,000
484,000,000
+44,000.000
—2,000,000
—50,000,000
—782,000.000
--549,000,000
+395,000,000
1.618,000,000
3,294,000,000
+29,000,000
+63,000,000
+561,000,000
+668,000,000
99,000,000
--307,000.000
J. P. Morgan Returns from Abroad—Finds Outlook in
England More Hopeful.
J'. P. Morgan returned from Europe on Nov. 17 on the
North German Lloyd liner Europa after spending four
months abroad in England, France and Scotland.
In his cabin the banker said the attitude in England toward
the general outlook was more hopeful, according to the New
York "Times" of Nov. 18 in which he was quoted as follows:
"Do you think there is any justification for this optimism," he was
asked.
"There must be," he replied.
He was reminded that on his return several years ago he had said the
English had seemed more optimistic because the elections had been finished
there, and he was asked if he thought things would improve in this country,
"now that the elections are over."
"It is a long time to wait for March the fourth," Mr. Morgan said.
His observations were qualified by his repeated statement that "I am
no prophet."
Mr. Morgan was besieged, with the arrival of the steamer
by cameramen, who despite the banker's known reluctance
to be photographed, snapped his picture. Mr. Morgan's
departure for Europe in July was noted in our issue of July 23,
page 565.
Reported Year-End Changes in Kuhn, Loeb & Co.—
Elisha Walker to Be Admitted as Partner and
Jerome J. Hanauer to Retire.
Regarding reported prospective changes in the banking
house of Kuhn, Loeb & Co. of this city, the New York
"Times" of Nov 18 had the following to say:
Elisha Walker, former head of Transamerica Corporation and one of the
central figures in the battle for control of that organization which finally
was won by its founder, A. P. Glannini, will become a partner in Kuhn,
Loeb & Co. on Jan. 1, and on the same date Jerome J. Hanauer wilt retire.
Neither Mr. Hanauer nor Mr. Walker would comment on the matter,
and other members of Kuhn, Loeb & Co. said no formal announcement
concerning changes in the firm would be issued before Dec. 15, the usual
time in the Wail Street district for announcing firm changes. Reports that
Otto H. Kahn planned to retire because of ill health were denied. It was
stated that Mr. Kahn was now in excellent health.
Walker's Banking Career.
Mr. Walker will enter the banking house with nearly thirty years of
experience in Wall Street. In 1904 he entered the employ of William Salomon
& Co., becoming a partner in that firm in 1909. Subsequently, with the
merger of this house with Blair & CO. in 1920 into the banking house of
Blair & Co , Inc.. Mr. Walker was named president and chairman of the
board. In May. 1929. Blair & Co., Inc., became part of the BancamericaBlair Corporation, with the Blair interests contributing $50,000,000 of
capital.
Mr. Hanauer became a partner in Kuhn. Loeb & Co. in 1912. The only
two older partners in the firm are Felix M. Warburg and Otto H. Kahn,
who entered in 1897. Other present partners, in the order of their admission.
are George W. Bovenizer, Lewis L Strauss, Sir William Wiseman. John M.
Schiff, Gilbert W. Kahn, Frederick M. Warburg and Benjamin J. Mittenwieser.
In Firm Twenty Years.
Mr. Hanauer is one of the senior partners of the firm, having been in
career
in the Street covered four decades. His friends
it twenty years. His
in the banking world have been aware for more than a year of his intention
to retire and be relieved of routine business that he might devote himself
more closely to matters in which he is particularly interested. He has
Nov. 19 1932
participated in transactions running into billions of dollars, not only in
the
United States but also in Europe. In Wall Street his name has been
associated particularly with railroad financing, the firm's main field of activity,
although he has been active in all branches of finance in which the house
is
Interested.
Mr. Hanauer and Mr. Walker have had associations since the
latter was
connected with William Salomon & Co., a firm that was merged with Blair
& Co.
Mr. Hanauer participated in the reorganization of the Missouri Pacific
Railroad and the Chicago, Milwaukee, St. Paul & Pacific.
Aid Railroad Equipment Buy.
At the time of the World War he was chairman of the committee that
arranged the financing for the purchase of $400,000,000 of railroad
equipment for the railroad administration. He was consulted in the Liberty
loan
financing and was associated with Eugene Meyer, chairman
of the War
Finance Corporation, helping to provide funds for the railroads.
He is a former Vice-President and trustee of the Investment Bankers'
Association and is a director of the Westinghouse Electric
and Manufacturing Company, the Hudson & Manhattan Railroad and other cornpan es. He is President of the Loeb Memorial Home for Convalescents,
which was founded and endowed by the children of Solomon
Loeb, one of
the founders of the firm. For twenty years he has been a trustee of the
Young Men's Hebrew Association. He is expected to
remain active in business and pnilanthropy after Jan. 1.
Kuhn,L-eb & Co.,one of the most powerful banking houses of the world,
was formed on Feb. 1, 1867, by two prosperous commission merchants of
Cincinnati, Ohio, Abraham Kuhn and Solomon Loeb, who decided to come
to New York and enter the private banking field. Jacob H. Schiff became
a member of the firm in 1875 and became directing head after the death of
the original partners until his death in 1920. In
1875 Abraham Wolff,
father-in-law of Otto H. Kahn, also became a partner and served until his
death in 1900.
Meetings of Bank for International Settlements Hereafter Secret—With Reparations Ended, Will
Become Private Institution—Renewal of Credit to
Reichsbank.
From the New York "Journal of Commerce" we take the
following from Basle, Switzerland, Nov 14:
For the first time to-day the regular meeting of the directors
of the Bank
for International Settlements was followed by no communique. This
rule
will be followed in the future.
It was learned that the directors now feel that with the ending of
German
reparations payments the B. I. S. becomes a private bank.
Consequently
there is no reason why the meetings of its directors should be made public.
There is much concern as to future functions of the Bank. It was
formed
for the purpose of handling reparations payments and in the
framing of the
charter certain incidental functions, such as trading in foreign
exchange and
acting as a foreign exchange clearing house, were conferred upon it.
With the settlement of allied war debts to the United States,
reorations
payments in accordance with the resolution at Lausanne, will
go into discard. This will rob the Bank of one of Its functions. Regulation
of foreign
exchange became an impossibility more than a year ago when the
run on
Central European banks commenced. After Great Britain
went off the
gold standard the foreign exchange functions of the B. I. S. were
all but
eliminated.
It is understood that the directors who are the Governors of the
European
Central banks again went on record to-day in favor of the gold
standard.
What conditions were attached to this recommendation is not
yet known.
Almost as a matter of routine the directors again renewed the
$90,000,000
credit to the Reichsbank, subject to similar renewals by the
Central banks
of the United States, England and France.
Directors of Bank for International Settlements
See
Financial Upturn—Some Countries Already Benefiting, They Hold.
The following (Associated Press) from Basle, Switzerland,
Nov 14, is from the New York "Times":
It was learned from authoritative sources to-night that an unofficial
session of directors of the Bank to? International Settlements Sunday was
devoted to disucssion of the present world monetary situation and that their
general view was optimistic.
Recent political developments, including declarations of responsible
statesmen such as Premier Herrlot and Chancellor von Papen,the French
disarmament plan and the election of a new President in the United States,
were reported to have created, in the opinion of international financial
circles, a lessening of the strain in the monetary situation, already bringing benefits to certain countries.
The monetary status in Germany in the past month, for example, was
reported to contrast favorably with the two previous months, while
the
situation in Austria also was said to be better.
Members of the bank directorate, who are on the preparatory committee
for the World Economic Conference, were understood to have
informed their
colleagues of the progress of their work and, while not minimizing difficulties, were said to be not as pessimistic as might have been thought.
Because of the likelihood of long negotiations on the American debt
question and the improbability of their settlement until after March
4.
When President-elect Roosevelt takes office, it was believed the economie
conference probably would not assemble before tho middle of next year.
Request by Great Britain and France to United States
for Conference Looking Toward Review of War
Debt Agreements—Suspension of Payments Pending New Arrangement Asked.
• On Nov. 13 the State Department at Washington made
public communications delivered to the Department in
behalf of the British and French governments in which a
conference is sought with the United States Government
on the subject of war debts. In the British note the belief
is expressed "that the regime of intergovernmental financial
obligations as now existing must be reviewed." The note
also says:
They the British Government] are profoundly Impressed with the
Importance of acting quickly; and they earnestly hope that the United
Financial Chronicle
Volume 135
States Government will see its way clear to enter into an exchange of views
at the earliest possible moment.
The memorandum from the French Government "proposes to the Government of the United States to join with it
in a further study of the debt question." In both instances
a suspension of payments is asked pending the outcome of
the conferences.
The notes were delivered to the State Department by the
British Ambassador, Sir Ronald Lindsay, and the French
Ambassador, Paul Claudel, on respectively, Nov. 10 and 11.
From the Washington advices Nov. 13 to the New York
"Times" we quote the following:
The British note asserts that the Hoover moratorium failed to correct
the economic problems at which it was aimed, through the suspension of
the debt payments due last Dec. 15 and June 15. Both governments
suggest further postponement of payments so a new program may be
devised.
Neither note recognizes that the Congress which meets on Dec. 5 must
agree to further postponements of interest, for under the settlement agreements only payments of principal, a minor factor, may be postponed
without Congressional approval. Only 10 days will intervene between the
meeting of Congress and the date on which the next payments are due.
While all official comment on the notes is being withheld pending President Hoover's return to Washington from his tour of the West, observers
here see in the notes several indications of great importance, of which the
chief are:
Great Britain and France each cite the Hoover-Laval communique of
Oct. 25 1931,suggesting early action of European powers, as the motivating
force behind the recent Lausanne conference, at which German reparation
payments were cut to $714,000,000.
A suggestion that this Government, in the matter of war-debt collections,
follow the example of the parties to the Lausanne conference and postpone
collections during the period of negotiations is considered as a broad hint
that this Government prepare to scale down debt payments in a new debt
settlement comparable to the reductions proposed at Lausanne.
Some observers profess to see in the notes an implied desire that the
United States permit war debts to be placed on the agenda of tho World
Monetary and Economic Conference to be held In London at an indefinite
future date.
The British note is dated Nov. 10 and addressed to Secretary of State
Stimson as a communication from Sir Ronald Lindsay, British Ambassador.
The French note is in the form of a "Memorandum of the French Government," forwarded from Paris on Nov. 10 and not signed by any off dal.
A note from Belgium similar to those from Great Britain
and France is given elsewhere in our issue to-day. The
text of the British note as made public by the State Department follows:
BRITISH EMBASSY.
Washington, D. C., Nov. 10 1932.
To Hon. Henry L. Stimson,
Secretary of State of the United States,
Washington, D. C.
Sir:
It will be remembered that on June 22 1931, His Majesty's Government
In the United Kingdom subscribed wholeheartedly to the principle of the
proposal made by the President of the United States on the preceding day
for the postponement during one year of all payments on intergovernmental
debts. The object of this proposal, as stated at the time, was to relieve
the pressure of the difficulties resulting from the fall in prices and lack of
confidence in economic and political stability, and to assist In the re-establishment of confidence.
2. The hopes which were early raised by the President's initiative have
unfortunately not been realized, and the economic troubles which it was
designed to alleviate have not come to an end. Indeed, in October of
last year, the communique published at Washington on the occasion of
Monsieur Laval's visit already recognized that "prior to the expiration of
the Hoover year, some agreement on intergovernmental obligations may be
necessary covering the period of the business depression. The initiative
In this matter should be taken early by the European powers principally
concerned within the framework of the agreements existing prior to July 15
1931." To-day many thoughtful men throughout the world are convinced
that if the depression is to be overcome, further remedial measures must be
sought.
3. It was in accordance with the recommendation quoted above that
In June last the European creditor powers met at Lausanne to agree on a
lasting settlement of the problem created by intergovernmental payments
In respect of reparations. The series of agreements reached on July 9 aims
at the ultimate termination of all reparations payments. It represents
the maximum contribution in the field of intergovernmental finance which
the governments concerened have so far been able to make toward that
early restoration of world prosperity in which the people of the United
States, no lees than those of the British Commonwealth of nations, have so
deep an interest, and for the achievement of which the co-operation of the
United States is essential.
4. On the nature of the remedial measures that may have to be adopted,
it is not proposed now to say more than that, in the recent past, His
Majesty's Government in the United Kingdom have frequently expressed
their view, and that neither in the realm of theory nor in that of fact are
they able to find any reason for amending it. They believe that the
regime of intergovernmental financial obligations, as now existing, must be
reviewed. They are profoundly impressed with the importance of acting
quickly* and they earnestly hope that the United States Government will
see its way to enter into an exchange of views at the earliest possible moment.
5. The immediate objective of the present note, however, is of a more
limited nature. On Dec. 15 the next instalment of the British war debt
is due to be paid. It is not possible to hope that agreement can be achieved
in five weeks on matters of such vast scope. Confronted last summer with
a similar difficulty, the conference of Lausanne found it necessary, in order
to allow its work to proceed undisturbed, to reserve during the period of the
conference the execution of the payments due to the participating Powers.
His Majesty's Government in the United Kingdom hope that a similar
procedure may now be followed, and ask for a suspension of the payments
due from them for the period of the discussions now suggested, or for any
other period that may be agreed upon.
O. His Majesty's Government in the United Kingdom believe that the
proposed discussions could best begin in Washington, and if this suggestion
meets with concurrence they are prepared to provide me with the necessary
inctructions. On this point, however, as well as on the other points touched
3441
upon in the present note, they await an expression of the views of the
United States Government.
I have the honor to be, with the highest consideration, sir, your most
obedient, humble servant,
R. C. LINDSAY.
The French memorandum, delivered to the State Department by Ambassador Claudel, follows:
Paris, Nov. 10 1932.
Memorandum of the French Government:
The French Government, seriously concerned with the effect that the
problems arising from the intergovernmental debts are having on the worldwide depression, deems it of vital importance to approach the Government
of the United States, asking it to co-operate in examining this question in a
spirit of frankness and true friendliness.
During the months of June and July last, the governments of Europe
assembled in Lausanne with a view to averting to the very best of their
ability the difficulties arising from the payments which these debt;
Basing its action upon the principles which were expressed in the joint
communique issued on Oct. 25 1931. by President Hoover and Monsieur
Laval at the conclusion of their discussions, and which were the logical
development of the proposal made by the President of the United States in
June 1931, the French Government, certain of being in close accord with
the ideas of the American Government, voluntarily agreed to very heavy
sacrifices at Lausanne, hoping thereby to appease resentment existing among
nations and at the same time to make a contribution toward economic
recovery and toward the consolidation of peace.
Important as were the effects of the Lausanne Conference, it must be
said that the economic and financial difficulties which stand in the way
of a resumption of normal relations between naticns are still present, and
that a further effort must be made to put an endd to them in the interest of
all.
The attitude which France displayed at Lausanne and at Stresa is proof
of the active interest which she attaches to the prompt economic recovery
of Europe and of the effort which she still contemplates making toward
fulfilling this task. France is no less anxious to co-operate in bringing
about the success of the world-wide economic and monetary conference.
It is this very same spirit that the French Government to-day proposes
to the Government of the United States to join with it in a further study
of the debt question. Inasmuch as such a study will, by virtue of circumstances, require too much time for a speedy conclusion to appear probable, the French Government asks that, in accordance with the process
followed at Lausanne, an extension of the suspension of payments may be
granted to the French Government in order that the study of the present
serious problems now under discussion may be continued and completed
In the necessary atmosphere of mutual trust. The French Government is
further convinced that such a step would have the most helpful effect on the
monetary crisis which threatens so many nations.
Trusting in the high wisdom and the spirit of justice of the American
Government, the French Government is convinced that its point of view
will be understood and that the rquest contained herein will be favorably
received.
A reference to the British note appeared in our issue of
Nov. 12, page 3252.
British Resolved to Avoid Default on War Debts—
Financiers Assert, However, Payment Would Hurt
Pound and Cut United States Exports.
Under the above head the New York "Times" published
the following from its London correspondent Nov. 15:
George Lambert, Liberal, asked in the question hour in the House of
Commons this afternoon whether the government would make a declaration
to the United States that it could no longer continue to make war-debt
payments in gold.
Nevil'e Chamberlain, Chancellor of the Exchequer, made no rep y beyond
saying that all matters pertaining to the debts might for the time being
be safely left to the British negotiator now on the spot in Washington,
that is, the Ambassador, Sir Ronald Lindsey.
Mr. Chamberlain's statement was interesting chiefly as being characteristic of the government's complete reticence on what it proposes to do
if the United States Congress refuses to grant a moratorium. It is emphatic enough in letting it be known there will be no default nor repudation,
but it maintains absolute silence concerning the only alternative: that it
can and will pay if it has to. There is an obvious psychological reason for
this.
Fear Aiding Opponents.
The British realize that any official announcements that they can pay
would merely be used as ammunition by the opponents of postponement In
the United States Congress during the debate that is considered inevitable.
It is already taken for granted that many bitter attacks on Britain and
other debtor States will be made In that debate. It is also realized that
admission of the ability to pay would swamp all arguments that the
British negotiators hope to bring forth to show that payment now would
be as derimental economically to the United States as to Britain.
But the City is not so reticent in this respect as Whitehall. Financiers
think the arguments against the December payment are so obvious from
both the American and British viewpoints that Congress is bound to grant
a moratorium regardless of Britain's ability to pay.
"What good would this payment do you?" asked one financier to-day.
"It would provide a little more gold with which to gild the pavements of
New York where your hungry unemployed are walking in search of jobs.
But it would not make jobs for them. It would depreciate the pound,start
a new bear raid on sterling and make England an even cheaper market
than it is now for world trade, thereby further reducing American exports
and demands for American production."
See No Difficulty in Paying.
So from that angle British bankers do not hesitate to say their country
can pay if it has to. They even declare that making provision for payment would not create any special difficulty or new problem for the Exchequer, talcbg a shprt view of the matte-, but in the long run it would
make conditions far worse in the United States and everywhere else.
There would be no difficulty in their opinion, because Britain already
has sufficient credit established in New York, as well as funds elsewhere
abroad, to meet the $95.000,000 instalment due Dec. 25. At the present
rate of exchange that is about E29,000,000. As against that there is still
available in New York banks British Government credit to the extent of
£25,000,000 on the score of the open-credit account for that amount which
was established in August 1931, to support the pound just before the
collapse of the last British Labor Government. That money was borrowed. But when it was repaid the account was not closed, and the
3442
Financial Chronicle
British did not cancel the right to borrow the same amount again, so that
the same open credit is available to-day.
Furthermore, $22,000,000 was left over by the then Chance'lot% Viscount
Snowden of Ickornshaw, in the old dollar account in New York when he
dipped into that fund to balance the budget of 1931. That is still available in the United States, although it is in a different form now, having
been transferred to Neville Chamberlain's mysterious fund of dollars and
francs held mostly in New York and Paris in reserve to equalize exchange
whenever it is needed to prevent excessive depreciation of the pound.
Could Get Fresh Credits.
So existing credits already in New York are sufficient to meet the December obligations. It is taken for granted fresh credits could be obtained
there by the British on better terms than those of the 1931 oan.
If a moratorium is denied, the question of government will have to decide will be whether to use these existing credits or negotiate new ones.
The choice will depend on the circumstances existing in mid-December
,
with reference to which procedure will then cause less disturbance to sterlin'
exchange.
If negotiations in Washington develop beyond the mere matter of
postponing the December payment and cover the larger question of reexamination of the whole debt problem, Ambassador Lindsay will probably
need Ministerial reinforcement. In that case Stanley Baldwin, Deputy
Prime Minister, probably would go to Washington if Prime Minister
MacDonald's health were such that he could carry the work of the Premiership for a while unaided. Mr. Baldwin would be the logical man as he
was the British delegate who negotiated the present debt settlement.
It would be extremely difficult for Mr. Chamberlain to go to America,
because from the beginning of the year until April he will be fully occupied
preparing the next budget.
British Hear War Debt Cut of Five-Sixths Is Plan—
Report Is Unitzd States Treasury Experts and
Theirs Have Agreed on Lump-Sum Payment.
From London Nov. 16 a wireless message to the New
York "Times" stated:
One of many war-debt rumors percolating from the financial district to
Parliamentary circles to-day was to the effect that the experts of both the
British and the American treasuries had come to a tentative conclusion that
the present debt from this country to the United States might be scaled
down to one-sixth and paid in a lump sum.
This speculation was taken rather seriously by various members of the
House of Commons, whose private activities are in the financial district.
The present British debt was funded in 1923 at $4,600,000,000. Since
then $202,000,000 has been paid on the principal and $1,149,700,000 in
interest. Subtracting the payments already made on the principal, there
is still due $4,398,000,000. If that is scaled down to one-sixth the whole
business could then be claned up by a lump sum payment of $733,000,000.
Joint Debt Action Denied by France—Foreign Ministry
Surprised at Move by British So Soon After United
States Election—London Explains Likeness of
•
Notes.
From the New York "Times" we take the following from
Paris Nov. 12:
Although the French request to Washington for postponement of the
Dec. 15 debt payment followed the British request by only 24 hours and
was expressed in similar terms, it is officially stated here that the two
requests should not be regarded as in any way joined.
It is indeed evident that the Foreign Ministry did not anticipate such
Precipitate action by the British so immediately following the American
Presidential elections. While instructions had been given to M. Monnick,
the actual drafting of the French note was done in Washington and not here.
In some ways the precipitancy of the demand on the election is regretted here. At the same time, it is argued, it could not very well have
been avoided. It was at the direct request of the United States Ambassadors in Europe that a kind of truce to the debt discussion was observed
during the electoral period. That left only a month before the payments
were due for discussion and outlining of a new debt policy.
Here the press to-day supports with every known argument the request
the Government has made for postponement of the immediate half-annuity
and for subsequent revision. These arguments have been transmitted
time and again across the Atlantic ever since the first debt settlement
was made and more frequently than ever since the declaration of the
Hoover moratorium and the Leval-Hoover conversations definitely linked
in the French argument reparations and debt payments.
To-night's "Le Temps" sums up the French case, similarly to the others,
thus
"Revision of the debt settlements is necessary, not only on account of
the moral responsibility of the United States involved in the question
through President Hoover's policy, but also for a wholesome understanding with American interests, which are inseparable from theft of all civilized
countries.
"The American people are more severely tried than any other by the
world depression. The return of prosperity is not possible for them except through the re establishment of confidence In the economic order
of things throughout the world.
"It has been argued that the German reparations payments, with the
monetary transfers they entailed, constituted the principal obstacle to
political pacification as well as economic financial restoration. The arguments are even greater as regards intergovernmental debts, which affect
not only a single nation but weigh heavily upon the situation of the Principal nations, particularly since their capacity of payment has been reduced
by the reparations agreement."
The hope that is felt here that the United States will consider favorably
advances for revision is expressed by "Le Temps" when it points out that
throughout the American political campaign, while both Mr. Hoover
and Roosevelt refused to consider cancellation, both were extremely
cautious, and particularly Mr. Roosevelt always left the door open for
readjustment.
The same paper reported the following from London
Nov. 14:
The close resemblances of the British and French
'
debt notes to the
United States, both in substance and form, recalls the incident of last
July when the British and French Governments disagreed as to the scope
of their gentlemen's consultative agreement made after the Lausanne
settlement.
The French view as originally expressed by Premier Herriot but afterward modified was to the effect that the agreement meant concert &
Nov. 19 1932
action by the two countries on intergovernmental debts. That was July
13. The next day an official statement issued from 10 Downing Street
said, "There is no truth in any statement that this agreement is applicable to the question of British debts due the United States." M. Herriot
then saved the situation by saying he had been misquoted.
The British Government's attitude on this point is the same to-day as it
was in July when it denied any concerted action with France concerning the debts to the United States, The British note to Washington was
not shown to the French before it was presented to Secretary Stimson,
It is asserted here. Its framers claim absolute independence of action in
dealing with the United States in this matter.
French Informed of Decision.
After the decision had been taken the French were Informed of it in
general terms because the British, although determined not to be handicapped by joint action on the debts, do not want to give the impression
of trying to steal a march on the French, thereby running the risk of increasing difficulty in reaching a disarmament agreement at Geneva.
The similarity of the debt notes is therefore explained on the ground
that two governments presenting similar cases in diplomatic phrases
are bound to use much the same language and the same sequence of the
points set forth.
But it is regretted that both the notes were published the same day.
Various questions were asked in the House of Commons to-day concerning the debts, but Neville Chamberlain, the Chancellor of the Exchequer. replied there was nothing to add at present to the information
contained in the note to Secretary Stimson. No reply from Washington
is expected before Wednesday or Thursday, and the time of its publication will be determined by the United States Government,
Paul Reynaud, Former French Finance Minister,
Doubts War Debt Cancellation After Visit to
United States.
Paul Reynaud, former French Finance Minister, who
returned to Paris on Nov. 13 from a visit to the United
States, advised his countrymen (according to a wireless
message on that date from Paris to the New York "Times")
not to expect too much in the way of debt cancellation as a
result of the election of Governor Roosevelt to the Presidency.
The message further said:
While he was optimistic regarding Improved economic relations of
France and the United States as a result of the success of the Democratic
Party program with respect to tariffs and prohibition, he advised his
countrymen to be moderate in their expectations.
France Sees Relief In Debt Commission—Hears Report
That Hoover Will Recall Funding Body to Take
Up Settlements Again—Reduction Hoped For.
The following from Paris, Nov. 17, is from the New
York "Times":
A suggestion credited here to President Hoover for recalling into being.
in agreement with President-elect Roosevelt, the Debt Funding Commission to re-examine the debt settlements has removed from that controversy here some of its acuteness. If meanwhile it is found by the
administration impossible to obtain and grant a juridic moratorium It is
hoped that the December payments will not be asked for and that a de
facto extension of the Hoover moratorium can be obtained.
That solution would permit hope, at least, and prevent any disagreeable
clash between Congress and the Chamber of Deputies, such as might
easily happen with disastrous results to what is left of the wartime cordiality in Franco-American relations. Even the report that the Debt
Funding Commission is to be summoned again has improved the situation,
for its coming together would be interpreted as certain to lead to a downward revision of debts. The only question In doubt Is as to how much.
It is realized that the Roosevelt administration will differ no way from
its predecessor in seeking to obtain the maximum possible from the debtors
of the United States. It Is also realized that the creditor country will
Insist on separate negotiations with all its debtors. This is regretted,
but the impossibility of obtaining the consent of the BALM to anything
like a common front is fully appreciated. For the British are creditors
of France and others, as well as debtors to the United States, and will never
agree to negotiate in common or even participate in a common redemption
loan
Says She Is Unable to Pay.
The French case before the new Debt Funding Commission, if It Is
called, wili be based, it is stated, squarely on the fact that France, at the
instigation of President Hoover and Britain, has abandoned 42 of the 45
annuities due her for reparations from Germany. That, In Itself, has completely altered her capacity to pay, she contends.
The world depression also has put an entirely different aspect on the
whole question of intergovernmental payments from that which it had in
1926, when the settlement was made.
France's total trade took a 35% drop in the first 10 months of 1932, as
compared with the same period of last year, official statistics issued to-day
showed. The decline represented a value of 21,544,000,000 francs (about
$861,000,000). Nearly 62,500,000,000 francs was the total up to the
end of October in 1931, and for the current year it is only 40,858,000,000
francs.
The unfavorable trade balance shows imports exceeded exports by
8,329.000,000 francs this year. The deficit in 1931 was 10,500,000,000
francs, but it was based upon a much greater total of trade.
Imports this year totaled 24,593.000.000 francs, more than 11.000.000
francs less than for the first 10 months of 1931. Exports totaled 16,264.000,000 francs, more than 9,500.000,000 francs less than In 1931.
Belgium Note to United States Proposing Re-examination of War Debts.
Following the action of the British and French Governments, the Belgium Government on Nov. 15 addressed
the United States proposing that the latter "co-operate
in a re-examination of the problems arising from the intergovernmental debts." The following is the text of the
memorandum which the Belgium Ambassador handed to
Secretary of State Stimson 9n Nov. 15:
Volume 135
Financial Chronicle
Memorandum.
Nov. 15, 1932.
The British and French Governments, moved by a desire to alleviate
the serious difficulties resulting from the economic depression, have, in
their notes dated the 10th and the llth, respectively, of the present month,
proposed to the Government of the United States that it co-operate in a
re-examination of the problems arising from the intergovernmental debts.
Basing their action upon the principles adopted during the recent conference of Lausanne, they scggested that the period of suspension on
payments due to the United States be extended for the duration of this
reexamination.
The Belgium Government has the honor to make the same request
in respect to payments due from Belgium.
Although the rights of Belgium to obtain complete material restoration
have been unanimously recognized from the beginning, the Belgium Government did not hesitate in July, 1931, to accept the proposal for a moratorium which was made by the President of the United States.
A year later, in the interests of peace and economic recovery, it adhered
to the Lausanne agreements. In so doing, it consented to make sacrifices
which were particularly heavy and which have profoundly affected the
financial situation of Belgium.
The Belgium Government remains convinced that the difficulties with
which the world is faced to-day cannot be overcome unless the nations
pursue a resolute policy of co-operation and mutual assistance.
With this idea in mind and in a spirit of friendship, the Belgian Government requests the Government of the United States to examine the propose's which it has the honor to submit.
Poland to Seek New Debt Agreement with United
States--In Event that Great Britain and France
Are Accorded New Terms.
From Warsaw, Nov. 15, Associated Press advices said:
Poland's position on the war debt question was summed up by an official
spokesman to-day as follows:
Poland under the terms of the 1924 debt agreement asked in Septemoer
for postponement of the 39,300,000 zloty (currently about $4,430,000)
installment due Dec. 15 in accordance with the three months' notice
clause.
Nothing was said about the future and no steps were taken for obtaining
a new deal.
Should France and England, however, obtain a new agreement, then
Poland will also request revision on the ground that the conditions under
which the 1924 arrangement VMS made have changed radically since.
Liberal War Debt View Forecast in Vienna—One
Paper Optimistic, Although Others Fear Roosevelt
Will Be Severe.
U Icier date of Nov. 9 a message from Vienna to the
New York "Times" said:
Sin& a Democratic victory in the United States was inevitable, the
general view here is that it is Just as well that it was overwhelming, since
the size of the victory will give the new President an unequivocal mandate
and a free hand to take the drastic action necessitated by the world's
economic stalemate.
In this connection "Die Stunde" observes that "the President of the
United States is the mightiest man on earth; mightier than the kings and
kaisers, who often have been pressed into small corners of constitutions.
He is even mightier than the dictators, who often have to alter their policies
to keep themselves in office. In Roosevelt's hands lies the key to the
world's rehabilitation."
Southeastern Europe likes Governor Roosevelt's stand on prohibition
and the tariff but regrets, as "Die Stunde" puts it. that "Roosevelt is
even more intransigent than Hoover on the debt question, and has turned
his face even more decidedly away from Europe."
The "None Frei° Praise," whose editor recently interviewed Governor
Roosevelt in the United States, is more optimistic on this point, however, predicting a lioeral attitude toward the movement for cancellation.
This newspaper observes that "America is certainly to be congratulated
on the fact that, despite the enormous discontent of its people, they have
sent a man of moderation to the White Rouse."
Interest in the election was much greater than usual, the Vienna newspapers having devoted many columns to the candidates and their chances.
Farmers for War Debt Settlement.
Southwest Kansas wheat farmeri are turning internationalists, stid advices Nov. 10 from Dodge City, Kan.,
to the New York "Times" which also had the following
to say:
An organization, Wheat Belt Intelligence, is active in the interest of
an adjustment of war debts owed the United States by European nations.
The rnemoers believe the solution of the farmer's problem is in the expansion of the European market for American wheat, meat and cotton.
Sentiment favoring a trade of war debts for purchase of these products
Is spreading rapidly. Wheat farmers say there Is no hope for American
wheat if its only outlet Is the domestic market.
Asks Creditors for an Acceptable
Debt Plan.
According to a cablegram from Athens, Greece, to the
New York "Times" Premier Tsaldaris announc(4 in his
Parliamentary program speech on Nov. 19 that the Government would abolish several ministries, shorten the
military training period and establish new Government
monopolies to rehabilitate Greece's finances. The cablegram
added:
Greek Premier
Attempts will be made to find new markets for Greek goods, and to
this end the exchange restrictions will be eased.
M. Tsaldaris expressed regret that Greece was unable to pay her foreign
debts and expressed the hope that her creditors would recognize the difficulties of her situation and consent to a solution which would be possible
for her to accept.
Former Premier Ventzelos announced he would tolerate the new government, but would not give it a vote of confidence.
3443
American Charge d'Affaires Sees Creek Premier
Pegard to Payment on Greek Debt.
With
The following from Athens, Nov. 15, is from the New
York "Times":
Leland Morris, United States Charge d'Affaires, visited Premier Tsaldaris
to-day in connection, it is assumed, with the recent announcement
by
the State Department that the installment due on the Greek war
loan
was unpaid. Mr. Morris denied that American bondholders had sought
an arrangement similar to that signed by Greece in September with the
British and French.
M. Tsaldaris promised on Nov. 7 that Greece would scrupulously re,oect her obligations and do her utmost to fulfill them.
Great
Britain Tells Allies of Debt Moves in United
States —London Economist Proposes Bonds to
Replace Debts Owed United States.
Noting that the French, Italian and Belgian Ambassadors
to London were informed on Nov. 11 by Sir John Simon,
Foreign Secretary, of the tenor of the note concerning the
British war debt to the United States, a cablegram on that
date from London to the New York "Times" continued:
The note was presented to Secretary of State Stinson yesterday by Sir
Ronald Lindsay, British Ambassador.
This act of informing the Ambassadors of the chief debtor States on the
Continent of the course atready taken by the British Government was
merely in conformity with international courtesy and did not indicate
joint action by Britain and the Continental powers. Britain is acting
Independently in this matter.
It is the expectation and desire of the British Government that the text
of the note to the United States will be made public simultaneously in
Washington and London if Secretary Stimson approves that course after
he has had an opportunity to study the document.
An outstanding feature of foreign exchanges in London to-day was a
strong rise in dollar exchange to 3.32 in closing dealings. In foreign
exchange circles the movement was associated with the presentation of
the British note on debt payments to the United States Government.
London Economist's View.
Under the caption, "The Choice Before America," to-morrow's issue of
"The London Economist" urges the substitution for existing obligations of
debtor governments of a new issue of bonds to be floated in the United
States market. "The Economist" also says:
"It is obvious that further gold shipments to the United States will only
Intensify the maldistribution of gold stocks, which the attempts at war
debt repayment have done much to create, and prolong the present phase
of undesirable currency instability.
"Equally obvious, apart altogether from budgetary questions, the governments of Europe might be driven by American insistency on the letter of
the bond into undisguised default as the only alternative to a scramble for
dollars accompanied by drastic restrictions an imports, which would complete the economic chaos of the world.
"In America's hands lies the decision, and if it were a choice between
cancellation and inevitably to frustrate the attempt to make impossible
payments we would submit to the American people bhat the case for
cancellation is overwhelming. Admittedly such a policy would involve
the assumption nominally of additional burdens by the American taxpayer.
Insofar as the $20,000,000,000 annuities still due from European debtors
are unavailable for debt retirement, the task of paying the interest
and
amortization on the Liberty Loans must be met out of the resources of the
United States budget.
"Equally in the case of Great Britain, if the £1,000,000,000 scheduled
annuities still due from the allies are written off, as well as £420,000,000
originally advanced to Russia, the British taxpayer must meet, without
external assistance, charges on the internal debt which the war raised
from
£650,000,000 to £7.435,000,000, five times as high per head as
the
internal debt of America.
Vast Shrinkage of Trade.
"But there are overriding considerations. So long as the influx of goodi
Into America is not free, any attempt to pay the debts due her must strain
the world's financial system to the breaking point. Events of the last two
years have demonstrated this beyond all argument. The damage was done,
however, and unfortunately was not ended with the breakdown of the debt
settlements, and the collapse of the world's financial machinery has
produced a shrinkage of trade and economic activity out of all proportion
to the amount involved in the debt payments.
"It is estimated, for example, that the national income of the United
States must have shrunk since 1929 by at least $30,000,000,000 a year, or
three times the whole capital value of the original debts and 100 times
the
amount of next year's annuity. If an attempt to reinstate debts were
to
prevent, as it inevitably would, any effective steps being taken to patch
up the currency situation, reopen the markets of the world and
restart
the Vow of trade it would indeed be a penny-wise pound-foolish
policy.
"Putting the matter bluntly, the Case which America has to consider
Is not an appeal to her generosity but whether she can
afford to start a
fresh slump.
"It is by comparison a secondary though important consideration
that
the value of American foreign investments at stake, and
dependent to a
large extent on the restoration of world prosperity, amounts
to about
*15.500,000,000, of which nearly $5,000,000,000 is
invested in Europe.
It thus greatly exceeds the 'present dalue'—say
$6,400,000,000—of the
assets held by the United States Treasury in the shape of
intergovernmental
war debt obligations.
Loss to Individual Small.
"Again regarding the American budget, though
complete cancellation
would involve the American budget in a present loss
of nearly $300,000,000,
rising to $400.000,000 in 1972, it represents only
$2.50 per capita of the
Ameriran population. By contrast, the present
depression in the United
States arising out of the world crisis has had
the effect of reducing
income tax receipts from $2.331,000,000 in
1928-29 to $1,057,000,000 In
1931-32, while customs receipts alone have fallen
in the same period by
$274,000,000, or nearly equivalent to next year's
scheduled debt annuities.
"The improvement in business conditions
resulting from the removal
of the shadow of war debt uncertainty should
greatly offset in terms of
revenue the loss of war debt receipts."
New Debtor' Bonds Proposed.
In conclusion, "The Economist" says:
"Just as the Lausanne agreement marked on the part of
European creditors
a full if tardy recognition that if the foundations
of European recovery
3444
were to be laid, a final settlement must be reached on the basis of
annuities commercialized and demonstrably within Germany's transfer
capacity, so we submit it is essential that the question of war debt repayment should be finally settled on lines which will take the issue out of
politics.
"We believe the most feasible way of doing this is to substitute for all
existing obligations a fresh issue by the debtor governments of bonds
limited in amount to a figure which the debtors can safely float in the
United States market. This would give America a capital sum to help the
situation of her national finances but would not involve a large international transfer. It would further make the market the test of the
limits to be imposed and settle the matter once for all.
"An operation of this nature would doubtless mean In practice the scaling
down of the present debts in a proportion comparable with the writing off
agreed to at Lausanne, but we are convinced it is only through such a
realistic settlement that a beginning can be made by the governments in
preparing the way for recovery throughout the world."
Thomas W. Lamont, of J. P. Morgan & Co., Regards
War Debts "Perfectly Just" But Impossible—
America's Troubles Due in Measure to Government
Extravagance—War and Its Dislocations Underlying Cause of World Depression—Would Right
Weaknesses in Capitalistic System.
Comment on war debts entered into a speech by Thomas
W. Lamont, of J. P. Morgan & Co., in discussing "Our
Universities in an Unsettled World" at a conference at the
Waldorf-Astoria, in New York, on Nov: 16, arranged by
the New York University. Mr. Lamont referred to the
Congress "and behind Congress the American people which
for years has insisted upon the foreign governments paying
us the perfectly just—perfectly just, I say—but impossible
war debts." Mr. Lamont went on to say:
We have held to the idea that these great overseas payments, representevery
ing in general nothing except exploded shot and shell, shall be paid
year—a quarter of a billion dollars each year—an unnatural stream of
trade.
world
payments, choking the channels of
*Incidentally, it was perfectly reasonable that the Allied Powers should
expect and demand that Germany should pay sufficient to repair the
physical damage wrought by her armies in Belgium and northern France.
But the bill has not been paid in full, nor can it ever be so paid. Similarly,
people are asking: Will it ever be possible for the unwieldly war debts—
undertaken no doubt with reasonable expectation on both sides that they
would be discharged—ever to be paid in full at Washington?
In presenting the query "Is our trouble due to Government extravagance?" Mr. Lamont said:
In a certain measure, yes. Money was being spent so freely, taxes
were being collected so rapidly that all our governmental bodies fell into
the easy habit of spending money like water. New York City's funded
debt has grown in 10 years from $1,100,000,000 to $1,800,000,000. Its
annual budget has increased in the last 10 years from $330,000,000 to
$631,000.000. As to the Federal Government, with the budget out of
balance, the Congress has very properly been obliged to levy heavy new
taxes, adding to the serious burden of taxation that had been arranged on
a generous scale when there was ample income to pay the bills.
Mr. Lamont expressed himself as "one who believes that
we must rebuild on the basis that is still under us.' He added:
We must, in Mr. Lippmann's phrase, continue to live in the house while
we are rebuilding it. You may call that house, if you will, the capitalistic
system. It has been lathe building since the Dark Ages. It has, with
a.I its ups and downs, brought to mankind increasing comfort and happiness.
It is still a fairly tough structure and will not easily topple over. But it
has developed some serious weaknesses which require more than patchwork attention.
In conclusion, he said:
Our primary remedy for present difficulties is not in the change of
economic status. It consists in an enlightened public opinion which will
demand of our rulers that they seek peace, economic as wed as political,
and pursue it.
Mr. Lamont's address follows in full:
If, as I hope, Professor Gay of Harvard tells us something of the history
of tmiversity education throughout the world, and Sir Arthur Salter suggests
to us a general approach to current problems, suppose, then, that I attempt
to touch upon some of the major causes of present-day conditions.
Inasmuch as this Is an academic gathering, let us first consider what a
shocking series of world events has been spread before the innocent gaze
of our American youths who, born at the outbreak of the Great War in
1914, entered only last September the portals of New York University
and our other colleges.
For the first four and a half yexrs of the childhood of this freshman of
to-day he would have witnessed a world given over to wholesale slaughter.
In that conflict were killed 13.003,000 able-bodied men. Twenty million
more of them were disabled. Disease, privation and destitution accounted
for the loss of six or seven million of civilians. There was a total of perhaps
40,000,000 people put out of constructive endeavor. In a material way
30 billion dollars of property were wiped out. In national debts an increase
from about 28 billion dollars to 212 billion dollars—a terrible millstone
around the necks of the burdened populations.
At the age of five this American boy would have seen in the Versailles
Treaty new States set up on uneconomic lines; a militant peace filled with
resentments and the seeds of new misunderstandings.
The Struggle Over Reparations.
And then that boy, from the age of five until now when he is 18, would
have gazed upon an economic warfare waged in Europe more destructive
to commerce, to stability and to an ordered life than the Great War itself.
That phase will be known in history as the struggle waged over German
reparations, a conflict that helped to bring Europe to the verge of general
bankruptcy, ending only with the notable agreements reached at Lausanne
last June.
During all those earlier years from 1919 to 1925. or beyond, this innocent
youth of ours would have witnessed (alongside the conflict over reparaa
tions) the pathetic and heroic endeavors of mankind to reconstruct
by which
shattered world. He would have seen the piecemeal efforts
were set upon
Austria, Hungary, Bulgaria, Greece and other countries
Nov. 19 1932
Financial Chronicle
their tottering feet; and by which Germany, after complete debacle of the
currency, had been re-established under the Dawes Plan. Other countries
were slowly toiling back to the gold standard—Great Britain in 1925.
France in 1926 and 1927, Japan in 1929. And again our sub-freshman
would have been shocked to see the most powerful of these countries, Great
Britain, only last year driven to abandon once more the gold standard;
and since then 40 other countries of the world either follow her example or
place embargoes on the shipment of gold.
Meanwhile, as to politics, in almost every country radical changes or
government were taking place. "The old order changeth, yielding place
to new." Kings and hereditary potentates went almost completely out of
fashion. On the Continent of Europe revolutions were not infrequent,
and in South America they became the order of the day.
And during all these years this American youth of ours would have
witnessed other phenomena of almost equal portent. He would have seen
the fantastic attempt by many nations to peg the prices of commodities—
wheat, cotton, silk, rubber, coffee and a dozen others. He would have
seen the unbalancing of government budgets on a wholesale scale and the
fatal resort to inflation of the currencies.
Increasing War Budgets and Taxation.
What came next? The increase of war budgets of the leading nations.
Instead of diminishing with the reduced national incomes, these budgets
increased by 1931 to 65% above the average figures for the five years
preceding the Great War. The burden of taxation in almost every civilized
country, including our own, has become increasingly and intolerably heavy.
Our eager youth would have seen tariff barriers built up on every side.
with our own country in the lead—barriers which all over the world Prevent
that very exchange of goods and facility of commerce which are essential
to the restoration of world prosperity. He would have gazed at those
forth
great stores of gold, shipped clumsily and extravagantly back and
across the ocean; a total in the last four years alone of almost four billions
of dollars in and out of this country.
There is another phenomenon of the times which has rapidly and alarmingly developed. That is the growth of an intense nationalism in every
part of the world. Almost every separate people has sought to shrink
within itself; to dig itself into its own cyclone cellar and endeavor to save
itself, come what might to the rest of the world.
Yet despite that reparations warfare that was going on in Europe for
13 years; despite all those artificial oarriers that were being raised against
world recovery; here in America under the early stimulus created by the
war's wholesale destruction of goods we were beginning, during the middle
yea's of this last decade, to enjoy a singular prosperity. Our factories
had been stimulated by the war-time demand from overseas for our goods.
There came to be plenty of work for almost everyone, and plenty of people
to buy. There was a orief recession of business in 1920 and 1921. Many
Persons believed erroneemily that it had been sufficient to liquidate fully
the economic effects of the War. At any rate, America's natural resoarees.
Intense energy and resourcefulness again came to tho front and created
the beginnings of our boom times.
Our Foreign Trade Policies.
Acting, however, upon a deliberately adopted national policy we tried
to tuy as little as possible from the foreigner. But we were keen to sell
him our goods. So in order to sell him, we proceeded to lend him the
money wherewith to pay us. From 1923 to 1929 American investors and
Institutions lent abroad approximately five billion dollars net. American
banks and °tinkers have been sweepingly criticised for arranging such
loans. In certain cases criticism as to lack of care in investigation and
method has undoubtedly aeen justified. But the general movement was
a natural one,forced on the invest.nent community ly reason of our national
Policy of buying abroad as little as we can, and of attempting to force on
the foreigners all the goods we can possioly sell them.
Thus during those years from 1923 to 1920 the American community
proceeded to complete what seemed like the charmed circle, and then began
to make it whirl. Pile formula was a simple one 'I he more money we
lend to the foreigners, the more of our goods they will buy. The more
they nuy, the more we shall manufacture. The greater the demand becomes, the more we expand our factories and equipment. The more we
manufacture, the higher prices go. The higher prices go, the higher wages
rise. The higher wages are, the greater becomes the public's purchasing
Power, Everybody has a job. Millions of dollars paid in salaries and
wages are put to new-found uses; quicker ways of transportation; delightful
means of communication; all sorts of alluring des ices; most of them tending
to increase the material satisfactions of life, out not leaving a sufficiently
large proportion of savings laid by for the rainy days. And for the workingman it has rained almost steadily for the last three years.
The Great Speculative Orgy.
Then,starting about 1925,from small beginnings came the grand American speculation. Our people from one coast to the other were seized with
a desire to get something out of nothing. They did not want to invest
for income. They wanted to buy for profit. Speculation spread in commodities, jewels, real estate and securities. For a while it all seemed so
easy. stocks go up on the stimulus of purchases. The higher they go,
the more new purchasers come in. The more fresh buyers there are, the
higher the stocks go. It is a great and exciting game—jumping on this
endless-chain escalator, constantly going faster and higher.
Then came the collapse from prosperity, a change in this country after
a few short months to days of depression, deflation, failure and, in so many
Instances, of despair. Just as a side-show, we display to these young People
of ours other phenomena—shaky banks, failing banks, hoarding of gold—
all the outward evidences of panic. This was as recently as a sheet Year
ago and less, although now that phase is fortunately at an end and confidence
Is restored.
Those, then, are some of the pictures spread before the guileless eyes of
our American freshmen who have never oeen privileged to see anything
of a world that we elders would term normal—those youths from the age
of nine to 15 looking out upon a seeming world of domestic prosperity and
gladness, and then from 15 to 18 watching millions of people walk the
streets looking for Joon, demanding the shelter and food which must be
furnished to them.
A Return to Constructire Effort.
But let us now turn to the other side of the picturo. The panic of fear
has subsided. Normal processes get under way. Gradually we see again
the genius of the American people come to the fore. Efforts, systematic
and gigantic, have been started and are now beginning to work. Almost
the whole community seems banded together, determined, first of all,
each man to help his fellow; determined that no one shall perish from
lack of food or shelter. Manifestly and with renewed confidence on all
sides, men are exerting their nest efforts towards reconstruction. Government co-operation has come in upon a grand scale and Irma score of different
ways. Things gradually oegin to straighten themselves out. The deflation of commodities seems almost at an end. Hard work oegins to fill UP
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Financial Chronicle
the gaps. The fingers of a new dawn stretch their tips above the horizon.
There are signs of betterment decidedly more tangible than mere hope.
In the midst of our efforts for avoiding shipwreck, for saving those
already on the rocks, we hardly have had time to study whence the storm
came. Yet questionings have already begun on an active scale. Each
one of us is looking around for a scapegoat. Why do my pet investments
which paid me 6% go down in price from 150 to 15 and now pay me no
return? Was it the fault of the broker or banker? He answers "No, we
may have been no wiser than anybody else. But certainly the chief loss
has been due to the severity of the depression which has caused heavy
depreciation in the soundest of American investment securities."
Governmental Extravagances.
Is our trouble due to Government extravagance? In a certain measure,
yes. Money was being spent so freely, taxes were being collected so rapidly
that all our governmental bodies fell into the easy habit of spending money
like water. New York City's funded debt has grown in ten years from
1100 million dollars to 1800 million dollars. Its annual budget has increased
In the last ten years from 330 million dollars to 631 million dollars. As to
the Federal Government, with the budget out of balance, the Congress
has very properly been obliged to levy heavy new taxes, adding to the
serious burden of taxation that had been arranged on a generous scale
when there was ample income to pay the bills.
Others of us have another alibi. We have found a scapegoat which
cannot kick back. It is the devilish foreigner who has done all of this to
us. He got Into a frightful mess and hauled us Into it. He borrowed
our money and then went bankrupt, or almost bankrupt, and a good part
of the loss he has never paid back. He fell into a panic in Central Europe,
and the panic, like a prairie fire, jumped over here. This is a difficult
alibi to sustain, by reason of the fact that Europe's crisis in the spring of
1931 came 18 months after the American collapse of October 1929.
The War Debts a Factor.
Other people have found still a different scapegoat, the anatomy of
which is well worth examining: It is Congress, and behind Congress the
American people, which for years has insisted upon the foreign governments paying us the perfectly just—perfectly just, I say—but impossible
war debts. We have held to the idea that these great overseas payments,
representing in general nothing except exploded shot and shell, shall be
paid every year—a quarter of a billion dollars each year— an unnatural
stream of payments, choking the channels of world trade.
Incidentally, it was perfectly reasonable that the Allied Powers should
expect and demand that Germany should pay sufficient to repair the
physical damage wrought by her armies in Belgium and Northern France.
But the bill has not been paid in full, nor can it ever be so paid. Similarly,
people are asking: Will it ever be possible for the unwieldy war debts—
undertaken no doubt with reasonable expectation on both sides that they
would be discharged—ever to be paid in full at Washington?
These, then, have been some of the phenomena which world civilization
has presented to the wondering eyes of our youth for the first third of the
20th century. My purpose has not been to discourage you, but just for
a few minutes to let this vivid panarama unfold itself before your eyes.
To our elder view, accustomed to the various ups and downs of this life.
having seen former panics and former depressions, the spectacle, terrible
and prolonged as it has been, is perhaps not quite so startling as it would
be to the inhabitants of another world.
We can lay our difficulties at the door of no one person: no one group
of persons; no one government. The greatest, single underlying worldshaking cause of the depression has been the War, its prodigious losses,
its repercussions, its dislocations, its unsettlement of morale, including
speculative orgies: War and the unwisdom of man who permitted that war.
Various Political Ideas.
What is the remedy for the world's present situation? Many among us,
without adequate regard for some of these manifest causes of the depression,
are declaring that the whole economic system of civilization has broken
down once and for all and should be thrown into the discard. Is then
the answer to be a grand leap into Socialism? Or a somersault into Communism? My answer is "no." Before we move in this direction we can
well afford to observe and profit by other people's mistakes, or perchance
by their successes.
Is the remedy one great plan of economic organization, something that
will surely balance world-wide production and consumption to a nicety
and always provide work for everyone? That is the Utopia that the
world may work towards. But there is no swift and royal road to universal
prosperity. We have to rely not on gods, but on men, to devise, plan.
organize and execute. And we must rely upon them with their limitations.
In general terms we can say that the American economic community has
done far more extensive planning than it ever did 40 years, or 20 years ago.
We have seen, however, how far it has fallen short. Yet that does not
mean that, while in the modern world we may well have come to a turning,
we have come to the end of the road.
Not Revolution but Evolution.
No, I am one who believes that we must rebuild on the basis that is
still under us. We must, in Mr. Lippmann's phrase, continue to live in
the house while we are rebuilding it. You may call that house, if you
will, the capitalistic system. It has been in the building since the Dark
Ages. It has, with all its ups and downs, brought to mankind increasing
comfort and happiness. It is still a fairly tough structure and will not
easily topple over. But it has developed some serious weaknesses which
require more than patchwork attention.
Why the Younger Generation is Radical.
Realization of that fact brings us back to these universities of ours.
1 hear complaint that our college professors are teaching too much of
socialistic theory. That would not be my observation. These are days
when among the teaching forces of our institutions the freest sort of academic
freedom should prevail. But to me it is little wonder that many of our
students to-day are radical, are joining the Socialist Party or are even look
in with a kindly eye upon the allurements of Communism. The sort of
world that they have seen is the one of chaos that I have described. They
know no other. The modern world that existed prior to 1914 is as unreal
to them as the age of chivalry is to us. In a world of flux they want something that they can cling to, hold fast to. And they eagerly embrace
what seems to them the solid faiths which assume to have rolved all our
questions.
It is the growth of science that is perhaps the most encouraging single
feature of our modern civilization, going far to offset its present failures.
The discoveries of science are, as we all know, constantly tending to
strengthen and prolong life. The luxuries which science creates give us.
In turn, time for more science. We see on every side scientific discoveries
(I am not alluding primarily to mechanical development) being made by
men studying purely for science's sake; workers going on quietly and steadily
in their laboratories, regardless of a changed or broken world.
If, then, a purely man of affairs can presume to speak of an academic
subject; if thus I were to make a plea to our universities—to both students
3445
and teachers— it would be to set up the scientific method as a goal to
almost every end. In training the mind of our youth, in teaching the
student to think and to use his mind as he would a finely tempered tool,
we should urge always the practice of the scientific method. That method
proceeds by experimentation, by making a disinterested search for truth,
by getting the facts and seeing where they lead. Imagination constructs
the hypothesis. Then we verify or check the hypothesis to see if the
thing works.
The Maintenance of an Open Mind.
This means that no fixed and static dogmas can necessarily stand unchanged in a changing world. They must give way to fit the altered
conditions. Our university can give the student the spirit of this scientific
approach to most efforts of human endeavor; not only to the realm of
abstract knowledge, but to a vast number of the practical affairs of everyday life, to sociology, religion, business, politics. government. Our
university can give its students tolerance, so that they will not condemn an
idea offhand, because it is new or because it is old. It can help them to
develop that tempered judgment which is the beginning of wisdom.
And as I would urge the scientific method upon teachers and upon these
new students of ours, just on the threshold of the university, so would I
urge upon myself and upon my associates in the world of affairs to turn
away from every form of bias; to examine with unprejudiced eye any new
economic system or change of our present system that may be proposed:
above all, to get away from that rigid nationalism which has proved so
crippling.
The Folly of Economic Wars.
But I beg you will be under no illusion as to my own individual convictions,
unimportant as they are: No economic system whatever—old or new—
can be devised which shall be proof against the folly which mankind has
shown. In 1914 to 1918 white men engaged in a titanic struggle of selfdestruction. It was the first war of populations. Previous wars had been
wars of champions. In the Great War the whole economic power of the
populations of the countries engaged was enlisted.
When the war ended the statesmanship which lead the world was exhausted, neurotic and embittered; with the consequence that the treaties
of peace brought no peace but erected fantastic new barriers to peace.
political and economic. Unwarranted frontier changes and anomalies like
the astronomical reparations claim left bleeding wounds in the body of
mankind. Looking back we now see that it was inevitable from these
peace settlements, which were no settlements, that the war should not stop
but should be transferred, as it has indeed been, from the military to the
economic field. Here America has been one of the leaders in the economic
war, In the two drastic tariff increases of 1922 and of 1930 she set standards for the strangulation of trade which other weaker nations felt compelled
to emulate. Thus, the four years war on the battle fields of France has.
as I have already pointed out, been continued by a 14 years economic war
on a world-wide front.
The World's Interdependence.
Remember, after all, that we are in a world of men who all over the
globe, are singularly alike in their passions and prejtidices. Just as we
have seen this depression to be world wide, so every country is dependent
In part on the misery or the good fortune of every other country. Even
America, with all her magnificent resources, can never be wholly selfcontained.
Remember again, that we are now on the threshold of a new stage of
progress and that America must lead the way. It can go far on that way
only by realizing that it is a part of the world: that the world also must
move with it to new recoveries and new stabilities. Our primary remedy
for present difficulties is not in the change of economic systems. It consists in an enlightened public opinion which will demand of our rulers that
they seek peace, economic as well as political, and pursue it.
War Debts Now Put at $11,229,968,706-1nterest Deferred by Hoover Moratorium Will Add $184,000,000
Later—$2,627,580,897 So Far Paid—If Funding
Agreements Were Fulfilled We Would Receive in
All $22,259,070,056.
The large amounts at stake in the negotiations concerning
revision of the wartime debts owed by European nations to
the United States are shown by the latest figures compiled
by the Treasury Department, said a dispatch from Washington Nov. 14 to the New York "Times," from which we also
quote:
The funded debt of the fifteen nations is $11,229,968,706, to which later
will be added $184,000,000 in interest which was postponed because of the
Hoover moratorium for the fiscal year 1932.
Since the debts were contracted, the debtor governments have paid to
this country a total of $2.627,580,897, of which $953,343,602 was received
oefore the debts were funded and $1,674,237,295 since the agreements were
reached.
The latter sum is made up of $1,230,926,551 in interest and $443,310.745
In instalments paid for the reduction of principal.
Under the funding agreements, the amounts still owed by the four principal deot,or nations were Great Britain. $4,398,000,000, France, $3,863.650,000, Italy. $2,004,900,000. and Belgium, $400,680,000.
Interest and principal-reduction payments made by the four since the
agreements were reached were
Interest
Principal
Nation.
Paid.
Paid.
"
Great Britain
$1,149.720.000 $202,000,000
France
38,650,000
161,350.000
Italy
2,521.250
37.100.000
Belgium
14.490.000
17,100,000
If the funding agreements were carried out on the present basis and full
Payments were made,the United States would receive in all $22,259,070.056
In interest and payments for liquidation of the principal.
Britain Bears Heaviest Burden.
Under the agreethents Great Britain has borne by far the heaviest burden
of payments. The relatively severe interest rate which she was asked to pay
In 1923 will, in the opinion of some experts, be a strong argument in the
move that has been undertaken by that nation and others to bring about a
readjustment of the debt structure.
When the British compact was made the Debt Commission, after funding
the accrued Interest until 1922 at 43,
1%,fixed the rate thereafter at 3% for
the first ten years and at 3%% for the rest of the sixty-two-year period.
This basis was arrived at as representing Britain's capacity to WO% Its
debt was funded at $4,600.000,000. Figuring in its capacity to pay were
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Financial Chronicle
sums it expected to receive from Germany in the form of reparations and
from France, Italy and other countries in connection with loans which had
been extended to them by the British.
In order to grant even these rates it was necessary for the American
commission to obtain from Congress an amendment of the act creating it,
which fixed the term of years over which the debt might be funded at twentyfive and the lowest rate of interest acceptable at 4%%.
Britain accepted this agreement as the best it could obtain at the time
and made all payments until the Hoover moratorium year went into effect.
At the time of the funding the commission, headed by Secretary Mellon,
felt that it could obtain no further concessions by Congress and this fear
regarding what Congress might be willing to accept was always a muchdebated question in dealing with the nations with which agreements were
reached later.
Concessions Made to Italy.
When final dealings were entered into with Italy in 1925 and with France
in 1926, however, it became evident to the commission that further concessions would be necessary if agreements were to be reached. In approaching all negotiations, the commission first sought to apply the principle
involved in the British debt funding, but it was obvious that such an effort
would result only in failure.
In the case of Belgium, the 35Y % interest rate was accepted because
interest was made applicable only to pre-Armistice loans, which represented
about half of the total.
The principle of capacity to pay, first brought forward in the British
settlement, again played its part when the Italian debt settlement was
undertaken, but in that instance, after long debate, was interpreted to mean
that Italy, because of economic conditions, would be unable to pay any
interest at all for the first five years and only $5,000,000 a year during that
period for reduction of principal.
Interest thereafter was placed at only one-eighth of 1% for the next ten
years, rising by gradual steps to 2% for the last seven years of funding. Over
the entire period the average interest rate charged Italy was only 0.4 of 1%.
Relatively small amounts for the reduction of the principal of the debt also
were charged against Italy in the earlier years of the agreement. On a funded
debt of $2,042,000,000 the entire interest charge was only $365.000,000.
As the commission was in doubt as how Congress might receive this
settlement, the White House made known its approval and, after some
debate. Congress ratified the agreement.
France Balked at First Terms.
A somewhat similar situation arose in 1926 when the French debt of
$4,025,000,000 was funded, with the $407,000,000 "commercial debt" for
surplus war materials consolidated with the cash war loans made under the
Liberty Loan acts.
It became apparent to the American commission that the French Government would flatly refuse to reach an agreement rather than accept the terms
which had been applied to the British, and that unless very definite concessions were made there would be no funding operation.
This had been demonstrated when the commission endeavered to come to
an understanding with the Calllaux commission in 1925 without successful
conclusion.
The Berenger commission in 1926 signed an agreement, but only after
interest payments had been omitted for the first five years, placed at 1 per
cent for the next ten years and then stepped up to a maximum of 3,),6%
for the last twenty-two years.
The result of this manoeuvering was to make the payments by France
relatively light for the earlier years of the agreement.
At that time Senator Borah was opposing cancellation and as well concessions, which he held would amount virtually to the same thing. But
despite opposition, the French agreement was signed and finally approved
in Congress.
Hope for New Concessions.
The developments in the French and Italian settlements, in the opinion
of some leaders favoring sharp concessions, marked the beginning of the
movement which eventually would call for a final revision and reductions
to a minimum. These leaders are now hopeful that Congress will again give
ground.
That the British settlement was the weak link in the chain was put forward by the concessionists when Secretary Mellon, In a statement to the
Ways and Means Committee on May 20, 1926, intimated that, in his
opinion, the average cost of money to the United States in the following
sixty-two years would be about 3%.
The average rate of interest on the British debt was 3.3% over the
sixty-two years and the United States, some of the experts figured, would
actually make a profit of about 7% if the British compact were followed
out to its conclusion. This, of course, would be dependent upon the average
of cost to this country of money being not Over Vie 3% suggested by Secretary Mellon.
Even at the time that the French and Italian debt settlements were
made there was strong opinion that the whole question of debt payments
would be abandoned or revised long before the sixty-two-year terms of the
compacts expired.
In fact there were many reports that a situation such as is now confronting
the government would arise before the annual payments by France and
Italy reached large proportions, and that it was because their tight for easy
terms in the early years were accepted that these governments agreed to the
terms which were finally accepted by the American commission.
Senator Robinson Urges "Fixed Policy of Debt Collection"—Senate Democratic Leader Suggests President Act to Halt Cancellation Drive—Opposed to
Soldiers' Bonus.
Senator Joseph T. Robinson, Senate Democratic leader,
declared in an Armistice Day address at Fayetteville, Ark.,
on Nov. 11 in favor of this Government -announcing a fixed
policy for collection of the war debts. Associated Press
advices from Fayetteville, as published in the New York
"Herald Tribune," added:
He also said the printing of more money for immediate cash payment of
the soldiers' bonus would "threaten the national credit and result in much
more harm than good."
Tracing the history of the war debts due the United States, Senator
Robinson said:"There is no equity in the appeal for cancellation."
"It seems the part of prudence," he said,"to declare a fixed policy on the
part of this government to collect the debts and end the agitation which is
certain to gather volume in the early future in favor of cancellation.
Suggests Announcement by Hoover.
"If the President should let it be known that the settlements now in force
are final and will not be reviewed or opened up for further consideration.
Nov. 19 1932
such decisive action would promise the stabilization of conditions throughout the world."
Reviewing the national expenditures for veterans' compensation, he said:
"There has been nothing comparable, in the history of any country, to the
liberal manner in which the United States government has made provision
for its veterans."
"Many have grown accustomed to believing that our Federal government
has some mysterious source from which to obtain unlimited sums without
oppression," he said.
"If It is sound policy to print money for advance payment to veterans.
or if it is safe to do what amounts to the same thing, namely, issue bonds,
and then require the banks to take the bonds and issue notes to the veterans,
why worry about balancing budgets; why levy harassing taxes. Why not
make up the deficit in that manner?"
Directors of National Farmers' Union at Omaha
Meeting Oppose Cancellation of European Debts
by Government—Would Defer Action—International Bankers Cancel Debts Due Them.
According to the Omaha "Bee" of Nov. 15 ex( cutives of
the Farmers' Union of America, assembled in Omaha for
opening of the orgarization's national convention, sent to
President-elect Roosevelt on Nov. 14 a message stating that
farmers regard the proposed cancellation or reduction of
European war debts to the United States as a move to salvage
shaky loans of international bankers and are opposed to
action on war debts "until bankers cancel the European
debts due them."
The "Bee" added:
The union's national board of directors adopted as a resolution a statement issued on the war debt situation by President John A. Simpson.
This resolution, forwarded to Governor Roosevelt, follows:
"The $11,000,000,000 European countries owe the United States is
really $11,000,000,000 due to 125,000,000 people in this country. European
countries also owe more than $15,000,000,000 to the international bankers
of this country.
"Farmers, generally, are opposed to canceling the European debts due
the people of this country until the international bankers cancel the European debts due them.
"It is the policy of international bankers to get the European debts due
the people canceled and then have our country go to war, if necessary, to
collect theirs."
President Simpson said he expected the atmosphere in Washington
surrounding debt settlement and moratorium extension discussions to be
cleared by the conference asked by President Hoover with President-elect
Roosevelt.
"In conferences between these two on any subject, I'll net on Roosevelt
to uphold views for the best interests of the nation," he said.
Delegates were registering at the Castle hotel Monday for the union's
national convention, which formally opens at the Castle hotel Tuesday
morning (Nov. 15.).
Re-examination of War Debts Urged by President
Green of American Federation of Labor—Reduction Favored if Survey Reveals Need for Cuts to
Aid Trade Recovery--Depression Problems to
Dominate Meeting of Labor Federation Next Week
--'Asserts Halt in Wage Slashes and Compulsory Job
Insurance Will Be Demanded.
Re-examination of intergovernmental war debts with the
view to such action as the facts, "and nothing but the facts,"
will warrant was urged on Nov. 14 by William Green,
President of the American Federation of Labor. He was in
New York on his way from Washington to Cincinnati to
preside at the convention of the Federation, which opens
Nov. 21 according to the New York "Times" of Nov. 15,
which reported him as stating:
"If an objective examination of the war debts question, such as is now
recommended by economists of note and which, in my opinion, is required
by the situation, reveals the necessity of reducing the debts in the interest
of the United States and world recovery in general, I am entirely in favor
of such reduction," Mr. Green said. "The time has come when we should
look at the facts and nothing but the facts. Every other consideration.
political, racial, sentimental, should be discarded. We should deal with
the facts only, as they affect the very burning problem of economic
recovery."
Convention Likely to Act.
Mr. Green said that the war debts question probaoly would be taken IAD
the
Federation. Previous to the meeting of the conat the convention of
vention, the question will be considered by the executive council of the
Federation with a view to making a recommendation on the subject. It
Is considered likely that the council will recommend an objective re-examination of the question by the United States, with action along the line favored
by Mr. Green.
"Owing to the fact that the British and French Governments have asked
for a postponement of payments soon to fall due, the entire question of
intergovernmental debts assumes very live importance and one in which
labor is profoundly interested," Mr. Green said. "A re-examination of the
facts ought to be made without delay. In my judgment world recovery Is
so closely involved with intergovernmental debts that improvement in economic conditions will either be advanced or retarded as we deal with the
question."
Mr. Green stressed also the importance of the forthcoming world economic
conference, which is to consider tariffs, international debts, trade barriers
and other matters linked with the world economic situation. He said that
it in the intention of the Federation to present a memorandum to the
American delegates at the conference setting forth labor's views and urging
action that will be conducive to world rehabilitation. The memorandum
will be Prepared by the executive council of the Federation after adjournment of the Cincinnati convention.
Depression Chief Topic,
Mr. Green said that the convention would meet "at a time of greatest
emergency" and that the problems arising from the depression would
Volume 135
Financial Chronicle
dominate Its proceedings almost entirely, lie said that it, its report to
the convention the executive council would present an exhaustive survey
of the situation together with recommendations to promote recovery.
"Finding jobs for the unemployed will Je the one outstanding question
before us," Mr. Green declared. "We will demand a halt to wage cutting
as a factor making for the deepening and aggravation of the crisis.We
will call again for the shorter work week and shorter work day and we will
demand compulsory unemployment insurance. The time has come when
program
this must oe written on the statute books of the United States. A
of economic planning together with a comprehensive public works program
will also be part of our report to the convention.It was Mr. Green's opinion that the depression had reached its peak.
"Conditions as reported by our various affiliated unions are the worst
ever, worse than one, two or three years ago." he said. "Labor is now
feeling the full force of this depression. Figures now in preparation by the
Anaerican Federation of Labor and soon to be published will show another
rise in the number of unemployed as compared with our last report, when
the number was given as 10.900.003. With the seasonal improvement
manifested in August and September at an end, we may look now for the
seasonal Winter decline, l'he new unemployment figures will be well over
11.000.000."
At the same time, however. Mr. Green professed to see some encouraging
factors in the situation.
"I believe the depression has now reached its high-waver mark and that
the process of improvement may now be expected to set in." he said.
..Among the factors masing for some improvement in the near future are
depletion of stocks, which are now at the lowest point in the history of the
country, and the fact that many projects held in abeyance can no longer oe
delayed and must now be put into effect. I look for some improvement
chiefly in the commodity industries, which in turn will help transportation
and will have a general salutary effect. There 's also likely to be some
improvement in mining. With the campaign over and with the resultant
clearing of the political atmosphere the situation promises at least to take
a turn for the better. Let us hope so."
Louis J. Taber Head of National Grange Urges War
Debt Breathing Spell and Cuts if Powers Buy Our
Farmers' Products.
Winston-Salem, N. C., Nov. 16.—Louis J. Taber, master
of the National Grange, at a grange meeting at WinstonSalem, N. C., Nov. 16, according to Associated Press advices
to the New York "Times," said:
He held that the American people could not carry the burden of deots
with present low prices of farm products and low wages and that wth the
election out of the way, the situation must receive serious consideration.
Professor Dewey placed the total government and non-governmental deem
in the United States at about $200,000,000.000.
Professor Dewey listed among the reasons why reduction in interest rates
and principal of indebtedness was essential the following
"Wages, prices, many profits and land values in varying degrees have
been reduced since 1929 and it is only equity that the principal of debt and
the interest thereon should oe reduced at least.
"Public acquisition of public utilities, natural resources and iyasic industries would be greatly faclitated oy wriving down depts."
President Hoover Invites President-elect Roosevelt to
Confer on War Debts Incident to British Note for
Suspension of Payments Pending Review of Agreements—Interchange of Views also Sought by President on Armaments and World Economic Conference.
President Hoover on Nov. 13 addressed a telegram to
President-elect Franklin D. Roosevelt, Governor of New
York, inviting the latter to confer with him at Washington
on the subject of intergovernmental debts, the action of
the President being prompted by the receipt of a note from
the British Government seeking a review of intergovernmental war debts, and a suspension of the British payments
pending the discussion. President Hoover's telegram was
forwarded to Governor Roosevelt from the President's
special train while enroute from the West to Washington,
and was made public in press dispatches from Yuma, Ariz.
The President had journeyed to his home in California prior
to the election to vote. He reached Washington on the
return trip on Nov. 16. In his telegram to Governor Roosevelt President Hoover said:
I have publicly stated my position as to these questions, including that I
do not favor cancellation in any form, but that we should be receptive to
proposals from our debtors of tangible compensation in other forms than
direct payment in expansion of markets for the products of our labor and
our farms. And I have stated further that substantial reduction of world
armament, which will relieve our own and world burdens and dangers,
has a bearing upon this question.
He likewise says:
Any negotiation of this question on the basis of the requests of these
governments is limited by the resolution of the next Congress, and if there
is to be any change in the attitude of the Congress it will be greatly
affected by the views of those members who recognize you as their leader
and who will properly desire your counsel and advice.
In expressing the hope that Governor Roosevelt would
find it convenient to stop in Washington long enough for
the President to advise with the Governor, President Hoover
added:
I should, of course, be only too glad to have you bring into this conference any of the Democratic Congressional leaders or other advisers you
may wish.
On Nov. 14 Governor Roosevelt accepted the President's
invitation, and his reply is given elsewhere in our issue
to-day. President Hoover's telegram follows:
3447
Nov. 12.
Governor Franklin D. Roosevelt,
Albany, N. Y.
The Secretary of State has informed me that the British Ambassador, on
behalf of his Government, has handed him a note stating that "they believe
that the regime of intergovernmental financial obligations as now existing
must be reviewed; that they are profoundly impressed with the importance
of acting quickly, and that they earnestly hope that the United States
Government will see its way clear to enter into an exchange of views at
the earliest possible moment."
The British Ambassador further asks for a suspension of the payments
due by the British Government to our Government for the period of the
discussion suggested or for any other period that may be agreed upon.
This last suggestion clearly relates to the payment of $95,000,000 which
will fall due on Dec. 15 1932;I have requested the Secretary of State to
transmit to you a full copy-of that note.
The Secretary of State has also just been informed that similar requests
are to be made by other debtor governments, which likewise are obligated
to make payments to the United States on Dec. 15 next. One debtor
nation has defaulted on a payment due Nov. 10 and another debtor nation
has served notice on our Government of its incapacity to make a payment
due in December. Thus our Government is now confronted with a world
problem of major importance to this nation.
The moratorium which I proposed a year ago in June—that is, the year's
postponement of intergovernmental debts and the spread of the deferred
payment over 10 years—was approved by the Congress. It served a great
purpose in staying destruction in every direction and giving to Europe a
year in which to realize and so modify their attitude on solely European
questions as to support their credit structure from a great deal of further
destruction. They have made very substantial progress during that year
in financial adjustments'among themselves and toward armament reduction.
Practically all of our World War debt settlements were made not by
the Executive, but by the commission created by Act of Congress, and all
were approved in the form of legislation enacted by both houses. A year
ago, in recommending to the Congress the ratification of the moratorium,
I presented a statement of my views as to the whole of the relationship
of ourselves to our debtor countries, and pointed out that debts to us
bore no relationship to debts between other nations which grew out of
the war.
At the same time I recommended to the Congress that a new debt consmission be created to deal with situations that might arise owing to the
temporary incapacity of any individual debtor to meet its obligations to
our country during the period of world depression. Congress declined to
accede to this latter recomMendation ; it passed a joint resolution, reading,
in part, as follows:
"It is hereby expressly declared to be against the policy of the Congress that any
of the indebtedness of foreign countries to the United States should be in any manner
canceled or reduced; and nothing in thili joint resolution shall be construed as indicating a contrary policy or as Implying that favorable consideration will be given
at any time to a change In the policy hereby declared."
The limitation to purely temporary and individual action as to those
incapable of payment during the depression expressed in the "communique"
referred to in the British note,'and in my recommendation to the Congress,
was evident in these documents. The refusal of the Congress to authorize
even the examination of this limited question, together with the above
resolution, gave notice to all debtor governments of the attitude of this
Government toward either cancellation or reduction of existing obligations.
Therefore, any committnents which European governments may have made
between themselves could not be based upon any assurances of the United
States.
Moreover, the tenor of negotiations asked for by the debtor government
goes beyond terms of the Congressional resolution referred to.
I have publicly stated my position as to these questions, Including that
I do not favor cancellation in any form, but that we should he teeeptive
to proposals from our debtors of tangible compensation in other forms than
direct payment in expansion of markets for the products of our labor and
our farms. And I have stated further that substantial reduction of world
armament which will relieve our own and world burdens and dangers
has a bearing upon this question. If negotiations are to be undertaken
as requested by these governments, protracted and detailed discussions
would be necessary which could not be concluded during my Administration.
Any negotiation of this question on the basis of the requests of these
governments is limited -by- the resolution of the Congress, and if there,
is to be any change in the attitude of the Congress it will be greatly*
affected by the views of those members who recognize you as their leader
and who will properly desire your counsel and advice.
This outlines where the question stands at the present moment.
I am prepared to deal with the subject as far as it lies in the power
of the Executive, but it must be Our comMon wish to deal with this question
in a constructive fashion for the common good of the country. I am loath
to proceed with recommendations to the Congress until I can have an opportunity to confer with you personally at some convenient date in the
near future.
There are also other important questions as to which I think an interchange of views would be in the publio interest. The building up of world
economic stability is, of course, of the greatest importance in the building
up of our recovery. As you know, a world economic conference will be
held during the course of the coming winter. Already two American
experts have met with the technical experts of other governments to prepare tentative agenda. While this conference may be begun during my
Administration, it is certain that it will not complete its labors until
after you have assumed office.
Parallel with this, of course, is the disarmament conference in which
the United States has taken a leading part. This also has a great economic
purpose, as well as the advancement of world peace.
Time is of great importance in all these questions, and I understand
that you are planning to come through Washington some time during
the latter part of next week, and I hope you will find it convenient to
stop off long enough for me to advise with you.
I should, of course, be only too glad to have you bring into this conference any of the Democratic Congressional leaders or other advisers
you,may wish.
HERBERT HOOVER,
Prof. Dewey of People's Lobby Urges Writing Down of
War Debts—Would Also Keep Interest Payments
Low.
The writing down of governmental and non-governmental
debt in the United States so that these debts and the interest
payments thereon would not be worth more to the creditors
than at the time they were contracted was advocted by
3448
Financial Chronicle
Prof. John Dewey, President of the People's Lobby on Nov.
14, according to Washington advices on that date to the
New York "Times" which also said:
He held that the American people could not carry the burden of debts
with present low prices of farm products and low wages and that with the
election out of the way, the situation must receive serious consideration.
Professor Dewey placed the total government and non-governmental
debt in the United States at about 5200,000,000,000.
Professor Dewey listed among the reasons why reduction in interest
rates and principal of indebtedness was essential the following:
"Wages, prices, many profits and land values in varying degrees have
been reduced since 1929 and it is only equity that the principal of dent and
the interest thereon should be reduced at least.
"Public acquisition of public utilities, natural resources and basic industries would be greatly facilitated by writing down debts."
Louis J. Taber, master of the National Grange, at a grange
meeting at Winston-Salem, N. C., Nov. 16, according to
Associated Press advices to the New York "Times," said:
The grange has declared again and again their belief that these are honest
debts, that they should be paid and that any reduction places an added and
unfair burden on the taxpayers of the United States.
The collapse of many nations in Europe, the drop in commodity prices,
the depreciation of foreign currency, the erection of tariff oarriers and world
disintegration compel the reconsideration of this whole debt proolem in the
light of world stability and world peace. We have a right to collect just
deots, but we do not have the right to put great nations of the world into
involuntary receivership or to add to the present international confusion.
Agriculture has a very large stake in the foreign cleat settlement. We
cannot tolerate the acceptance of ageicultural commodities from foreign
nations in payment of these debts. We cannot ask that the products of
labor or manufacturing be accepted at the present time. Foreign nations
do not have sufficient gold for immediate payment; therefore postponement, reconsideration or readjustment. of this proolem becomes imperative
to prevenb further world collapse.
We suggest that there be no cancellation, out that there be a short period
of postponement of interest charges, and that during that period our deotor
nations in Europe be given a credit offrom 10 to 20% debt reduction on all
Purchases of agricultural products in the United States which can be
moved at a price which will allow a marginal profit to the producer.
No Exact Precedent Found in President Hoover's
Action in Seeking Conference with Gov. Roosevelt
on War Debts.
Associated PreSS advices from Washington, Nov. 13, said:
Pages of history were thumbed in vain to-day for a precedent for President Hoover's action in inviting his successor to help share in framing
policies of State before he takes office.
A search of available records showed:
That President Wilson planned to clear the way for immediate succession
by Charles E. Hughes in 1916, had be been defeated, by making him
Secretary of State and having the Wilson regime resign so that he would
take office automatically.
That President Lincoln, at the end of his first term thought defeat
possible and proposed to call in his successor for co-operative efforts during
the final months of his tenure of office.
President Taft after his defeat in 1912 supplied to President-elect Wilson
confidential data on conditions in Mexico. This is the only known instance
of Presidential action resembling that of Mr. Hoover.
Defeated Presidents for the most part have confined their last months
In office in preparing to step aside gracefully—some, like Andrew Jackson
and the two Adamses, displayed temper as they left without doing full
honors to their successors.
In connection with Mr. Hoover's action, his congratulatory message,
Tuesday night (Nov. 10] to his Democratic conqueror was recalled.
"In the common purpose of all of us I shall dedicate myself to every
possible helpful effort," he wired.
Reply of President-elect Roosevelt to President Hoover
Accepting Latter's Invitation for Conference on
War Debts.
Governor Franklin D. Roosevelt of New York, in answer
to President Hoover's invitation for a conference on war
debts, expressed himself as "glad to co-operate in every
appropriate way." Governor Roosevelt (the President-elect)
suggested that the meeting be "wholly informal and personal." "You and 1," he said, "can go over the entire situation." The President's invitation is given elsewhere in
our issue to-day. Governor Roosevelt's reply follows:
Albany, N. Y., Nov. 14 1932.
The President,
The President's Special,
Pratt, Kansas.
I appreciate your cordial telegram. On the subjects to which you refer,
as in all matters relating to the welfare of the country, I am glad to cooperate in every appropriate way, subject, of course, to the requirements
of my present duties as Governor of this State.
I shall be delighted to confer with you in Washington, but I have been
confined to the house with a slight cold and I am, therefore, not able to
suggest a definite date. I shall call you on the telephone as soon as the
time of my departure for the South has been determined.
May I take the liberty of suggesting that we make this meeting wholly
informal and personal ? You and I can go over the entire situation.
I had already arranged to meet a number of the Democratic leaders of
the present Congress late this month at Warm Springs. It will be helpful
for me to have your views and all pertinent information when I meet
with them.
I hope that you also will see them at the earliest opportunity, because,
In the last analysis, the immediate question raised by the British, French
and other notes creates a responsibility which rests upon those now vested
with executive and legislative authority.
My kindest regards,
FRANKLIN D. ROOSEVELT.
Nov. 19 1932
President Hoover and President-Elect Roosevelt to
Confer on Debts in Washington Nov. 22.
On Nov. 17 it was made known in a White House announcement that the conversations between the President and
Governor Roosevelt will take place next Tuesday, Nov. 22.
The announcement was made following a telephone message
to the President by the Governor from Albany on Nov. 17.
The White House announcement of that date said:
The President and Governor Roosevelt talked over the telephone this
morning in respect to the meeting over the questions raised in the President's telegram of Nov. 12. Governor Roosevelt Is arriving in Washington
at 3:30 o'clock on Tuesday and will come directly to the White House
offices. The conversations will be informal. The President will be accompanied by Secretary Mills. Governor Roosevelt will be accompanied by
some one interested in the subject.
Another White House announcement, Nov. 17, stated:
The President has requested the three ranking Republican and Democratic members of the Finance Committee of the Senate and the Ways and
Means Committee of the House to meet with him on Wednesday morning
at 10 o'clock to discuss the question of foreign
debts.
The Washington correspondent of the New York "Journal
of Commerce" pointed out, on Nov. 17, that the three
Republican members of the Finance Committee are Senators
Smoot, Utah; Watson, Indiana, and Reed, Pennsylvania.
Democratic members: Senators Harrison, Mississippi; King,
Utah, and George, Georgia. The three ranking Republicans
of the Ways and Means Committee are Representatives
Hawley, Oregon; Treadway, Massachusetts, and Bachara,ch,
New Jersey. Democrats: Collier, Mississippi; Rainey,
Illinois, and Doughton, N. C.
Governor Roosevelt made known, on Nov. 17, that
Prof. Raymond I. Moley of Columbia University, his research adviser, will accompany him to Washington
President Hoover Meets with Members of His
Cabinet.
Gathering his full Cabinet around him for the first time in
months, President Hoover, according to Associated Press
dispatches from Washington yesterday (Nov. 18) gave consideration to war debt and domestic problems as a prelude
to his conferences next week with President-elect Roosevelt
and Congressional leaders. The dispatches,in part,also said:
One or more members of the official family have been absent from Cabinet
sessions since midsummer for campaign or other reasons, but all answered
the call to-day in the face of what Mr. Hoover has termed a pending "world
problem of major importance to this nation."
Requests of foreign debtors for a moratorium extension and a review of
the debt field received Cabinet attention along with the gigantic task of
paring Federal expenditures down to the level of receipts.
As they arrived at the White House, members were informed that the
President, in an historic telephone conversation with his successor-elect
Yesterday, had arranged to meet him shortly after 3:30 P. m. next Tuesday
afternoon in the executive offices to discuss debt and allied problems.
Secretary of Treasury Mills Reported As Viewing War
Debts As Congress's Problem.
Secretary of Treasury Mills sees the debt problem as one
for Congress to deal with, he declared on Nov. 14, according to adviees from Washington to the "Wall Street Journal"
from which we also quote as follows:
..It not a question of looking to this end of
the avenue," he said, referring to the executive department of the Government. "It is
a question of
what Congress wants to do.
"We have no authority to waive any payments," he said.
"These agreements have the force of law. What will be done depends very much on
what the Democratic leadership of the House will do and if any action is
taken it must be taken by agreement among these leaders."
The Secretary indicated that Governor Roosevelt would probably
be
consulted by the leaders. He declined to comment on President Hoover's
attitude towards the British and French notes.
Mr. Mills said that he read in these notes no intention on the part of
France and Great Britain to default in case a moratorium is not granted
by the United States.
Reconsideration of War Debt Agreements Held Necessary in Report of Group of Economists—Congress
Asked to Authorize Re-creation of World War Debt
Commission for Readjustment—Extension of Moratorium Pending Readjustment Urged.
"A reasonable readjustment of intergovernmental debts
promises far greater material benefits to the American
people than the direct income which would be received if
payment could be made in full," says a report of the Committee for the Consideration of Intergovernmental Debts,
made public on Nov. 14 by the Chairman of the Committee,
Alfred P. Sloan Jr., President of the General Motors Corp.
According to the report, "complete cancellation is neither
an economic necessity, nor a practical political possibility."
The report contends that "by a sensible readjustment of
these agreements which would stimulate a revival of business, the American people would stand to gain far more in
dollars and cents through a revival of trade with Europe
Volume 135
Financial Chronicle
than they would gain in an attempt to collect the last dollar." The report recommends:
1. That the elected representatives of the American people recognize this
vital and delicate problem as a non-partisan issue to be settled strictly on
Its merits in the best interests of the United States.
2. That Congress authorize, by the re-creation of the World War Foreign
Debt Commission or otherwise, such reconsideration and readjustment of
the debt funding agreements as would best redound to the economic advantage
of the United States.
3. That Congress extend the moratorium for a sufficient period to give
time for the negotiations necessary for the proposed readjustment.
The report states that "the most formidable obstacle to
the full discharge of these debts is not that of raising the
required amounts in the debtor countries, but the difficulty
of transferring these payments to the United States." The
report goes on to say:
To pay a debt, a nation, like an individual, must earn more and spend
less in order to obtain surplus savings with which to meet the creditor's
claims. In the case of debts owed by one country to another, however, the
debtor nation must not only raise the required amount in its own currency
by taxation of its own citizens, but it must convert this sum into the currency of the creditor nation. Since payment of any substantial part of the
debts in gold is impossible, the debtor nation, therefore, must buy less
frail other countries of the world than it sells to them. The creditor
nation must be prepared to accept these surplus goods and services in
repayment of its loans, by reducing its own exports and increasing its
Imports.
It follows, therefore, that lithe United States is to receive the debt payments in the only way they can be made, we must be willing to sell leas
goods and services than we buy in the markets of the world. To reduce our
exports still further and to increase our imports means that the market for
American goods, both at home and abroad, will be curtailed still more, to
the detriment of American industry and labor.
But the United States, like most other industrial countries, has pursued
the policy of curtailing imports by the erection of high tariff walls and of
aggressively pushing its export trade. Whatever the merits of this policy
may be, it is clearly inconsistent with the position of a creditor country
which insists upon full payment of its loans.
The report further says:
The attempt to make such payments in the face of these obstacles to
International trade already has resulted in a serious weakening of foreign
exchange markets and abandonment of the gold standard by several European
countries. An effort to continue full payments on the war debts at this
time would contribute to a further depreciation of foreign currencies and
perhaps abandonment of the gold standard by countries whose exchange
Is still being maintained with difficulty at par.
The report is signed by James W. Angell, Columbia University; Ernest
Minor Patterson, University of Pennsylvania; Edwin It. A. Seligman, Columbia University; Frank IV. Taussig, Harvard University; Rufus S.
Tucker, Consulting Economist, New York City; Jacob Viner, University
of Chicago, and Jehn Parke Young, Occidental College. The names of
those who approved the report made public, are as follows, on Nov. 14:
Nicholas Murray Butler, President Columbia University, New York.
John IV. Davis. former Ambassador to Great Britain, New York.
Frank 0. Lowden, former Governor of Illinois, Oregon, Ill.
Alfred E. Smith, former Governor of New York, New York.
Henry A. Wallace, editor "Wallace's Farmer," Des Moines.
George W. Wickersham, former Attorney-General, New York.
J. Don Alexander, President Alexander Industries, Inc., Colorado
Springs, Colo.
George P. Auld, former Accountant-General Reparations Commission,
New York.
Max Wellington Babb, President Allis Chalmers Manufacturing Co.,
Milwaukee.
Jules S. Bache, banker, New York,
Frank R. Bacon, President the Cutler-Hammer Manufacturing Co.,
Milwaukee.
Ralph Reed Baer, President the Topeka Packing Co., Topeka.
Pressley II. Bailey, Manager Westinghouse Estate Property, Pittsburgh.
John D. Baker, President Baker & Holmes Co., Jacksonville, Fla.
Hugh Bancroft, President Dow, Jones & Co., Boston.
Osmond G. Bates, President Wilson Bates Furniture Co., Ely, Nev.
Albert F. Bernie, Bemis Bros. Bag Co., Boston.
George Blumenthal, Director Continental Fire Insurance Co., New York.
Robert A. Booth, President Oregon Land & Live Stock Co., Eugene, Ore.
Francis King Carey, President National Sugar
Manufacturing Co.,
Baltimore.
William R. Coe, Chairman of Board Johnson & Higgins, New York.
Lucius It. Eastman, President the Mills Bros. Co., New York.
Lawton B. Evans, Superintendent of Schools, Augusta, Ga.
John H. Fahey, former President United States Chamber of
Commerce,
Boston.
William S. Farish, President Humble Oil & Refining Co., Houston,
Tex.
Austen G. Fox, lawyer, New York.
William B. Hale, lawyer, Chicago.
John Henry Hammond, Chairman Executive Committee, Bangor
Sz
Aroostook RR. Co., New York.
Charles C. Isely, grain and lumber merchant, Dodge City, Ran.
Fred I. Kent, former Vice-President, Bankers' Trust Co., New York.
Edgar Kobak, President Advertising Federation of America, New York.
J. G. Luhrsen, President American Train Dispatchers' Association, Chicago.
E. J. Manion, President Order of Railroad Telegraphers, St. Louis.
Walter B. Mitchell, President Dairymen's Co-operative Creamery of
Boise
Valley, Parma, Idaho.
Peter Molyneaux, editor "The Texas Weekly," Dallas.
Charles Nagel, former Secretary of Commerce and Labor, St. Louis.
Frederick B..Patterson, President National Cash Register Co., Dayton.
Charles S. Pearce, President Colgate-Palmolive-Peet Co., Chicago.
James W. Pollock, director Russell-Miller Milling Co., Fargo, N. D.
Walter R. Reed, owner Walter R. Reed Seed Farms, Fargo, N. D.
Jacob Gould Sehurman, former Ambassador to Germany, New York.
John Thomas Smith, General Counsel General Motors Corp., New York.
C. R. White, director, northeastern region, American Farm Bureau Federation, Ionia, N. Y.
Benjamin L. Winchell, Chairman Executive Committee Remington-Rand,
Inc., New York.
Clarence H. Woolley, Chairman of Board, American Radiator Co., New
York.
D. B. Robertson, President Brotherhood of Locomotive Firemen and
Engi^emen, Cleveland.
3449
A. F. Whitney, President Brotherhood of Railroad Trainmen, Cleveland.
Frederic R. Coudert, lawyer, New York.
Charles H. Strong, Secretary Association of the Bar, New York.
Alfred P. Sloan Jr., President General Motors Corp., New York.
James M. Cox, former Governor of Ohio, Dayton.
An item announcing the formation of the committee of
business men, agricultural and labor leaders, under the
Chairmanship of Mr. Sloan, appeared in our issue of Sept. 17,
page 1939.
In making public the report, this week, Mr. Sloan is reported as saying that "it is an outstanding attempt to summarize the essential facts of the debt situation from the
American point of view with that detachment and matter-offactness urged when the committee was organized." The
New York "Times" of Nov. 14 further reports Mr. Sloan as
saying:
"It is high time that this sort of concerted attempt be made to bring
to bear on crucial economic problems the results of authoritative, unprejudiced scientific research and opinion. The effort in this case takes on
added significance from the fact that it has been checked against everyday
business experience by the industrialists and business men who have endorsed
the findings of the economists."
Mr. Sloan revealed that his committee planned to follow its report by
others "in the hope that on the basis of the information purveyed an
informed public opinion can be built up and intelligent action taken by
the Government."
The report in full follows:
1.---fehe Present Crisis.
By the terms of the agreement reached at the Lausanne conference, which
is yet to be ratified by the Parliaments of the signatory nations, the reparations which Germany is required to pay the Allies have been reduced from
the original total of $32,000,000,000 set by the Reparations Commission
in 1921 to approximately $714,000,000. When this settlement is finally
put into effect reparations will be at an end as a political problem. Even
if the Lausanne agreement is not ratified in exactly its present form, it is
generally agreed that the sum decided upon is the maximum which can be
obtained from Germany.
Germany's creditors agreed to this drastic action not from motives of
altruism but for reasons of enlightened self-interest. They recognized that
an attempt to compel Germany to continue regular payments might result
in a financial and economic collapse and political disturbances in Europe,
to the detriment of creditor and debtor alike.
The same critical economic conditions throughout the world which have
led to this settlement now make it to the interest of the United States to
reconsider the question of the so-called war debts owed to this country.
These debts are obligations to which the nations are legally and morally
committed. The principal questions which the American people should
consider are, first, whether the debts can or will be paid; and, second,
whether a realistic and flexible policy of adjustment aimed to stimulate
American trade would not result in greater profit to the United States than
an attempt to collect them in full.
Sentimental considerations need not concern us. It is a well-recognized
principle of public as well as private business that a creditor can better
afford to readjust the terms of a debt than to risk the loss of the entire
sum and to jeopardize future trade by attempting to force payments that
will not be met.
The ultimate economic and political interests of the American people
are, therefore, the primary considerations on which the American Government should base its policies. Do the interests of the American people
demand reconsideration of those debts? Only a dispassionate review of
the facts can give the answer.
11.—The Nature and Origin of the Debts.
During the war the United States loaned her Allies about $7,000,000,000,
chiefly for the purchase of foodstuffs, raw materials, munitions and other
war supplies in this country. After the armistice additional cash loans of
$2,500,000,000 were made and upward of $700,000,000 worth of surplus
supplies and foodstuffs were sold on credit to the Allies and to the new
countries created by the Treaty of Versailles. In other words, 70% of the
original debt of $10,200,000,000 was incurred during the war and only 30%
after the armistice. Only a part of the post-armistice loans were used for
"reconstruction" purposes.
The World War 'Foreign Debt Commission was created by Act of
Congress in 1922 to make arrangements with representatives of the debtor
nations for payment of these obligations. From 1923 to 1927 funding agreements were completed with each nation separately. The total amount of
the debts as a result of their funding was approximately $11,500,000,000,
including about $1,700,000,000 of accrued and previously unpaid interest.
In addition, the agreements obligated the debtors to pay, over a 62-year
period, interest amounting to $10,600,000,000.
A grand total of $22,100,000,000 was, therefore, to be received
by the
Milted States during the period ending in 1987. Payments were
provided
for in annual installments commencing with $168,000,000 in
1923 and
increasing to a peak of $425,000,000 in 1985.
111.—The Funding Agreements.
In reaching its agreements with debtor governments
the Commission
based its decisions upon the principle of "capacity to
pay," as was stated
In its report for 1925:
"While the Integrity of international obligations must be maintained, it
is axiomatic that no nation can be required to pay to another
Government sums In excess
Of Its capacity to pay. . . . Nor does the
principle of capacity to pay require
the foreign debtor to pay to the full limit of Its present
or future capacity. It must
be permitted to preserve and Improve its economic
to bring its budget Into
balance and to place its finances and currency on position,
a
sound
basis, and to maintain
and If possible to Improve the standard of living of Its citizens."
Although it was recognized that "the capacity of a nation to
pay over a
long period of time is not subject to mathematical
determination," each
debt agreement was designed to make it possible for the
debtor country to
lay aside an annual surplus above its essential
requirements and to transfer
this surplus to the United States in dollars without denying
it a "reasonable
opportunity to live and prosper" during the term of
the agreement.
All the debt agreements provided for repayment of
the principal, not
only of war loans proper but also of the debts
contracted after the armistice.
The interest payments, however, were fixed in accordance
with the capacity
of each debtor to pay, as then estimated. The total amounts
to be paid
were, therefore, reduced in varying degrees
below the amounts which
would have been received if the principal had been paid in full
and interest
at the then prevailing rates had been charged.
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Financial Chronicle
The settlements with Great Britain and with Czechoslovakia, Estonia,
Finland, Hungary, Latvia, Lithuania, Poland and Rumania, whose obligations were contracted after the armistice, involving nearly half the total
debt, carried a 3% rate for the first 10 years and a 3.5% rate thereafter,
or an average of 3.3% for the entire period. These rates were said to
involve a substantial reduction in the funded debts of these nations, whose
original loans were contracted at 5% because, at the time of funding, the
average rate of interest on our Government loans was 4%%.
Since then, however, some of the original Liberty Bond issues carrying
a high rate of interest have been retired and rates on new loans have
dropped. The average interest rate now paid by the United States Govern-term loans have
ment on all borrowed money is 3.5%, and new long.
probably conrecently been floated at still lower rates. Low rates Sill
tinue, and it is quite possible that over a long period of time our Governless. Should
3%
or
of
average
for
an
ment will be able to borrow money
this lower rate prevail over the entire period covered •by the debt-funding
arrangements and should the original agreements stand, these nine governments not only will have repaid their loans in full but they will have
paid interest which may permit the United States to make an ultimate
profit out of these transactions.
Interest charged on the debts of Italy, Yugoslavia, France and Belgium,
on the other hand, was at much lower rates, which are also considerably
less than the present rate on our Government borrowings. The average
rate varied from 0.4% to 1.8%, so that the combined debt of these four
governments has been reduced by more than 40%, compared with what It
would have been if calculated on the basis of 3% interest.
IV.—Payments to Date.
Contrary to a popular impression, the United States has already been
paid substantial amounts on both the principal and interest of the debts.
Scheduled payments were made promptly from the date of funding up to
June 30 1931, when, as the Jesuit of President Hoover's proposal, a one-year
moratorium was declared. On the funded indebtedness $1,230,000,000 has
been pair: in interest and $440,000,000 on principal. Total receipts of
principal and interest to date, including payments made under the funding
agreements, prior to funding, and on certain unfunded war debts, amount to
more than $2,600,000,000, a sum which exceeds one-quarter of the original
amounts advanced to all debtor nations.
Although the required installments on the war debts have been paid
regularly by our debtors since the funding agreements were signed, it is
now apparent that the effort to meet these payments was one of the many
complicating factors in the world's present financial distress. Moreover,
without reparation receipts it would have been much more difficult for
the debtor governments to make their payments to the United States.
During the period since the war our debtors have received from Germany
in reparations more than they have paid the United States on their debts.
Reparation payments in turn were exceeded by the total of Germany's
foreign borrowing during this period, a large proportion of which money
was obtained from the United States. It is no exaggeration, therefore,
to say that American and other private loans to Germany have enabled
her to pay reparations, while German reparations supplied our debtor
governments with funds sufficient to meet their war debt payments to
the United States.
Inasmuch as the moratorium has not been extended, the debtor governments are committed to resume regular payments during this fiscal year,
although the original debt agreements make possible a partial postponement of annual payments in case of need. The next substantial installment
of approximately $126,000,000 is due on Dec. 15 next.
V.—The Present Paralysis.
The original funding agreements represented, at the time they were
made, an attempt to settle these obligations in a liberal spirit. They
reflected the best judgment of honest and intelligent negotiators of the
just claims of the creditor in the light of the capacity of the debtor to
pay at that time. These settlements, however, were made on the assumption that European economic conditions would continue to improve and that
the future burden of debt payments would consequently be lessened. The
agreements did not contemplate or provide for a depression of such cataclysmic proportions 28 now afflicts the entire world.
A new set of circumstances has arisen. The financial paralysis of the
last three years has radically changed the capacity of the nations to pay,
upon which the entire debt structure rests. The chief factors in this
change may be summarized as follows:
1. The Decline in Prices.
Wholesale prices the world over have declined more than a third since
the debts were funded. Obligations of this magnitude can ultimately be
paid only in goods and services. To pay every thousand dollars of the
debt as originally funded, therefore, our debtors must now sell half as
much again in commodities. In other words, the burden of their payments
has been increased 50%. If prices increase, the difficulty of making
payments will, of course, be proportionately lessened, but there is no
likelihood of a sufficiently rapid advance to restore prices to 1929 levels
within the near future.
2. The Reduction of Foreign Trade.
In the last analysis, intergovernmental debts, like private international
debts, must be paid by transferring property rights in goods and services
from the debtor to the creditor. This means that the debtor nation can
pay its debts only by building up an export surplus of goods and services
which the creditor nation must be willing to receive. The foreign commodity trade of the debtor countries, however, which has always been
recognized by the Debt Commission as one of the chief indices of the
nations' capacity to pay, has fallen to a value only 60% of that of 1929.
This shrinkage in exports has been only partly due to the decline in prices.
The high level of tariffs and the existence of other trade restrictions such
as import quotas has retarded or prevented the exchange of goods between
countries which make such debt payments possible. No less than seven
leading nations have made general upward tariff revisions within the past
three years.
3. Transfer Difficulties.
The debt agreements call for payments not in the currencies of the
debtor nations but in dollars. Therefore, the debtor must either ship the
required amount in gold or purchase dollars in the foreign exchange
market. Payment of any large part of the debts in gold would be utterly
imposible since the total supply of the world's monetary gold, about 35%
of which is already held in the United States, is no larger than the principal of the debts and only one-half of the total payments required over
the entire period. Even if possible, such payments would be quite
undesirable from the American point of view.
Nor has the other alternative proven practicable, because of the imposition of exchange restActions and the depreciation of foreign currencies.
Great Britain. for example, with the pound worth $3.50 instead of $4.86,
must pay £80 more for every thousand dollars transferred to the United
Nov. 19
1932
States. As a matter of fact, the present disorganization of foreign exchange
and of international trade has been due in great part to the difficulties
of making large international payments not only on government loans
but on private obligations as well.
4. Cessation of Reparations.
Through the virtual cancellation of reparations from Germany under
the Lausanne Agreement, our principal debtors will lose a source of revenue
which in the past has been more than sufficient to pay their war debt
installments. The economic depression and the cessation of American loans
to Germany after 1929 have prevented her from obtaining the exchange
which rendered it possible for reparations to be paid to our debtors, and
for the latter to meet their installments due the United States Treasury.
5. Difficulties of National Finance.
The extreme difficulties of the debtor governments in raising money
from their citizens in the present world depression have also had an important effect upon their capacity to pay. Their revenues are now being
obtained only with greatest difficulty from already overtaxed people,
while their fiscal problems have been further aggravated by the cessation
of reparations. Tax levels in some of the debtor countries have already
been raised to the point of diminishing returns. The burden of taxation
in all of the debtor countries is much heavier than in the United States.
This is true even where per capita taxes are less than in the United States,
because the per capita income is far lower.
VI.—The Consequences of Demanding Payment.
Two courses of action are open to the United States: Either a demand
for payment of the debts as they now stand or a reconsideration of their
terms. Complete cancellation is neither an economic necessity nor a
practical political possibility. It is important to explore the consequences
of a refusal to modify the present debt agreements.
1. The Effects of Repudiation or Default.
In the first place, it must be recognized that there is no way, short
of going to war, by which the United States can force the full payment
of these debts if the debtor nations are either unwilling or unable to pay.
If we insist upon full payment our debtors may either default on payments
or repudiate the debts. As Secretary Mellon said in 1926, "Those who
insist upon impossible terms are in the final analysis working for an entire
repudiation of the debts."
To force -the alternative of repudiation or default would mean a loss
to the United States of any further revenue from these debts. Furthermore, the act of repudiation or default, in itself, would seriously impair
international confidence. These consequences would still further hinder
our commercial and financial relations not only with Europe but with other
parts of the world as well.
2. The Difficulties of Making Payments.
An effort on the part of the debtor nations to continue payments on
the present scale would further weaken the internal fiscal position of their
governments. It is doubtful whether higher taxes would be productive in
view of the already depleted incomes of the European peoples.
Moreover, it must be admitted that the difficulty of securing sufficient
revenues to meet war-debt payments is further enhanced by the fact that
citizens of the debtor nations regard these debts, contracted during a
common war, as being of a special character. Revenues from taxation,
like payments of debts, have definite limits in the taxpayers' willingness
as well as ability to pay. Recent developments in Germany indicate that
serious political disturbances, perhaps leading to the overthrow of existing
governments, might result from an attempt to impose too onerous taxes.
Such developments would obviously cause a serious depreciation in the
value of foreign bonds now held by thousands of American banks and by
tens of thousands of American investors in all parts of the country and
might even cause default on private loans and investments. This would
menace the solvency of these institutions and the funds of their depositors.
It might also make difficult, if not impossible, the liquidation of a
large volume of American short-term credits now outstanding in Germany
and other European countries.
3. Difficulties of Receiving Payments.
The most formidable obstacle to the full discharge of these debts is not
that of raising the required amounts in the debtor countries but the difficulty of transferring these payments to the United States.
To pay a debt, a nation, like an individual, must earn more and spend
less in order to obtain surplus savings with which to meet the creditor's
claims. In the case of debts owed by one country to another, however.
the debtor nation must not only raise the required amount in its own
currency by taxation of its own citizens but It mud convert this sum into
the currency of the creditor nation. Since payment of any substantial
part of the debts in gold is impossible, the debtor nation, therefore must
buy less from other countries of the world than it sells to them. The
creditor nation must be prepared to accept these surplus goods and services
in repayment of its loans by reducing its own exports and increasing its
imports.
It follows therefore that if the United States is to receive the debt
payments in the only way they can be made we must be willing to sell
less goods and services than we buy In the markets of the world. To
reduce our exports still further and to increase our imports mean that the
market for American goods, both at home and abroad, will be curtailed
still more to the detriment of American industry and labor.
But the United States, like most other industrial countries, has pursued
the policy of curtailing imports by the erection of high-tariff walls and of
aggressively pushing its export trade. Whatever the merits of this policy
may be, it is clearly inconsistent with the position of a creditor country
which insists upon full payment of its loans.
The attempt to make such payments in the face of these obstacles to
international trade has already resulted in a serious weakening of foreign
exchange markets and abandonment of the gold standard by several European countries. An effort to continue full payment on the war debts at
this time would contribute to a further deprecation of foreign currencies
and perhaps abandonment of the gold standard by countries whose exchange
is still being maintained with difficulty at par.
4. The Threat to American Business, Agriculture and Labor.
"The entire foreign debt is not worth as much to the American people
in dollars and cents as a prosperous Europe as a customer." 'Phis is as
true now as it was six years ago, when Secretary Mellon made this statement. The finances of Europe have been seriously dislocated and her
industry depressed, the buying power of her people for American goods
has been cut to low levels by the world depression. Intergovernmental
debts have been one of several factors in creating this situation from
which the United States as well as the rest of the world has suffered. Bv
insisting on full payment this already serious situation would be still
further aggravated.
Volume 135
Financial Chronicle
In 1929 the United States sold $5,000,000,000 worth of American goods
abroad—nearly one-tenth of the total output of our farms, factories and
mines. It is estimated that nearly 2,500,000 American workers were then
engaged in producing goods for export, half of which were sold in Europe.
The decline since 1929 in our exports to Europe amounts to over
$1,000,000,000, or the equivalent of $9 per capita—more than four times
the installment due on war debts in this fiscal year. The loss in European trade alone is estimated to have thrown out of employment some
300,000 American workmen with a wage loss of $500,000,000 a year.
The decline in European purchases of American goods has affected most
severely our Southern and Western States which normally export large
amounts of foodstuffs and raw materials to Europe. In the case of raw
cotton alone, exports to European countries, which normally take over 40%
of our entire output, have declined from a total of $605,000,000 in 1929
to $191,000,000 in 1931, or a loss of $414,000,000. Exports of meat
products and of wheat and flour to Europe have fallen from $249,000,000
in 1929 to $113,000,000 in the past year.
The decline In American import trade, reflecting not only lower prices
but also smaller purchases of foreign goods, has had a direct influence on
governmental rmenues. In the fiscal year 1929 customs collected on
dutiable imports, a large share of which came from Europe, amounted to
$602,000,000. In the fiscal year just ended, however, these revenues had
declined to $328,000,000, in spite of increased tariff rates.
VII.—Consequences of Readjustment.
A reasonable readjustment of intergovernmental debts promises far
greater material benefits to the American people than the direct income
which would be received if payment could be made in full. The installment due this fiscal year on the debts amounts to about $280,000,000,
or $2.24 per capita in temls of the American population. Large as this
total may seem, it is small in comparison with the gains which would
follow even a partial return to the prosperity of three years ago. An
increase of 1% in our annual income over the present low levels would
amount to more than twice the current annual installment on the war
debts.
Any action on our part which would maintain the solvency of Europe
and revive its power to buy American goods would be a stimulus to our
own trade and renewed prosperity at home. A readjustment of these debts
In the light of present world conditions suited both to the capacity of our
debtors to pay, and to our own ability to receive—especially if it involved
favorable concessions to American trade—would go far toward the stimulation of world-wide and American economic recovery.
Employment and the earnings of American labor would be increased.
The profits of agriculture and industry would expand. Security of private
American investments in European countries and of foreign bonds now
held by American investors, would be strengthened.
Furthermore, through this improvement in business, WC revenues would
automatically increase, while the burden of taxation upon the people
would be reduced. Taxation weighs heavily, less because of high rates
than because of low income. Even a partial return to the prosperity of
1929 would produce added revenues from income taxes far in excess of
the installment due this fiscal year on the war debts, even on the basis of
rates prevailing at that time, which were substantially lower than those in
force at present. If, through recovery of prices and restoration of domestic
buying power, our import trade were restored to the levels of three years
ago, the additional revenues from customs duties alone would amount to
nearly $300,000,000—more than enough to compensate the Treasury for
any loss resulting from reduction or even complete cancellation of war
debt payments.
VIII.—Proposals for Action.
A realization of the consequences to American well-being of excessive
demands upon our debtors makes a reconsideration of existing debt agreements necessary. By a sensible readjustment of these agreements which
would stimulate a revival of business, the American people would stand to
gain far more in dollars and cents through a revival of trade with Europe
than they would gain in an attempt to collect the last dollar.
We therefore recommend:
1. That the elected representatives of the American people recognize
this
vital and delicate problem as a non-partisan issue to be settled strictly
on
Its merits in the best interests of the United States.
2. That Congress authorize, by the re-creation of the World War Foreign
Debt Commission or otherwise, such reconsideration and
readjustment of
the debt funding agreements as would best advance the interests
of American
trade and promote the prosperity of the American people.
8. That Congress extend the moratorium for a sufficient
period to give
time for these negotiations.
JAMES W. ANGELL,.Professor of Economics, Columbia
University.
ERNEST MINOR PATTERSON, Professor of Economics,
University
of Pennsylvania.
EDWIN R. A. SELIGMAN, McVickar Professor Emeritus
of Political
Economy in Residenoe, Columbia University,
FRANK W. TAUSSIG, Henry Lee Professor of
Economics, Harvard
University.
RUFUS S. TUCKER, Consulting Economist, New
York City.
JACOB VINER, Professor of Economics,
University of Chicago.
JOHN PARKE YOUNG, Professor of Economics and
Finance, Occidental College.
French Increase Their Savings by $113,680,000 Since
Jan. 1.
From Paris advices Nov. 13 to the New York "Times" it
Is learned that in spite of the economic depression, the sharp
reduction in the number of tourists during the past year and
the high cost of living in France, the French people seem to
be able to continue to practice their traditional economy.
The message added that at a trade banquet of shopkeepers
of Les Grands Boulevard that day Minister of Labor Dallinter said that since the first of January this year deposits
In savings banks had exceeded withdrawals by 2,900,000,000
francs ($113,680,000).
French Savings Interest Cut.
According to United Press advices from Paris to the
"Wall Street Journal" of Nov. 10 the Government Savings
Bank beginning January 1 will pay depositors only 2.75%
Interest instead of 3.50%.
3451
Comparative Figures of Condition of Canadian Banks.
In the following we compare the condition of the Canadian
banks for Sept. 30 1932 with the figures for Aug. 31 1932 and
Sept. 30 1931.
STATEMENT OF CONDITION OF THE BANKS OF THE DOMINION OF
CANADA.
Assets.
Current gold and subsidiary coin—
In Canada
Sept.30 1932. Aug. 31 1932. Sept. 30 1931.
Elsewhere
38,518,422
16,960,836
$
38,643,782
17,044,058
47,039,553
24,456,662
TotaL
55,479.261
55.687.8461
71,496,219
Dominion notes—
In Canada
ElsewhereTotaL
112,385,913
10,196
115,269.942
11.126
110,374,180
12,959
112,396,111
115.281.0721
110,387,141
Notes of other banks
9,517.518
10,416,594
12,055,990
United States & other foreign currencies..
16,899,296
16.563,665
14,929,699
Cheques on other banks
90,012,317
76,160.826
97,211,138
Loans to other banks in Canada, secured,
Including 13111s rediscounted
Deposits made with and balance due
from other banks in Canada
3,586,865
3.363.990j
3,930,938
Due from banks and banking correspondents in the United Kingdom
8,813,441
13,936,989
3,597.587
Due from banks and banking correspondents elsewhere than In Canada and the
United Kingdom
87,130,741
98,137,613 108,780,215
Dominion Government and Provincial
Government securities
494,202,066 494,574,824 455,928,988
Canadian municipal securities and British, foreign and colonial public securities other than Canadian
152.166,403 155,146,926 160,100,226
Railway and other bonds. debs. & stocks
52,874,237
53,392,053
61,548.049
Call and short (not exceeding 30 dills)
loans in Canada on stocks, debentures
bonds and other securities of a sufficient marketable value to cover . 114,954,355 114,072,418 166,575,719
Elsewhere than in Canada
95,193,231
96,391,629
90,095,595
Other current loans & dLsola In Canada_ 1,003,044,855 1.004,018,372 1,136,510,527
Elsewhere
158,984,914 159,043,645 192,623,032
Loans to the Government of Canada_
Loans to Provincial Governments
22.193,954
19.411.498
32,886,243
Loans to cities, towns, municipalities
and school districts
116,621,877 123.667,970 114,793,151
Non-current loans. estimated loss pro13,456,511
vided for
13,154,927
10,309.759
Real estate other than bank premises_ _ _
7,510,487
7,365,977
6,337,205
Mortgages on real estate sold by bank_ _
6,284,693
6.008,345
6,248,477
Bank premises at not more than cost.
79,924,670
less amounts Of any) written off
80,056,763
79,466,204
Liabilities of customers under letters of
48,266,924
48,441,700
credit as per contra
62,056,921
Deposits with the Minister of Finance for
the security of note circulation
6,594,208
6.586,918
6,814,154
23,081,732
21,831,732
Deposit in the central gold reserves_
24,230,866
Shares of and loans to controlled cos_ _
12.886.773
13,150,936
14,733,840
Other assets not included under the fore1,489,931
1,403,975
going heads
1,700,040
Total assets
2,798,935,182 2,801,881,582 3,045,448,019
Notes in circulation
133,241,528 127,774,826 139,908,403
Balance due to Dominion Govt. after de15,898,370
ducting adv. for credits. pay-lists. &c.
19,040,208
17,925,201
Advances under the Finance Act
29,000,000
19,500,000
23,000,000
Balance due to Provincial Governments
32,308,954
22,117,872
31,867,029
Deposits by the public, payable on de480,662,806 475,360.461 594,275,249
mand in Canada
Deposits by the pubic PaYable after ne1,359,389,475 1,366,546,598 1,455,518,906
tice or on a fixed day in Canada
Deposits elsewhere than in Canada
307,144,396 306,551,609 313,097,017
Loans from other banks in Canada, secured, including bills rediscounted._ _
Deposits made by and balances due to
14,214,283
other banks in Canada
10.852,570
12,694,945
Due to banks and banking corespond4,495.448
ents in the United Kingdom
4,848,818
4,939,359
Elsewhere than in Canada and the
65,501,779
48,909,942
49,596,799
United Kingdom
1454.600
1,473.403
Bills payable
5,375,678
48,441.700
62,056,921
48,266,924
Letters of credit outstanding
2,165,764
2336,378
2,802.513
Liabilities not incl. under foregoing
3.007.943
720,174
800,422
Dividends declared and unpaid
162.000,000 162,000,000 162,000.000
Rest or reserve fund
144,500.000 144,500,000 144,500,000
Capital paid up
Total liabilities
i2778,384,155 2,783,086.941 3,023,014,331
bloie.—Owinn to the omission of the cents In the official reports, the footing
n the above do not exactly agree with the totals given.
Salary Cuts Proposed in French Budget.
In the 1933 French budget, introduced in the Chamber of
Deputies,on Nov. 15, receipts are estimated at 47.802,000,000
francs ($1,912,080,000) and expenditures at 47,780,000,000
francs (81,911,200,000). The present deficit is estimated at
8,000,000,000 francs ($320,000,000). Associated Press accounts from which we quote also said:
This the Government proposed to meet by stricter collection of taxes,
by a loan of 1,550,000,000 francs for public works, and by relieving the
budget of 2,070,000,000 francs through creation of an independent fund
for war pensions.
Proposed economies include a saving of 773,000,000 francs in civil service expenditures, 595,000,000 francs in veterans' pensions, and 100,000,000
francs through administrative reform.
It was further stated in Associated Press advices from
Paris:
The projected French budget includes salary cuts in the civil service
that State functionaries have opposed, but the reductions in most cases will
be less than was at first proposed, especially in the lower bracket The
cuts will run from 2 to 10%, with salaries under 12,000 francs ($480) a
year exempted.
From the Paris message Nov. 15 to the New York "Times"
we quote:
War veterans' pensions and allowances are reduced by $22,000,000 and
civil servants' salaries by $30,000,000 in the budget project for next
veer that the French Government to-day presented to the Chamber of
Deputies.
These are only two measures among the many that have been taken to
fill up the hole of 8,000,000,000 francs (about $320,000,000) that still
3452
Financial Chronicle
remained of the 12,000,000,000-franc deficit with which Premier Edouard
Herriot's government was faced In prospect when it took over office from
Andre Tardieu and his Ministers.
To-day Louis Germain-Martin, the Finance Minister, and Maurice Palmade, Minister of the Budget, were able to boast that their budget
balanced with estimated revenues of 47,801,000,000 francs (about $1,912,040,000) and expenditures of 47,779,000,000 francs.
To obtain this result, however, certain large Items of expenditure have
been taken out of the budget and placed in a special category. Pension
payments will be met through the medium of a permanent loan of more
than 2,000,000,000 francs, and certain expenditures and public works will
be met by treasury bonds in the amount of more than 1,500,000,000 francs
and designated for national equipment. This course of action is likely
to lead to severe criticism.
By economy, unless the Chamber reverses some of the Government's
proposals such as the cuts in salaries and pensions, 2,000,000,000 francs
will be saved. Finally something near 3,000,000,000 francs must be raised
by increasing the yield of existing taxation or by new taxation during a
period of exceptional business depression when all forms of revenue have
shown a tendency to decline.
France and Chile Establish Clearing Houses for Trade.
Advices as follows from Paris appeared in the "Wall
Street Journal" of Nov. 14:
Another stage in the rapid development by France of a clearing house
system for trade with countries exercising restrictions on monetary exchange has been marked by the signature of the Franco-Chilean agreement,
the most complete yet effected.
The agreement provides settlement of all commercial interchanges through
a clearing agency in each of the two countries. These agencies are authorized to sererve up to 50% of payments received from importers for
liquidation of accounts now overdue. The basis for exchange will be the
actual official rate of 65 pesos for 100 francs, compared with parity of
32 pesos for 100 francs. The National Bank of Chile undertakes to transmit in francs at this rate.
The Chilean nitrate industry is granted an exception and is allowed free
disposal of 60% of the proceeds of its sales to France.
Plans Work Loan—Seeks Huge Sum to Finance
Public Improvements Over Period.
Under date of Nov. 11 a Paris cablegram to the New York
"Evening Post" said:
France
The French Government has introduced a bill in Parliament authorizing
loans aggregating 7,163,000,000 francs to finance public works over the
next two years, in addition to taking care of renewals and subsidies
which otherwise would have been carried by the budget. A total of
3,580,000,000 francs would be borrowed in 1933.
This bill is really an installment of the Government's budget, which
will be presented to Parliament Tuesday and which is thus relieved of
expenditures aggregating 3,800,000,000 francs.
French Journalists Sail from United States—Stephan
Lausanne and Jules Sauerwein Depart After
Observing Election.
Among the 300 passengers who sailed for Plymouth and
Havre on Nov. 11 on the Paris of the French Line were
Jules Sauerwein, political editor of the Paris "Soir" and
Stephane Lauzanne, editor of "Le Matin." Both came here
to observe the election said the New York "Times" of Nov.
12, from which we also quote.
They found the election of absorbing interest and said that a great
deal of attention had been paid to it in most European countries. M.
Lauzanne said he believed President-elect Roosevelt would gain, if he did
not already have, the same respect which the people of Europe have for
President Hoover.
Many believe, M. Lauzanne said, that in a democracy it is a good thing
"once in a while" to make a radical change in power.
Others sailing on the Paris included Jules Henry, counselor of the French Embassy in Washington.
French Bank Reported Closed.
New
York "Evening Post" we quote the followFrom the
ing from Paris Nov. 17:
The Banque du Centre of Limoges, which is capitalized at 10,000,000
francs, approximately $395,000, was closed today following filing of a
Petition in bankruptcy.
Liabilities are said to exceed the 10,000,000 francs of capital.
Cologne Paper Says France Hides Arms Expenditures—
Charges She Has Huge Forces Ready at Moment's
Notice—Paris Denies Accusation.
From the New York "Times" we take the following (Associated Press) from Cologne, Germany, Nov. 14.
In an exhaustive discussion of French military organization and equipment, to be presented in a special issue to-morrow, the "Koelnische Illustrierte Zeitung," a weekly circulated throughout Germany and also read
abroad, reaches the conclusion that "before the gates of Germany there
stands the best-equipped army in the world, ready to march."
Statistics, graphs and maps are set forth in the I/38110, along with photographs, banner-lined quotations from the sayings of French statesmen and
scientific analyses by German military experts. The purpose is to prove
to the German reader that Jules Cambon, eminent French diplomat, correctly Interpreted the French people in saying, "In the army lies the soul
of France."
Say They Have "Proof."
The publishers of the weekly—the English equivalent of the title is
The Cologne Illustrated Newspaper—assert that much of the material they
present never has been printed. Every declaration, they say,can be proved.
Outstanding among the statements are these:
That within a week, and without special parliamentary authorization,
France could put Into action forty-six infantry, five cavalry and four air
divisions.
Nov. 19 1932
That the French military budget does not show what the nation is
spending on armaments—"France is the world's champion when it comes
to camouflaging her military expenditures."
That the French fleet "has made tremendous, methodic progress, thanks
to a long-term naval program, which, though never sanctioned by the
Chamber of Deputies, is being carried out tacitly year after year."
That the French air fleet has a radius of activity extending "far beyond
Germany, the Channel and England, and beyond the Italian plains of the
Po, including Turin and Milan."
That French army manoeuvres in recent years "have evinced a clearly
aggressive tendency."
That for more than a century French policy has not swerved from the
goal of establishing a military hegemony over Europe,and that the "French
system of alliances rests upon Europe like a nightmare."
Extension for Three Months of German Credit of $90,000,000 by Bank for International Settlements—
Subject to Approval of Federal Reserve and Central
Banks.
According to Associated Press advices from Basle, Switzerland, Nov. 14, the Bank for International Settlements on
that date estended for another three months a credit of
$90,000,000 to Germany.
This is subject to the approval of the central banks of
France and England and of the Federal Reserve of the
United States.
On Dec. 12 the governing board will vote on a loan sought
by Austria.
Renewal of the credit in September was noted in our issue
of Sept. 10, page 1742.
From the New York "Times" of Sept. 15 we quote the
following:
Reichsbank Credit.
Acting with its usual forehandedness in such matters, the Bank for
International Settlements has voted to renew its one-fourth share in the
$90,000,000 central banking credit to the Beichs ank, which will fall due
again on Dec. 5. The credit, which was opened orli,inally on June 26 1931,
In the amount of $100,000,000, one-quarter being supplied each by the
Bank of England, the Bank of France, the Basle institution and the Federal
Reserve banks here, has been extended six times—on July 16, Aug. 6 and
Nov.41931. and on March 4,June 4 and Sept. 5 of this year. In connection
with the March 4 renewal, a 10% reduction of the credit was made. It is
the practice of the Federal Reserve banks here to make no announcement on
the subject of renewals until the credit falls due.
German
Bank
Plans
Reorganization—Landesbank
of Short Term
Proposes Four-Year Postponement
Debts at 4% Interest.
Berlin advices were published as follows in the "Wall
Street Journal" of Nov. 11:
Final offer to creditors of Landesbank der RheinprovInz of Dusseldorf,
proposing that debts be prolonged for four years at a reduced interest rate
of 4% has been made. In all probability, German banking creditors will
accept the offer since they could not improve their position by taking over
the frozen assets of the Landesbank. The Reich and State of Prussia would
guarantee interest payments under the offer. It is doubtful that Landesbank
could meet the interest bill without this assistance. Difficulties of Landesbank have been dragging on since July 1931.
Landesbank, largest of German municipal banks, two years ago had
assets of Am. 1,000,000,000, but owing to the granting of long-term credits
to municipalities while the bank's indebtedness was on short term, liquid
assets were depleted in the summer of 1931. Efforts to convert the bank
Indebtedness into long term loans were without success.
Present liabilities, except capital and reserves, total Rm. 700,000,000, of
which Rm. 200,000,000 are secured long term loans unaffected by the
bank's difficulties. A further Rm. 50,000,000 short term credits to foreign
banks come under the standstill agreement and are therefore, not due for
repayment at once. Interest on this amount is now paid by Landesbank,
according to the agreement. at 5%. Of the remaining Rm. 450,000,000.
which are internal liabilities, Rm. 180,000,000 are due to savings banks and
Rm. 100,000,000 to deposit banks.
German Government Plans Broadening of Moratorium
on Mortgages.
The German Government plans a broadening of the moratorium on mortgages to apply to all liens on real, property.
according to Berlin advices, Nov. 11, to the New York
"Journal of Commerce" which further said:
Until now, the moratorium decree provided that agricultural mortgages
on which interest rates were cut shall not become payable before April 1
1935. while urtan mortgages were not to be subject to call for payment until
the end of 1933. Only mortgages which come due on specific dates were to be
paid off during their period, according to the terms of the instrument.
This latter exception is to be eliminated now and a general moratorium
on all mortgages regardless of specific dates for repayment has been put in
force until April 1934.
The new moratorium is understood to be applicable also to mortgage
loans made with the proceeds of foreign bond Issues. Hitherto, such mortgages have been exempted from any restriction on repayment.
Supporters of France Lose in Elections in Saar Basin,
From Saarbruecken, Germany, Nov. 14, an Associated
Press account said:
A feature of the Saar communal and district election, captured by the
National Socialists yesterday, was the defeat of the Francophile party,
which won only seven out of 4,301 communal counselors' mandates.
In official quarters at Berlin this outcome was regarded as a victory for
Germany and an indication that the plebiscite to be taken in 1935 would
restore the Saar to the fatherland.
Volume 135
Financial Chronicle
Remittances Received to Meet Dec. 1 Payment on
Hamburg-American Line First Mortgage 63,W0
Marine Equipment Serial Gold Bonds.
Speyer & Co. and J. Henry Schroder Banking Corp., as
fiscal agents for $4,500,000 Hamburg-American Line first
mortgage 63/2% marine equipment serial gold bonds, announce that they have received the regular remittances for
the payment of the Dec. 1 1932 coupons of these bonds,
and for the payment of $500,000 bonds maturing on that
date. Of the original issue of $6,500,000 bonds, $4,000,000
will thus remain outstanding after Dec. 1.
Receipt of Funds to Meet Nov. 15 Payment on German
Consolidated Municipal Loan 7% Bonds.
Chase Harris Forbes Corp., as sinking fund agent, announces that deposit has been received of $787,000 German
consolidated municipal loan 7% bonds, due 1947, to meet
the sinking fund payment due Nov. 15 1932. This leaves
outstanding $18,985,000 of the original issue of $23,000,000.
Bonds of Republic of Cuba Purchased and Canceled
for Sinking Fund.
Speyer & Co. as fiscal agents announced on Nov. 14 that
there have been purchased and canceled for the 1932 sinking
gold bonds due 1949.
fund $623,000 Republic of Cuba 4
Of the original issue of $16,500,000 bonds there remain outstanding $10,772,000 bonds.
Greece Issues Bread Tickets.
The following from Athens, Greece (United Press) is
from the "Wall Street Journal":
The government has decided to introduce bread tickets, as the wheat
reserves of the country were reported near exhaustion. The economic and
food situation of the country is causing concern.
Czechoslovakia Withdrawing Gold Balances Abroad.
With the withdrawal of approximately $18,000,000 gold
deposits in the United States, Czechoslovakia is now among
those European industrial nations in which there has developed in recent months a tendency to diminish gold balances
held abroad,"according to the Finance Division of the U. S.
Department of Commerce. The Department on Nov. 12
further said:
It Is the practice of many foreign national banks to keep on deposit in
the vaults of foreign countries with which foreign trade is carried on a
certain supply of gold. The gold serves various purposes,chief among which
is to pay international trade debts.
The official Czechoslovak foreign trade statistics for September, latest
month for which figures are available, showed further shipments of gold
for minting purposes in the total amount of 54,918,980 to the Czechoslovak
National Bank. As in July and August,the National Bank took advantage
of the continued gold movement from Europb to the United States and
gradually withdrew its gold deposits in the United States.
In order to save transportation costs, gold was not actually shipped
from America, but taken over from the gold deposits of European banks
which had to ship gold to the United States.
Chile Reports Deficit is Up to $5,800,000—Fears New
Delays in Making Debt Payments.
A statement of Chile's financial condition up to Sept. 30
was made public on Nov. 15 (said a cablegram on that
date from Santiago, Chile, to the New York "Times")
revealing an accumulated deficit of 97,000,000 pesos35,800,000 at current rates. The cablegram added:
The disclosure has aroused fear in some quarters that, so far from resuming service on its debts, Chile may be unable to meet current expenses.
For the first nine months of this year imports totaled 164,000.000 pesos
compared with 607.000,000 in the same period last year. Exports from
January to September of this year reached 295,000,000 pesos compared
with 674,000,000 in the same period last year.
"El Pals" says a serious financial situation threatens as to the fulfillment
of outstanding obligations, domestic and foreign, while it is difficult to
understand how the National services can be paid.
Associated Press advices on the same date from Santiago
stated:
The Finance Ministry issued a statement on the nation's financial condition to-day showing income for the first nine months of 1932 to be 346.499,838 pesos and expenditures of 412,199,167. (This is equivalent to an
income of $20,790,000 and expenditures of 524.730,000 at current rates.)
This left a deficit of 65,000,000 pesos which, with pending obligations of
about 31,000,000 pesos, made a total deficit of 96,699,000 pesos,
Chile Plans Treaties to Rebuild Her Trade—Barter and
Other Devices To Be Used to Get Around Dearth
of Foreign Drafts.
In a cablegram, Nov. 15 from Santiago, Chile, to the
New York "Times" it was stated that the negotiation of
trade treaties to retrieve the foreign commerce lost in the
collapse of Chilean exchange is said to be a cardinal policy
of the new government. The cablegram continued:
Barter and other devices, it is stated, will be used to get around the
difficulties arising from a dearth of foreign drafts.
3453
The six-month agreement recently closed with Argentina, removing the
barrier of trade wars, according to the Conservative "Diario Ilustrado,"
has had its first result in the resumption of traffic on the Trans-Andean RR.
This paper comments favorably upon the steps taken to stimulate trade
between Chile and Peru and upon the recent treaty with France, providing
for the export of large quantities of Chilean nitrates and according France
concessions never before extended by Chile in a commercial pact.
Chile-Argentina Pact—Tariff Reduction to Revive
Trans-Andean Rail Service.
The following (United Press) from Buenos Aires, Nov. 12,
is from the New Yorl "Herald Tribune":
Chile and Argentina ended a six-months' economic war to-day with the
of a modus vivendi in which the two countries reduced tariffs on
each other's products to permit the British-owned Trans-Andean Railway
to resume service.
Officials of the Trans-Andean, the only direct rail line between Buenos
Aires and Santiago. Chile, said that service would be resumed on Nov. 16,
just six months after the railroad had discontinued freight and passenger
service because high Chilean tariffs on Argentine cattle and Quebracho
extract had reduced freight shipments to almost nothing.
signing
Chile Bars Closing of Plants of Foreign Companies—
President-Elect Alessandri Says Those Which Were
Working Full Time When Returns Were Good
Must Continue Work.
Advices as follows from Santiago, Chile, Nov.8, appeared
in the New York "Times":
President-elect Alessandri to-day cabled to Gustabo Rosso, Chilean
financier in Paris, that the government here will not allow closing of the
plants of Borax Consolidated, operating in Northern Chile.
The message adds that measures will be taken later to assure continued
operation of the copper refineries here.
"Foreign companies which have been working full time here when returns
were good must understand they cannot consider throwing out Chilean
employees," Senor Alessandri concluded.
Chilean Press Supports Move For an Anti-Soviet
Conference.
(Chile) cablegram, Nov. 13 is
Santiago
following
The
from the New York "Times":
The suggestion of the Ministry of the Interior, that Chile immediately
proceed to call a South American conference to take action against Soviet
activities on this continent, meets general approval in newspaper editorials
to-day.
The "Dairio Ilustrado" says Latin American governments should protect
their countries against systematic penetration by the methods adopted by
Russian agents under the cloak of commercial expansion.
The editorials hold that the proposed conference should be made to cover
all aspects of the question and that information should be obtained from the
United States and European countries.
Arrangements for Loan for Nitrate Company at Chilean
Bank.
The following is from the New York "Journal of Commerce" of Nov. 17:
Arrangements for the short term financing of the Nitrate Corporation of
Chile by the Central Bank of that country as a means ofavoiding the expense
and difficulty of importing new foreign capital are being made to tide the
company over until a reorganization plan is carried out, it was reported
yesterday in dispatches from Santiago.
One of the conditions under which the banks will grant credits is a very
sharp contraction of operating costs. That this is being carried out is indicated in the recent closing of the largest single plant in operation, permitting
a concentration of work with less overhead expense at several smaller production points.
Announcement of the plans is now expected to be delayed until at least
Dec. 1, when President-elect Alessandri is installed in office. There is said
to be no doubt that the reorganization will have the co-operation of the
President elect, although one effect of the reorganization may be the reduction of the Government's interest in the company.
Richard Washburn Child Says Colombia Bondholders'
Protective Committee Was in No Way Instigated
by Any Official of Colombia.
Richard Washburn Child, Chairman of the Colombia
Bondholders' Protective Committee, issued the following
statement on Nov. 15:
"The committee desires to affirm the position taken by the Consul
General of Colombia in New York that the Bondholders' Committee was in
no way instigated by any official of Colombia. It would be quie unusual
for representatives of a debtor nation to form or officially approve a Committee of United States Creditors, and any intimation that the present committee was so inspired would be wholy against the interest of the Bondholders themselves who are depositing their bonds with the New York Trust
Company, the Depositary of the Committee."
The committee of which Mr. Child is head, was referred
to in these columns Nov. 12, page 3258.
Statement by Consulate General of Colombia Regarding Bondholders' Committee.
The following announcement was issued on Nov. 14 at the
office of the Consulate General of Colombia, 21 West Street,
this city:
"Bondholders' Committee for the Republic of Colombia: Recent announcement in the New Yo-k press, of Nov. 10, infe-rhag that a certain group
representing the bondholders of Colombia issues had the official approval
of the Government of Colombia to act as a "Bondholders' Committee for
the Repub ic of Colombia Dollar Bonds Departments and Municipalities"
3454
Financial Chronicle
s unwarranted and unofficial, attea ding to cable advices just received from
the Government. The Government of Colombia has not taken any steps
regarding the organization of a Colombian Bondholders' Committee. It
has limited itself to take note of the reports received on the subject from its
representatives abroad; but no statement regarding the endorsement of any
such Committee has been made.
R. L. Owen to Head Independent Group of Colombian
Bondholders.
The following is from the New York "Herald Tribune"
of Nov. 17:
Formation of an independent committee to represent the interests of
holders of defaulted dollar bonds issued by various departments, cities
and other municipalities of the Republic of Colombia is announced today. Robert L. Owen, former Senator from Oklahoma, will be chairman
of the committee, while other members will be Frederick H. Bedford, Jr.;
James Henry Hayes, Charles D. Makepeace, Harrison K. McCann and
Richard C. Patterson, Jr.
This committee, according to the announcement, will have no connection with the banking and financial institutions which were concerned
with the original offerings of the defaulted bonds.
The independent bondholders' committee is requesting holders of various
Colombian department, city and municipal bonds to deposit their bonds
with the Corn Exchange Bank Trust Company as depositary, and to authorize the committee to act.
Colombian
Congress Ends—Session
Passed
Drastic Emergency Statutes.
Many
The following Bogota cablegram, Nov. 16, is from the
New York "Times":
The regular 1932 annual session of Congress, which opened on June 27,
adjourned to-day until July 20. 1933, unless the conflict with Peru or some
other emergency requires the President to call a special session sooner.
The principal measures passed included a reform of the electoral boards,
whereby the Liberals expect to elect a majority of the Representatives in
the lower house in May 1933; amendment of the rules of community property so that a wife can freely manage or alienate her own property during
marriage; declaration of a virtual three-year moratorium on outstanding
debts due to private creditors, including domestic and foreign banks, by
closing the courts to collection and foreclosure actions unless the creditors
accept a 30% reduction in principal and a reduced interest rate.
The Congress organized a new national system of registration of real
property titles and conferred on the President of the Republic limited
legislative powers until July 1933.
Interest Due on 10-Year 7% Sinking Fund Gold Bonds
of 1927 of City of Cordoba (Argentine) Unpaid—
New York Stock Exchange Rules Bonds be Dealt in
"Flat."
Ashbel Green, Secretary of the New York Stock Exchange,
issued the following notice on November 15:
Nov.
19 1932
3074. The announcement issued by the Exchange Nov. 16
follows:
NEW YORK STOCK EXCHANGE.
Committee on Stock List.
Referring to previous circulars regarding matured bonds, especially
C-5030 of Nov. 2 1932, the Committee on Stock List has completed its
investigation of the following matured bond issues and directs that they
be stricken from the list on Nov. 18 1932:
1. Cespedes Sugar Co. first f. s. gold 730, 1939.
2. Chicago City & Connecting Ry. collateral gold Is. due 1927.
3. Iowa Central Ry. Co. 1st gold Is, 1938.
4. Warner Sugar Corp. 1st & ref. s. f. gold series A 7s, 1939.
5. Warner Sugar Corp. 1st & ref. s. f. gold series A 7s, 1939 (stamped).
6. Wickwire Spencer Steel Co. series A prior Hen coll. & ref. cony. s.f.
gold 7s, 1935.
7. Wickwire Spencer Steel Corp. 1st mtge. s. f. gold 7s, 1935.
(The foregoing list includes registered as well as bearer bonds but not
certificates of deposit.)
ASHBEL GREEN, Secretary.
The circular, C-5030, mentioned above, appeared in our
issue of Nov. 5, page 3075.
Decrease reported in Number of Branch Offices of
New York Stock Exchange Members from Oct 1
to Nov. 1.
There were two less branch offices of members of the
New York Stock Exchange on Nov. 1 than there were on
Oct. 1; the November "Monthly Bulletin" of the Exchange
reporting 1,176 branches on Nov. 1, as compared with
1,178 on Oct. 1. This compares with an increase of 18
offices as reported by the Exchange from September to
October. The following table, showing the number of
branches of member firms since the beginning of this year,
is also taken from the "Bulletin':
Date—
Jan. 1 1932
Feb. 1 1932
Mar. 1 1932
Apr. 1 1932
No. of
Branch
Offices.
1.347
1.336
1.306
1,288
Date—
May 1 1932
June 1 1932
July 1 1932
Aug. 1 1932
No. of
Branch
Offices.
Date—
1,231 Sept. 1 1932
1,191 Oct. 1 1932
1 155 Nov. 1 1932
1,142
No. of
Branch
Offices.
1,160
1.178
1.176
Gurnett & Co. Failure, Majority of Unsecured Creditors
Assent to Composition Offer of 50% in Cash and
Rest in Promissory Notes.
Nov. 15 1932.
Notice having been received that the interest due Nov. 15 1932 on
City of Cordoba 10-year 7% external sinking fund gold bonds of 1927,
due 1937, is not being paid:
The Committee on Securities rules that beginning Tuesday, Nov. 15
1932, and until further notice the said bonds shall be dealt in "Flat" and
to be a delivery must carry the Nov. 15 1932 and subsequent coupons.
ASHBEL GREEN, Secretary.
Regarding the affairs of the failed brokerage firm of
Gurnett & Co. (main office in New York and branches in
Boston and other places in New England), the suspension of
which from the New York Stock Exchange on Jan. 5 last
was noted in our issue of Jan. 9, page 227, the Boston
"Transcript" of Nov. 11 reported Arthur Black, referee in
bankruptcy for the firm, as stating that a majority of the
creditors proving claims against the firm have assented to an
offer of composition. We quote from the "Transcript" as
follows:
Bonds of Kingdom of Bulgaria Dealt in "Flat" on New
York Stock Exchange.
The following notice was issued Nov. 15 by the New York
Stock Exchange through its Secretary, Ashbel Green:
The plan is to pay all unsecured creditors of the
co-partnership 50% in
cash and 50% in promissory notes of Tenrug
Liquidation Corp.. to oe dated
on confirmation of composition offer and
to be payable, 10% within nine
months. 10% within 16 months 15% within 20 months
and 15% within 24
months. All unsecured creditors of the individual partners
will be paid
1-10th of 1% in cash. Fees to the receiver,
counsel and accountants total
$64,579.
NEW YORK STOCK EXCHANGE
Committee on Securities.
NEW YORK STOCK EXCHANGE
Committee on Securities.
Nov. 15 1932.
Notice having been received that payment of $18.75 per E1,000 bond
is being made on account of the interest due Nov. 15 1932 on Kingdom of
Bulgaria 744% stabilization loan 1928 dollar bonds, due 1968:
The Committee on Securities rules that beginning Tuesday, Nov. 15
1932. and until further notice the bonds shall be dealt in "flat" and to be
a delivery must carry the Nov. 15 1932 coupon stamped as to payment
of $18.75 Per E1,000 bond and subsequent coupons. Such coupons must
be securely attached and bear the same serial number as the bond.
ASHBEL GREEN, Secretary.
Resolution Before Puerto Rican Legislature Asks
Authority Be Granted to Island to Deal With
Prohibition Question.
Associated Press advices from San Juan (Puerto Rico),
Nov. 15, stated:
A resolution asking that the United States Congress grant authority to thIsland government to deal with the question of prohltition is under core
sideration at the special session of the Legislature called to pass on hurricane
relief measures. Advocates of the resolution assert that revenue from the
sale of beer and wines is urgently needed.
Puerto Rico voted dry in 1917 and later the National Prohibition Act
was applied.
Additional Matured Bonds Removed from List of
New York Stock Exchange.
The New York Stock Exchange announced on Nov. 16
that seven additional matured bond issues will be removed
from the list on Nov. 18, the investigation of said issues
having been completed. Previously the Exchange removed
23 matured bond issues as noted in our issue of Nov. 5, page
The firm's composition offer, which was filed in the United
States Distlict Court of Massachusetts, was referred to in
our issue of March 12 last, page 1877.
Suspension of Arcadian Consolidated Mining Stock
From Trading on Boston Stock Exchange—Investigation Said to Have Disclosed Options to Curtis,
Chase & Cate.
The Boston "New Bureau" of Nov. 14 said:
Suspension of Arcadian Consolidated Mining stock
from trading on the
Boston Stock Exchange follows a lengthy
investigation by Exchange officials. This investigation was instituted when the
stock recently became
active, rising from a low of 6 cents to $1 5-16
a share.
When the stock crossed El a share, it was
learned that Curtis, Chase &
Cate, a firm organized last April to transact a security
brokerage business
and to deal primarily in gold mining stocks, had
been negotiating for options on a block of Arcadian stock which was
part of the approximately
200,000 shares held in the Arcadian treasury as a
result of failure of stockholders to pay assessments. There were 237,000
shares reported to be
outstanding, but with almost 200.000 shares in the company's
treasury.
the floating supply had been substantially reduced.
In connection with
the options which were under negotiation by the firm
mentioned, Arcadian
acquired certain lands in the gold mining district of
Canada in exchange
for 75,000 shares of its treasury stock.
On October 24 last, papers were signed whereby
Curtis, Chase & Cate
purchased 10,000 shares of Arcadian treasury stock
at 75 cents a share
and obtained options on an additional 20,000 shares
at $1 and 20,000
shares at $1.25. In connection with these options it
was stipulated that
50,000 of the 75,000 shares of Arcadian stock given for the Canadian
lands
were not to be sold until after the marketing of the stock
optioned to
Curtis, Chase & Cate.
Another stipulation was that Arcadian would pay the back taxes
on its
Michigan property from the proceeds of the 10,000 shares sold
at 75 cents
a share and would use the proceeds, received upon exercise of the options,
to develop the Canadian lands.
Financial Chronicle
Volume 135
Volume of Commercial Paper Outstanding as Reported
to New York Federal Reserve Bank, $113,200,000 on
Oct. 31 as Compared With $110,100,000 on Sept. 30.
The following was released by the Federal Reserve Bank
of New York on Nov. 16:
Reports received by this Bank from commercial paper dealers show a
total of $113,200,000 of open market commercial paper outstanding on
Oct. 31 1932, compared with a revised total of $110,100,000 outstanding
on Sept. 30 1932.
Below we furnish a record of the figures since they were
first reported by the Bank on Oct. 31 1931:
1932—
Oct. 31
Sept.30 *
Aug. 31
July 31
June 30
May 31
April 30
Revised.
$113,200,000
110,100,000
108,100,000
100,400,000
103,300,000
111,100,000
107,800,000
1932—
Mar.31
Feb. 29
Jan. 31
1931Dec. 31
Nov.30
Oct. 31
$105,606,00.)
102,818,000
107,902,000
117,714,784
173,684,384
210.000,000
Gov. La Follette of Wisconsin Asks Attorney-General
Reynolds to Bring Legal Action Against Wisconsin
Bankshares Corp. on Charges of Maintaining
Monopoly—President IC,asten Says Corporation Is
Only Small Part of State's Banking Structure.
In Associated Press accounts from Madison, Wis., on
Nov. 7 it was stated that Gov. Philip F. La Follette had
requested Attorney-General John W. Reynolds to bring a
legal action against the Wisconsin Bankshares Corp. and
the First Wisconsin National Bank, both of Milwaukee, on
charges of maintaining monopolies in violation of State law.
Walter Kasten, President of both the corporation and the
bank, in a statement at Milwaukee in reported as having
denied that the two concerns maintained a monopoly. "We
have no monopoly and control only a small portion of the
bank assets of the State," he is quoted as saying.
The Milwaukee "Sentinel" of Nov.8 had the following to
say in the matter:
The Wisconsin Bankshares Corp. is only a small part of the State's
entire banwing structure, Walter Kasten. President of Bankshares, said
Monday when told of charges of monopoly.
Gov. La Follette Monday asked John W. Reynolds, Attorney-General,
to start proceedings against the Wisconsin Banskhaxes Corp. and the First
Wisconsin National Bank here on the ground these financial institutions are
creating monopolies and combinations in restraint of trade.
Banks Being Changed.
Such proceedings would follow a move made a few weeks ago to halt the
First 'Wisconsin's program of changing National bank units of Bankshares
in Milwaukee into branches of the First Wisconsin.
"Wisconsin Bankshares Corp. and the First Wisconsin National Bank
have acquired what amounts to practical control of the banking facilities
in Milwaukee County and perhaps in other localities." Gov. La Follette
declared in a letter to Mr. Reynolds.
"Control Is Extended."
"Recent activities indicate an apparent intention to extend and to consolidate this control of credit and credit facilities. It seems to me the
activities of the First Wisconsin Natinoal Bank and the Wisconsin Bankshares Corp. have reached the point where they constitute a violation of
Chapter 133 of the Wisconsin statutes prohibiting unlawful monopolies
and combinations in restraint of trade.
"I therefore request you. as Attorney-General, to institute appropriate
proceedings, civil or criminal against these two corporations or their officers
and directors."
Increase of $15,431,223 in Volume of Outstanding
Bankers Acceptancesin Month—Oct. 31 Total
$698,620,369, Compared with $683,189,146 Sept. 30.
An increase of $15,431,223 in the volume of bankers
acceptances during the month of October was reported by
the American Acceptance Council on Nov. 17. Robert H.
Bea , Executive Secretary of the Council, further said:
This result of the survey of the dollar acceptance business as of Oct. 31
indicates a return to the normal seasonal use of acceptance credits, notwithstanding the prevailing counter influences of a great accumulation
of unused bank funds available for commercial loan purposes and an
abnormally low bank rate.
This is the second consecutive gain in the volume this autumn, a situation
that is encouraging to the bill market as well as it is an indication of a
slight improvement in business activity.
The total of all bankers acceptances on Oct. 31 was $698.620,369. which
Is compared with a total of 51.039,784.979 on the same date in 1931,
a reduction in bill volume for the year of $341,164,610.
It is of interest to note that in the two months of September and October
1931, the bill volume suffered a reduction of $50,000,000, while in 1932,
in the same period, there has been a gain of $17,100,000. Furthermore,
while many banks were reducing their acceptance volume In October 1931,
the record shows that 61 banks now report an increase in their seasonal
acceptance operations.
Acceptance credits for the purpose of financing imports gained in amount
$8.365,227 during October. Acceptance credits for exports gained $1.173,431. Credits for domestic shipments gained $1,320,330 and credits
to finance tsaple commodities in warehouse gained $8,820,447, making a
total gain in volume for these four types of acceptance credits of 519.679,435.
Against these gains are recorded a reduction in bills drawn to create
dollar exchange amounting to $1,569,772 and in bills based on goods
stored in or shipped between foreign countries which is again off to the
amount of $2,678,440. This leaves the total of strictly foreign credits at
3455
5231,000.000, which is compared with $330,000.000 at the end of October
last year and with $493,000,000 at the end of June 1931, a reduction of
$262.000.000.
The bill market situation has changed but little in the past 30 days
since the Council's last report. The volume of bills held by accepting
banks reporting to the Council has increased from 5572.000.000 at the
end of September to 5605,000.000 at the end of October, made up of
$198.600,000 in own bills held and $406,400,000 of bills of other banks
purchased for investment.
Of this total of $605,000.000, $473,000.000 were held by accepting
banks and bankers in the Second Federal Reserve District, $55,000,000
by banks in the First Federal Reserve District and $42,000,000 in the
Seventh or Chicago Federal Reserve District.
The discount market rates for bills remained unchanged for the full
month for the entire period from Oct. 13 to date.
The statistics made available by Mr. Bean follow:
TOTAL OF BANKERS' DOLLAR ACCEPTANCES OUTSTANDING FOR
ENTIRE COUNTRY BY FEDERAL RESERVE DISTRICTS.
Federal Reserve Distrfa.
1
2
3
4
5
6
7
8
9
10
11
12
Oct. 311932.
Sept. 30 1932.
$40,863,417
561,284,124
13,297,576
10,253,459
1,524,052
7,923,612
36,738,725
1,745,640
2,499,086
600,000
1,864,487
20,026,191
$39,587,527
547.152.785
12,271.193
10,175,394
1,359,100
6,786,035
39,521,697
1,346,989
2,309,424
1.200.000
1.605,189
19,873.813
$698,620,369
Grand total
Oct. 31 1931.
$71,185,960
827.541,914
17,201,542
17.780.507
3.360,039
9,507.975
51,827,390
1,935.727
3,116,137
399.970
4,115.621
31,812,157
$683,189,146 $1,039,784,979
15,431,223
rti n
Increase for month
.
141 1 Ad
CLASSIFIED ACCORDING TO NATURE OF CREDIT.
Imports
Exports
Domestic shipments
Domestic warehouse credits
Dollar exchange
Based on goods stored in orshipped
hotaman tnralcm nniIntrica
Oct. 311932.
Sept. 30 1932.
$81,471,614
157.364,062
15,712,701
206,477,731
6,382,782
$73,106,387
156.190,631
14.392,371
197.657,284
7,952,554
$172,954,392
260,911,06.5
23,675.207
213.869,725
37,891.319
231 211A79
233.859.919
330.453.271
Oct. 311931,
CURRENT MARKET QUOTATIONS ON PRIME BANKERS ACCEPTANCES
OCT. 16 1932.
Dealers'
Dealers'
Buying Rate. Selling Rate.
Days—
30
60
oo
.____
%
4
.A
4
4
4
Days—
120
150
180
Dealers'
Dealers'
Buying Rate. Selling Rate.
4
1
1
Si
4
4
7
Resources of National Banks at :•22,565,995,000 September 30 Increased $198,284,000 over June 30
Figures—Decrease as Compared With September
Year Ago—Deposits September 30 This Year $17,681,917,000.
Acting Comptroller of the Currency F. G. Await announced on Nov. 15 that the aggregate resources of the
6,085 reporting National banks in the continental United
States, Alaska and Hawaii on September 30 1932, the date
of the recent call for statements of condition, amounted to
$22,565,995,000, which was an increase of $198,284,000 since
June 30 1932, the date of the preceding call when there were
6,150 reporting banks, but a decrease of $3,180,069,000 since
September 29 1931, the date of the corresponding call a year
ago when there were 6,658 reporting banks.
The Comptroller's announcement also said:
Loans and discounts, Including rediscounts, on September 30 1932,
amounted to $9,919,662,000 and showed decreases for the three and twelve
month periods of $362,014,000 and 52.560,273,000, respectively.
Investments in United States Government securities of $3,662,669,000
showed an increase of $310.003,000 since June 30 1932, and an increase
of $373,402.000 since September 29 1931. Other bonds and securities
held amounting to $3,780,623,000 showed a decrease of $63,363,000 since
June 30, and a decrease of $599,393,000 in the year.
Amounts due from correspondent banks and bankers of $3.489.878,000.
which included lawful reserve with Federal Reserve Banks of 51.381.065000, showed an increase in the three month period of $383.149,000. but a
decrease in the year of $82,986,000.
Capital stock paid in totalled 51.563,232.000. which amount was $5,751.000 less than in June 1932, and $93.142,000 less than in September 1931.
Surplus funds of 51,205,939,000 and net undivided profits, excluding
reserve accounts, of $308,384,000, a total of $1,514,323.000, showed decreases in the three and twelve month periods of $47,623,000 and $411,442.000. respectively.
National bank notes outstanding amounted to $743.080,000 in comparison with 5652,168,000 on June 30 1932, and $631,569,000 on September
291931.
Deposits on September 30 1932, aggregated $17,681,917,000, showing an
increase since June of $221,004,000, but a decrease in the year of $2,697.467,000. Total deposits on the date of the current call included balances
due to correspondent banks and bankers and certified and cashiers' checks
outstanding of 32,221.081,000. United States deposits of $374.150,000,
other demand deposits of 57,848.753.000 and time deposits of $7.237,933,000. In the latter figure are included deposits evidenced by savings
pass books of $5,035,483,000. represented by 13.875,768 accounts, time
certificates of deposit of 51,013.744.000 and postal savings of 5522,039,000.
Bills payable of $337,262,000 and rediscounts of $106.382.000. a total
of $443,644.000, showed a decrease of $63,246,000 since June, but an increase of $119,446.000 since September last year.
The percentage of loans and discounts to total deposits on September
30 1932, was 56.10, in comparison with 58.88 on June 30 1932, and 61.24
on September 29 1931.
Financial Chronicle
3456
M. Anderson, Jr., of Chase National Bank of
New York Declares Gold Standard Has Not Been
in Danger for 36 Years—Glass-Steagall Bill Not
Designed to Protect Gold Standard but to Permit
Easing of Money Market by Federal Reserve Banks.
—Regards Our Weakest Position Impregnably
Strong-1932 Panic More Intense in Political
Than in Financial Circles—American People Do
Not Believe in Fiat Money.
According to Benjamin M. Anderson, Jr., Ph.D., economist of The Chase National Bank of New York City "there
has been no time in the past 36 years when there has been
justifiable ground for doubt as to our ability to maintain the
gold standard in its full integrity." "Even in 1907," says
Dr. Anderson, "when the great majority of the banks over
the country were obliged to restrict cash payments and when
our paper money went to a premium of almost 4% over
checks, there was no question at all as to the goodness of
our paper money, no restriction whatever on the redemption
of paper money in gold, and no possible question of a premium on gold over paper money. In 1914," he continued
"we were obliged to close our Stock Exchange to prevent an
avalanche of foreign selling of American securities in our
market, but the question of the maintenance of our gold
standard, even though virtually all the rest of the world
abandoned it, did not arise at all. It is," he added, "important to keep the record clear."
Dr. Anderson spoke thus at the New York Stock Exchange
on November 10, before the Forum in Investment Banking
offered by The Graduate School of Business Administration
of New York University in co-operation with The Investment
Bankers of Association of America.
Dr. Anderson's further remarks follow:
Dr. B.
The revival, this autumn, of the erroneous rumors current last winter,
and last spring, that our Federal Reserve Banks were threatened with the
necessity of an early suspension of gold payments, appears not to have
been taken so seriously either at home or abroad as to undermine the revival of financial confidence which has been so clearly marked since the
middle of June. There was a sharp rise in the foreign exchange rates against
the dollar on Friday and Saturday, October 7 and 8, but on the following
Monday and Tuesday the exchanges turned in our favor again and we have
continued to gain gold from the outside world.
But, for the future, and particularly for remoter future times, it is highly
important that we should clear the record. There can easily come a time,
years hence, when our gold position may not be as overwhelmingly strong
as it was all last winter, and all last spring, and all last summer, and as it
is to-day. It must not be open to the outside world to say to UB years
hence, when we may have, say, a billion dollars less in gold than we have
to-day, that we were in danger of suspension of gold payments with three
billion dollars of gold in the Federal Reserve Banks and four billion dollars
of gold in the country. It must be made clear that we do not need anything
like as much gold as we have to-day, or as we have had throughout this
trouble, in order to maintain the gold standard in its full integrity.
The danger that comes from doubt on a point like this is not a danger
to the gold standard itself. We can protect that. The danger is that we
may be forced to use, at undesirable times, protective measures which will
mean undesirably high rates of interest and undesirable restrictions of
credit, in defending our gold position.
Our Weakest Position Impregnably Strong.
During the past spring, our gold position was so very strong that, after
the Glass-Steagall Bill, we were able to release to foreign countries approximately 440 million dollars in gold without even tightening our money market. At the lowest point of the gold holdings of the Federal Reserve System
this year, namely, on June 15, after the foreign withdrawals were completed, and after the domestic gold hoardings (never large) had spent their
force, our Federal Reserve Banks had 40% of gold against Federal Reserve
notes and 35% of gold and lawful money (almost wholly gold) against
deposits, and over and above that approximately one billion dollars in gold.
This was our worst position and our weakest position. And I say to you,
categorically and unqualifiedly, that this worst and weakest position was
impregnably strong.
This billion dollars in gold over and above the 40% and 35% ratios
against notes and deposits was significant, not from the standpoint ofsaving
the gold standard, but merely from the standpoint of making it possible
to continue an easy money policy.
Function of Legal Reserve Ratios.
Even if the foreigners had been able to take the whole of this billion.
reducing us to the legal 40% against notes and 35% against deposits, the
fight for the preservation of the gold standard would have been merely
begun. The Federal Reserve Banks not only are not required to suspend
gold payments when they get down to their legal ratios, but they are under
every moral and legal obligation not to suspend. It is their duty, legal
and moral, to go below these limits whenever necessary to pay their demand
liabilities in gold. That is what the gold is for. The significance of the
legal limits is, not to stop them from paying, but, rather, to make sure
that they will adopt policies which will, at all times, enable them to pay.
They can, should, and must go below the legal limits, if necessary. The
law contemplates precisely this. But the law also provides that, if they
do go below the legal limits, they must pay a progressive tax to the Federal
Government, and they must raise their discount rates progressively. The
thing is flexible, but the law compels them to use protective measures, and
measures of credit restriction, if these legal limits are reached.
The First Duty of Federal Reserve Banks Is to Protect the Gold Standard.
In other words, the law imposes two duties upon the Federal Reserve
Banks. The first and foremost duty is to protect the gold standard by
redeeming our money in gold. The second is to make reasonable extensions
of credit to ease off seasonal strains on the money supply and to ease off
credit and money strain in crisis times. But the first of these duties is the
paramount duty. The law leaves the Federal Reserve Banks a good deal
of discretion regarding credit policy when they have gold in excess of the
Nov. 19 1932
legal requirements. But the law leaves them no discretion regarding meetThat they must do at all times
and under all circumstances. And, finally, the law leaves them no discretion regarding discount rate policy when their reserves go below the
legal limits. In order to protect their ability to pay gold, the law requires
them to raise their discount rates if the gold reserves go below the legal
ing their demand obligations on demand.
Glass-Steagall Bill Not Designed to Protect the Gold Standard, but to Prevent
Liquidation.
The Glass-Steagall Bill was not passed for the purpose of saving the gold
standard. The gold standard was safe, impregnably safe, without the
passage of the Glass-Steagall Bill. The Glass-Steagall Bill merely made it
possible for the Federal Reserve Banks to continue a policy of easing the
money market, and made it possible for us to ship hundreds of millions of
gold abroad without raising interest rates, and without forced liquidation
of general bank credit.
Federal Reserve Notes.
The point involved is a technical one, and I must ask your indulgence
for making a technical explanation. Federal Reserve notes are not created
by the Federal Reserve Banks themselves. They are created by the United
States Government, and are a direct obligation of the United States Government, having behind them in last resort all the financial resources of the
United States Government, including its full taxing power and its full borrowing power. It is the legal duty of the Secretary of the Treasury to maintain them at parity with other forms of money. It is his legal duty to redeem
them in gold at the Treasury of the United States, and it is his legal duty
to sell bonds, if necessary, to get gold to redeem them.
Collateral for Federal Reserve Notes and "Free Gold".
Created by the United States Government, Federal Reserve notes are
issued by the United States Government through a government officer.
the Federal Reserve Agent, to the Federal Reserve Banks. In exchange
for them the Federal Reserve Banks must give the Federal Reserve Agent
collateral. This collateral, prior to the passage of the Glass-Steagall Bill.
was to consist of acceptances and of paper representing money borrowed
by the member banks from the Federal Reserve Banks, whether in the
form of discounts of commercial bills or of bills secured by United States
Government securities, or, alternatively, it was to consist of gold. It
could not consist of government securities owned by the Federal Reserve
Banks.
It so happened, however, that the Federal Reserve Banks, instead of
extending their credit primarily in the form of rediscounts and purchases
of acceptances, had gone very far in the period between the stock market
crash in 1929 and the summer of 1931 in the purchase of government securities, carrying out a policy of artificially cheap money. Instead of waiting for the banks to come to them to borrow if the banks needed money.
they had bought United States Government securities, paying for them
with checks drawn on themselves, which checks would be redeposited with
them by the member banks, with a resultant increase in the reserves of the
member banks. As the reserves of the member banks consist of their deposits with the Federal Reserve Banks, these purchases of government
securities by the Federal Reserve Banks operated to make member bank
reserves excessive, and, consequently, to make money cheap—that is to
say, to make short-time interest rates low.
As a further consequence of this policy, however, a large part of the
paper in the Federal Reserve Banks was not of the kind which could serve
as collateral for Federal Reserve notes, and it was necessary for them to
make up the deficiency in eligible collateral by turning over gold, dollar
for dollar, to the Federal Reserve Agent. This reduced the ''free gold" in
the Federal Reserve Banks, namely, the gold in excess of their legal reOuirements, to a figure which was much smaller than the "free gold" would
have been if they had had to consider only the legal reserve ratios of 40%
against notes and 35% in gold or lawful money against deposits.
The Glass-Steagall Bill changed this, and allowed the Federal Reserve
Banks to use the government securities which they owned, in addition to
the commercial paper and bills payable against government securities, and
acceptances which they held, as collateral for Federal Reserve notes, and
made it possible to free all the gold thus impounded as collateral. It still
left, however, the reserve requirements of 40% gold against notes and 35%
gold and lawful money against deposits. The Glass-Steagall Bill was Passed
on the 27th of February 1932. On the two report dates preceding, namely.
February 17 and February 24, the "free gold" of the Federal Reserve
System stood at 417 and 416 million dollars, respectively.
"Free Gold" in 1920 and 1923.
This was not a low figure from any point of view, except that of mainmoney market. In May of 1920 our "free gold"
easy
taining an artificially
dropped to 201 million dollars, at a time, moreover, when the Federal
Reserve Banks had almost no government securities, and when a GlassSteagall Bill would have been of no help. They were actually down to
within 201 million dollars of the legal reserve requirements. But nobody
questioned our gold standard then; we simply accepted the necessity of a
tight money market and went on. On January 14 of 1923, the "free gold"
Nobody
dr
uop
ired
ober
tha
oday
wana dollars. N
peiti ha
lq
ed llio
top4ple0ami
Ruea
eser
tiv
oe
nedthe gold standard, and
all thatSystem reversed its easy
government
securities
money policy. sold
which it had previously been
buying, compelled banks to increase their rediscounts in order to replenish
their reserves, and thus increased the volume of collateral behind Federal
Reserve notes.
Glass-Steagall Bill Convenient but not Essential—Alternative Resources.
This resource was open in 1932, had the Glass-Steagall Bill not been
passed. Enormous sums of gold could have been forthwith freed from
collateral behind the notes if the Federal Reserve Banks had sold government securities, withdrawing reserve money from the banks, and forcing
the banks to rediscount in order to replenish their reserves. They could
even have done this without force, by arrangement with the groat banks
of the country, in such a way as to leave undiminished the reserves of the
member banks, and in such a way as to tighten money markets little, if
at all, if it were done in concert and as a matter of general policy. Moreover, it would have been very easy to increase the volume of open-market
acceptances available for purchase by the Federal Reserve Banks, by concerted policy involving the co-operation of banks and great business corporations—a proposal of this sort was actually made by Important industrial
leaders,
Finally there were very many emergency measures, well known and
tested in our past history, which we could have used had it been necessary.
Clearing House certificates, good between the banks, based on sound
assets but assets not eligible for rediscount at the Federal Reserve Banks,
could have been used. It was not necessary to use them. Nor was it
necessary to use the provision of the Glass-Steagall Bill allowing groups of
banks to go to the Federal Reserve Banks with collateral otherwise ineligible—a provision suggested by our old experience with Clearing House
certificates. The Stock Exchange could have been closed if there had been
really unmanageable foreign selling.
Volume 135
Financial Chronicle
There could even have been recourse to restrictions on cash payments
at the banks, as in 1907. when we had no Federal Reserve Banks, without
any question arising as to the gold value of the cash itself. This resource
was not even considered in 1932. Our bankers did not, in fact, face anything like such difficulties in 1932 as they faced in 1907. In 1932 they
either paid cash or closed their doors. In 1907, the percentage of failures
would have been higher than in 1932, but for the restrictions on cash payments.
Washington More Alarmed Than New York.
The panic in early 1932 was, in many ways, more intense In political
than in financial circles, and the center of it was Washington rather than
New York. Alarming statements regarding the banking situation were
constantly coming from Washington to New York. and reassuring statements were constantly going from New York to Washington. This is not
meant as criticism of public men, dealing with unfamiliar and startling
financial problems. It is merely the assertion that veteran bankers kept
the better perspective. The great banks in New York never shared the
fears of a general collapse, or of danger to the gold standard.
Glass-Steagall Bill Justified only as Temporary Emergency Measure.
The justification, therefore, of the Glass-Steagall Bill was not to be
found in the need for protecting the gold standard, but in the need to prevent a further forced liquidation of credit in a panic situation. The GlassSteagall Bill was, in my opinion, justified as a temporary emergency measure, just as the pre-war English equivalent, in the "Suspension of Bank
Act" in panics, was justified as a temporary emergency measure. That
measure did not involve suspension of gold payments by the Bank of
England. It merely meant that, temporarily, additional Bank of England
notes could be issued against rediscounts, instead of only pound for pound
against gold.
When the panic in pre-war England was over, the Bank of England went
back to its old rule. We shall also go back to our old rule, issuing •Federal
Reserve notes, not against government securities, but only against gold,
discounts and acceptances. It is highly important that there should be, in
the normal law, strong restraints against the over-extension of credit, in
order that there may be a large reserve of lending power and paying power
to make use of in emergency times.
Foreign Withdrawals and Domestic Gold Hoarding.
The passage of the Glass-Steagall Bill forthwith increased the "free gold"
of the Federal Reserve System from 416 millions on February 24 to 1,398
millions on March 2. Then came the terrific second foreign withdrawal of
gold, which virtually exhausted the ability of the outside world to take
gold from us. In connection with this, there was some domestic hoarding
of gold as well, sometimes spectacular in detail, but insignificant in total
amount. The total of all domestic hoarding of gold from May 31 1931 to
May 31 of 1932, was 83 million dollars, and there was an additional 17
millions in the month of June, making the total for the whole 13 months
of 100 million dollars, of which part has since come back. The total for
the month of May 1932 was about 25 millions.
All of the terrific bombardment, between March 2 and June 15 1932
succeeded in pulling down the "free gold." in excess of legal reserve requirements, by only 431 million dollars, or from 1,398 millions to 967
millions, and by October 26, 283 millions of the decline was made up.
Our position was so strong throughout that it was unnecessary for us to
meet this withdrawal by tightening money, which is the normal, usual and
expected thing, the kind of thing which we shall look forward to doing when
our gold positon Is not so strong, and when the foreign markets are taking
gold from us; the thing which we always did as a matter of course in preFederal Reserve days, and the thing which the Federal Reserve Banks did,
as a matter of course, during the heavy gold withdrawals of 1919-1920.
We had already had a very heavy liquidation of credit in 1931 and early
1932. It was undesirable to liquidate further, if we could avoid it, and the
Glass-Steagall Bill, enabling us to use our vast gold resources more freely
and with less technical difficulty, was a useful and helpful emergency
measure. But it is a complete misunderstanding of the technical facts in
the situation to say that the change in the law was necessary, or even
designed to save the gold standard.
The Perspective of the Veteran Banker.
The student of the history of money and banking, as well as the veteran
banker who has been through times when the gold standard really was in
danger, has perspective on these matters. It has been my pleasure and
privilege to talk with some of the veterans who fought through the four-year
run on our gold reserves which Grover Cleveland had to contend with
in
the middle nineties. Two former chiefs of my own bank were conspicuous
among them. Let me add that the Chase National Bank is very proud
of the record of its chiefs with respect to the maintenance of the gold
standard and the meeting of emergencies involving gold. Honorable
Henry
W. Cannon, President of the Chase National Bank from 1886 to 1904,
and still our Senior Director, was active throughout Cleveland's second
administration in helping to protect the Treasury's gold. He has
told me
of sitting up all night, with other New York bankers, as they were cabling
London and working out the arrangements to replenish Cleveland's gold
reserve in 1895. The late A. Barton Hepburn was outstanding as a leader
in the gold standard fight in the 'Nineties, and continued to be one of
the
most effective protagonists of sound money until the end of his life. Mr.
Albert II, Wiggin, Chairman of our Governing Board, was Chairman of
the Gold Fund Committee which was organized in September 1914, and
which, in a remarkably short space of time, gathered together from the
banks of the country $109,000,000 in gold to protect dollar exchange in
foreign markets. This was not needed to protect the gold standard in the
United States. No question arose as to the redemption of our paper money
In gold at home. But German cruisers made it impossible for a time to
ship gold to Europe, and special arrangements by which gold could be
shipped to Ottawa for credit to the Bank of England were necessary for
the protection of dollar exchange in Europe.
The Four-Year Run on Cleveland's Gold Reserve.
The gold standard problem was really a grave problem in Grover Clevesecond
land's
administration, during the years 1893-96. The gold reserve
was never large enough to be comfortable. There were heavy foreign withdrawals. There was heavy domestic hoarding. The government had a
heavy deficit. There were powerful political influences opposed to the gold
standard, and in 1896 a major political party made its campaign against
the gold standard, with the result for a long time uncertain. The gold
reserve had to be replenished again and again by emergency measures. In
February of 1895 it got down to $42,000,000, which was only 11% of the
paper money outstanding against it. (During our recent trouble, the gold
In the Treasury and in the Federal Reserve Banks never got below 74.5%
of tho total paper money in circulation.)
When the gold reserve went down to $42,000,000. President Cleveland
notified the bankers in New York that he must have more gold, and they
got it for him.
This represented the low point of President Cleveland's reserve. He
kept on paying as a matter of course. That was what the gold was for.
3457
His difficulties were known, but there was a loyal public and there were
loyal bankers, and there was recognition in the world outside that our difficulties were, after all, temporary, that we were determined to see them
through, and our government's credit in foreign countries was good. This
doesn't mean that everybody believed in our credit. It doesn't mean that
rumors were not in circulation about us. It doesn't mean that both the
foreign press and the domestic press were not full of discussion as to whether
we would or would not go off the gold standard. Mr. Cannon's scrapbooks for the years. 1893-96, are full of just this subject. It doesn't mean
that there were not frantic, hysterical people who went about predicting
collapse. It means, merely, that courage and discipline and loyalty and
determination to pay prevailed. It means, merely, that the old rule was
sound-that courage in paying begets confidence that paying will continue.
Fears and Facts.
Before I leave this point, let me say that I am not talking merely figures
and history. I went through this scare about the gold standard, which
lasted from late September of 1931, following the suspension of gold payments by the Bank of England. to June 15 1932. in a position such that I
knew the inside facts. I knew what was going on. There was never any
doubt that we had overwhelming financial resources, assumincs only ordinary courage in their utilization. And I had contacts enough with the Federal Reserve authorities during this period, and particularly the New York
Federal Reserve Bank, to be in a position to say to you that they did keep
their courage, and that, throughout, they were resolute in their determination to pay and to use their resources. They were calmly confident throughout. They knew what the'foreigners could do, because they had weekly
figures, and even daily figures when they wanted them,from all the banks
dealing with foreigners. They knew what our own public was doing. They
knew that their resources were abundantly adequate.
There were vauge fears, even in the minds of some who knew the limits of
foreign short-term balances in the United States, that the foreigners would
Increase these by fantastic sums by selling American securities in our market. Those of us who watched that and knew what was going on did not
entertain these fears. These fears were often expressed in May and early
June of 1932. It is not necessary for me to make inside revelations with
respect to that point. In point of fact, however, during much of this time,
and especially in May. June and July, there was foreign buying. There
was certain hysterical foreign selling, but shrewd English. Swiss and Dutch
Investors, to say nothing of Other foreign Investors, do not liquidate their
Investments at the bottom of a panic. They buy then. Parenthetically,
there were also enough shrewd American investors with courage and cash to
buy securities in May, June, and early July, so that our stock market,
though gloomy, blue and depressed, was not disorderly or helpless.
I want to give you some comparative figures, part of which I have previously published, which will show you that our gold position through the
whole of this trouble remained stronger than it was In 1928 or 1929, and
far stronger than it was in 1920 or even 1919, from the standpoLnt of the
relation of our gold in the Treasury and the Federal Reserve System to our
demand obligations, including both paper money in circulation and demand
deposits of commercial banks.
UNITED STATES GOLD POSITION.
Interest
Gold of
Fed. Res. Sys Total Gold
Paper
Bearing
in Excess of in Treasury
National
Money
Debt
Legal
and
its
Outstanding. Requirements. Fed. Res. Sys. Circulation.
Demand
Deposits
of all
"I
Commercial
Banks.• I
$
June 30 '19 25,234,000,000 604,000,000 2,620,000.0004,354,000,000 15,615.000.000
June 30 '20 24.061,000,000 227,000,0002,213,000,0004.865,000.000116,603.000.000
16,853,000,000 1,205,000,0003,732,000,000 3.984,000.000 24,892,000,000
June 30
June 30 '20 16.034,000,000 1,084,000,0003,956,000,000 3,935.000,000124.869.000.000
June 30 '30 15.158,000,000 941,000.0004,178,000,000 3,727,000.000 25.574,000,000
June 30 '31 16,228,000,000 829,000.0004.593,000,0004,034,000,000122.291.000,000
Dec. 31 '31 16,776,000,000 403.000,0004 050 000 0004 818 000 000e20048.000.000
Feb. 26 '31 17,820,000.000 416.000.0003,944,000,0004,780.000,000el8674,000.000
Mar. 2 '31 17,820,000.00011398.000,000 3,944,000,000 4.771.000,0001e18677.000.000
May 31 '31 18.729,000,006 1,142,000,000 3.714,000,000 4,644,000,00O e18745.000.000
June 8 '31 18,729,000.000 1,033.000,000 e3544,000.000 e4644.000.000el8657,000,000
June 15 '32 19,161,000.000 967,000.000 e3456,000.000 e4614,000.000el8874,000,000
June 22 '31 19,161,000,000 959.000.000 e3464.000.000 e4652.000.
18547,000.000
Sept. 28'32 20,296.000,000 1,173,000,000 e3736.000,000 e4758.000.000el9061,000.000
Oct. 26 '32 20 485 000 000 1.250 000 000e3812 000 000e4740 000 000el9381.000.000
Paper Money
Rano of Go'd
in Circulation in Treasury and
plus Demand
Fed. Res. Sys.
Deposits of All to Paper Monet'
Commercial
plus Demand
Banks.
Deposits.
Ratio of Gold
In Treasury and
Fed. Res. Sys.
to Paper Money
in
Circulation.
"Bourse Ratio"
of Federal
,1
Reserve
Batas.
June 30 '19 19,969.000.000
52.1
13.1
60.2
June 30 '20 21,468,000.000
42.8
45.5
10.3
June 30 '28 28,876,000,000
67.0
12.9
93.7
June 30 '29 28,804,000,000
73.3
13.7
100.5
June 30 '30 29.301,000,000
14.3
112.1
81.8
June 30 '31 26,325,000,000
17.4
113.9
84.6
Dec. 31 '31 24,866,000,000
16.3
84.1
66.6
Feb. 26 '32 23.454,000,000
82.5
16.8
68.0
Mar, 2 '32 23,448.000.000
16.8
82.7
68.1
May 31 '32 23,389,000,000
80.0
15.9
61.4
June 8 '32 23,301,000,000
76.3
15.2
59.4
June 15 '32 23,488,000.000
14.7
74.9
57.9
June 22 '32 23.199,000.000
14.9
74.5
57.8
Sept. 28 '32 23.819.000.000
15.7
78.5
60.8
Oct. 26 '32 24.121 000.000
80.4
15.8
61.9
e Estimated.
s The stat sties for demand deposits for 1919 and 1920 appear to be less inclusive
than for those of later years. To the extent that this is true, the ratio of gold reserve
to demand liabilities for the earlier years. as shown in our table, is somewhat higher
than It was in fact.
I The Glass-Steagall bill has permitted the substitution of Government securities
for gold as collateral for Federal Reserve notes, although still retaining the requirement of 40% gold against notes In circulation.
The American Congress and the Gold Standard.
I have gone at length into this matter of the gold standard because I
do not want any ghosts to haunt us at a later time. We must Os tr the
record now, and, for the sake of this same record, I want to emphasize
another point. The American peole do not believe in fiat money, and the
elected representatives of the American people are not going to give us fiat
money legislation. They may flirt with disguised unsound expedients, the
dangers of which are not obvious to them, as in the Goldsborough RM.
which was passed through the House of Representatives by a big majority of
both parties. They ought not to have passed this, but the trained technicians
In the Senate very effectively squelched it, not even letting it come to a
vote. But, when it comes to undisguised fiat money measures, like the
bonus bill which the House passed last spring, which proposed to issue over
2.300.000.000 of Federal Reserve notes to pay the veterans' bonus, the
case is different. The House would not have passed that measure if they
had not known that the Senate would kill it. The House does that sometimes. It is easy to "pass the buck". But the old Senate rose magoiti-
3458
Financial Chronicle
cently to the emergency, and by a splendid bipartisan majority of 62 to 18
they gave it a definite quietus.
Bonus agitation, and even bonus legislation, will have to be fought again
in all likelihood, but I do not believe that the advocates of the bonus are
going to handicap themselves again by a fiat money complication. Congress is not made up of saints. There are men who will make demagogic
speeches in Congress, men who will "pass the buck", men who will avoid
issues if they can. But the great majority of members, both of the House
and Senate. are patriots, and, when a clean-cut issue of the credit of the
Government or the soundness of the currency, or any other basic, fundamental, national interest is before them in unmistakable form, I am not
afrfd of them.
Nov. 19 1932
The banks have made wide use of government securities as currency
packing, the maximum having been reached July 6, with $682,000,000.
Since that time, however, there has been a more or less steady decline,
and for the week ended Nov. 9 6424,000.000 in government securities
were being so employed. For several weeks the New York Reserve Bank
has used no United States securities as currency backing.
The Governors considered the findings of a group of Reserve Board
experts who have been making a study of branch banking over a period of
about two years. This probably will be made available to the Congressional Banking and Currency Committees.
C. Teagle and Edward K. Mills Elected Directors
of Federal Reserve Bank of New York.
The following circular was issued by the New York
ederal Bank on Nov. 16 regarding the election of two new
directors to succeed Thomas W. Stephens and Theodore
F. Whitmarsh, whose terms expire Dec. 31 1932:
Waiter
all Meeting of Governors of Federal Reserve Ban1c
with Members of Federal Reserve Board—Federa
Reserve Agents also Meet with Governors—Reported Indorsement of Three Policies—United
System Asked, It Is Said, with Extension of Open
Market, Glass-Steagall Plans.
The regular Fall meeting of the Governors of the twelve
Federal Reserve Banks with the members of the Federal
Reserve Board was held in Washington this week. The
Federal Reserve Agents also participated in the conferences,
According to the Washington advices Nov. 15 to the New
York "Herald-Tribune" Nov. 15, three general policies
deemed essential to effective operation of the Federal
Reserve system in the present business situation were discussed broadly and virtually reaffirmed on that day by
Governors of the twelve Federal Reserve banks and agents
of the system. The account also said:
These policies include:
1. Extension for another year of the provisions of the Glass-Steagall
act making government securities eligible as backing for the issuance of
Federal Reserve notes.
2. Continuation of present open-market operations of the Federal Reserve banks, at least to the extent ofretaining approximately $1,800.000,000
in government securities acquired in the ten months in which the purchases,
as an easement to credit, have been under way.
3. Recommendation of a united banking system as the basis for any new
legislation in the form of amendment to the Federal Reserve act.
The New York "Times" in its account from Washington
Nov. 15 referring to the meeting of the Governors with the
Board, as the Open Market Policy Committee, noted that
there was no statement, but in view of the various economic
influences now at work,it was generally believed there would
be no change in the open market policy. The "Times"
dispatch also said:
Sources close to the reserve system said the present intention was- to
maintain the present holding of about $1,850,000.000 in government
securities, at least for another six weeks.
Both from the standpoint of new Treasury financing, to amount to over
$2,000,000,000 before the end of this administration and of the private credit
situation, officials said no selling of government securities appeared advisable.
For the first time in two years the Federal Reserve agents met here
with the governors. This was not regarded as particularly significant.
The conferences to-day continued consideration of legislative problems
and of many technical reserve practices upon which rulings were required.
With the opening of the meeting on Nov. 14 of the Governors and Federal Reserve Agents the "Times" on that date
reported the following from Washington:
Secretary Mills attended the meeting. While no statement was made.
it was thought Mr. Mills gave the Federal Reserve governors a report as to
the probable volume of Treasury financing to take place Dec. 15, as well as
informing them of the probable requirements for the rest of the fiscal year.
The maturity next month amounts to $600.442,200 in 3 % notes. The
new issues or issue will be considerably larger than the maturity. Bonds
are receiving consideration, and if market conditions are found right it
Is expected that a part of the financing will be in long-term securities.
The Treasury is desirous of consolidating the public debt with a substantial reduction in the outstanding short-term indebtedness before the
close of the present administration.
Secretary Mills, it is understood, questioned the governors as to what
type of securities will be best received.
The Winter financing probably will be announced about the 1st of December.
Revenue Situation Discussed.
The government's revenue situation is unfavorable, and it was anticipated
that the returns from the higher income and corporation tax rates due
next March would be disappointing. Mr. Mills is believed also to have
gone over with the Governors the revenue situation, pointing out to them
that new sources must be provided by Congress. Mr. Mills, it is reported,
may recommend a sales tax to Congress.
Much legislation of particular interest to the Federal Reserve Banks
sill come up before the short session of Congress. Eugene Meyer, Governor
of the Federal Reserve Board, has been working on a unified banking
system bill which he proposed at the last session. Senator Glass suggested
that the Governor submit a bill.
If such legislation were to obtain approval, the entire banking system
of the United States would be completely reorganized and commercial
banking would be conducted under a single national system.
The question of the extension of the provisions of the Glass Steagall
bill authorizing the Reserve Banks to substitute government securities
for eligible commercial paper as backing for Federal Reserve notes also came
up. It was the understanding that the oanke favor extension, although
they might not take the initiative in seeking it until shortly before the
terms of the act expire in February.
Branch Bank Report .Studied.
This section of the bill was designed to create a larger free gold supply,
so that demand for gold from abroad could be met with the least disturbance to the American credit situation. It was regarded as mildly
Inflationary in character.
If gold continues to come into the country and other conditions improve
it may not be essential that the privilege be continued, although most
officials doubted that this would take place.
FEDERAL RESERVE BANK OF NEW YORK
'Circular No. 1144, Nov. 16 19321
Results of Election of Directors.
To Member Banks in the Second Federal Reserve District:
The election of directors to succeed Thomas W.Stephens, Class A director,
and Theodore F. Whitmarsh, Class B director, whose terms expire Dec.
31 1932, has been duly held in accordance with the requirements of Section
4 of the Federal Reserve Act and the provisions of Circular No. 1136 dated
Oct. 5 1932.
The results of the election are as follows:
Edward K. Mills, Morristown, N. J., President, Morristown Trust Company, was elected by member banks in Group 2 as a Class A director of this
bank, to succeed Thomas W. Stephens. and Walter C. Teagle, New York,
N. Y., President, Standard OH Company of New Jersey, was elected by
member banks in Group 2 as a Class B director of this bank to succeed
Theodore F. Whitmarsh. Each was chosen for a term of three years beginning Jan. 1 1933.
J. H.CASE,Chairman of the Board.
The nomination of Mr. Teagle and Mr. Mills was noted
in our issue of Oct. 8, page 2419.
Federal Reserve Bank of Philadelphia Re-elects
Directors.
Joseph Wayne, Jr., President of the Philadelphia National
Bank, and Arthur W. Sewall, President of General Asphalt
Company, were elected directors of the Federal Reserve
Bank of Philadelphia on Nov. 17 for a term of throe years
from Jan. 1 1933, to succeed themselves, it is learned from
the Philadelphia "Record" of Nov. 18.
Tenders of $311,766,000 Received to Offering of $75,000,000 or Thereabouts of 91-Day Treasury Bills
Dated Nov. 16—Bids Accepted $75,480,000—Average
Rate 0.21%.
Tenders of $311,766,000 were received to the offering of
$75,000,000 or thereabouts of 91-day Treasury bills, dated
Nov. 16, to which reference was made in these columns
Nov. 12, page 3262. The amount of bids accepted was
$75,480,000; the average price of bills to be issued is 99.948-the average rate on a bank discount basis being about
0.21%. In our issue of Nov. 5 (page 3076) we noted that
the offering of $75,000,000 or thereabouts of 91-day Treasury
bills dated Nov. 9 were placed at an average rate of about
0.22%. In the case of the previous offering of 91-day
Treasury bills ($80,000,000 dated Oct. 26) the average rate
was about 0.20%, (as noted in these columns Oct. 29,
page 2911); the record low interest rate (0.14%) was recorded
in the case of the issue of $75,000,000 or thereabouts of
bills dated Oct. 19, to which we referred in our issue of
Oct. 22, page 2748. In announcing the results of the offering of the $75,000,000 of 91-day bills dated Nov. 16, Secretary of the Treasury Mill. on Nov. 14 said:
Secretary of the Treasury Mills announced to-day that the tenders for
$75,000,000, or thereabouts, of 91-day Treasury bills, dated Nov. 16 1932,
and maturing Feb. 15 1933, which were offered on Nov. 10, were opened
at the Federal Reserve Banks on Nov. 14.
The total amount applied for was $311,766,000. The highest bid made
was 99.952, equivalent to an interest rate of about 0.19% on an annual
basis. The lowest bid accepted was 99.944, equivalent to an interest
rate of about 0.22% on an annual basis. Only part of the amount bid
for at the latter price was accepted. The total amount of bids accepted
was $75.480,000. The average price of Treasury bills to be issued is
99.948. The average rate on a bank discount basis is about 0.21%.
Offering of $60,000,000 or Thereabouts of 92-Day
Treasury Bills Dated Nov. 23.
On Nov. 17, Secretary of the Treasury Mills announced
a new offering of 92-day Treasury bills to the amount of
$60,000,000 or thereabouts. These are to replace an issue
of $62,350,000 which mature Nov. 23. Tenders for the
new bills, which are sold on a discount basis to the highest
bidders, will be received at the Federal Reserve Banks,
or the branches thereof, up to 2 P. M., Eastern Standard
time, on Monday, Nov. 21. Tenders will not be received
at the Treasury Department, Washington. Secretary Mills*
announcement also said in part:
The Treasury bills whl be dated Nov. 23 1932 and will mature on Feb.
23 1933 and on the maturity date the face amount will be payable without
Interest. They will be issued in bearer form only and in amounts or
Volume 135
Financial Chronicle
denominations of $1,000, 110.000, 1100,000, $500,000 and 11,000,000
(maturity value).
No tender for an amount less than $1,000 will be considered. Each
tender must be in multiples of 11,000. The price offered must be expressed
on the basis of 100, with not more than three decimal places, e. g., 99.125.
Fractions must not be used.
Tenders will be accepted without cash deposit from incorporated banks
and trust companies and from responsible and recognized dealers in investment securities. Tenders from others must be accompanied by a deposit
of 10% of the face amount of Treasury bills applied for, unless the tenders
are accompanied by an express guaranty of payment by an incorporated
bank or trust company.
Immediately after the closing hour for receipt of tenders on Nov. 21,
1932, all tenders received at the Federal Reserve Banks or branches thereof
up to the closing hour will be opened and public announcement of the
acceptable prices will follow as soon as possible thereafter, probably on
the following morning. The Secretary of the Treasury expressly reserves
the right to reject any or all tenders or parts of tenders, and to allot less
than the amount applled for, and his action in any such respect shall be
final. Those submitting tenders will be advised of the acceptance or
rejection thereof. Payment at the price offered for Treasury bills allotted
must be made at the Federal Reserve Banks in cash or other immediately
available funds on Nov. 23 1932.
The Treasury bills will be exempt, as to principal and interest, and any
gain from the sale or other disposition thereof will also be exempt, from
all taxation, except estate and inheritance taxes. No loss from the sale
or other disposition of the Treasury bills shall be allowed as a deduction,
or otherwise recognized,for the purposes of any tax now or hereafter imposed
by the United States or any of its possessions.
Loans of $1,397,596,033 by Reconstruction Finance
Corporation from Feb. 2 1932 to Oct. 31—Repayments $253,537,052-601 Applications for Loans in
October Compared with 1,527 in April—Advances
to Banks, Railroads, Building and Loan Associations, &c.
According to a statement made available on Nov. 16
by the Reconstruction Finance Corporation, from Feb. 2,
the date the Corporation began operations, up to the close
of business on Oct. 31, the Federal Government had lent
through it the sum of $1,397,596,033.55 in actual cash to
aid agriculture, commerce and industry to recover from the
depression. The borrowers had repaid $253,537,052.56,
leaving a balance of Federal funds outstanding in their
hands of $1,144,058,980.99.
The number of applications for loans in October was
601, of which 484 were sought by banks and trust companies
(including receivers). In April, when the high figure for
loans was recorded, the applications totaled 1,527—that
total embracing banks, railroads, building and loan associations, &e.
In making public the figures covering the peTiod from
Feb. 2 to Oct. 31, the announcemnt by the Reconstruction
Finance Corporation on Nov. 16 said:
The Corporation's operations had been carried on with 11,175,000,000
in cash supplied to it by the Treasury of the United States. The Treasury
purchased the entire $500,000,000 of authorized capital stock of the Corporation and $675,000,000 of its notes, which bear 3Si% interest.
That the amount disbursed in cash to borrowers is greater than the amount
of cash supplied to the Corporation by the Treasury is accounted for by
that fact that the Corporation's resources are a revolving fund and amounts
repaid may be lent again by it.
$64,204,503.06 of the amount lent was disbursed through the Secretary
of Agriculture to 507,632 farmers for crop production purposes from funds
supplied to him by the Corporation, as provided for in Section 2 of the
Reconstruction Finance Corporation Act, On Oct. 31 the Secretary had
received 111,952,521.96 in repayment of these loans, which were made to
farmers in every State except Rhode Island.
$1,332,225,316.11 was disbursed directly by the Corporation, $1,300,883,971.53 of that amount lent being to 6,175 borrowers under Section 5
of the Reconstruction Finance Corporation Act, $30.978,393.15 oeing
advanced to 30 States and 2 Territories for relief purposes under Title I of
the Emergency Relief and Construction Act of 1932, and 1362.951.43 was
disbursed to borrowers under Section 201 (d) of the Emergency Act to
enaole them to carry and market in an orderly manner agricultural products
produced in the United States.
Repayments made by borrowers under Section 5 up to Oct. 31 amounted
to 1241.583.729.98 of which 1211,328.013.57 had been repaid by banks.
This is nearly 27% of the amount advanced to banks. No repayments of
relief advances or of loans under Section 201(d) had been made.
$1,166,214.38 was disbursed by regional agricultural credit corporations
created by the Reconstructioon Corporation under Section 201(e) of the
Emergency Act. This sum was lent to 339 farmers and eockmen for
agricultural purposes. and $800,62 had been repaid.
Since Nov. 1 the Corporation has announced the disbursement of an
additional $742,043.62 through the regional agricultural credit corporations,
making total disbursements through those agencies of 12,908,256 up to the
close of business on Nov. 1.
The statistics made public to-day show also that while 11,397.596.55 of
Federal funds had actually been disbursed in cash through the Corporation
by Ict. 31, it had, from the beginning of its operations on Feb. 2, made
ommnitments involving 11,843,670,253.60. Of the amount remaining
undisbursed, 153,170,471.14 had been cancelled and $392,903,748.91 stands
to the credit of those in favor of whom the commitments were made.
Among the commitments made since Feb. 2 were authorizations of loans
to 55 railroads aggregating $290,293,202.00 to be used for the following
purposes
For completion of new construction work
147,746,483
For construction and repair of equipment and Dotsero cutoff— 10,050,000
To pay interest on funded debt
73,959.547
To pay taxes
-------------19.606,946
-------vouchers tor wages, matmaterials,
To pay past due
- s, 19,630,040
To pay principal of maturing equipment trust notes
19,160,513
To pay off or reduce loans from banks
37,788.900
To pay other loans
15,843,526
To retire maturing bonds and other funded obligations
41,142,618
Miscellaneous
5.364,629
The Corporation has previously announced the making of the separate
loans which compose the aggregate of110,050.000 authorized for construction
3459
and repair work. These include 13.850,000 to the Denver & Rio Grande
Western to construct the Dotsero Cutoff, a project which will shorten the
rail distance between Denver andpoints west about 170 miles and provide
employment for 1,000 to 1,500 men for a period of 18 months to two years.
It is estimated that about 12,500,000 of the amount lent will be paid out
in wages.
Other loans of this character are $700,000 to the New Haven to repair
locomotives and freight cars; 1500,000 to the Central of New Jersey to
repair locomotives, freight and passenger cars and marine equipment:
12,000,000 to the Pennsylvania RR. to build 1.285 new freight cars; and
13,000.000 to the B. & 0. to be used to build 820 new steel gondola cars
and to repair existing equipment. Although not included in the foregoing
figures because made after Oct. 31, a similar loan of $2.500,000 has been
made to the New York Central, which will be used to repair 13,000 cars.
All of the loans enumerated above bear 5% interest. and 6% interest was
charged on all other loans to railroads. The 5% rate was made to encourage the roads to undertake this work to provide employment that probably
would not have been available otherwise.
Among the $47,746,483 ofloans authorized for completion of construction
work was one of$27,500.000 to the Pennsylvania RR.to complete electrification of its lines between New York and Washington; $10,400,000 to the
Cincinnati Union Terminal Co. to complete the union terminal facilities
being constructed in Cincinnati; 14,000,000 to the New York Central for
its improvements on the west side of New York City, and $3.031,000 to the
Chicago Milwaukee St. Paul & Pacific to complete grade separation work
in Milwaukee and track elevation in Evanston, Ill.
The $73,959,547 ofloans authorized to railroads to be used to pay interest
on their funded debts was immediately disbursed by them to the holders of
their securities—insurance companies, savings banks, private investors,
trust funds and foundations, and other owners of railroad bonds.
The $19,606,946 of loans authorized to pay taxes was immediately passed
on and went to the support of State, county and municipal governments.
The 119.630,040 authorized for the payment of past due vouchers for
wages, materials and supplies was immediately disbursed to those to whom
the borrowing roads awed money for services rendered and goods furnished.
The amounts authorized to pay 119,160,513 of maturing equipment trust
notes; to retire $41,142,618 of maturing bonds and other funded obligations; and to pay off 115,843.526 of other loans consisting almost entirely
of secured notes, passed into the hands of the owners of the securities.
The owners were largely insurance companies,savings banks,foundations
and trusts and individual investors.
The $37,788,900 to pay off tir reduce loans from banks was authorized
to 19 railroads.
Much of the $5,364,629 authorized in loans to railroads for miscellaneous
purposes was used by them to replenish working capital.
The statistics made puolic to-day also show a continued decline in applications received by the Corporation for loans from institutions authorized
to borrow under Section 5 of the Reconstruction Finance Corporation Act.
The following table shows the number of applications made under that
section during the last five months.
Oct. Sept.
Aug.
July
June.
Banks and trust companies (including receivers)
484
515
1,088
1,049
800
Building and loan associations.. _ 62
105
124
139
140
Insurance companies
6
18
20
11
14
Mortgage loan companies
10
15
21
32
16
Credit unions
2
Federal land banks
1
____
8
Joint stock land bat its
3
3
2
4
5
Agricultural credit corporations
14
21
29
19
18
Livestock credit corporations_ _ _ _ 10
19
32
22
26
Railroads (including receivers) _ _ 10
14
12
13
8
601
700
1,281
1,150
1.321
The total number of applications received in May was 1.320, in April,
1,527, in March, 1.176 and in February, 166.
OPERATIONS OF THE RECONSTRUCTION FINANCE CORPORATION FROM THE BEGINNING (FEB. 2) TO ocr. 31.
Up to the close of business on Oct. 31 the Treasury of the United States
had supplied the Reconstruction Finance Corporation with $1,175,000.000
in cash. This was done by purchasing the entire $500,000,000 of the
Corporation's capital stock and 1675.000.000 of its 3 % notes. From
the funds thus put at its dlposa1 the Corporation had:
I. Under Section 2 of the Reconstruction Finance Corporation Art.
Paid over to the Secretary of Agriculture the sum of 175.000,000 to be
used by him, as authorized and directed by this Section, in making loans
to tamers for crop production purposes in the year 1932. The Secretary
has lent 164,204.508.06 to 507,612 farmers and has received in repayment
from them a total of 111.952.521.96. These loans, which averaged $126.48
each, were made to farmers in every State except Rhode Island.
II. Under Section 5 of the Reconstruction Finance Corporation Act.
Authorized 8,727 loans aggregating $1,469,560,708.44 to 6,230 borrowers of the classes to which loans may be made under this Section. These
loans are segregated according to classes of borrowers as follows:
6.859 loans aggregating $828,942,733.24 were authorized to 4,706 banks
and trust companies. The applicants later cancelled 140,735,115.64 of
this, 1753,346,747.05 was disbursed to them in cash, a balance of $34,860,870.55 has not been called for by them, and they have repaid $194,583,278.22.
473 loans aggregating 146,438,759.00 were authorized to 464 receivers
and liquidators of closed banks to aid in liquidating or reorganizing the
banks in their charge. They subsequently cancelled $3,299,398.80 of
this. $33,991,290.65 was disbursed to them in cash, 19,148,069.55 remains
at their disposal and they have repaid $16,744,735.35.
The total of loans authorized to both banks and receivers was 1875,381-492.24. The applicants have cancelled $44,034,514.44 of this, 14-4,008.940.10 remains uncalled for by them, $787,338,037.70 in cash has been
paid over to them, of which they have repaid 1211,328,013.57, or nearly
27%.
849 loans aggregating 191,403,238.43 were authorized to 787 building
and loan associations. Applicants subsequently cancelled 12,605,022.04
of this, 185,391,939.10 was disbursed to them in cash, $3,406.277.29
remains subject to their call and they have repaid $6.367,353.75.
129 loans aggregating $12,444.287.30 were authorized to 17 livestock
credit corporations. Applicants have cancelled $810,028.08 of this,
111,210,272.34 was disbursed in cash to them, $423,986.88 is still at their
disposal, and they have repaid $1,886,615.16.
110 loans aggregating 176.402,200 were authorized to 89 insurance
companies. Applicants have cancelled $2,525,960.73 of this, $61,058.763.11 was disbursed in cash to them, $12,817,476.16 remains at their
disposal. and they have repaid $3,152,149.72.
106 loans aggregating $3,346,788.47 were authorized to 14 agricultural
credit corporations. (These are not the regional agricultural credit corporations created by the Reconstruction Corporation). Applicants have
cancelled 119,662.06 of the amount authorized. $3,055,726.61 was dis-
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Financial Chronicle
bursed to them in cash, $271,399.80 remains subject to call by them, and
they have repaid $369,924.65.
89 loans aggregating $290,293,202.00 were authorized to 55 railroads,
including receivers of railroads. Applicants have cancelled $150,000 of
this, $37,159,813 remains at their disposal, $252,983,389 was disbursed
to them in cash, and they have repaid $11,552,064.05.
The proceeds of loans authorized to railroads were to be used for the
following purposes:
For new construction
$47,746,483
For construction and repair of equipment and Dotsero Cutoff 10,050,000
To pay interest on funded debt
73,959,547
To pay taxes
19,606,946
To pay past due vouchers for wages, materials. &c
19,630,040
To pay principal of maturing equipment trust notes
19.160,513
To retire maturing bonds and other funded obligations
41.142,618
To pay loans from banks
37.788,900
To pay other loans
15.843,526
Miscellaneous
5,364,629
5290 293,202
Interest on the $10,050.000 authorized for construction and repair of
equipment and to build the Dotsero Cutoff is at the rate of 5%, while all
other loans to railroads bear 6% interest. The 5% rate was made to encourage undertaking the work for which the loans were made and thus
afford employment.
The Dotsero Cutoff is to be constructed by the Denver & Rio Grande
Western RR, and will shorten the distance between Denver and points
west about 170 miles, in addition to providing employment for 1,000 to
1,500 men for a period of 18 months to two years. It is estimated that
about $2,500.000 of the $33,850,000 lent will be paid out in wages.
Other loans made for the purpose of stimulating employment are $700,000
to the N.Y.N.H.& H.to repaid locomotives and freight cars: $2,000,000 to
the Pennsylvania RR. to build 1,285 new freight cars; 8500,000 to the
Central of New Jersey to repair locomotives, freight and passenger cars
and marine equipment; $3.000,000 to the B. & 0. to be used to repair
and rebuild locomotives and freight cars and build 820 new gondola cars.
Note.—Shice Oct. 31 the Corporation has announced authorization of a
loan of $2.500,000 to the New York Central to be used to repair 13,000 cars.
Among the $47,746.483 of loans authorized for completion of construction
work was one of $27,500,000 to the Pennsylvania Railroad to complete
electrification of Its lines between New York and Washington: $10,400,000
to the Cincinnati Union Terminal Co. to complete the union terminal
facilities in Cincinnati: $4.400,000 to the New York Central for its improvements on the West Side of New York City.and $3.031,000 to the Chicago,
Milwaukee, St. Paul & Pacific to complete grade separation work in Milwaukee and track elevation in Evanston, Ill.
The $73,959,547 of loans authorized to railroads to be used to pay interest
on their funded debts was immediately disbursed by them to the holders
of their securities—insurance companies, savings banks, private investors,
trust funds and other owners of railroad bonds.
The $19,606,946 of loans authorized to pay taxes was immediately passed
on by the railroads and went largely to the support of State governments.
The $19,630.040 authorized for the payment of past due vouchers for
wages, materials and supplies was immediately disbursed to those to
whom the borrowing roads owed money for wages and goods furnished.
The amounts author zed to pay off $19,160,513 of maturing equipment
rust notes; the amount to retire maturing bonds and other funded obligaions, $41,142,618: and to pay off $15,843.526 of other loans,consisting
'most entirely of secured notes all passed into the hands of the owners of
those securities, insurance companies, commercial and savings banks,
foundations and trusts and individual investors.
The $37,788,900 to pay off or reduce loans from banks was authorized
to 19 railroads.
Much of the $5,364,629 authorized for miscellaneous purposes was used
by borrowing roads to replenish their working capital.
Eighty-five loans aggregating $88,238,500.00 were authorized to 75
mortgage loan companies. Applicants canceled $1,493,565.95 of this,
$83,708,580.12 was disbursed to them in cash, $3,036,353.93 remains
subject to their call and they have repaid $6,878,236.99.
Fifteen loans aggregating $2,646,000.00 were authorized to 11 joint stock
land banks. No cancellations have been made by applicants, $1,463,911.55
has been disbursed to them in cash, $1,182,018.61 remains subject to their
call, and $42,689.09 has been repaid.
Nine loans aggregating $29,000,000 were authorized to nine Federal
land banks. The applicants have canceled $1,500,000 of this, $14,300,000
.n cash has been disbursed to them and $13,200,000 remains subject to
their call. No repayments have been made.
Three loans aggregating $405,000 were authorized to three credit unions.
Applicants canceled $31,648 of this, $3373.352 was disbursed to them in
cash and they have repaid $6,703
Loans authorized to banks and trust companies bear interest at the rate
of 5%% per annum, loans to receivers and liquidators of closed banks 5%,
loans to railroads to stimulate employment 5% and other loans to railroads
6%, and all other loans under Section 5 bear 6% interest.
III. Under Section 1 ofthe Emergency Relief and Construction Act.
Up to the c'ose of business on Oct. 31 the Corporation had made $58,089,933.22 available to 33 States and two territories to be used in furnishing relief and work relief to needy and distressed people. A total of 79
separate authorizations were made for this purpose. Cash disbursements
to these States and territories, as of Oct. 31, were $30,978,393.15.
Of the total amount authorized, $52,776,148.22 was made available to
30 States and two territories under paragraph (c) of Section 1, which provides
for reimbursement of the Federal Government by deductions from future
Federal contributions to States to aid in constructing roads and $5,313,785.00 was made available to political subdivisions of five States under
paragraph (e) of Section 1, which provides for reimbursement of the Federal
Government directly by the subdivisions to which the advances are made.
(Advances to some States have been made- under both paragraphs.)
The following amounts have been made available to States under Subsection (c) of Section 1:
Alabama
$225,000.00 New Mexico
$90,800.00
Arizona
250.0130.00 North Carolina
815,000.00
Arkansas..
1,031.900.00 Ohio
3,533,677.00
Colorado
1.085,635.00 Oklahoma
817,968.00
Florida
835,715.00 Oregon
221,538.00
Georgia
345,093.22 Pennsylvania
5,842,183.00
Idaho
300,000.00 South Dakota
430,695.00
20,303,150.00 Tennessee
Illinois
467,536.00
450,000.00 Texas
Kansas
366,597.00
672,550.00 Utah
Kentucky
640,000.00
2,385,258.00 Virginia
Louisiana
998,925.00
2.425,400.00 West Virginia
1,576,143.00
Michigan655,376.00 Wisconsin
3,000,000.00
Minnesota
850.000.00 Hawaii
307,435.00
Mississippi
986.774.00 Puerto Rico
360,000.00
Missouri
455,000.00
Montana
Total
50,800.00
$52,776,148.22
Nevada
The following amounts have been made available to political subdivisions
of States, at the request of governors, under Subsection (e) of Section I:
Nov. 19 1932
INDIANA.
St. Joseph County
$247,200.00
$247,200.00
MICHIGAN.
City of Detroit
City of Flint
City of Muskegon Heights
Schoolcraft County
Ostego County
Norton Township, Muskegon County
1.800.000.00
296,000.00
20,000.00
25.000.00
5,000.00
10,000.00
2,156,000.00
NORTH DAKOTA.
City of Minot and County of Ward
50,000.00
50.000.00
OHIO.
Lorain County
Mahoning County
Stark County
Montgomery County
Trumbull County
Summitt County
City of Cleveland
131,245.00
326,440.00
334,900.00
400,000.00
177,500.00
240,500.00
470.000.00
2.080,585.00
WASHINGTON.
King County
Grays Harbor County
675,000.00
105,000.00
780.000.00
$5,313,785.00
All advances for relief purposes, under both Subsections (c) and (e) bear
interest at the rate of 3%, that rate being fixed by Congress.
Note.—Between Oct.31 and the time these statistics are made public
(Nov. 14) the Corporation has announced additional authorizations of
advances to States and political subdivisions totaling $9,257.698, as follows:
Under Subsection (e):
Arizona
$256,200.00
Georgia
126,567.00
Indiana
250,000.00
Kansas
13,634.00
Michigan
162,525.00
Missouri
20,014.00
Montana
20,000.00
Nevada
4,167.00
New Hampshire
667,420.00
Ohio
791,264.00
Oregon
7,000.00
Pennsylvania
5,462,265.00
Texas
795,369.00
Virginia
72.423.0(1
West Virginia
367,300.00
$9.016,148.00
Under subsection (e):
IOWA.
Webster County
34,000.00
34,000.00
MICHIGAN.
Alcona County
9,500.00
Antrim County
21,801).00
Mackinac County
17,000.00
County
Genesee
Burton Township,
9,800.00
Wyoming Township, Kent County
25,000.00
City of Lincoln Park
19,450.00
102,550.00
WASHINGTON.
Snohomish County
105,000.00 •
105,000.00
$241,550.00
Total authorizations for relief purposes up to the date of publication of
therefore,
amount to $67.347,631.22 to 35 States and two
these statistics,
Territories.
NUMBER OF BORROWERS, EXCEPT RAILROADS, BY STATES AND
CLASSES, FEB. 2 TO OCT. 311932, INCLUSIVE, UNDER SECTION 5
OF THE RECONSTRUCTION FINANCE CORPORATION ACT.
AgriBldg.
Fed. J. S. cal- Live& Ins. Mtge. Credit Land Land ture stock Total.
Loan. co. Loan. tin. Bank, Bank, Credit Credit
Corp. Corp.
100
2
3
7 --- -----------Alabama
112
Alaska1
2 --- --- ----3
109 2.
Arkansas
1 --i --141
--- __
14
Ailzona
123 2ii --California
i ----1
155
1 ---------1 -45
1
Colorado
—
51
------ --- --- --Connecticut
36
_
1
Delaware
I
16 ------------ --- --------Dist. of Columbia_
16
43
Florida
__
1
89
Georgia
Idaho
11
--- --3 --- -----370 55
Illinois
439
._
_
6 ------ ----169 12
Indiana
1 ------188
10
421 12
Iowa
443
Kansas
Kentucky
144
:
:
: :
:
: :
1 "
:
:2
1 -.7
1 :
a
19
39
4 21
Louisian
a12
19
Maine
33
2
i
i
:
Maryland
i :-__ ___ - -48
Massachuaetts-38 --- --2
1
42
1 ___ ___ _
5 _
233 14
Michigan
302
Minnesota
1 __ ___ ___
3
100
Mississippi
104
197
1 ::" -- ""i
3
3
188
1
Missouri
2
47
Montana
117 ----------1
Nebraska
-.
--22
_ __ -_ -----------------Nevada
8
_ _---9
122 192
New Jersey
------__ _
_ ._
327
12 --- --- --- ___ ___ _-_-_ :-__
New Mexico
.1
13
131 20
6
9
1 --- --- -- --New York
167
5 _—
96 64
North Carolina
4
166
--1
1 ___ ___ ___
2
78
North Dakota__ _ _
1 ___
83
1 --- --- ___ ___ --2
173 159
Ohio
335
78 ___
2
2 ___ --- _---- —
Oklahoma
82
70 --- --Oregon
1
73
3
2 --- -------320 12
Pennsylvania
--- --- --- --Puerto Rico
1
Rhode Island
2
- .-- — South Carolina
i --- --- ----36 if
-—
1
55
------108
South Dakota_ _ _ _
2
152
4
----------------160
Tennessee
180 19
7
13 _ j
1
j
3
225
Texne
Utah
2
- --- --29
29
Vermont
i .... ..- --i __.
91
Virginia
.,.
101
120
2 --1
_
i -_-_-_ - —4
128
Washington
96 15
112
West Virginia
Wisconsin
- --- .-- --13
Wyoming
-89
5.171 787
Total
74
17 6,175
3
9
11
14
State.
Bks.
------------
Financial Chronicle
Volume 135
IV. Under Section 201 (a)of the Emergency Reliefand Construaion Act.
The Corporation had made commitments as of Oct. 31 totaling $134.633.500 to aid in financing construction of 24 self-liquidating projects.
These loans were authorized for the purpose of creating employment and
stimulating business recovery. No disbursements to borrowers have been
made under this Section as yet.
Note.—Between Oct. 31 and the time of publication of these statistics
the Corporation has announced commitments totaling $1,665,000 to aid
in financing four more self-liquidating projects. Total commitments.
therefore, are $136.298,500.
V. Under Section 201 (d) of the Emergency Relief and Construction Act.
The Corporation had authorized six loans aggregating $51,886.111.94 to
five borrowers under this Section to enable them to finance the carrying
and orderly marketing of agricultural commodities produced in the United
States. Disbursements to those borrowers were $362,951.43 and $51.523,160.51 remains at their disposal. No repayments have been received.
The interest rate on this character of loans is 6%.
3461
VI. Under Section 201 (e) of the Emergency Relief and
Construction Act.
Pursuant to this Section the Corporation had created a Regional Agricultural Credit Corporation in each of the 12 Federal Land Bank districts.
The Corporation is required by law to furnish each Regional Corporation
with a minimum capital of $3.000,000. although a larger amount may, if
necessary. be furnished. As of Oct. 31 it had suoscrIbed for that amount
in each and had placed capital at the disposal of eight—a total of $24,000.000.
From the capital supplied to them the Regional Corporations had, up to
the close of business on Oct. 31, disoursed $1,166.214.38 in cash to 339
farmers and stockmen to i.e used for agricultural purposes. and $800.62
had oeen repaid. 'I he interest charge on loans of this character is 7%.
which includes the cost of making inspections of the livestock upon which
the loans have been made. The Corporation believes this rate of interest,
including as it does all inspection costs, is as low as any prevailing charges
for loans of this type.
COMMITMENTS MADE BY THE RECONSTRUCTION FINANCE CORPORATION THROUGH OCT. 31 1932.
Authorized to be advanced to Secretary of Agriculture under Section 2 of Reconstruction Finance Corporation Act:
authorized to be advanced
amount
Total
$117,500,000.00
Less: Reallocation to use as capital of regional agricultural credit corporations
24,000.000.00
Net amount authorized to be advanced to Secretary for use in making crop production loans under Section 2
$93.500.000.00
Authorized to be lent under Section 5 of the Reconstruction Finance Corporation Act
1,469,560.708.44
Authorized to be made available to States and political sub-divisions of States for relief purposes
58.089,933.22
Commitments to aid in financing self-liquidating construction projects that will provide employment
134.633,500.00
Authorized to be lent under Section 201 (d) to enable carrying and orderly marketing of agricultural commodities
51.886,111.94
Capital furnished to 8 regional agricultural credit corporations created by Reconstruction Finance Corporation under Section 201 (e)__ _
24,000,000.00
Capital required to be furnished to 4 regional agricultural credit corporations created but not yet in operation
12,000,000.00
$1.843,670,253.60
DISPOSITION OF FUNDS MADE AVAILABLE BY ABOVE COMMITMENTS.
Cancellations
Cash disbursed to borrowers:
By Secretary of Agriculture to farmers for crop production loans
By Reconstruction Finance Corporation:
To borrowers under Section 5 of Reconstruction Finance Corporation Act
To States and political sub-divisions of States for relief purposes
To borrowers under Section 201 (d) to finance marketing of agricultural products
By regional agricultural credit corporations to farmers for agricultural purposes
Proceeds of outstanding commitments not yet disbursed:
Amount not drawn by Secretary of Agriculture
AMOUTIC drawn but not disbursed by Secretary of Agriculture
Proceeds of loans authorized under Section 5 of Reconstruction Finance Corporation Act not drawn by borrowers
Proceeds of authorizations to States for relief purposes not yet disbursed
Proceeds of commitments to aid in financing construction porjects not yet disbursed
Proceeds of authorizations under Section 201 (d) to finance marketing of agricultural products not yet disbursed
Capital furnished to 8 regional agricultural credit corporations not disbursed in loans
Capital to be furnished for 4 regional agricultural credit corporations not in operation Oct. 31
$53,170,471.14
$64,204,503.06
1,300.883,971.53
30.978.393.15
362,951.43
1,166,214.38
1,397.596.033.55
$18,500,000.00
10,795,496.94
115.506,265.77
27,111.540.07
134,633,500.00
51,523.160.51
22.833,785.62
12,000.000.00
$392,903,748.91
$1,843,670,253.60
Cash obtained by borrowers from the Federal Government through the Reconstruction Finance Corporation to Oct. 31 1932
Repayments by borrowers
Balance outstanding on Oct. 31
$1,397.596.033.55
253,537.052.56
$1.144.058,980.99
The report of the Corporation for the period from Feb. 2 to Sept. 30 1932, appeared in these columns Oct. 29, p. 2935. •
Report for September of Reconstruction Finance
Corporation—Loans Authorized During Month
Totaled $64,217,500 Compared with $122,277,641 in
August—Agricultural Credit Corporations Created.
The September report filed on Oct. 22 by the Reconstruction Finance Corporation with South Trimble, Clerk
of the House shows 691 loans authorized 1r, the Corporation
during the month of $59,155,319.56, and authorized increases of $5,062,180.94 in loans authorized prior to Sept.!,
making a total of $64,217,500.50. The last-named figure
compares with loans authorized in August of $122,277,641.
The August report was published in our issue of Oct. 22,
page 2766.
The loans authorized in September are summarized as
follows in the report just filed:
SUMMARY OF TABLE I.
Banks and trust companies (including receivers)
Building and loan associations
Insurance companies
Mortgage loan companies
Joint Stock Land banks
Agricultural credit corporations
Live stock credit corporations
Railroads (including receivers)
Total
$28,981,374.22
7.233.258.18
3,370.000.00
960,000.00
576,000.00
702,129.04
1,101,198.06
21.293,541.00
$64,217,500.50
The repart says.
Loans authorized during September which were withdrawn or canceled
in full during September, no par of the proceeds being disbursed, were as
follows:
To 12 banks and trust companies aggregating $557,000,
And to one building and loan association in the amount of $51,605.
Parts of loans authorized during September which were withdrawn or
canceled during September were as follows:
To banks and trust companies, $16,072.15;
To building and loan associations, $10,841.82;
To an insurance company, $500;
And to livestock credit corporations, $10,527.38.
In making public the September report, South Trimble,
Clerk of the House also made public the letter of transmittal of Atlee Pomerene, Chairman of the Boara of the
Corporation; the letter follows:
Oct. 21 1932.
Hen. South Trimble,
Clerk of the House of Representatives.
Dear Sir:
Pursuant to the provisions of Section 201 (b), Title 11, of the Emergency
Relief and Construction Act of 1932, the Reconstruction Finance Corporation submits this report of its activities and expenditures for September
1932, together with a statement of loans authorized during the month,
showing the name, amount and rate of interest in each case.
Under the provisions of Section 5 of the Reconstruction Finance Corporation Act, the corporation during this period authorized 691 loans
aggregating $59,155,319.56. and authorized increases aggregating $5,062,180.94 in loans authorized prior to Sept. 1 1932, making a total of $64,217,500.50. as shown in Table 1. These figures and the list of loans
authorized, contained in Table 1, do not include amounts withdrawn or
cance'ed from Sept. 1 to Sept.30 1932,inclusive, the date of this report was
closed.
Of the $64,217.500.50 authorized under Section 5, $28.981,374.22 WRS
authorized to banks and trust companies (including $4,433,359.00 to aid
in the reorganization or liquidation of closed banks); $7,233,258.18 to
building and loan associations; $3,370,000.00 to insurance companies;
$960,000.00 to mortgage loan companies; $576.000.00 to Joint Stock Land
banks; $702,129.04 to Agricultural Credit corporations; $1,102,198.06 to
Live Stock Credit corporations. and $21,293.541.00 to rallroads (including
$473,341.00 to railroad receivers).
Loans authorized by the Corporation are sometimes withdrawn or
canceled in full or in part, due to: the funds are not required by the borrowing institution; part of the collateral is defective or not available for pledging
at the time; the borrowing institution closed after the loan was authorized
and other reasons. Loans which were authorized in September and withdrawn or canceled in ftul during September, no part of the proceeds being
disbursed, are not included in the loans authorized and listed in Table 1,
but are summarized below. Likewise In cases where parts of loans authorized in September were withdrawn or canceled during September,
the amounts withdrawn or canceled are not included in Table 1, the net
amount of the authorization being given. These withdrawals or cancellations also are summarized below.
Loans authorized during September which were withdrawn or canceled
in full during September, no part of the proceeds being disbursed, were as
follows: to 12 banks and trust companies aggregating $557,000.00, and to
one building and loan association in the amount of $51,605.00.
Parts of loans authorized during September which were withdrawn
or
canceled during September were as follows:
To banks and trust companies
$16.072.15
To building and loan associations
10.841.82
To an insurance company
500.00
To live stock credit corporations
10,527.38
The Corporation's report for August took into account withdrawals
or
cancellations from Sept. 1 to Sept. 21, inclusive, with respect to loans authorized prior to Sept. 1 1932, and consequently such withdrawals
or cancellations are not discussed in this report.
Loans authorized during August which were withdrawn or
canceled in
full from Sept. 22 to Sept. 30. inclusive, not part of the
proceeds being disbursed, aggregated $85.000. These withdrawals and
cancellations are
listed in Table 2, because the loan authorizations were
included in the Corporation's report for August.
Parts of loans authorized during August which were withdrawn or
canceled from Sept. 22 to Sept. 30, inclusive, aggregated
$239,928.86.
These withdrawals and cancellations are listed in Table 3,
because the loans
to which they relate were contained in the Corporation's
report for August.
Parts of loans authorized during the period from July 21
to 31, 1932,
inclusive, which were withdrawn or canceled from Sept. 22 to
Sept. 30.
inclusive, aggregated $23,678.12. These withdrawals and cancellations
are listed in Table 4, because the loans to which they relate were
contained
in the Corporation's report for the period from July 21 to 31. 1932, inclusive.
In addition to the above, loans aggregating $309,100 which were author
ized before July 21 1932 were withdrawn or canceled in full from Sept. 22
Financial Chronicle
3462
to Sept. 30, inclusive, and parts of loans which were authorized before
July 21 1932, aggregating $1,751,739.94, were withdrawn or canceled from
Sept. 22 to Sept. 30, inclusive.
In cases where loans authorized prior to September 1932 were increased
during the month of September, the amounts of such increases are listed in
Table 1 as loans authorized during September.
Applications for loans received at the Washington office of the Corporation under Section 5 of the Act during September numbered 700, as
follows:
515 from banks and trust companies (including 46 applications from
receivers or liquidating agents of closed banks).
105 from building and loan associations.
8 from insurance companies.
15 from mortgage loan companies.
3 from Joint Stock Land banks.
21 from agricultural credit corporations.
19 from live stock credit corporations.
14 from railroads (including three from railroad receivers).
Under the provisions of Section 1, Title 1, of the Emergency Relief
and Construction Act of 1932, the Corporation authorized during September $18,523,502.22 for the purposes of relief, as shown in Table 5. Forma/
applications received under this section during September numbered 73.
Under the provisions of Section 201 (a), Title 11, of the Emergency
Relief and Construction Act of 1932, the Corporation authorized during
September loans or contracts aggregating $53,105,000, as shown in Table 6.
Formal applications received under this section during September numbered 66.
Under the provisions of Section 201 (d), Title 11, of the Emergency
Relief and Construction Act of 1932, the Corporation authorized during
September one loan in the amount of$1,500,000.shown in Table 7. Formal
applications received under this section during September numbered 9.
During September $25,000,000 of the $250,000.000 "Third Series"
3.H% notes authorized by the Board of Directors on July 23 1932 were
sold to the Secretary of the Treasury.
During the month the Corporation allocated $2,500,000 to the Secretary
Of Agriculture in accordance with the provisions of Section 2 of the Reconstruction Finance Corporation Act, making a total of $110,000,000 allocated from Feb.2 to Sept. 30, inclusive. Of this sum $75,000,000 had been
paid over to the Secretary of Agriculture as of Sept. 30.
Under the authority conferred on it by the provisions of Section 201 (a).
Title 11, of the Emergency Relief and Construction Act of 1932, the Corporation created the following 10 Regional Agricultural Credit Corporations to serve the indicated Federal Land Bank districts:
District No. 3 (North Carolina, South Carolina, Georgia and Florida)—
Regional Agricultural Credit Corporation of Raleigh, N. C.(with a branch
office at Mason, Ga.)
District No. 4 (Ohio, Indiana, Kentucky and Tennessee)—Regional
Agricultural Credit Corporation of Columbus, 0. (with a branch office at
Louisville, Ky.).
District No. 5 (Alabama, Mississippi and Louisiana)—Regional Agri
cultural Credit Corporation of Jackson, Miss. (with a branch office at
Montgomery, Ala.).
District No. 6 (Illinois, Missouri and Arkansas)—Regional Agricultural
Credit Corporation of St. Louis, Mo.(with branch offices at Chicago, Ill.;
Kansas City, Mo., and Pine Bluff, Ark.).
District No. 7 (Michigan, WiSCODBill, Minnesota and North Dakota)—
Regional Agricultural Credit Corporation of Minneapolis, Minn.
District No.8(Iowa, Nebraska, South Dakota and Wyoming)—Regional
Agricultural Credit Corporation of Sioux City, Iowa (with branch offices
at Omaha. Neb., and Cheyenne, Wyo.).
District No. 9 (Kansas, Oklahoma, Colorado and New Mexico)—
Reg onal Agricultural Credit Corporation of Wichita, Kan. (with branch
offices at Oklahoma and Denver, Colo.).
District No. 10 (Texas)—Regional Agricultural Credit Corporation of
Fort Worth, Tex. (with branch offices at Houston, Tex., and San Angelo, Tex.).
District No. 11 (Arizona, Utah. Nevada and California)—Regional Agricultural Credit Corporation of Salt Lake City, Utah (with branch offices
at San Francisco, Calif.; Los Angeles, Calif., and Phoenix, Ariz.).
District No. 12 (Montana, Idaho, Oregon and Washington)—Regional
Agricultural Credit Corporation of Spokane, Wash. (with branch offices
at Helena, Mont.; Portland, Ore., and Boise, Idaho).
The Memphis loan agency of the Corporation has been closed and its
work transferred to the loan agencies at Little Rock, Ark., and Nashville, Tenn.
The following tables are attached as a part of this report:
Statement of Loans.
Table 1—Statement of loans authorized from Sept. 1 to Sept. 30 1932
inclusive, under section 5 of the Reconstruction Finance Corporation Act,
showing the name, amount and rate of interest in each case (exclusive of
amounts withdrawn or canceled from Sept. 1 to Sept. 30 1932 inclusive).
Table 2—Statement of loans authorized during August 1932, which were
withdrawn or canceled in full from Sept. 22 to Sept. 30 1932 inclusive,
no part of the proceeds being disbursed.
Table 3—Statement of loans authorized during August 1932, which were
withdrawn or canceled in part from Sept. 22 to Sept. 30 1932 inclusive.
Table 4—Statement of loans authorized from July 21 to July 31 1932
nclusive, which were withdrawn or canceled in part from Sept. 22 to
Sept. 30 1932 inclusive.
Table 5—Statement of amounts authorized during September 1932 for
purposes of relief, under section 1, Title 1, of the Emergency Relief and
Construction Act of 1932, upon application of the Governors of the States
mentioned, showing names of the States, amount and rate of interest.
Table 6—Statement of loans or contracts authorized during September
1932, under section 201(a). Title 11, of the Emergency Relief and Construction Act of 1932.
Table 7—Statement of loan authorized during September 1932, under
action 201(d), Title 11, of the Emergency Relief and Construction Act
of 1932.
Table 8—Statement of cash receipts and expenditures of the Corporation
during September 1932 (Corporation's accounts with the Treasurer of the
United States).
Table 9—Statement of condition of the Corporation as of the close of
business Sept. 30 1932.
Respectfully,
ATLEE POMERENE, Chairman.
The report follows:
TABLE 1.
Statement of loans authorized from Sept. 1 to Sept. 30 1932 inclusive, under
Section 5 of the Reconstruction Finance Corporation Act, showing the name,
amount and date of interest in each case (exclusive of amounts withdrawn or
canceled from Sept. 1 to Sept. 30 1932. inclusive.)
BANKS AND TRUST COMPANIES.
(Interest rate 536% unless otherwise noted. Asterisk indicates no Part
of amount authorized had been disbursed up to Sept. 30.)
Nov. 19
1932
ALA_BA1VIA.
City and Name—
Brewton—Farmers & Merchants Bank of Escambla
Brewton—Bank of Brewton
Decatur—Tennessee Valley Bank
Decatur—Tennessee Valley Bank
Fairfield—Fairfield Trust & Savings Bank
Ozark—Planters and Merchants Bank
ARIZONA.
Holbrook—First National Bank
ARKANSAS.
Berryville—Peoples State Bank
Forrest City—Planters Bank & Trust Co
Hoxie—Bank of Hoxie
Melbourne—Bank of Melbourne
Mena—Farmers & Merchants Bank (Receiver) (5%)
Shirley—Bank of Shirley
CALIFORNIA.
Carlsbad—First National Bank of Carlsbad
Delano—Growers Security Bank
Highland—First Bank of Highland
Los Angeles—Broadway State Bank
Madera—First National Bank of Madera
Pleasanton—Amador Valley Savings Bank
San Diego—Bank of East San Diego
Sebastopol—Analy Savings Bank
COLORADO.
Briggsdale—Briggsdale State Bank
Fowler—Fowler State Bank
Lafayette—First Nat'l Bank of Lafayette (Receiver)(5%)Vernon—Vernon State Bank
CONNECTICUT.
Bristol—Bristol Bank & Trust Co
DISTRICT OF COLUMBIA,
Washington, D. C.—Industrial Savings Bank of the District of Columbia
FLORIDA.
Brooksville--First National Bank in Brooksville
Fort Pierce—St. Lucie County Bank
Palatka—Putnam National Bank of Palatka
West Palm Beach—Florida Bank & Trust Co. of West
Palm Beach
GEORGIA.
Brunswick—Brunswick Bank & Trust Co
Statesboro—Sea Island Bank
Washington—National Bank of Wilkes at Washington
(Receiver) (5%)
IDAHO.
Craigmont—Craigmont State Bank
Glenns Ferry—Glenna Ferry Bank, Ltd
Kendrick—Kendrick State Bank
Kimberly—Bank of Kimberly
St. Maries—Lumbermens State Bank & Trust Co
Twin Falls—Twin Falls Bank & Trust Co
ILLINOIS.
Altamont--First National Bank of Altamont
Anchor—Anchor State Bank
Centralia—City National Bank of Centralia
Chicago—East Side Trust & Savings Bank
Chicago—Sixty-third and Halsted State Savings Bank
Chicago—South Ashland National Bank of Chicago
(Receiver)
------Of'
Chicago—Standard
eeeiver) (5%)Clayton—Clayton State Bank
of
Collinsville
Bank
Collinsville—State
Cordova—State Bank of Cordova
Crossville--First National Bank
DeKalb--DeKalb Trust & Savings Bank
Downers Grove—First National Bank of Downers Grove
(Receiver) (5%)-----------Galena—First State--- gaNTilgs Bank ciOltiena
Hopedale—Hopedale National Bank (Receiver) (5%)
Jacksonville—Ayers National Bank of Jacksonville
LeRoy—First National Bank of LeRoy (Receiver) (5%)
Mendota—First Nat'l Bank of Mendota (Receiver) (5%).
Mendota—Mendota National Bank (Receiver) (5%)
Mount Carmel—American-First National Bank
Newton—First National Bank of Newton
Olney—First National Bank
Oneida—First National Bank of Oneida (Receiver) (5%)_ _
Ottawa—National City Bank of Ottawa (Receiver) (5%)Secor--First National Bank
Smithshire—Smithshire State Bank
INDIANA.
Clayton—Clayton Bank & Trust Co
Clinton—First National Bank of Clinton
Connersville—First Nat. Bk.of Connersville(receiver)(5%)
Corydon—Old Capital Bank & Trust Co
Elwood—Elwood State Bank
Fort Wayne—Lincoln Nat. Bk.& Tr. Co.of Fort Wayne
Huntingburg—First National Bank
Huntington—First State Bank
Jasper—German American Bank
Kokomo—Citizens Nat. Bk. of Kokomo (Receiver)(5%)
Medora—Medora State Bank
Mishawaka—North side Trust & Savings Bank
New Albany—Mutual Trust & Deposit Co
New Haven—Peoples State Bank
Noblesville--Citizens State Bank
Plymouth—First National Bank of Marshall County
Salem—Farmers-Citizens State Bank
Seymour—Seymour National Bank
South Bend—Citizens Trust & Savings Bank
South Bend—St. Joseph Loan & Trust Co
Star City—First State Bank
Sunman—Farmers Bank of Sunman
IOWA.
Amber—Amber Savings Bank
Baldwin—Baldwin Savings Bank
Bremer—Farmers Savings Bank
Burlington—Burlington -Savings Bank
Burlington—Burlington Savings Bank
Burlington—Farmers & Merchants Savings Bank
Bussey—State Bank of Bussey
Calamus—Farmers Savings Bank
Carroll—Carroll County State Bank
Cascade—Cascade State Bank
Chariton—State Savings Bank
Charles City—Citizens National Bank
Charles City—Commercial National Bank
Coon Rapids—Iowa Savings Bank
Danville—Danville State Savings Bank
Davenport—Union Savings Bank & Trust of Davenport__ _
Des Moines—Valley National Bank
De Witt—Farmers Sz Citizens Savings Bank
Dows—Farmers State Bank
Dumont—State Bank of Dumont
Dyersville—Dyersville National Bank
Elgin—Elgin State Bank
Fort Madison—Santa Fe Avenue Savings Bank
Grand Mound—Union Savings Bank.
Hartford—Hartford Savings Bank
Hartley—Security Savings Bank
Hedrick—Hedrick Savings Bank
Linn Grove—First State Bank
Amount
Authorized.
$45,000.00
*25,000.00
*12,000.00
25,000.00
2,000.00
*100,000.00
*7.000.00
*15,000.00
30,000.00
5,000.00
14,983.18
*7,000.00
1,000.00
10,000.00
12,000.00
25,000.00
20.000.00
36,000.00
9,700.00
7.000.00
50,000.00
6,500.00
*15,000.00
14,500.00
5.000.00
*371,612.38
*35,000.00
15,000.00
65,000.00
15,000.00
*60,000.00
9,369.25
*65,000.00
35,000.00
35,000.00
19,250.00
*25,000.00
2,000.00
14,570.00
35,000.00
*20,000.00
7,500.00
60,000.00
15,000.00
36,500.00
41,000.00
*62.000.00
*20,000.00
*25000.00
*7.000.00
*8,000.00
35,500.00
*45,000.00
20,000.00
*18,000.00
90,000.01)
30,000.00
76.000.00
139,000.00
15.000.00
*21,000.00
*65,000.00
*21 000.00
*80,000.00
*2,000.013
21,995.00
12,000.00
5,500.00
*140,000.00
22,000.013
25,435.70
413,892.34
*22,000.00
30,000.00
22,000.00
418,000.00
20,000.00
25,000.00
*67,500.00
*8,000.00
8,500.00
44,926.00
18400.00
*65,000.00
265,000.00
*57,500.00
18,000.00
30,000.00
6,000.00
13,000.00
14,000.00
*200,000.00
*40,000.00
49,000.00
21,000.00
*17,000.00
*140,000.00
*45,000.00
37.500.00
*44,000.00
40,000.00
30,000.00
10,000.00
695,000.00
150,000.00
70,000.01)
25,000.00
*25,00100
*40,000.00
38,000.00
28,000.00
39,000.00
*28,500.00
67,000.00
*90,000.00
26,000.00
Volume 135
Financial Chronicle
Amount
Authorized.
*$92.000.00
9.000.00
25,000.00
20,000.00
22,500.00
35,000.00
60,000.00
*8,000.00
6,000.00
*30,000.00
30.000.00
15,000.00
*25,000.00
5.000.00
*17,000.00
350.000.00
25.000.00
6.000.00
*40,000.00
*40,000.00
27.000.00
13,000.00
14.000.00
18,000.00
City and Name—
Manson—Calhoun County State Bank of Manson
Maxvrell—Farmers State Bank
McGregor—State Bank of McGregor
Melvin—Melvin Savings Bank
Monroe--Monroe State Bank
Montour—First National Bank
Nashua—First Nashua State Bank
Newell—First National Bank of Newell
New Virginia—Citizens Savings Bank
Pisgah—Fisgah Savings Bank
Plainfield—Farmers State Bank
Rockford—First State Bank
St. Charles—St. Charles Savings Bank
Salem—Farmers Savings Bank
Sioux Centre—Sioux Centre State Bank
Sioux City—Woodbury County Savings Bank
Spragueville—Farmers Savings Bank
Toeterville—Union Savings Bank
Traer--Farmers Savings Bank
Treynor—Treynor State Bank
Victor—Farmers Savings Bank of Victor
Waterville--Farmers and Merchants Savings Bank
Winfield—Winfield State Bank
Zwingle--Security Savings Bank
KANSAS.
Courtland—Swedish American State Bank
10,115.45
Galva—Farmers State Bank
4,943.44
Kansas City—Fidelity State Bank
*29,138.33
Nickerson—State Bank
9,783.79
Scandia—Bank of Scandia
13,072.04
Stafford—First State Bank
10,671.50
Welda—Welda State Bank
7,074.58
KENTUCKY.
Bardwell--Bardwell Deposit Bank
*30,000.00
Barlow—Bank of Barlow
2,500.00
Central City—First National Bank
30,000.00
--Corinth
Deposit Bank
Corinth
5,000.00
Elkton—Bank of Elkton
30,000.00
Elkton—Farmers & Merchants Bank of Elkton
12,500.00
Florence—Florence Deposit Bank
79,500.00
Hazard—First National Bank in Hazard (Receiver)(5%)
72,000.00
Millersburg—Farmers-Exchange Bank
55,000.00
Mount Washington—Peoples Bank
6,000.00
Nicholasville--Farmers Exchange Bank
17,500.00
Owensboro—National Deposit Bank
40,000.00
Port Royal—Citizens Bank of Port Royal
17,000.00
Salt Lick—Salt Lick Deposit Bank
6,000.00
Somerset—Farmers National Bank
*50,000.00
Taylorsville--Peoples Bank of Taylorsville
5,000.00
Trenton—Planters Bank of Trenton
*11,000.00
Wilmore--Wilmore Deposit Bank
10,279.50
LOUISIANA.
Amite City—Amite Bank & Trust Co
*42,000.00
Bunkle--Avoyelles Trust & Savings Bank
*41,000.00
Bunkie—The Merchants & Planters Bank
130.000.00
Columbia--Caldwell Bank & Trust Co
45,000.00
Denham Springs—Livingston Bank
22,980.04
Houma--Citizens Bank & Trust Co
28,000.00
Lake Charles—Calcasieu National Bank in Lake Charles_ _ _
*40,000.00
Leesville—First State Bank & Trust Co
80.000.00
Metairie Ridge—Metairie Bank
50,000.00
Newellton—Tensas State Bank
22,500.00
New Orleans—Continental Bank & Trust Co
•160.000.00
Norco—St. Charles Bank & Trust Co
*40,000.00
Olla—011a State Bank
25,000.00
Paincourtville—The Bank of Paincourtville
18,725.00
St. Martinville—Commercial Bank of St. Martinville
40.000.00
Saline
Saline—Bank of
2,500.00
West Monroe—West Monroe State Bank
97.500.00
Winnfield—Bank of Winnfield
65,000.00
MAINE.
Ashland—Ashland Trust Co
21,500.00
Bangor—Merrill Trust Co
*206,000.00
Caribou—Aroostook Trust Co
*50,000.00
Caribou—The Caribou National Bank
20,000.00
Limestone—Limestone Trust Co
22,500.00
Mars Hill—Mars Hill Trust Co
*30,006.00
Portland—Casco Mercantile Trust Co
*161,000.00
Van Buren—Van Buren Trust Co
*6.000.00
Washburn—Washburn Trust Co
13,600.00
MARYLAND.
Baltimore--Mercantile Bank of Baltimore
*475,000.00
Frostburg—Citizens National Bank of Frostburg
23,500.00
Oxford—Oxford Bank
*50,000.00
Towson—Baltimore County Bank
30,000.00
MICHIGAN.
Bannister—State Savings Bank
5,100.00
Birmingham—First National Bank of Birmingham
93,000.00
Brighton—Brighton State Bank
*20,000.00
Byron Center—Byron Center State Bank
*30,000.00
Detroit—Union Guardian Trust Co
*2,767,000.00
Ecorse—Peoples Wayne County Bank of Ecorse
193,000.00
Flint—First National Bank & Trust Co. at Flint
*177, 00.00
Flint—Genesee County Savings Bank
*387.000.000
Freeland—Freeland State Bank
13,500.00
Grand Rapids—Union Bank of Michigan
*45.000.00
Lake Odessa—Farmers & Merchants Bank
*20,000.00
Lake Orion—Orion State Bank
10,000.00
Litchfield—Litchfield State Savings Bank
6,000.00
Millington—Millington National Bank
*10,000.00
Mount Clemens—Mount Clemens Savings Bank
*35,104.48
Muskegon Heights—First State Savings Bank
*87,500.00
Negaunee—The Negaunee State Bank
17,000.00
Port Austin—Port Austin State Bank
10.000.00
Port Huron—United States Savings Bank
35,000.00
Republic--State Bank of Republic
*9,000.00
Royal Oak—First Nat. Bank of Royal Oak (receiver)(5%)
*45,000.00
Saginaw—Bank of Saginaw
*385,000.00
Woodland—Woodland Btate Bank
30,000.00
MINNESOTA.
Aurora—State Bank of Aurora
37.500.00
Beroun—State Bank of Beroun
9,000.00
Bigelow—State Bank of Bigelow
9,500.00
Carver—First State Bank
8.500.00
Cold Spring—State Bank of Cold Spring
5,000.00
Columbia Heights—Columbia National Bank of Columbia
Heights (receiver)(5%)
*19.000.00
Faribault--Citizens National Bank
*60.000.00
Foley—State Bank of Foley
7.000.00
Guthrie—Farmers State Bank of Guthrie, Inc
4,000.00
Hammond—Security State Bank
10.060.00
Harmony—Peoples State Bank
22,000.00
Ilayward—Farmers State Bank of Hayward
12.500.00
Holdingford—Security State Bank
5.000.00
Jasper—Farmers State Bank of Jasper
3,000.00
Kenyon—State Bank of Kenyon
29,800.00
Lafayette—Farmers State Bank
15,000.00
Lake Benton—Farmers State Bank
30,000.00
Madelia—Farmers State Bank of Madelia, Inc
10.000.00
Minneapolis—Camden Park State Bank of Minneapolis—
24.900.00
Pine Island—Security State Bank of Pine Island
16,000.00
Prior Lake—Prior Lake State Bank
6,500.00
Randall—Randall State Bank
10.000.00
St. James—Citizens & Security Nat. Bank of St. James— _
8,000.00
St. Paul—East Side State Bank of St. Paul
51.000.00
Storden—FIrst State Bank of Storden
10,000.00
Taunton—State Bank of Taunton
9.000.00
Tyler—First National Bank of Tyler (receiver)(5%)
42,000.00
Willmar—Bank of Willmar
9,930.00
3463
MISSISSIPPI.
Amount
City and NameAuthorized.
Greenwood—Greenwood Savings Bank (receiver) (5%)___
*33,759.00
Ellisville—Merchants & Manufacturers Bank
*48.000.00
Holly Springs—First State Bank
20,000.00
Lake—Bank of Lake
*17.000.00
Magee—State Guaranty Bank
*47,500.00
McComb City—First National Bank of McComb City
*20,000.00
McComb City—Mechanics State Bank
*20,000.00
Mendenhall—Peoples Bank
6,000.00
Sardis--Panola County Bank
28.000.00
MISSOURI.
Bland—Farmers & Traders Bank of Bland
2,200.00
Chamois—Peoples Bank of Chamois
*30.000.00
Chillicothe—First Nat. Bank of Chillicothe (receiver)(5%)
*35,000.00
El Dorado Springs—Bank of Eldorado Springs
*4.000.00
Leonard—Farmers Bank of Leonard
5,000.00
Luray—Central Bank of Luray
1.500.00
Maplewood—Bank of Maplewood & Trust Co
*100,000.00
Maplewood—Citizens National Bank of Maplewood
57,000.00
Marceline—Marceline State Bank
2,500.00
St. Louis—Hodiamont Bank
15,000.00
St. Louis—Vandeventer Nat. Bank of St. L.(receiver)(5%)
*187.300.60
Sedalia—The Sedalia National Bank (receiver)(5%)
*30.300.00
Sumner—Sumner Exchange Bank
11.600.00
Waynesville--Waynesville State Bank
9,000.00
MONTANA.
Kevin—Kevin State Bank
*7,000.00
Cascade--Stockmen's Bank
6.930.00
NEBRASKA.
Bassett—Corn'ercial Bank
*15,000.00
Callaway—Farmers State Bank
*8,000.00
Carroll—Carroll State Bank
9,786.38
Carroll—Carroll State Bank
*10.000.00
Chappell—Chappell State Bank
18,000.00
Clarkson—Farmers State Bank
14,000.00
Creighton—Creighton National Bank (receiver)(5%)
7,000.00
Curtis—Security State Bank
3,000.00
Davey—Farmers State Bank
4,635.90
Eagle—Bank of Eagle
5,300.00
Garland—Germantown State Bank
5,840.00
Homer--Security State Bank
9.500.00
Howe—Bank of Howe
3,300.00
Kenesaw—First State Bank
5.300.00
Murdock—Bank of Murdock
*10,020.00
Primrose—Farmers State Bank
8,000.00
Rogers—Bank of Rogers
7.610.00
Schuyler—Banking House of F. Folda
16.000.00
Scotia—Bank of Scotia
7.500.00
Union—Bank of Union
8.428.46
Winside—Citizens State Bank
13.700.00
Wausa—Commercial State Bank
8.000.00
NEVADA.
Elko—Henderson Banking Co
11,000.00
Elko—Henderson Banking Co
4,821.94
NEW HAMPSHIRE.
Berlin—Berlin National Bank
*100.000.00
NEW JERSEY.
Garfield—First National Bank of Garfield
200.000.00
Haddonfield—Haddonfield National Bank
*125,000.00
Haddonfield—Haddonfield National Bank
21,500.00
Matawan—Matawan Bank
*100,000.00
Ocean Grove—Ocean Grove National Bank (Receiver(5%)
*145.000.00
Perth Amboy—The Raritan Trust Co. of Perth Amboy
22.500.00
Wildwood—Fidelity Trust Co
*116,000.00
NEW MEXICO.
Clayton—Farmers & Stockmen's Bank of Clayton
*20,000.00
Clovis—Citizens Bank of Clovis
*14,000.00
Mountainair—First State Bank
*10.000.00
Tucumcari—American National Bank of Tucumcari
12,800.00
Tucumcari—First National Bank
*25,000.00
NEW YORK.
Alexandria Bay—First Nat'l Bank of the Thousand Islands
*100.000.00
ArkPort--Arkport State Bank
*30,000.00
Chittenango—State Bank of Chittenango
*18,000.00
Genoa—First National Bank of Genoa (Receiver)(5%)__ _
11,500.00
Holley—State Exchange Bank
50.000.00
Mamaroneck—First National Bank of Mamaroneck
*200,000.00
Mechanicville—First National Bank of Mechanicville
(Receiver)(5%)
*109.500.00
Mechanicville--The Manufacturers National Bank of
Mechanicville (Receiver)(5%)
*397.000.00
Rensselaer—National Bank of Rensselaer (Receiver) (5%)
*266,000.00
Ripley--First National Bank of Ripley (Receiver)
*44.500.00
Valley Stream—Bank of Valley Stream
*90,000.00
Whitehall—National Bank of Whitehall (Receiver)(5%)_ _
*109,000.00
NORTH CAROLINA.
Durham—First National Bank of Durham
*350,000.00
Gatesville—Bank of Gates
*10.000.00
Greensboro—United Bank & Trust Co
300,000.00
Pinehurst—Bank of Pinehurst
*30,100.00
Rocky Mount—Peoples Bank & Trust Co
30,000.00
NORTH DAKOTA.
Ashley Ashley State Bank
18,837.15
Buxton—First National Bank of Buxton
*25,000.00
Brocket—Farmers & Merchants Bank
*9,500.00
Underwood—First Security Bank
11,000.00
Washburn—Farmers Security Bank
8,000.00
OHIO.
Alliance—The Peoples Bank Co. (Receiver) (5%)
*60.000.00
Anna—The Farmers & Merchants Bank Co
•15,000.00
Bergholz—The Bergholz State Bank Co
24,500.00
Bridgeport—Bridgeport National Bank
67,500.00
Carrollton—First National Bank in Carrollton
40,000.00
Cleveland—North American Trust Co
29,000.00
Delphos—Commercial Bank
*77,500.00
Deshler—The Deshler State Bank
*35.500.00
Fostoria—The Union National Bank of Fostoria
112,500.00
Franklin—Franklin National Bank
91.000.00
Freeport—The Freeport State Bank
25.000.00
Girard—The Trumbull Banking Co. (Receiver)(5%)
*25.000.00
Greenville—Second National Bank
13,000.00
Hamilton—The Hamilton Dime Savings Bank Co
92.000.00
Kent—The City Bank
*70,500.00
Kinsman—The Kinsman Banking Co. (Receiver)
*23.500.00
Lorain—The Peoples Savings Bank (re-paid in full)
38.000.00
Luckey—The Exchange Bank of Luckey
17,000.00
Mt. Healthy—The First National Bank of Mt. Healthy__
_
77,500.00
Nils—Nils Trust Co. (Receiver) (5%)
*214,000.00
Ottoville—The Ottoville Bank Co
12.500.00
Waynesburg—The Waynesburg Bank
15,000.00
West Farmington—The Farmers Banking Co.
(Receiver)
(5%)
*12,000.00
Zanesville—The State Security Bank
(Receiver) 5%).......
420.000.00
OKLAHOMA,
Bixby—First National Bank (Receiver)
(5%)
*6,000.00
Boise City—Citizens Home Bank
4,834.00
Cache—Bank of Cache
*7,489.50
Capron—Bank of Capron
10,273.25
Fairfax—First National Bank (Receiver)
(5%)
*30.000.00
Goods-ell—First State Bank
3.758.00
Hillsdale—Bank of Hillsdale
3,344.20
Hopeton—Hopeton State Bank
*10.074.60
Lahoma—First Bank
7.150.00
Lamont—Citizens Bank
10,205.70
Lovell—First State Bank
2.047.50
Quinlan—Quinlan State Bank
8,151.05
Financial Chronicle
3464
OREGON.
City and Name—
Carlton—Carlton State and Savings Bank
Fossil—Steiwer and Carpenter Bank
Harrisburg—First National Bank
La Grande—First National Bank
Lebanon—Lebanon National Bank
St. Helens—Columbia County Bank
The Dailes—First National Bank
The DaIles—First National Bank
The Dalies—First National Bank
Toledo—First National Bank
Troutdale—Troutdale State Bank
PENNSYLVANIA.
Altoona—Altoona Trust Co
Bridgeport—Bridgeport National Bank
Cambridge Springs—Springs-First National Bank
Carbondale—Pioneer Dime Bank
Conneaut Lake—First National Bank
Coraopolis—Coraopolis National Bank
Donora—First National Bank
Enola—Peoples Bank of Enola
Farrel—Colonial Trust Co
Glen Campbell—First National Bank (receiver)(5%)
Harrisburg—Allison-East End Trust Co
Harrisburg—Commonwealth Trust Co
Hollidaysburg—Hollidt.--sburg Trust Co
Indiana—Farmers Bank
'
& Trust Co
Jersey Shore—Jersey Shore Trust Co
Johnstown—Dale National Bank
Johnstown—First National Bank
Lebanon—Farmers Trust Co
Mahaffey—Mahaffey National Bank (Receiver)(5%).
Mahoney City—American Banking Trust Co
Mahanoy City—Union National Bank
Masontown—First National Bank (Receiver)(5%)
McKees Rocks—Chartiers Trust Co
McKees Rocks—First National Bank
Meadville—Crawford County Trust Co
Monesson—Peoples National Bank & Trust Co
Mount Carmel—Guarantee Trust & Safe Deposit Co
Mount Pleasant—Citizens Savings & Trust Co
Old Forge—Old Forge Discount & Deposit Bank
Pitcairn—First National Bank (Receiver)(57)
Pitcairn—Peoples National Bank (Receiver)(5%)
Pittsburgh—Allegheny Trust Co
Pittsburgh—Bank of America Trust Co
PlumyWe—First National Bank
Portage—First National Bank (Receiver)(5%)
Pottsville—Union Bank & Trust Co
Reading—Berks County Trust Co
Reading—Penn National Bank & Trust Co
Rockwood—First National Bank
Scranton—North Scranton Bank & Trust Co
Scranton—Pennsylvania Trust Co
Scranton—Union National Bank
Sharpsburg—Farmers & Mechanics Bank
Somerfield—First National Bank (Receiver) 5%)
Trafford—First National Bank (Receiver) (54,)
Turtle Creek—Turtle Creek Savings & Trust o
Wampum—First National Bank
West Chester—Chester County Trust Co
Wilkes-Barre—Hanover Bank & Trust Co
Amount
Authorized.
$12,000.00
*14.000.00
*12,000.00
90,000.00
*65,000.00
*11,000.00
50,000.00
15,000.00
27,500.00
7,000.00
2,000.00
99,000.00
86.000.00
20,500.00
38,000.00
*17.000.00
57,000.00
38,500.00
16.000.00
19,500.00
*45.000.00
200.000.00
78,000.00
24,000.00
154,000.00
*60,000.00
10,200.00
125,000.00
90,000.00
*68.000.00
95.000.00
235.000.00
*95,000.00
*25,000.00
56,500.00
81,000.00
*90,500.00
56,760.00
105,500.00
65,000.00
*160,000.00
*50,000.00
200.000.00
76,000.00
9,000.00
*42,000.00
70,000.00
500,000.00
110,000.00
*42,500.00
400.000.00
132,000.00
183,320.55
75,000.00
46,000.00
*40,000.00
29,500.00
50,000.00
27,063.40
35,000.00
SOUTH CAROLINA.
Beaufort—Peoples Bank
Columbia—Central Union Bank of South Carolina
*49,602.59
75,000.00
SOUTH DAKOTA.
Alcester—State Bank
Bank
Canton—First National
Cresbard—Bank of Creehard
Fairview—Fairview State Bank
Harrisburg -Harrisburg State Bank
Hatland—First State Bank
Parkston—Hutchinson County Bank
Stockholm—Stockholm State Bank
Wentworth—Wentworth Bank
Wolsey—First State Bank
11.000.00
8,000.00
9,000.00
12,500.00
*14,000.00
5,000.00
10,000.00
19,000.00
10,000.00
15,000.00
TENNESSEE.
Brownsville—First State Bank
Lexington—Central State Bank
Liberty—Liberty Savings Bank
McMinnville--City Bank & Trust Co
Milan—Milan Banking Co
Portland—Farmers Bank
Rockwood—First National Bank
Tiptonville—First State Bank & Trust Co
Vonore—Bank of Vonore
Winchester—Home Bank & Trust Co
TEXAS.
Channing—First National Bank of Charming
Del Rio—Del Rio National Bank
Dilley—Dilley State Bank
Edinburg—American State Bank & Trust Co
Hale Centre—First National Bank
Happy—First State Bank
Hooks—Security State Bank
Howe—Farmers National Bank (Receiver)(5%)
Kress—Farmers State Bank
Loclmey—First National Bank
Lyford—First State Bank
Mc Allen—McAllen State Bank
Mercedes—First National Bank
Pearsall—Pearsall National Bank
Rockport—First National Bank
San Antonio—Commonwealth Bank & Trust Co
Vega—First State Bank
Weslaco—Security State Bank
UTAH.
American Fork—Peoples State Bank
Kaysville—Barnes Banking Co
Lewiston—Lewiston State Bank
Logan—Cache Valley Banking Co
Moab—First National Bank
Roosevelt—Roosevelt State Bank
VERMONT.
Bennington—Bennington County Savings Bank
Johnsbury—Passumpsic
Savings
Bank
St.
VIRGINIA.
•
Bloxom—Peoples Bank 01 Bloxom
Clifton Forge—Clifton Forge National Bank
Lawrenceville--Brunswick Bank & Trust Co
New Church—Farmers& Merchants Bank
Richmond—Broadway Bank & Trust Co
Winchester—Farmers & Merchants Nat.Bk.& Tr.Co
Winchester—Farmers & Merchants Nat. Bk.& Tr. Co
WASHINGTON.
Camas—Citizens State Bank
Chelan—Miners & Merchants Bank
Colfax—Farmers National Bank
Kelso--Cowlitz Valley Bank
Newport—Security State Bank of Newport
Olympia—Olympia National Bank (Receiver)(5%)
Seattle—West Seattle State Bank
Sumas--Bank of Sumas
White Blufs—First Bank Bank
Winthrop--Farmers State
Nov. 19 1932
WEST VIRGINIA.
City and Name—
Anawalt—First National Bank (Receiver)(5%)
Bluefield—Flat Top National Bank
Charlestown—Jefferson Bank & Trust Co
Chester—First National Bank
Hamlin—Farmers & Merchants Bank
Harman--Stockmans Bank
Logan—First National Bank
McMechen—Bank of McMechen
Princeton—Princeton Bank & Trust Co
WISCONSIN.
Alma—American Bank
Bangor—Farmers State Bank
Black River Falls—First National Bank
Camp Douglas—Bank of Camp Douglas
Chilton—Commercial Bank
Clinton—Citizens State Bank
Cochrane—Farmers and Merchants Bank
Colfax—Peoples State Bank
De Forest—Dank of De Forest
Delavan—Wisconsin State Bank
Eland—Eland State Bank
Emerald—State Bank
Ettrick—Ettrick State Bank
Gays Mills—Bank of Gays Mills
Glen Haven—Glen Haven Bank
Grantsburg—First Bank
Hurley—Iron Exchange Bank
Independence—Farmers and Merchants Bank
Iron Ridge—Commercial State Bank
Kiel—State Bank
Lake Geneva—First National Bank
Manawa—First National Bank
Markesan—Farmers State Bank
Mayville—State Bank
Mindoro—Bank of Mindoro
Montford—Citizens State Bank
Morrisonville--Morrisonville State Bank
Mount Calvary—Mount Calvary State Bank
Muscoda—Muscoda State Bank
New Digging—Farmers and Miners Bank
New Holstein—Peoples State Bank
Rice Lake—First National Bank
River Falls—Farmers and Merchants State Bank
Seneca—Farmers and Merchants State Bank
Shawano—First National Bank
Sturgeon Bay—Bank of Sturgeon Bay
Unity—Unity State Bank
Vesper—State Bank
Viola—Farmers State Bank
Waumandee—Waumandee State Bank
Waunakee—Waunakee State Bank
Amount
Authorized.
$15,000.00
30,000.00
20,000.00
*3.000.00
4,000.00
8,000.00
100,000.00
25,500.00
*20,000.00
40,000.00
50,000.00
*35,000.00
*25,000.00
*50.000.00
25,000.00
19,000.00
15,000.00
*19.000.00
15,000.00
*18.000.00
8,000.00
12,000.00
*20,000.00
13,000.00
*35,000.00
20.000.00
*22,000.00
7,500.00
*23,000.00
*85.000.00
30,000.00
40,000.00
30,000.00
*30,000.00
32,000.00
*19,000.00
*33,000.00
*27,000.00
*6,000.00
*13,000.00
155,000.00
16,000.00
*26,000.00
*85000.00
*200,000.00
*9,000.00
*14.000.00
*38,000.00
25,000.00
12,500.00
WYOMING.
Rock Springs North Side State Bank
Rock Springs—North Side State Bank
*21,000.00
20,800.00
BUILDING AND LOAN ASSOCIATIONS.
ALABAMA.
Anniston—Anniston Home Building & Loan Association
*11,000.00
ARKANSAS.
Little Rock—Union Savings Building & Loan Association
CALIFORNIA.
Los Angeles—Insurance Plan Building & Loan Association
San Francisco—Standard Building & Loan Association
Torrance—Torrance Mutual Building & Loan Association
CONNECTICUT.
Danielson—The Danielson Building & Loan Association
ILLINOIS.
Chicago—Bohemia Binning & Loan Association
Chicago—Central Building & Loan Assn. of Chicago
Chicago—Slovan Building & Loan Association
Chicago—Triglav Building & Loan Association
Chicago—Vltava Building & Loan & Homestead Assn--Lawrenceville Invesm't & Loan Assn:
Lawrenceville—The
10,000.00
Wheaton—Home Building ez Loan Assn. of Wheaton
13,000 00
*5,000.00
INDIANA.
30.000.00
Indianapolis—Arsenal Building & Loan Association
35.000.00
Building Loan & Savings Association
Warsaw—Warsaw
10,000.00
IOWA.
54,000.00
*60,000.00
Algona Algona Building & Loan Association
4,500.00
Building
County
Loan & Savings Assn_
Des Moines—Polk
*45,000.00
Marshalltown—The Marshalltown Savings & Loan Assn
KENTUCKY.
10,000.00
Frankfort—The Capital Building & Loan Association_ _ _ _
*250,000.00
Newport—Clifton-Southgate Loan & Building Association
25,000.00
LOUISIANA.
20,000.00
27,500.00
New Orleans—Pelican Homestead Association
20.000.00
Homestead
New Orleans—Washington
Association
6,000.00
MARYLAND.
2,500.00
8,000.00
Kosciuszko
Permanent
Loan & Savings
Baltimore—The
5,000.00
Association of Baltimore City
2,000.00
MICHIGAN.
*25.000.00
20.000.00
Grand Rapids—The State Savings Association
23,061.21
NEW JERSY.
*7,500.00
Atlantic City—Economy Bldg. & Loan Assn. of All. City_
82,848.42
Building
& Loan Association
City—Ventnor
Atlantic
25,000.00
Avalon—Security Building Sz Loan Association
8,000.00
Bloomfield—Bloomfield Building & Loan Association
Carteret—Roosevelt Building & Loan Association
*53,000.00
Clementon—The Clementon Building & Loan AssOciation
21,380.00
of Camden County
14,000.00
__
Delanco--Delanco Building & Loan Assn. of
62,500.00
E. Orange_
East Orange—Fairway Bldg. & Loan Assn. ofDelanco_23,000.00
East Orange—Safeguard Building & Loan Association—
8,000.00
Elizabeth—The Building & Loan Assn. of Harmonta
Elizabeth—Columbia Building & Loan Assn. of Elizabeth..
Elizabeth—Crystal Bldg. & Loan Assn. of Elizabeth
40,000.00
Elizabeth—The Juniors Building & Loan Assn. of Elizabeth
800.000.00
Elizabeth—Lithuanian Building & Loan Assn. of the City
ofElizabeth_
iiidig -5ti-n-7Association
- of Yliiii-2.000.00Elizabeth—myrie
l-iiin
Building & Loan Association
Garfield—Ti-City
100,000.00
Consolidated Building & Loan Association
Harrison—The
25.000.00
of the Town of Harrison, N. J
*6.700.00
Hohokut3--Hohokus Building & Loan Association
*45,000.00
Building & Loan Assn. of Irvington
Irvington—Iroquois
*80,000.00
Jersey City—Jackson Building & Loan Association
85,000.00
Keansburg—The Keansburg 18u1IdIng & Loan Assn
Bldg. &
erch
of Camdena
Merchtville—Home
an
Assn.
L°
.&
t
anso:nn.Ass
of Ml
Merchantvllle—Pensauken Bldg.
°
5,000.00
Building & Loan AssociationEastern
Newark—Great
14,400.00
Newark—Jersey, Warschawer Building & Loan Man
39,780.00
Newark—John Marshall Bldg. & Loan Assn. of Newark._
3,300.00
Newark—O. K. Building & Loan Association
32,000.00
Opportunity Bldg. & Loan Assn. of Newark
Newark—The
125,000.00
Newark—Puritan Building & Loan Assn. of Newark
34,000.00
of the City of Passaic
Passaic—Peoples Bldg. & an Assn.
10,379.42
Paterson—Sunshine Building & Loan Association
6,000.00
& Loan Assn
Building
Amboy
Perth Amboy—North
1,950.00
99,057.03
94,000.00
55,000.00
10,000.00
30,000.00
17,000.00
20.000.00
*80,000.00
*17,000.00
*23,000.00
30,000.00
8,764.00
150,000.00
38,000.00
20,000.00
15,000.00
*100,000.00
100,000.00
*50,000.00
*60,000.00
*40,000.00
175,000.00
80,000.00
50.000.00
100,000.00
*25,000.00
100,000.00
*36,000.00
60,000.00
40.000.00
*40,000.00
*20,000.00
*150,000.00
*115,000.00
*50.000.00
75,000.00
*80,000.00
*17,000.00
35,000.00
*80,000.00
50,000.00
*50,000.00
*46,000.00
40,000.00
*100,000.00
35,000.00
*40,000.00
30,000.00
*56,000.00
*29,000.00
100,000.00
138.000.00
*250.000.00
125,0000.0
86.500.00
Volume 135
City and Name—
Piscatawaytown—Piseatawaytovrn Bldg. & Loan Assn_ __ _
Ridgelleld Park—Park Bldg. & Loan Assn. of Ridgefield
Park
West New York—West New York Bldg. & Loan Assn_
Westwood—The Westwood Building & Loan Association
Frankfort—Frankfort Savings & Loan Association
New Rochelle—New Rochelle Cooperative Building &
Loan Association
NORTH CAROLINA.
Candor—Candor Building & Loan Association
Concord—Citizens Building & Loan Association
Oxford—Oxford Building & Loan Association
OHIO.
Cincinnati—Linwood Savings & Loan Co
Co
Loan
&
Savings
Cleveland—City
Cleveland—Lincoln Heights Savings & Loan Co
Cleveland—West Side Savings & Loan Association
Dayton—Fidelity Building Association of Dayton
Dayton—Miami Savings & Loan Co
Findlay—Findlay Savings & Loan Co
Greenville—Greenville Building Co
Hamilton—Central Building & Loan Association Co___
Hamilton—Columbia Savings & Loan Co
Ironton—Home Building & Loan Co
South Euclid—South Euclid Savings & Loan Co
Tiffin—Seneca County Building & Loan Co
PENNSYLVANIA.
Beaver Falls—The Peoples Building and Loan Association
Carnegie—Eureka Savings and Loan Assdciation
Franklin—Franklin Home Building and Loan Association
Lansdale—Honor Building and Loan Association
Oakdale—Oakdale Savings and Loan Association
ou City—Home Savings and Loan Association of Oil City
011 City—PeoPles Building & Loan Assn. of Oil City
SOUTH CAROLINA.
Clinton—Clinton Building and Loan Association
Fort Mill—The Perpetual Building and Loan Assn
SOUTH DAKOTA.
Yankton—'Yankton Building and Loan Association
TENNESSEE.
Fayetteville--Home Building and Loan Association
TEXAS.
Texarkana—Gato City Building & Loan Association
Harlingon—Rio Grande Building & Loan Association
Wharton—Wharton Building & Loan Association
WISCONSIN.
Cudahy—City Savings & Loan Association
Cudahy—First Slovak National Loan & Building Association of Cudahy
Madison—Northwestern Savings Building & Loan Assn
Milwaukee—Advance Savings Building & Loan Association
Milwaukee—East Side Mutual Building & Loan Association
mnwaukee—Equitable Savings Building & Loan Assn
Milwaukee—Guardian Savings & Loan Association
Milwaukee—Jackson Building & Loan Association
Milwaukee—Lincoln Avenue Loan & Building Association
Milwaukee—Metropolitan Building & Loan Association
Milwaukee—The Northwestern Mutual Building & Loan
Association
Milwaukee—United Building & Loan Association
Milwaukee—Slovak Building & Loan Association
Milwaukee—Sterling Savings Loan & Building Association..
Milwaukee—The West Side Building & Loan Association—
Amount
Authorized.
n74.600.00
*100.000.00
*65.000.00
75,000.00
25.000.00
149,732.65
8,000.00
78,983.00
19,000.00
*25.000.00
315,000.00
50,000.00
*100,000.00
*500.000.00
200,000.00
60,000.00
30.000.00
25,000.00
25,000.00
*100,000.00
25,000.00
25,000.00
65,000.00
33,000.00
0
80.000.0
*25,000.00
29,000.00
*131,000.00
*75,000.00
*60.000.00
4,919.00
24,702.50
15,000.00
60,000.00
6.000.00
*10,000.00
16,000.00
30.000.00
*20.000.00
25.000 00
40,000.00
*27,000.00
*70.000.00
*41.000.00
30.000.00
95.000.00
*125,000.00
*140.000.00
*24.000.00
230.000.00
53.000.00
INSURANCE COMPANIES.
ALABAMA.
Birmingham-American Life Insurance Co.of Alabama
ILLINOIS.
Chicago—The Great Northern Life Insurance Co
Chicago—Illinois Life Insurance Co
Chicago—Nat. Life Ins. Co. of the U.S.of America
Chicago—State Life of Illinois
INDIANA.
Indianapolis—The State Life Insurance Co
South Bend—Conservative Life Insurance Co.of America-IOWA.
Des Moines—Farmers Union Mutual Life Insurance CoLOUISIANA.
New Orleans—Liberty Industrial Life Insurance Co
MARYLAND.
Baltimore—Maryland Casualty Co
MICHIGAN.
Detroit—Michigan Life Insurance Co
PENNSYLVANIA.
pittsburgh—Standard Life Insurance Co.of America
TEXAS.
Houston—National Standard Life Insurance Co
MORTGAGE LOAN COMPANIES.
ALABAMA.
Birmingham—Jamison & Co., Inc
Birmingham—Mortgage Co. of Alabama
ILLINOIS.
Chicago—Fort Dearborn Mtg. Loan Co
MARYLAND.
Salisbury—Del-Mar-Va. Mortgage Co
NEW JERSEY.
Newark—United States Mtge.& Title Guar. Co.of N.J
PENNSYLVANIA.
Philadelphia—Philadelphia Co.for Guar. Mtga
TEXAS.
Amarillo--Southern States Mortgage Co
JOINT STOCK LAND BANKS.
COLORADO.
Denver—Denver Joint Stock Land Bank of Denver
NEBRASKA.
Lincoln—Fremont Joint Stock Land Bank of Fremont
Lincoln—Lincoln Joint Stock Land Bank of Lincoln
*25.000.00
190,000.00
500.000.00
300,000.00
9,500.00
490,000.00
125.000.00
90,000.00
20,000.00
1.250.000.00
200,000.00
90.500.00
*80,000.00
WASHINGTON.
City and Name—
Wenatchee—Columbia Agr. Credit Corp
Wenatchee—Columbia Agr. Credit Corp
Wenatchee--Columbla Agr. Credit Corp
Wenatchee—Columbia Agr. Credit Corp
Wenatchee—Columbia Agr. Credit Corp
Wenatchee--Columbia Agr. Credit Corp
Wenatchee—Columbia Agr. Credit Corp
Wenatchee—Wenatchee Fruit Credit Corp
Wenatchee—Wenatchee Fruit Credit Corp
Wenatchee—Wenatchee Fruit Credit Corp
Yakima—Amen can Agr. Credit Corp
Yakima—Anutocan Agr. Credit Corp
Yakima—American Agr. Credit Corp
Yakima—Yakima Credit Corp
Yakima—Yakima Credit Corp
Yakima—Yakima Credit Corp
Yakima—Yakima Credit Corp
LIVESTOCK CREDIT CORPORATIONS.
IDAHO.
Boise—Loan Co. of Idaho
Boise—Loan Co. of Idaho
MONTANA.
Dillon—Livestock Industries, Inc
Inc
Industries,
Dillon—Livestock
Havre—Northern Livestock Loan Co
Havre—Northern Livestock Loan Co
Havre—Northern Livestock Loan Co
NEW MEXICO.
Albuquerque—New Mexico Credit Corp
OREGON.
Baker—The Eastern Oregon Credit Co
Baker—The Eastern Oregon Credit Co
TEXAS.
San Angelo—Wool Growers Central Storage Co
UTAH.
Salt Lake City—Bankers Livestock Loan Co
Salt Lake City—Bankers Livestock Loan Co
Salt Lake City—Bankers Livestock Loan Co
Salt Lake City—Bankers Livestock Loan Co
WYOMING.
Cheyenne—Wyoming Discount Corp
Cheyenne—Wyoming Discount Corp
Cheyenne—Wyoming Discount Corp
Cheyenne—Wyoming Discount Corp
Cheyenne—Wyoming Discount Corp
Cheyenne—Wyoming Discount Corp
Cheyenne—Wyoming Discount Corp
30,000.00
60,000.00
4.35co90o.90
400,000.00
*35,000.00
*260,000.00
100,000.00
*216,000.00
2.835.00
3,214.00
19,302.00
*35,000.00
10,307.50
5.901.00
8,950.00
6.000.00
63,700.00
140,000.00
11.000.00
32.700.00
34.700.00
*72.600.00
*27,900.00
71,900.00
*74,000.00
108,900.00
133,683.06
43,790.00
*38,650.00
*28.000.00
*20.480.00
19,200.00
32.425.00
55.000 00
30,500.00
47.120.00
$64,217,500.50
Total
TABLE 2.
LOANS WITHDRAWN OR CANCELED.
Statement of loans authorized during August 1932. which were withdrawn
or canceled inlull from Sept. 22 to Sept. 30 inclusive, no part of the proceeds
ng s
•
Amount
BANKS AND TRUST COMPANIES.
Withdrawn
or Canceled.
Name.
City.
MISSISSIPPI.
$42.500.00
Kosciusko—Guaranty Bank & Trust Co
OREGON.
42,500.00
Gresham—First State Bank
$85,000
Total
TABLE 3.
Statement of loans authorized during August 1932 which were withdrawn
22
Sept.
to Sept. 30 1932 inclusive. (The amounts
or canceled in part from
given are the amounts withdrawn or canceled.)
BANKS AND TRUST COMPANIES.
*80,000.00
5,000.00
Amount
Authorized.
*$20,000.00
*129,204.74
9,850.00
3.520.35
10,000.00
81,855.15
55.873.55
*33,377.57
24,648.70
24,816.25
7.605.90
18.615.94
*6,609.65
*37.359.40
62.638.01
13,490.00
56.104.33
RAILROADS.
Amt. Authorized.
or RR.(receiver)
Ann Arbor
n1 8.620.0 *500.000.00
Central RR. Co. of New Jersey
*60,000.00
Columbus & Greenville Ry. Co
.3.850.000.00
Denver & Rio Grande Western RR. Co
Georgia & Florida RR.(W. V. Griffin and H. W.Purvis,
*354.721.00
receivers)
260,000.00
Gulf Mobile & Northern RR. Co
*99,200.00
Missouri Southern RR. Co
6,800.000.00
New York Chicago & St. Louis RR. Co
*2,000,000.00
Pennsylvania RR. Co.(5%)
7,251,000.00
Southern Ry. Co
(Except where indicated the rate of interest is 6%.)
SUMMARY OF TABLE 1.
$28,981,374.22
Banks and trust companies (including receivers)
7.233.258.18
Building and loan associations
3,370,000.00
Insurance companies
960.000.00
Mortgage loan companies
576,000.00
Joint stock land banks
702,129.04
Agricultural credit corporations
1,101.198.06
Livestock credit corporations
21.293.541.00
Railroads (including receivers)
City.
AGRICULTURAL CREDIT CORPORATIONS.
Payette--Idaho Fruit Finance Co
Payette—Idaho Fruit Finance Co
Payette—Idaho Fruit Finance Co
LOUISIANA.
Lake Charles—Calcasieu Agricult'l Credit Corp.,Inc
OREGON.
Credit Corp
Hood River—Hood River Agricult'l
Credit Corp
Agricult'l
River—Hood
River
Hood
3465
Financial Chronicle
Name.
ARKANSAS.
Wynne—Cross County Bank
CALIFORNIA.
Laton—First National Bank of Laton
Pacific Grove—The First National Bank of Pacific Grove_
COLORADO.
Pueblo—Southern Colorado Bank
CONNECTICUT.
Bristol—Bristol Bank & Trust Co
Madison—Madison Trust Co
DISTRICT OF COLUMBIA.
Washington—Commercial National Bank of Washington_ IDAHO.
Gooding—First Security Bank of Gooding
Orofino—Bank of Orofino
ILLINOIS.
Chicago—Aetna State Bank
Stronghurst-flank of Stronghurst
Westmont—First State Bank of Westmont
INDIANA.
Rockport—First National Bank of Rockport
KANSAS.
Cheney—Citizens State Bank
LOUISIANA.
Natchitoches—Merchants & Farmers Bank
Springhill—Commercial Bank & Trust Co
MASSACHUSETTS.
Framingham—Framingham Trust Co
MICHIGAN.
Bad Axe—State Savings Bank of Bad Axe
NUes—State Bank of Niles
MISSOURI.
Macon—First Bank & Trust Co
NEVADA.
Reno—Bank of Nevada Savings & Trust
Amount
Withdrawn
or Canceled.
974.50
732.61
566.72
928.00
3,900.85
4,229.50
5.185.00
4.5(14.65
100.00
2.000.00
100.00
800.00
. 70.00
'
.94
3,000.00
500.00
1,984.69
205.84
150.00
2,520.00
1.500.00
Financial Chronicle
3466
NEW JERSEY.
Amount
Withdrawn
or Canceled.
$4,486.81
City and NamePaterson-Franklin Trust Co. of Paterson
NEW YORK.
Baldwin-Peoples State Bank of Baldwin
OREGON.
Lebanon-First National Bank of Lebanon
TENNESSEE.
Halls-Bank of Halls
TEXAS.
Edinburg-American State Bank & Trust Co
VERMONT.
Poultney-Citizens National Bank
WISCONSIN.
Butler-State Bank of Butler
Ladysmith-Pioneer National Bank of Ladysmith
Milladore--Milladore State Bank
Milwaukee-Bay View National Bank of Milwaukee
Milwaukee-State Bank of Milwaukee
Sparta-Monroe County Bank
Stratford-Stratford State Bank
Total
2,075.00
100.00
2,033.38
563.00
22.41
140.00
175.00
15.00
51,457.36
13,325.00
170.00
200.00
$108,716.21
BUILDING AND LOAN ASSOCIATIONS.
CALIFORNIA.
Alhambra-Alliambra Building & Loan Association
ILLINOIS.
Calumet City-Southeastern Building & Loan Association
Cicero-West Town Building & Loan Association
La Salle-Equitable Loan & Building Association of La Salle
MARYLAND.
Baltimore-Uncle Sam Loan & Savings Co. of Baltimore
City
NEW JERSEY.
Ocean City-Ocean City Building & Loan Association__
Paterson-American Building & Loan Association
Westfield-The Mutual Building & Loan Assn. of Westfield
NORTH CAROLINA.
Henderson-Henderson Building & Loan Association
Southport-Southport Building & Loan Association
TEXAS.
Greenville-Greenville Building & Loan Association
WISCONSIN.
Ashland-Ashland County Building-Loan Investment Assn.
Milwaukee-First Bohemian Nat'l Loan & Building Assn_ _
Milwaukee-Guaranty Building & Loan Association
Total building and loan associations
$1,989.00
539.00
1,365.06
723.00
1,353.37
25,000.00
3,702.00
1,818.00
141.00
365.00
50.00
1,290.75
37,508.98
2,553.50
$78,398.66
AGRICULTURAL CREDIT CORPORATIONS.
WASHINGTON.
Yakima--Yakima Credit Corp
Total agricultural credit corporations
$700.00
$700.00
LIVE STOCK CREDIT CORPORATIONS.
IDAHO.
Boise-Loan Company of Idaho
UTAH.
Salt Lake City-Bankers Livestock Loan Co
Salt Lake City-Bankers Livestock Loan Co
$50,000.00
1,313.99
800.00
Total livestock credit corporations
$52,113.99
Grand total
$239,928.86
TABLE 4.
Statement of loans authorized from July 21 to July 31 1932, inclusive,
which were withdrawn or canceled in part from Sept. 22 to Sept. 30. inclusive.
BANKS AND TRUST COMPANIES.
ILLINOIS.
Amount
Withdrawn
City and Nameor Canceled.
Cicero-Western State Bank of Cicero
$12.025.00
MISSOURI.
St. Louis-Lowell Bank
1,000.00
WISCONSIN.
Athens-The Bank of Athens
600.00
Brule-Brule State Bank
801.00
Kenosha-United States National Bank & Trust Co of.. _ _ _
4,000.00
Mishicot-The State Bank
1,045.00
Total banks and trust companies
$19,471.00
BUILDING AND LOAN ASSOCIATIONS.
INDIANA.
Oakland City-Home Economy Building & Loan Assn_ _ _ _
$2,357.28
VIRGINIA.
Petersburg-Petersburg Mutual Building & Loan Assn.,Inc.
378.10
WISCONSIN.
New London-New London Building & Loan Association...
1.471.74
Total building and loan associations
$4,207.12
Grand Total
$23,678.12
TABLE 5.
A statement of amounts authorized during September 1932, for purposes of
relief, under Section 1, Title 1. of the Emergency Relief and Construction Act
of 1932. upon applications of the Governors of the States mentioned, showing
names of the States, amounts, and rates of interest.
Rate of
Name of State or TerritoryAmount.
Interest.
Arizona
3
$250.000.00
Arkansas
3
502,500.00
Colorado
3
*59760000
Colorado
3
250.000.00
Florida
500,000.00
3
Georgia
*30.000.00
3
Georgia
3
*315.093.22
Hawaii
*307,435.00
3
Idaho
300.000.00
3
Illinois
*5.000.000.00
3
Kentucky
*672.550.00
3
Louisiana
101,008,844.00
3
Michigan
*316,000.00
Missouri
*628.930.00
3
Missouri
*189,890.00
3
Missouri
*3
5,133.00
3
Montana
300,000.00
3
Nevada
*47.200.00
3
New Mexico
*90,800.00
3
Ohio
*2,337,000.00
3
Ohio
*470,000.00
3
Oregon
*86,160.00
3
Pennsylvania
2,500,000.00
3
Utah
390,000.00
3
Virginia
283.367.00
3
Washington
*675,000.00
3
West Virginia
440,000.00
3
3
Total
$18,523,502.22
Nov. 19 1932
TABLE 6.
Statement of loans or contracts authorized during September. 1932, under
Section 201(a), Title 2, of the Emergency Relief and Construction Act of 1932.
Amount
Nam of Applicant.
State.
Authorized.
California-Metropolitan Water Dist. ofSo. California (5)---*$40.000,000
Louisiana-New Orleans Belt RR.Bridge (5)
*13,000,000
South Dakota-Madison,South Dakota Power Project (5).-*105,000
Total
$53.105.000
TABLE 7.
A statement oilcan authorized during September 1932. under Section 201 (d).
Title 2, of the Emergency Relief and Construction Act of 1932.
CALIFORNIA.
Amount
City and NameAuthorized.
San Francisco-Sun-Maid Raisin Growers ofCalifornia(53)- *$1.500.000
TABLE 8.
Statement of cash receipts and expenditures Sept. 1 1932. to Sept. 30 1932.
inclusive. Corporation's account with Treasurer of United States.
Cash balance at the close of business Aug. 311932, as per
books of the treasurer of the corporation
$30,643,812.38
Add: Deposits credited to the Corporation's account with
the Treasurer of United States prior to the close of business Aug.31 1932, but not reported to the Treasurer of the
Corporation until after Aug. 31 1932
1,322.81
Adjusted cash balance as of close of business Aug.31 1932-- $30,645,135.19
RECEIPTS.
Sale of "Third Series" 3M % notes
$25.000,000.00
Loan Repayments:
Banks and trust companies (including
Receivers)
30.724,106.41
Credit unions
600.00
Building and loan associations
1,019,455.52
Insurance companies
786.819.13
Joint Stock Land Banks
1,578.42
Live stock credit corporations
433,940.25
Mortgage loan companies
1,076.750.62
Agricultural credit corporations
61,594.79
Interest and discount collected
2,886,825.15
Reimbursable expense collected
6,565.99
Collections on collateral to rediscounts
22,665.18
Suspense-not credited on bills payable--73,800.00
Miscellaneous
405.71
Unallocated-pending
advice
°u
11,497,489.47
73,592,596.64
$104,237,731.83
EXPENDITURES.
Loan disbursements:
Banks and trust companies (incl.receivers)$27,394,446.07
Building and loan associations
Insurance companies
4,691,720.37
Federal land banks
2.450,000.00
Joint stock laud banks
16,617.55
Live stock credit corporations
1,534.779.79
Mortgage loan companies
2,919,950.21
Agricultural credit corporations
539,074.94
Railroads (including receivers)
12,888,851.00
Relief authorizations-proceeds disbursed_ _ 10,211,699.75
Refunds of int. on account of overpayment_ _
13.59
Refund of unearned discount
618.75
Releases of cash collateral to rediscounts_ __ _
13,584.40
Interest paid on cash collateral to rediscounts
56.58
Suspended credits-mortgage loans
4,013.78
Furniture and fixtures
36.397.10
General expense
195.137.40
Loan agency expense
225.973.15
Custodian expense
86.043.32
Reimbursable expense
17,330.62
72,692.678.65
Cash balance at close of business Sept. 30 1932
$31.545,053.18
Note.-In addition to funds on deposit with the Treasurer of United
States, custodian banks held in suspense,funds which amounted to $3,630.151.87 at the close of business Aug. 31 1932, and $2,166,056.35 at the close
of business Sept. 30 1932.
TABLE 9.
Statement of Condition as of the Close of Business Sept. 30 1932.
ASSETS.
Cash on deposit with Treasurer of United States
$31.545.053,18
Funds held in suspense by custodian banks
2,166.056.35
Petty cash funds-----------------------------2,100.00
Allocated to Secretary of Agriculture
110.000.000.00
Relief authorizations-proceeds disbursed
14.159.583.75
•Relief authorization-proceeds not yet disbursed
21,295.587.47
Loans-proceeds disbursed (less repayment):
Banks and trust companies a
$543,874,668.07
Credit unions
387.849,00
Building and loans associations
75.452.279.50
Insurance companies
57.370.906.99
Federal Land banks
11.450.000.00
Joint Stock Land Banks
1,263,848.24
Livestock credit corporations
9.429.458.04
Mortgage loan companies
75,841.903.82
Agricultural credit corporations
1,685.570.92
Railroads (including receivers)
218,670,008.95
$995,406,493.53
Loans-proceeds not yet disbursed:
Banks and trust companies
a$108,949,506.48
Building and loan associations
5,314,146.21
Insurance companies
13,256.206.42
Federal Land Banks
17,550.000.00
Joint Stock Land Banks
755.190.88
Livestock credit corporations
579,928.63
Mortgage loan companies
2,055,715.00
Agricultural credit corporations
289,320.12
Railroads (including receivers)
36,225.360.00
Self-liquidating projects under Sec.201A 53.105.000.00
13onafide institutions under Sec. 201D- 51,500,000.00
Accrued interest receivable
289,580,373.7411,829.580.65
Reimbursable expense
48,242.93
Furniture and fixtures
257,958.88
Total assets--------------------------------------$1,476,291,030.48
LIABILITIES AND CAPITAL.
Payable to Secretary of Agriculture
$35,000,000.00
authorizations
Proceeds of relief
not yet disbursed
21.295.587.47
Proceeds of loans not yet disbursed
289,580,373.74
Cash receipts not allocated pending advices
11,758.778.90
Suspense
78.143.93
Liability for funds held as cash collateral
2,215.447.94
Unearned discount - -21,684.12
Interest refunds payable
-272.30
Interest accrued-------------,--,
”
---.
-6,000.861.52
Interest earned, less interest and tuner expense
10.339,880.56
First series 3%% notes
$250.000,000.00
Second series 33,6% notes
250,000.000.00
Third series 33.% notes
100,000,000.00
600,000.000.00
Capital stock-------------------------------------- 500,000,000.00
Total liabilities and capital
$1.476.291,030.48
Note.-In addition to loans shown on statement of condition, the Corporation had outstanding on Sept. 30 1932, agreements to make loans
totaling $600.000 upon the performance of specified conditions.
Of loans authorized to railroads, $2,170,500 is reimbursable from the
Railroad Credit Corporation when, as and if funds are available.
Volume 135
Financial Chronicle
President Hoover En Route to Washington from West
Asks for Unity of National Action in Constructive
Measures Already Initiated.
Addressing a gathering near Glendale, Cal., Nov 12, from
the rear platform of his special train en route to Washington,
President Hoover referred to the end of the political campaign, and said "I ask for unity of National action in the
constructive measures which have been initiated during the
past three years for the care of distress to protect the nation
from imminent dangers, and to promote economic recovery."
His speech as given in the New York "Times" follows:
I am glad of this opportunity to meet with you again as a group of loyal
friends who take this means of expressing their continued friendship.
On my part. I welcome the opportunity to thank you for your comradeship in our battle together for the welfare of our country that has heartened
me in many a difficult hour, and I wish to thank you even more warmly for
your personal devotion which touches me deeply and which I shall always
treasure as the highest reward of public service.
My friends, the majority of the people have decided to entrust the
government to a new administration. The political campaign is over. I
ask for unity of national action in the constructive measures which have
been initiated during the past three years for the care of distress, to protect
the nation from imminent dangers and to promote economic recovery.
If we are to continue the recovery, so evidently in progress during the
past few months, by overcoming the remaining difficulties which still confront us, we must have continued unity in constructive action all along the
economic front.
Must Co-operate With Opponents.
I shall work for that unity during the remaining four months of this
administration. Furthermore, it is our duty after the 4th of March to cooperate with our opponents in every sound measure for the restoration of
prosperity.
I am making an early return to Washington in especial concern that the
measures and instrumentalities which we have in motion and on an entirely
non-partisan basis shall continue to function vigorously and contribute their
utmost.
The functioning of our government is dependent on strong two-party
organization. It is only through party organization that public questions
can be properly considered and determined.
Now, Republicans of the country should not be discouraged by defeat.
Rather, they should at once strengthen all forms of national, State, county
and precinct organization for absolutely militant action. And true to its
great traditions, whether in the majority or in the minority, the Republican
party should and will continue to give its constructive service to the country.
And it will return to power.
Now, it is my desire to extend our sincere thanks to all of our party
workers and others who have given so freely of their time and efforts in this
campaign, in supporting the principles for which we stand, and for the many
evidences of devoted personal friendship which I have received.
But the first consideration today of every American citizen is the continued recovery of the country, and that is a consideration far above partisanship. I thank you.
Maine Central RR. to Receive Additional Loan of
$900,000 from Reconstruction Finance Corporation—Lehigh Valley RR. also to Get Further
Advance of $2,000,000—Gainesville & Northwestern
Denied Loan—Receivers for Wabash Ask Further
Loan of $1,500,000.
The Inter-State Commerce Commission on Nov. 10 approved a further loan of $900,000 to the Maine Central
RR. from the Reconstruction Finance Corporation for the
purpose of paying in part $1,000,000 Maine Central-European & North American Ry. 4s, due Jan. 1 1933. The
balance of $100,000 will be supplied from the company's
treasury cash. This makes the second advance approved
to the Maine Central, the Commission on May 27 having
approved a loan of $1,650,000. The Commission has also
approved a further advance of $2,000,000 to the Lehigh
Valley RR. from the Reconstruction Finance Corporation,
the proceeds of which are to be loaned to assist the Lehigh
Valley Coal Co.in meeting at maturity Jan. 1 next $8,684,060
first mortgage bonds. This makes the third advance to the
Lehigh Valley, the road having previously received loans
of $1,500,000 and $3,000,000 respectively. This brings the
total loans approved to date to approximately $352,489,678
to 73 roads.
The Kentucky & Indiana Terminal RR., which recently
was authorized by the Inter-State Commerce Commission
to borrow $800,000 from the Reconstruction Finance Corporation, Nov. 15 withdrew its application. The reason
for the withdrawal was not made public.
The Commission on Nov. 14 denied the application of the
Gainesville & Northwestern RR. for a loan of $22,0V0 from
the Reconstruction Finance Corporation or the same grounds
that it has denied loans to other roads, viz., "that the earning power of the applicant and the security offered as a
pledge for the proposed loan are not such as to afford reasonable assurance of its ability to repay the loan."
Three additional roads have applied to the Inter-State
Commerce Commission for approval of loans, viz., the Wabash Ry. for a further loan amounting to $1,500,000; Toledo
Angola & Western Ry. for a loan of $36,000, and Coos Bay
Southern Ry. for a loan of $75,000. This brings the total
applications to date to approximately $479,242,336.
3467
The reports of the Commission approving the loans follow:
Leh!gh Valley RR.
The Lehigh Valley RR. on Oct. 20 1932 filed an application to the
Reconstruction Finance Corporation for a loan under the provisionsjot
Section 5 of the Reconstruction Finance Corporation Act, approved Jan.
22 1932, as amended. Loans of $1,500,000 and $3.000.000, respectively.
to the applicant have heretofore been approved by us.
The Application.
The applicant requests a loan of $2,000,000 for a term of three years,
the proceeds to be loaned to assist the Lehigh Valley Coal Co. In meeting
Payment of bonds in the amount of $8.684,000 maturing Jan. 1 1933,
Issued under a first mortgage on part of the coal company's property.
The applicant is liable on these bonds by virtue of an endorsement thereof
guaranteeing to the holders the punctual payment of principal and interest
when and as payable.
The applicant states that it will be unable to procure the funds with
which to meet this liability from any other source. It is also represented
that the coal company will be unable to pay the bonds at their maturity.
Necessities of the Applicant.
The bonds in question are not a direct obligation of the applicant, nor,
so far as the record shows, did the applicant derive any benefit from their
Issue. The bonds are secured by a direct lien upon property of the coal
company, and the liability of the applicant attaches only through default
in payment of interest on principal by the principal obligor.
When the endorsement of the applicant was given it was the owner
of all of the capital stock of the coal company. That stock is now pledged
under the applicant's general consolidated mortgage, but the applicant
has no beneficial interest therein. The applicant sold its zeversionary
Interest in the stock in compliance with a final decree of injunction issued
pursuant to a decision of the United States Supreme Court in U. S. v.
Lehigh Valley RR.. 220 U.S. 257; 254 U.S. 255. This decree required
the applicant to dispose of the stock of the coal company, suoject to the
lien of its mortgage, and forbade any individual or corporation to hold
an interest in either the applicant or the coal company while holding an
Interest in the other after Dec. 31 1927. The decree also provided inter alia
that both the coal company and the applicant be "enjoined from receiving
any stock, bonds, or other evidence of corporate indebtedness of any of
said companies except such evidences of current indebtedness as may be
lawful between shipper and carrier," and such as might later be authorized
by further order of court. No modification of this provision of the decree
has been authorized, but we are advised that a petition for an appropriate
modification Is to be presented to the court. Without expressing any
opinion as to the legality or propriety of a modification of the existing
decree, we think that our approval of the loan requested should be given
only upon the condition that, before the Reconstruction Finance Corporation grants any loan to the applicant for the purpose heretofore stated.
It require the applicant to show to its satisfaction that the loan will not
In any way constitute a violation of the decree.
The application sets forth that the coal company is unable to meet
the obligation under its first mortgage when due, but that approximately
one-half of the total indebtedness can be provided for by the use of bonds
Issued under the coal company's first and refunding mortgage if the remainder is paid in cash. Securities and cash are held in a sinking fund
which will produce $2,275,000 to be applied in discharge of the debt.
The loan, together with a small balance to be supplied from current cash
by the applicant or by the coal company, would be used to complete the
Immediate cash requirement of the coal company for $4,342,000. The
first and refunding mortgage of the coal company was directed to be issued
by the aforesaid decree. That decree also directed that there be reserved
$6.500,000 of the bonds issuable under that mortgage, to be used in liquidation or refundment of the first mortgage when due. There are already
outstanding under the coal company's first and refunding mortgage
$15,000.000 of bonds. As to the property covered by the coal company's
first mortgage, the first and refunding mortgage is a second lien, but is
prior in lien on the greater part of the coal company's property. Bonds
under this mortgage may be used as the basis of credit in refunding that
Part of the bonds under the first mortgage of the coal company not to be
paid in cash.
To show the necessities of the situation confronting both companies
copies of a condensed income and profit and loss account and a general
balance sheet of the coal company for the years 1930 and 1931 and nine
months of 1932 are submitted. These show that though, on Sept. 30 1932,
the coal company had $5,925,863 of earned surplus, its current cash was
low. Gross income for this none-months' period was $1,173,633; It was
$4,862,104 and $4,211,702, respectively, for the full years of 1930 and
1931. At the end of the nine-months' period there was a deficit in net
Income account of $1.195,609. and a net income during the years 1930 and
1931, respectively, of 51,444,433 and $761,609. It appears, however,
that the company was just coming into its seasonal period of heavy sales
at the end of September. The balance sheet for Oct. 1 1932 shows that
the capital liabilities of the coal company consisted of $9,465,000 of capital
stock. $8.900,000 of notes to an affiliated company and notes given incident to the acquisition of its property, and $23.684,000 of bonds, ineluding the 58,684,000 of first mortgage bonds maturing Jan. 1 1933.
The coal company's investment in property was stated at $81,869.877.
It had an investment in another coal corporation of $11,097.775 and
carried in depletion and depreciation reserves $42,615,199. leaving a net
Investment of 550,352.453. The coal company's total current assets
at the same date were $1.407,452, against current liabilities of $1,805,410.
Its total corporate surplus was shown as $18,621.543.
With its previous application the applicant submitted statements which
show that it is without the funds necessary to meet any part of the obligation under its endorsement of the bonds when required to do so without
resort to borrowing. That application shows that a loan is nermsr
to enable the applicant to meet its own direct maturing obligations during
the remainder of the current year. Accordingly, on Oct. 19, we approved
a loan of $3,000,000 to the applicant to provide funds to pay its interest
and taxes failing due from Nov. 1 1932 to Jan. 1 1933.
Security.
As security for the proposed loan the applicant offers to pledge 55.000,000
of the first mortgage 43-i% gold bonds of the Lehigh-Buffalo Terminal By.
Corp., maturing In 1966. This is the entire issue of bonds of that comPanY, and they are not dealt in on any securities exchange. The property
covered by this mortgage consists of approximately 33 acres of land and
12 miles of main tracks and sidings in the city of Buffalo. Including the
applicant's passenger and freight terminals. The applicant also owns
other securities which might be pledged if required.
We found the value of the property of the terminal for rate-making
purposes, in Lehigh Valley RR. Co., 34 Val. Rep. 1, to be 53,975,000.
exclusive of working capital, as of June 30 1917. Between that date and
Dec. 31 1930 net additions have been reported at a cost of $791,543. The
Financial Chronicle
3468
applicant estimates the value for rate-making purposes, as found by us,
plus net additions and betterments to Dec. 31 1931 to be $4,750.000.
As evidence of and security for the advance of $2,000,000 by the apapplicant to the coal company, the applicant expects to receive $2,000.000.
principal amount, of guaranteed and secured notes of the coal company
of the same issue which will be used by the coal company in refunding
that portion of its maturing bonds which are not paid in cash. These notes
of the coal company if the applicant is permitted by the court to receive
them will be available for pledge as additional collateral security for the
loan.
Conclusions.
We conclude:
1. That we should approve a loan of not to exceed $2,000,000 to the
applicant by the Finance Corporation for a term of not exceeding three
years to be used for the purpose hereinbefore stated;
2. That the applicant should pledge with the Finance Corporation as
collateral security for this, and all other loans, by that Corporation to
the applicant, $5,000,000 principal amount of first mortgage 43,i% gold
bonds of the Lehigh-Buffalo Terminal Ry. Corp. maturing in 1966; and
1: 2.000,000 principal amount of secured notes of the coal company guaranteed by the applicant when and if the applicant shall be authorized to
receive them, being a part of the same issue of notes to be tendered by
the coal company in refundment of that portion of its maturing bond issue
not paid in cash, or such other evidence of the indebtedness of the coal
company to the railroad company as they respectively may be authorized
to give and to receive;
3. That the applicant should deposit with the Finance Corporation
evidence satisfactory to that Corporation that the use of the proceeds of
said loan, for the purpose for which it is made, will not be in violation of
the law or of the final decree of injunction entered Nov. 7 1923 in the
District Court of the United States, Southern District of New York, in
the case entitled The United States of America, petitioner v. Lehigh Valley
RR. Co., et al., defendants,(In Equity No. 11-129) as the same may have
been amended;
4. That the Finance Corporation will be adequately secured under
these conditions.
Maine Central RR.
The Maine Central RR. on Oct. 13 1932, filed an application to the
Reconstruction Finance Corporation, for a loan under the provisions of
the Reconstruction Finance Corporation Act, approved Jan. 22 1932, as
amended.
On May 27 1932, we approved a loan of $1,650,000 to the applicant.
The purposes of that loan were to discharge 50% of the applicant's bank
loans, in aggregate amount of $1,500.000, and to pay a part of its fixed
charges accruing between July 1 1932. and Jan. 1 1933, in an amount not
exceeding $900,000. It was there shown that the applicant had expended
more than $3,385,000 in purchasing the securities of certain subsidiaries
ankhad suffered a substantial loss of revenue in 1931.
The Application.
Nov. 19
1932
Bangor and Winn, but not to place any other incumorance upon the property. While the existing bonds are joint obligations of the applicant and
the Railway, and both companies are promissors under the mortgage, the
lessee has assumed the primary obligation both as to interest and as to
principal, and its failure to pay would constitute a breach of the lease.
The Railway's property, including the terminals at Bangor, which are used
In operating other divisions, is an essential part of the apllicant's system,
affording direct connection with the Maritime Provinces through the •
Canadian Pacific and the Canadian National railways and forming the
shortest line between New York and Boston and the provinces of Nova
Scotia and New Brunswick. This line also provides a connecting link for a
consideraole amount of oulk freight from northern Aroostook County points
moving through the Vanceboro gateway•
The proposed 5% bonds, to be issued in connection with the retirement
of the 40-year 4% bonds due on Jan. 1 1933 will be secured by the same lien
as that of the maturing bonds, viz., on the main line from Bangor to Winn,
with branches in the towns of Orono, Milford, and Enfield, and the city of
Old Town, a total of 63.2 miles of main track. To the extent that present
bondholders may exchange their holdings for the now bonds, the amount
of advances by the Reconstruction Finance Corporation will be reduced.
ri The Ra lway owns additional mileage from Winn to Vanceboro, making a
total of 123.67 miles of main track. Between Mattawamkeag, near Winn,
and Vanceboro, near the New Brunswick line, the Canadian Pacific Ry.
operates over the Railway line under a trackage agreement as a part of its
route between its Pacific seaport at Vancouver, B. C., and its Atlantic
seaport at Saint John, N. B. This easterly portion of the Railway's property was not subject to any mortgage and will not come under the lien of
the new mortgage. The trackage agreement is between the Canadian
Pacific as user and the Maine Central as lessee of the Railway; hence an
abrogation of the underlying lease would seriously affect the applicant's
position as to the use by the Canadian Pacific of this part of the line.
Under the lease the applicant pays the Railway $165,500 per annum, of
which $125,000 is rental, $40,000 is for interest on the funded debt, and $500
Is for organization expenses. The outstanding capital stock of the Railway
Is $2,486,800. upon which 5% dividends have been regularly paid. The
balance sheet at Dec. 31 1931, shows tne investment Inroad and equipment
as $4,406,436. Our finding of final value for rate-making purposes of the
carrier property as of June 30 1916, was $5,089,000. Maine Central RR,
Co.. 30 Val. Rep. 357. If the net additions of and betterments between
valuation date and Dec. 31 1931, be added, the total becomes $5,613,159,
which applies to the entire mileage between Bangor and Vanceboro. The
value of non-carrier property as of the some date is reported as $13.370.
On a mileage pro rate, the portion of the grand total assignable to the line
upon which the lien of the mortgage would rest is $2,858,277.
In our report of May 27 1932, supra, we discussed the final value for
rate-making purposes found by us for the applicant's system as a whole,
and stated the amount of total funded debt outstanding. We also showed
that the applicant's earnings in each year between 1922 and 1930 were
ample to cover all interest requirements, and that even in the unfavorable
year 1931, 95% of the interest was earned.
The applicant requests an additional loan of not exceeding $900,000 for a
period of tnree years,for the purpose of paying in part, $1,000,000 of Maine
Central-European & North American Ry.4% mortgage bonds, at maturity,
Jan. 1 1933. The appllcant will supply $100.000 from its treasury cash.
The European & North American Ry., hereinafter called the Railway, is
the owner of a line operated oy the applicant under lease, and the bonds in
question are a joint obligation of the applicant and the Railway, but under
the terms of the lease, the primary obligation repsecting the payment or
renewal of the obligation is clearly upon the applicant. The applicant
states that the principal bondholders will not agree to an exchange,in watch
they would receive new 5% bonds to mature in 1958, nor can the new bonds
be sold on reasonable terms. It also states that the banks which act as
depositaries of the company's funds are unable to advance the sum required
to meet this maturity.
The applicant is a party to the "Marshalling and Distributing Plan. 1931,"
of the Railroad Credit Corporation, and at the close of July 1932, had paid
to that Corporation the sum of $158,385. It estimates that the total revenues between January 1932, and February 1933, inclusive, from the emergency increases in freight rates authorized by us will be approximately
$320.000. The applicant has not applled for a loan from the Railroad Credit
Corporation and at present does not contemplate such application.
Conclusions.
We conclude;
1. That we should approve a loan of not to exceed $900,000 to the applicant by the Finance Corporation, for a term not exceeding three years from
the making of the advances thereon, for the purpose of paying, in part,
$1.000,000 of 40-year 4% Maine Central-European & North American RY•
mortgage bonds at maturity, Jan. 1 1933,
0, 2. That the applicant should pledge with the Finance Corporation, as
collateral security for the loan. 31,000,000, principal amount, of Maine
Central-European & North American Ry. 1st-mortgage 5% gold bonds, to
be issued under an indenture dated Jan. 2 1933, to mature Jan. 1 1958.
and to be secured by a first lien on the line of the Railway between Bangor
and Winn, Me.
3. That the applicant should deposit with the Finance Corporation, as
additional security for the loan, an assignment, in form satisfactory to the
Corporation, of its distributive share in the fund administered by the
Railroad Credit Corporation under its "Marshalling and Distributing Plan.
1931."
4. That the aPplicant should agree with the Finance Corporation that all
of the security for this or any other loan by that Corporation to the applicant shall apply equally and ratably as security for all of such loans.
Necessities of the Applicant.
As was shown in our former report, the applicant's income availaole for
Interest decreased from $2,449,000 in 1930 to $1,267,000 in 1931, and the
cash on hand was $359,625 on Jan.31 1932, whereas approximately $1,250.000 is the normal amount of cash required by the applicant for its operations.
The applicant's cash position is now slightly more favorable than was
predicted early in the year, due to curtailment of expenditures for additions, betterments, materials and supplies, to income tax adjustments, and
to other circumstances. The applicant's income account for 1932, however,
discloses a deficit of $600,085 in net income at the end of the year as compared with the slight profit shown in a forecast made when the former
application was filed. This is attributable to a loss of $2,226,958 in gross
revenue, with a reduction of only $1,600,985 in operating expenses. A
considerable decline occurred in the potato and pulpwood traffic, which Is
an important source of revenue to the applicant. According to the present
showing the applicant will fail by about $600.000 to earn fixed charges in
1932, and obviously can not fully provide for the maturity on Jan. 1 1933,
from treasury cash. However, the applicant has not relied upon earnings
as a means of meeting this maturity, but heretofore has considered that the
refunding of the bonds would offer an attractive investment which could be
sold without recourse to a Government loan. It appears that present
conditions do not permit the applicant to consummate this plan for financing
As stated above three additional roads have applied to the
Commission for the approval of loans aggregating $1,611,000,
viz.:
Security.
As a collateral security for the loan the applicant offers to pledge $1,000.000 of first-mortgage 5% gold bonds to be issued under a joint indenture of
the Maine Central RR. and the Railway dated Jan. 2 1933, and maturing
Jan. 1 1958. In this indenture the First National Bank of Portland, Me.,
is named as trustee. The applicant contends that the new bonds would be
worth par under normal market conditions. The approximate market
value of the maturing 4% bonds is indicated by a price of 983- asked, and
85 bid, in 1931. The nearby maturity of the bonds, however, lessens the
value of these quotations as a guide to the probable market rating of the new
first-mortgage bonds.
The Railway is operated by the applicant under a lease, dated Aug. 31
1882. having a term of 999 years from April 1 1882. Under the terms of
the lease the applicant assumed the payment of interest and principal on an
Indebtedness of $1,000.000 incurred by the City of Bangor in 1864-1866 to
aid In constructing the Railway's line from Bangor to Winn, Me., a distance
desired to
of 55 miles. The lease further provided that if the applicant
or
make a loan to pay off the Bangor oonds at maturity on Jan. 1 1894,
it was authorized to secure the debt. in
to renew or extend the obligation,
a lien on the railroad oetween
an anrunt not exceeding $1,000,000, by
Wabash Railway.
The Wabash Ry. through its receivers has asked the L-S. C. Commission
to approve a further loan of $1,500,000 from the Reconstruction Finance
Corporation for the payment of principal and interest on equipment trust
Issues. The road asks that funds be made available in two instalments, of
which $735.747 was asked for Dec. 1 to meet payments on equipment
trusts of 1924, series D and E, and equipment trusts of 1925, series F.
The remainder of $764,253 was asked for Jan. 15 to apply on payment of
$823,386 principal and interest of equipment trusts of 1920. Receivers'
certificates would be issued as security in amount equal to the advance and
bearing interest at a rate to be fixed by the Reconstruction Finance Corporation.
Toledo Angola & Western Ry.
The Toledo Angola & Western Ry. has asked the Commission's approval
to borrow $36,000 from the Reconstruction Finance Corporation to pay
debts outstanding and offers its 6% first mortgage bonds as security.
Coos Bay Southern Ry.
The Coos Bay Southern Ry. has asked the Commission to approve a loan
of $75.000 from the Reconstruction Finance Corporation. The mono'
would be used to complete construction of a line from a paper plant near
Empire. Ore, to a connection with the main line of the Coos Bay branch of
the Southern Pacific RR.at North Bend, Ore.
U. S. Treasury Buys $10,000,000 33'% Notes of Reconstruction Finance Corporation.
The Treasury Department has purchased an additional
$10,000,000 of 3V2% notes of the Reconstruction Finance
Corporation bringing total cash advances to the corporation ,
to $1,185,000,000, according to Washington advices Nov 17
to the New York "Herald Tribune" which added:
As of October 31 the Corporation had a cash balance of only $30,942,020.
Outstanding loans amounting to $1.144,058,980 compared with cash advances from the Treasury of $1,175,000,000. Since that date, however,
the Corporation has made no large loans and the cash balance has been
Volume 135
Financial Chronicle
swelled by the additional money from the Treasury and repayments on
outstanding loans.
Shannon Investigating Committee May Recommend
Abolition of Federal Farm Board.
Abolition of the Federal Farm Board as a "tragic Government experiment in agriculture" may be recommended to
the short session of Congress by the Shannon Congressional
Committee, members indicated on Nov. 15, according to
a dispatch on that date from Chicago to the New York
"Times," which likewise stated:
The Committee is delving into the question of Government as a competitor of the tax-paying business men and farmers.
As to the details of the recommendation, the Committee is said to
be undecided whether to suggest that the Federal Marketing Act be repealed outright or that the Farm Board be abolished by taking away
its finances, knocking out the "stabilization" features and turning over
most of its remaining functions for the aid of co-operative marketing to
the Department of Agriculture.
The disclosure of these views came at the close of hearing in which
witnesses dwelt upon the activities of the Federal Farm Board and its
subsidiaries as an effort to establish a Governmental dictatorship in
foodstuffs.
Bank Failures in Past Three Years Attributed to
Drastic Shrinkage in Commodity and Security
Prices by Prof. Cox of University of Chicago.
The drastic shrinkage in commodity and security prices
over the last three years might seem to aceount for the
appalling succession of bank failures in the United States
during the same period," Professor Garfield V. Cox of the
School of Business of the University of Chicago said in a
talk on Friday night, (Nov. 11) at the Art Institute on
"Causes of Bank Failures." "Yet the fact remains," Professor Cox said, "that more banks suspended operations
during the comparatively prosperous years 1922-29 than
have suspended during three years of acute depression and
18 months of incipient or open panic in international money
markets. And there is the further fact that other countries
whose financial difficulties have been more acute than our
own have suffered no such record of failures. The evidence
appears conclusive that our banking system is by comparison
a fair-weather one, that its structure and functioning are
poorly adapted to cope with adverse economic conditions."
Prof. Cox went on to say:
Most of the banks which failed during the 1920's were small unit banks in
small communities, too small to get a satisfactory diversification of risks
even under the best of management, and too small to procure good management,or to operate profitably even if management were good. The mortality
rate has always been high among such banks in the United States, and their
difficulties were intensified in post-war years by the agricultural depression,
the displacement of local merchants by chain stores financed from outside
the community, and the development of automobile highways which
permitted what had been the natural clientele of banks in small communities to do both shopping and banking in larger and more distant
centres.
The present depression has found many of the larger banks in large
communities almost equally unprepared to most adversity, in spite of the
fact that they should have enjoyed superior management and greater
diversification of risks.
The result has been a banking crisis so menacing to the National economic
structure as to cause our Federal Government, through the Reconstruction
Finance Corporation, to come to the rescue of the banking system. It has
extended aid to approximately one bank out of five, a number of them
large institutions. In this action the United States has at last taken a
position already common in other countries, that in a time of National
banking crisis insolvent banks must not be permitted to fail.
A further weakness which applies as much to most European banking
systems as to our own is the very small extent to which a bank does business
with its own funds as compared with its deposit liabilities. In no other
major lino of business do the owners provide so thin a margin for absorbing
losses as do financial institutions, and in none of the latter is thinness of
owner's equity so serious as in commercial banking. A bank expects its
business clients to maintain a two-to-one ratio of current assets to current
liabilities, and a generous aggregate net worth, yet the bank itself operates
with demand and short-term liabilities of seven to 10 times its net worth.
The knowledge that a small shrinkage in the value of a bank's assets wipes
out the stockholder's equity and impairs deposits tends to undermine the
depositor's confidence and increase the danger of forced liquidation.
This discussion of weaknesses in our banking system as causes of bank
failures inevitably carries implications as to certain remedial steps that
should be taken. This, however, is the task of the next four lectures in the
series, in which two economists, a banker, and an expert in business law
will deal with various aspects of banking reform.
F. P. Garvan, Former Alien Property Custodian, Lays
"Crisis" on Gold to President Hoover—If Standard
Was in Peril, He Charges Threat Was Invited
By the Moratorium—Would Have Checked Withdrawal of Metal by Sale of Bonds of Foreign
Nations Held Here.
Whatever danger the country faced from the withdrawal
of gold by foreign countries was "delib(rately" caused by
President Hoover "in the granting of the moratorium and
standstill agreement," it was charged by Francis P. Garvan,
a former Alien Property Custodian, on Nov. 13, according
to the New York "Times" of Nov. 14, from which we also
quote as follows:
3469
Mr. Garvan also contended that in granting the moratorium "the President and Secretary of the Treasury neglected to safeguard the main interests
of the American people affected thereby and of which they were trustees."
Mr. Garvan, in a prelude to the statement, remarked that, regardless
of the election results, credit abroad and security at home must depend
on definitive research into the conditions asserted during the campaign
to have existed during the last fiscal year. He says, also, "that the cancellation drive is now on."
The research suggested, the statement said, "will show that Secretary
of the Treasury Mills is unfit to truly represent the interests of the United
States in meeting this drive."
Scouts Alleged Danger.
Basing his comment and charges on the President's speech at Des Moines
—in which the latter said that the abandonment of the gold standard
had at one time been imminent—Mr. Garvan said first that he did not
believe the condition existed. He then quoted a telegram he had sent to
Secretary Mills a few days after the Des Moines speech, as follows:
"The debt agreements signed from 1923 to 1926 by the governments
issuing these (over eleven billion.dollar's worth) bonds provided that upon
notice to these governments they are compelled to issue for the purpose
of sale to the public replacing bonds in any small denominations the United
States may require.
"By the President's deliberate action our safe position as a creditor
nation on June 20 1931 fully able to amply protect the gold standard, was
deliberately changed by President Hoover in an endeavor to aid Europe
and his acts reversed our situation and brought on any possible menace
which he claims came upon us during the succeeding year.
"I also intend to charge that after he deliberately brought about the
drain of gold he could have stopped it at any time by giving notice to
France, England, Italy and others that they must reissue their bonds in
our Treasury in small denominations for sale in the public marts. The
bonds of England and France were then selling in the public marts in the
amount of twenty billions and ten billions respectively at par, at the rate
of 34 and 4U% respectively. The withdrawal by Europe of our gold
could have been exactly offset by the sale of sufficient number of their
bonds."
In this telegram Mr. Garvan asked for comment and the Secretary
replied:
May
"Your premises and conclusions are without justification. . .
I add that you have probably been led to th's faulty line of reasoning by
the vindictive hatred which you have for Germany and everything German
which impels you to resent the undoubted help rendered the distressed
People of Germany and the world by the President's one-year debt payment
suspension proposal."
Holds Our Interests Ignored.
Returning to the moratorium, Mr. Garvan said:
"Internationalism had triumphed over patriotism. The moratorium and
standstill agreement, rushed into to save our 'neighbors, gave no thought
to our own international position. It provided no protection to our people.
It was entirely unilateral. Whoever heard of a bank giving a moratorium
to its depositors on the debts they owed the bank and at the same time
allowing them to draw out all their deposits?"
Mr. Garvan then cited the case of France, quoting the agreement ratified.
in 1929, for the sale of bonds to the public.
"These bonds have not been used as weapons of defense" he continued.
"One hour of strength and a notice to France that he wanted the bonds
in marketable form—that we were going to sell these bonds in competition
with the rest of their national bonds on the marts of Paris, in exactly the
same amount they attempted to draw from us in gold, to the detriment
of our people in the unfortunate condition brought about by the moratorium
and standstill agreement—would have ended all the dangers now talked
about by our President."
Mr. Garvan attacked the international bankers, asserting that "Congress
has not realized that big business is not the evil—not even big banking—
but the control of both by the private international banking firms," and
charging that "they are the creators and the propagandists of the false
internationalism which has brought us to our knees."
No Solution of Problems of Railroads Even with Return
of Normal Business Until Carriers Are Relieved of
Excessive Taxation and Subsidized Competition
According to E. G. Buckland, President Railroad
Credit Corporation.
Even with the return of normal business, the problems of
the railroads can not be solved until the rail carriers are at
least relieved of excessive taxation and subsidized competition as well as over-regulation of themselves and underregulation of their competitors, E. G. Buckland, President
of the Railroad Credit Corporation told the annual meeting
in New York of the Academy of Political Science,at the Hotel
Astor, New York, on Nov. 18. "Two classes of problems,"
said Mr. Buckland, who is also Chairman of the Board of
the New York New Haven & Hartford Railroad Company,
"to-day confront the railroads for solution. One is temporary but the other is continuing. The temporary problem
arises because of the prevailing depression in business. The
present financial condition of the railroads is due .in large
part to this prevailing depression. That condition will be
relieved as and when normal business returns." Mr.
Buckland continued:
"The solution of the temporary problem will by no means solve the
continuing problem which is: How to maintain and operate a system of
railways prepared at all times to handle promptly all the traffic which may
be offered; how to give to the owners an opportunity to earn enough to
maintain their properties and equipment in such a state of efficiency that
they can carry well this burden; how to secure a fair return upon the value
of the property devoted to the service; how to stabilize their credit so that
in times of depression as well as times of normal business their securities
will be safe investments for savings banks, life insurance companies, and
for trust funds in general.
"This continuing problem will not be solved by a return to normal
business but its solution may be accomplished if, among other things, the
railroads are relieved of (1) excessive taxation and subsidized competition,
and (2) over-regulation of themselves and under-regulation of their competitors.
"The railroad is a common sufferer with the pver-taxed public. The
general tax payers to-day are properly insisting upon stopping unnecessary
expenditures and reducing taxation. The railroads join with them and add
their special protest against general taxation whereby their competitors are
subsidized, who, without subsidy, could not compete.
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Financial Chronicle
• "If the railroads, with which the proposed Saint Lawrence shipway will
compete, were free from taxes which they now pay,as this waterway will be
free, these same rail carriers could move all the grain they are now moving,
plus all the United States grain estimated to move via this waterway, free
of charge and at the same time increase their net income. Again, if the
Government would pay each year to these railroads the amount it will have
to pay for annual interest charges, maintenance and operation of the proposed Saint Lawrence waterway, they could afford to haul free all grain
that would move through the waterway and have a subtsantial increase in
their net income.
"Among the proposed expenditures on the Mississippi River is one calling
for a nine-foot channe from St. Louis to St. Paul. There are railroads
substantially paralleling this route, but if there were not, a single-track,
water-grade railroad between those two cities could be built for about onefourth the cost of the nine-foot channel and could be operated and maintained at an annual cost of sixty per cent of river maintenance and lock
operations. Furthermore, the railroad would be operated every day in
the year but the river only when ice free.
"The Inland Waterways Corporation for thirteen years has been operating
Government-owned equipment on the Mississippi and Warner Rivers. It
pays no taxes on its floating equipment, nor interest on its investment.
Eve/11 excluding these items of expense, it has made an operating loss during
the period of its existence. This competition by Government-owned and
operated barges has been an important contributing cause of recent receiverships by two major railroads.
"Since 1921 the Federal and State governments have spent more than
thirteen billion dollars for highway improvement. Upon these highways
which largely parallel the railroads, there are being operated approximately
3,500,000 freight trucks and some 96,000 passenger-carrying busses. Their
contribution to the cost of construction and maintenance of these highways
Is negligible when compared to the cost to the railroads of constructing and
maintaining their roadbed.
"If the railroads are to have what both the President and the Presidentelect have advocated, equality of opportunity, these subsidies to competitors should cease.
"Out of every $100 of net operating revenue received in 1931, the American railroads paid $31.63 in taxes. This meant that almost one-third of
the railroad plant was operated in 1931 to support the Federal, State and
Local governments.
"Even though the railroads have ceased to have a monopoly in transportation, all regulations over them should not be removed. Regulations necessary to protect the small shippers are as necessary to-day as they were more
than fifty years ago when the Granger cases were decided. Unregulated
transportation will to-day as surely drive out of business the small concern
as it threatened to do when the Inter-State Commerce Act was made a
law. Irrespective of what the railroads in their own interests may advocate,
the public interest demands the regulation of highway and water carriers."
' Mr. Buckland said that as urgent as are the solutions of
the temporary and continuing problems confronting the railroads, there is an emergency looming in reference to the
limitation of power of the Inter-State Commerce Commission
and the Reconstruction Finance Corporation to make loans
to the carriers, 'Which should have the immediate attention
of Congress when it assembles in December. At present
the Reconstruction Finance Corporation Act has been construed by that body and the Commission to mean that
approval for a loan can only be given when there is adequate
security in the form of collateral having a market quotation
for an aggregate amount considerably in excess of the face
of the loan.
"At the present depressed market quotations," saidlMr.
Buckland, "this requirement will speedily exhaust the
collateral of most of the railroads and they may be left
without resources to meet interest obligations, unless business
returns more quickly than now seems possible." He added:
"The profitable dealings of the Government with the railroads in the past
Justifies the hope and request that the Congress will re-enact in substance
the law under which those dealings were had and so enable the Inter-State
Commerce Commisson to approve and the Reconstruction Finance Corporation to make loans to a railroad to enable it 'properly to meet the
transportation needs of the public where the prospective earning power of
the applicant and the character and value of the security offered are such
as to furnish reasonable assurance of the applicant's ability to repay the
loan.' This is merely following banking practice of relying upon the commercial efficiency and financial integrity of the borrower. The railroads
have justified this reliance."
Forthcoming Annual Report of New York State Superintendent of Insurance, Bearing on Casualty or
Miscellaneous Lines of Insurance;
George S. Van Schaick, New York State Superintendent
of Insurance, will issue shortly Part III of his 1932 report
to the Legislature. This volume deals mainly with the casualty or miscellaneous lines of insurance and gives abstracts
and tabulations of the 1931 business of 67 New York State,
58 other-state and 10 foreign companies authorized in New
York; a total of 135 and a net decrease of 6 for the year.
An announcement relative thereto issued November 14 said:
Of these companies 25 are mutuals of New York and 8 are mutuals of
other states.
Of the various coverages afforded, automobile liability and workmen's
compensation stand in the lead for volume, and fidelity-and-surety, healthand-accident coverages are next in order.
Casualty companies reporting to New York on January 11932. had total
assets of $1,305.140,461. These amounts do not include assets of the life
departments of those companies which do both life and accident-and-health
business.
Liabilities, excluding'capital, amounted to $952,150,892 and capital invested totaled 3173,005,968, leaving a net surplus of $179,983.601.
The total income for 1931 was $866,708,213. a decrease of $48,434,009
for the year. Of the total, income from premiums was $751,870,473 and
compares with $800,996,943 for 1930 as follows:
Nov. 19 1932
1931
1930
Workmen's Compensation
$162.666,547
$195,408,464
Auto Liability
216,160,269
206,828,431
Fidelity and Surety
90,154,213
97,530,248
Accident and Health
83,412,507
91,121,627
Auto Property Damage
73,218,597
75,100,871
Liability (not Auto)
62,506,914
65,279,689
Burglary and Theft
32,148,098
34,843,927
Plate Glass
12,423,133
11,234,781
Boiler and Machinery
11,195,557
11,144,215
Damage and Collision (not Auto)
2,982,276
3,314,908
Credit and all other classes
6,190.715
8.001,431
If 1931 accident and health premiums of life companies be added to
those of casualty companies, the total accident and health premiums will
be $108,822,397.
The total disbursements for 1931 were $875,380,919, of which amount
$424.546,783 was for losses and $77,126,954 for investigation and adjustment of claims.
The total premiums received by these companies in New York State
were $202,439,305: total loss claims paid in New York $106,951,678.
The present volume Includes, also, reports of 49 title and mortgage guaranty companies with assets of $316,876,270; liabilities, $85,138,108; income.
$61,394,771; disbursements, $65,579,039.
An appendix to this volume contains the 1932 amendments to the insurance law, Court of Appeals decisions on insurance cases and insurance
department reports on examination of insurance companies for the Year
ended July 1 1932.
Relationship of Purchasing Power of Dollar and Commodity Prices as Applied to Buyer and Seller in
Wholesale Market Surveyed By National Industrial
Conference Board—Rubber, Silk and Cotton Show
Greatest Decline in Price.
A man who buys crude rubber in the New York market
this year gets for his dollar almost 9 times the quantity of
rubber that he could have bought with the same dollar in
1923. But the seller of the rubber receives only 11 cents a$
compared with one dollar in 1923. This is one example of
the dual relationship of the purchasing power of the dollar
and commodity prices as applied to the buyer and the seller
in the wholesale market, which is graphically shown in a
chart issued by the National Industrial Conference Board in
its series of Road Maps of Industry. While rubber is the
extreme ease in the list of falling wholesale prices between
1923 and 1932,the Conference Board chart shows the changes
in 20 other commodities. Under date of Nov. 7 the Board
said:
The least change has taken place in the case of cattle, the chart indexes
being based on the price of "good to choice" steers in the Chicago market.
In 1932 the buyer gets 29% more cattle for his money than he would have
in 1923, but the man who sells the same cattle gets 22% less money than
In 1923. The situation was reversed, in regard to cattle, In 1929, according
to the chart, when the buyer received 26% less cattle for his money than
he did in 1923, while the seller received 36% more money for the same
weight of steers. Hogs, corn, copper, wheat, and petroleum showed
similar price advance in 1929 over 1923.
Next to rubber, silk and cotton show the greatest decline in price. In
1929 the purchaser of silk received 64% more goods for each dollar than
in 1923; in 1932 the price had fallen still further, and the purchaser received
over five times the amount of goods for the same amount of money that he
would have received in 1923. In 1929 the seller of silk got 61 cents as compared with a dollar in 1923, and in 1932 he got only 19 cents. The relative
proportions of purchases and sales of cotton for the same three years were
less extreme than those for silk.
The chart shows the purchasing power of money in terms of the 21 commodities cited to have been slightly loss in 1929 than in 1923 in only 8IX
Instances. When 1932 is compared with 1923, however, it will be noted
that the purchasing power of the dollar has greatly increased, and the
buyer has gained, in some cases enormously, by the price decline.
The situation of the seller is obviously the reverse. The goods in his
hands represent his control over money and through money over all other
goods. A fall in price in comparison with 1923 was already noticeable in
1929 in a large number of instances, but the further fall in 1932 has caused
a severe shrinkage in the purchasing power of the producer, that is, in his
control of money. In such a situation he finds himself more than hard
pressed to meet his fixed charges payable in money, and not infrequently
finds that in terms of the particular goods he must purchase there has
been no price decline comparable to that in the commodities which he
produces.
ITEMS ABOUT BANKS, TRUST COMPANIES, &c.
The New York Cotton Exchange membership of Otto C.
Steinhauser was sold Nov. 18 to Alvin L. Wachaman for
another for $12,000,a decrease of $100 from the last previous
sale.
.—
Joseph P. Bickerton, Jr., has been elected a member of
the Advisory Board of the Times Square office of the
Chemical Bank & Trust Company. Mr. 13Ickerton is a
lawyer with offices at 220 West 42nd Street.
Conditioned upon the discontinuance of the branch office
heretofore authorized to be maintained at 8500 Fourth
Avenue, in Brooklyn, the New York State Banking Department on Nov. 10 gave the National City Safe Deposit Company authority to open a branch office on or after March
1 1933, at 8515-8517 Fourth Avenue In Brooklyn. The National City Safe Deposit Company is located at 17 East
42nd Street in New York City. The new branch will be
opened about March 15 1933.
Clarence J. Housman, special partner of E. A. Pierce &
Co., 40 Wall Street, members of the New York Stock Exchange, died on Nov. 13 at Long Branch, N. J. He was
Volume 135
Financial Chronicle
62 years old. Mr. Housman, who had been a member of
A. A. Housman & Company, his brother's firm (later E. A.
Pierce & Co.), was the senior partner in the company until
1920 when be retired. However, Mr. Housman retained an
Interest as a special partner. In 1920 he was elected Mayor
of Long Branch, serving one four-year term.
Reginald Roome, President, announces that at a meeting
of the Board of Trustees of the Excelsior Savings Bank of
New York, on Nov. 14, Floyd W. Mundy, senior partner of
the firm of James H. Oliphant & Co., was elected to the
Board and Francis S. Bancroft, Vice-President of Pease &
Elliman, Inc., was elected First Vice-President to succeed
the late Frederick G. Hobbs. Mr. Bancroft is a member of
the Board of Trustees and the Finance Committee of the
bank.
Two firms, Cross and Cross, and Louis S. Weeks, both of
New York, were selected on Nov. 11 as associate architects
for the building which will house the uptown office of the
Dry Dock Savings Institution of New York City, which is
to be constructed on the northwest corner of 59th Street and
Lexington Avenue. The bank's uptown office is located at
present on the southwest corner of 58th Street and Madison
Avenue where it has been for the past thirty years. According to Andrew Mills, Jr., President of the Dry Dock, construction on the new building will start next spring. Preliminary sketches are being prepared by the architects, who
will be associated in this project until the building is completed. A particular problem will be presented in the construction, Mr. Mills pointed out, due to the fact that the
present Lexington Avenue Subway entrance is located right
where the entrance to the bank would normally be placed.
Mr. Mills stated that the co-operation of the Interborough
Rapid Transit Company and the City of New York will be
asked in order to have this entrance moved to a location
on the same corner which should prove more convenient to
the subway passengers.
William H. Rockwood, former President and trustee of
the Union Square Savings Bank of New York, 20 Union
Square, died on Nov. 8 at Southern Pines, N. C. He would
have been 76 years old Nov. 13. Mr. Rockwood had been
associated with the Union Square Savings Bank for more
than 37 years, resigning in 1922 because of ill health. He
was President of the bank for ten years.
Dean C. Anderson was elected a trustee of the Brevoort
Savings Bank of Brooklyn, at a meeting of the Board of
Trustees held Nov. 10. Mr. Anderson is Vice-President of
the Brooklyn Varnish Manufacturing Company. He succeeds C. J. A. Fitzsimmons who retired.'
The National Rockland Bank of Boston, Boston, Mass., on
Monday of this week, Nov. 14, opened new and larger banking quarters at 30 Congress Street, that city, having moved
from 50 Congress where the institution had been located
since 1928. The new offices are furnished with the latest
banking equipment, including a spacious new safe deposit
vault equipped with every known protective device. We
quote in part below from a description of the new quarters
given in the Boston "Herald" of Nov. 14:
The counters are of the "counter-screen" type which give the teller protection without shutting him off behind bars from the bank's customers.
Polished plate glass has been carried up to a height of 6% feet. Within
this glass screen is the familiar teller's wicket. Metal work has been reduced to a minimum, in the interest of openness and friendliness of the
bank's atmosphere and to give visibility of light and air for the employes.
Counters are illuminated by lights in miniature reflector troughs under
the teller's shelf, where they light the counter without getting in the
teller's eyes. The counters are equipped with concealed electrical alarms
for use of employes in case of attempted robbery. At the rear of the
main floor is a sound-proof mezzanine floor for the use of the clerical
force. The floor below contains the new safe deposit vaults, with an
accompanying suite of private coupon rooms, for use of vault users. This
floor contains the trust and transfer departments and a directors' room.
The bank also has an office in Rockbury at 2343 Washington Street, where it has operated since 1862.
Announcement was made on Nov. 11 by Arthur Guy, State
Bank Commissioner for 'Massachusetts, that the Revere
Savings Bank of Boston had consolidated with the Chelsea
Savings Bank of Chelsea, Mass., according to the Boston
"Transcript" of that day, which added:
The Chelsea Bank, according to the Commissioner's statement, has assumed
the obligations of the Revere Bank and the latter's offices will be
maintained as a branch.
all
3471
The First National Bank of Ocean City, N. J., failed to
open for business yesterday, Nov. 18, and its affairs were
taken over by the Comptroller of the Currency at the
request of its directors, according to Associated Press ad-vices
from that place, which added:
"Constant withdrawals of deposits and inability to realizelon assets"
was given by officials as the reason for the closing.
The bank dosed Oct. 8 1931 and reopened March 23 of this year.
The First National merged three years ago with the Ocean City Title
& Trust Co. and at present is occupying the building which formerly
housed that institution.
The bank closed the first time on the day Hiram S. Mowrer, President
at that time, dived to his death in the ocean, leaving a note, which police
said, indicated suicide.
William G. Abbott, an Ocean City druggist, has been President of the
institution less than three weeks. He was elected upon the resignation
of William H. Collisson, Ocean City engineer, who retained his position
as Chairman of the Board.
Advices from Washington, D. C., to the "Wall Street
Journal," reporting the closing of the institution, stated
that T. F. Ransom, a bank examiner, had been placed in
charge of the institution, which was capitalized at $300,000
and had deposits of $1,957,000. The reopening of this institution on March 23 of the present year, after having been
closed since Oct. 8 1931, was noted in our issue of March
26 last, page 2277.
The Philadelphia "Ledger" of Nov. 17 stated that depositors of the Glenside Trust Co. of Glenside, Pa., would receive an advance payment of 10% of their claims on Dec.
5 next, according to an announcement made the previous
day, Nov. 16, at the Philadelphia office of State Banking
Department. The paper mentioned continuing said:
The payment, which will represent a third disbursement to depositors
of the institution, will be made to 4,700 depositors and will total $33,511.
The two previous payments totaled 20%.
The Glenside Trust Co. was taken over by the Pennsylvania Banking Department on Oct. 3 1931, as indicated in
our issue of Oct. 10 1931, page 2380.
Owing to heavy withdrawals of deposits and shrinkage of
securities, the Diamond National Bank of Pittsburgh, Pa.
did not open for business-on Monday of this week, Nov. 14.
Announcement that the bank would not open the next day
was made late Sunday by E. E. Rieck, Chairman of the
Board of Directors of the institution. Mr. Rieek's statement,
as printed in the Pittsburgh "Post Gazette" of Nov. 14,
from which the foregoing is learnt, was as follows:
At a special meeting of the Board of Directors of the Diamond National
Bank of Pittsburgh, held Saturday, Nov. 12 1932, at 4:30 p. m., it was
decided to close the bank. The following resolution was unanimously
adopted:
"Be it resolved: That on account of present depressed business conditions
and continual unusual withdrawal of deposits, the Diamond National
Bank of Pittsburgh suspend and place its assets in the hands of the Comptroller of the Currency of the United States."
During the past year and a half, and particularly since the death in
May of this year of the President, J. D. Callery, the bank has lost several
million dollars in deposits. They were $9,919,000 at the time of closing. A
successor to Mr. Callery was not elected. E. E. Bieck accepted the office
of Chairman of the Board in June and since then he and the entire Board of
Directors have put forth every effort to rehabilitate the bank, but on account of the depressed condition it was impossible to raise the amount of
money necessary.
We quote further in part from the paper mentioned, as
follows:
The Diamond National's deposits are said to have shrunk approximately
$17,000,000 in the last 18 months. Deposits amounted to $9,919,000 at the
time of closing. As shown in the last statement of condition of the bank, at
close of business Sept.30— the deposits were $12,045,917.64.
The Diamond National, organized about 60 years ago, owns the building
It occupies at Fifth and Liberty Avenues and Market Street. The present
officers of the bank are: E. E. Bieck, Chairman; Andrew J. Hughlin and
W. 0. Phillips, Vice-Presidents: M. L. O'Brien, Cashier; L. E. Husemen
and C. A. Johnston, Assistant Cashiers.
In its last statement, Sept. 30 1932, the Diamond National
Bank showed capital of $600,000; surplus and undivided
profits of $1,699,954 and deposits of $12,045,918. Associated Press advices from Pittsburgh on Nov. 14 stated that
Robert R. Gordon had been appointed receiver of the closed
institution on that day. The dispatch continuing said:
Gordon was appointed by F. G. Await, Acting Comptroller of the Currency, in whose hands the Diamond National was placed by its directors.
Meanwhile, a committee of the Pittsburgh Clearing House Association is
co-operating with William Taylor, Chief National Bank Examiner of the
Fourth Federal Reserve District, in the examination and audit of the bank's
condition.
The committee said this was being done to ascertain whether a reorganization would be worked out and "to facilitate making available to the
depositors,a substantial amount of their funds at the earliest possible date.**
The Duquesne National Bank of Pittsburgh, Pa. (the
second Pittsburgh bank to close this week), failed to open
on Tuesday, Nov. 15. The decision to close the institution,
according to the Pittsburgh "Post Gazette" of that date,
and turn over its assets and affairs to the Comptroller of
the Currency, was made at a meeting of the directors held
3472
Financial Chronicle
Nov. 19 1932
at the close of business Nov. 14. A statement issued by the
directors, which incorporated a resolution adopted at the
meeting, said:
Corporation, said that the money was not actually in hand,
but that it would be forthcoming immediately. The paper
mentioned continuing said in part:
Be it resolved that owing to the present depressed condition of business
and the usual heavy withdrawals, the Duquesne National Bank suspend
its business operations and place its assets and affairs in the hands of the
Comptroller of the Currency of the United States.
The loan was made on the first application of the Ohio. Mr. Huston
submitted with the application $5,000,000 of prime mortgages. It had
been hoped to get $2,600,000 on this amount of collateral.
Mr. Huston announced that a second application, which will embrace
millions of dollars of other assets of the Ohio, will be submitted Immediately. The application is virtually completed. It is hoped to raise at
least $3.000,000 on the second application.
Leaders in the movement for the reopening of the bank were highly
pleased with the first loan. The plan contemplates obtaining from the
Reconstruction Finance Corporation $5,000,000 to $7,500,000 in loans, so
that the bank, if reopened, may pay off all accounts of $75 or less and
have sufficient money on hand to Pay 15% additional on all claims.
Theodore H. Tangeman, State Director of Commerce, advised depositors at a meeting Tuesday afternoon (Nov. 15) that the State Banking
Department must have a decision by Dec. 15 on whether the plan for
reopening is a success. He said the Department feels a dividend must be
paid to depositors at that time regardless of the outcome of the reopening
movement.
With the $2,800,000 in cash already on hand from general liquidation
of assets and the $2,000,000 granted by the Reconstruction Finance Corporation, a dividend of not less than 15%, which would mean $4,500,000.
will be paid Dec. 15 to depositors of the bank.
More than 200 depositors attended the meeting of the general Ohio
depositors' committee which Mr. Tangeman addressed Tuesday. At
Its conclusion W. W. Morrison, Chairman, made the announcement that
the slate of officers and directors will be announced Thursday (Nov. 17).
The depositors' committee approved the plan, as modified, including
three minor revisions and accepted an agreement with the Metropolitan
Life Insurance Co., which has a $2,500,000 mortgage on the Ohio bank
building. • • •
The depositors approved an agreement among the depositors, the BoodY
Building Co. and the Metropolitan Life Insurance Co., whereby $500,000
will be paid from depositors' trust assets to reduce the mortgage on the
Ohio Bank building to $2,000,000 on the day the Ohio bank reopens.
There will be no other payments until March 1 1937, after which semiannual payments on the principal of the mortgage will be made at She
rate of $37,500 each six months. The balance of the mortgage, after
the $500.000 Payment is made, will be reduced from 53,5%, as at present,
to 5%.
In view of this part of the agreement the Metropolitan Life Insurance
Co., which holds the Ohio bank's mortgage, as well as lease at $300,000
per year rental, agrees to waive all claims under the lease and all claims
of every kind against the bank holding the Doody Building Co. under its
note in the original amount of 82,500,000 and under the mortgage securing it.
Officers of the closed bank were named in the paper mentioned as follows: W. S. Linderman, President; S. A.
McMullen, Vice-President, and Durbin S. Kerr, Cashier.
In its last statement of condition, Sept. 30 1932, the closed
institution showed capital of $500,000; surplus and undivided
profits of $1,207,783, and deposits of $4,869,111. No report
of the condition of the bank at the time of the closing was
given out.
A Pittsburgh dispatch to the New York "Times" on Nov.15
stated that C. 0. Thomas, former receiver for the Bank of
Pittsburgh N. A., had been named receiver for the closed
bank by F. G. Await, Acting Comptroller of the Currency.
A third Pittsburgh bank, the Real Estate Savings & Trust
Co., located on the north side of the city, failed to open on
Wednesday, Nov. 16. Associated Press advices from Pittsburgh on that date, reporting the failure, stated that the
bank's affairs had been turned over to the Pennsylvania
Department of Banking, and that Walter C. Brennels had
been appointed receiver. A second dispatch on the same
date by the Associated Press contained the following additional information regarding the closing.
The directors announced they conferred with J. D. Swigart, Chief Ex=
aminer of the State Department of Banking, last night (Nov. 15) and
decided to turn the bank over to the State.
Swigart said heavy withdrawals within the past few days was the
cause for the action. On Sept. 30 the bank had $2,699,462 of deposits.
Twenty-four County detectives were assigned to duty in the downtown
and North Side districts to-day to apprehend persons circulating false
reports concerning financial institutions. Circulation of such reports is a
penal offense.
The closed institution was capitalized at $400,000 and had
combined surplus and undivided profits of $134,882 as of
Sept. 30 last.
The newly organized Main Line Trust Co., the stock of
which is said to be owned by the Pennsylbania Co. for
Insurances on Lives & Granting Annuities of Philadelphia,
Pa., opened for business on Tuesday of this week at 7 East
Lancaster Ave., Ardmore, Pa. A statement announcing the
opening said: "It is the purpose of this company to provide
safe and convenient banking facilities to Ardmore and
vicinity and thus further the interests of this progressive and
growing community." The new trust company is capitalized
at $250,000 and has a paid-in surplus of like amount. The
officers, all of whom are officials of the Pennsylvania Co. for
Insurances on Lives & Granting Annuities, are as follows:
John H. Mason, Chairman of the Board; Richard S. McKinley, President, and William J. Lloyd, Secretary and Treasurer. Items with reference to the organization of the Main
Line Trust Co. appeared in our issues of Oct.8, Oct. 15 and
Oct. 29, pages 2442, 2606 and 2940, respectively.
Henry W. Ludebuehl, Vice-President of the City Deposit
Bank & Trust Co. of Pittsburgh, Pa., died at his home in
that city on Nov. 14. Mr. Ludebuehl had been connected with
the banking industry for many years. He was 58 years
of age.
William H. Conkling, Chairman of the Board of the Savings Bank of Baltimore, and for the past 64 years associated
with the institution, died at his home in Baltimore on Nov. 11
at the age of 92 after an illness of three weeks' duration.
Mr. Conkling, who had served the institution in almost every
position from Junior clerk up, had been Chairman of the
Board of Directors since his retirement from the Presidency.
A dispatch to the New York "Times" from Baltimore, reporting Mr. Conkling's death, said in part:
He saw the bank grow from comparatively small proportions to an
institution occupying a leading place among savings banks in the East.
His close application to work and his ability to judge security values long
were held to have played a major part in the growth of the institution.
Further referring to the affairs of the closed Ohio Savings
Bank & Trust Co. (one of four leading Toledo banks which
closed their doors on Aug. 17 1931), plans for the reopening
of which are now under way, the Toledo "Blade" of Nov.
16 stated that the Reconstruction Finance Corporation on
that day had approved a loan of more than $2,000,000 to
the institution. Robert M.Huston, Deputy Superintendent
of Banks for Ohio, who is in charge of the closed bank, in
announcing the loan from the Reconstruction Finance
In its issue of Nov. 11 the Toledo "Blade" stated that
payments of double liability by stockholders of the closed
institution had reached a total of approximately 81,500,000,
or half of the $3,000,000 due, according to an announcement
made the previous day at a meeting of the depositors'
committee. The "Blade" went on to say in part:
Under the reopening plan the double liability funds will be used for
capital of the bank.
Our last previous reference to the affairs of the closed
Ohio Savings Bank & Trust Co. appeared in the "Chronicle"
of Oct. 29 last, page 2940.
The board of directors of the Northern Trust Co. of
Chicago, at its regular monthly meeting this week, advanced
Frederick S. Booth from Assistant Secretary to Second
Vice-President, mid appointed as Assistant Secretaries
Frank M. Wallace, Wade R. Ringenberg, Robert E. Agee,
Sheldon A. Weaver and Robert M. Roloson, Jr, according
to the Chicago "Journal of Commerce" of Nov. 16, which
stated that officers of the company announced that continued increase in the business of the trust department
had made the expansion of the official staff necessary.
The Miners'
Miners* State Bank of Iron River, Mich., the closing
of which in June last was indicated in our issue of June 18,
page 4440, was reopened on Nov. 7, after Judge Stone of
Houghton, Mich., felt satisfied the institution was in a
favorable financial condition. The "Michigan Investor" of
Nov. 12, in its report of the matter, went on to say:
The Miners' State Bank was given an excellent start for reopening when
the stock was over-subscribed. It was only necessary to raise $40,000, but
when the books were closed $50,000 had been raised.
Shortly after the bank closed for reorganization, the stockholders voluntarily agreed to pay a 100% assessment. About 25% of them, however,
were unable to meet the assessment, and their shares were sold to other
persons.
The Board includes five former directors and three new ones. The former
directors who will serve are H. H. Frailing, Herman Holmes, F. E. Brown,
Joe Selin and C. M. Cannon, Mille the new ones are Martin Kelly, J. A.
Monroe and Dr. L. E. Irvine.
Officers elected by the Board are Mr. Fralling, President; Mr. Holmes,
First Vice-President; Mr. Monroe, Second Vice-President; P. E. Crouch,
Cashier, and C. A. Nelson, Assistant Cashier.
The new Board will serve with the depositors' committee, which will
act with the directors during the five-year reorganization period. The
committee includes John A. Monroe, Martin Kelly, R. C. Fish, Anton J.
Cybulski and A. D. MacPherson. All bank matters must be taken up
jointly by the two groups.
Concerning the affairs of the State Savings Bank of Harrison, Mich., it is learned from the "Michigan Investor" of
Nov. 12 that a hearing for the reopening of the institution,
which closed June 13 last, will be held Nov. 28. The bank,
it was stated, has been completely reorganized and the fol-
Volume 135
3473
Financial Chronicle
lowing officers chosen: J. E. Ladd, President; Ellis
Hughes
and Michael Fanning, Vice-Presidents, and Fred Weatherhead (who had been Cashier from 1890 until the bank
closed), Cashier. The paper mentioned continued as follows:
The capital stock of the bank is $25,000 and the total assets are $262,338.
Depositors will be paid at least $30,000 within a year under the moratorium
agreement.
That the State Savings Bank of Lincoln Park, Mich., will
be reopened shortly is indicated in the following taken
from the Detroit "Free Press" of Nov. 11:
An order was granted Thursday (Nov. 10) by Circuit Judge Arthur
Webster for the reopening of the State Savings Bank of Lincoln Park. The
order was granted on the petition of Sid A. Erwin, Assistant Attorney-General, and John G. Dunn, Attorney for the receiver, Charles G. Schultz.
The reopening is the result of reorganization plans which provide for an
Immediate payment of 10% of deposits to depositors and a 100% payment
of school children's funds. The latter payment amounts to $9,533.81.
morning, and a notice posted on its doors stated that bank
examiners would take charge of the institution. The dispatch went on to say:
Heavy withdrawals caused the officials of the bank to decide to close
it, they said. A statement the offitials issued said all deposits would
be paid.
F. C. Rollands is President of the institution and W. W. Hayward is
Cashier. It is one of two banks in this County. The other is located
at Tularosa.
That the second dividend, amounting to 10%, indicated
in our issue of Nov. 5 1932, page 3108, has now been paid
to the depositors of the United States National Bank of Los
Angeles, appears from the following taken from the Los
Angeles "Times" of Nov. 8:
Checks covering the second 10% dividend to depositors of the United
States National Bank of Los Angeles are now available for delivery, according to notices mailed yesterday by H. F. Schilling, receiver, with offices
in the Great Republic Life Building in Spring Street.
The paper mentioned also said:
From the "Michigan Investor" of Nov. 12, it is learned
that at a meeting of the newly elected directors of the reorganized Coopersville State Bank of Coopersville, Mich.,
held recently, officers for the institution were appointed,
as follows: William Mohrhead, President; L. D. Mills,
Vice-President, and C. L. Van Frank, Cashier. The date for
the reopening of the institution would be set later, it was
stated.
The United States National Bank & Trust Co. of Kenosha,
Wis., was closed on Nov. 14 by order of its directors, according to a dispatch by the United Press from that place
on the date named, which added:
Heavy withdrawals during the last few months and depleted reserves were
said to be responsible for the closing.
The Northwest Bancorporation (head office Minneapolis)
has called a special meeting of its stockholders for Dec. 9
to vote on a change in the capital structure of the organization. A dispatch from Minneapolis yesterday, Nov. 18,
to the "Wall Street Journal," reporting this, went on to say:
The plan proposes that the corporation's investments in affiliated banks
and companies be carried on its books on a net tangible asset basis, and
that the par value of the corporation's shares be changed to no par,
from $50.
Six Oklahoma banks, with combined deposits of more than
$3,000,000, including the Shawnee National Bank at Shawnee, of which H. T. nouglas is President, were closed on
Nov. 14, according to a dispatch by the United Press from
Oklahoma City on that date. Failure of the six banks, all
members of a chain of 28 National and State institutions
controlled by Mr. Douglas, and of which the Shawnee National Bank was the parent of the chain, was said to be due
to the fact that "creditors of Douglas foreclosed on him last
week for $1,250,000." W. J. Barnett, State Bank Commissioner for Oklahoma, was reported in the advices as saying
that Mr. Douglas had assigned all his resources, including
his banks, to his creditors. On the door of the Shawnee
National Bank, it was stated, this notice was posted:
This bank has been closed by the voluntary action of the Board of
Directors and placed in the hands of the National Bank Examiner.
The five other banks which closed were the First National
Bank of Allen; First National Bank of McLoud ; Park National Bank of Sulphur; Canadian Valley Bank of Asher,
and the Maud State Bank at Maud.
Governor W. H. Murray of Oklahoma, the dispatch stated,
asserted that depositors of Oklahoma banks outside the
Doubles chain need feel no uneasiness, since other institutions would not be affected.
Associated Press advices from Oklahoma City on Nov. 14
gave the approximate deposits and capitalization of the six
closed banks as follows:
Shawnee National, Shawnee, $2,000,000; $200,000. First National,
McLoud, $125,000; $25,000. Park National, Sulphur, $185,000; $25,000.
First National, Allen, $100,000.; $25,000. Canadian Valley, Asher,
$150,000; $25,000. Maud State, Maud, $350,000; $25,000.
This dispatch also reported Mr. Barnett, the State Bank
Commissioner, as saying that the Asher and Maud State
banks would be reopened under a "moratorium" plan as soon
' as reports from liquidating, agents are received.
Two Floresville, Tex., banks, the First National Bank and
the City National Bank, both capitalized at $50,000, were
consolidated on Nov. 8 1932 under the title of the First
City National Bank of Floresville. The new organization has
a capital of $100,000 and no surplus.
Associated Press advices from Alamogordo, N. M., Nov. 12,
reported that the State Bank of Alamogordo had closed that
A third dividend may be declared, possibly by the first of the year, contingent on the compromise settlement of the Ferguson Trust claims for
about $500,000, which would release additional funds now held in reserve,
it was stated. The dividend now being paid amounts to about $600,000.
The closing of the United States National Bank in August
1931 was noted in our issue of Aug. 22 of that year, page 1238.
The Tillamook NationalBank,Tillamook, Ore ,capitalized
at $50,000, was placed in voluntary liquidation on Oct 31
1932. The institution was absorbed by the First Nationa
Bank of Tillamook.
The directors of The Dominion Bank (head office Toronto,
Canada) at a meeting held Nov. 17 declared a dividend of
for the quarter ending Dec. 31 1932, payable to
2
shareholders of record of Dec. 20 1932, making a total
distribution to shareholders for the current year of 11%.
- has been elected to a seat
Sir Edward Davson, Bart.,
on the Central Board of Barclays Bank (Dominion, Colonial
and Overseas).
R. W. Taylor retired as a Joint
Effective Oct. 31 1932,
General Manager of the Midland Bank Limited, London,
after 47 years of highly valued service. H. Dickinson, heretofore an Assistant General Manager of the institution, has
been appointed a Joint General Manager.
COURSE OF BANK CLEARINGS.
Bank clearings this week will again show a decrease as
compared with a year ago. Preliminary figures compiled by
us, based upon telegraphic advices from the chief cities of the
coun ry, indicate that for the week ended to-day (Saturday
Nov. 19), bank exchanges for all the cities of the United
States from which it is possible to obtain weekly returns will
b 26.2% below those for the corresponding week last year.
Our preliminary total stands at $4,502,176,518, against
$6,097,058,992 for the same week in 1931. At this center
there is a loss for the five days ended Friday of 28.4%. Our
comparative summary for the week follows:
Clearinas—Returns Si,Telegraph.
Week Ending Nov. 19.
1932.
1931.
Per
Cent.
New York
Chicago
Philadelphia
Boston
Kansas City
St. Louis
San Francisco
Los Angeles
Pittsburgh
Detroit
Cleveland
Baltimore
New Orleans
$2,232,978,418 83,119,260,808
170,426,530
252,068,067
264,000,000
266,000,000
239.000,000
174,000,000
55,841,258
81,966,166
55,000,000
73,700,000
88,146,000
146,801,347
No longer will report clearings
74,573,764
85,583,394
49,660,390
79,186,595
64,724,695
72,385,995
49,337,543
56,556,267
24,522,239
44,260,892
—28.4
—32.4
—0.8
—27.2
—31.9
—25.4
—40.0
Twelve cities, five days
Other cities, five days
$3,303,210,837
448,602,928
$4,516,769,531
667,655,010
—26.9
—32.8
Total all cities, five days
All cities, one day
$3,751,813,765
750,362,753
$5,184,424,541
912,634,451
—27.6
—17.8
Total all cities for week
$4.502.176.518
26.097 nms 002
—26.2
—12.9
—37.3
—10.6
—12.8
—44.6
Complete and exact details for the week covered by the
foregoing will appear in our issue of next week. We cannot
furnish them to-day, inasmuch as the week ends to-day
(Saturday) and the Saturday figures will not be available
until noon to-day. Accordingly, in the above the last day
of the week has to be in all cases estimated.
In the elaborate detailed statement, however, which we
present further below, we are able to give final and complete
results for the week previous, the week ended Nov. 12. For
that week there is a decrease of 40.4%, the aggregate of
clearings for the whole country being $3,414,448,738, against
$5,724,187,908 in the same week in 1931. Outside of this
city there is a decrease of 40.8%, the bank clearings at this
3474
Financial Chronicle
center recording a loss of 40.1%. We group the cities according to the Federal Reserve districts in which they are located,
and from this it appears that in the New York Reserve
District, including this city, the totals show a contraction
of 40.1%, in the Boston Reserve District of 41).1% and in
the Philadelphia Reserve District 35.8%. In the Cleveland
Reserve District there is a loss of 44.4%, in the Richmond
Reserve District of 29.5% and in the Atlanta Reserve
District of 39.9%. In the Chicago Reserve District the
totals show a decrease of 50.3%, in the St. Louis Reserve
District of 30.1%, and in the Minneapolis Reserve District
of 34.0%. In the Kansas City Reserve District the decrease
is 41.7%, in the Dallas Reserve District 31.5% and in the
San Francisco Reserve District 42.6%.
In the following we furnish a summary of Federal Reserve
districts:
SUMMARY OF BANK CLEARINGS.
Wes* End. Nov. 12
1932.
1931.
Federal Reserve Dints.
$
Oat Boston___ _12 cities
178,520,367
2nd New York..12 ''
2,209,309,139
3rd Philadelphia 10 "
196,472,914
4th Cleveland... 8 "
131,641,523
5th Richmond_ _ 6 "
83,382,514
8th Atlanta_ _ _ _11 "
64,806,298
7th Chicago.._.20 "
209,733,849
8th St. Louis... 5 "
69,055,391
ilth Minneapolis 7 "
54,226,804
10th RansaaCitY10 "
67,838,812
11th Dallas_ _ _ _ 5 "
33,025,767
12th San Fran__13 "
116,435,360
Total
117 office
Outside N. Y. city
Canada
$
297,812,053
3,686,778,727
306,022,994
236,691,883
118,314,809
107,871,546
421,984,245
98,856,775
82,218,532
116,429,750
48,246,576
202,960,018
Ine.or
Dec.
1930.
1929.
$
V..
$
-40.1
413,018,316
711,831.039
-40.1 6,033,304,104 10,930,724,094
-35.8
459,901,819
793,602,844
-44.4
371,351,465
479,370,132
-29.5
179,939,082
196,814,545
-39.9
144,375,220
195,834,326
-50.3
740,557,305 1,110,987,948
-30.1
166,724,141
217,895,373
-34.0
115,027,477
135,253,329
-41.7
174,575,763
216,486,709
-31.5
58,698,144
87,543,543
-42.6
291,114,227
405,853,468
3,414,448,738 5,724,187,908 -40.4 9,148,587,063 15,469,197,347
1,271,268,383 2,148,443,053 -40.8 3,261,300,133 4,768,143,987
22 esti,.
0510 S55 5t
2794Si 115f4 .4-1 a
-49st MA 71c
OK 501 Mg
We now add our detailed statement,showing last week's
figures for each city separately, for the four years:
iVeek Ended Nov. 12.
178,520,367
297,812,053 -40.1
1929.
$
-4s
Total(12 cities)
1930.
"
$
$
Reserve Dist rict-Boston
283,640
436,045
1,389,674
2,401,834
158,000,000 261,424.743
496,846
873,033
252,799
487,160
369,307
1,053,581
2,015,953
3,573,598
1,274,707
2,452,960
5,227,230
9,134,407
2,599,852
5,926.642
6,332,800
9,538.800
509,250
277,559
Inc. or
Dec.
toep.Oce.wwWWpW
WimeaVepoploo.
=
-amwgowwcm.m
.c.ca meam.c.
First Federal
Maine- Bangor_
Portland
Mass.-Boston-Fall River_
Lowell
New Bedford._
Springfield_
Worcester
Conn.-Hartford
New Has
__
R.I.-Providence
N. H.-Manches'r
1931.
658,646
3,787,076
639,000,000
1,593,679
1,326,719
1.421,923
6,182,816
4,232,665
21,574,742
9,503,800
21,690,200
858,773
413,018,316
711,831,039
03
1932.
.11,1 IIIIILLIL
1 ?.5,4pp,
54?”.5.
Clearings at-
Second Feder al Reserve D istrIct-New YorkN. Y.-Albany
3,322,829
5,341,552 -37.8
6,957,507
7,005,672
Binghamton...
650,180
944,069 -31.1
1,278,416
1,486,661
Buffalo
20,001,332
32,785.460 -39.0
47,876,138
75,098,734
Elmira
413,132
729,492 -43.4
1,156,753
1,949,702
Jamestown....
418,381
706,927 -40.8
1,365,676
New York.... 2,143,180,355 3,575,744,825 -40.1 5,887,286,930 10 70i 053'360
Rochester
4,896,937
8,110,197 -39.6
10,868,920
18,000,961
Syracuse
3,158,751
4,092,074 -22.8
5,300,780
7,529,270
Conn.- Stamford
1,921,390
2,509,256 -23.4
3,425,589
4,746,121
N. J.-Montclair
346,669
539,428 -35.7
719,649
1.014,996
Newark
13,046,911
25,303,906 -48.4
31,120,246
42,339,868
Northern N. J.
17,952,272
29,971,541 -40.1
35,947,500
68,904,434
Total (12015189) 2.209,309,139 3,686,778,727 -40.1 6,033,304,104 10930,724,094
Third Federal Reserve Dist rict-Philad elphia
Pa.-Altoona_ _ _
265,544
581,891 -52.7
1,228,138
Bethlehem_ _ _.
343,779 , 2,823,967 -87.8
3,760,991
Chester
192,890
614,578 -68.6
873,416
Lancaster
830,293
2,078,845 -60.1
1,726,194
Philadelphia -. 189,000,000 285.000,000 -33.7 435,000,000
Reading
1,236,381
2,922,866 -57.7
3,413,31
Scranton
1,491,541
3,469.883 -57.0
4,163,604
Wilkes-Barre..
1,099,072
1,981,680 -44.5
3,540,631
York
726,414
1,446,304 -49.8
2,419,529
N.J.-Trenton
• 1,287,000
5,123,000 -74.9
3,776,000
Total (10610168)
196,472,914
Fourth Feder al
Ohio-Akron....
Canton
Cincinnati.- - Cleveland
Columbus
Mansfield
Youngstown..
Pa.-Pittsburgh.
306,022,994 -35.8
Reserve D 'strict-Cie
,eland
d191,000
527,000 -63.8
b
b
b
27,526,778
45,315,417 -39.3
43,662,548
82,999,964 -47.4
5,494,000
9,815,200
44.0
934,379
1,000,000 -6.7
b
b
b
53,832,818
97,034,302 -44.5
Total(6 cities).
131,641,523 236,691,883 -44.4
Fifth Federal Reserve Dist rict-Richm ondW.Va.-Hunt'g'n
292,070
456,857 -36.1
Va.-Norfolk
1,938,000
2,978,919 -34.9
Richmond_ _ _ _
22,281,109
30.606.849 -27.2
9.C.-Charleston
594,832
1,512,963 -60.7
Md.-Baltimore.
42,042,912
59,361,525 -29.2
D.C.-Washing'n
16,233,591
23,397,696 -30.6
Total(6 cities).
83,382,514
459,901,819
1,409,518
5,683,686
1,169,735
2,507,265
745,000,000
4,862,622
7,529,850
4,417,662
2,137,849
5,884,657
780,602,844
4,364,000
b
56,825,257
121,040,089
15,727,700
1,493,016
b
171,901,403
5,745,000
b
84,005,000
174,378,154
14,817,700
2,045,438
b
198,288.840
371,351,465
479.370.132
1,028,060
3,981,436
46,890,000
2,125,373
99,750,488
26,163,745
1,248,200
4,871,341
54,413,000
2.187,250
103,008,512
31,086.242
118,314,809 -29.5
179,939,082
Sixth Federal Reserve Dist rict-Atiant aTenn.-Knoxville
1,459,116
3,560,700 -59.0
Nashville
6,556,274
10,316,823 -36.5
pa.-Atlanta....
21,500,000
33.153,603 -35.2
671,504
Augusta
1,283,084 -47.7
Macon
360,551
649,523 -44.5
Fla.-Jack'nvIlle.
5,651,877
9,025,794 -37.4
(a,-Birming'm.
6.533,102
10,615,443 -38.5
700,231
1,083.219 -34.8
Mobile
994,000
1,752,000 -43.3
81l88.-Jackson
98,465
158,669 -37.9
Vicksburg
36,272,688 -44.1
.,a.-NewOrlean.s
20,275,178
1,742,766
20.413,108
42,362.973
1,815.135
1,236.459
11,879,914
18,314,975
1,931.198
2,470,602
211,045
43,997,045
196.814,545
/
3,500,000
23,726,357
61,140,038
2,843,216
1,817,195
13.027.921
25,913,500
2,184,591
2,415.000
280,278
58.986,230
107,871,546 -39.9
144,375,220
195,834,326
Total (11 cities)
64,806,298
Nov. 19 1932
Week Ended Nov. 12.
Marines at1932.
Inc. or
Dec.
1931.
1930.
1929.
$
S
Seventh Feder al Reserve D strict-Chi caeoMlch.-Adrian..
86,802
137,387 --36.8
303,246
201,889
Ann Arbor....
490,786
660,501 --25.7
1,022,311
867,476
Detroit
37,237,190
78,623,838 --52.6 131,013,223 209,112,343
Grand Rapids.
1,987,607
3,377,128 --41.1
6,671,289
5,825,882
Lansing
336,200
2,077,821 --83.8
2,501,408
3,917.984
Ind.-Ft. Wayne
949,087
1,585,777 --40.2
2,922,171
5,029,818
Indianapolis_
11,622,000
16,219,000 --28.8
31,163,000
23,588,000
South Bend...
1,038,783
1,580,103 --34.3
3,571,237
2,868,483
Terre Haute_
2,986,197
3,889,475 --23.2
6,361,749
5.485,480
Wis.-Milwaukee
9,668.840
19,461,353 --50.3
40,365.960
29,300,711
Ia.-Ced. Rapids
381,609
811,860 --53.0
3,033,220
2,855,779
Des Moines...
3,473,372
5,829,773 --40.4
9,773,243
6,917,974
Sioux City..
1,440,368
3,370,216 --57.3
6,637,180
5,262,310
Waterloo
f
581,563
1,927,442
1,452,534
Ill.-Bloomington
678,194
1,283,841
2,082.986
1,754,948
Chicago
134,023,092 275,692,206 -51.4 507,364,698 766,003,318
Decatur
306,800
780,823 -60.7
1,478,506
1,110,122
Peoria
1,692,428
2,937,644 --42.4
5,810,014
3,966,023
Rockford
356,115
1,163,865 -69.4
4,081,497
2,786,146
Springfield..._
1,048,379
1,020,471 -45.4
2.663,805
2,512,048
Total(20 cities) 209,733,849 421,984,245 -50.3 740,557,305 1,110,987.948
Eiehth Federa 1 Reserve Die trict-St.Lo uisInd.-Evansville.
Mo.-St. Louis..
40,300,000
60,800,000 -33.7
Ky.-Louisville
17,262,624
19,270,571 -10.4
Owensboro_ _ _
Tenn.-Mempids
11,071,711
17,958,475 -38.3
Ill.-Jacksonville
72,434
148,855 -51.3
Quincy
348,622
678,874 -48.7
109,900,000
34,691,741
146,200,000
37,458,856
21,019,262
172,487
940,651
32,509,065
336.996
1,390,456
98.858,775 -30.1
166,724,141
217,895,373
Ninth Federal Reserve Dist rict-Min ne spoilsMinn.-Duluth
4,648,345
4,426,273 +5.0
35,411,405
Minneapolis_ _
53,905,564 -34.3
St. Paul
10,571,806
18,394,231 -42.5
No. Oak -Fargo
1,476.004
2,289,539 -35.5
S. D.-Aberdeen
395,322
690,157 -42.7
Mont.-Billings_
281,172
487,607 -42.3
Helena
1,442,750
2,025,161 -28.8
6,777,296
78,067,156
22,873,050
2,603,796
1,039,057
777.122
2,890,000
7,648,889
90,753,467
27,075,475
2,614,883
1,412,204
872.597
4,875,811
82,218,532 -34.0
115,027,477
135,253,328
Tenth Federal Reserve Dist rict-Kansa $ CityNeb.-Fremont..
83,729
197,276 -57.6
Hastings
90,294 ' 204,214 -55.8
Lincoln
1,233,473
2,667.391 -53.8
Omaha
14.959,086
27,376,957 -45.4
Kan,-Topeka..
1,470.917
1,816,293 -19.0
Wichita
2,795,455
3.997,521 -30.1
Mo.-Kan. City.
44,420,877
75,322,325 -41.0
St. Joseph_ _ _
1,949,558
3,085,416 -36.8
Cob -Cob.SDP
375,414
819,508 -54.2
Denver
a
a
Pueblo
460,009
942,849 -51.2
233,334
472,661
3,100,122
37,606,421
2,831,474
6,347,596
118,111,655
5,139,814
1,174,144
a
1,558.542
270,534
487,467
3,553,179
44,731,155
2,969,924
7,755,025
147,328,628
6,201,143
1,342,074
a
1,847,580
174,575,763
216,486,709
1,371,112
40,918,326
9,351,291
3,608,000
3,449,415
1,720,518
58,690,079
16,014,762
5,429,000
5,689,184
Total(5 cities).
Total(7 cities)_
Total(10 cities)
69,055,391
54,226,804
67,838,812
118,429,750 -41.7
Eleventh Fede ral Reserve District-Da
Texas- A ustin_
552,546
1,253,597
Dallas
23,432,346
34,602,848
Fort Worth_ _ _
5,312,085
6,617,954
Galveston
1,878,000
2,815,000
La.-Shreveport.
1,850,790
2,957,177
Ian-55.9
-32.3
-19.7
-33.3
-37.4
Total(5 cities)_
33,025,767
48,246,576
87.543,543
58,898,144
Twelfth Feder al Reserve D Istrict-San Frond sea-Wash -Seatl.
14,955,404
24,384,224 -38.7
43,995,690
36,765,620
Spokane
4,091,937
8,528,000 -52.0
14,257,000
10,354,000
Yakima
401,905
887,606 -54.7
2,397,712
1,523,492
Ore.-Portland
15,846,105
28,810,193 -45.9
49,600,999
40,061,943
Utah-S. L. City
7,041,829
11,501,087 -38.8
17,787,838
17,538,362
Cal.-Long Beach
2,077,828
4,400,781 -52.8
8,426,244
6,476,411
• Los Angeles_ _ _ No longer will report clearin gs.
2,545,899
Pasadena
4,019.599 -36.7
7,070,927
5.707,072
Sacramento _ _
6,004.701
8,616,294 -30.3
7,902,641
6,740,778
San Diego_ _ _ _
59,870,840 101,646,766 -41.1 150.928,815
San Francisco
234 173,709
San Jose
1,153,971
2,249,048 -48.7
5,519,683
3,339.601
Santa Barbara_
771.109
1,528,60/ -49.6
2,166,449
2,221,200
Santa Monica
648,987
1,325,662 -51.0
2,220,414
1,995,121
Stockton
1,024,845
1,320,600 -22.4
2,923,300
2,201,400
Total(13 cities) 116,435,360 202,960,018 -42.6
291,114,227 405,853,488
Grand total (117
cities)
3414,448,738 5,724,187,908 -40.4 9,148,587,063 5489,197,347
Outside NewYork 1,271,268,383 2,148,443,083 -40.8
3,261,300,133 4,788,143,987
Week Ended Nov. 10.
Clearings at1932.
CanadaMontreal
Toronto
Winnipeg
Vancouver
Ottawa
Quebec
Halifax
Hamilton
Calgary
St. John
Victoria
London
Edmonton
Regina
Brandon
Lethbridge
Saskatoon
Moose Jaw
Brantford
Fort William. _ _
New Westminster
Medicine Hat...
Peterborough.- _
Sherbrooke
Kitchener
Windsor
Prince Albert....
Moncton
Kingston
Chatham
Sarnia
Sudbury
84,797,160
89,919,266
50,606.273
12,694.185
4,323,894
4.845,379
2,068,055
3,742,312
5,625,736
1,444.893
1,362,729
2.132,859
3,510,053
4,924,589
369,439
498,101
1,698,987
609,016
807,050
659,153
417,462
227,223
667,997
668,573
769,940
2,254.016
307.573
686,905
573,385
38.5,806
386,453
547,348
1931.
92,649,994
74,852,426
50,342,252
12,120,851
5,464,879
4,746,670
2,126,884
3,681,505
6,385,365
1,693,185
1,486,943
2,053,026
4,916,847
4,584,542
370,940
406,988
1,876,895
711,257
7.56,674
597,352
409,947
222,593
631,539
575,411
706,705
2,043,417
334,058
598,385
602,128
598,755
363,221
547,958
Inc. or
Dec.
-8.5
+20.1
+0.5
+4.7
-20.9
+2.1
-2.9
+1.7
-11.9
-14.7
-8.4
+3.9
-28.6
+7.4
-0.4
+22.4
-9.5
-14.4
+6.7
+10.3
+1.8
+2.1
+5.8
+16.2
+8.9
+10.3
-7.9
+14.8
-4.8
-35.6
+6.4
-0.1
1930.
113,967,515
94,197,566
43,351,979
16,215,732
5,929,595
6,885.340
3,028,099
4,583,470
8,783,516
2,166,735
1,901,384
2,555,765
4,284,711
5,714,412
529,461
547,420
2,064,703
1,037,300
927,488
755,534
625,019
508,381
1,014,070
755,017
1,043,768
2,658,385
320,998
830.499
622,877
570,464
506,227
967,325
1929.
176,187,880
141,685,224
74,401.169
20,746,217
8,128,301
7,802,978
3,773,673
5,721,398
12,874,031
2,244,884
2,383,833
3,275,314
6,582,773
7,142,002
667.856
977,845
3,031.576
1,483,694
1,355,374
908.488
1,087,744
487,048
1,072,329
1,067,126
1,325,261
4,711,169
669,098
1,156,392
919,392
739,025
692,275
Total(32cities) 284,529,810 279.451,623 +1.8 329,938.715 495,301.225
a No longer reports weekly clearings. b Clearing house not
functioning at present.
d Figures smaller due to merger of two largest banks. e No longer reports clear'Egg. 6 Only one bank opens, no clearings ligUres available. •Estimated.
Volume 135
Financial Chronicle
TRANSACTIONS AT THE NEW YORK STOCK EXCHANGE
DAILY. WEEKLY AND YEARLY.
Railroad
Stocks,
State.
Week Ended
Number of and Miscell. Municipal 81
Nov. 18 1932.
Bonds.
Shares.
Poen Bonds.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
888.752
1,307,345
1,048,980
947,435
709,040
728,290
81,201,000
1.782,000
1,828,000
1,589,000
1,784,000
1,910, 00
5.629.842 525.301.000 510.094.000
Sales at
New York Stock
Exchange.
Week Ended Nov. 18.
Stocks-No. of sharee.
Bonds.
Government bonds_ -State & foreign bonds_
Railroad & misc. bonds
Total
$2,976,000
4,594,000
4,560.000
4,630,000
3,752,000
4,789,000
United
States
Bonds.
Total
Bond
Sales.
$287,000
897,000
652,000
979,000
1,495,000
783,000
$4.464,000
7.273,000
7,040.000
7,198,000
7,031,000
7,482,000
55.093.000 540.488.000
Jan. Ito Nov. 18.
1932.
1931.
5,629,842
9.332,582
395.667,976
516,937,807
$5,093,000
10,094,000
25,301,000
$6,652,500
15,177,000
29,595,000
$527,717,350
669,180,600
1,463,695,000
$223,000,900
799,417,600
1.632.502,400
1932.
1931.
$40,488,000 $51,424,500 $2,660,592,950 $2,654,920,900
DAILY TRANSACTIONS AT THE BOSTON,PHILADELPHIA AND
BALTIMORE EXCHASGES.
Boston.
Wee* Ended
Nov. 18 1932.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
Total
Prey waok revised
Philadelphia.
Baltimore.
Shares. BondSales. Shares. BondSates. Shares. Bond Sates.
19,329
26,557
18,234
16,971
13,733
4,760
8500
7,200
39,000
7,000
1,000
4,000
99,580
$58,700
73,033
50 115
57000
71 535
0,0el
00
Union 15% points to 315% and Woolworth 13% points to 37.
On Thursday trading was the slowest in several weeks,
and as the list sagged many pivotal issues registered losses
ranging up to 2 or more points. Railroad shares were
particularly weak and were among the largest losers of the
day. Industrial stocks were also down, but the losses were
largely fractional. The recessions included among others,
Brooklyn Union Gas 25% points to 783
4, Detroit Edison 2
points to 78, Ingersoll Rand 13% points to 28, Liggett &
Myers 5 points to 54, United States Steel pref. 2 points to 73,
Delaware Lackawanna & Western 1 point to 275%, Colorado
Gas & Electric pref. A 25% points to 635%, American Tobacco
I% points to 63, Penick & Ford 15% points to 315% and
Industrial Rayon 13
4 points to 265%.
Trading was quiet and price movements were extremely
narrow on Friday. There was a very modest rally around
noon, but the advances made little impression on the list.
Railroad shares and industrial issues were stronger during
the forenoon, but flattened out as the day progressed. The
changes for the day were small, and with few exceptions,
were on the side of the decline. They included among
others American Can pref. 1 point to 119, American Smelting
pref. 15% points to 485%, Brooklyn Union Gas 15% points to
773%, Eastman Kodak 13% points to 523%. General Railway
Signal 2 points to 13, Norfolk & Western 35% points to 1015%.
United States Leather pref. 4 points to 50, and Auburn
Auto 1 point to 44. The market was easy at the close and
somewhat below the best for the day.
ac0.7--.;v3.1
-----
THE WEEK ON THE NEW YQRK STOCK EXCHANGE.
Trading in the stock market has been extremely quiet
and prices generally lower this week and while there have
been a number of brief rallies, they made little or no impression on the steady downward trend. Considerable liquidation has been in evidence and selling in the railroad group
has been rather heavy. Industrial shares also have been
weak, though the public utilities have been fairly steady.
Oil shares and motor stocks have shown little activity. Call
money renewed at 1% on Monday and continued unchanged
at that rate on each and every day of the week.
Stocks moved briskly forward during the two-hour session
on Saturday and while the advances were not especially
noteworthy, they carried most of the leaders to new tops for
the current movement. Realizing was in evidence early
in the session but this gradually simmered down as the day
progressed and was entirely absorbed as the session closed.
Atchison and Union Pacific were the leaders of the upswing
and Delaware & Hudson moved to the front around noon.
Industrial shares were represented in the advances by Allied
Chemical & Dye, American Can and Eastman Kodak, while
a host of other stocks showed lesser gains for the day.
American Telegraph & Telephone held well around the best
prices of the rally and United States Steel was steady during
most of the trading. Toward the end of the day the oil
stocks moved upward due to increased demand. Among
the best gains were American Smelting pref. 35% points to
3032, Allied Chemical & Dye pref. 13% points to 1193%,
J. I. Case 25% points to 463%, National Lead 4 points to 65,
Allied Chemical & Dye 15% points to 1193%, American Sugar
13% points to 25, Continental Can 13% points to 36%,
5 points to 18, International Silver I%
Goodrich pref. 4%
points to 193%, Union Pacific 15% points to .56, Standard
Gas & Electric pref. 3 points to 43 and North American pref.
I% points to 45.
The market turned reactionary as trading opened on
Monday and while the volume of selling was not particularly heavy, prices continued to move downward most of
the day and a goodly part of the gains of the previous week
were canceled before the close. Trading was unusually
quiet and, at times, the tickers remained silent. The
declines extended to all parts of the list and the losses ranged
from 1 to 3 or more points. The principal changes were
on the side of the declines and included among others,
3 Allied Chemical & Dye,
Air Reduction, 25
4 points to 57%;
23/i points to 793%; American Can, 2 points to 555%; Amer.
Tel. & Tel., 23 points to 110; American Tobacco B, 33%
points to 683/s; Atchison, 15% points to 445%; Atlantic Coast
Line, 2 points to 285%; Auburn Auto, 25% points to 454
3;
J. I. Case, 33% points to 43%; Central R. R. of N. J., 75%
points to 625%; Coca-Cola, 65% points to 84%; Columbian
Carbon, 23% points to 293
4; Delaware & Hudson, 35% points
to 62; Firestone pref., 35% points to 64; Homestake Mining,
5 points to 142; International Business Machine, 35% points
to 855%; National Lead pref. "B", 5 points to 60; Public
Service of N.J., 25% points to 453
4;Union Pacific, 35% points
to 7034; Western Union, 15% points to 335%; New York
Central, 15% points to 245
%, and Delaware Lackawanna &
Western, 25% points to 295%.
Prices moved backward and forward without definite
trend during the greater part of the session on Tuesday,
though toward the end of the day stocks displayed moderate
resistance due to late covering. Practically every group
was affected by the early selling and while the trading was
comparatively quiet, the declines ranged from 1 to 2 or more
points. The principal recessions of the day were Coca-Cola,
4; Ingersoll-Rand, 2 points to 295%; New
25% points to 813
York & Harlem, 3 points to 105; Norfolk & Western, 2
points to 107; Peoples Gas of Chicago, 33 points to 723
4,
and United States Steel pref., 13
4 points to 763%.
The market continued in its downward course on Wednesday, dividend uncertainties and increased liquidation bringing losses ranging from 1 to 4 points despite the rallies that
occurred from time to time during the session. The tone was
better, but trading was quiet most of the day. The losses
were widely distributed, the sharpest recessions occurring in
stocks like Amer. Tel. & Tel., American Can, United Aircraft, United States Steel and Union Pacific. Among the
outstanding declines were Air Reduction 2 points to 55,
4 points to 773/s, American &
Allied Chemical & Dye 23
Foreign Power pref. 35% points to 11, Amer. Tel. & Tel. 35%
points to 1075%, Atchison 2 points to 425/s, Atlantic Coast
Line 25% points to 21, Bethlehem Steel pref. 33% points to
353%, Delaware & Hudson 2 points to 60, R. H. Macy 45%
points to 36%, Union Pacific 25% points to 705%, Western
3475
689
1,061
673
617
854
514
85,000
4,000
3,100
13,500
4,000
3,000
$15,200
4,408
$32.600
55 200
&2g5
815000
$2,000
4,200
2,000
4,000
3,000
THE CURB EXCHANGE.
Irregular price movements have characterized the dealings
on the curb market this week, and while there have been
occasional periods of activity, trading as a rule has been
quiet and without noteworthy feature. Frequent waves of
selling appeared and many of the pivotal issues have been
under pressure, particularly those in the industrial group.
Power shares have been fairly active, though the advances
were small. Public utilities and specialties have been heavy
and generally meved to lower levels. Oil shares, on the
other hand, displayed moderate improvement. Prices held
fairly well in the face of profit taking on Saturday. Public
utilities were down in the early trading, but improved as
the session progressed. Electric Bond & Share was in good
demand and considerably speculative attention was directed
toward American Gas & Electric, Niagara Hudson and
Gas. Industrials were irregular, Aluminum Co. of America
dipping about 2 points during the first hour. Oil shares
were firm and so were the mining issues and investment
trusts. Selling was the feature of the trading on Monday
with the public utilities bearing the brunt of the declines.
Major losses were shown by such pivotal issues as Electric
Bond & Share, American Gas and United Gas pref., but a
part of these recessions were cancelled before the close.
Celanese pref. was conspicuous because of its movement
against the trend. Gulf Oil of Pennsylvania and Humble
Financial Chronicle
3476
Oil also moved contrary to the trend, though the gains were
not especially large.
On Tuesday most of the selling centered around the public
utilities, many of which showed losses ranging from 2 to 5
or more points. Industrials and specialties were irregular,
Atlantic & Pacific moving up about 63/i points, followed
by Aluminum Co. of America, with a loss of about a point.
On the other hand, Stutz Motor Co., Cord Corp. and Ford
of Canada A showed losses up to a point or more. Except
for a few inactive preferred issues which moved against
the trend, the curb market was lower on Wednesday.
Public utilities were the weakest and were off from 1 to 2
or more points on the day. Electric Bond & Share, for
instance, was off in the early trading because of the uncertainty regarding the dividend, but improved later in
the day. American Gas & Electric, Cities Service and
United Light & Power cony. pref. were irregularly lower,
while Niagara Hudson displayed considerable strength.
Movements among the industrial shares and specialties were
narrow, with the possible exception of Great Atlantic &
Pacific Tea, which broke about 6 points. Oil shares were
quiet and showed little activity, with the exception of Gulf
Oil of Pennsylvania, which declined nearly a point. Trading
was quiet on Thursday and price movements were without
definite trend. Leaders like Electric Bond & Share were
weak during the first hour, but attracted sufficient support
to bring about partial recoveries before the close. Power
shares were heavy due to sc,atttted liquidation. In the
public utilities group some of the preferred stocks were in
supply, while others made slight gains. Industrials were
mixed and unusually quiet, most of the activity centering
around Bulova Watch pref., which gained about 2 points,
and Celanese first pref., which climbed to its old high. Oil
shares were quiet and so were the mining stocks and investment trust shares. A. 0. Smith lost about a point
and Deere was under moderate pressure.
Pivotal utilities were slightly higher in the early trading
on Friday, but lost most of their gains before the close.
This was true also of some of the specialties and industrial
stocks. The general undertone of the market was somewhat
stronger, but the buying was limited and prices were unable
to make much progress upward. There were a few exceptions
however, particularly Bulova Watch pref., which reached a
new peak with a 4 point gain. Great Atlantic & Pacific Tea
was also strong and registered a gain of 6 points and Edison
4points for the day.
Illuminating of Boston scored a gain of 53
The changes for tie week are largely on the side of ths
decline and include among others, American Beverage 3 to
2%,Aluminum Co. of America 623' to 483', American Gas
& Electric 30 to 2734, American Light & Traction 183 to
1834, American Superpower 534 to 4%, Associated Gas &
Electric 3 to 23j, Atlas Corp. 8 to 73', Brazil Traction &
Light 834 to 83/8, Central States Electric 33/i to 23
4, Cities
4 to 73, Cord
4 to 334, Commonwealth Edison 787
Service 33
3s, Electric Bond &
Corp. 53 to 4%,Deere & Co. 103
% to 9/
Share 273
4 to 2234, Ford of Canada A 73 to 634, Gulf Oil
of Pennsylvania 33 to 31, Hudson Bay Mining 4 to 3%,
Humble Oil 46% to 453', International Petroleum 1034 to
10%, New Jersey Zinc 3234 to 31, Pennroad Corp. 23' to
13
4,Pennsylvania Water & Power 52 to 51%, A. 0. Smith
253( to 233
%, Standard Oil of Indiana 239 to 233., Swift
& Co. 8% to 85
%, Teck Hughes 33i to 3, United Founders
1% to 134, United Gas Corp. 2% to 23', United Light &
%
Power A 53/i to 4%, United Shoe Machinery 243/i to 243
and Utility Power 23. to 1%.
A complete record of Curb Exchange transactions for the
wcek will be found on page 3502.
DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE.
Week Ended
Nov. 18 1932.
Stocks
(Number
' of
Shares).
Ronda (Par Value).
Foreign
Foreign
Domestic. Government. Corporate.
Total.
Saturday
Monday
Tuesday
Wednesday
Thursday
Friday
124,410 $1,832.000
205.510 3,010,000
177.290 2,988,000
106,230 2,427,000
92,100 2,317,000
110,110 2,152,000
365,000
155,000
112,000
58,000
104,000
86,000
8179,000 $2,076,000
202,000 3,367,000
76.000 3,176,000
50,000 2,535,000
157,000 2,578,000
105,000 2,343,000
Total
815,650414,726,000
$580,000
$769,000 $16,075,000
Sales at
New York Curb
Exchange.
Week Ended Nov. 18.
1932.
1931.
1,269,202
815.650
Stocks-No,of shares_
Bonds.
$14,726,000 $13,564,000
Domestic
564,000
580,000
Foreign Government
769,000
446,000
Foreign corporate
$14,574,000
$16,075,000
Total
Jan. 1 to Nov. 18.
1932.
1931.
51,465,868
98,694,006
$762,708,100
28,561,000
53,962,000
$811,877,000
28,422,000
35,950,000
$845,231,100
$876,249,000
Nov. 19 1932
THE ENGLISH GOLD AND SILVER MARKETS.
We reprint the following from the weekly circular of
Samuel Montagu & Co. of London, written under date of
Nov. 2 1932:
GOLD.
The Bank of England gold reserve against notes amounted to £139.422,094 on the 26th ult., showing no change as compared with the previous
Wednesday.
Most of the gold available in the open market was secured for a destination not disclosed, but some of the purchases were also made on Continental
account. As a result of a sharp movement in the exchanges, adverse to
sterling, the price rose Is. 5d. on the 27th ult., being quoted at 1255. 8d.,
at which figure it remained for three days.
Quotations during the week:
Per Fine
Equivalent Value of
Ounce.
£ Sterling.
1258. 8d.
135. 6.2d.
Oct. 27
1255. 8d.
13s, 6.2d.
Oct. 28
1255. 8d.
13s. 6.2d.
Oct. 29
1258. 5d.
13s. 6.6d.
Oct. 31
1258. 5Sid.
13s. 6.5d.
Nov. 1
124s. 3d.
13s. 8.1d.
Nov. 2
1258. 4.2d.
Average
135. 6.6d.
The following were the United Kingdom imports and exports of gold
registered from mid-day on the 24th ult. to mid-day on the 31st ult.:
Imports.
Exports.
£2,434,425
£1,127,470 France
British South Africa
427.500
59,785 Netherlands
British West Africa
15,500
British India
574,978 Belgium
1,722
Other countries
Straits Settlements and
BrDependencies
68.488
54,000
12,410
Anglo-Egyptian Sudan
Iraq
10.372
26,224
Other countries
£2.879,147
E1,933.727
The SouthernRhodesian gold output for September last amounted to
50,198 fine ounces as compared with 49.254 fine ounces for August 1932
and 42,846 fine ounces for September 1931.
A press bulletin issued from the office of the High Commissioner of
Canada states that according to a report issued by the Dominion Bureau
of Statistics at Ottawa, the Canadian gold output in August last amounted
0262,590 ounces, an increase of 5.9% over the July production of 247,894
ounces. The.output for the first eight months of 1932 amounted to 2,011..304 ounces as compared with 1.724,089 ounces for the corresponding period
of 1931.
Gold to the value of about £617,000 was shipped from Bombay last week.
The SS. Rawalpindi carries £169,000 and the SS. Britannia £448,000, both
shipments being consigned to this country.
SILVER.
A rather firmer tendency has been shown and, owing to the continued
weakness of sterling at the beginning of the week, prices on the 27th ult.
rose sharply to 1834d. for cash and 18 3-160. for two months' delivery,
representing rises o %d. and 5-16d., respectively, as compared with the
quotations of the previous day. At about this level the market remained
steady, China support being very consistent and sellers inclined to hold
back, although there has been some reselling by speculators.
America, although less active than recently, has been more inclined to
buy than to sell.
The market appears steady at the present level, but the tendency is sal
uncertain in view of possible fluctuations in exchanges.
The following were the United Kingdom imports and exports of silver
registered from mid-day on the 24th ult, to mid-day on the 31st ult.:
Imports.
Exports.
British India
£26,425 Hongkong
£20,000
Canada
48,433 French Possessions in
Japan
11.588
India
5.500
20,404 Poland
Poland
24,055
19,200 Zanzibar and Pemba
Germany
2,000
6,800 Germany
Portuguese East Africa
1,979
3,544 Other countries
British South Africa
4,452
3.660
Other countries
E140,054
£57,986
Quotations during the week:
IN LONDON.
IN NEW YORK.
-Bar Silver per Or. std.Cash Dello. 2 Mos.' Del.
(Cents per Ounce .999 Fine)
18 3-16d.
Oct. 26
Oct. 27___1834d.
26 13-16
Oct. 27
Oct. 28_ --17 15-16d. 18 1-164.
26 13-16
1834d.
Oct. 28
Oct. 29---18%d.
27
1834d.
Oct. 29
Oct. 31-1854d.
27
1834d.
Oct. 31
Nov. 1_18 3-164.
27
18 3-16d.
Nov. 2__..18 1-164.
Nov. 1
27
18.198d.
Average__ .18.094d.
The highest rate of exchanfe on New York recorded during the Neriod
from the 27th ult. to the 2d Inst. was $3.33X and the lowest
INDIAN CURRENCY RETURNS.
(In Lacs of Rupees)
Oct. 22.
Oct. 7.
Oct. 15.
Notes in circulation
17,591
17,540
17,558
Silver coin and bullion in India
11,498
11,491
11.465
Gold coin and bullion in India
1,144
1,134
1,144
Securities (Indian Government)
4,949
4,915
4,949
The stocks in Shanghai on the 29th ult. consisted of about 124,000,000
ounces in sycee. 240.000,000 dollars and 4,480 silver bars as compared
with about 122,000,000 ounces in sycee,240,000,000 dollars arid 3.360 silver
bars on the 22d ult.
Statistics for the month of October last are appended:
-Bar Silver---- Bar Gold
Cash Delivery 2 Mos.' Del. per Oz. Fine.
1834d.
Highest price
18/d.
125s. 8d.
17 11-18d. 17 d.
Lowest
es price
119s. 2d.
Average
17.812d.
17. 11d.
121s. 4.7d.
!ENGLISH FINANCIAL MARKET-PER CABLE.
The daily closing quotations for securities, &c., at London,
as reported by cable, have been as follows the past week:
Sat.,
Mon.,
Tues.,
Wed.,
Thurs.,
Fri,
Nov. 12. Nov. 14. Nov. 15. Nov. 16. Nov. 17. Nov. 18.
17340.
18d.
Silver, p. oz_d_ 17340.
18d,
18340.
18340.
Gold. p.fine oz.1238.8%d. 1238.234d. 1238.113 0.1248.2310. 1248.1034d.1258.70.
76
Consols,2% %_ 76
7534
75
7334
7434
9834
99
British 5%.--- ---9834
9734
974
9934
9934
British 434%. 9934
9934
9934
9934
French Rentes
(in Paris)79.80
79.20
78.50
78.50
78.70
French War L'n
fin Parlid,5%
121.20
120.60
1920 amort__ ____
120.10
120.10
120.30
The price of silver in New York on the same days has been:
Silver in N. Y..
per oz. (ets.) 2734
27
27
27
2634
2634
THE BERLIN STOCK EXCHANGE.
The Berlin Stock Exchange resumed trading on Friday,
April 29 1932 after having been closed by Government decree
since Sept. 18 1931. Prices suffered heavy declines. Closing
prices of representative stocks as received by cable each day
of the past week have been as follows:
Nov. Nov. Nov. Nov. Nov.
16.
17.
15.
14.
12.
Per Cent of Par
126
126
127
(12%)
Reichsbank
90
90
91
Berliner Handels-Gesellschaft (4%)
53
53
53
Commerz-und Privat-Bank A. G.
75
75
75
Disconto-Geselischaftund
Deutsche Bank
62
62
62
Dresdner Bank
90
90
90
Deutsche Reichabahn (Ger. Rya.) pf.(7%).
31
32
33
Aligemeine Elektridtaets-Ges. (A.E.G.)105
Hon- 104
Roll- 107
Berliner Kraft U. Licht (10%)
92
93
day
94
day
Dessauer Gas (7%)
70
70
70
Gesfuerel (4%)
99
99
99
Hamburg. Elektr.-Werke (854%)
117
118
117
Siemens & Halske (9%)
94
94
95
I. G. Farbenindustrie (7%)
163
162
162
Salzdetturth (9%)
172
Rheinischo Braunkohle (10%)
74
73
74
Deutsche Erdoel (4%)
52
53
52
Mannesmann Roehren
16
17
16
Hapag
17
17
-Norddeutscher Lloyd
Nov.
18.
126
89
53
75
62
90
31
105
92
71
100
120
95
166
178
74
53
16
17
In the following we also give New York quotations for
German and other foreign unlisted dollar bonds as of
November 18 1932.
Anhalt 75 to 1946
Argentine 5%, 1945. 8100pieces
Antioquia 8%, 1946
Bank of Colombia, 7%.'47
Bank of Colombia. 7%.'48
Bavaria 6348 to 1945
Bavarian Palatinate Cons.
Cit. 7% to 1945
Bogota (Colombia) 634,'47
Bolivia 6%, 1940
Brandenburg Elea. 68, 1953
Brazil Funding 5%,'31-.51
British Hungarian Bank
750, 1962
Brown Coal Ind. Corp.
6348. 1953
Cali (Colombia) 7%, 1947.
Callao (Peru) 73.4%, 1944,
Ceara(Brazil) 8%, 1947..
CitySavings Bank, Budapest, 75. 1953
Deutsche Bk 6% '32 unst'd
Dortmund Mun. Util 68,'48
Dulaberg 7%to 1945
Dusseldorf 78 to 1945
East Prussian Pr. 65,1953_
European Mortgage & Investment 7348. 1966French Govt. 5348. 1937_
French Nat. Mail SS.68.'52
Frankfurt 7s to 1945
German AU. Cable 78, 1945
German Building & Landbank 650%. 1948
Haiti 6% 1953._ ____
Hamb-Am Line 6l4s to '40
Hanover Harz Water Wks.
6%, 1957
HoustIng & Real Imp 7s.'46
Hungarian Cent Mut 7e,'37
Hungarian Discount & Exchange Bank 78, 1963_
Hungarian Hal Bk 734s,'32
3477
Financial Chronicle
Volume 135
Ask
Bid
3712 4112 Koholyt Ohs. 1943
Land M Bk, Warsaw 8s,'41
60 Leipzig Oland P1 6348,'46
56
1612 1912 Leipzig Trade Fair 78, 1953
24 Luneberg Power, Light &
22
22
24
Water 7%, 1948
Mannheim & Palat 75, 1941
44
47
Munich 7s to 1945
42 Muni° Bk,Hessen,7s to'45
38
115
18 Municipal Gas & Elec Corp
Recklinghausen, 78, 1947
11
54
55 Nassau Landbank 6548.'38
33 Nat Central Savings Bk of
31
Hungary 7548, 19623112 National Hungarian & Ind.
12912
Mtge.7%,1948
5412 5512 Nicaragua, 5%, 1953
912 Oberpfalz Mee 7%, 1946/612
1612
812 Oldenburg-Free State 7%
/212
to 1945
Pomerania Elec 6%, 1953.
/28
2912 PortoAlegre 7%, 1968....
/8312 8512 ProtestantChurch (Ger36
many) 78, 1946
38
35
39 Pray Bk Westphalia 6s,'33
42 Rhine Westph Elec 78, 1930
37
4412 4612 Rio de Janeiro 6% 1933
Rom Cath Church 634s,'46
,f38
3912 R C Church Welfare 78.'46
104
106 Saarbrueeken M Bk 65,'47
10412 10512 Salvador 7%, 1957
35
39 Santa Catharine (Brazil)
60
67
8%. 1947
Santander (Colom)78, 1948
4217, 4412 Sao Paulo (Brazil) 68. 1947
67
72 Saxon Public Works 5% '32
68 Saxon State!Mtge 6e, 1947_
54
Mem & Betake deb 68, 2930
37
3912 South Amer,Rys6%,1933_
50
63 Stettin Pub Util 7e, 1946_
3012 Tucuman City 78, 1951
129
Vamma Water 5348, 1957.n14 23 Vesten Elec Ry 7e. 1947_ _
78 Wurtenberg 78 to l945._
174
Bid
44
54
54
40
Ask
49
59
56
43
Four Months
--Month of October1931.
1931.
1932.
1932.
General Funds.
$
$
$
$
ReceiptsInternal revenue13,627,863 25,284,502 187,768,363 339,121,623
Income tax
Miscellaneous internal revenue 78,007,192 46,561,530 247,735,169 189,661,371
91,635,055 71,846,032 435,503,532 528,782,994
Total
24,744,027 35,175,423 93,671,357 143,395,372
Customs
Miscellaneous receipts-Proceeds of Government-owned
securitiesPrincipal-foreign obliga'n.s_
Interest-foreign obligations
185,246
186,153
191,098
Railroad securities
897.670
7,883,314
2,228,980
9,065.371
4,458,901
All others
1.193,115
2,199,963 6,223,460 8.368,799
Panama Canal tolls, &c
2,759,844
3,817,390 14,703,559 17,725,933
Other miscellaneous
128,400,601 115,453,941 559,353,377 703,629,674
Total
Expenditures192,646,238
General
Public debt139,529,685
Interest
Sinking fund
Refunds of receipts852,246
Customs
5,845,170
Internal revenue
10,000,000
Postal deficiency
770,534
Panama Canal
Subscription to stock of Federal
Land banks
Agricultural marketing fund(net) 6,276,735
Distribution of wheat and cotton
for relief
Adjusted-service etf. fund
Civil service retirement fund_
Foreign service retirement fund_
District of Columbia (see note 1)-
42
45
12
12
37
N12
42
42
56
45
59
13
128
012
4
28
0
Excess of receipts
Excess of expenditures
20
45
30
47
39
4212
f6'2
42
4512
9
Special Funds.
ReceiptsApplicable to public debt retirementsPrincipal-foreign obliga'ns.
Interest-foreign obligations
From estate taxes
From franchise tax receipts
(Federal Reserve banks and
Federal Intermediate Credit
banks)
From forfeitures. gifts, &c.__.
Other
39
53
54
17
57
41
68
/1414
41
56
56
ill2
42
75
1534
2
.
/612
/11
914
714
C8
5
58
54
320
295
45
44
47
50
15
12
74
71
36
34
4512 4912
/6
IFlat price.
Nov. 12 Nov. 14
1932.
1932.
Francs. Francs.
Bank of F^ance
11,600
Banque de Paris et Pays Bea-1,490
400
Banque d'Union Parislenne___
Canadian Pacific
377
Canal de Suez
15,300
Cie Distr d'Electricite
2,105
2,090
Cie Generale d'E ectricite
Cie Generale Transatlantique_
60
Citroen 13
479
Comptoir Nationale d'Escompte
1,140
Coto ine
190
Courrteres_
356
Credit Commercial de France__
678
4,680
Credit Fonder de France
Credit Lyonnais
2,030
Distribution d'Electricite la Par
2,090
Eaux Lyonnais
2,160
Energie Electrique du Nord --__
640
Energie Electrique du Littoral,.
980
French Line
60
Galeries Lafayette
94
IIOLIGas Le Bon
750
Kuhlmann
DAY
480
L'Air Liquid°
790
Mines de Courrieres
360
446
Mines des Lena
1,490
Nord Ry
Orleans Ry
950
1,130
Paris, France
104
Paths Capital
1,120
Pechiney
79.80
Rentee 3%
121.20
Rentes 5% 1920
94.10
Rentea 4% 1917
97.10
Rentee 5% 1915
1,560
Royal Dutch
1,450
Saint Cobain C. & 0
1,230
Schneider & Cie
480
Societe Andre Citroen
110
Societe Francalse Ford
189
Societe Generale Fonder°
2,190
Societe Lyonnais°
610
Societe Mareellialse
15,300
Sues
163
Tublze Artificial Silk, pref
790
Union d'Electricite
Union des Minos
76
Wagon-Lite
Nov. 15
1932.
Francs.
11.500
1,490
399
369
15,310
2.095
2,070
59
Nov. 16
1932.
Francs.
11,300
1,460
385
368
15.440
2,050
2,055
57
4751,ii5
1,140
180
180
354
357
668
674
4,660
4,690
1,990
2,020
2,096
2,070
2,150
2,140
635
630
990
966
59
57
95
97
740
760
480
490
780
790
350
370
460
460
1,470
1,440
942
958
1,100
1,110
110
112
1.130
1,140
79.20
78.70
120.60 120.10
94.10
93.00
96.70
96.10
1,520
1.530
1.435
1.430
1,275
1,300
470
470
107
108
186
184
2,165
2,140
610
610
15,300 15,400
161
156
770
780
210
76
74
Nov. 17
1932.
Francs.
11.300
1,450
384
359
15,450
2,040
2,030
55
460
1,120
180
343
654
4,620
1.960
2,030
2,120
625
956
56
95
740
480
780
340
450
1,450
962
1,100
100
1,120
78.80
120.10
93.00
95.70
1,490
1,428
1,290
460
107
180
2,125
610
15.400
152
780
200
72
Nov. 18
1932.
Francs,
11,300
1,460
-557
1:156
180
4-;53
.5
1.970
2,040
2,120
---43
95
730
480
770
340
440
1,440
1.
..120
1:110
78.50
120.30
93.00
95.60
1,500
-iio
101
176
----
Total
ExpendituresPublic debt retirements
Other
a100,830
10,057,351 a10,592,160 86,333,448
816,787
100,000.000
20,850.000
416,000
7,775,000
20.850,000
215.000
9,500,000
1,331,860
4,032,355
7.000
7.518,391
11,289,067
1,331,860
4,032,355
7,525,391
11,289,067
1,752,981
9,609,761
7,000
6,944.474 24,744,177
1,752,981
9,609,761
6,951,474
1
Total
Excess of receipts
Excess of expenditures
24,744,177
573.917
421.121
5,577,406
13,455,110
Summary of General and
Special Funds.
128,400,601 115,453,941 559,358,377 703,629,673
Total general fund receipts
7.525,391 11,289,067
1.331,860
4,032,355
Total special fund receipts
129,732,461 119,486,296 566.883,768 714.918.740
Total general fund expenditures_.355,920,609 396,078,938 1189821,387 1364750,524
1,752,981
9,609,761
6,951.474 24,744,177
Total special fund expenditures
357,673,590 405,688,699 1196772,861 1389494,701
Total
Excess of receipts
Excess of expenditures
227,941,129 286,202,403 629,889,093 674,575.961
Trust Funds.
ReceiptsDistrict of Columbia
Government life insurance
Other
Total
8.298,766
6,121,310
3,851.026
18,271,102
ExpendituresDistrict of Columbia (see note 1)_
Government life insurance fundPolicy losses, &c
Investments
Other
8.609,869 12,952,827 14,363,932
6,186,550 25,388,592 25,575,541
365,969 14,521,242
2,429,414
15,162,388 52.862,661
42,368,887
3,490,062
4,410,031
1,944,149
3,515,728
6.534,083
2,128,407
3,967,836
277.427
8,205,683
8,410,802
16.343,279 19,038,590
17,429,858
4,467,988
15,534,922
10.783,701
47,133.528 38,107.174
5,154,708
6.189,794
Excess of receipts or credits
2,736,180
4,378,687
5.729,133 4,261,713
Excess of expenditures
Receipts and expenditures for June reaching the Treasury in July are Included.
a Excess of credits (deduct).
Note 1.-Expenditures for the District of Columbia representing the share of the
United States are charged against the amount to be advanced from the general
fund until the authorized amount is expended. After that they are charged agatnst
the revenues of the District under trust funds. For total expenditures the items
or District of Columbia under general fund and under trust funds should be added.
Treasury Cash and Current Liabilities.
The cash holdings of the Government as the items stood
Oct. 31 1932 are set out in the following. The figures are
taken entirely from the daily statement of the United States
Treasury as of Oct. 31 1932.
AssetsGold coin
Gold bullion
15,41313
-770
CURRENT ASSETS AND LIABILITIES,
GOLD.
LiabilWes967.540,963.98 Gold certificates outurg..1,344,038,859.00
2,082,208,942.12 Gold fund, Fed. Ree've
Board (Act of Dec. 23
1913, as amended
June 21 1917)
1,471,387.067.37
Gold reserve
156,039,088.03
Gold in general fund
78,284,891.70
210
Government Receipts and Expenditures.
Through the courtesy of the Secretary of the Treasury
we are enabled to place before our readers to-day the details of Government receipts and disbursements for October
1932 and 1931 and the four months of the fiscal years
1932-1933 and 1931-1932:
1,482,703
3,657,635
5.765,810
5,618,093 22,718,903 28,596,106
20,000.000 40,078.598 65,000,000
769.631
3,923,956
4,108,007
227,520,007 280,624,997 630,463,010 661,120,850
Total
2,030
--- _
134,180,469 212,616,074 180,599.978
355,920,608 396,078,938 1189821.387 1364750.524
Total
Total
PRICES ON PARIS BOURSE.
Quotations of representative stocks on the Paris Bourse
as received by cable each day of the past week have been
as follows:
223,970,690 787,661,474 963,732,175
Total
Total
3,049,749,906.10
3,049.749,906.10
Note.-Reserve against $346.681.016 of United States notes and $1,218,700 of
Treasury notes of 1890 outstanding. Treasury notes of 1890 are also secured by
silver dollars in the Treasury.
SILVER DOLLARS.
AmuLtabtlined-••
$
Silver dollars
501,332,318.00 Silver etre. outstanding. 489,343,230.00
Treasury notes of 1890
1,218,700.00
outstanding
10,770,388.00
Sliver dolls. In gen. fund
Total
501,332,318.00
Total
501,332,318.00
3478
Financial Chronicle
GENERAL FUND.
Asia:—
LiabilitiesGold (see above)
78,284,891.70 Treasurer's checks outSilver dollars (see above) 10,770,388.00
standing
303,553.77
United States notes
3,250,176.00 Depos. of Govt. officers:
Federal Reserve notes_
4,857,685.00
Post Office Dept
3,682,185.16
Fed. Res. bank notes
15,854.00
Board of Trustees,
National bank notes
17,641,189.00
Postal Savings ByeSubsidiary silver coin
12,206.547.75
temMinor coin
5,114,003.10
5% reserve, lawSilver bullion
17,892,588.65
ful money
17,008.299.05
Unc I &eel f ied—ColleoOther deposits.__
9,083,045.77
tions, &c
845,055.18
Postmasters, clerks of
Deposits in F. R. banks. 44,986,004.63
courts, disbursing
Deposits in special deofficers, Arc
46,520,273.67
positaries account ol
Deposits for;
sales of Trees bonds,
Redemption of F. 11.
Treas. notes and ctfs.
43,101,646.32
notes (5% Id., VIM
of Indebtedness
Redemption of Nat'l
687,912,000.00
Deposits in Nat banks:
bank notes 15% Id..
To 'red. Treas. U FL_
lawful money)
7,566,691.98
35,721,245.82
To cred. of other GovRetirement of 1)&1'1
ernment officers_
19,500,979.51
circulating notes,
Deposits In foreign dep.:
Act May 30 1908_
1,350.00
To credit Treas. U S.
275,543.50 Uncollected Items, exTo cred of other Gov3,402,933.93
changes, &C
ernment officers
1,093,927.43
Deposits in Philippine
158,824,533.49
Treasury:
754,730.499.30
Net balance
To cred. Treas. U.£8...
1,321,507.36
Total
913,555,032.79
Total
913,555,032.79
Note—The amount to the credit of disbursing officers and agencies to-day was
$349,890,863.92.
Under the acts of July 14 1890, and Dec. 23 1913, deposits of lawful money for
the retirement of outstanding national bank and Federal Reserve bank notes are
Paid into the Treasury as miscellaneous receipts, and these obligations are made,
under the acts mentioned, a part of the public debt. The amount of such obligations
to-day was 576.780,197.
$952,530 In Federal Reserve notes and $17,599,279 in national-bank notes are
in the Treasury in process of redemption and are charges against the deposits for
the respective 5% redemption funds.
CURRENT
NOTICES.
—Ernest Caldwell van Dyke, formerly for a brief period, a member of
the staff of the Commercial & Financial Chronicle, died on Nov. 12 of
influenza at Albuquerque, N. M. He Was 53 years old. Mr. van Dyke,
who had once been in the employ of the National City Bank of New York,
later joining the staff of the Chronicle, had been on the staff of the "Wall
Street Journal" as railroad editor and bond editor for 13 years. During
the World War he helped publicize the Liberty bond issues. At the time
of his death. Mr. van Dyke was President of E. C. van Dyke. Inc., a
financial advertising company, but had not been active recently.
—Trimble & Co.. members New York and Philadelphia Stock Exchanges,
1326 Walnut St., Philadelphia, have prepared an analysis of General
Electric common stock. Copies are available for general distribution upon
request.
CommercialantlWiscellaneonsRCIUS
Bank Notes—Changes in Totals of, and in Deposited
Bonds, &c.
We give below tables which show all the monthly changes
in National bank notes and in bonds and legal tenders on
deposit therefor:
Amount Bonds
on Deport!to
Secure Circula
Ion for National
Bank Notes.
Oct. 31 1932
Sept.30 1932
Aug. 31 1932
July 30 1932
June 30 1932
May 31 1932
Apr. 30 1932
Mar. 31 1932
Feb. 29 1932
Jan. 30 1932
Dec. 31 1931
Nov. 30 1931
Oct. 31 1931
799,672,590
780,377.630
793,600.490
872.408,440
670.487.590
609,827,590
668,882,490
667.669,240
664,944.440
660,409,240
686,474,590
660,625,090
665.255.340
National Bank Circulation
Afloat on—
LeOal
Tenders.
Bonds.
787,913,945
769,831.107
719,829,513
667,831,250
669,570.345
668,580.423
666,472,241
666.238.578
665.138,348
654,580,738
664,798.311
858,491.916
685,182.578
75,161.955
62,191.678
63.576,840
66,046.173
67,103.868
70,03(1,500
71,523,840
71,7(10,685
67,238,875
61,183.878
45.813.585
43.890.465
33,826.453
Total.
863,075,900
832.022,785
783.406,353
733.877,423
736,674.213
738,616,923
737,996.081
737.939,263
732.377.223
715.764,616
710.611.896
702,388.381
699,099,031
$2,694,012 Federal Reserve bank notes outstanding Nov. 1 1932, secured by
lawful money, against $2,921,272 on Nov. 2 1931.
The following shows the amount of each class of United
States bonds and certificates on deposit to secure Federal
Reserve bank notes and National bank notes Oct. 31 1932:
U. S. Bonds Held Oct. 31 1932 to Secure—
Bonds on Deposit
Oct. 1 1932,
On Deposit to On Deposit to
Secure
Secure Federal
Reserve Bank National Bank
Notes.
Notes.
2s, U. S. Consols of 1930
28, U. S. Panama of 1936
23, U. S. Panama of 1938
3s, U. S. Treasury of 1051-1955
3348, U. S. Treasury of 1946-1949
5e s, U.S. Treasury of 1941-1943
3/
3348, U. S. Treasury of 1940-1943
3388, U. S. Treasury of 1943-1947
38. U. S. Panama Canal of 1961
3s, U. S. convertible of 1946-1947
Totals
Tore!
Held.
591,369.700
47,795,160
25.701,780
33,579,450
28,345,200
28,719,400
17,640.950
25.519,950
1,000
1.000,000
591,369,700
47,795,160
25,701.780
33.579.450
28.345,200
28,719,400
17,640,950
25,519,950
1,000
1,000,000
799,672.590
799,672,590
The following shows the amount of National bank notes
afloat and the amount of legal tender deposits Oct. 1 1932
and Nov. 1 1932 and their increase or decrease during the
month of October:
National Bank Notes—Total Afloat—
Amount afloat Oct. 1 1932
Net Increase during October
Amount of bank notes afloat Nov. 1
Legal Tender Notes—
Amount on deposit to redeem National bank notes Oct 1
Net amount of bank notes issued in October
Amount on deposit to redeem National bank notes Nov. 1 1932
$832,022,785
31,053,115
$863,075,900
$62,191,678
12,970.277
$75,161,955
Nov. 19 1932
San Francisco Stock Exchange.—Record of transactions at San Francisco Stock Exchange, Nov. 12 to Nov. 18,
both inclusive, compiled from official sales lists:
Stocks—
Friday
Sales
Last Week's Range for
Sale
of Prices.
Week.
Par. Price. Low. High. Shares.
Alaska Juneau Gold Min__
123.1
Anglo Calif Nat 13k of S 1,_
Assoc Insurance Fund____
1
Bank of California
Colombo. Sugar
834
California Packing
1034
Calif Water Serv pre
65
Calif Weat Sts Life Ins
Voting Plan
Caterpillar
8
Coast Cos G&E 6% lot pfd 82
Cons Chemical Indus A
Crown Zeller v to
Preferred A
1034
Preferred 13
Eldorado 011 Works
103%
Fageol Motors
7% preferred
Fireman's Fund Insurance_
42
Food Mach Corp
634
O.. 611% preferred
65
Foster & Kleiser
134
Hawaiian C & S Ltd
Hawaiian Pineapple
Home F & SI Insurance.._
Investors Assoc
Langendorf United Bak A_
Leslie Calif Salt
Louisiana G & E Pref
92
Lyons Magnus A
531
Magnavox Ltd
North Amer Inc common
6% preferred
North Amer 011 Cons
43%
Occidental Insurance
1034
Oliver United Filters B
__ __ _
Pacific Gas
37%
6% 1st preferred
24
2134
534% preferred
Pacific Lighting Corp
• 6% preferred
Pao l'ub Serif non-vot pref.
611
Pacific Telephone
80
Is 6% preferred
Paraffine Co
Pig'n Whistle pref
Rainier Pulp & Paper_ _ _ _
614
Richfield
7% preferred
San J L & Pow 7% pr pref. 100%
6% prior preferred
84
Schlesinger preferred
Shell Union
538
Sherman Clay prior pref.__
68
Sierra Pug Elec 6% pref.__ __
Southern Pacific
1934
Sou Pacific Golden Gate A_
53%
Standard 011 California...
Thomas Allec Corp A
___ _
Tide Water Assd 011 corn_
4
6% preferred
Transamerica
5%
Union Oil Assoc
1134
Union 011 California
1131
Union Sugar 7% preferred_
Wells Fargo Bk & U T.
Western Pipe & Steel Co__
1134 1234
2231 23
1
134
150 150
834 831
1034 12
65
65
34% 3531
3434 3414
8
93.4
82
8234
14% 1434
13%
134
103.1 11
10
1034
1031 1034
18
34
34
18
40
44
634 634
65
65
134
114
2931 293
%
331
4
25
25
314 334
7
7
1134 II%
92
9331
534 535
31
31
4% 434
15
15
441 5
1034 1031
1%
I%
2734 283%
24
2434
2134 2134
3734 39
90
9034
614 934
8034 82
10534 106
1141 1134
1
134
634 634
31
31
fi
34
1,060
100
1,300
25
224
1.325
10
60
8
3,246
11
200
408
125
555
200
400
230
125
10
100
100
681
5
100
100
210
115
608
1,450
170
10
1.020
30
100
3,855
1,745
1,316
866
230
6,335
385
17
180
202
130
635
1,200
100 100
408
84
84
16
2
234
50
534 634
1,152
68
68
35
63
70
25
1834 2231 3,979
531 611
435
2534 2734 2,985
234 214
140
4
4
100
46
46
15
514
5I
,44,937
1134
11
871
II
1134
932
14
14
6
190 19814
45
938 934
215
Range Since Jan. 1.
Low.
High,
8
June 1634 Jan
1531 Aug 2431 Sept
1
Apr
23% Feb
99 Slay 162
Jan
6
June 15
Sept
434 June 183
% Sept
55 June 73
Sept
30
July 3634 Oct
30
July 36
Oct
15
Jan
41.4 may
70 June 96
Jan
834 May
173% Feb
1
234 Aug
June
8.14 May
Aug
19
1
June 19
Aug
931 June 1341 Aug
14 Feb
31 Jan
% Mar
14 Jan
18 June 50
Sept
4
Slay
11
Feb
Jan
65
Nov 85
Sept
15 June 25
1834 June 36
Jan
334 Oct
934 Jan
13
Sept
May 28
134 Jan
434 Sept
6
Apr 11
Aug
1114 Sept
634 Jan
Jan
65
May 100
234 Jan
0
Sept
134 Feb
34 Jan
2
Feb
5
July
5 June 21
Sept
234 June
514 Aug
514 May
133% Aug
34 June
3
Aug
1634 June 3631 Feb
1934 June 2634 Jan
1734 June 2434 Jan
2134 May 4634 Aug
6334 May 95
Jan
5 June 1431 Mar
5834 June 104
star
85
may 112
Jan
5 1May 2534 Jan
li Sept
114 Jan
534 June
934 Jan
% May
I
July
4 Jan 1 July
63 June 107
Jan
58 June 96
Jan
1
may
11
Feb
23% Apr
831 Sept
40
Apr 70
Oct
54
July 76
Feb
634 June 3731 Jan
534 Aug
1138 Mar
1531 June 3134 Sept
23.4 Slay
434 Feb
2
Apr
534 Sept
20
Feb 60
Sept
234 Jan
7
Sept
7
July
14
Sept
734 July
1531 Sept
12
May
14
Nov
139
May 210
Sept
7
Job/ 20
Feb
St. Louis Stock Exchange.—Record of transactions
at
St. Louis Stock Exchange, Nov. 12 to Nov.
18, both inclusive, compiled from official sales lists:
Stocks—
Friday
Sales
Last Week's flange for
Sale
Of Prices.
Week
Par. Price. Low, High. Shares.
Brown Shoe common __• 32
32
32%
Bruce (E I.) pref
ioo
20
20
Emerson Electric pref..100
35
35
Iluttig S & D common....
234
2% 2%
International Shoe com_ • 2531
25% 26
Preferred
16
0
101% 101%
Johnson-S- Shoe com
•
17
17
McQuay-Norris common.•
25
25
Michigan-Davis corn
•
3% 3%
Mo Portl Cement com__25
6%
6
7
National Candy coin
6
6
Pickrel Walnut corn
65e 65c
Rice-Stic Dry Goods corn_•
3
3
3
First preferred
100
70
70
Scullin Steel pref
241 2%
Southwest'n Bell Tel p1..100 115
113% 115
Stlx Baer & Fuller corn_ •
6
Wagner Electric corn.___15
614
641 6%
Bonds—
Nat Bearing Metals 68.1947
Scullin Steel 08
1941
•No par value.
75
16
75
10
Range Since Jan. 1,
Low.
160 24
65 20
5 35
200
2%
102 2034
2 99%
50 12%
55 21
85
3%
130
5
10
338
10 65o
5
2
100 70
100
111
159 100
60
441
148
4%
51,000
1,000
75
16
High.
July 36%
Nov 30
Nov 70
Nov
23%
July 43%
July 105
20
July
Aug 35
3%
ov
Nov
15
9
May
Nov
134
July
6
Nov 75
441
Aug
June 115
931
July
July
944
Mar
Feb
Feb
Nov
Jan
Mar
Oct
Feb
Nov
Feb
Mar
Sept
Sent
Nov
Oct
Nov
Jan
Feb
Nov
Nov
Nov
Feb
75
35
Auction Sales.—Among other securities,
the following,
not actually dealt in at the Stock Exchange, wore sold
at auction
in New York, Philadelphia, Boston and
Buffalo on Wednesday of this week:
By Adrian H. Muller & Son, Now York:
Shares.
Stocks.
$ per Sh.
488 National Bank of Queens County, Flushing, N.
Y,
.Par 550
1014
480 Munsch Protzmann Co. (N. Y.), Par $50
1.05
500 Chemical Industries Corp. (Del.) common, no
par
$10 lot
48 Henry Klein dr Co., Inc., participating
preferred.
Par
$20
Fry Holding Corp. (Del.), no par _____
lot
50 United States Rayon Corp., pref., no par; .
55 c-Oin:51112)
20 Shaffer Box Co., preferred, par $100; 10 common n7iOn -iccI.______
no
par
$46
lot
66 2-3 Goodsite Realty Co., Inc., common
$25 lot
76 McAllister Motors Corp., no par
$
50 Lawrence Manufacturing Co., Inc., no par
514
0 lot
3 Young's Hats, Inc.. preferred, par $1 0
$8 lot
25 Metropolitan Chain Stores, Inc., common, no par
$11
lot
40 Finance Corp. of America, common, v. t. c., no
par; 40 pref., no par
$7 lot
5 Gotten Publishing Co., pref., par 5100 2% common,
no par____________ 571lot
____________________
50 Amsterdam, Inc., preferred, no
par $100
$500 lot
400 Amsterdam, Inc., common,
par
Bonds—
er
$50,000 Waynesburg Products Corp. class A lot mtge. 5%
gold bonds, due
March 15 1927. Sept. 1925 & sub, coupons attached
$128 lot
Financial Chronicle
Volume 135
3479
By Barnes & Lofland, Philadelphia:
Stocks.
$ per Sh.
Shares.
$1 lot
3 Wood Street Holding Co
$75 lot
5 Beatrice Building and Loan Association (3rd series)
$125 lot
10 Beatrice Building & Loan Association (5th series)
5 Beatrice Building & Loan Association (4th series)
$70 lot
$35 lot
2% Beatrice Building & Loan Association (5th series)
$15 lot
Interest In 5 shares Beatrice Building & Loan Association (2d aeries)
$65 lot
Interest in 5 shares Beatrice Building dr Loan Association
$68 lot
5 Federation Building Sc Loan Association (10th series)
$65 lot
5 Federation Building Sc Loan Association (12th series)
$300 lot
50 Federation Building & Loan Association (22d series)
145 lot
5 Federation Building and Loan Association
$200 lot
1234 Federation Building dr Loan Association
$70 lot
5 Federation Building & Loan Association
$65 lot
5 Federation Building dr Loan Association
855 lot
5 Federation Building & Loan Assocaltion
Right, title and interest in subordinated interest, to the extent of $1,000, in
bond and mortgage (mtge. book J. M. H., No. 4777, p. 419) of $7,000,
secured on premises 3929 Baring St. Philadelphia
us lot
$25 lot
5 Brith Achin Building Sc Loan Association (13th series)
$7,945 lot
200 Ideal Shoe Co., pref
$1,965 lot
35 Ideal Shoe Co.,common
$280 lot
70 Ideal Construction Co., class B
$100 lot
20 Ideal Construction Co., class A
$75 lot
100 Rosner-Rubln Co
$2 lot
25 Ideal Bond & Mortgage Co
64
14 Philadelphia National Bank, par $20
28
30 Central-Penn National Bank, par $10
152
2 Tradesmens National Bank Sc Trust Co., par $100
4134
20 Corn Exchange National Bank & Trust Co., par $20
48%
25 Pennsylvania Co. for Ins. on Lives & Granting Annuities, par $10
14
33 Integrity Trust Co., Par $10
85
100 Camden Safe Deposit & Trust Co., Camden, N. J., par $25
25
10 Fire Association of Philadelphia, Par $10
44
10 Philadelphia City Passenger Ry. Co., par $50
1
34 Victoria Finance Corn
2
40 Philadelphia Company for Guaranteeing Mortgages
3
1,250 Liebert dr Obert Brewing Co
BondsPer Cens.
$2,500 Fox Theatre & Office Bldg., Brooklyn, N. Y., 64% 1st mtge., due
1941, certificate of deposit
7% flat
$1,000 Monterey Apartments, New York, 6% 1st mtge. dv leasehold, due
1936, certificate of deposit
8 flat
$2,000 Rosy Theatre, New York,6%% 1st mtge., due 1940, ctf. of deposit_20 flat
55,000 19th & Walnut Streets, Phila.,6% 1st mtge., due 1937, ctf. of dep
_13 flat
$1,000 Durant Motors Co. Bldg., Elizabeth, N. J., 64% 1st mtge., due
1934, certificate of deposit
744 flat
By R. L. Day & Co., Boston:
Stocks.
Shares.
per Sh.
7 Winnisimmet RR. Co., par 350;6 Boston & Revere Electric Street Ry. Co.,
East
24
Middlesex
$100;
Street Ry. Co., Par $100
$1,550 lot
Par
80
116 Old Colony RR., Par $100
24
160 Boston Ground Rent Trust, Dar $100
22 Silas Peirce & Co., Ltd., Pref.; 70 common
$25 lot
40
100 Crown Manufacturing Co., Par $100
5,883 Fourth & First Banks, Inc., of Nashville, Tenn., par $20
$70,000 lot
338
1 Boston Insurance Co., Par $100
$20 lot
25 Kidder Peabody Acceptance Corp. 2d pref., par $100
44
4 Dennison Manufacturing Co. 8% debenture, par $100
BondsPer Cent.
$1,000 Boston & Albany RR. 5s, July 1938
84
$15,000 Hotel Charles 545, Sept. 1953
$750 lot
By A. J. Wright & Co., Buffalo:
Stocks.
Shares.
500 Adargas Mines, par 1 peso
International
Corp., common, par $1
5 Angel
Per Sh.
50e. lot
20e. lot
DIVIDENDS.
Dividends are grouped in two separate tables. In the
first we bring together all the dividends announced the
current week. Then we follow with a second table, in
which we show the dividends previously announced, but
which have not yet been paid.
The dividends announced this week are:
Name of Company.
Per
When
Cent. Payable.
Railroads (Steam).
Alleghany & Western (s.-a.)
Jan. 1
$3
Avon Geneseo dr Mt. Morris (s.-a.)
$1.58 Jan. 2
Bangor dz Aroostook, corn. (quar.)
50e. Jan, 1
Preferred (quar.)
1% Jan. 1
Beech Creek (quar.)
50e. Jan. 1
Boston & Albany
$24 Dec. 24
Boston & Providence (guar.)
$24 Jan. 1
Burlington Cedar Rapids & Nor. 03.-zo _ $3
Jan. 1
Canada Southern (s.-a.)
$14 Feb. 1
Cayuga & Susquehanna (5.-a.)
$1.20 Jan. 1
Chesapeake Corp., common (quar.)__
50e. Jan. 1
Chesapeake & Ohio Ry. common (quar.) 6234c Jan. 1
Cincinnati Inter-Term'l gtd. 1st pf.(s.-a.) $2
Feb. 1
Cine. New on.& Texas Pao.,common-Div. o mitred.
8% preferred (quar.)
1% Dec. 1
Colorado & Southern Ry.4% 2d pref.- Div, p armed.
Delaware RR. C9. (5.-a.)
Jan, 1
51
DetroitHillsdale & South West (s.-a.)- $2
Jan. 1
Georgia RR. Sc Banking Co. (quar.)
$24 Jan. 15
Dec. 20
Grand Rapids Sc Indiana Ley. (s•-a.)---- $2
Illinois Central leased line ctfs.
$2
Jan. 1
3
Kansas Okla.& Gulf ser. A 6% pf.
Dec. 1
3
Dec. 1
Series 156% non-curn. pref. (s.-a.)_
Mill Creek Sc Mine Hill Nay.& RR.(3.-a) $14 Jan. 12
$14 Feb. 1
Mine Hill & Schuylkill Haven (s.-a.)...
$2
Jan. 2
Mobile & Birmingham pref. (5.-a.)
Nashville & Decatur 74% gtd. (5.-a.)... 93340 Jan. 1
Pitts. McKeesport & YoughloghenY(s-a) $14 Jan. 2
Western Ry. of Alabama-Div. omitted.
$14 Jan. 1
West Jersey & Seashore (5.-a.)
Public Utilities.
$234 Jan. 16
American Tel. dr Tel. Co. (guar.)
Bangor Hydro-Electrio, 7% pref. (qu.). 1% Jan. 1
1% Jan. 1
6% preferred (guar.)
400. Dec. 31
Buff. Niagara & East Pr. Corp.,01.A(qu)
40o. Dec. 31
Common (quar.)
Canadian W. Nat. Gas, Lt., Ht. & Pow.
1% Dec. 1
6% preferred (quar.)
Central Indiana Power Co.7% pref.-Di v. omi tted.
Citizens Traction Co.(Pitts., Pa.) (8.-a.) $14 Nov. 16
134 Dec. 15
Coast Counties Gas & El.6% pf.
1% DO. 1
Connecticut River Pwr.,6% pref. MO_
Consolidated Gas Elec. Lt. & Pow. Co.
90e. Jan. 3
of Bait. common (quar.)
14 Jan. 3
"A"5% preferred (quar.)
1%
Jan. 3
(quar.)
preferred
6%
"D"
134 Jan. 3
"E"54% preferred (quar.)
134 Jan. 16
Detroit Edison Co., capital stock (quar.)
Eastern Minnesota Power $6 pref.(qu.)_ $14 Dec. 1
Engineers Public Service Co., Inc.
$134 Jan. 3
$5 preferred (quar.)
$14 Jan. 3
$54 preferred (quar.)
51% Jan. 3
$6 preferred ((Mar.)
Books Closed
Days Inclusive.
Holders of rec. Dee, 20
Holders of rec. Dec. 26
Holders of rec. Nov. 30
Holders of rec. Nov.30
Holders of rec. Nov. 30
Holders of rec.. Dec. 20
Holders of rec. Dec. 16
Holders of rec. Dec. 28
Holders of rec. Dec. 20
Holders of rrse. Dec. 8
Holders of rec. Dec. 8
Holders of rec. Jan. 26
Holders of rec. Nov. 21
Holders of ree. Dec. 15
Holders of reo. Dec. 20
Holders of rec. Dec. 21
Holders of rec. Dec. 10
Holders of rec. Dec. 12
Holders of rec. Nov.23
Holders of rec. Nov.23
Holders of rec. Jan. 1
Holders of rec. Jan. 15
Holders of rec. Dec. 1
Holders of rec. Dec. 20
Holders of rec. Dec. 15
Holders of rec. Dec. 15
Holders of rec. Dec. 20
Holders of rec. Dec. 10
Holders of rec. Dec. 10
Holders of ree. Nov. 30
Holders of rec. Nov. 30
Holders of rec. Nov. 15
Holders of rec. Nov. 10
Holders of rec. Nov.25
Holders of lee. Nov. 22
Holders of rec. Dec. 15
Holders of rec. Dec. 15
Holders of ree. Dec. 15
Holders of rev. Dec. 15
Holders of rec. Dec. 20
Holders of rec. Nov. 15
Boil,-s of xse. Dec. 16
Hol,i,xs of teo. Dec. 16
Holders of ree. Dec. 16
Name of Company.
Per
When
Cent. Payable.
Books Closed.
Days Inclusive.
Public Utilities (Concluded).
Essex Sc Hudson County Gas Co.(s.-a.)Frankjord & Bony:mod Pm,pasarey(qu)
Gulf Power Co., $6 pref. (quar.)
Illinois Power Co.6% pref.(quar.)
7% preferred (quar.)
Indiana Hydro-El, Pr. Co.,7% Pf.(qu.)Internat. Power Secur.$6 pref. A (5.-a.)Laclede Gas Light common (quar.)
5% preferred (3.-a.)
Lone Star Gas Corp.,corn.(guar.)
Middlesex Water Co.,common (guar.)._
Preferred (3.-a.)
Mohawk Hudson Pow. Co., 1st pf.(qu.)
2d preferred (quits%)
Newark Telep. (Ohio), com.(quar.)
New England Tel. dr Tel. Co.(guar.).New York Pow.& Lt. Cons..7% pf.(qu.)
56 Preferred (quar.)
N. Y. Sc Richmond Gas6% pref.(quar.)
New York Queens El. Lt. Sc P. Co
Preferred (guar.)
Niagara Pow. Corp., corn.(quar.)
Northeastern Tel. Sc Tel. (qua?.)
Northwestern P.S. Co.. 7% pf. (guar.).
6% preferred (quar,)
Paterson & Passaic Gas& El. Co.(3.-a.).
Public Service Corp. of N. J., corn.(qu.)
58 preferred (quar.)
$7 preferred (guar.)
$5 preferred (guar.)
6% preferred (monthly)
Public Service El. Sc Gas 7% pref.(qu.)$5 preferred (quar.)
Second Sc Third Sts. Pass. Ry.(guar.).South Jersey Gas, El. Sc Traction (s-a)
United Gen Corp.$7 pref. (quar.)
Utica Gas Sc Elec. Co. 7% pref.(guar.).
West Ohio Gas Co., 7% pref. (qUar.)
$4
Dec. 1
54% Jan. 1
$14 Jan. 2
1% Jan. 2
1% Jan. 2
1% Dec. 15
$3
Dec. 15
$134 Dec. 15
$234 Dec. 15
116c. Dec. 31
750. Dec. I
$34 Jan. 1
$14 Feb. 1
$14 Jan. 3
$1 Dec. 10
$2
Dec. 31
I% Jan. 2
$14 Jan. 2
1.4 Jan. 1
$34 Dec. 14
$14 Dec. 1
30e. Dec. 31
$2 Dec. 31
1% Dec. 1
134 Dec. 1
52% Dec. 1
800. Dec. 31
32
Dec. 31
$14 Dec. 31
5134 Dec. 31
50c. Dec. 31
I% Dec. 31
51% Dec. 31
$3 Jan. 1
$4 Dec. 1
87340 Dec. 1
1% Nov. 15
1% Dec. 1
Holders of rec. Nov. 21
Holders of rec. Dec. 1
Holders of rec. Dec. 20
Holders of rec. Dec. 15
Holders of rec. Dec. 15
Holders of rec. Nov.30
Holders of rev. Dec. 1
Holders of rec. Dec. 1
Holders of rec. Dec. 1
Holders of rec. Dec. 15
Holders of rec. Nov. 21
Holders of rec. Jan. 16
Holders of rec. Dec. 15
Holders of rec. Nov. 30
Holders of rec. Dec. 10
Holders of rec. Dec. 15
Holders of rec. Dec. 15
Holders of rec. Dec. 15
Holders of rec. Dec. 2
Holders of rec. Nov. 18
Holders of rec. Nov.23
Holders of rec. Dec. 10
Holders of rec. Nov. 20
Holders of rec. Nov. 20
Holders of rec. Nov.21
Holders of rec. Dec. 1
Holders of rec. Dec. 1
Holders of rec. Dec. 1
Holders of rec. Dec. 1
Holders of rec. Dec. 1
Holders of rec. Dec. 1
Holders of rec. Dec. 1
Holders of rec. Dec. 1
Holders of rec. Nov. 21
Holders of rec. Nov. 19
Holders of rec. Nov. 5
Holders of rec. Nov.15
Trust Companies.
County Trust Co., new cap. stock.....
60c. Jan.
Fire Insurance Companies.
Merchants Fire Ins. Co.(Denver)(qu.)
North River Insurance Co. (guar.)
15c. Nov. 15 Holders of rec. Nov. 10
15o. Dec. 10 Holders of rec. Dec. 1
3 Holders of tea. Dec. 23
Miscellaneous.
Albers Bros. Milling 7% pref.-Div. pass ed.
Aluminum Mfg. Co., corn. (quar.)
50e Dec. 30 Holders of rec. Dec. 15
American Cigar Co., corn. (quar)
$2 Dec. 15 Holders of rec. Dec. 3
Preferred (guar.)
$134 Jan. 3 Holders of rec. Dec. 22
American Dock Co., 8% pref. (qua?.)...
2 Dec. 1 Holders of rec. Nov. 18
American Fork Sc Hoe Co.,6% pf. (qrs.).
I% Dec. 15 Holders of rec. Dec. 5
American Sc General Securities Corp.
740 Dec. 1 Holders of rec. Nov. 15
Common class A (guar.)
$3 cumulative preferred (guar.)
75c. Dec. 1 Holders of rec. Nov. 15
American Office Bldg., Pref. (Qum%)-$134 Jan. 1 Holders of rec. Dec. 24
American Sugar Refg. Co.common (qu.)
50c. Jan. 3 Holders of rec. Dec. 5
1% Jan. 3 Holders of rec. Dec. .5
Preferred (quar.)
Armour & Co.of Del., pref.(qua?.)
1% Jan. 2 Holders of rec. Dec. 10
Associated Investments Co. corn.(qu.).... $1
Dec. 31 Holders of rec. Dec. 21
Preferred (quar.)
51% Dec. 31 Holders of rec. Dec. 21
Automotive Gear Works, pref. (qua?.),.. 4140 Dec. 1 Holders of rec. Nov. 11
Bon Ami Co., ol. A extra
El
Dec. 31 Holders of rec. Dec. 14
Class B extra
500. Dec. 31 Holders of rec. Dec. 14
Brill Corp. 7% pref. (quar.)
1% Dec. 1 Holders of rec. Nov. 17
British Match Corp.,am.dep.ree.ord.reg. no.056 Nov.22 Holders of rec. Oct. 28
Burmah Oil Co. Amer. dep. rots. ord. reg 124-50 Nov. 15 Holders of rec. Oct. 17
Canada Malting Co., Ltd..corn.(quar.)_ 3734c, Dec. 15 Holders of rec. Nov.30
Canada Vinegars (guar.)
40c. Dec. 1 Holdese of rec. Nov. 15
Case (J. I.) Co., pref.(guar.)
$14 Jan. 1 Holders of rec. Dec. 12
Champion Fibre Co.7% pref.(quar.)
I% Jan. 2 Holders of rec. Dec. 20
Chesebrough Mfg. Co. (qua?,)
$1 Dec. 30 Holders of rec. Dec. 9
Extra
$1 Dec. 30 Holders of rec. Dec. 9
Churchill House Corp.(annual)
500. Jan. 2 Holders of rec. Dec. 15
Coca-Cola Co.,common (Muir.)
$1% Jan. 2 Holders of rec. Dec. 14
Class A (semi-ann.)
51% Jan. 2 Holders of rec. Dec. 14
Coca-Cola Internat. Corp., corn. (quar.) $334 Jan. 2 Holders of rec. Dec. 14
Class A (s-a)
$3 Jan. 2 Holders of rec. Dec. 14
Collingwood Terminals, Ltd., pref. (qrs.) hl% Nov. 25 Holders of rec. Nov. 15
Columbia Bldg. Sc Loan Assoc.(N.O.)Common (0.-5.)
$134 Dec. 1 Holders of rec. Nov.30
Comm Invest Trust Corp., corn. (quar.)_
50e. Jan. 1 Holders of rec. Dec. 5a
7% 1st preferred (quar.)
1% Jan. 1 Holders of rec. Dec. 5a
I% Jan. 1 Holders of rec. Dec. 5a
64% 1st preferred (quar.)
Cony. preferred (quar.)
o
Jan. 1 Holders of rev. Dec. 5a
3c. Nov. 15 Holders of rec. Nov. 5
Commonwealth Royalties, Inc.(mthly)Compressed Industrial GasesInc.com.(qu .) 35e. Dec. 15 Holders of rec. Nov.30
Crown Willamette Paper, 1st pref. (qr.) $1
Jan. I Holders of rec. Dec. 13
/13734c Dec. 1 Holders of rec. Nov. 19
Crown Zellerbach Corp. pref. A Sc B _
$r Jan.
Crow's Nest Pass Coal
Holdersof rec. Dec. 12
Daniels Sc Fisher Stores,64% pf. (qr.)_
T
% n. 1 Holders of rec. Nov. 19
15c. Dec. I Holders of rec. Nov. 25
Davega Stores Corp., corn. (quer.)
Denver Union Stockyards,7% pref. (qr.)
I% Dec. 1 Holders of rec. Nov. 20
I% Nov. 11 Holders of rec. Oct. 31
Diem Sc Wing Paper Co.,7% pf.(quar.)Dominion Textile Co., Ltd., cons.(qr.)-- $134 Jan. 3 Holders of rec. Dec. 15
Preferred (quar.)
51% Jan. 16 Holders of rec. Dec. 31
25c, Dec. 1 Holders of rec. Nov.21
Durham Duplex Razor Co., $4 pf.(cm.).
Eastern Equities, corn,liquidating
$3 Nov.17 Holders of rec. Nov. 16
f134 Jan. 16 Holders of rec. Dec. 5
Electric Bond Sc Share Co.,corn.(quar.)_
$134 Feb. 1 Holders of rec. Jan. 6
$6 preferred (quar.)
$5 preferred ((Mar.)
$14 Feb. 1 Holders of rec. Jan. 6
Essex Co., (5.-a.)
$3 Dec. 1 Holders of rec. Nov. 15
Equitable Office Bldg. Corp., corn.(qr.)_ 3734c. Jan. 2 Holders of rec. Dec. 15
1% Jan. 2 Holders of rec. Dec. 15
Preferred (quar.)
First Common Stocks, corn., initial (qu.)
4c.
Holders of rec. Nov.14
Galveston Wharf Co.(monthly)
50c. Nov. 15 Holders of rec. Nov. 14
Gamewell Co., pref. (quar.)
$14 Dec. 15 Holders of rec. Dec. 5
20e. Nov. 25 Holders of rec. Nov.22
Gilmore Gas Plant No. 1 (monthly)
50c. Dec. 30 Holders of rec. Dec. 30
Goodman Mfg. Co., corn.(quar.)
40e. Dec. 1 Holders of rec. Nov. 19
Great Northern Paper, cons.(quar.)_ - - Great Northern Paper Co. corn.(quar.)_
40e. Dec. 1 Holders of rec. Nov. 19
Great Western Sugar Co.7% pf. (qu.).
1% Jan. 2 Holders of rec. Dec. 15
Halle Bros. Co.. corn. (quar.)
Sc.Nov.30 Holders of rev. Nov.23
Hamilton Woolen Co. (quar.)
$1.40 Nov. 26 Holders of rec. Nov. 19
Hanna(M.A.) Co.,cum. pref.(quar.)
$14 Dec. 20 Holders of rec. Dec. 5
Hathaway Bakeries, Inc., class A-No di v. acti on take n.
$7 preferred (quar.)
214 Dec. 1 Holders of rec. Nov. 15
Heyden Chemical, pref. (quar.)
$14 Jan. 2 Holders of rec. Dec. 2
Hobart Mfg.Co., corn,(quar.)
250 Dec 1 Holders of rec. Nov. 19
Common (quar.)
25c Mar. 1 Holders of rec. Feb. 18
Hollinger Con. Gold Mines Ltd• cap. stk 1
Dec. 1 Holders of rec. Nov. 17
Extra
1
Dec. 1 Holders of rec. Nov. 17
International Harvester, corn. (guar.).300. Jan. 16 Holders of rec. Dec. 20
International Milling original pref. (qu.) V% Dec. 1 Holders of rec. Nov. 19
let preferred A (quar.)
314 Dec. 1 Holders of rec. Nov. 19
International Petroleum Co., Ltd
u25c. Dec. 15 Holders of rec. Nov.30
International Salt Co., caP ark (qua?.)
37340 Jan. 2 Holder, of rec. Dec. 150
Iron Fireman Mfg. Co.,corn -Div.omit ted
Katz Drug Co., common (qua?.)
500. Dec. 15 Holders of rec. Nov.30
Preferred (altar.)
$14 Jan. 1 Holders of rec. Dec. 15
Kekaha Sugar (monthly)
100. Dec. 1 Holders of rec. Nov.25
Kobocker Stores, Inc.. Pref. (guar.).- $151 Dec. 1 Holders of rec. Nov. 15
LaSalle Sc Koch, pref. ()attar.)
1% Nov. 15 Holders of rec. Nov. 14
Lake Shore Gold Mines (quar,)
50ts. Dec. 15 Holders of rec. Dec. 1
Extra
50e. Dec. 15 Holders of reo. Dec. 1
Landis Machine Co.,7% pref.(guar.).- I% Dec. 15
Lanston Monotype Machine Co. (guar.) $14 Nov.30 Holders of rec. Nov. 18
Lehigh Power Security Corp.
25c. Dec. 1 Holders of rec. Nov. 19
(quar.)---Lily-Tulip Cup, corn. (quar.)
3734e. Dec. 15 Holders of rec. Dec. 1
Loew's London Th., Leo 7% pf.(qu.)-- h52 34e Dec. 31 Holders of rec. Nov. 19
Financial Chronicle
3480
Name of Company.
When
Per
Cent. Payable.
Books Closed.
Days Inclusive.
Name of Company.
Nov. 19 1932
Per
1Vhen
Cent. Payable.
Books Closed.
Days Inclusive.
Public Utilities (Concluded).
Citizens Gas (Ind.), 5% pref. (quar.)._
13I Deo, 1 Holders of rec. Nov. 19
Cleveland Elec. Ilium. Co. pref. (quar.)_ $136 Dec. 1 Holders of rec. Nov. 15
Commonwealth Utilities, pref. C (qu.). 5154 Dec. 1 Holders of roe. Nov. 15
Connecticut Lt.& Pow..534% pf. (qu.)_
136 Dec. 1 Holders of roe. Nov. 15
15-4 Dec. 1 Holders of rec. Nov. 15
634% preferred (guar.)
Connecticut Power Co. (guar.)
6236c. Dec. 1 Holders of rec. Nov. 15
Connecticut Passenger Fly. (5.-a.)
5235 Dec. 31 Holders of rec. Nov.30
Consolidated Gas of N. Y., corn. (guar.) SI
Dec. 15 Holders of rec. Nov. 9
Consumers Power Co.$5 pref.(quar.)
5134 Jan. 3 Holders of rse. Dee. 16
136 Jan. 3 Holders of rec. Dec. 15
6%
770 pprreeffeerrrreded
6.6% preferred (quar.)
1.65 Jan. 3 Holders of rec. Dec. 15
(quar.)
134 Jan. 3 Holders of rec. Dec. 15
6% preferred (monthly)
50c. Dec. 1 Holders of roe. Nov. 15
6% preferred (monthly)
50e. Jan. 3 Holders of rec. Dee. 15
6.6% preferred (monthly)
550. Dec. 1 Holders of rec. Nov. 15
6.6% preferred (monthly)
55c. Jan. 3 Holders of rec. Dec. 15
Dayton Pow. & Lt. 6% pref. (mthly)
50c. Dec. 1 Holders of rec. Nov. 19
Louis &Interurban lb aterEast
mStp.ro
(quar.)
134 Dec. 1 Holders of rec. Nov. 19
6% preferred (guar.)
13.4 Dec 1 Holders of rec. Nov. 19
Eastern Shore Public Service Co., $636
$136 Dec. 1 Holders of rec. Nov. 10
preferred (guar.)
$6 preferred (guar.)
5134 Dee. I Holders of rec. Nov. 10
El Paso Elec. Co.,7% pref. A (quar.)__
134 Jan. 16 Holders of roe. Dee. 30
6% preferred (guar.)
136 Jan. 16 Holders of rec. Dec. 30
Empire & Bay State Telep.,4% Old (qu.)
1 Dec. 1 Holders of rec. Nov. 20
Empire Gas & Elec., 6% pref. A (quar.)
136 Dec. 1 Holders of rec. Oct. 31
7% preferred C (quar.)
134 Dec. 1 Holders of rec. Oct. 31
136 Dec. 1 Holders of rec. Oct. 31
6% preferred D (guar.)
Federal Light & Traction Co.. pref. (qu.) $136 Dec. 1 Holders of rec. Nov. 150
Florida Power Corp., 7% pref. (quar.)_ _ 8734e. Dec. I Holders of rec. Nov. 10
Preferred A (guar.)
sly, Dec. 1 Holders of rec. Nov. 10
Green Mountain Pow., $6 pref. (guar.). $136 Dec. 1 Holders of rec. Nov. 15
Gulf State Utilities Co., $6 pref. (qu.)
5136 Dec. 15 Holders of rec. Dec. 1
$536 preferred ((mar.)
SI% Dec. 15 Holders of rec. Dec. 1
Hackensack Water Co., com.(s.-a.)._ _
75c. Dec. 1 Holders of rec. Nov. 16
Huntington Water Corp.,7% pref. (qu.) 134 Dec. 1 IIolders of rec. Nov. 19
136 Dee, 1 Holders of rec. Nov. 19
6% p efe red (guar.)
Indianapolis Water Co.,5% pf. A (qu.). 136 Jan. 2 Holders of rec. Doe. I2a
Ironwd & Bessemer By.& Lt. pref. (qu.) 5134 Dec. I Holders of rec. Nov. 15
Kansas City Power & Lt. Co.
First pref. class B (guar.)
$136 Jan. I Holders of rec. Dec. 14
Kansas Pow.Jo Lt.Co.7% pref.(quar.). 134 Jan. 2 Holders of rec. Dec. 14
136 Jan, 1 Holders of rec. Dec. 14
6% preferred (quar.)
Kentucky Ut11. Co. prior $336 pt.(qu.).. 8734e Nov. 19 Holders of recs. Nov. 1
13
% Dec. 1 Holders of rec. Nov. 15
Lake Superior Dist. Pow.7% pref. (qu.)
134 Dec. 1 Holders of rec. Nov. 15
6% preferred (guar.)
134 Dec. 1 Holders of rec. Nov. 21
Lexington Water, 7% pref. (quar.)--- Louisville Gas & El., corn. A & B (quar.) 4334c. Dec. 24 Holders of roe. Nov.30
Milwaukee Elec. Ry.& Light Co.
136 Dec. 1 Holders of rec. Nov. 15
6% preferred (quar.)
Milwaukee Gas Light Co.7% pf. (qu.)....
154 Dec. 1 Holders of rec. Nov.25
Monongahela West Penn Public Service
7% preferred (guar.)
439-40. fan. 2 Holders of roe. Dec. 15
8c. Nov. 21 Holders of rec. Nov. 10
Mutual Telep. (Hawaii) (monthly)
80 Dec. 20 Holders of rec. Dec. 10
Monthly
25e. Dec. 1 Holders of rec. Nov. 12
National Pow.& Lt., corn.(guar.)
131 Dec. 1 Holders of rec. Nov. 14
Nebraska Power Co., 7% pref.(guar.)
136 Dec. 1 Holders of rec. Nov. 14
Ne
6w
%CP
as
retiferr
W
ea
dte
(a
ru
Caor...
)
6% pref. (quar.). 136 Dec. 1 Holders of rec. Nov. 19
New Rochelle Water. 7% pref.(quar.)
131 Dec. 1 Holders of rec. Nov. 21
New York Steam Corp. corn.(quar.)--65c. Dec. 1 Holders of rec. Nov. 15
North American Edison Co. pref.(qu.)
$136 Dec. 1 Holders of rec. Nov. 15
Northern States Pr. Co.(Wls.), pr. (qu.)
e
oev.. 30
1 Holders of rec. Deo. 19
Northern
jonthN.
ly) Y. Utilities, Inc.(mthly.)
.123-Sc.ND
(Monthly)
1236e. Dec. 31
Nova Scotia L.& P. Co., Ltd., Pfd.(qu.)
136 Dec. 1 Holders of rec. Nov. 19
136 Dec. 1 Holders of rec. Nov. 7
Ohio Power Co., 6% preferred (quar.)-Ohio Public Service Co..7% pf.(mthly.) 58 1-3c Dec. 1 Holders of rec. Nov. 15
8% preferred (monthly)
50e. Dee, 1 Holders of rec. Nov. 15
5% preferred (monthly)
412-30 Dee, 1 Holders of rec. Nov. 15
Oklahoma Gas & Elec. Co., 7% pf. OW.) 134 Dec. 15 Holders of rec. Nov.30
136 Deo, 15 Holders of rec. Nov.30
6% preferred (quar.)
Oregon-Washington Water Service5134 Dec. I Holders of rec. Nov. 15
$6 preferred (guar.)
Peninsular Telephone corn. (guar.)
35e. Jan. 1 Holders of rec. Dee. 15
7% preferred (guar.)
154 Feb. 15 Holders of tee. Feb. 5
Pennsylvania Power Co.$6.60 pf.(mtnly)
550, Dec. 1 IIolders of rec. Nov. 19
5136 Dec. 1 Holders of rec. Nov. 19
$6 preferred (quar.)
Penn State Water Corp.. $7 prof (guar.) $134 Dec. 1 Holders of rec. Nov. 21
Telep. Corp. (Butler, Pa.)Below we give the dividends announced in previous weeks Peoples
514 Dec. 1 Holders of rec. Nov.30
Preferred (guar.)
and not yet paid. This list does not include dividends an- Phila
Germantown & Norristown RR.
.(
5136
Co.
Dec. 5 Holders of rec. Nov. 19
nounced this week, these being given in the preceding table.
Phila. Suburban Water Co. pref. (qu.)...
134 Dec. 1 Holders of rec. Nov 120
PotomacElec. Pow. Co., 6% pref. (qu.) 134 Dec. 1 Holders of rec. Nov. 15
Per
Books Closed
When
13-4 Dec. 1 Holders of rec. Nov. 15
534% preferred (quar.)
Name of Company.
Cent. Payable.
Days Inclusive.
Public Elec. Light Co..6% pref.(quar.)_
134 Dec. 1 Holders of rec. Nov.21
Pub. Serv. Co. of Colo., 7% pf. (mthly.) 581-30 Dec. 1 Holders ot rec. Nov. 16
Railroads (Steam).
6% preferred (monthly)
500. Dec. 1 Holders of rec. Nov. 15
Alabama Great Southern, pref
$136 Feb. 15 Holders of rec. Jan. 6
41 2-3c Dec. I Holders of rec. Nov. 15
7% preferred
Augusta & Savannah RR.(s-a)
234 Jan. 5
Public Service of N.J., 6% pf.(mthlY.)50c. Nov. 30 Holders of rec. Nov. 1
Extra
25e. Jan. 5
Rhine-Westphalla Elec.PowAmer shares _ 01
Catawissa RR. Co.. pref. (s-a)
xis $1.13 Nov.22 Holders of rec. Nov. 11
134 Dec. 1 Holders of ree. Oct. 28
Rochester Gas & Elec., 7% pref. 13 1q31.).. 5
Chesapeake & Ohio fly. Co., pref. (s.-a.) 334 Jan. 1 Holders of roe. Dee. 8
136 Dec. 1 Holders of rec. Oct. 28
6% preferred C (guar.)
Chestnut Hill (quar.)
75c. dDec. 5 Holders of rec. Nov. 19
6% preferred D (guar.)
136 Dec. 1 Holders Of reo. Oct. 28
Cleve. & Pittsb. By.(special go.)(qu.)_.
50c. Dec. 1 dElolders of rec. Nov. 10
Savannah Elec. & Pow., class A (guar.). $2
Jan. 2
Guaranteed (guar.,
8736e. Dec. 1 Holders of rec. Nov. 10
Class B (guar.)
51% Jan. 2
Columbus & Xenia
Dec. 10 Holders of rec. Nov. 25
$1
Class C (guar.)
$1% Jan. 2
Delaware & Bound Brook (guar.)
dNov 19 Holders of rec. Nov. 16
$2
Class D (guar.)
$136 Jan. 2
Delaware & Hudson Co.(guar.)
$136 Dec. 20 Holders of:ree. Nov. 26
Shawinigan Water & Power Co.corn.(qu) 1130. Feb. 15
Hudson k Manhattan, corn., (s.-a.)__ -- 514 Dec. 1 Holders of rec. Nov. 150 Shenango Valley Water Co.,6% pf.(qu) 136 Dec. 1 Holders of rec. Jan. 21
Holders of rec. Nov. 21
Jan. 1 Holders of rec. Dec. 8
Lackawanna RR.of N. J.. 4% gtd.(qu.) SI
Southern California Edison, Co., Ltd.Morris & Essex
$2.1236 Jan. 1 Holders of rec. Dec. 7
134 Dee, 15 Holders of rec. Nov. 19
7% Preferred A (guar.)
N. Y.. Lack. & West., 5% gtd. (qu.)-- 14 Jan. 1 Holders or rec. Dec. 14
preferred
13
(guar.)
6%
135 Dec. 15 Holders of rec. Nov. 19
Norfolk d3 Western By., corn.(guar.). _ _ 52
Dec. 19 Holders of rec. Nov.30
Southern Calif. Gas Corp.5636 pt.(qu.). $136 Nov.30 Holders of ree. Oct. 31
Ad). preferred (guar.)
51
Nov. 19 Holders of rec. Oct. 31
Sou. Colorado Power Co., 7% pref.(qu.) 134 Dec. 15 Holders of ree. Nov.30
North Pennsylvania (guar.)
Nov. 25 Holders of rec. Nov. 14
$1
Standard Power & Lt. Corp.corn.(tin.).
30c Dec. 1 Holders of rec.
12a
Northern RR.of N.J., 4% guar.(qu.)
1
Dec. 1 Holders of rec. Nov. 19
Susquehanna Utilities Co., 1st pref.(qu.) 134 Dec. 1 Holders of rec. Nov.
Nov. 19
Ontario & Quebec)(s.-a.)
Dee. 1 Holders of rec. Nov. 1
$3
Tennessee Electric Power Co.Semi-annual
236 Dec. 1 Holders of rec. Nov. 1
5% preferred (guar.)
14 Jan. 2 Holders of rec. Dec. 15
Philadelphia Bait.& Washington (s.-a.)_ 5135 Doe. 31 Holders of rec. Dec. 16
6% preferred (guar.)
136 Jan, 2 Holders of rec. Dee, 15
Pitts. Bessemer & L. E., Prof. (s.-a.)7% preferred (guar.)
$134 Dec. I Holders of rec. Nov. 15
I% Jan. 2 Holders of rec. Dec. 15
Pittsbg Ft. Wayne & Chic., corn.(qtr.)
134 Jan. 2 Holders of roe. Dec. 10
7.2% preferred (guar.)
$1.80 Jan, 2 Fielders of rec. Dec. 15
Preferred (guar.)
154 Jan, 2 Holders of rec. Dec .10
6% preferred (monthly)
tOc. Dec. 1 Holders of roc. Nov. 15
Pitts. Youngst.& Ash., 7% pref.(q11.)
1% dDec. 1 Holders of rec. Nov.21
6% Preferred (monthly)
50c. Jan. 2 Holders of rec. Dee. 15
Reading Co., 1st pref. (guar.)
50e. Dec. 8 Holders of rec. Nov. 17
7.2% preferred (monthly)
60c. Dec. I Holders of rec. Nov. 15
Rensselaer & Saratoga (5.-3L)
$4
Jan. 1 Holders of rec. Dec. 15
7.2% preferred (monthly)
60e. Jan. 2 Holders of roe. Dec. 15
Shamokin Valley & Pottsville (s.-a.)._ $136 Feb. 1 Holders of rec. Jan. 15
Terre Haute Water Works Corp.Southern RR.of Georgia (8.-a.)
$236 Jan, 1 Holders of rec. Dec. 1
7% preferred (guar.)
134 Dec.
Holders of rec. Nov. 19
Union Pacific. common
5156 Jan. 3 Holders of rec. Dec. 3
Texas Utilities Co. pref.(guar.)
SIU Dec.
'Holders of rec. Nov. 19
United New Jersey RR.& Canal Co.(qu) $234 Jan. 10 Holders of rec. Dec. 20
Tide Water Pow,Co., $O pref. (guar.)._ $136 Dec.
Holders of rec. Nov. 10
Valley RR.of N. Y. (s.-13.)
5236 Jan. I Holders of rec. Dec. 20
Toledo Edison Co., 7% pref. (milly.).5 8 I 3c. Deo.
Holders of rec. Nov. 15
West Jersey & Seashore.6% spec gtd(s-a)
136 Dec. 1 Holders of rec. Nov. 15
6% preferred (monthly)
50c. Dee.
Holders of reo. Nov. 15
5% preferred (monthly)
4 1 2-3o. Dec.
Holders of rec. Nov. 15
Public Utilities.
Union Traction of Phila.(s. a.)
5134 Jan.
Holders of rec. Dec. 9
Alabama Water Service, SO Pref.
5136 Dec. 1 Holders of rec. Nov. 21
United Gas Improvement Co.,com.(qu.)
30c. Dec. 3 Holders of rec. Nov. 30
American Water Works dc Elec. Co., Inc.
Preferred (guar.)
$14 Dec. 3 Holders of rec. Nov. 30
of Del., $6 1st preferred (guar.)
$136 Jan. 2 Holders of rec. Dec. 9
Utility Equit. Corp..$536 priority stk.s-a $24 Dec.
Holders of rec. Nov. 15
Baton Rouge Electric, $6 pref. (guar)._
33136 Dec. 1 Holders of rec. Nov. 15
Virginia Elec.& Pow. Co.56 pref.(qu.). $153 Dec. 20 Holders of rec. Nov.30
Birmingham Water Works,6% pf. (qu.) 134 Dec .15 Holders of rec. Dec. 1
Washington fly, & El. Co.coin.(qu.)
5134 Dec. 1 Holders of rec. Nov. 18
Bridgeport Gas Light Co. (guar.)
600. Dec. 31 Holders of rec. Dec. 16
Preferred (guar.)
$134 Dec. 1 Holders of roe. Nov. 18
Brooklyn Edison Co. (guar.)
52
Dec. 1 Holders of rec. Nov. 9
Wheeling Elec. Co., pref. (quar.)
$136 Dec. 1 Holders of rec. Nov. 7
Brooklyn Union Gas Co.(guar.)
514 Jan. 3 Holders of rec. Dec. la Williamsport Water,$6 pref.(guar.).. 51,Si Dec. 1 Holders of
roe. Nov.21
1% Dec. 15 Holders of rec. Dec. 1
Butler Water Co.. 7% pref. (guar.)._
Wisconsin Pub. Serv. Corp.. 7% pf.(qu) 134 Dec. 20 Holders of rec. Nov.30
Canadian Hydro-Electric 6% 1st Pf.(qu.) 1134 Dec. 1 Holders of rec. Nov. la
154 Dee. 20 Holders of rec. Nov. 30
63-4% Prefer-rod (guar.)
136 Dec. 1 Holders of rec. Nov. 15a
Cent. Ark.Pub. Serv Corp., pref.(qu.)
6% preferred (guar.)
134 Dec, 20 Holders of rec. Nov. 30
Central Illinois Light Co.,6% pref.(qu.) 135 Jan. 2 Holders of rec. Dee. 15
1% Jan, 2 Holders of rec. Doe. 15
Fire Insurance.
7% preferred (guar.)
Central Mississippi Valley Electric Prop.,
Fire Association of Phila.(new stock)... $1
Nov. 21 Holders of rec. Oct. 31
136 Dee. 1 Holders of rec. Nov. 15
Security Ins. Co.(New Haven) (guar.).
35c. Nov. 21 Holders of rec. Oct. 21
6% preferred (guar.)
Miscellaneous (Concluded).
Loew's (Marcus) Theatres, pref
1454 Dec. 1 Holders of rec. Nov. 19
Macy (R. H.) & Co.. corn.(guar.)
50c Feb. 15 Holders of rec. Jan. 30
Mayflower Assoc., Inc. (guar.)
500. Dec. 15 Holders of rec. Dec. 1
Manlschewitz (B.) & Co., com.-Div. o miffed
Marine Midland Corp., corn.(guar.)_ _
20c Dec. 31 Holders of rec. Dec. 1
Mergenthaler Linotype Co. corn. (guar.)
40c. Dec. 31 Holders of rec. Dec. 7a
Merrimac Hat Corp., corn. (guar.)
50c. Dec. I Holders of rec. Nov.26
Preferred (guar.)
Dec. I Holders of rec. Nov.26
$1
Meteor Moto Car, corn. (guar.)
10c. Dec. 1 Holders of rec. Nov. 19
Miller dr start, Inc., $336 cum. pref.-Di v. mot tted.
Montreal Loan & Mtge. corn. (quar.)
75e. Dec. 15 Holders of rec. Nov.30
Monroe Loan Society, cl. A pref.(qu.). _
Dec. 1 Holders of rec. Nov.23
Extra
15c. Dec. 1 Holders of rec. Nov.23
Montreal Cottons. Ltd., corn.(guar.)_ _ _ $136 Dec. 15 Holders of rec. Nov.29
Preferred (guar.)
1% Dec. 15 Holders of rec. Nov. 29
Morris Plan Ins. Society (guar.)
Dec. 1 Holders of rec. Nov.30
$1
Muskogee Co.6% cum. pref. (guar.)_ _
1% Dec. 1
No common dividend action taken.
Nat'l Founders $316 pref. A initial(MO- 8736c Nov. 5 Holders of rec. Oct. 25
Nat'l Industries Shares, sec. A shs. (IN.) $24 Nov. 17
National Lead, corn. (guar.)
8136 Dec. 31 Holders of rec. Dec. 16
Preferred B (guar.)
$136 Feb. I Holders of rec. Jan. 20
Psi Is ill
National Service $3 & $4 pret.-Div. actl on def erred.
25e. Jan. 1 Holders of rec. Dec. 16
Newberry (J. J.) & Co., common (qu.)
NorthCentral Texas 011 Co.,Inc.pref.(qu 41% Jan. 2 Holders of rec. Dec. 10
Northern Pipe Line Co.,cap. stk.(guar.)
25c Jan. 2 Holders of rec. Dec. 16
Oahu Sugar Co., Ltd.(monthly)
Sc. Dec. 15 Holders of rec. Dec. 6
Extra
20e. Dec. 15 Holders of rec. Dec. 6
Ogilvie Flour Mills Co., Ltd.,7% pf.(qu) 1% Dec. 1 Holders of rec. Nov. 21
Old Line Life Ins. of Amer.(guar.)
250. Jan. 1 Holders of rec. Dec. 15
Dec. 1 Holders of rec. Nov. 21
$1
Package Machinery, corn. (guar.)
Pantheon 011 Co.(guar.)
236c. Nov. 28 Holders of rec. Nov. 18
12360 Dec. 1 Holders of rec. Nov. 21
Patterson-Sargent, common (guar.).Peerless Woolen Mills636% pref.(s.-a.). $134 Dec. 1 Holders of rec. Nov. 15
Penick & Ford,corn.(guar.)
25e. Dec. 15 Holders of rec. Dec. 1
s1
Dec. 15 Holders of rec. Dec. 1
Extra
Phillips-Jones Corp., pref.(guar.)
134 Dec. 10 Holders of rec. Dee. la
Pioneer Mill Co., Ltd
35c. Dec. 1
Pittsburgh Plate Glass Co., corn. (guar.)
25e. Jan. 2 Holders of rec. Dec. 10
134 Jan. 3 Holders of rec. Dec. 15
Ponce Electric prof. (guar.)
Procter & Gamble Co.5% pref.(guar.). 1% Dec. 15 Holders of roe. Nov. 25a
Jan. 16 Holders of rec. Dec. 31
Quaker Oats Co., corn. (quar.)
$1
Preferred (guar.)
$135 Feb. 28 Holders of reo. Feb. 1
Raybestos-Manhattan, Inc. (quar.)_
150. Dec. 15 Holders of rec. Nov.30
Reeves (Daniel), Inc., common (guar.)._ 3736e Dec. 15 Holders of rec. Nov. 30
1361 Dec. 15 Holders of rec. Nov. 30
Preferred (quar.)
Reliance International Corp., $3 pref500. Dec. 1 Holders of rec. Nov.21
Rio Tinto Co., Ltd., Amer. dep. rec_ - cis30c. Nov. 22 Holders of rec. Oct. 28
Dec. 15 Holders of rec. Nov.30
Royalite 011 (Montreal), corn. (specia-1)_ $1
Rubinstein (H.). Inc., S3 cum. pf. (qu.)
2.5c. Dec. 1 Holders of rec. Nov. 19
Schiff Co., corn. (quar.)
25e. Dec. 15 Holders of rec. Nov.30
Preferred (guar.)
$131 Dec. 15 Holders of rem Nov.30
Spencer Kellogg & Sons, Inc. (quar.)15e. Dec. 31 Holders of rec. Dec. 15
$18
Stafford, pref. (Initial liquidating)
Standard Oil Co. of Ohio corn. (guar.)._ 3736c Jan. 3 Holders of rec. Dee. 15
Preferred (guar.)
$14 Jan. 16 Holders of rec. Dec. 31
Standard Paving & Materials, Ltd.-Pr of div. action deferred.
Standard Royalties Co. of N. Y.
lc. Nov. 15 Holders of rec. Oct. 31
Class A preferred (monthly)
Standard Steel Construe., pref. A (guar.)
750. Jan. 1 Holders of rec. Dec. 15
Trinidad Leaseholds, Ltd.Amer. dep. rec. for ord. reg. (final)... zw734 Nov. 25 Holders of roe. Nov. 11
Tyer Rubber Co.,6% pref. (guar.)
134 Nov. 15 Holders of rec. Nov. 10
100. Jan. 3 Holders of rec. Nov. 25
United Corp. common (quar.)
750. Jan. 3 Holders of rec. Nov. 25
$3 cum. preferred (guar.)
100. Dec. 24 Holders of rec. Dee. 9
United Elastic Corp. (guar.)
70. Dec. 1 Holders of rec. Nov. 17
United States Banking Corp. (monthly)
$1% Dec. 1 Holders of rec. Nov. 21
United States Dairy Prod., lot pt.
Second preferred (guar.)
$2
Dec. 1 Holders of rec. Nov. 21
United States Foil Co.
Class A and B common (guar.)
7360. Jan. 3 Holders of rec. Dec. 15a
Preferred (guar.)
Jan. 3 Holders of rec. Dot. 15a
United States Fuel pref.-Div. omitted.
United States Shares Corp. tr. shs. ser. Ii .05659 Dec. I Holders of roe. Oct. 31
Viking Pump, pref. (guar.)
60c. Dec. 15 Holders of rec. Dec. 1
Vortex Cup Co., corn. (guar.)
25c. Jan. 3 Holders of me. Dec. 15
Waialua Agricultural Co., Ltd
500. Nov. 30 Holders of rec. Nov. 19 1
Western Cartridge Co.6% pref.(guar.). $136 Nov. 20 Holders of rec. Oct. 31'
West. Pipe & Steel Co. of Cal. com.(qui
230. Dec. 5 Holders of rec. Nov. 251
Volume 135
Name of Company.
Insurance Companies.
North River Ibs, Co
Financial Chronicle
Per
When
Cod. Payable.
Books Closed.
Days Inclusive.
Name of Company.
3481
Per
When
Cent, Payable.
Books Closed,
Days Inclusive.
Miscellaneous (Continued).
15c. Dec. 10 IIolders of rec. Dec. 1
Hale Bros. Stores, Inc.(quar,)
15c. Dec. 1 Holders of rec. Nov. 15
Hancock 01101 Cal.(Del.), cl. A & B (qr.)
10c. Dec. 1 Holders of roe. Nov. 15
Miscellaneous.
Hardesty
(R.)
(oust.).
Mfg..
_
prof.
7%
134 Dee. 1 Holders of rec. Nov. 15
Abbotts Dairies, corn.(quar.)
50e. Dec. 1 Holders of rec. Nov. 15
Hewitt Bros.Soap, preferred (quar.)._.2 Jan. 1 Holders of tee. Dec. 20
7% 1st preferred (quar.)
1% Dec. 1 Holders of rec. Nov. 15
Hibbard,Spencer, Bartlett & Co.(mthly)
10c,
Nov. 25 Holders of rec. Oct. 18
7% 2nd preferred (quar.)
1% Dec. 1 Holders of rec. Nov. 15
Monthly
10c. Dec. 30 Holders of rec. Oct. 23
Affiliated Products, Inc., corn. (quar.)_ 13 1-3c Dec. 1 Holders of rec. Nov. 18
Hires(Chas. E.)& Co.,corn. el. A (qu.)60c. Dee. 1 Holders of rec. Nov. 15
Agnew Surpass Shoe Stores, pref. (qtr.). 51% Jan. 2 Holders of rec. Dec. 15
Holt (II.) dr Co.. A (quar,)
2234c Dec. 1 Holders of rec. Nov. 10
Aluminum Manufactures, corn. (qu.)- - 50c. Dec. 31 Holders of rec. Dec. 15
Homestake Mining Co.(monthly)
75c. Nov. 25 Holders of rec. Nov. 19
Preferred (quar.)
1% Dec. 31 Holders of rec. Dee. 15
Honolulu Plantation (monthly)
250. Dec. 10 Holders of rec. Nov. 30
American Arch Co. (quar,)
25c. Dec.
Holders of rec. Nov. 18
Horn & IIardart(N. Y.) pref. (quar.)
515
% Dec. 1 dlloiders of rec. Nov. 11
American Chicle Co., (quar.)
50e, Jan. 1 Holders of rec. Dec. 12
Hooven & Allison. pref. (quar,)
5134 Dec. 1 Holders of rec. Nov. 15
Extra
25c. Jan. 1 Holders of rec. Dec. 12
Imperial Chemical Ord.American Envelope 0o.. 7% pref. (qu.)
141 Dec. I Holders of rec. Nov.25
Ordinary shares
zw234 Dec. 1
American Hardware Co., common (ou.)50c. Jan. 1 Holders of rec. Dec. 16
American deposit recelpts ord. shares_ sto2% Dec. 8 Holders of rec.
Oct. 14
American Home Products(monthly)._
350. Dec. 1 Holders of rec. Nov.140 Imperial 011 Co.. Ltd., reg. (quur.)
11234 Dec. 1 Holders of rec. Nov. 160
(Monthly)
35c. Jan. 3 Holders of rec. Dec. 140
Coupon
No.
35
11234e Dec. 1
American Laundry Machine,core., (qu.)
30c. Dec. 1 Holders of rec. Nov.21
Industrial Cotton Mills, pref. (guar.)._
141' Feb. 1 Holders of rec.
Amer. Natl. Co.(Toledo). pref. A (qu.)I% Jan. 1 Holders of rec. Dec. 20
Ind. Cot. Stills, Ine.(S.C.) 7% pt. (qu.). 134 Feb. 1 Holders of rec. Jan. 20
Preferred B (quarterly)
Jan. 20
1% Jan. 1 Holders of rec. Dec. 20
Industrial & Power Sees. Co.(guar.).250. Dee. 1 Holders of rec. Nov. I
American Radiator cir Standard Sanitary
Industrial Rayon Corp. (quar.)
50c. Jan. 1 Holders of rec. Dec. 15
Preferred (guar-)
51% Dec. 1 Holders of rec. Nov. 15
Ingersoll-Rand
common
Co.
(guar.).-50c. Dec. I Holders of rec. Nov. 7
American Securities Investing Corp.Inter-Island Steam Navigation (mthly.)10e. Nov. 30 Holders of rec. Nov. 24
Debentures,Initial (s-a)
Dec. 1
Monthly
100. Dec. 31 Holders of rec. Dec. 24
Amer. Steel Foundries, pref. (quer.)
51% Dec. 31 Holders of rec. Dec. 15
International
Harvester Co., pf. (quar.)- $134 Dec. 1 Holdes of rec. Nov. 5
American Stores Co.(quar.)
50e. Jan. 2 Holders of rec. Dec. 13
International Safety Razor Co. cl.A (qu) 60c. Dec. 1 Holders of rec. Nov.
Extra
16
50c. Dec. 1 Holders of rec. Nov. 12
International Shoe Co. pref. (monthly).50c Dec. 1 Holders of rec. Nov. 15
American Thread, Prof. (s.-a.)
12440 Jan. 1 Holders of rec. Nov.30
Jantzen Knitting Mills, 7% pref. (quar.)
1% Dec. 1 Holders of rec. Nov. 25
American Tobacco Co.
Johnson-Steph
ens
&
Shinkle
Shoe
Co.
common
B (quar.)
Common and
51% Dec. 1 Holders of rec. Nov. 10
Common (quar.)
12%c. Dec. 1 Holders of rec. Nov. 15
Archer-Daniels-Midland. corn. (guar.).25c. Dec. 1 Holders of rec. Nov. 19
Jones & Laughlin Steel pref.(guar.).75e, Jan, 2 Holders of rec. Dec. 13
Atlantic Refining Co., corn.(quar.)
25e, Dec. 15 Holders of rec. Nov.21
Kalamazoo
Vegetable Parchment (quar.)
15e. Dec. 31 Holders of rec. Dee. 21
Atlas Corp.,$3 pref.. ser. A (quar.)
750. Dec. 1 Holders of rec. Nov. 19
Kaufmann
Dept. Stores, Inc., pref.(qu.) Si 54 Jan. 3 Holders of rec. Dec. 10
Ham berger (L.)& Co..634 %, cum.pf.(qu) 1% Dec. 1 Holders of rec. Nov. 14
Kemper-Thomas Co.. corn- (quar.)
Jan. 1 Holders of rec. Dec. 20
1244c.
Hamlin' Petroleum (mthly)
Sc. Nov. 20 Holders of rec. Oct. 31
Preferred (quar.)
14( Dec. 1 Holders of rec. Nov. 2
Bankers Nat. Investing Corp., com.(qu.)
70. Nov. 25 Holders of rec. Nov. 12
Kendall Co.. comport. pref. A (quar.)
$144
Dec. 1 Holders of rec. Nov. 100
Class A and B. common (guar.)
28c. Nov. 25 Holders of rec. Nov. 12
Klein (Emil D.) Co. common (quar.)
25c. Jan. 2 Holders of rec. Dec. 21
Convertible preferred (quar.)
15c. Nov. 25 Holders of rec. Nov. 12
Knudsen Creamery. class A & B (quer.)- 3744e. Nov. 20 Holders of rec. Oct. 31
Beech-Nut Packing Co., corn. (guar.)._
75c. Jan. 2 Holders of rec. Dee. 12
Kroger Grocery & Baking (quar.)
25c. Dec. 1 Holders of rec. Nov. 10
Beaton & Cadwell Mfg.(monthly)
12%c. Dec. 1 Holders of rec. Nov.30
6% preferred (qrar.)
144 Jan. 2 Holders of rec. Dec. 20
(Monthly)
12%6- Dec. 31 Holders of rec. Dec. 30
7% preferred (quar.)
134 Feb. 1 Holders of rec. Jan. 20
Belding. Corticelli, Ltd.. pref.(quar.). _ _
11 Dec. 15 Holders of rec. Nov. 30
View&StarCo.(L
Lake
ondon),interim
zw
1234
Bros.
Tobacco, Pref.(quar.)
Block
Dee. 31 Holders of rect. Dec. 24
62440. Dee. 31 Holders of rce. Dec. 21
Blue Ridge Corp.6% cony.Prof.(quar.)_ m75c. Dec. 1 Holders of ree. Nov. 5a Landers. Frary & Clark (quer.)
Laura Secord Candy Shops (quar.)
75e. Dec. 1 Holders of rec. Nov. 15
Borden Co., common (quar.)
500. Dec. 1 Holders of rec. Nov. 15
Lehigh Coal dr Nay.Co.(quar.)
20c. Nov.30 Holders of rec. Oct. 31
Borg-Warner Corp., pref. (quar.)
Si .4', Jan. 2 Holders of rec. Dec. 15
Lehn & Fink Products Co. corn.(quar.)_
Dec. 1 Holders of rec. Nov. 15
50e.
Boston Wharf Co. (0.-a.)
$2% Dec. 31 Holders of rec. Dec. 1
Liggett & Myers Tobacco Co.corn.(qu.) 51
Dec. 1 Holders of rec. Nov. 15
Brach (C. J.) & Sons. corn.(quar.)
10c. Dec. 1 Holders of rec. Nov. 10
Lincoln Stores, Inc.. COM.(quar.)
25e. Dec. 1 Holders of rec. Nov. 25
British Match (Interim)
zw2 Nov.22 Holders of rec. Oct. 28
Preferred (Quer.).
Dec.
$144
1 Holders of rec. Nov.25
Brown Shoe Co., corn. (quar.)
The. Dec. 1 Holders of rec. Nov. 21
Lindsay(C. W.)& Co., Ltd., pref.(ctn.). $194 Dec. 1 Holders of rec. Nov. 15
Buckeye Pipe Line (quar.)
75c. Dec. 15 Holders of rec. Nov. 18
Link Belt Co.. corn. (quar.)
20c. Dec. 1 Holders of rec. Nov.15
Burroughs Adding Mach. Co.(quar.)_
10c. Dec. 5 Holders of roe. Nov. 10
645% preferred (guar.)
134 Jan. 2 Holders of rec.
calemba Sugar Estates, corn. (guar.)._
15
40c, Jan. 2 Holders of rec. Dec. 15
Loblaw Groceterlas class A & B (quer.). I 20e. Dec. 1 Holders of rec. Dec.
Preferred (quar.)
Nov. 12
35e. Jan. 2 Holders of rec. Dec. 15
Class A & B (extra)
I
20c, Dec. I Holders of rec. Nov. 12
California Sugar Estate 7% pref. (qu.)..
35o. Jan. 2 Holders of rec. Dec. 15
Lock
(monthly).....
Joint
Pipe
corn.
Co..
67e.
Nov.
30
Holders
Canadian 011 Co., Ltd., pref. (quar.)of rec. Nov. 30
$2 Jan. 2 Holders of rec. Dec. 20
Common (monthly)
660. Dec. 31 Holders of rec. Dec. 81
Canadian Silk Prod., A.(quar.)
3734e. Dec. I Holders of rec. Nov. 15
Preferred (quar.)
$2
Jan. 1 Holders of rec. Jan. 1
Canfield 011 Co., 7% preferred (quar.)1% Dec. 31 Holders of rec. Dec. 21)
Lord
&
Taylor
(Quer.)
1st
pref.
5134 Dec. 1 Holders of rec. Nov. 17
Carter(Wm.)Co., pref.(quar.)
$1% Dec. 15 Holders of rec. Dec. 10
Ludlow Mfg. Assoc. (quar)
5134 Dec. 1 Holders of rec. Nov. 5
Caterpillar Tractor
1244c Nov.30 Holders of rec. Nov. 15
Lunkenbeimer Co., Prof. (quar.)
1 44 Jan. 2 Holders of rec. Dec. 22
Century Ribbon Mills, pref. (quar.)_
SI% Dec. 1 Holders of rec. Nov. 19
Lyons,
(J.)
&
Co., Ltd., ord. reg. A
zwIsSci Dec. 8 Holders of rec. Nov. 11
Chartered Investors, $5 Pref. (quar.)- - - $1.34 Dec. 1 Holders of
rec. Nov. 1
ManLschewitz(B.)& Co., pref.(quer.).- 514 Jan. 1 Holders of rec. Dec. 20
Chatham MM.Co.(N.C.)7% pt.(qu.) _
15% Jan. I
May Dept. Stores, corn. (quar,)
25e. Dec. 1 Holders of rec. Nov. 15
6% preferred (quar.)
114 Jan. 1
McColl Frontenac 011, corn. (guar.)
I 15c, Dee. 15 Holders of rec. Nov.
Chicago Transfer & Clearing. pf.(qu.)-- 5134 Jan. 2 Holders
of rec. Dec. 15
McIntyre Porcupine Mines (guar.)... _ 025c. Dec. 1 Holders of rec. Nov. 15
Chicago Yellow Cab Co., Inc.,com.(qu.)
1
25c Dec. 1 Holders of rec. Nov. 1S
Extra
u12.44c Dec. 1 Holders of rec. Nov. 1
Chrysler Corp., corn. (quar.)
25c Dec. 31 Holders of rec. Dec. 1
Merck Corp. prof. (quar.)
Jan. 2 Holders of ree. Dec. 17
$2
City Ice & Fuel, corn. (quar.)
50c Nov. 30 Holders of rec. Nov. 15
Metal Textile Corp.. prof. (quar.)_._ _ 81%c. Dec. 1 Holders of rec. Nov. 21
Preferred (quar.)
$1% Dec. 1 Holders of rec. Nov. 15
Metro Goldwyn Picts. Corp. pf.(qu.)- -Cleveland Quarries, com.(quar,)
154 Dee. 15 Holders of rec. Nov.25
10c Dec. 1 Holders of rec. Nov. 15
Midland Grocery Co.6% Pt. (s.-a.)
Jan, 1 Holders of rec. Dec. 20
$3
Coats(J. & P.), Ltd., corn.(quar
zw6d.
Mohawk
Mining Co. cap. stock (quar.).
25e. Nov. 29 Holders of rec. Oct. 310
Colgate-Palmolive-Peet Co.
Extra
6% preferred (quar.)
Nov. 29 Holders of rec. Oct. 310
$2
134 Jan. 1 Holders of rec. Dec. 10
Montreal Cottons, pref. (quar.)
Collins & Mk man Corp., pref.(quar.)__ _
5134 Dec. 15 Holders of rec. Nov.30
1% Dec. 1 Holders of rec. Nov. 18
Common (quar.)
5134 Dec. 15 Holders of rec. Nov.30
Columbia Pictures. cony. pref. (quar.)- 750. Dec. 1 Holders of rec. Nov. 170 Moore (Wm.)
Dry Goods Co.(guar.).- $2
Commercial Solvents Corp., coin. (s.-a.)
Jan. 1 Holders of rec. Jan. 1
30e. Dec. 31
Mt. Diablo Oil Mining & Devel. (qr.)._ .005c. Dec. 1 Holders of
Community State Corp., cl. A (quar.)_ 1244c. Dec. 31 Holders of rec. Nov.21
rec. Nov. 24
Holders of rec. Dec. 27
Murphy (G.C.) Co.,corn.(quar.)
400.
Compo Shoe Mach (quar.)
Dec.
1 Holders of rec. Nov. 19
1244c. Dec. 1
Muskogee Co.6% cum. pref. (guar.)._
114 Dec. 1 Holders of rec. Nov.19
Congoleum Nairn, Inc., corn. (guar.)...
15c. Dec. 15 Holders of rec. Dec. 1
Mutual
Chemical
of Amer.. pref.(Q11.)
Preferred (quar.)
$14 Dec. 28 Holders of rec. Dee. 15
$144 Dec. 1
National Biscuit Co.common (quar.)_
Consolidated Cigar Corp., pref.(quar._ $1% Dec. 1 Holders of rec. Nov. 15
70c. Jan. 14 Holders of rec. Dec. 16a
Holders of rec. Nov. 15
Preferred (quar.)
Consolidated Diversified Standard Sec.,
5134 Nov. 30 Holders of rec. Nov. 150
Nat. Bond & Share Corp. cap.stk.(qu.)_
Ltd., Ist pref. (initial)
250. Dee. 15 Holders of rec. Nov.30
25c, Dec. 1 Holders of rec. Nov. 1
National Dairy Prod. Corp.. corn.(qu.)Continental Chicago Corp., pt.(quar.)_ _
50c. Jan. 3 Holders of ree. Dec. 5
50c. Dec. 1 Holders of rec. Nov. 15
Preferred A and B (quer.)
Cord Rubber, $8 part. pref
Holders of rec. Dec. 5
25e. Dec. 15 Holders of rec. Nov. 15
National Lead Co. pref. A (quar.)
Como Mills. common (quar.)
3
5
1
41 j
Daen
15
e. 3 Holders of rec. Dec. 2
25c. Dee. 1 Holders of ree. Nov. 19
National Life & Accident Insurance
Creameries of Amer.,Inc.,53% pf.A (qu) 8745e. Dec. I Holders
roe.
of
Nov.
10
(Nashville, Tenn.) (quar.)
40e, Dec. 1 Holders of rec. Nov. 19
Crown Cork & Seal Co., Inc.. Id. (qu.).._
68c. Dec. 15 Holders of rec. Nov.30
Nat. Sugar Refg. of N. J., cap.stock
500. Jan. 3 Holders of rec. Dec. 1
Crum & Forster Ins., A dr B (guar.)._
10c. Nov. 30 Holders of rec. Nov. 19
New Bedford Cordage, corn.(initial)
7% preferred (quar.)
1234c. Dec. 1 Holders of rec. Nov. 15
1% Nov. 30 Holders of rec. Nov. 19
New England Grain Prod.,$7 pref.(qu.) 5134 Jan. 2 Holders of rec.
8% preferred (quar,)
Dec. 20
$2 Dec. 31 Holders of rec. Dec. 20
$6 preferred A (quar.)
Cumberl'd Pipe Line Co.,Inc.(liquidat'n) $2% Dec. 15 Nov.
Jan.
pec. 15
1 Holders of rec. Jan 133
30 to Dec. 20
Newberry (J. J.). pref. (floor,)
Cuneo l'ress. Inc., pref.(quar.)
134
Holders of rec. Nov. 16
$1% Dec. 15 Holders of rec. Dec. 1
Niagara Shares Corp.(Md.)Cushman's Sons, Inc., corn.(guar.)._
50c. Dec. 1 Holders of rec. Nov. 15
Class A preferred (Oust.)
$8 preferred (quar.)
Holders of rec. Dec. 16
$2 Dec. 1 Holders of rec. Nov. 15
Northern Pipe Line Co., cap. stk. (qu.) 312;4
5c j
Ja
7% preferred (quar.)
ann.. 3
2 Holders of rec. Dec. 16
Dee. I Holders of rec. Nov. 15
Northam Warren Corp., cony. pf. (qu.)Deere & Co., pref., new (quar.)
75e Dec. 1 Holders of roe. Nov. 15
10c. Dec. 1 Holders of rec. Nov. 15
Norwalk
Tire & Rubber, pref.(guar.).- 8744c Jan. 1 Holders of rec. Dec. 22
Preferred, old (quar.)
50c. Dec. 1 Holders of rec. Nov. 15
Ohio Oil Co., common (quar.)
Diamond Match Co.(quar.)
10c Dee. 15 Holders of rec. Nov. 19
25c. Dec. 1 Holders of rec. Nov. 15
Dictaphone Corp., pref.(quer.)
6% Preferred (quar.)
134 Dec. 15 Holders of rec. Dec. 3
$2
Dec. 1 Holders of rec. Nov. 18
Onomea Sugar Co.(monthly)
Doctor Pepper Co.(quar.)
20c Nov. 20 Holders of rec. Nov. 10
300. Dec. 1 Holders of rec. Nov. 18
Owens
Drug, Inc.. corn. (quer.)
$I% Jan. 1 Holders of rec. Dec. 16
$1 Dec. 1 Holders of rec. Nov. I5a Pacific Illinois Glass Co., pref.(quar.)
Tin Corp. (special stock)
Eastern Theatres. Ltd.. corn. (quar.).. _
Nov. 28
55
50c. Dec. 1 Holders of roe. Oct. 31
Pan American Petroleum & Transp. Co_
Eastman Kodak Co., corn. (quar,)
20e. Dec. 15 Holders of rec. Nov. 16
75c. Jan. 2 Holders of rec. Dec. 5
Paris Medicine (quar.)
Preferred (quar.)
100
$1% Jan. 2 Holders of roe. Dec. 5
Parker Rust(
Co.,common (quar,).
Electric Ferries. 8% pref. (quar.)
50c. Nov. 21 Holders of rec. Nov. 14
$2
Nov. 25 Holders of rec. Oct. 25
Preferred
35c. Nov. 21 Holders of
Ever Ready Co.(Great Britain). Ltd.Ponder (David) Grocery, el. A (quar.)._ 87440. Dec. 1 Holders of rec. Nov. 10
Org. reg
zw10 Nov.30 Holders of rec. Nov. 10
rec. Nov.19
Petrol 011 & Gas Co.. Ltd
Amer. dep, rec. ord. reg
1e, Dec. 20 Holders of roe. Dec. 1
zw10 Dec. 7 Holders of rec. Nov. 18
Pfandler Co.. preferred (quar,)
Faber. Coe dc Gregg, pref.(quar.)
5134 Dec. 1 Holders of rec. Nov.20
$141 Feb. 1 Holders of roe. Jan. 20
Phoenix Hosiery Co.,7% prof. (quar.)
Faultless Rubber Co.. corn. (quar.)___ _ 500. Jan. 1 Holders of
87c. Dec. I Holders of rec. Nov. 19
ree. Dec. 15
Piccadilly Hotel
Finance Service corn, A&B (quar.)
120
20c. jec. 1 Holders of rec. Nov. 15
Pillsbury Flour Mills, Inc., corn. (quar.)
Preferred (quar.)
15c. Dec. 1 Holders of rec. Nov. 15
1744e. Dec. 1 Holders of rec. Nov. 15
Pollock Paper & Box. prof.(oust.)
Firestone Tiro & Rubber. pref. (quar.)_ $1.54 Dec. 1 Holders of
5134 Dee, 15
rec. Nov. 15
Puritan Ice Co.. pref. (semi-ann.)
54
Fitz Simons & Connell Dredge & Dock
Dec. 1 Holders of rec. June 80
Purity Bakeries Corp. (quer.)
25e. Dec. 1 Holders of rec. Nov.15
Co.(quar.)
25c. Dec. I Holders of rec. Nov. 10
Quaker Oat, 6% Preferred (quar.)
Florsheim Shoe Co..6% prof. (quar.)
1% Nov. 30 Holders of ret. Nov. 1
134 Dec. 31 Holders of me. Dee. 15
Reliance
International Corp., 53 pref._ h50c. Dec. 1 Holders of rec.
Food Mach, Corp.,$6% pref.(monthly) $1
Dee. 15 Holders of roc. Dec. 10
Nov. 21
Reynolds Metals Co. cap.stock (qu.)_.
Freeport Texas (quar.)
25e. Dec. 1 Holders of rec. Nov. 150
50c. Dec. 1 Holders of rec. Nov. 15
Rich's, Inc.644% preferred (quar.)
Galland Mercantile Laundry (quar.)_
87%c. Dec. I Holders of roe. Nov. 15
144 Dec. 31 Holders of rec. Dec. 15
Rio
Tinto Co.Ltd.,Am.dep.rec.for pf.bear 256d Nov.
Gates Rubber Co., prof.(quar.)
$1% Dee, 1 Holders of red. Nov. 15
Rolland Paper Co., Ltd., cum. Pf. (qu.) 5134 Dec. 22 Holders of rec. Oct. 28
144 Dee. 1 Holders of rec. Nov. 12
Geist(C. II.) Co., Inc.,6% Pref. (qu.)._
1 Holders of rec. Nov. 15
St. Louis Car Co. Prof.(quar.)
General Cigar Co., pref. (quar.)
1% Dec. 1 Holders of rec. Nov.23
$1%
Seaboard 011 Co., of Del.(quar.)
25e, Dec. 12 Holders of rec. Nov. 11
General Motors Corp., corn. (quer.). _ _
10c. Dec. 15 Holders of rec. Dec. 1
Second
Investors
(R.
Corp.
I.)514 Feb. I Holders of rec. Jan. 9
$5 preferred (quar.)
6% pref.(guar.)
40e. Dee. 10 Holders of rec. Nov. 30
Golden Cycle Corp.(quar.)
750. Dec. 1 Holders of rec. Nov. 11
Selfridge Prov. Stores
250, Dec. 1 Holders of rec. Nov. 15
Gorham Nifg. Co.,corn.(quar.)
244 Dec. 1 Holders of rec. Nov. 15
Amer.dep,rec
75c. Jan1'33 Holders of rec. Dec. 20
Gottfried Baking Co., Inc.. el. A (quar.)
zw23.4 Dec. 8 Holders of rec. Nov. 15
Sherwin-Williams Co.,6 % pref.(quer.). 144
75c. Apr. I Holders of rec. Mar. 20
Class A (quar.)
Dec. 1 Holders of rec. Nov. 15
Simon (Franklin) dr Co., pref. (guar.)._
75e, July 1 Holders of rec. June 20
5134 Dec. 1 Holders of roe. Nov. 17
Class A (quar.)
Slscoe Gold Mines, Ltd cap.stock
75e. Oct. 1 Holders of rec. Sept. 20
3c.
Class A (quar-)
Dec.
15 Dec. 1 to Dec. 15
Socony-Vacrium Corp., cap. stk.
Preferred (guar.)
10c. Dec. 15 Holders of rec. Nov. 18a
134 Jan. 2 Holders of ree. Dec. 20
Southern Pipe Line Co., cap. stk.(qu.)._
(au.).
15c.
Dec. 29 Holders of roe. Dec. 28
Dec.
Grace(W.R.) dr Co.,6% pref.(s-a)
1 Holders of rec. Nov. 15
Sparks
Withington Co., pref.
_ $134 Dec. 15 Holders of rec. Dec. 8
Preferred A and B (quar.)
3 Dee. 29 Holders of rect. Dee. 28
Stand. Coosa Thatcher Co.7%(guar.).
pt.(qu.)..
Grand Rapids Varnish Corp. (guar.)._ 73.4e. Dec. 31 Holders of rec. Dec. 20
15% Jan. 15 Holders of rec. Jan. 15
Standard
011
Co.,
Inc.,
N.
75e. Dec. 1 Holders of rec. Nov. 10
Grand Union Co.$3 pref.(quar.)
Capital($25 par)(quar.)
25e. Dec. 15 Holders of rec. Nov. 15
Great Atlantic dr Pacific Tea Co. of
Capital stock ($25 par) (extra)
25c. Dec. 15 Holders of rec. Nov. 15
America (Md.)
Capital stock (5100 par)(quar,)
$1
Dec. 15 Holders of rec. Nov. 15
Si 3-6 Dec. I Holders of rec. Nov. 4
Common non-vt.
Capital stock ($100 par) (extra)
SI
Dee. 15 Holders of rec. Nov. 15
25c, Dee. 1 Holders of rec. Nov. 4
Extra
Standard 011 Co. of Calif.(quar.)
50e. Dec. 15 Holders of rec. Nov. 15
1% Dec. I Holders of rec. Nov. 11
7% preferred (quar.)
Standard Oil of Ind.(guar.)
25c. Dec. 15 Holders of rec. Nov. 15
Financial Chronicle
3482
Name of Company.
Per
When
Cent. Payable.
Miscellaneous (Concluded).
Standard Oil Co. of Nebraska (quar.)__
25e. Dec. 20
Standard Oil Export Corp., 5% Pf.(8.-a.) $2K Dec. 31
Stiz Baer & Fuller. 7% pref.(quer.)
43Ke. Dec. 31
Strawbridge & Clothier 6%serA pf.(qu.) 114 Dec. 1
Stmatherg-Carkmn TeleP• Mfg., nr.(qu.) 1% Dec. 1
Studebaker Corp. prof.(quar.)
$1% Dec. 1
Sun Oil Co., corn. (quar.)
25c. Dec. 15
Common, extra
Dec. 15
./3
Preferred (quar.)
Dec. 1
Superior Portl. Cem. Co. co. A(rathl.V.)- 273,0.Dec. 1
Telephone Invest. Corp.(monthly)
200. Jan. 1
Texas Gulf Producing
Nov. 19
Texas Gulf Sulphur (quar.)
50c. Dec. 15
Timken Detroit Axle Co.. pref.(quar.)
Dec. 1
Timken Roller Bearing Co.(quar.)
250. Dec. 5
UFA Film Co.. common (annual)
4
Underwood Elliott Fisher Co.,corn.(an.) 123c. Dec. 31
$1K Dec. 31
Preferred (quar.)
Union Tank Car Co., cap.stock (quar.)_
35c. Dec. 1
United Aircraft & Transport Corp.Preferred. A (quar.)
75c. Jan. 1
United Biscuit common (quar.)
50e. Dec. 1
United Milk Crate Corp., class A (quar.) 50e. Dec. 1
1K Jan. 2
United Piece Dye Worts. prof.(Quar4
U.S. Gypsum Co.. common (quar.)---40c. Jan. 2
1% Jan. 2
Preferred (quar.)
U.S. Pipe & Frly.. com.(quar.)
50e. Jan. 20
30e. Jan. 20
First preferred (quar.)
250. Jan. 1
United States Playing Card (quar.)
31K Nov.29
United States Steel pref. (quar.)
81K c Dec. 15
United Stores Corp. pref.(quar.)
Venezuelan Oil Conces., Ltd., interim_ ma 5
Victor-Monoghan Co., pref. (quar.)---- 31K Jan. 1
Vulcan Detinning Pref.(quar.)
151 Jan. 20
50c. Dec. 1
Want & Bond. Inc. cl. A (quar.)
50c. Jan. 2
Ward Baking, pref.(quar.)
Welch Grape Juice, preferred (quar.)... $1,1, Nov.30
Dec. 1
Wesson Oil & Snowdrift, Inc., prf.(quar.) $1
25c. Dec. 1
Western Auto Supply Co., cl. A & B(qu.
Western Dairy Prod.. Inc., $6 Pf. A (qu $181 Dec. 1
Dec. 1
Western Real Estate Tr.(Boston) (s.-a.) $3
White Rock Min. Spr. Co., corn.(quar.) 500. Jan. 3
18t preferred (quar.)
151 Jan. 3
2d preferred (quar.)
n$234 Jan. 3
Whitman (Wm.) Co., Inc., Pref. (qu.) 1131 Dec. 15
Wolverine Tube Co., pref.(quar.)
$151 Dec. 1
Woolworth (F. W.) Co., cap.stk.(an.). 600. Dec. 1
Woolworth (F. W.) Co. Ltd.
Amer. dep. rec.6% pref. reg. (s.-a.)-- rw 3 Dec. 8
25e. Dec. 1
Wrigley (Wm.) Jr. Co.(monthly)
250. Jan. 2
Monthly
25e. Feb. 1
Monthly
Books Closed.
Days Inclusive.
Holders of rec. Nov.28
Holders of rec. Dec. 12
Holders of rec. Dec. 16
Holders of rec. Nov. 15
Holders of rec. Nov. 21
Holders of rec. Nov. 10
Holders of rec. Nov.25
Holders of rec. Nov.25
Holders of rec. Nov. 10
Holders of rec. Nov.23
Holders of rec. Dec. 20
Holders of rec. Nov. 3
Holders of rec. Dec. 1
Holders of rec. Nov. 19
Holders of rec. Nov. 18
Holders of rec. Dee. 20
Holders of rec. Jan. 6a
Holders of rec. Nov. 15
Holders of rec. Dec. 17
Holders of rec. Nov. 15
Holders of rec. Nov. 15
Holders of rec. Nov. 19
Holders of rec. Nov.10
Holders of rec. Nov. 21
Holders of rec. Dec. 16
Holders of rec. Dec. 16
Holders of rec. Dec. 16
Holders of rec. Dec. 1
Holders of rec. Nov. 15
Holders of roe. Nov. 10
Holders of rec. Nov. 11
Holders of rec. Nov. 19
Holders of rec. Dec. 20
Holders of rec. Jan. 20
t The New York Stock Exchange has ruled that stock will not be Quoted exdividend on this date and not until further notice.
2 The New York Curb Exchange Association has ruled that stock will not be
quoted ex-dividend on this date and not until further notice.
a Transfer books not closed for this dividend.
d Correction. e Payable in stock.
IPayable in common stock. o Payable in scrip. h On account of accumulated
dividends. .1 Payable in preferred stock.
m Blue Ridge Corp.Pays 75e, at the option of the holder, providing written notice
is received by Nov. 15, or 1-32nd of a share of common stock for each share of such
Preference stock.
White Rock 2nd pref. stock, $2.50 per sh., equivalent to 50c. per share of corn
stock for which the 2nd pref. may be exchanged, and payable on the equivalent
number of corn. If so exchanged before the record date.
o A regular quarterly dividend on the convertible preference stock has been declared payable by the Commercial Investment Trust Corp. in common stock at the
rate of 1-52 of 1 share of common stock per share of convertible preference stock,
optional series of 1929, so held, or at the option of the holder in cash at the rate of
$1.50 for each share of convertible preference stock.
(Payable in Canadian funds.
ti Payable in United States funds.
•American Cities P. & L. Corp. pay 750. in cash or 1-32 of a share of cl B stock
on the cony. CIA stock.
so Less deduction for expenses of depositary.
Less tax.
Weekly Return of New York City Clearing House.
Beginning with March 31 1928, the New York City Clearing
House Association discontinued giving out all statements
previously issued and now makes only the barest kind of
a report. The new returns show nothing but the deposits,
along with the capital and surplus. The Public National
Bank & Trust Co. and Manufacturers Trust Co. are now
members of the New York Clearing House Association,
having been admitted on Dec. 11 1930. See "Financial
Chronicle" of Dec. 31 1930, pages 3812-13. We give the
'statement below in full:
STATEMENT OF MEMBERS OF THE NEW YORK CLEARING HOUSE
ASSOCIATION FOR THE WEEK ENDED SATURDAY, NOV. 12 1932.
Clearing House
Members,
• Capital.
*Surplus and Net Demand
Deposits,
Undivided
Average.
Profits.
$
$
$
80,061,000
Bank of N.Y.& Tr. Co_
9,134,200
6.000,000
Bank ot Manhat.Tr.Co. 22,250,000
216,616,000
34,566,500
National City Bank..--- 124.000.000
82,028,100 a984,363.000
Chemical Bk.& Tr.Co-233,712.000
21,000,000
45,640,i'00
Guaranty Trust Co
90.000.000 180,830.200 11830,903,000
Manufacturers Tr. Co
32,935,000
22.125,700
239,547,000
Central Hanover BkOrTr.
449,708,000
21,000,000
70,119,500
175,690,000
Corn Exch. Bk.Tr. Co
15,000.000
22,740,800
10,000,000
85,527,300
336,380,000
First National Bank50.000.000
75,148,000
301,118,000
Irving Trust Co
Continental Bk.& Tr.Co
4,000,000
6.754,900
17,817,000
Chase National Bank__. 143,000,000 118,336,500 c1,159,311,000
500,000
3,608,900
Fifth Avenue Bank
41,135,000
25.000,000
77,007,600 d495,703,000
Bankers Trust Co
10,000,000
21,218,400
25,845,000
Title Guar.& Trust Co
10,000.000
7,075,800
Marine Midland Tr. Co_
40,581,000
3,000.000
2.597.700
10,110,000
LaWY0111 Trust Co
12,500,000
22,093.500
192,939,000
New York Trust Co
7,000.000
8,583,900
40,898,000
Com'l Nat.Bk.& Tr.Co.
2,000.000
848.400
23,861,000
Harriman N.B.& Tr.Co.
8,250,000
4,385.300
34,572,000
Public N. B.& Tr. Co
Time
Deposits,
Average.
$
12,709,000
44,493,000
189.026,000
31,364.000
84,471,000
92,619,000
63,532,000
22,956,000
28,375,000
44,502,000
2,907,000
152.587,000
3,467,000
51,705,000
1,218,000
5,708,000
1.030,000
24.315,000
3,421,000
5,675,000
28,551,000
622,435.000 900,372.100 5,930,908,000 894,631,000
* As per official reports: National, Sept. 30 1932 State, Sept. 30 1932: Trust
1932.
Companies. Sept.
Includes deposits in foreign branches as follows: (a)$200,387,000;(b)$51,119,000:
$22,203,000.
(c) $54,538,000; (d)
Totals
The New York "Times" publishes regularly each week
returns of a number of banks and trust companies which are
not members of the New York Clearing House. The Public
National Bank & Trust Co. and Manufacturers Trust Co.,
having been admitted to membership in the New York
Clearing House Association on Dec. 11 1930, now report
weekly,to the Association and the returns of these two banks
are therefore no longer shown below. The following ,are
the figures for the week ending Nov. 11:
INSTITUTIONS NOT IN THE CLEARING HOUSE WITH THE CLOSING
OF BUSINESS FOR THE WEEK ENDED FRIDAY, NOV. 11 1932.
NATIONAL BANKS-AVERAGE FIGURES.
Holders of rec. Dec. 12a
Holders of rec. Dec. 12a
Holders of rec. Nov. 15
Holders of rec. Dee. 10
Holders of rec. Nov. 16
Holders of rec. Nov. 11
Holders of rec. Dec. 22
Holders of rec. Dec. 15
Holders of rec. Dec. 15
Holders of rec. Dec. 310
Holders of rec. Dec. 310
Holders of rec. Dec. 21
Holders of rec. Nov. la
Holders of rec. Nov. 25
Nov. 19 1932
Other Cash, Res. Dep., Den Other
Loans,
Gross
Disc. and Gold. Including V. Y. and Banks and
Bank Notes Elsewhere. Trust Cos. Deposits.
Investments.
Manhattan$
Grace National_ 19,121,900
$
1,500
a
$
$
$
92,000 1,402,400 1,040,200 16,805,200
BrooklynPeoples Nat'l__
5,000
74,000
5,703,000
42,000
369,000
5,365,000
TRUST COMPANIES-AVERAGE FIGURES.
Loans,
Discount &
Investments.
Cash.
Reserve Dep. Dep. Other
N. V. and Banks and
Elsewhere. Trust Cos.
ManhattanEmpire
Federation
Fulton
United States
$
$
$
48,854,500 *2,068,500 14,248,700
69,173
5.530,217
459,693
17,603,000 *2,296,800 1,078,800
68,370,125 5,542,460 21,418,512
BrooklynBrooklyn
Kings County
85,271,000
24,031,697
2,607,000 38,791,000
1.679,605 5,805,173
Gross
Deposits.
$
$
2.263.900 56,309,200
1,521,285 6.076,377
647,900 16,888,700
67,544,304
264,000 110,051,000
24,832,084
* Includes amount with Federal Reserve as follows: Empire, $744,800; Fulton,
$2,158,400.
Boston Clearing House Weekly Returns.-In the following we furnish a summary of all the items in the Boston
Clearing House weekly statement for a series of weeks:
BOSTON CLEARING HOUSE MEMBERS.
Week Ended Changesfrom
Nov. 16,
Previous
1932.
Week.
Capital
Surplus and profits
Loans, disc'ts & investls_
Individual deposits
Due to banks
Time deposits
United States deposits......
Exchanges for Clg. House
Due from other banks...
Reeve in legal deposiries
Cash In bank
Res.In excess in F.R. Bk..
li
79,900,000
67,518,000
843,253,000
584,355,000
169,773,000
200,603,000
17,021,000
13,017,000
170,035,000
80,844,000
8,345.000
6,644,000
$
Unchanged
Unchanged
-14,741,000
+2,214,000
-1,639,000
+445,000
-606,000
+2,717,000
+11,418,000
-1,560,000
+212,000
-1.826.000
Week Ended
Nov. 9.
1932.
$
79,900.000
87,518,000
857,994,000
582,141,000
171,412,000
200,158,000
17,627,000
10,300,000
158,619,000
82,404,000
8,133,000
8.470.000
Week Ended
Nov. 2.
1932.
$
79.900.000
57.518.000
870,341,000
587,172.000
162,408,000
205,674,000
19,659,000
13,158,000
150,049,000
78,730.000
7,928,000
5.197.000
Philadelphia Banks.-Beginning with the return for the
week ended Oct. 11 1930, the Philadelphia Clearing House
Association began issuing its weekly statement in a new
form. The trust companies that are not members of the
Federal Reserve System are no longer shown separately,
but are included with the rest. In addition, the companies
recently admitted to membership in the Association are
included. One other change has been made. Instead of
showing "Reserve with Federal Reserve Bank" and "Cash
in Vault" as separate items, the two are combined under
designation "Legal Reserve and Cash."
Reserve requirements for members of the Federal Reserve
System are 10% on demand deposits and 3% on time deposits, all to be kept with the Federal Reserve Bank. "Cash
in Vaults" is not a part of legal reserve. For trust companies not members of the Federal Reserve System the
reserve required is 10% on demand deposits and includes
"Reserve with Legal Depositaries" and "Cash in Vaults."
Beginning with the return for the week ended May 14 1928,
the Philadelphia Clearing House Association discontinued showing the reserve required and whether reserves held are above or
below requirements. This practice is continued.
Week Ended
Nov. 12.
1932.
Changesfrom
Previous
Week,
Week Ended
Nov. 5.
1932.
Week Ended
Oct. 29
1932.
$
$
$
$
77,011,000
77,011,000
77,011,000 Unchanged
Capital
200.378,000 Unchanged
200.378,000 200,378,000
Surplus and profits
Loans, discts. and invest_ 1.165,845,000 +10,174,000 1,155.671.000 1.154.489.000
15,880,000
13,304,000
15,604.000
+276,000
Exch. for Clearing House_
147,582,000 -5,784,000 153.366.000 148,944.000
Due from banks
197.517,000 +3,681,000 193.838.000 191,761,000
Bank deposits
630,206.000 +2,016,000 828.190,000 626.238,000
Individual deposits
276,167.000
+215,000 275.952,000 270,16e,000
Time deposits
1,130,890,000 +32,912,000 1,097.978.000 1,088.157,000
Total deposits
09 OAR non
4.1 .Cannon
01 A74 non
nu ann non
Financial Chronicle
Volume 135
3483
Weekly Return of the Federal Reserve Board.
The following is the return issued by the Federal Reserve Board Thursday afternoon, Nov. 17. and showing
the condition
)f the twelve Reserve banks ac the close of business cn Wednesday. In the first table we present the results for the System
xs a whole in comparison with the figures for the seven preceding weeks and with those of the corresponding week last year.
rile second table shows the resources and liabilities separately for each of the twelve banks. The Federal Reserve Agents
Amounts (third table following) gives details regarding transactions in Federal Reserve notes between the Comptroller and
Reserve Agents and between the latter and Federal Reserve banks. The Reserve Board's comment upon the
latest week appears on page 3439 being the first item in our department of "Current Events and Discussions" returns for the
COMBINED RESOURCES AND LIABILITIES OF THE FEDERAL RESERVE BANKS AT THE CLO K OF BUSINESS NOV. 16 1932.
RESOURCES.
Gold with Federal Reserve agents
Gold redemption fund with 12.8. Tress
Nov. 16 1932.1Noe. 9 1932. Nov. 2 1932.10c1. 26 1932. Oct. 19 1932.10c1. 12 1932.! Oa.5 1032.
Sept. 28 1932. Nov. 181931.
1
$
S
I
1
$
$
1
3
1
$
2,241,169,000 2,228.469.000 2,207,934,000 2,204,064,000.2,211,864.000 2,198,090,000 2,181.139.000 2,166,537.000
1,710,806,000
42,106,000
42,040,000
43,102.000
43,746.000
47.573,000, 47,610,000
48.287.000
48,538,000
70,617,000
Gold held exclusively agst. F. It. notes_ 2,283.275,000 2,270.509.000'2,251,036,000 2,247.8i0,0002.259,437.000 2.245.700.0002,229.426.000
321,867,000 319,006.000 335.268,000 315,031,000 304.922.000 299.056.000 300,570,00012,215.075.000 1,781,423,000
Gold settlement fund with F. B.. Board
Gold and gold certificates held by banks_ 421,927,000 419,230,000 417.343,000 429.782,000 391,246.000 387.202.000, 382,532.000 264.484.000 349,601.000
399.087.0001 743,752,000
,
Total gold reserves
3,027,069,000 3,009,645.000 3.003.647,000 2,992.623,000 2.955.605.000 2.931.958.000 2,912,528.000 2.878.646.0002,874
.776.000
Reserves other than gold
192,382,000 185,967,000 196,582,000 198.809,000 196,523.000 192.073.000, 196.940.000
205.907.000, 168,046.000
Total reserves
3,219,451,000 3,195,612,000 3,200,229.000 3.191.432,0003,152,128,000 3,124.031.000 3,109.468.000
3,084.553.000 3,042,822.000
Non-reserve cash
75,817,000
73,220,000
74,459,000
80.879.0001 73,476.000j 76,681,000
85.171.000
83.946,000
70,438,000
Bills discounted:
1
U.
S.
Govt.
Secured by
101.293,000 100,992,000 107.622,000 111,544,000
obligations
98,127,000 103.286.000 106.946,000
205,879,000 209,961,000 218,422,000 210.778,000 215,412.000 224,381,000, 226,481,000 107,059,000 314.356,000
Other bills discounted
232,588.000 347,685,000
Total bills discounted
307,172,000 310,953.000 326.044,000 322,322.000 313.539.000 327,667.000 333,427,000
339,647,000 662,041,000
Bills bought in open market
34,524,000
34.002,000
34,053,000
33.583,000
33,695,000
33,278.000
33.266,000
33.604,000 534,017,000
U. S. Government securities:
Bonds
420,693,000 420,665.000 420,651.000 420,811,000 420,863.000 420,768,000 421.189,000 421,482,000
Treasury notes
368,384,000 362,872,000 362.874,000 363,881.000 352,086.000 390,578,000 396,295.000 402,866,000 316,505,000
23,968,000
Special Treasury certificates
Certificates and bills
1,061,657,000 1,067,160,000 1.067.258,000 1,066,257.000 1,078.050.000 1,039.550,000,1,033,834,000 1,029.335.000 386,586,000
Total U. S. Government securities
Other securities
Foreign loans on gold
1,850,734,000 1,850,697.000 1,850,783.000 1,850,949,000 1,850,999,000 1,850.896,000 1,851,318.000 1,853,683.000
5,569,000
5,427,000
5,425.000
5,422,0001
5.437.000
5,425,000
5,911,000
4,872.000
Total sills an1 securities
Due from foreign hanks
Federal Reserve notes of other banks
Uncollected Items
Bank Premises
All other resources
2,197,999,000 2,201,079,000 2,216.305.000 2.212,391,000 2,203.558,000 2,217,263.000 2.223.922.0002,231
,S06.000 1,956,146,000
2.749,000
2.774.000
2,873.000
2.868,000
2.698.000
2.698.000
2,686.000
8.706,000
2.6 3.000
14,310,000
12.219,000
13,140.000
18.321,000
15.358.000
15.900.000
13.507,000
15.648.000
17,804,000
439.203.000 317,900.000 361,411.000 332,923.000 404.398.000 378,192.000 374.122,000 341,295.000
494,794,000
58,169,000
58,169.000
58,137.000
58.137,000
58.134.000
58.135.000
58,127.000
58.126.000
59,462,000
38,157,000
36,994,000
36,824,000
45,251,000
38,872,000
38.012,000
45,064.000
44,046,000
42,442,000
Total resources
LIABILITIES.
F. R. notes In actual circulation
DePOSItS:
Member banks—reserve account
Government
Foreign banks
Other deposits
6,045,855.000 5,897,967,000 5.963,378,000 5,940.115.0005,955,708.000 5.914403.000!5.903.577.000 5,862.083,000 5,692,614,000
Total deposits
Deferred availability Items
Capital paid in
Surplus
All other liabilities
727,059,000
33,029,000
2,699,747,000 2,715,299.000 2.700,818,000 2,688,871,000 2,717.430,000 2,737,843.000 2,744.868,000 2,720,988,000 2,433,392,000
1
2,399,722,000 2,342,333,000 2,384.097,000 2,411,946,000 2,325.546.0002,245,701,000 2,283,065.000 2,268.521.000 2,123,875,000
26,036,000
28,322.000
31,305,000
50,058,000
27.164.000
23.877.000
28.078.000
48.405,000
23,571,000
10,922,000
10.717,000
9.888.000
9,852.000
8.177.000
10.280.000
9,194.000
9.864.000 137.415,000
22.445,000
23,086,000
28.389,000
53.071,000
28,820,000
20,117,000
27,953,000
26,352,000
27,623,000
2,459,125,000 2,404,458,000 2,453.679.000 2.469,993,000 2,391.810.000 2.357.097.000 2.344,989.000 2,353.142,000 2,312,484,000
431,775,000 322.983.000 355.005.000 326,987.000 391.777.000 364.264.000 360.165.000 334.900.000 488.060,000
151,993,000 152.068.000 152,105,000 152.303.000 153.018.000 153,040.000 152.966.000 152.996.000 164,074.000
259,421,000 259.421 000 259.421.000 259.421.000 259.421,000 259.421,000 259.421.000 259.421.000 274,636,000
43.794,000
43,738,000
42,350.000
42,738,000! 41,168.000
42.252.000
42,540.000
19,968,000
40,636,000
Total liabilities
6,045,855,000 5,897,967,000 5.963,378,000 5,940,115,000 5,955.708,0005.914,403,000 5.903,577,000 5,862,083.000 5,692,614,000
Ratio of gold reserve to deposits and
F. R. note liabilities combined
58.6%
58.7%
58.2%
57.5%
57.8%
57.2%
58.0%
60.5%
56.7%
Ratio of total reserves to deposits and
F. n.. note liabilities combined
62.4%
62.4%
62.1%
61.3%
61.1%
61.7%
61.9%
64.1%
60.8%
Contingent liability on bills purchased
for foreign correspondents
34,954,000' 37,916,000
38,847.000
45,227.0001 44,236.000
41.766.000
37.993.000
43.486,0001 114,685,000
Maturity Distribution of Bills and
Short-Term Securities1-16 days bills discounted
10-30 days bills discounted
31-60 days bills discounted
61-90 days bills discounted
Over 90 days bills discounted
$
1
1
222.695,000 221,935,000
22.430,000
26.786.000
32,571.000
34,283 000
19,238,000
18,325,000
10,238,000,
9.624,000
237.414.000
25.973.000
33.709.000
19.704.000
9,244.000
232.592.000
24.777,000
35.984,000
20.717.000
8,252.000
223.281.000
25.165.000
36,222.000
21,253.000
7.618,000
230.672,000
28,590.000
36,152.000
25.026,000
7,227,000
231,724,000
29,498.000
38.989.000
26,144.000
7,072.000
236.003.000
27,998.000
41,266,000
27,174,000
7,206.000
474,059,000
57,838,000
80,108,000
30,214.000
19,822.000
Total bills discounted
1-15 days bills bought in open market
16-80 days bills bought In open market
31-60 days bills bought in open market
61-90 days bills bought In open market
Over 90 days Ms bought In open market
307,172.000 310.953,000 326.044.000
6,186.000,
5,957,000
5.142.000
11,388.000
8,517.000
5.516.000
9,179,000
8.698.000
11.893.000
7,771,000, 10,830,000
11,502.000
1
1
322.322.000
5.857.000
5,689.000
11,575.000
10,574.000
313,539.000
6.105.000
4,118.000
7.405.000
15,955.000
327.667.000
5,142.000
9,766.000
8,085.000
10.285,000
333.427,000
3,800.000
5,357.000
5,962.000
18,063.000
84.000
339,647,000
2,267.000
1,644,000
1,792,000
27,871.000
30.000
662,041.000
135,293,000
155,912,000
222,576.000
18.573.000
1,713.000
Total bills bought in open market
1-15 days U. S. certificates and bills
10-30 days TJ. S. certfficates and bilis_
31-60 days II S. certificates and bills
61-90 days U. S. certificates and bills
Over 90 days certificates and bills
34,524.000
120.249,000 1
34,002.000
34.053,000
33.278.000
33,583,000
33.266.000
33.695.000
33.604,000
120,750.000 109,100,000
89,456.000 100.240.000
55.000.000
39,500.000
19.822,000
69,000.000 120,250.000 120,850.000 109.100.000
36.600,000
55.000 000 150,417,000
124.600,000
68,600 000
68,600.000
69,000.000 120.249.000 189.749.000 171.350.000 156.349,000
150,739,000, 139,839.000 126.064,000 167.663.000 125.456.000
61,600,000
76.600.000
25,000.000
666.069,000, 668,971,000 643,244,000 669,244.000 664.245.000 662,145,000 630,644,000 677,747.000
1
,
1,061.657.000 1,067.160.000 1,067,258,000 1,066.257.000 1.078.050.000 1.039.550.000 1,033,834,000 1,029,335,0GO
.' .
. .
,1
, ..000
5,176,000
4,442.000
4,790.000
5,081.000
4,632.000
1,000.000
1,257.0001
507.000
758.000
425.000
608,000
25,000
133.000
50.0001
50,000
10,000
143,000
199,000
199.000
239,000
222,000
50.000
68.000
10,000
172,000
151,000
205.000
5,569.0001
5,425,000
5,425,000
5,427,0001
5,911,000
5,422,000
5,437,000
4,872,000
534,017.000
45,868.000
73,221,000
16,653,000
60,286,000
190,558,000
Total U. S. certificates and bills
1-15 days municipal warrants
16-30 days municipal warrants
31-60 days municipal warrants
611-90 days municipal warrants
Over 90 days municipal warrants
Total municipal warrants
Federal Reserve Notes—
Issued to F. R. Bank by F. R. Agent
Held by Federal Reserve Bank
S
386,586,000
655.000
270.000
3,194.000
63,000
27,000
4,209,000
1
2,925,250.000 2,932,116.00042,918,711,000 2,931,112,000 2.957.817.000 2,968.793.000 2,980.299,000
2,972,797,000 2,760,692,000
225,503,0001 216.817,000i 217,893.000 242,241,000
240,387,000 230.950.000 235,431.000 251.809,000 327,300,000
In actual circulation
2,699,747,000 2.715.299,00012,700,818,000 2,688,871,000
2.717,430,000 2,737,843,000 2,744.868.000 2,720,988.000 2,433,392,000
=
Collateral Held by Agent as Security for
I
1
Notes Issued to Bank—
By gold and gold certificates
1,073,224,0001,089
1
,224.000 1.071,819.000 1,057,649,000
1
Gold fund—Federal Reserve Board
1,167,945,000 1,159,245,000 1,136.115,000 1,146.415.000 1,068,749.000 1.059.075.000 1.059,074,000 1,030,622,000 694,876,000
By eligible paper
290.799.000 294,388.000 309.485.000 306,282.000 1.143,115.000 1,139.015.000 1,122,065.000 1.135,915.000'I,015.930,000
IL S. Government securities
423,300,000, 424.900.000 439.100.000 451.200.0001 297,791.000, 311,918,000 317,494.000 323.915.000 1,138,557,000
464.500.000, 495.000,0001 516.200.000 503,800.000
1
——
Total
2,955,268,00012,947,757,000 2.956.519,000 2.961.546.000
2,974,155.000 3.005,006.000 3,014,833,000 2,994,252,000 2,849,363,000
WEEKLY STATEMENT OF RESOURCES AND LIABILITIES OF EACH OF
THE 13 FEDERAL RESERVE BANKS AT CLOSE OF BUSINESS
NOV. 16 193
Two ciphers (00) omitted.
Federal Reserve Bank of-Total.
Boston. New York. Phila. Cleveland. Riehmond
Atlanta. Chicago. St. Louts. Mtnneap. Kan.City. Dallas. San/Pratt.
RESOURCES.
$
3
$
Gold with Federal Reserve Agents 2,241,169,0 185,227,0 609,724.0 154,300,0 177,470,0 71,500,0
$
648,970,0 71,115,0 36.885,0 58,480,0 23,735,0 147,263,0
42,106,0 3,031,0
resin
fund with 03.5. Tress__
Gold
4.662,0 5,097,0 5,834,0 1,968,0 56,500,0
3.371,0 4,260,0 1,722,0 2,296,0 2,364,0 1,261,0 6.220,0
Gold held excl. asst. F. R. notes 2,283,275,0 188,258,0 614,386.0159.397,0 183,304,0 73,488,0
59.871,0
Gold settle't fund with F.R.Board 321,867,0 12,952,0
93,706,0 12,352,0 27,341,0 2,640,0 4,159,0 653,230,0 72,837,0 39,181,0 60,844,0 24,996,0 153.483,0
Gold and gold ctfs. held by banks_ 421,927,0 15,655,0 290,653,0 8,103,0 19,525,0 8,551.0 8,892,0 98,339,0 9,825,0 10,023,0 14,005,0 6,419,0 30,106,0
27,277,0 5,789,0 2,328,0 10,939,0 4,125,01 20,090.0
3,027,069,0 216,865,0 098,745,0179,852.0 230,170,0 84,679,0
Total gold reserves
72,922,0
192,382,0 17,635,0
ReSerVeS other than gold
59,161,0 24,635,0 13,298,0 8,315,0 5,101,0 778,846,0 88,451,0 51,532,0 85,788,0 35.540,0 203,679,0
28,634,0 9,094,0 4,561,0 5,271,0 7,204,0, 9,473,0
3,219,451,0 234,500,0 1,057,906,0 204,487,0 243,468,0 92,994,0
Total reserves
78,023,0 807,480,0 97,545,0 56,093,0 91,059,0 42,744,0 213,152,0
cash
75,817.0
18,520,01 4,333,0 4,364,0 3,046,0 5,728,0
Non-reserve
4,283,0
15,047,0 3,714,0 2,164,0 2,682,0 2,733,01 9,203,0
Bills discounted:
31,690,01 13,035,0 7,749,0 2.422,0 2,392,0
See. by U.S. Govt. obligations_ 101,293,0 3,973,0
606,0 1,432,0
784.01 27,430,0
205,879,0 8,618,0
28,213.01 34,480,0 19,644,0 16,166,0 18.315,0 5,620,0 4,160,0
Other bills discounted
11,783,0 4,689.0 11,440.0 14.010,0 7,354,0, 31,167.0
1
1
discounted
307,172,0
12,591,0
bills
59,903,0
Total
47,515,0 27,393,0 18,588,0 20,707,0
34,524,0 2,338,0
10,391,0! 3,169,0 3,097,0 1,945,0 3,585,0 17,403,0 8.849,0 12,046.0 15,442,0 8,138,0' 58,597,0
Slltsb)UtLt100Pm0 market
4,122,0 1,008,0
634,0
858,0. 2,488,
889.0
Financial Chronicle
3484
Total.
Two Ciphers (00) omitted.
RESOURCES (Concluded)U1 B. Government securities:
Bonds
Treasury notes
Certificates and bills
Boston. New York.
8
8
8
Phila.
$
Nov. 19 1932
Cleveland. Richmond Atlanta. Chicago. Si. Louts. Minneap. Kan.City. Dallas. San Fran.
8
$
S
8
$
$
8
2
$
420,693,0 20,333,0
368,384,0 20,913,0
1,061,657,0 55,467,0
187,716,0 31.172,0 36,492,0 9,649,0 9,564,0 40,775,0 13,941,0 17,206,0 11,774,0 16,801,0 25,270,0
140,563,0 29,550,0 38,761,0 10,247,0 10,127,0 47,208,0 14,274,0 10,248,0 12,432,0 7,222,0 26,839,0
407,513,0 78,547,0 103,029,0 27,236.0 26,906,0 174,227,0 37,941,0 27,212,0 33,046,0 19,198,0 71,335,0
Total U. S. Govt. securities__ 1,850,734,0 96,713,0
5,569,0
Other securities
735,792,0 139,269,0 178,282,0 47,132.0 46,597,0 262,210,0 66,156,0 54,666,0 57,252,0 43,221,0 123,444.0
236,0
4,036,0 1,297,0
Total bills and securities
Due from foreign banks
F. R. notes of other banks
Uncollected items
Bank premises
All other resources
810,122,0 191,250,0 208,772,0 67,665,0 70,889,0 283,735.0 76,013,0 67,582,0 73,583,0 52,217,0 184,529,0
19,0
198,0
12,0
290,0
106,0
403,0
81,0
310,0
115,0
83,0
903,0
762,0
806,0 1,170,0
726,0 1,043,0
861,0 1,605,0
309,0 1,271,0
533,0
4,964,0
121,637,0 38,504,0 41,954,0 35,293,0 11,269.0 51,023,0 18,817,0 0,555,0 22,398,0 16,621,0 22,293,0
14,817,0 2,947,0 7,968,0 3,619,0 2,489,0 7,828,0 3,461,0 1,835,0 3,649,0 1,787,0 4,433,0
718,0 1,450,0 3,048,0 3,890,0 1,674,0 1,011,0 1,764,0
890,0 1,338,0 1,220,0
20,070,0
2,197,999,0 111,642,0
229,0
2,749,0
14,310,0
260,0
439,203,0 49,839,0
58,169,0 3,336,0
38,157,0 1,084,0
Total resources
6,045,855,0 405,173,0 2,048,939,0 443,082,0 508,992,0 206,823,0 173,255,0 11687950 201,342,0 139,811,0 195,514,0 117.830,0 436,299,0
LIABILITIES.
F. R. notes in actual circulation
2,699,747,0 102,722,0 578,587,0 237,714,0 277,045,0 100,844,0 98,548,0 671,869,0 101,882,0 78,728,0 90,889,0 39,326,0 231,593,0
Deposits:
Member bank reserve account_ 2,399,722,0 128,156,0 1,182.761,0 120,904,0 139,864,0 40,729,0 42,372,0 383,474,0 58,304,0 39,113,0 66,369.0 45,342,0 143,334,0
1,512,0 1,932,0 1,026,0 2,613,0 1,374,0 2,045,0 1,274,0 1,822,0
6,853,0 1,590,0 1.865,0
26,036,0 2,130,0
Government
362,0
383,0 1,387,0
714.0
414,0
228,0
3,946,0 1,066,0 1,045,0
290,0
300,0
787,0
10,922,0
Foreign bank
348,0 1,236,0
542,0
177,0 2,037,0 2,276,0
298,0
10,239,0
38,0 5,087,0
74,0
93,0
22,445,0
Other deposits
Total deposits
Deferred availability items
Capital paid in
Surplus
All other liabilities
2,459,125,0 131,166,0 1,203,790,0 123,737,0 144,811,0 53.931,0 45,229,0 386,235,0 62,515,0 41,013,0 68,788,0 46,944,0 150,957,0
431,775,0 49,280,0 116,702,0 36,196,0 41.624,0 33,990,0 11,474,0 50,935,0 21,174,0 8,996,0 21,749,0 17,457,0 22,198,0
58,981,0 16,093,0 14,217.0 5,169,0 4,682,0 16,226,0 4,403,0 2,907,0 4,057,0 3,898,0 10,504,0
151,993.0 10,856.0
75,077,0 26,486,0 27,640,0 11,483,0 10,449,0 38,411,0 10,025,0 6,356,0 8,124,0 7,624,0 17,707,0
259,421.0 20,039.0
15,793,0 2,856,0 3,655,0 1,406,0 2,873,0 5,119,0 1,343,0 1,811,0 1,907,0 2,581,0 3,340.0
43,794,0 1,110,0
6,045,855,0 405,173,0 2.048,939,0 443,082.0 508,992,0 206,823,0 173,255,0 1168.795,0 201,342,0 139,811,0 195,514,0 117,830,0 436,299,0
Total liabilities
.ifemeranda.
59.3
55.7
54.3
76.3
46.8
56.6
57.7
60.1
59.4
72.4
57.0
49.5
62.4
Reserve ratio (per cent)
Contingent liability on bills pur2.i ova n
9
AR
,
.n
11
140
0
30380
3.508.0
1.413.0
1.307.0
4.734.0
1.230.0
777.0
1
1)240
0000
2.437.0
chased for foreign correspood'ts
FEDERAL RESERVE NOTE STATEMENT.
Total.
Federal Reserve Agent at-
Boston. New York.
$
$
Two Ciphers (00) omitted.
$
Federal Reserve notes:
Issued to F.R.Bk. by F.R.Agt. 2,925,250,0 208,280.0
Held by Federal Reserve Bank_ 225,503,0 15,558,0
I
11
Cleveland. Richmond Atlanta. Chicago. St. Louts. Ammar). Kan.City. Dallas. San Fran,
--$
I
2
$
$
2
$
$
$
578,587,0 237,714,0 277,045,0 100,844,0 98,548,0 671,869,0 101,882,0 78,728,0 90,889,0 39,326,0 231,593,0
440,724,0 78,490,0 71.470,0 12,920,0
169,000,0 75,810,0 106.000,0 58,580,0
57,401,0 47,499.0 27,352,0 19,295,0
50,000,0 85,000,0 17,000,0
0 nix seen 91)0 Mtn
1
$
651,881,0 251,550,0 289,245,0 106,651,0 115,996,0 703,508,0 109,339,0 81,738,0 99,069,0 45,756,0 262,237,0
73,294,0 13,836,0 12,200,0 5,807,0 17.448,0 31,639,0 7,457,0 3,010,0 8,180,0 6,430,0 30.644,0
2,699,747,0 192,722.0
In actual circulation
Collateral held by Ago, as security
for notes ,ssued to bank:
1,073,224,0 47,010,0
Gold and gold certificates
1,167,945,0 138,217,0
Gold fund-F.R. Board
290,799,0 12,557,0
Eligible paper
423,300,0 11.400,0
D. S. Government securities
•••...•
Phila.
13.500,0 271,970,0 21,315,0 13,885,0 9,680,0 12,260,0
43,000,0 387,000,0 49,800.0 23,000,0 48,800,0 11,475,0
21.158,0 17,228,0 8,679,0 0.802,0 14,946,0 7,798,0
41,000,0 42,000,0 29,000,0 35.900,0 27,000,0 14,400,0
007 1910951 7090 280 0220107 7050110 05R nvng 'MR
0100 394 0
82587010n Arnt n
Am
90,000,0
57,263,0
47,084,0
70,000,0
nqz n 904 247 A
Weekly Return for the Member Banks of the Federal Reserve System.
Following is the weekly statement issued by the Federal Reserve Board, giving the principal items of the resources
and liabilities of the reporting member banks from which weekly returns are obtained. These figures are always a week
behind those for the Reserve banks themselves. Definitions of the different items in the statement were given in the statement of Dec. 14 1917, published in the "Chronicle" of Dec. 29 1917, page 2523. The comm•nt of the Reserve Board upon
the figures for :he latest week appears in our department of "Current Events and Discussions"on page 3439, immediately pre.
ceding which we also give the figures of New York and Chicago reporting member banksfor a weak later.
Beginning with the statement of Jan. 9 1929, the loan figures exclude "Acceptances of other banks and bills of exchange or drafts sold with endorsement, and include
all real estate mortgages and mortgage loans held by the bank. Previously acceptances of other banks and bills sold with endorstemmt were Mobile 1 with loans, and some
of the banks included mortgages In Investments. Loans secured by U. S. Government obligations are no longer shown separately. only the total of loans on securities
being given. Furthermore, borrowing at the Federal Reserve is not any More Subdivided to show the amount secured bY U. S. obligations and those secured by cominerci al
paper, only a lump total being given. The number of reporting banks is now omitted, in Its place the number of cities Included (then 100, was for a time given, but beginning Oct. 9 1929 even this has been omitted. The figures have also been revised to exclude a bank in the San Francisco district with loans and invest•nents of $135,000,000
en Jan.2 1929. which had then recently merged with a non-member bank. The figures are now given in round millions instead of In thousands
PRINCIPAL RESOURCES AND LIABILITIES WEEKLY REPORTING MEMBER BANKS IN EACH FEDERAL RESERVE DISTRICT AS AT CLOSE Ole
BUSINESS NOV. 9 1932 (In millions of. dollars).
,
Total. 1 Boston. New York Phila. Cleveland. Richmond Atlanta. Chicago. St. Louts. hanneap. Kan.City. Dallas, San Fran,
Federal Reserve District$
1,932
10,425
733
4,021
606
4,295)
6,130
284
449
1,823
2,198
299
307
Loans-total
On securities
All other
585
503
$
2,161
1,107
312
323
501
606
117
195
106
217
180
$
$
8,601
493
4,017
527
825
273
U. S. Government securities
Other securities
5,291
3,310
304
189
2,709
1,308
248
279
494
331
157
116
Reserve with F. R. Bank
Cash in vault
Net demand deposits
Time deposits
Government deposits
Due frnm banks
Due to banks
,
._ ___ .-. .... ,-, __
1,907
217
11,505
5,707
484
1,618
3,294
no
101
16
757
409
21
181
173
1,015
53
5,899
1,336
231
132
1,481
Si
73
14
647
280
41
130
209
7
108
26
851
809
35
94
242
11
35
14
287
231
17
94
104
il
Investments-total
2
2
2
513
301
515
$
391
$
1,725
1,391
286
182
251
243
970
610
781
107
179
53
129
78
173
72
171
245
725
770
227
122
264
148
755
456
314
112
115
62
60
144
120
420
335
329
39
1,273
904
39
323
408
2
41
7
284
201
7
108
109
2
20
5
158
143
2
67
57
43
)3
337
181
7
151
161
n
..
...N. .
OIO
.WOWOWO WO
$
1,133
..
5
8,038
$
19,026,
ZO.,
..... U.,
$
1,226
Loana and investments-total
88
15
569
890
37
171
179
Kn
Condition of the Federal Reserve Bank of New York.
The following shows the condition of the Fed( rd Reserve Bank of New York at the close of business Nov. 16 1932, in
comparison with the previous week and the correspording date last year:
ReseturesGold with Federal Reserve Agent
Gold redemp. fund with U. S. Treasury_
Nov. 16 1932. Nov. 9 1932. Nov. 18 1931.
8
$
$
609,724,000 603,724,000 347,336,000
16,972,000
4,762.000
4,662,000
Gold held exclusively Met. F. It. notes
Gold settlement fund with F. R. Board.
Gold and gold ctfs, held by bank
614,386,000
93,706,000
290,653,000
608,486,000
69.645.000
284,382,000
Total gold reserves
Reserves other than gold
998,745,000
59,161,000
962,513,000 1,001,755,000
36,522,000
56,091,000
Total reserves
Non-reeerve cash
Bills discounted:
Secured by U.S. Govt. obligations
Other bills discounted
Total bills discounted
Bills bought In open market
U. S. Government securities:
Bonds
Treasury notes
Special Treasury Certificates
Certificates and bills
Total U.S. Government securities
Otner securities (see note)
Foreign loans on gold
364,308,000
122,377,000
515,070,000
Resources (Concluded)Due from foreign banks (see note)
Federal Reserve notes of other banks
Uncollected items
Bank premises
All other resources
Total resources
1,057,906,000 1,018.604,000 1,038,277.004
19,698,000
20,051.000
18,520,000
31,691,000
28,212,000
31,112,000
27.366,000
61,900,000
47,623,000
59,903,000
• 10,301,000
58,478,000
10.371,000
109,523,000 :
144,595,000
107,938,000
3,614,000
187,716,000
140,562.000
188,229,000
137.485,000
407,514,000
412,578,000
129,674,000
735,792,000
4,036,000
738,292,000
3.921,000
241,226,000
15,690,000
Nor, 10 1932, Nov. 9 1932, Nov. 18 1931.
s
S
$
903,000
3,162,000
929,000
4,964,000
7,064,000
2.680.000
121,637,000
83,366,000 138,375,000
14,817.000
15,240,000
14,817,000
15,186,000
20,070,000
19,327,000
2,048,939,000 1,970,836,000 1,748,036,000
MobilitiesFed. Reserve notes in actual circulation_ 578,587,000 586,369,000
Deposits-Member bank reserve tool 1,182,761,000 1,123.254,000
Government
6,853,000
12,265,000
3,946,000
Foreign bank (see note)
3,740,000
10,239,000
Other deposits
11,206,000
484,523,000
912,593,000
6,829,000
47,155,000
10,886,000
1,203,799,000 1,150,555,000
116,702,000
84,166,000
58,981,000
59,009,000
75,077,000
75,077,000
15,793,000
15,660,003
977,463,000
135,328.000
64.093,000
80,575,000
6,054,000
Total deposits
Deferred availability Items
Capital paid In
Surplus
All other liabilities
Total liabilities
2,048,939,01)0 1,970,836.000 1,748,036,000
Ratio of total reserves to deposit and
Fed. Reserve note liabilities combined_
71.0%
59.4%
58.6%
Contingent liability on bills purchased
for foreign correspondents
38.413,000
11,146,000
11,866.000
Total bias and securities (see note)._ 810,122,000 811.062.000 511,034,000
NOTE.-13eginning with the statement of Oa. 17 1925. two new items were added In order to show separately the amount of balances held abroad and amounts due to
the caption "All Other earnings assets," previously made up of Federal Intermediate Credit Bank debentures, was changed to "Other
foreign correspondents. In addition,
more accurate description of the total of the discount
securities," and the caption. "Total earnings assets" to "Total Mlle and securities." The latter term WAS adopted as a
the provisions of Section 13 and 14 at the Federal Reserve Act, which It was stated are the only Items included therein.
under
acquired
securities
acceptances and
Financial Chronicle
Volume 135
United States Liberty Loan Bonds and Treasury
on the New York Stock Exchange.—
Sinanrial
Certificates
0..1rrxrrtirte
Tornuttrcial
Daily Record of U. S. Bond Prices. Nov. 12 Nov. 14 Nov. lb Nov. 16 Nov. 17 Nov. 18
PUBLISHED WEEKLY
Terms of Subscription—Payable in Advance
including Postage,—
12 Mos.
6 Mos.
Within Continental United States except Alaska
$10.00
$6.00
11.50
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Possessions and Territories
13.50
7.75
Great Britain, Continental Europe (except Spain). Asia.
Australia and Africa
15.00
8.50
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Wall Street, Friday Night, Nov. 18 1932.
Railroad and Miscellaneous Stocks.—The review of the
Stock Market is given this week on page 3475.
Following are sales at Stock Exchange this week of shares
not represented in our detailed list on the pages which follow:
STOCKS.
Week Ending Nov. 18.
Sales
for
Week.
Range for Week.
Lowest.
Par. awes.' $ per share.
Railroads—
Central RR of N J_100
100, 6234 Nov 14
60, 1034 Nov 12
Colo & Sou 1st pref-100
Erie dr Pittsburgh-20, 4834 Nov 16
Hudson & Meat pf_100
200, 35 Nov 14
100 3434 Nov 17
Ill Cent Led Lines..100
lot Rya of Cent Am—
Preferred
100
10 9% Nov 16
Minn SP & SSM pf 100
300 2 Nov 16
100
Leased Line
40 12 Nov 17
Nash Chatt & St L_100
40 16 Nov 14
Pao Coast 26 pref 100
15 4 Nov 18
Phila. Rap Trans pf..50
30 5% Nov 12
300 6 Nov 17
Rutland RR prof- 100
Indus. & Miscell.—
Art Metal Construct.10
Assoc,Dry Gds 1st pf100
Austin Nichols prior A *
Barker Bros prof...100
Brown Shoe pref.-100
Burns Bros el A
•
Class A etre
Preferred
100
•
City Stores ctfs
Colo Fuel & Iron pf 100
Comm Inv Tr war stpd
Crown Wllliamette*
1st preferred
Cushm Sons pf(7%)100
Dresser Mfg Cl B
•
Erg Pub Serf p1(6).-'
Franklin Simon pf--100
Hamilton Watch
•
Hat Corp pref A___100
Houdaille-Hershey CIA'
Internet! Combustion
Eng pref ars
*
Kelly-Springfield Tire
6% prof Ws
100
Kresge Dept Stores...'
Newport Industries---1
•
Outlet Co
Panhandle P&R pfd 100
Phoenix Hos prof._100
Pitts Term Coal pfd 100
Revere Cop.413 pfd100
Shell Transp & Tr_
Sloss-Shef S dt I pfd 100
US Gypsum pref.- _100
Univ Leaf Tob pref-100
10
Utah Copper
women Co pref....100
Webster Eisener p16100
ii
Wells Fargo Co
•No par value.
Range Since Jan. 1.
Highest.
Lowest.
$ Per share.
62% Nov 14
10% Nov 12
48% Nov 16
3534 Nov 14
3454 Nov 17
954 Nov 16
2 Nov 16
13 Nov 16
16 Nov 14
4 Nov 18
5% Nov 12
7% Nov 15
Highest.
Per share.$ Per share.
25 Jun 101
Sept
8
Maz 30
Sept
48
Sept 50 Sept
24% May 48
Jan
15% Jun 45
Aug
3%
%
6,4
7%
1
5%
3
June
May
July
May
May
Nov
May
11%
6
2034
3034
4%
19%
14%
Sept
Sept
Sept
Sept
Sept
Jan
Sept
100 4 Nov 14 4 Nov 14 4
400 27 Nov 18 2744 Nov 18 20
40 1734 Nov 14 18% Nov 14 1134
10 1034 Nov 12 10% Nov 12 10
50 105 Nov 16 106 Nov 16 100
300 134 Nov 14 1% Nov 16 1
600
g Nov 16 % Nov 17 34
127 1 Nov 18 1 Nov 18 1
200
% Nov 14
%
% Nov 14
80 20 Nov 12 20 Nov 12 20
400
34 Nov 20
g Nov 20 %
May 734
July 42
July 1834
Apr 30
Aug 11934
Apr 234
Oct 134
Nov 30
Nov
%
May 37
June 134
Feb
Sept
Sept
Jan
Jan
Feb
Jan
Jan
Oct
Sept
Sept
110
10
10
200
27
100
30
500
June
June
June
June
Oct
June
Aug
Nov
Mar
Mar
Feb
Mar
Jan
Feb
Sept
Nov
100
2234 Nov 17
7834 Nov 17
334 Nov 17
40% Nov 18
20 Nov 12
4 Nov 14
8 Nov 16
7 Nov 1
5
Nov 17
23% Nov
78% Nov
3% Nov
40% Nov
22 Nov
4 Nov
9 Nov
7% Nov
5
14 21
17 sox
17 234
15 25
16 15
14 2
16 5
15 654
Nov 17
700 5234 Nov 14 52% Nov
120 2 Nov 18 2 Nov
100 234 Nov 17 2% Nov
10 40 Nov 16 40 Nov
40 7 Nov 15 10 Nov
20z353( Nov 18 r31534 Nov
30 8 Nov 16 8 Nov
101 1254 Nov 17 12% Nov
80, 1434 Nov 14 14% Nov
soi 17 Nov 12 17 Nov
80 10034 Nov 12 101 Nov
90, 98 Nov 12 98 Nov
10 60 Nov 12 60 Nov
100, 80 Nov 18 80 Nov
10 30 Nov 16 30 Nov
100
% Nov
% Nov 17
14
18
17
le
12
18
16
17
14
12
12
12
12
18
16
17
37
90
1234
6134
723-4
12
20
734
434 Oct
16
1
134
25
334
25
534
10
8
6
8414
70
35
60
2034
%
1534 Feb
May 53%
Apr 5
June 354
Apr 46
Apr 14
May 41
Sept 1234
Julyi 25
Apr, 1634
July: 2934
June 105
Julyl 98
June; 71
June 80
Jan! 40
July 134
Oct
mar
tug
Apr
Nov
Jan
Mar
Sept
Oct
Sept
Oct
Nov
Sept
Nov
Oct
Sept
Quotations for United States Treasury Certificates of
Indebtedness, &c —Friday, Nov. 18.
Maturity.
Int.
Rate.
Sept. 15 1933....
June 151933...
Mar. 151933...
May 2 1933._
Aug. 11934...
May 2 1934...
••••••• IA 1031 __
lx%
134%
2%
2%
234%
3%
3%
Bid.
Asked.
um% zoo,,,,
100"ss
100"ss
100uss
1019a:
103
102nn
10014n
---100,,ss
101211,
103,n
102142
Maturity.
Dd.
Rate.
Bid.
Asked.
April 15 1937--Deo. 15 1932...
Aug. 11936...
Sept. 15 1937-Feb. 1 1933...
Mar. 15 1933...
3%
334%
334%
334%
334%
3%%
100"ss
10044,2
1024ss
101.11
100,482
1017n
100n„
100 281
1024a
101,"ss
10 inn
1011.31
U. S. Treasury Bills.--Friday, Nov. 18.
Rates quoted are for discount at purchase.
Nov.23 1932
Nov.30 1932
Dec.28 1932
._-• ,,, 'env
Bid.
Asked.
0.23%
0.25%
0.25%
0.254g.
0.10%
0.10%
0.10%
0.1043,
Jan. 18 1933
Jan. 25 1933
Feb. 8 1933
Feb. 15 1933
3485
Bid.
Asked.
0.25%
0.25%
0.23%
0 25°A
0.10%
0.10%
0.10%
n invz
First Liberty Loan
High 101uss 101" 101un 101"st 101"8I 101"n
334% bonds of 1932-47._ Low_ 101"ss 1011% 101",, 1012% 101"/13 101nrs
(First 354s)
Close 101"st 101"st 1010st 101"ts 101" 101"n
27
Total sales in $1,000 units__
24
56
153
6
31.
1
____
Converted 4% bonds of{Higli_
1932-47 (First
Total sales in $1,000 units_ ----n
Converted 4%% bondsilligh 102,
of 193247 (First 4,410 Low- 1021s,
Close 102,ss
Total sales in $1,000 units_ .
62
Second converted 4%% High
---bonds of 1932-47(First Low---Second 43(s)
Total sales in $1.000 units----Fourth Liberty Loan
{High 1034n
4%% bonds of 1933-38_ Low_ 1034.
ss
(Fourth 434s)
Close 103,
23
Total sales in $1,000 units-Treasury
(High 107",,
434s, 1947-52
Low- 1077n
Close 107ns
Total sales in $1.000 units—
22
08
(High 103,
48. 1944-1954
Low_ 10324n
(Close 103nn
Total sales in $1,000 units-14
(High 102
35,411, 1946-1956
Low. 102
Close 102
Total sales in $1,000 units-20
(High 100,,s
1154s, 1943-1947
Low_ 100,01
(Close 100",
Total sales in $1,000 units_-38
High 90,
ss
311, 1951-1955
Low. 96',,
(Close 96,11
Total sales in $1.000 units__
27
(High 101
13545, 1940-1943
Low_ 101
Close 101
Total sales in $1.000 units__
7
(High 100",,
344a. 1941-43
Low.. 101"s
Close 10084
Total sales in $1,000 units-1
High 9724n
3345. 1946-1949
Low_ 97ns
Close 9724s2
A7
Total sates in Ilium un re _
____
---_
---____
____
1024n 1024. 102,ss 1024. 102t.
102,n 1021n 102,st 1026n 102,n
102,1, 1024ss 102,ss 1024n 102,
st
25
38
21
57
20
---____
-___
---_
---------------------1034n
,ss
103'n 1034n
103',, 103,ss
83
105
107"st 107241
108311 107"st
107nn 107"n
58
47
103,
0n 104
103,48, 103nn
1032% 103"n
126
220
1024n 102411
1011,33 101"st
101nn 1024n
23
172
100",,100,2n
100",,100",,
100"82 100"n
46
152
96",,
96811
96,
s2
913,11
96nn
961:1
142
23
101
101%
10040n 101sat
100"ss 1012s2
31
1
1011n
101
100J',, 101',,
100"n 101%
7
5
97"n 97"n
97,0n 97"ot
97,In 972,n
A II
OR
---------103",
103"ts 103u
103usi
103,tt 103",,103n.
103"st 103"n 1039n
40
82
77
108,n 108Ist 1082n
107"st 108
107 8n
1082n 1081st 107nss
80
53
152
1044n 104412 1044,,
103",,.
104
104',,
104112 1041n 104'ss
103
142
86
102*st 102est 102"m
1027s2 102',, 102n
,0
102,n 102"rs 1021,82
66
12
2
n
100",, 100",,1002,
in 10014,
100",,o.
100"ts 1002kat 100"st
73
63
69
96"32 962,11 96"ss
96un 96,0n 96"n
96ns, 96,,n 96,432
154
658
64
101',, 101% 101%
1012n 101112 101sst
1013ss 1016st 101ssi
24
9
10
101,
n 101,
12 101'st]
101
101% 101'1
n
101% 1016n 10118,
31
11
80
97"n 981n
984n
97"st 97"st 98
97,,n 98,n
98'n
WIL
1/11
7111
Note.—The above table includes only sales of coupon
bonds. Transactions in registered bonds were:
5 let 3348
1 let 434s
294th 4348
1 Treas. 3,
4s
101"ts to 101"ss
102
to 102
1031n to 103"st
101,481 to 1012,n
4 Treas. 38
95,,ss to 95nn
1 Treas. 334e June....1002,n to 100nn
1 Treas. 334s
9724n to 97,4n
Foreign Exchange.—
To-day's (Friday's) actual rates for sterling exchange were 3.28% @3.30%
for checks and 3.2834@3.3034 for cables. Commercial on ban., sight,
3.2834©3.3034; 60 days, 3.2803.29; 90 days, 3.273403.2834; and documents for payment, 60 days, 3.2834@3.293-4. Cotton for payment,
3.29%.
To-day's (Friday's) actual rates for Paris bankers' francs were 3.91%
@3.9134 for short. Amsterdam bankers' guilders were 40.1334040.14%.
Exchange for Paris on London, 84.37; week's range, 85.03 francs high
and 83.84 francs low.
The week's range for exchange rates follows:
Sterling, Actual—
Checks.
Cables.
High for the week
3.3434
3.34%
Low for the week
3.27%
3.2734
Paris Bankers' Francs—
High for the week
3.9234
3.9234
Low for the Week
3.9134
3.9134
Germany Bankers' Marks—
High for the week
23.78
23.80
Low for the week
23.75
23.77
Amsterdam Bankers' Guilders—
High for the week
40.16
40.20
Low for the Week
40.10
40.14
The Curb Exchange.--The review of the Curb Exchange is
given this week on page 3475.
A complete record of Curb Exchange transactions for the
week will be found on page 3502.
CURRENT NOTICES.
—Edwin Nash Sanderson, member of the engineering firm of Sanderson
& Porter, 52 William Street, and President of the Federal Light & Traction
Co. of New York, died on Nov. 9 at the age of 69 years. Mr. Sanderson
was also President of the Federal Light & Traction Company's thirty-three
subsidiary operating utility companies, including electric light, gas, railroad, power, water and ice properties in the United States and Canada.
He formed the firm of Sanderson & Porter in 1896 with H. Hobart Porter,
who for many years has been President of the American Water Works &
Electric Co. Before forming this firm, Mr. Sanderson had been with the
Westinghouse Electric & Manufacturing Co. in the capacity of assistant
to the General Manager at Pittsburgh and later as Manager of the company's
Boston office.
—Announcement is made in Richmond, Va. of the formation of The
Richmond Corporation with offices at 809 East Main Street. The new firm
will conduct a general securities business, specializing in Virginia municipal
bonds. The officers, who were all formerly of Fred'k E. Nolting & Company,
are Rutherford Fleet, President; Claude R. Davenport, Vice President:
and J. Joseph May, Vice President and Treasurer.
--Teeple. Jones St Co., with offices in the Garrett Building, Baltimore,
have been admitted to membership in the Baltimore Stock Exchange. The
two partners in the firm are Gifford H. Teeple and Elisha Riggs Jones.
—Hemphill, Noyes & Co., members of the New York Stock Exchange.
announce that Harold F.Egan and Edward M.Gilmore have been appointed
joint managers of their Altoona, Pal office.
—Van Alstyne, Noel & Co., Inc., 52 Broadway, N.Y., has prepared an
analysis on Travelers Insurance Co.
—Blyth & Co., Inc.. New York, have issued a list of municipal bonds
yielding from 3.80 to 4.40 per cent.
Charles D. Hill has become associated with White, Weld & Co., in their
syndicate-trading department.
,
Report of Stock Sales-New York Stock Exchange
DAILY, WEEKLY AND YEARLY
Occupying Altogether Eight Pages-Page One
Or FOR SALES DURING THE WEEK OF STOCKS NOT RECORDED IN THIS LIST, SEE PAGE PRECEDING.
HIGH AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday
Nov. 12.
Monday
Nov. 14.
$ Per share $ per share
4512 4734 4318 4638
69 •65
68
*65
2514 2512 2312 2378
13
1378 1212 1314
1412 1578 1478 1478
24
24
23
2314
•70
75
*70
75
.10
12
*10
12
*418 478 *418 478
*42
4818 *42
4818
2212 2314 2218 2338
*61
62
62
6214
*34
1
1
1
1414 1458 1378 1438
60
60
*55
*55
25
2534 2378 25,8
*13 3
*12 3
•I38 2
*138 2
*314 312
314 338
878 878
834 834
212 212
214 214
334 4
334 378
678 714
653 7
.938 1034
978 978
7
714 *6
7
1018 1018 *834 934
812 812 *8
9
22
*1514 22
*14
*312 4
*312 4
6412 66
66
62
3014 3214 2218 3114
*334 612 *312 612
678 718
678 678
812 812
812 812
5
534
5
*5
1234 1314 12
13
*312 578 *312 578
912
814
853 *8
1812 1858 1878
18
1614
1578 1678 15
912 *8
91
*7
4
414
453 458
878 9
*712 8
*17
20
*1412 20
1558 1614 1414 1514
2412 2412 2312 24
*818 12
12
12
512 634
614 678
•4
*4
5
5
•14
88
*14
38
112 112 *112 21
718
712
678
718
1814 1814 18
18
512 57,
518 534
87, 953
814 84
•18
,
Cs
2558 2678 2412 2534
*314 334 *314
312
412 41.,
4
4
*106 111 - •106 11O4
17
1734 16
1673
*34
35
34
34
9
914
834 91
*38
84
*14
1
11
*78
118
118
108 109
109 109
*75
7934 7934 7934
1638 1714 1534 1718
*12 378
*34 278
1512 16% 1518 1578
*Pa
5 1
•178 5
1278 *534 1278
*6
1014 1112 *11 18 13
9
10
814 814
*8
*8
16
16
36
*32
3218 3238
*2312 32
*2478 321s
*2434 28
•2434 28
112
134
134
134
212 212
2
212
*6
11
*6
11
•10
24
*10
24
38
12
12
*38
31
*38
34
34
2058 2238 1934 2114
9
914
834 9
11
1112 1012 1034
•18
25
*18
25
5
5
512 6
*218 234 *218 234
*714 1334 *7.4 1334
7312 7612 7218 7514
*61
6434 *6113 6434
212
*2
214 214
*258 3
258 258
612 7
678 67*
*512 9
*512 9
*134 3
*112 3
4
*334 4
4
*16
*8518
612
*56
*17
*1078
*314
1012
59
*112
1114
*233
1711
4
C333
*312
2178
10012
7
6412
1778
11
338
1112
594
2
1158
3
178
4
4
378
*16
*9518
614
*56
*1512
1078
*3
1012
5738
*112
1138
238
158
334
*31 1
312
Tuesday
Nov. 15.
Wednesday
Nov. 16.
Thursday
Nov. 17.
Friday
Nov. 18.
$ per share
43
4514
6612
*63
*21
23
1238 1338
1434 1558
*2112 25
75
*70
10
10
*4
478
4818
*42
22
2212
62
62
78
78
1438
14
60
*55
2378 2434
*12 3
*138 2
*3
314
814
*8
218 218
334 334
614 678
934 934
678 678
$ per share
42
4412
63
63
21
21
1214 134
1438 1514
*2112 25
*70
75
12
*10
*4
478
*42
4818
21
22
62,4
62
1
*34
1358 1418
60
*55
2418 2434
*12 3
*138
134
318 318
734 818
218
2
314 312
618 612
953 9.4
6
6
812 812
9
*7
*14
22
*312 4
62
60
2758 2958
*334 612
*618 634
*712 812
*318 512
11
1178
*314 578
*712 9
*1614 1812
1458 1518
*734 10
412 458
*7
912
*17
20
1338 1338
2118 2112
*818 14
618 612
$ per share
41
4313
63
65
1934 2012
12
1234
1412 1412
*22
25
74
*70
*9
11
*4
47g
*42
4818
2034 21
6212
*62
*78
1
1338 1334
60
*59
2338 2412
*12
3
*1
134
3
3
712 8
2
2
314 312
558 6
953 914
*5,2 612
8
8
7
7
*14
22
333
334
60
60
2714 281z
4
5
*618 } 658
*714 81
*3
512
1012 11
*312 578
*7
814
*1614 18
1458
14
8
8
412 412
*7
9
*1612 20
13
1314
1918 2014
*818 14
618 614
$ per share
4158 4334
6434
*63
1938 1938
1234
12
1438 1412
*22
25
74
•70
*9
12
*4
478
4818
*42
21
2138
6214 6214
8
78
1312 1334
*59
60
2358 2438
3
*12
*138
134
278 3
*734 8
2
2
*314 312
534 618
834 978
512 512
8
8
8
*7
*14
22
334 334
6018 6018
2714 2914
4
4
618 618
*712 8
*318 512
10% 1118
*312 578
*7
814
*1614 18
1414 1514
*8
934
412 412
*8
9
*17
20
1314741414
1912 1912
*818 14
614 638
*834 934
t
8
*14
22
*312 4
62
62
2714 301
*312 612
678
*6
812
*8
*4
512
1112 1218
*312 578
8
8
*1738 19
1458 1512
*814 9
412 458
*8
9
20
*17
1414 15
2212
22
1214
10
614 658
*4
5
*14
as
*112 212
612 714
1514 16
5
514
712 814
•18 • 14
2378 2558
314 314
4
4
106 106
1512 1614
3214 3214
*814 834
*14
12
*78
118
107 107
8318
*78
1614
16
178
*12
1512
15
*178 5 ,
*534 1234
1118 1118
*814 10
16
*8
36
*33
*2478 3218
*2434 28
158
158
2
2
11
*6
*1012 24
a,
38
34
51
1912 21 18
814 812
978 1014
•18
25
5
514
*218 234
*714 1334
7034 74
*6112 6438
*2
214
234 234
612
6
*512 9
112
112
*4
434
4
4
*212 478 *212 5
*14
32
14
14
14
14
*112 212 *112 2
*112 2
612 634
638 638
638 612
1534 1578 1512 1531 1514 1558
*412 434
434 434
434 434
7'2 712
712 712
714
712
*Is
14
*18
14
*18
14
2358 2458 2234 2418 2338 2434
*312 4
*3
3
312
3
*414
312 4
412
353 378
104 104
104 104
10712 10712
1434 1614
1414 15
1414 1512
33
*31
3212 33
3212 32
712 81s
734 8
758 778
*14
12
*14
12
*14
12
*78
118 *1
118
1113 *1
106 10614 105 105
10112 10112
*7738 79
*7738 7934 *7738 7934
1412 16
1514
147a 1534 15
*12 278
*78 27s
*12 278
1538 1334 1438 14
14
1412
.178 5
*178 5
*178 5
*534
*1014
8
*8
3214
2534
*2434
158
2
*6
*1012
*38
*58
1912
778
958
•18
*518
*178
714
7034
..1 611,3
*2
13
13
814
16
3512
2534
28
158
2
11
24
12
14
2034
838
1053
25
512
234
714
73
6318
213
*534
*1014
*778
*8
*3238
*23
*2438
112
134
*6
*1012
38
*58
1858
714
914
*18
518
*178
758
6834
*6118
2
7T
1114
10
16
34
29
28
112
2
11
24
38
34
2018
738
914
25
513
212
758
7158
6312
2
*534
*10,4
812
*8
*321 1
*2414
•2438
112
134
*6
*1012
*38
*58
1858
718
813
*18
53
*178
*758
6918
6112
*2
7
1114
812
16
34
28
28
158
134
11
24
13
34
20 I
713
878
25 ,
512
234
1334
7234
6112
212
234
612
*512
*13
4
234
612
9
3
4
*258
618
.5i2
134
314
234
614
9
134
312
*212
*013
*512
*134
312
234
612
9
2
312
2178 *16
2178 •16
2178 *16
217g
10012 *851a 10012 *8918 10012 8518 8518
634
6,4
618 612
6
534 6
6412 *56
6412 *56
6413 56
56
1734 *16
1734 *1512 1713 1512 1512
1078 •1014 1012 1014 1014 10
10
3
*3
335
3
312 *3
31
II%
978 1038 1014 1012 1014 10'2
5512 5778 5412 5714 5414 5515
59
134 *112
134 *112
1.14. *113 13
1134 1114 117
1158 1158 1134 121 1
*158 3
238 •158 3
*158 3
188
113
112
134
112 158
153
338 338
312 312
378 *3318 4
*3
*338 4 I
4
4
338 338
3 ' *234 378
3
312 *234 378
nn gmll-g on thin Inv i Ex-dividend.
,
•Bld and asked Price.
Sales
Joy
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE.
PER SHARE
Range for Precious
Year 1031.
Highest
Lowest
Railroads
Par 3 per share $ per share t per share $ per share
Atch Topeka .& Santa Fe5 _ 100 1778June 28 94 Jan 14
7914 Dec 20338 Feb
Preferred _
100 35 July 0 86 Jan 18 x75 Dec 10814 Apr
Atlantic Coast Line RR. 100
934Nfay 26 44 Sept 2
Jan
25 Dec 120
334J110e 1
Baltimore & Ohio
2138 Jan 21
100
14 Dec 8778 Feb
Preferred
6 June 3 4112 Jan 14
100
25 Dec 8012 Feb
Bangor & Aroostook
012June 2 3584 Aug '211
50
18 Dec 6634 Feb
Preferred
100 50 June 1 91 Sept 13
80 Dec 11312 Mar
4 July 13 1934Sept 2
100 Boston & Maine
100
10 Dec 66 Feb
Brooklyn & Queens Tr_No par
278Ju1y 6 1014 Mar 8
1338 June
612 Oct
Preferred
No par 2314June 28 58 Mar 5
48 Dec 6434 June
1118June 8 5014 NIar 8
9,800 BklYn Maui, Transit-No par
31 18 Oct 695* Mar
1,100
56 preferred series A_No par 3112June 8 7838 Nlar 5
83 Dec 9414 Feb
12 Apr 13
300 Brunswick Ter & Ry SecNo par
2.8 Aug 11
138 Dec
912 Feb
31,700 Canadian Pacific
714May 31 2058Mar 5
25
1034 Dec 4538 Feb
Caro Clinch & Ohio atm' 100 39 July 26 70 Feb 6
Apr
72 Dec 102
934July
6
52,100 Chesapeake & Ohio
3112 Jan 14
25
2338 Dec 4612 Feb
Chic & East III Ry Co _ _ _ _ 100
12July 15
334 Aug 29
12 Dec
12 Dec
100
12May 12
6% preferred
5 Aug 25
12 Dec112 Dec
114J line 2
800 Chicago Great Western-- _100
538 Aug 29
212 Dec
778 Feb
Preferred
600
211May 25 1512 Jan 22
100
712 Dee 2712 July
I
1,800 Chic Milw St P & Pae__No par
4June
412 Aug 25
3
878 Jail
112 Dec
118May 26
3,900
Preferred
100
!I Aug 25
212 Dec 153 Feb
2 May 31
11,600 Chicago & North Western_ 100
1412 Aug 25
5 1)ec 4512 Feb
5 June 29 31 Jan 22
Preferred
800
100
1312 Dec 116 Mar
112May 25 1638 Jan 22
1.000 Chicago Rock Isl de Pacific_ 100
778 Dec 6512 Jan
400
414Nlay 26 2712 Jan 14
100
7% preferred
14 Dec 101 Mar
25
300
100
6% preferred
2 May
2412 Jan 14
Jan
1018 Dec 90
Colorado & Southern
412June 29 2912SePt 23
100
712 Dec 48
JED
278July 21
500 Consul RR of Cuba pref_100
1112 Jan 2
10 Dec 4212 Feb
2.700 Delaware & Hudson
100 32 July 8 9212Sept 3
64 Dec 15714 Feb
73,100 Delaware Lack ,4 Western_50
812June 1
4578Sept 23
1734 Dec 102
Jan
112May 23
1,700 Deny es Rio Or West pref 100
9 Jan 13
312 Dec 4534 Feb
900 Erie
2 May 31
100
11345ept 8
5 13ev 3934 Feb
First preferred
100
258May 19 1578 Aug 23
100
638 Dec 4512 Feb
Second preferred
100
2 May 25 1012 Aug 2h
100
5 Dec 4(112 Jan
9,700 Great Northern Pref __
512May 28 25 Jan 14
100
1558 13cc 6934 Feb
Gulf Mobile & Northern_100
2 May 3 10 Sept 8
311 1)ec 2714 Feb
Preferred
3 June 1 1512Sept 8
200
100
13 Dec 75 Jan
500 Hudson & Manhattan
100
8 May 31 3034 Jan 18
2614 De
441
: Feb
10,900 Illinois Central
434June 1 2478Sept 6
100
918 Dec 89 Feb
4 May 5 1411 Jan 2
30
RR Sec ctfs series A_ _ _1000
,
Jan
7 Dec 61
214June 10 1458 Mar 7
4,700 Interboro Rapid Trail v t 0_100
458 liee 34 Mar
900 Kansas City Southern
214June I
100
151 1 Sept 8
678 Dec 45 Feb
Preferred
100
5 June 9 251.4Sept '1
15 Dec 64
Feb
3,200 Lehigh Valley
5 June 8 2948e03 8
60
8 Dec 61
Jan
712May 26 3814 Sept 2
2,900 Louisville & Nashville __i00
2014 Dec 111
Feb
90 Manhattan Ry 7% guar-..100
0 Sept 17 4638 NIar 11
25 Dec 61
Feb
4 June 8 2034Mar 8
8,300 Maui,fly Co mod 5% guarAoo
678 Dea 39 Feb
100 Market St Ry prior pref_ __100
278 Oct 26
9 Jan 26
512 Dec 22 Feb
400 Minneapolis & St Lou18___ 100
Is Jan 12
58 Aug 11
18 Dec
34 Jan
7851ay 13
100 Minn St Paul & SS Marie_ 10
438Sept 7
1
Dec 1112 Feb
114May 26 13 Sept 23
4.100 Mo-Ran-Texas RR___No par
378 Dec 2634 Jan
1,200
series
1
314June
24
100
A
Preferred
Sept 23
1012 Dec 85
Jan
2,000 Missouri Pacific
10
112MaY 25 11 Jan '22
658 De( 4234 Feb
3,000
10
Cony preferred
21251aY 26 26 Jen 239
12 Dec 107
Feb
3
78f4eot,
18 Feb 9
Nat Rys of Mexico 2d pref_ 100
18 Oct
12 Jan
77,100 New York Central
834June 2 3658 Jan IT
10
2478 Dec 13214 Feb
112May 18
300 NY Chic & St Louis Co
100
934 Sept 8
212 Dec 88 Feb
1,100
2 June 2 1558 Jan 22
100
Preferred series A
5 Dec 94 Mar
50 NY ds Harlem
60 8214May 18 12712 Aug 111 x101
Dec 227 Feb
6 May 20 3158 Jan 21
9,000 N Y N H & Hartford
100
17 Dec 9478 Feb
1,200
Cony preferred
100 1178July 6 7834 Jan 14
52 Dec 11958 Feb
35*July 12 1534 Sept 8
2,800 NY Ontario & Western- .. 100
514 Oct 1378 June
N Y Railways pref.__ _No par
14 Apr 19
1 Feb 26
18 Dee
2 Feb
100 Norfolk Southern
12June 1
100
3348ept 6
814 Jan
34 Dec
1,200 Norfolk & Western
June
27 135 Feb 17 10558 Dec 217 Feb
100 57
20
Preferred
100 65 July 5 7931Nov 2
6512 Dec WI Mar
13,500 Northern Pacific
512Nfay 26 2538Sept 8
100
1412 Dec An . Jan
1 Mar 17
Pacific Coast
100
31 2Sept 0
114 June
ita'
50
29,400 Pennsylvania
ipoune I
2338 Jan 21
1614 Dec 64
Feb
Peoria St Eastern
78May 27
100
514Sept 8
112 Dee
912 Jun
Pere NI&toluene
134June 30 18 Aug 25
100
4 Dec 85 Feb
100
312june 2 26 Aug 2.5
40
Prior preferred
812 Det 9214 Feb
100
212June 1 24 Aug 25
100
Preferred
514 Dec 80
Jan
Pittsburgh & West Virginia 100
8 July 22 2112 Aug 2,-,
Dee 80 Jae
11
600 Reading
912.1une 10 521413ept 2
_50
30 Dec 97,2 Feb
100
let preferred
50 15 July 11
33 Jan 29
28 Dec 44
Jen
2d preferred
50 15 May 2 38 Sept 2
2738 De( 47
Jan
2,400 St Louls-San Francisco-AO°
58MaY 28
658 Jan 14
3 Dec 6234 Jan
1.600
let preferred
1 May 2
100
934 Jan 22
414 Dee 76
Jan
St Louis South western____ 100
3 May 21
1378Sept 8
414 Dec 3312 Jan
Preferred
100
9 Apr 15 2012 Jan 26
614 Dee 60
Feb
600 Seaboard Air Line
18 Jan '2
No par
1 Sept 2
18 Dec
138 Jan
100
14 Jan 4
200
Preferred
158 Sept 2
18 Dee
218 Jan
72,400 Southern Pacific Co
612June 1 3758 Jan 21
100
2612
Dec
10911
Feb
100
4,100 Southern Railway
212May 16
1812Sept 8
638 Dec 6578 Feb
2,400
Preferred
3 July I 2384Sept 8
100
10
Dec
83
Feb
100 15 May 12 35 Sept
Texas & Pacific
7
22 Dec 100 Jan
2,200 Third Avenue
3785Tay 28 14 Mar 8
100
512 Apr
1514 July
12, Apr 20
Twin City Rapid Transit 100
412.1une 10
2 Dec 1778 Feb
60
Preferred
7 June 16 2412 Jan 2f1
100
Ills 11ec 62 Feb
81,500 Union Pacific
100 2758July 11
9412 Feb 13
7018 Dec 2051s Feb
Preferred
100
100 40 May 31
7158 Aug 25
51
liec 87 May
%June 2
200 Wabash
100
414 Aug 29
78 Dec 26
Jan
Preferred A
1 June 1
300
100
6 Jan 28
112 Dee 51
Jan
112May 28
1,400 Western Maryland
100
11 38Sept 2
5 Dec 19% Feb
211 preferred
100
2 May 26 1114Sept 2
5 Dee 20 Feb
200 Western Pacific
100
122une 9
434 Aug 25
IN Dec 1478 Feb
Preferred
34Nlay 31
900
100
878 Aug 25
3 Dec 3158 Feb
Shares
66,800
400
2,100
20,300
3,400
500
Industrial & Miscellaneous
Abraham & Straus
No zar
*16
217a
Preferred
50
100
89518 10012
No par
614 15,700 Adams Express
Preferred
10
100
*56
6412
No par
200 Adams Mills
1638 163*
700 Address Mettler Corp_ No Da
978 978
300 Advance RuMelY
3
Na pa
3
10
1018 9,200 Affiliated products Inc_No par
55
9.100 Air Reduction Ine
57
No par
*112 134
Air Way Elea Appliance No pa
1218 1278 44,200 Alaska Juneau Gold min _ _.10
100 A P W Paper Co
*158 3
No par
112
158 5,200 Allegheny Corp
No pa
Prof A with $30 warr____100
700
314
314
Pref A with $40 warr____100
100
4
*3
*234 378
Pre! A without warr____100
300
8 s3x-rightn.
PER SHARE
Range for Year 1932
On basis of 100-share tots.
Lowest
Highest
10 June 1
68 July I
15,May 31
22 June 24
12 June I
912 JulY 2(3
114.11ine g
414May 26
3078July 1
tonne 6
734June 9
1 July 27
%NIay 31
34MaY 31
%June 3
'*June 11
2458 Aug '29
98 Mar 1
9128ept 7
73 Sept 8
3038 Mar M
14 Sept 8
478 Aurt Ii
1612 Nlar 17
631 2Se91 8
312Sept 0
1658 Jun '21
4 Mar 15
3585e111 8
gliElept 0
8 Sept 8
8 Sept 9
IS 13ec 39 Aug
96 Dec 10612 May
318 13ec 2311 Feb
5012 1)ec 92 Apt
2218 Jan 3311 Aug
! Feb
II) Oct 231
1138 Mar
2 Sept
1213 Dec 20 Nov
475* Dee 10988 Feb
114 Dec
1038 Feb
Jan 2018 June
7
9 Aug
234 Dec
118 Dec 1284 Feb
2 Dee Ws Feb
Feb
134 Dee 511
134 Dec 5512 Feb
,I
New York Stock Record-Continued-Page 2
3487
:dr FOR SALES DURING THE WEEK OF STOCKS NOT RECORDED IN THIS LIST, SEE SECOND
PAGE PRECEDING.
111011 AND LOW SALE PRICES-PER SHARE, NOT PER CENT.
Saturday
Nov. 12.
Monday
Nov. 14.
Tuesday
Nov. 15.
Wednesday
Nov. 16.
Thursday
Nov. 17.
Friday
Nov. 18.
Sales
for
the
Week.
STOCKS
NEW YORK STOCK
EXCHANGE.
PER SHARE
Range for Year 1932
On basis of 100-share lots.
PER SHARE
Range for Precious
Year 1931.
Lowest
Highest
Lowest
Highest
$ Per share $ per share $ per share $ per share $ Per share
per share Shares Indus. & Miscell. (Con.) Par $ Per share $ Per share $ per share $ per share
13
*11
13
*11
*11
*11
13
13
10
11
Allegheny
Steel
*912. 10
Co_ __ No par
50
Slay 27 15 Sept 8
10 Dec 4614 pet,
8212 7834 81
80
7712 80% 77
7914 761
/
4 77,2 77
7934 45,600 Allied Chemical & Dye.No par 4212June 27 8814Sept 8
64 Dec 182% Feb
11878 119,4 *118 119
11834 11834 *11834 11912 *11834 11912 11812 11834
Preferred
500
100 9612 Apr 14 11914 Nov 12 100 Dec 126 Apr
9,8 938 *812 834
934
8% 812 *714 8%
8/
1
4 812 2,800 Allis-Chalmers Mfg__ _.No par
4 June 1
1538Sept 8
1012 Dec 4254 Feb
714
714 *714 10
*714 10
*8
10
712 712
*714 9
200 Alpha Portland Cement No par
412July 7 10 Jan 11
7% Dec 1878 Feb
•1
114 *1
114 *1
114 *I
114
1
I
1
1
14 Apr 11
200 Amalgam Leather Co_ No par
218 Sept 8
12 Dec
212 Mar
*6
814 •6
814 *6
814 *6
814 *6
814 *6
7% preferred
814
5 Oct 21
100
10 Mar 4
6
Oct 20 Jan
/
4 *20
2078 211
2012 2012 2012 *1934 20,4 *1934 20
20
Amerada
20
1,500
Corp
par
Jan
No
12
25
223
4Sept
8
1114 Dec 23 Mar
.914 1012 *934 1012 *934 1012 *934 1012
912 934 *814 10
300 Amer Agri(' Chem (Del) No par
312June 2 1612Sept 3
518 Oct 2934 Feb
1238 1238 1214 1212 1218 1238 12
1334 1378 1312 14
1214 1,900 American Bank Note
5 May 31
2212Sept 8
10
1214 Dec 62% Feb
*4014 4178 *4014 4178 *4014 4178 *4014 4178 40
*4014 42
40,4
Preferred
50
50 28 June 21
47 Feb 15
36 Dec 6614 Feb
2
2
2
2
*112 2
*112 3
*1,2 178 *112 1%
200 American Beet Sugar__No par
278 Aug 25
I, Dec
14 Apr 29
4% Jan
*5
6
612 *5
6
6
*5
6
*5
6
5
5
110
7% preferred
1 Apr 29
100
934 Aug 25
1,2 Dec 1778 Jan
*1014 11
*1012 12
*10
13
*1034 12 .11
12
*11
12
Am Brake Shoe & Fdy_No Par
612June 2 17/
1
4Sept 8
1312
3
,
, Feb
Dec
72
72
72
72
*71
72
72
*71
*71
72
•71
72
Preferred
20
100 40 July 11 90 Feb 18
71 Dec 12438 Mar
57% 5478 5712 5334 56,4 5314 55/
56
1
4 53
54% 53/
1
4 5518 109,200 American Can
25 2958June 27 73783.1ar 8
5818 Dec 12934 Mar
120 120 *118 125 •118 127 *118 125
120 120
119 119
Preferred
400
100 9312June 2 129 Mar 14 115 Dec 15212 Apr
812 918
858 858
*9
9%
8% 812 *8
814
814 814
800 American Car & Fdy---No Par
31
/
4June 2 17 Sept 6
412 Dec 38% Feb
*2514 2714 2534 2534 *22
2714 *20
2534 *20
26
*2118 26
100
Preferred
100 16 June 30 50 Aug 29
2038 Dec 86 Mar
*312 5
312 312 *312 5
*312 5
*312 5
*312 5
100 America, Chain
178 Apr 22
aor
No 1p0
714Sept 6
*912 13
5 Dec 4344 Feb
.914 13
*834 17
*91
/
4 13
*812 13
*914 13
7% preferred
7 June 22 26 Jan 28
28 Dec 88
Jan
37
*36
37
*36
37
*3612 37
37
*3612 36% *3612 3712
200 American Chicle
No par 18 June 1 3738 Slar 8
3014 Dec 48% Slar
5
512 *412 6
*5
6
*5
6
*412 6
*412 6
200 Amer Colortype Co
2 July 13
No Par
814Sept 24
5
Oct 2114 Feb
2234 23,4 2212 2212 2112 2214 21
2112 2012 21
2138 2238 3,700 Am Comm 1 Alcohol Corp_ _20 11 Slay 26 27 Sept 29
*178 214 *138 214 *158 2,4 •152 212 .11
2
2
/
4 21
/
4
400 Amer Encaustic Tiling _No par
1 May 26
5 Jan 9
238 Dec 16 Mar
•912 1034
9,2 912 *914 10
*858 912 *812 912 *8/
1
4 978
200 Amer European Sec's_No par
234 Apr 11
1534 Sept 8
758 Dec 3318 Feb
858 938
9% 9%
712 8
7/
1
4 838
7% 8
73
4
8
36,000
Amer & For'n Power__ No par
2 Slay 31
15 Sept 6
618 Dec 51% Feb
1634 *12
17,4 •12
*12
1612 *12% 1914 *12
15/
141
1
4 *12
/
4
Preferred
5 Slay 31
No par
20 Dec 100 Mar
3812 Jan 21
11
11
12
1012 10/
12
1
4 *10
1058 10
10
*934 10
2d preferred
700
No par
234May 26 21 14 Aug 29
10 Dec 7912 Feb
*12
16
*1312 1512 *13
15
11
11
*1114 15
111
/
4 1138
400
$6 preferred
No pilot*
334June 1 33 Jan 18
18 Dec 90 Feb
414 4,4 *4,4 5
*4
5
*414 5
*414 5
*4
414
100 Am Hawaiian S S Co
Slay
3
27
4 Dec 1033 Jan
30
Aug
612
*33
4
*4
4
5
*334 512 *318 412 •334 412 *314 412
Amer Hide & Leather__No par
I May 31
6%Sept 8
1 Sept
8 Mar
*13
15
16
15
*1312 16
•13
16
*1412 16
15
15
200
Preferred
478Slay 3 27 Sept 7
100
7,2 Dec 30 Am
39% z39
39
39,4 3818 3834 3812 3812 38
3812 3714 381
/
4 6,300 Amer Home Products__No par 25 June 1 5138 Mar 9
37
714
Oct 64 Mar
714 *7,8 8
712 7/
734 734
1
4
718
718 *718 8
1,200
American
612
par
No
Ice
Oct 25 2158 Star 8
1012 Oct 31% Feb
41
41
*38
*38
3934 3934 *38
41
41
*38
*38
41
100
6% non-cum prat
37 Oct 24 68 Mar 8
43 Dec 77% Jan
812 8%
8
838
712 7%
8
734 818
77
8
8,4 14,200 Amer Internet Corp
No par
212June 2 12 Sept 8
5 Dec 26 Feb
*14
*14
*14
*14
ag
12
38
*14
28
*14
3
8
Am L France & FoamiteNo par
14 Jan 6
34 Aug 30
*2
112 Jan
14 Dec
*2
3
3
*2
3
*2
3
*2
3
*2
3
Preferred
414 Aug 30
1 July 20
100
*834 9
11/4 Dec 15 July
812 834 .8
834 *8
834 *734 8,4
73
4
73
4
400
American
Locomotive
3%July
_No
par
1
15% Aug 29
5 Dec 3934 Feb
*27
27
27
2858 *27
2858 *2612.2914 2734 2734 *26
2918
200
Preferred
100 19 July 5 49 Sept 6
2912 Dec 84% Mar
14% 14% 1378 145,8 1334 1334 13
1334 12% 1234 124 1234 2,500 Amer Mach & Fdry Co_No par
712June 27 2214 Jan 14
16
Oct 43% Me r
*2
278 •2
2% *2
278 *2
234 *112 2
*112 2
Amer
Mach
SletalsNo
334
1
&
June
par
9
Mar
9
•514 5%
1% Oct
7 Mar
51
/
4 5,4
5
5
5% 518
5%
514 512
518 1,500 Amer Metal Co Ltd _No par
112June 1
914 Aug 30
4%
Dec
23% Feb
2112 2212 2112 2112 211
22
22
/
4 211
/
4 2112 22
21
21
430
6% cony preferred
612June 2 32 Aug 30
100
14 Dec 8912 Feb
23
24
*23
23
22
23
*23
24
24
*23
23
24
Amer
60
News
Inc__
Co
No par 14 July 21 33 Jan 30
25 Dec 5714 Feb
10% 10%
9,2 1014
812 9/
1
4
858 9
812 8%
84 9 22,200 Am Power & Light_ _ _No par
3 June 2 1714Sept 8
1138 Dec 6478 Feb
3512 3612 3512 35,2 29
33
29
30
2878 3012 *2812 35
2,100
Preferred
15141une 30 58 Jan 14
No Par
4412 Dec 102 Mar
28% 28% .2712 28
25
2718 2412 25
2418 2412 *24% 27
1,400
par 10 July 6 4934 Jan 14
$5 Preferred
8% 834
7/
1
4 812
7/
1
4 8,4
73
712 7/
712 734 26.200 Am Rad & Stand San'y_blo
1
4
78
121 i Sept 9
318June 1
N par
1112 12% 11
5 Dec 2112 Mar
1178 1058 1138 101
/
4 1038 10
1014 1018 1034 14,600 American Rolling Mill
73 Dec 3738 Feb
3 May 25 1812Sept 6
25
2112 21
21 12 *21
*20
21
2012 2038 2038 *2014 21
20
.500 American Safety Razor_No par 13%June 27 x2914 Mar 7
1914
Dec 66 Feb
*112 2
*112 2
112 112 .11. 2
*112 134 *1 12 14
100
Seating
Amer
mune
v
t
No
c
par
334Sept
12
20
158 Dec
9 Feb
14
*14
*14
12
*1:j
12
*14
12
14
12
*14
12
100 Amer Ship & Comm__ _No par
18 Apr 22
78 Sept 2
18
Dec
•13
153 Feb
13,4 13
13
*13
13,4 13
13
13
13
*1318 1314
120 Amer Shipbuilding Co_No par 10 June 22 2518 Jan 14
20
Oct 42
Jan
17% 16
1712 16
17
1612 1538 16
15
154
1558
518
1614
Amer
9,600
Smelting
May
&
2714Sept
31
Rem_No par
1712 Dec 5812 Feb
4934 4934 *48
50
4912 4912 *48
60
4814 50
4812 4812
Preferred
600
100 22 June 21 85 Jan 29
75 Dec 13812 Mar
*3512 3512 *3512 39
*3512 40
40
35,2 35,2 *35
*35
40
100
2d preferred 6% cum_ 100 15 July 5 55 Feb 19
45 Dec 1023 Star
32
.315s 32
32
31
3112 *31
3112 31
31
31
31
800 American Snuff
3612 Aug 29
25 2134June 1
28
Oct 4214 Mar
*103 105 *101 105 *103 105 •103 105 *101
102 *101 102
Preferred
7 Dec 11078 July
100 90 Jan 11 106 Sept 13
97
814 814
7/
1
4 731
7
75
7
7,2
7
*7
7
718 1,400 Amer Steel Foundrles__No par
3 May 31
1518Eept 6
5 Dec 3114 Feb
*65
*115
75
75
67
6718 .67
73
*67
72
67
67
30
Preferred
100 34 July 6 80 Feb 18
68 Dec 113 Feb
30
33,4 30
3012 30% 30,4 31
3112 30
3134 3034 3034 6,200 American Stores
No par 20 May 31 3634 Mar 3
33 Dec 4814 Mar
2478 26
26
26
*25
2534 25
25,4 2518 2514 *2514 25/
1
4 1,300 1 Amer Sugar Refining
100 13 June 2 3914 Jan 13
3412 Oct 60 Mar
.80
90
*8012 91
*8012 87 .8012 8318 *8012 8112 *8012 8318
I Preferred
100 45 Slay 31 90 Aug 27
8412 Dec 10812 Mar
*6
7,2 *512 7,2 *512 712 *$12 712 *512 712 *512
712
Am Sumatra Tobacco_ _No par
23 Apr 29 1014 Aug25
312 Dec 11 18 Feb
111 112% 10938 11214 10814 11218 1063
4 11014 10634 10812 10718 10938 161,400 Amer Telep & Teleg
100 6934July 11 13738 Feb 10 11218 Dec 20134 Feb
6734 68
6612 68
*66
68
64
65
63
6312 6358 64
3,700 American Tobacco
25 4012June 1 8634 Mar 9
6012 Dec 12834 Apr
71
72
6818 7114 6712 69,4 6612
6834 6558 6714 66
6778 33,400
Common class B
25 44 June 1 8934 Mar 8
64 Dec 1323 Apr
*112 118
11214 113 *112 116 *11214 11518
113 113
113 113
600
Preferred
100 9514June 2 118% Oct 14
96 Dec 132 May
*7
15
•7
15
*7
14
*7
14
14
*7
*7
14
American
Founders_
Type
4
100
June
3
25
Jan
25
19 Dec 105
•1612 20
@FedFRASER