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(jT o m m m ta l & iftn a n c ta l ( j T h r o n i t l t
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TRUST
COMPANY

NEW YORK, NOVEMBER 4 ,1939 ^ ^ pr f e » .7 ’
s

George V. McLaughlin
President
BROOKLYN
NEW YORK
Member Federal Deposit Insurance
Corporation

THE CHASE
NATIONAL BANK

BANK

Chartered 1866

O F THE CITY 0 F NEW YORK

OF

Maintaining effective cor­
respondent bank service
is a traditional policy of
the Chase National Bank.

NEW
Y OR K

Broaden your customer
service with Chase cor­
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Member Federal Dtpoat Insurance

Hall gar ten & Co
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Underwriter

NEW YORK
London

Chicago

FUNDAMENTAL
INVESTORS
INC.

NO. 3880.

latritsi-ei

Distributor
D istrib u to r

The
T he

Underwriters of capital issues
and dealers, in United States
U tility, Railroad, Industrial
and other investment securities.

S6&T

FIR ST BO STO N

Harriman Ripley &Co.
Incorporated

CORPORATION

NEW YORK

BOSTON

CHICAGO

: 63 Wadi Street, jfew York

THrLAOELpHIA
SAN FRANCISCO
F H rU M L rH U
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a n d o t h e r R R m cirA L c it ie s
AND OTHER RRfKCirAL CITIES

B oston

pjr*tasit*HfiA

C hicago

Representatives in other leading Cities

Prospectus on request
from authorized dealers in all prin­
cipal cities or Fundamental Group
Corporation, Jersey City, N . J.

n w| i i i >h i

N e w Y o r k T k u sT
HOMER & CO., In c

Com m onw ealth of

Pennsylvania

IO O BROADW AY

Bonds

MADISON AVENUE
AND 40TH STREET

BEAR, STEARNS a CO.

ONE EAST
57TH STREET

O N E W A L L STREET

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N EW YO R K
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Paris

Amsterdam

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European

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8 KINO WILLIAM ST.
LONDON, E.C 4

22$ TOV%THW&f#P*

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A n Outward Sign
of Inner Value
million
T ODAYona productseyes will see this trade­
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made of steel.

In household appliance shops, hardware
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Even when steel is covered with porcelain
enamel, or hidden from sight as in the springs of

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turer adds the U*S*S mark to his own to tell
you the article contains the finest steel.
Nor is this trade-mark confined to such fab­
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NATIONAL TUBE COMPANY • SCULLY STEEL PRODUCTS COMPANY
TENNESSEE COAL, IRON & RAILROAD COMPANY



Volume 149




ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD
—
—

The oldest house In America
specializing in
Government Securities

C.F. C hilds
and
Company

New Y o r k
Kan sas C i t y

Bo s to n

S a n F ra nc isc o
S t. Lo ui s

Cl ev el an d
Pittsburgh

Chicago
Cincin nati

2733

Centennial Articles
The Second Century____________________________________________________
Birth and Development of an Idea_____________________________________
In Step with Progress___________________________________________________
The M en Who Made the Chronicle____________________________________
A Century of Achievement_____________________________________________
One Hundred Years and Wall Street___________________________________
Banking 1839-1939_______
Index to Advertisers____________________________________________________

page
2737
2738
2740
2743
2746
2790
2810
3012

Editorials
The Financial Situation_____________________
American Shipping and the Neutrality Bill_____________________________
California’s Danger_____ _______

2832
2873
2876

Comment and Review
Week on the European Stock Exchanges_______________________________
Foreign Political and Economic Situation________________________________
Foreign Exchange Rates and Comment____ '____________________ 2867 &
Course of the Bond M arket____________________________________________
Indications of Business A ctivity________________________________________
Week on the New York Stock Exchange_______________________________
Week on the New York Curb Exchange_______________________________

2848
2849
2919
2878
2879
2840
2914

News
Current Events and Discussions________________________________________
Bank and Trust Company Items_______________________________________
General Corporation and Investment News_____________________________
Dry Goods Trade_______________________________________________________
State and Municipal Department________________________________________

2894
2914
2959
3002
3003

Stocks and Bonds
Foreign Stock Exchange Quotations____________________________
2923 &
Bonds Called and Sinking Fund Notices_______________________________
Dividends Declared_____________________________________________________
Auction Sales_____________________________________________________________
New York Stock Exchange— Stock Quotations__________________________
New York Stock Exchange— Bond Quotations____ _____________ 2926 &
New York Curb Exchange— Stock Quotations___________________________
New York Curb Exchange— Bond Quotations__________________________
Other Exchanges— Stock and Bond Quotations___: _____________________
Canadian Markets— Stock and Bond Quotations_________________________
Over-the-Counter Securities— Stock and Bond Quotations______________

2925
2919
2920
2919
2926
2936
2942
2946
2948
2952
2955

Reports
Foreign Bank Statements________________________________________________
2863
Course of Bank Clearings________________________________________________ 2915
Federal Reserve Bank Statements______________________________ 2894 & 2923
General Corporation and Investment News______________________________ 2959

Commodities

Published Every Saturday Morning by the W i l l i a m B. D a n a C o m p a n y , 25 Spruce Street, New York C ity, N . Y .
Herbert D . Seibert, Chairman o f the Board and Editor; William Dana Seibert, President and Treasurer; William D . Biggs, Business Manager.
Other offices: Chicago— In charge o f Fred H. Gray, Western Representative, 208 South La SaUe Street (Telephone State 0613). London— Edwards
& Smith, 1 Drapers’ Gardens, London. E.C . Copyright 1939 by William B. Dana Company. Entered as second-class matter June 23, 1879, at
the post office at New York, N . Y ., under the Act o f March 3, 1879. Subscriptions in United States and Possessions, $18.00 per year, $10.00 for
6 months; in Dominion o f Canada, $19.50 per year, $10.75 for 6 months. South and Central America, Spain, Mexico and Cuba, $21.50 per year,
$11.75 for 6 months; Great Britain, Continental Europe (except Spain), Asia, Australia and Africa, $23.00 per year, $12.50 for 6 months. Transient
display advertising matter, 45 cents per agate line. Contract and card rates on request. NOTE: On account o f the fluctuations in the rates of
exchange, remittances for foreign subscriptions and advertisements must be made in New York funds.




Volume 149




ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD
—

—

MORGAN STANLEY &
Incorporated

TWO WALL STREET
NEW YORK

.

2735

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939

2736

—

—

J. P. MORGAN & CO.




WALL STREET, CORNER OF BROAD
NEW YORK

DREXEL & CO., PHILADELPHIA
FIFTEENTH AND WALNUT STREETS

MORGAN GRENFELL & CO. LIMITED,
LONDON
23, GREAT WINCHESTER STREET

MORGAN & C ie, PARIS
14, PLACE VENDOME

THE SECOND CENTURY
O A PUBLICATION—or perhaps we
may be excused if we say an insti­
tu tio n —as to a sensible individual,
age brings not vanity bu t humility and a
deep feeling of responsibility.
One hundred years ago the founder of
the “ M erchants’ Magazine” had his ideals
to guide him and his ambition to stimulate
him. He and his successors through the en­
suing decades w rought mightily and wisely.
Today the publishers and editors o f the
“ Commercial and Financial C hronicle” have
illustrious examples to follow , but by the
same token they have a great tradition to
maintain and a heavy responsibility to
meet.
T h roughout their existence both the
“ Merchants’ Magazine” and the“ Commercial
and Financial C hronicle” have kept two
main objectives clearly in view —to keep the
public as fully informed on all subjects re­
lating to industry, agriculture, trade and
finance as circumstances permitted, and
so far as human frailty allowed to stimulate
and to guide constructively and wisely the
course of human th ou gh t on econom ic and
related problems o f the times.
At no time during the century have there
been w anting critics of the press ready to
make sweeping charges of self-seeking.
Never have they been more vocal or more
highly placed than at present. It is of
course a fact that a periodical publication,
like any other business enterprise, must
make its living, and this simple but in ­
exorable fact inevitably and more fre­
quently than we could wish limits the
am ount o f factual data w hich may be
printed and in consequence the extent of
the informational service that may be ren­
dered, but at no time have the editors or
publishers of the “ M erchants’ Magazine”
or of the “ Commercial and Financial C hron­
icle felt that it need, or should be per­
mitted, in any manner to mar the candor
o f their editorial utterances or warp or
even tinge their own thinking.
The “ M erchants’ Magazine” was not de­
signed to be what has o f late years become
known as a “ popular periodical,” but was
developed to be o f service to the man of
affairs everywhere and to all serious stu­

T




dents of business in all m anifold ramifica­
tions who felt the desire to hold a worthy
place in the com m unity as a leader of
thought and action. The “ Commercial and
Financial C hronicle” was founded to carry
forward the work o f the “ M erchants’ Maga­
zine” more effectively.
One result has been that no need has
arisen to over-simplify, to abbreviate in ­
ordinately, to give a dramatic appearance
to that w hich is by nature hum-drum, to
cater to the passing whims of the multitude,
or to discuss intricate questions in terms of
meaningless catch-phrases. The audience
has always been, in the best sense o f the
term, a highly selected one. It has accord­
ingly been necessary only to speak as one
friend to another, or if you will, as one
director to another—but always making a
sincere effort to give the reader whatever
advantage there is in not being too close
to trees to see the forest.
The “ C hronicle” now enters the second
century, first o f all, w ith determination to
continue and to enlarge and improve wher­
ever and whenever possible the service that
it has rendered in the past, but also w ith
more optimism concerning the future o f the
United States and its business affairs, and
for that matter the future o f world affairs,
perhaps than the outward appearance of
things in this dark year 1939 may to some
seem to warrant.
It and its predecessor during the past
one hundred years have passed through
many a year when it was difficu lt to visual­
ize a return to the older rate of progress or
a continuance o f the march toward the
more abundant and better life, but in each
case a way was fou n d to shake o ff the
shackles that wars, pestilences, and human
blunders had forged about the wrists and
ankles o f enterprise. So it will be again.
The “ C hronicle” will, to the limit o f the
powers of its editors and publishers, co n ­
tinue to point the way, as it sees it, to a
realization o f opportunities and to a re­
sumption o f real progress, all the while
recording faithfully and fully as possible all
things that take place from week to week
so far as they are o f interest or importance
to business.

2738

ONE HUNDRED
—The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939
—

Birth and Development of an Idea
When any periodical publication reaches and
passes its hundredth year of continuous issue, thus
demonstrating beyond question the wisdom of the
founder in undertaking it, its readers and friends
may well find it of interest to know precisely how
and under what circumstances the idea was origi­
nally conceived and the purposes which the publica­
tion was intended to serve.
In the present instance— “ Hunt’s Merchants’
Magazine,” which after having served its readers
under this title from July, 1839, through December,
1870, was merged with the “ Commercial & Financial
Chronicle,” which meanwhile had been established
by the publisher of “ Hunt’s”—the founder has fortunitely told the story for us in a letter from his
pen some years after the appearance of the first
issue.
From the biography of Freeman Hunt, appearing
in Volume III of the “ Memorial Biographies of the
New England Historic Genealogical Society,” we
take the following extract verbatim from the letter
in question:
“ It [‘Hunt’s Merchants’ Magazine’] was a long
time the subject of much thought and deliberation
before any active steps were taken towards carrying
it out. In casting the eye around, in the difficult
search after some useful but unoccupied corner in
the wide field of literature, it seemed to the editor
as if every point was already occupied, every branch
represented, except one—and that the very im­
portant one of commerce and the mercantile inter­
est. On the one hand, the professions—the divine,




the lawyer, and the physician— the farmer also, and
the mechanic, had each one or more organs and ex­
ponents in the periodical press. Even the railroad
interest, new as it then was, had found a voice
through the press; while commerce, more or less
connected with all other pursuits, was not repre­
sented. While the business concerns of commerce
filled the huge columns of the daily press with ad­
vertisements and with shipping intelligence and
with matters relating to everyday details of mer­
chandise on the one hand, there was not a single
magazine, of high or low pretensions, either in
America or, to the best of our knowledge, in Europe,
to represent and to advocate the claims of com­
merce. There were one or two dictionaries of com­
merce, and a few works intended for practical pur­
poses; but a literature of commerce did not exist
even in name. The idea and the thing were yet to
be developed. In 1839 the “ Merchants’ Magazine
and Commercial Review” was established without,
we confess, so clear a conception as after experience
has furnished of the full import of the term com­
merce, in its broadest, largest, and truest sense or
signification. Every branch of industry, almost
every pursuit, may be said to come within its range.
The interests of agriculture and manufactures,
which produce, are identified with the interests of
commerce, which distributes. The great topics of
banking and finance, of railroad and canal com­
munication, of mining, and of navigation by steam
and sail, are all involved in the one great topic of
(<
Continued on page 2826 )

ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD

Volume 149

—

—

SPECIALISTS IN

UNITED STATES
GOVERNMENT SECURITIES

GUARANTEED ISSUES
OTHER AGENCY ISSUES
TERRITORIAL AND
MU NI C I P A L B O N D S

C. J. DEVINE &CO.
IN C.

48 W A LL STREET, NEW Y O R K

HAnover 2-2727
CHICAGO* BOSTON* PHILADELPHIA* CINCINNATI* ST. LOUIS* SAN FRANCISCO




D
irect W
ires to a O
ll ffices

2739

IN STEP WITH PROGRESS
As is the case of “ Hunt’s Merchants’ Magazine,”
we are able to present an intimate account of the
origin of the idea which was to grow into the “ Com­
mercial & Financial Chronicle” of today with its
numerous supplementary publications, this time
not, it is true, from the pen of the founder himself,
but in the words of Jacob Seibert, Jr. whose con­
nection with the Chronicle began but slightly more
than five years from its birth and who without ques­
tion was more intimately acquainted through a
longer span of years both with the Chronicle and
its founder than any other man living or dead.
Upon the occasion of the Chronicle’s semi-centen­
nial in June 1915 Mr. Seibert in one of his very rare
signed articles wrote:
“ The first number of the ‘Chronicle’ was issued
on July 1, 1865. It owed its inception to the reali­
zation on the part of the founder of the journal, the
late William B. Dana, that with the closing of the
Civil War, which had occurred the previous April,
the country was about to enter not only upon a long
term of peace, but an unexampled era of develop­
ment and prosperity. . . .
“ Possessing undeveloped natural resources of vast
extent, and with an energetic population, the mar­
velous growth here recorded was inevitable when the
issue of the Civil War had made it plain that the
danger of a divided country had been surmounted.
The only thing that could interfere with the coun­
try’s progress was erroneous economic and financial
policies. The founder of the paper foresaw this—
foresaw what a marvelous industrial era lay ahead
and also recognized that the perils attending the
promulgation of false economic doctrines, which
had found a fertile field in the financing entailed
by the war, must be guarded against if the United
States would attain the full measure of the growth
which its boundless possibilities ensured. He there­
fore resolved to establish a well equipped journal—
a great organ of public opinion—designed to foster
the economic and material interests of the country
and bent upon combatting false doctrines and dog­
mas, a paper whose purpose it would be to inculcate

correct principles, champion high national ideals
and encourage unquestioned standards of business
morality.
“ It was not, however, the purpose to provide
merely a vehicle for editorial discussions and the
expression of correct views for the enlightenment
and guidance of the mercantile and financial world.
Mr. Dana had it in mind also to create a newspaper
which would supply a narrative of all the events,
the facts and the information having a bearing upon
the industrial and financial situation of the coun­
try. The editorial announcement in the first num­
ber of the paper stated this purpose very plainly,
saying: ‘Nor will it stop with the advocacy of cor­
rect principles, but will be in every essential sense
a newspaper. All that the economist, the merchant,
the banker, the manufacturer, the agriculturist, the
shipper, the insurer and the speculator, may need to
know in the course of his daily pursuits, will be
found duly chronicled in its columns.’ ”
In a previous issue (Aug. 28, 1909) the Chronicle,
in making announcement of Mr. Dana’s 80th birth­
day, had said:
“ The country was then (in 1865) entering upon
a wonderful period of rapidity in business methods.
A monthly magazine (such as the ‘Merchants’ Maga­
zine’ of which Mr. Dana was then the publisher and
editor), however great a storehouse of valuable
knowledge it might be, could not through its edi­
torial department wield far-reaching influence in
the rush of the business world.
“ This fact, speedily realized by Mr. Dana, caused
him to project a new publication which should re­
tain all the best features of the old one and add the
necessary vitality to make the paper a living force.
During the whole period of the Civil War this plan
was ripening in his mind and it bore fruit in July
1865, when the first number of the ‘Commercial and
Financial Chronicle’ appeared.
“ In developing this new scheme, Mr. Dana took as
his model, for form, the London ‘Economist’, bear­
ing constantly in mind the need of giving to his
periodical a very practical side, an everyday appli­
cation, suited to a conservative high-class clientele,
and able to maintain a foremost place in the rapidly
moving march of events. It is worthy of note that
the first issue of the ‘Chronicle’ contained in em­
bryo form a suggestion of every one of the subse­
quent developments which have from time to time
been made in the form of additional supplements
or sections.
“When the first number of the paper appeared, in
July 1865, the title page bore testimony to the broad
field it meant to occupy. Besides the name ‘The
Commercial and Financial Chronicle,’ it had the
following subtitles: Bankers’ Gazette, Commercial
Times, Railway Monitor and Insurance Journal; a
Weekly Newspaper representing the Industrial and
Commercial Interests of the United States. Its
chief aim as stated in the first number was the ad­
vocacy of correct principles, but it also aimed in
Thomas A. Edison in his Menlo Park Laboratory,
every essential sense to be a newspaper.”
Inventing the Incandescent Lamp




Volume 149




ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD
—

—

2741

EDITORS AND PUBLISHERS

DURING A CENTURY

PIw

'

gJME1jl
A\1 %'
«
>

M
Krf8

>- • * - -i

FREEMAN HUNT
Publisher and Editor

1839-1858

THOMAS P. KETTELL ,,,,,
Editor

1838-1891

ISAAC SMITH HOMANS
Co-Editor

1861-1862

JACOB SEIBERT, JR.
C h ief Associate Editor
P ublisher and Editor

1H80-1910
1 91 0 -1 9 3 1

WILLIAM DANA SEIBERT
President and Treasurer

m

m

m




1931 . . .

HERBERT D. SEIBERT

h X r

^ : p

Chairman and Editor

1 9 3 4 .. .

ft 1

The Men Who Made the Chronicle
FREEMAN HUNT
The best biography of Freeman Hunt is the file
of “ Hunt’s Merchants’ Magazine” , which is also his
monument, more durable than New England gran­
ite, marking not his entry into and his departure
from his life, but—far more important—his passage
through it.
Save to the professional genealogist or biogra­
pher, or perhaps to the historian of American jour­
nalism, the details of Mr. Hunt’s life prior to his
founding of “ Merchants’ Magazine” , or thereafter
except as they are reflected in the pages of his mas­
terpiece, are of secondary interest. Born in Quincy,
Mass., on March 21, 1804, descended from a long
line of hardy New Englanders, he was left father­
less at an early age, and thus without opportunity
to obtain an extended formal education, although
in later years both Harvard and Union Colleges

conferred degrees upon him. At the age of 12 he
journeyed to Boston and began a career among
various publications of that city, several of which
he, either alone or in partnership with John Put­
nam, became publisher. In 1831 he moved to New
York City where, after further publishing ventures
both in New York City and Boston, he founded his
“Merchants’ Magazine” in July, 1839.
With the beginning of this magazine he really
began his life’s work. Henceforth nothing else dis­
tracted his attention until the day, almost the hour,
of his death in Brooklyn on March 2, 1858. “ The
interest and untiring industry which led him to
succeed in the ‘Merchants’ Magazine’, his own crea­
tion, never forsook him,” says his biographer. “For
months preceding his death, while lying upon his
(C o n tin u e d o n p a g e

2802)

WILLIAM B. DANA
William B. Dana, for about a decade publisher
and editor of “ Hunt’s Merchants’ Magazine” and
founder in 1865 of the “ Commercial and Financial
Chronicle,” was a modest man. Had the matter
been left to his initiative about all that would be
available about him and his life would be found in
the brief record his Yale Class Historian (Class
of 1851) was able after much effort to pry from
him in 1893. This notation in Mr. Dana’s own
hand-writing, the historian reports, reads as fol­
lows :
“ Sickness has prevented my writing what you
wanted me to write. As the slip you send me is so
inaccurate, I send you the enclosed:
“ Born in Utica in 1829.
After graduation,
studied law. Was admitted to the bar in 1853.
Practised law in Utica until 1861. Moved to New

Y'ork in 1861, and became editor and proprietor of
‘Hunt’s Merchants’ Magazine’ same year. In July,
1865, issued first number of the weekly newspaper,
‘The Commercial & Financial Chronicle.’ Have
continued publishing and editing that paper since
that date. In connection with it, two supplements
are issued: one, the ‘Investors’ Supplement,’ 160
pages, containing information about railroads and
railroad securities, and the ‘State and City Supple­
ment,’ 184 pages, containing information about
States and cities and their securities.”
But achievements such as those of Mr. Dana can­
not for long be hid under a bushel. The class his­
torian was not satisfied. He investigated for him­
self, with the result that he recorded the following
notation on his own authority:
( C o n tin u e d ,

on

page

2806)

JACOB SEIBERT, Jr.
The ambitious plans of William B. Dana probably
never could have been brought to full fruition, and
certainly not carried forward and further developed
after the years had taken their toll from Mr. Dana
had Providence not sent Jacob Seibert Jr. at an early
age to the offices of “ The Commercial & Financial
Chronicle.” The “ Chronicle” was Mr. Seibert’s lifework, as it had been that of Mr. Dana. Throughout
the nearly 64 years of his active business life Mr.
Seibert never had any outside associations or con­
nections. His entire time and energy, of which
there appeared to be no limit, were devoted to the
conduct and management of the paper.
Mr. Seibert entered the employ of the “ Chronicle”
when a boy 13 years of age, on Aug. 11, 1870, and
continued the work he then began until his death
on March 14, 1934. He had already passed examina­




tion for admission to the College of the City of New
Yrork when beginning his work, and completed his
education by taking the five-year night course in
the School of Science at the Cooper Union, from
which he was graduated in 1878. An academic
course would have suited his requirements better,
Mr. Seibert himself testified in later years, but, as
he phrased it, he had to take wdiat he could get.
He contributed news and statistical matter to the
columns of the “ Chronicle” almost from the first
day. After having long had exclusive charge of the
department of railroad earnings, he began in 1880
his editorial contributions, and from that time until
the death in 1910 of William B. Dana he was chief
associate editor. From 1895 to 1910 he was also
Vice-President of the company. The fact is that
(<
Continued, on page 2808 )

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939

2744

—

—

To the Chronicle Subscribers
and Advertisers
The following announcement, which appears in the
December number of “ Hunt's Merchants' Magazine,”
issued this week [December, 1870], explains itself:
“ HUNT’ S MERCHANTS’ MAGAZINE” FOR 1871

With the 1st of January we propose to make an
important, and as we think, very desirable change
in the issue of this Magazine; thus far its publication
has been monthly; hereafter it is intended to furnish
it to our subscribers as a weekly, by incorporating it
with our “ Commercial and Financial Chronicle.”
It is known to most of our readers that the first
issue of “ Hunt’s Merchants’ Magazine” was in
June, 1839. The idea of its projector and editor was
to provide business men with a valuable periodical,
devoted to the commercial and industrial interests
of the Nation, and, so far as might be, of the world.
How well that object has been attained is well in­
dicated by its pecuniary success and the universal
favor of its reception among a large class of intelligent
readers, it having been from its earliest number up to
the present moment a paying investment, and today
being favorably known in every important commercial
city of the world. These are mere matters of history
familiar to the public,
But, during the last few years, the increased
rapidity of communication between cities and
nations, by means of railways and telegraphs has
changed into quicker movement all thought and
action of individuals and communities. Commercial
enterprise has thus developed into a new life, and in
place of the ventures which formerly required months
to consummate, now a few days or hours or even
months include both their inception and completion.
Thus it became evident, some time since, to the
publishers of the Magazine that the infrequency of
its issue (only once a month) prevented its keeping
pace with the growing wants and necessities of the
community. Its information was too late to be of
present use; so also its editorials on national or
business policy which when written were at least
timely, too frequently had become dead and lifeless

The Mississippi River steamboat “ Philadelphia.”
famous early-day river steamboat.




A

through a change of issue when they reached the eye
of the reader.
Feeling the force of these facts the publishers of
the Magazine a few years since began the publication
of the “ Commercial and Financial Chronicle,” a
weekly journal combining all the advantages of the
Magazine with very many others, which enabled it to
supply the daily wants of practical business men.
We aimed in its editorials also to make it a trust­
worthy guide of the mercantile, banking, manu­
facturing and monetary classes. It is hardly necessary
to say how well we have succeeded, for the almost
immediate and continued prosperity of that journal
speaks for it. At the present moment it has a very
wide circulation, not only in this country, but
throughout Europe, and no publication ever grew in
favor more rapidly, or so soon acquired so many
warm and ardent friends.
In undertaking the publication of the “ Chronicle”
we expected it to fill the place which the monthly
issue of the Magazine was originally intended to
occupy. As it now more than does that, the necessity
for the monthly does not exist, and we shall not
therefore issue any number of the Magazine in that
form after the present. To our entire list of sub­
scribers, however, the “ Chronicle” will be mailed
weekly after the first of January, for one month,
without charge to any who at the end of that time
desire its discontinuance. Where the time paid for the
Magazine has not expired, the “ Chronicle” will be
sent in its place until the end of the term for which
payment has been made.
In thus incorporating the Magazine with the
“ Chronicle,” and giving the Magazine a weekly issue
instead of a monthly, we have also determined to
publish, about the first of March of each year, a
volume to be called the “ Commercial and Financial
Year Book of Hunt’s Merchants’ Magazine,” which
shall contain all the yearly statistics, &c., necessary
for bankers’ and merchants’ use, in a form easy of
reference, with reports of the different branches of
trade, &c. It is also our intention to give in it a
brief sketch of the life of the more prominent mer­
chants and business men who have died during the
year— a feature which will lend to it increasing in­
terest year by year.
With, then, the publication of our Year Book each
March, and of the “ Chronicle” each week, we think
the interests which the Magazine was intended to
subserve will be fully provided for; and we shall
trust to carry with us into this new field all our old
friends, with whom, through so many years, we have
been so agreeably and pleasantly connected.
“ The Commercial & Financial Chronicle,”
December 31, 1870.

Volume 149

ONE HUNDRED The Commercial & Financial Chronicle Y EAR S OLD
—

—

nderwriter

an Distributor
■---------------------------- *

*

* -----------------------------

‘D e a le r In

United States Government Securities
State and Municipal Bonds
Public Utility, Railroad and Industrial Bonds
Canadian and Foreign Dollar Bonds
Short Term Bonds and Notes
Bankers’Acceptances
Bank, Insurance and Preferred Stocks

The

FIRST BOSTON
CORPORATION
E xecutive Offices

io o B r o a d w a y , N e w Y o r k

.

i F e d e r a l St r e e t , B o st o n

Other Offices

BU F F AL O
PITTSBUR GH

CHICAGO
PR OVI DEN CE

CLEVELAND

HA R T F O RD

ST. LOUIS

SAN FRANCISCO

P H IL AD EL PH IA
SPR INGF IEL D

R epresentatives

ALBANY




LOS AN G E L E S

R U TL AN D

SC RA NT ON

BUENOS AIRES, ARGENTINA

2745

A Century of Achievement
When Freeman Hunt in July, 1839, presented to
the public the first issue of his “Merchants’ Maga­
zine,” the United States was recovering from one
of those periodic depressions which follow eras of
excessive speculation, unwise public policies and
errors of judgment on the part of the business com­
munity. Less than five years previous the national
debt, which had been a source of much difficulty,
had been finally liquidated. Sale of public lands,
from which a large part of national revenue was
derived, however, assumed large proportions during
the year or two following the extinction of the debt
at the beginning of 1835, with the result that huge
surpluses arose. As strange as it may sound to
1939 ears, these surpluses presented a problem to
the Government which apparently expected them to
continue more or less indefinitely, and which after
much debate found a way to “ distribute” them to
the States. Land speculation grew rampant and
was in a sense superimposed upon that incident to
the rapid industrial growth of the previous decades.
Any restraining influence which might have been
exerted by the second Bank of the United States
was made impossible by the opposition of the Jack­
sonian group which then was dominant in national
politics and which succeeded first in crippling that
institution and then in destroying it in 1836 by
refusing a renewal of its charter.
Trouble was inevitable. The so-called “ specie
circular” of July, 1836, difficulties arising out of
the process of “ distributing” the surpluses, and
various other causes precipitated the “ panic of
1837,” which, followed as it was by a period of de­
pressed general business conditions, soon turned the
customary annual Treasury surplus into a deficit,
which in 1837 amounted to $>12,300,000, and in 1838
to $7,500,000. These figures, of course, appear in­
significant to the present generation accustomed to
Treasury statements carrying astronomical sums,
but they take on a different appearance when it is
recalled that in 1837 total expenditures of the Fed­
eral Government amounted only to some $37,244,000, and in 1838 to about $33,865,000. For the
year 1839 there was again a surplus due to sharp
reduction in expenditures and an increase in cus­
tom receipts, but deficits immediately again became
the rule, and it was not until several years had
elapsed that the position of the Treasury grew
again reasonably comfortable.

The first locomotive built in the United States was the
“ America,” shown above, constructed in 1828 by John
Stephens & Co.




Major Controversies
The situation as thus very briefly indicated had
by 1839 set in motion several major controversies
of national interest and significance. One of them
concerned the constantly recurring proposal to re­
establish a National bank to take the place of the
institution that Andrew Jackson had managed to
destroy, but it was not until the Federal Reserve
Act nearly 75 years later found its way to the
statute book that the movement bore definite fruit,
albeit the National Bank Act of the 1860’s in
some respects was designed to meet the same needs.
Another was the question of the tariff. From the
beginning customs receipts had been the main reli­
ance of the Federal Government. The Treasury
deficits of the late 1830’s, therefore, present a wel­
come opportunity for the protectionists who could
make use of the need for larger receipts to advocate
an increase in protective duties. The manner in
which public funds should be kept provided another
topic of discussion and controversy, since there was
no longer any national institution and local banks
varied greatly in the wisdom of their management
and in the soundness of their condition. On the
whole, the year 1839 fell within a distinctly interest­
ing period in our economic and financial history.
There was obviously ample opportunity for such a
magazine as Freeman Hunt envisaged in 1839.
To understand how ample the opportunity was it
is necessary to take note of the state of seriousminded American journalism at that time. So far
as relates to such a periodical as the “ Merchants’
Magazine” the state of affairs in this respect can
perhaps be best described in the words of Mr. Hunt
himself. In later speaking of the state of the peri­
odical press in 1839 with reference to his own
project, he pointed out that the professions, and a
number of the trades, had one or more organs de­
voted in large part to the more technical aspects
of their operations, but that “ commerce (to which
word he gave a very broad meaning), more or less
connected with all other pursuits, was not repre­
sented. While the business concerns of commerce
filled the huge columns of the daily press with advertisemnets and with shipping intelligence and
with matters relating to everyday details of mer­
chandise on the one hand, there was not a single
magazine, of high or low pretensions, either in
America or, to the best of our knowledge, in Europe,
to represent and to advocate the claims of com­
merce. There were one or two dictionaries of com­
merce, and a few works intended for practical pur­
poses; but a literature of commerce did not exist
even in name.”
It was to fill this void that the “ Merchants’ Maga­
zine” was founded in 1839. “ The questions which
arise in such extended intercourse with the world
(as this country had succeeded in developing),” said
Mr. Hunt in announcing the appenranee of his first
issue, “ are multifarious and diversified.
The
knowledge and information necessary to guide the
adventures to a successful termination is often
complex and difficult of solution; the sources
whence it is to be obtained are not always acces(C o n tin u e d o n p a g e

2750)

Volume 149

ONE HUNDRED
—The Commercial & Financial Chronicle YE A R S OLD
—

2747

PENNSYLVANIA STATION, New York

W h a t e v e r your travel itinerary, Pennsylvania Railroad
meets your every need. From Pennsylvania Station, New York,
great air-conditioned fleets of trains speed daily . . . westward to
Pittsburgh, Chicago, Cleveland, Detroit, Cincinnati and St. Louis;
southward to Washington, the Nation’s Capital; Florida, the Gulf
Coast and other Southern points; shoreward to Atlantic City and
other famous seaside resorts.
Over the shortest route to Chicago and St. Louis Pennsylvania
Railroad’s fast through trains make convenient connections with
leading trains to San Francisco for the Golden Gate International
Exposition and all the West.

In terio r o f the sm art O b serva tio n L o u n g e Car
on Broadway Limited o f th e P en n sy lv a n ia F l e e t
o f M o d er n ism . A p le a sa n t p la c e to w h ile a w a y
a n e v e n in g h ou r o n s p e e d in g w h eels.

O u t s t a n d in g in design and modern appointments are
these great air-conditioned trains of the Pennsylvania Fleet of
Modernism: The Broadway Limited (all private room train) and
The General between New York and Chicago; "Spirit of St. Louis”
between New York and St. Louis . . . Washington and St. Louis;
Liberty Limited between Washington, Baltimore and Chicago.
By Pennsylvania Railroad, the shortest route, and connecting lines,
you can go swiftly, comfortably to any place in the United States,
Canada and Mexico.

G ia n t strea m lin ed electric lo co m o tive s m ake the
run f r o m N e w Y ork v ia P h ila d elp h ia to H arris­
burg, 1 9 5 m iles, a n d to W a s h in g to n , 2 2 6 m i l e s ...
A m e r ic a ’s g r e a te s t e x te n t o f electrified trackage.

Pennsylvania Railroad




Shortest Route Between East and West. . . The Direct Route
to New York World’s Fair . . . Station on Fair Grounds

2748




ONE HUNDRED—The Commercial & Financial Chronicle—Y E A R S OLD Nov. 4, 1939

N EW Y O R K : W IL L IA M

B. D A N A , P U B L I S H E R A N D P R O P R I E T O R ,

Nos. £0 W i l l i a m
Lo# ook ; Sa

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Chronicle

Buildings.
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Volume 149

ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD
—

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2749

ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939

2750

—

—

H U N T 'S

MERCHANTS’ MAGAZINE.
No. I.

JULY,

1839.

A rt . I. — I N T R O D U C T IO N .
I n legal phrase, w e would prefer Being judged b y our acts— and in
commercial parlance, being credited with our performances— to m aking
promises in advance o f our publication. But custom having rendered it
necessary, on the appearance o f a new work, to accompany it with some in­
dication o f the plan upon which it w ill be conducted, and the objects it is
intended to subserve, w e com ply with the requisition..
In the first place, as an excuse for its appearance at all, w e m ay say,
that such a publication as the present is imperiously demanded by the wants
and wishes o f the commercial part o f the community, and w e believe that
such a work, conducted upon enlarged and liberal principles, is calculated
to be eminently useful, ana w ill prove highly acceptable, not only to the
Merchant, but to all who feel an interest in promoting information on sub­
jects deeply identified with the wealth, the greatness, and the happiness o f
our common country. Commerce is not only a business, but a science,
extremely intricate m some o f its developments, and calculated to elevate
the mind, and enlarge the understanding, when pursued upon legitimate
principles, and with high and honorable views.
Essentially and practically a trading people, the commerce o f the U ni­
ted States has been pushed, by the enterprise o f her citizens, to every part
o f the habitable globe — her ships penetrate every ocean, and her canvas
whitens every sea, bringing home the varied productions o f every soil and
climate, and while rewarding individual enterprise and exertion, adding
to the store house o f general knowledge, and increasing the prosperity o f
the country.
The questions which arise in such extended intercourse with the world,
are multifarious and diversified. T he knowledge and information neces­
sary to guide the adventures to a successful termination, is often complex
ana difficult o f solution; the sources whence it is to be obtained are not al­
ways accessible, and operations are often begun in^ a reckless spirit o f spe­
culation, and end, as might have been anticipated, in defeat, simply because
VOL. i. — n o . i.

1

A Century of Achievement
(< o n t i n u e d f r o m
C

page

2746)

sible; and operations are often begun in a reckless
spirit of speculation, and end, as might have been
anticipated, in defeat, simply because some element
necessary to success, or some piece of information
essential to the adventure had, in the ardor of pur­
suit, been disregarded.
“ One of our prominent objects will be to raise
and elevate the commercial character—to point out
the requisites necessary to form the thorough and
accomplished merchant. An expensive education,
and a long course of study, is necessary to form the
statesman, the physician, or the common lawyer;
but every clerk seems to think he can at once assume
the practical merchant, and spring, ready armed
and equipped, into the active business of life, like




Minerva from the head of Jove; forgetful that as
pretenders in one case soon sink into oblivion and
disgrace, he cannot expect otherwise than loss and
discomfiture, if wanting the elementary information
necessary to success.
“ We shall, therefore, from time to time point out
the headlands in the commercial chart, and en­
deavor to mark the quicksands where oftentimes
shipwreck has been made, not only of property, but
of probity, and that high sense of honor, wanting
which, however abounding in everything else, a
man may assume the name, and be totally deficient
in all that forms the high and honorable merchant.”
Becoming somewhat more specific, he further
assured the public that “ every subject that can be
interesting or useful to the merchant will be em­
braced from time to time; for it is our intention to
(< o n t i n u e d ,
C

on page

2755)

ONE HUNDRED
—The Commercial & Financial Chronicle—YE A R S OLD

Volume 149

AN
IN

THE

INEXPENSIVE
BUDGET

OF

2751

ITEM

CIVILIZATION

OPPER has served man for some 5500 years

replaced the village blacksmith, there you will find

— yet today, as never before, the "red metal”

copper and its alloys serving economically and well.

C

is indispensable to civilization. Continuing the
trend started sixty years ago when the great Ana­
conda mines at Butte, Montana began systematic
production at the dawn o f our electrical age, copper
in abundance is available to foster new achieve­
ments in raising our standards o f living.

Because o f its adaptability to varied requirements
. . . because its rustlessness imparts exceptional
durability . . . copper is economical indeed. O f all
commercial metals, copper and its many useful al­
loys combine to best advantage the properties o f
high electrical and thermal conductivity, worka­

Copper’s most vital service is o f course rendered

bility, strength and resistance to corrosion.

to the electrical industry. For without great quan­
Copper— A Basic Industry

tities o f copper, the growth o f electricity would
have been immeasurably retarded. Yet the devel­

Copper is one o f those basic industries through

opment o f new alloys and new products has ex­

whose development America has prospered greatly.

tended copper’s applications far beyond its useful­

Essential though copper is today to every activity

ness as a conductor o f electricity. In our homes

o f modern man, much is yet to come . . . through

and automobiles, in heating, refrigeration and air

continued research and constantly im proving

conditioning, even in the welding shops that have

methods o f fabrication.

39260

AnacondA
from mint to consumer

A n a c o n d a C o p p e r M in in g C o m pa n y



25 Broadway

New York

*

jankers’ (Sasfttr, (Sommewial JTiraes, jStaitwag iHanitor, and ffantrautt §m ural
A W EEK LY

NEW SPAPER,

REPRESENTING THE INDUSTRIAL AND COMMERCIAL INTERESTS OF THE UNITED STATES.
V O I ..

NO.

SATURDAY, JULY 1, 1865.

1.

L

restrictions which a
energies. It has
also with crippled powers survived those forms o f restric­
tion which unwise legislation has at times imposed. Let the
vast improvements which will be sure to follow the gradual
removal o f the latter, prove to the partisans of both that
the country has hitherto l>een prosperous in spite o f them,
The countr\ has bravely survived the

C O N T E N T 8.

fatal industrial system once placed upon its

T H E CHRONICLE.
Late Increase ef Foreign Immigra­
tion ................................................
Political A>|K*cts o f the National
IJ.terature.........................................
Debt...........................................
Foreign Intelligence.......................
T he l*roi»i«l«>nt*!* P o lic v .................
t'oiiiinerclal and Miscellaneous
T h e Detroit < .invention...............
News.........................................
Industrial Kehahllitalion o f the
South.............................................

The Chronicle..............................

THE RANKERS GAZETTE AND COMMERCIAL TIMES.

and liot as some think by reason o f them.

12 The Cotton Trade............................
U Ureailstuflh........................................
Prices Current and Tone o f the
M arket...........................................
06 Imports and E xports.......................

Bank, Railway and Money Market
Bankers Price Current...................
Mails..................................................
Commercial Epitom e.....................
D ry Goods Trade............................

90
2*

|THE R A IL W A Y MONITOR A N D INSURANCE JOURNAL.
Railway and Mining News and
I Railway Share L ist.........................
Markets..........................................
2 5 1 Insurance Share L ist................. .
IN D E X T O ADVERTISEMENTS.
Auction N otices..............................
61 | Bank Announcem ents,etc............

27

32

difficulty aud doubt to success and certainty.

£|)t CljronicU.
T h e C o m m e r c i a l a n d F i n a n c i a l C h r o n i c l e is issued every Saturdati m orning with the latest news by mail and telegraph up to
mulnight o f F rid a y. A >a i l y B u l l e t in is issued every m orning
with all the Commercial and Financial news o f the previous day
up to the hour o f publication.

I

The

Chronicle and D a ily Bulletin are delivered to all
subscribers in N ew York C ity per year at

. .

.

$12 00

T o all other subscribers The Chronicle is mailed without
the D a ily B ulletin at

.

.

; . . . « • • •

which
gates of our
vast uatural resources to the toiling masses, who now contend
against oppression and poverty in less favored lands, it is
necessary that the j>oliey o f the country should be based
wholly upon her industrial and commercial interests. These
have ever pointed the right, way, and will yet, lead us from
To secure this great end, to attain the prosperity

thus lies within our reach, and to open wide the

10 00

W IL L IA M B. DAH A St O O , Publisher*,
00 W illiam Street, H ew York.

It is not overstating the plain truth to aver that these
great interests have never yet found a fitting exponent in the
newspaper press of this country. The pursuits o f industry
have been looked upon too exclusively in their money mak­
ing aspects—too little in their social and political ones. The
great influence which they have always exercised upon the
fortunes of our country and which they must always con­
tinue to exercise, have been forgotten in the strifes o f petty
politicians, and in the heat of personal discussion. No com
prehensive paper devoted wholly to the great mercantile and
commercial interests, has yet appeared. Taking the entire
press of the country together we shall find that these inters
ests have to a certain extent obtained public recognition; but
in no single journal have they received undivided attention.
It is to fill this place in the ranks o f the public press,
supply this want, that T he C o m m e r c i a l a n d Fm am o r a l
Chronicle aspires. Nor will it stop with the advocacy o f
correct principles; but will be in every essential sense a news­
paper. All that the economist, the merchant, the banker,
the manufacturer, the agriculturist, the shipper, the insurer,
and the speculator, may need to know in the course o f his
daily pursuits, will be found duly chronicled in its colum ns.
To this great purpose we apply ourselves. L et the pubUo
in due time answer whether or not we have iuooeasftilly ac­
complished It.

T IB CHIONICLE.
T he cod of the war, through which the country has just
pannni, inaugurates an era of peace and prosperity which
only needs wise legislation to find encouragement; and
with such a stimulus, natural recuperative energies will soon
l>e at work, to heal the wounds our civil strife has made, and
to lead us once more" into the paths of industry and af­
fluence.
At no time in our history has the knowledge and diffusion
o f commercial truths, and the advocacy of the well defined
principles which govern the economy of wealth, been so
nctidpfl as now. During the war we have seen one false the*
cry after another exploded, and all the wild schemes for pro­
ducing wealth, faster than the measured action of industrial
THE POLITICAL ASPECTS OF T IE NATIONAL H I T .
laws will permit, come to naught, until all are convinced that
M r . J av C ooke, the agent o f the national loan, has issued
value only resides in labor and time. Weary, then, of a con­ a condo ad populism on the advantages o f a N ational D e b t,
stant succession of dearly bought experiences, do we now for which he has been called to take d iv a n sm art raps ov er
turn to the teachings of the great leaders in political econ­ the knuckles front the press.

omy for wisdom and guidance,



The astonishing sucoess

which has attended ths N ational

Volume 149




ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD
—

—

REVIEW
OF A QUARTER CENTURY
A REPORT ON THE PURE OIL COMPANY

A quarter o f a century ago, the chance discovery o f high-grade crude oil in the
little mountain town o f Cabin Creek, W est Virginia, led to the formation o f
The Pure O il Company.
The past twenty-five years have seen the growth o f this company to a position
o f major importance in the petroleum industry. Producing operations, in a care­
fully planned expansion program, have extended to nine states. A n d so conserva­
tively have these fields been exploited that Pure O il holds an unusually strong
position in crude oil reserves.
N or have other phases o f activity in the industry been neglected in Pure O il’s
years o f progress. Six modern refineries . . . control laboratories for petroleum
research . . . a co-ordinated transportation system with marine, railway, pipe-line,
and motor facilities . . . and 15,000 dealers in a well-established marketing organi­
zation enable Pure O il to control the quality o f its products from oil well to
service station.
M otorists in thousands o f communities rely on Pure O il dealers and the
branded products they handle. Th e blue-and-white Pure Seal on every pump and
can has become a seal o f acceptance for quality petroleum products. For modern
motoring, as well as modern industry, has learned to "B e Sure . . . with Pure.’ ’

T H E P U R E O I L C O M P A N Y , U. S. A.

2753

ONE HUNDRED The Commercial & Financial Chronicle Y EAR S OLD Nov. 4, 1939

2754

—

—

m i L E S I O n E S in H ISTO R V
O NE HUNDRED YEARS is a long time — longer than any man's span of memory. We congratulate our
friends of the Commercial and Financial Chronicle upon attaining that distinguished age.

We ourselves feel comparatively young as we enter upon our Fiftieth year. The Chronicle was
halfway along the road leading to the century milestone when in 1890 this bank opened its doors
for business. Memory of living man can still reach that far. Time has brought many changes, how­
ever; and some of them are reflected in the two Statements of Condition compared below:

First published Statement
of the Citizens Bank:
(Organized 1890 — Nationalized 1901)
AT
E
S Ttion EfMthe N T
o

OF

C IT IZ E N S ’

THE

Condensed Statement of Condition
at close of business October 2, 1939:

CON DI-

RESOURCES

B A N K

Cash and Due from Banks........................................ $ 37,704,526.33
United States Obligations, Direct or
36,194,980.99
Fully Guaranteed...................................................
State, County, and Municipal Bonds......................
4,904,549.12
Other Bonds................................................................
1,676,054.74
Loans and Discounts.................................................
47,002,943.66
Federal Reserve Bank Stock......................................
246,000.00
Stock in Commercial Fireproof Building Co__
Head Office Building.............................................
348,500.00
Bank Premises, Furniture and Fixtures, and
Safe Deposit Vaults (Including Branches).........
999,132.80
Other Real Estate Owned........................................
1,467,637.01
Customers' Liability under Letters of Credit
123,679.11
and Acceptances...................................................
Earned Interest Receivable......................................
340,647.89
Other Resources.........................................................________530,174.76

Of Los Angeles, Cal., January 1st, 1891.
RESOURCES.

Mortgage, loans and bills............... $130,960 00
Due from banks................................ 17,951 7*
Premiums paid ...............................
99 00
Furniture and fixtures.....................
80780
Expenses and taxes paid.................
79) 18
Cash on hand.................................
15,634 80
$166,248 56
L IA B IL IT IE S .

Capital paid u p ............................... $126,000 00
1,515 53
Undivided profits ..........................
Certified checks................................
129 24
Due depositors.................................. 38,60379
(3eal)
$166,248 56
The State of California.County of Los Ange*
les. We do solemnly swear that we have (and
each o f us has) a personal knowledge of the
matters confained in the foregoing state­
ment, and that every allegation and state­
ment therein contained is true to the best of
our knowledge aDd belief.
T. S. C. LO WE, Piesident.
F. D. HALL; Assistant Cashier.

TO TA L................................................................

$131,538,826.41

LI ABI LI TI ES

Subscribed and sworn to before me, this
3rd day of January, 1891.
(Seal)
FRANK M. KELSEY,
1-5 10
Notary P u b lic.

Capital Stock.......................................$5,000,000.00
Surplus................................................. 3,200,000.00
Undivided Profits............................... 1,150,000.00 $ 9,350,000.00
Reserves for Interest, Taxes, Contingencies, Etc.. .
966,399.85
Letters of Credit and Liability as Acceptor or
Endorser on Acceptances & Foreign B ills...........
140,293.26
Other Liabilities..........................................................
10,620.72
Deposits.......................................................................
121,071,512.58
TO TA \................................................................... $131,538,826.41

CITIZENS N TIO A
A NL
TRUST AND SAVINGS BANK
OF

LOS ANGELES
MEMBER




FEDERAL

RESERVE

SYSTEM

AND

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

Volume 149

ONE HUNDRED
—The Commercial

Financial Chronicle

—

YE A R S OLD

2755

Complete Services
for

Financing
Imports and Exports
from and to

Italy
and everywhere

BANCO

d i

NAPO LI T R U S T C O M P A N Y
O F

N E W

Y O R K

M E M B E R F E D E R A L D E P O S IT IN S U R A N C E

A Century of Achievement
( C o n t in u e d f r o m p a g e

2750)

render the “ Merchants’ Magazine and Commercial
Review” (this more lengthy title appears to have
been used more or less interchangeably with the
shorter title the, “ Merchants’ Magazine” ) a stand­
ard work on the subjects to which it will be devoted,
so that it may be referred to with certainty and
confidence, for counsel and direction in the various
questions arising in commercial affairs. Currency,
exchanges, banking, commercial and marine law,
partnerships, agencies and statistical information,
commercial and manufacturing, will have onr
special attention, as well as the domestic trade of
the United States; and we are happy at being
enabled to say, with confidence, that we have
secured able and talented assistance in the various
departments of our work, and the whole will be
under our immediate supervision.”

C O R P O R A T IO N

Thus and in these circumstances the enterprise
which today publishes the weekly “ Commercial &
Financial Chronicle” and its numerous allied vol­
umes at less frequent intervals was launched. What
a different world this was!' How vastly different,
and in some respects more difficult, were the prob­
lems an editor had to face! For us who take the
automobile moving on a vast network of improved
roads, the airplane, the telegraph and cable, the
wireless, and a thousand and one other instruments
and devices for granted, to say nothing of modern
railroads, steamships, automatic machinery of a
thousand varieties, new products from the labora­
tories of the past century, but particularly of the
past two or three decades, almost endless sources
of information concerning all these things, it will
be informative to pause for a few moments at this
point and consider what the United States, and the
world, for that matter, was like in 1839.

The United States in 1839

The thoughtful reader need not go further than
the files of the “ Merchants’ Magazine” for an excel­
lent bird’s-eye view of this country a hundred years
ago. Freeman Hunt felt great and quite justifiable
pride in the progress this country had made in the
half century that preceded the founding of the pub­
lication which was to become his monument. He
said in introducing his magazine that “ essentially
and practically a trading people, the commerce of
the United States has been pushed, by the enterprise
of her citizens, to every part of the habitable globe—her ships penetrate every ocean, and her canvas
whitens every sea, bringing home the varied pro­
ductions of every soil and climate, and while re­
warding individual enterprise and exertion, adding
to the storehouse of general knowledge, and increas­
ing the prosperity of the country.” Progress cer­
tainly had been noteworthy. Charles F. Adams,
writing in the very first issue of “Hunt’s” was able
to introduce an article on “ The State of the Cur­
rency” with the following summary statement:
“ It is now half a century since the great impulse
given by the organization of an efficient system of




general government to the commercial energies of
the United States was first communicated. The
period of time which has elapsed has been full of
important public events; many of them by no means
favorable to the full development of our prosperity.
There have been wars, embargoes, a depreciated
paper currency, and an irregular national policy,
to contend with, in almost every country with which
we have had relations, as well as in our own. Yet
notwithstanding all these obstacles the progress of
the United States, as a commercial Nation, has been
almost uniform. The exports of the country, which
in 1790 hardly equaled in value the sum of $20,000,000, have gone on increasing until they now
amount to $100,000,000 annually. Our population,
which at the former date scarcely numbered
4,000,000 souls, cannot at the present moment be
estimated below 16,000,000; while the wealth of the
community, if it can be at all measured by the
amount of currency it sets in motion, must be
allowed to have enlarged even in a greater propor­
tion still.”
(.Continued on page 2756 )

ONE HUNDRED The Commercial & Financial Chronicle Y EAR S OLD Nov. 4, 1939

2756

—

—

Pennsylvania Water Power Company
H y d r o -S t e a m - E l t c t r i c D e v e l o p m e n t o f P e n n s y lv a n ia

W a t e r & P o w e r C o . o n S u s q u e h a n n a R i v e r a t .H o l t w o o d , P a .

Generates electricity by water power and steam at its develop­
ment on the Susquehanna River at Holtwood, Pa.

Owns and operates a regional, high tension transmission net­
work, geographically integrated with public utility systems in terri­
tory adjacent to its plants, and heavily interconnected by transmission
lines with major utility groups on Atlantic Seaboard.
Sells entire output in bulk to public utilities in Lancaster, York
and Coatesville, Pa., and Baltimore, Md. and, on a regional basis
to Pennsylvania Railroad for operation of important sections of its
electrified freight and passenger lines.
Began operation in 1910.
dividend was paid in 1914.

Unbroken dividend record since first

Pennsylvania Water G Power Company
sf
HOLTWOOD, PA.

A Century of Achievement
( C o n tin u e d ,

fr o m p a g e 2 7

54)

Yet it must be admitted that sucli statements as
these, and many more with which the early issues
of “ Hunt’s” are crowded, while without question
establishing the fact of great progress achieved,
serve also to impress the modern mind most forcibly
with the fact that there was an almost incredible
amount of work still to be done before the world
began even to approach the appearance to which
we are accustomed— and to the professional jour­
nalist at least reveal in a striking way the difficul­
ties with which those early publishers and editors
were obliged to contend. Turn first to the vital
matter of transportation and intercommunication.
Railroads had appeared in this country about a
decade prior to the appearance of the first issue of
“ Hunt’s,” and had been steadily if not rapidly pro­
gressing and improving. They had by 1839 reached
a stage to cause the generation of that day to swell
their chests with pride, and to enable the more for­
ward-looking to envisage something of what they
were destined to do for the country. But judged
by 1939 standards what railroads they still were!'

Railroads in 1839
An early issue of “Hunt’s” carried a leading
article entitled “Railroads of the United States.”
As was the custom of the magazine, an obviously
well-informed writer was chosen for the task, and
space was not withheld from him. In the belief
that this exposition at once most admirably por­
trays the enterprising spirit of that day and most
informingly reveals what transportation and travel



were like, we extract certain extraordinarily inter­
esting passages from it herewith:
“ Were it to be asked,” the author begins, “ what
is the most distinguishing feature which marks our
Republic, a ready answer might be given: it is the
productive enterprise of the people. Within the
period of a little more than half a century of selfgovernment, what monuments has it erected around
us T We have indeed no gorgeous temples and
gigantic pyramids, no crumbling halls of paintings
and statues dim with age, the work of our own
hands, no catacombs, the burial places of kings, the
date of whose erection is lost in the lapse of ages,
and through whose winding labyrinths the hyena
prowls and the bat flits in the darkness. But we
have, under the fostering hand of the local govern­
ments of our most important States and individual
enterprise, dug through plains, hills and solid
locks, in our long lines of canals and railroads,
works that have stamped upon the soil a lasting im­
pression, which, if the Republic were swept away,
and all records of its existence blotted out forever,
would be viewed by posterity with the same wonder
with which we now gaze upon the moldering ruins
of Rome, the marble temples of the Acropolis, the
pyramids of Egypt, and the track of the Appian
Way.”
Then follows a lengthy account of the railroad
lines already operating or under construction,
together with the lines of future development either
already planned or certain to be chosen. These
latter have now long ago been realized and become
commonplace. The status of the development at
(Continued from page 2758 )

Volume 149

ONE HUNDRED
—The Commercial & Financial Chronicle—Y E A R S OLD

P

X UBLIC UTILITIES

are having their

ups and dow ns" you hear.
But in the "u p s and dow ns" of

2757

of public con cern , the price of
electricity to the people, stands
as a resounding "D O W N ".

costs and prices, the benefits are

, This "D O W N ", today the lowest

all in favor of the one interested

in history, is contributed to the

party uppermost in the minds of

people as an econom y of public-

private utility management: the

minded, experienced and reliable

consuming public.

private management. In this day

The "U P S " is the cost of opera­

of soaring taxes and high living

tion, wages, materials, taxes, and

expenses, what else gives you so

barriers in duced by legislation.

many "extra values' 7 for the same

Despite this, the ultimate point

or less m oney?

The Commonwealth & Southern Corporation




MICHIGAN • ILLINOIS • INDIANA • OHIO • PENNSYLVANIA • ALABAM A
FLORIDA • GEORGIA • MISSISSIPPI • SO. CAROLINA

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939

2758

—

—

IMPERIAL BANK

OF CANADA

HEAD OFFICE:
A . E. P h i p p s , President

TORONTO

H . T . Jaffray, General Manager

Branches throughout Canada; banking
connections and correspondents in all
commercial countries.
29 branch offices in the mining areas
of Northern Ontario and Quebec.

A Century of Achievement
( C o n tin u e d ,

fr o m

page

N am e and

TABLE OF THE P R IN C IP A L RAILW AYS IN OPERATION IN THE
U N ITED STATES IN 1840
W h en O pened—

C o urse—

L en g th
in M ile s

M a in e —

Bangor & Orono (1836)_________ From Bangor to Orono__________

10

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

10

Nashua & Lowell (1838)_________ Nashua to Lowell_______________

15

Total length in State.
N ew H a m p s h ire —

Total length in State
M a ssa ch u setts—

Quincy (1827)__________________ Quincy Quarries to Neponset River
Boston & Lowell (1835)_________Boston to Lowell________________
Andover & Wilmington (1836)___Andover to the Boston & Lowell
Railroad_____________________
Andover & Haverhill (1838)____ Andover to Haverhill____________
Boston & Providence (1835)-------Boston to Providence___________
Dedham Branch (1835)_________ Boston & Providence R R . to
Dedham_____________________
Taunton Branch (1836)_________ Boston & Providence R R . to
Taunton_____________________
Boston & Worcester (1835)_____ Boston to Worcester____________
Western R y. (1839)_____________ Worcester to Springfield
Worcester & Norwich (1839)____ Worcester to Norwich___________
Eastern R R . (1839)_____________ Boston to Newburyport________
Total length in State________________________________________
R h od e Island—
Providence & Stonington (1837).-Providence to Stonington_______
Total length in State________________________________________
C on n ecticu t—
Hartford & New Haven (1839)---- Hartford to New Haven________
Housatonic_____________________ Bridgeport to New M ilford______
Total length in State________________________________________
New Y ork—
'M ohawk & Hudson (1832)_______ Between the rivers Mohawk and
Hudson______________________
Saratoga & Schenectady (1832)---- Saratoga to Schenectady________
Rochester (1833)________________ Rochester to Carthage__________
Ithaca & Oswego (1 8 3 4 ).. ____ Ithaca to Oswego_______________
Rensselaer & Saratoga (1835)____Troy to Ballston________________
Utica & Schenectady (1836)_____ Utica to Schenectady____________
Buffalo & Niagara (1837)_______ Buffalo to Niagara Falls________
Harlem (1837)__________________ New York to Harlem.
Lockport & Niagara (1837)______ Lockport to Niagara Falls
Brooklyn & Jamaica (1837)_____ Brooklyn to Jamaica________
Auburn & Syracuse____________ Auburn to Syracuse_________
Catskill & Canajoharie__________ Catskill to Canajoharie______
Hudson & Berkshire_____________Hudson to the boundary of
Massachusetts____________
Tonawanda_____________________ Rochester to Attica_______

15
4
26
71

10
41
2
11
45
54
59
36

295 %
47
47

16
16

Total length in State________________________________________
Virginia—
C h esterfield ..._________________ Richmond to Chesterfield coal
mines________________________
Petersburg & Roanoke__________ Petersburg to Blakely on the
Roanoke_____________________
Winchester & Potom ac__________ Winchester to Harper’s Ferry____
Portsmouth & Roanoke__________ Portsmouth to Weldon_________
Richmond Fredericksburg &
Potomac______________________Richmond to Fredericksburg____
Manchester_____________________ Richmond to coal mines________
Total length in State________________________________________

86
30
34 X
40
59M
249 M
13
59
30
77)4
58
13
250)4

S o u t h C a r o lin a —

South Carolina R R . (1833)______ Charleston to Hamburg on the
Savannah____________________
Total length in State________________________________________
G e o r g ia —

Altamaha & Brunswick_________ Altamaha to Brunswick________
Total length in State_________________________________________
A la b a m a —

136
136
12
12

Tuscumbia & Decatur___________Mussel Shoals, Tennessee R iv e r ..

46

Total length in State_________________________________________

46

L o u is ia n a —

Pontchartrain (1831)____________ New Orleans to Lake Pontchartrain_________________________
Carrollton_______________________New Orleans to Carrollton______
Total length in State_______________________________

5
6
11

Lexington & Ohio_______________Lexington to Frankfort.
Frankfort & Louisville__________ Frankfort to Louisville-

29
50

Total length in State____________________________________

80

Total length (in miles) in United S ta tes... . . _____________....2 ,2 7 0

16
22
3
29
24)4
77
21

7
24
12

26

68

30
45

Total length in State________________________________________
Pennsylvania—
Columbia_______________________ Philadelphia to Columbia_______
Alleghany______________________ Hollidaysburg to Johnstown over
the Alleghanies_______________
Mauch Chunk (1828)___________ Mauch Chunk to the coal mines. .
Room Run______________________Mauch Chunk to the mines______
Mount Carbon (1830)___________ Mount Carbon to the mines_____
Schuylkill Valley________________Port Carbon to Tuscarora, with
numerous branches__________
Schuylkill_______________________________________________________
M ill Creek______________________ Port Carbon to Mill Creek______
Minehill & Schuylkill............................................................................
Pine Grove______________________Pine Grove to coal mines________
Little Schuylkill (1831)__________Port Clinton to Tamaqua_______
Lacka waxen____________________ Lackawaxen Canal to the river

128

Westchester (1832)______________Westchester to Columbia R R ____
Philadelphia & Trenton (1833)___Philadelphia to Trenton________
Philadelphia & Norristown (1837)-Philadelphia to Norristown_____
Central Rjr______________________Pottsville to Danville---------------Philadelphia & Reading_________ Philadelphia to Reading________
Philadelphia & Baltimore________ Philadelphia to Baltimore_______

-

Total length in State__________________________________
M aryland—
Baltimore & Ohio (1835)________ Completed to Harper’s Ferry,
with branches________________
Winchester______________________Harper’s Ferry to Winchester____
Baltimore & Port Deposit_______ Baltimore to Port Deposit______
Baltimore & Washington (1835)..Baltimore to Washington_______
Baltimore & Susquehanna (1837)-Baltimore to York______________

40
40

404)4




L en g th
in M ile s

C ourse—

K e n t u c k y —-

Total length in State________________________________________
New Jersey—
Camden & Amboy (1832)_______ Camden to Amboy______________
Paterson (1834)_________________ Paterson to Jersey City_________
New Jersey (1836)______________ Jersey City to New Brunswick___
Morris & Essex_________________ Morristown to Newark_________

Total length in State.

O pened—

Newcastle & Frenchtown (1 8 3 2 )..Newcastle to Frenchtown.

2756)

the time that the “ Merchants’ Magazine” was in its
infancy can, we believe, be best portrayed for the
present day reader by the following tabulation care­
fully prepared by the author of the article in ques­
tion and presented herewith:

N am e and

W hen

D e la w a r e —

61
16 H
31
20

82
36
5
5M

7fi

30
13
7
20

4
23

16)4
9

26 y
2

19
51)4
40)4
93
489

79

LIST OF THE OTHER RAILW AYS NOW IN PROGRESS IN THE
U N ITED STATES
N am e—

C ourse—

L en g th
in M ile s

New Ham pshire—
Haverhill & Exeter______________ Haverhill to Exeter______ ______
18
Newburyport & Portsmouth_____Newburyport to Portsmouth____
24
M assachusetts—
Old Colony______________________Taunton to New Bedford_______
20
Western_________________________Springfield to New York line____
63
C on n ecticu t—
Western________________________ Hartford to S p rin g fie ld ...._____
27
New Y o r k Long Island_____________________ Jamaica to Greenport___________
50
New York & Erie_______________ New York to Lake Erie__________ 505
Saratoga & Washington_________ Saratoga to Whitehall___________
41
New Jersey—
Elizabethtown & Belvidere______ Elizabethtown to Belvidere_____
60
Burlington & M ount H olly______ Burlington to Mount Holly_____
7
Pennsylvania—
Oxford__________________________ Columbia R R . to Port D ep osit..
38
Tioga___________________________ Chemung Canal to Tioga coal
mines________________________
40
V irginia—
Greensville & Roanoke___________________________________________
18
S outh C arolina—
Charleston & Cincinnati________ Charleston to C in c in n a t i........ 500
G eorgia—
Augusta & Athens_______________ Augusta to Athens______________ 100
Macon & Forsyth_______________ M acon to Forsyth______________
25
Central R R _____________________ Savannah to M acon____________
Alabama—
Montgomery & Chattahoochee__________________________________ _
90
Mississippi—
Mississippi R R __________________ Natchez to Canton________ _____ 150
K en tu cky—
Bowling Green & Barren River___Bowling Green to Barren R iv e r..
1H
O hio—
M ud River & Lake Erie_________ Dayton to Sandusky____________ 153
Sandusky & Monroeville_________Sandusky to Monroeville________
16
M ichigan—
Detroit & St. Joseph____________ Detroit to River St. Joseph_____ 200

200

Total length_________ ________________________________________ 2,346)4
(Continued on page 2760)

ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD
—

Volume 149

—

2759

■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■

How the Community Benefits
from Consolidated Edison’s

U l O I - D O U i t - i t - W H TAXES
See how New York’s share ($29,200,000 a year) helps to run the City

HE MONEY which your utility companies
pay out in taxes comes from the public
and goes back to the public to help maintain
the essential services o f government. It is a
substantial part of your regular bill for utility
service.

T

For the year 1938, our taxes were more
than $51,000,000, or nearly$l,000,000 a week
.. . not including the New York City Sales Tax
on the public’ s use o f utility service or pur­
chase of appliances.
Of this tax bill o f $51,000,000, over 55%,
or $29,200,000, goes directly to the City of
New York. How this great sum contributes
to the welfare o f the community, you can
*

easily see from the familiar examples in the
illustrations above.*
In the past ten years our taxes have doubled
—a 100% increase! In the year 1929, taxes
took 11^ of every dollar that our customers
spent for electricity, gas or steam. In 1937,
this figure had risen to 210, and in 1938 to
more than 210.
But despite rising costs, the rates paid for
our service have continued to come down.
Successive reductions are saving our custo­
mers in New York and Westchester about
$49,000,000 this year, compared with what
they would have paid at 1929 rates for their
present use o f electricity and gas.

On top o f the taxes that go to the City o f
New York, we also pay State, Federal
and other taxes at the rate o f more than
$419,000 a week— a total o f $21,800,000
a year.

Based on “ The City o f New York Budget fo r 1938 ”

mm m m mm i
i

M
t

State, Federal, and Other Taxes, Too!

i

■

m pm

y a

*n

a y

.

NEW YORK & QUEENS ELECTRIC U G H T & POWER COMPANY




• BROOKLYN EDISON COMPANY, INC. • WESTCHESTER U O H TIN G C O m Pa n

THE YONKERS ELECTRIC LIGHT & POWER COMPANY

• NEW YORK STEAM CORPORATION

i

2760

ONE HUNDRED—The Commercial & Financial Chronicle—Y EAR S OLD Nov. 4, 1939
A Century of Achievement
Q C o n tin u e d f r o m

r#
Visit tropic shores that gleam like gems against the blue
Caribbean. Each sunny port presents an endless chain of
absorbing interest— gayety, color, variety. Each hour aboard
your smart white American Flag liner is as delightful as
Great White Fleet hospitality, engaging company can make

it . . . with an outside, first class stateroom, outdoor pool
. . . a gay orchestra, sound movies and unrivalled menus.
* * * * E v e r y S a tu r d a y there’s a cruise from New York to
Costa Rica with 2 calls at Havana, and a visit to the Panama
Canal Zone (15 Days, $175 up). . . . E v e r y W e d n e s d a y a

cruise to Barranquilla and Cartagena, Colombia, S. A ., with
2 calls at Kingston, Jamaica, B. W . I., and a visit to the
Panama Canal Zone (15 Days, $175 up). . . . A l t e r n a t e S a tu r­
d a y s , tours to the Highlands of Guatemala with calls at San­

page

2753)

Some idea of the problem of travel or shipment
of goods over considerable distances by use of this
disjointed series of railroad lines will readily be
obtained from the following account (taken from
the same article) of certain lines ont of Boston in
the direction of New York City.
“ The first section of what we shall denominate
the Atlantic RE. line,” says the author, “ extends
from Boston to Norwich in the State of Connecticut,
and also from the former city to Stonington in the
same State. The line of the Boston & Worcester
RR. runs through a beautiful though broken coun­
try, highly cultivated, although not remarkable for
its fertility, for the distance of 44 miles to the flour­
ishing inland town of Worcester. Here it meets
the Norwich RR., that extends a distance of 5S
miles through a picturesque and broken territory,
enlivened by pleasant farm houses, a very large
number of manufacturing villages, which are upon
its immediate borders, and by numerous waterfalls,
which, from the speed of the cars, seem to glance
in the sun in continuous succession, like some scene
of enchantment. At Norwich the line unites with
steamboat navigation, and furnishes a rapid con­
veyance to the city of New York. The other line
to which we have alluded as running from Boston
to Stonington combines like advantages, both on
account of the directness of the route to the steam­
boat navigation of Long Island Sound, and from
the fact that it passes through some of the most
flourishing towns of Massachusetts, including
Dedham and Roxbury, to the manufacturing capital
of Rhode Island, the city of Providence. Its length
to that city is 47 miles, and it furnishes a certain
and safe mode of travel and transportation from
Boston to New York, through Long Island Sound,
which, of course, is always open to navigation, even
during the winter. From Stonington a most con­
venient line of travel will be furnished by the Long
Island RR., 27 miles of which are now completed.
This track is laid out along the whole extent of that
island, and commencing at the South Ferry in
Brooklyn, will terminate at Greenport, upon the
shore of the Sound.”

Railroad Travel

Strange as it may sound to modern ears, the
railroads in 1S39 were subject to the same fears on
the part of the public as the airplane sometimes is
today. So much so that the author of the article
from which these citations have been taken felt it
necessary to give consideration to the safety of em­
ploying railroads as means of travel. “ The next
consideration which naturally comes before the
tiago, Cuba, and Puerto Cortes, Honduras, with two weeks mind in measuring the advantages of railroads, com­
exploring highlands of Guatemala all in the fare (26 days, pared with other means of transportation,” says
all expenses, $263 up). Ask about other services from New the author at one point, “ is their danger, contrasted
York, Philadelphia and New Orleans.
with other roads. To be driven along through
plains and valleys, sometimes within three inches
S lig h t ly h ig h e r W i n t e r f a r e s e ffe c t iv e D e c . 1 6
A p p l y a n y A u t h o r i z e d T ra v el A g e n t o r U n i t e d of jaggy points of rock, at the rate of 25 miles an
F r u i t C o m p a n y , P i e r 3 , N . R . , o r 6 3 2 F i f t h A v e . , hour (but more generally at the rate of 15 miles)
N . Y.
O f fi c e s a ls o i n C h ic a g o , N e w O r l e a n s , often verging near the borders of deep rivers or
P h ila d e lp h ia , B o s to n , a n d W a s h in g t o n , D . C .
steep ravines, by the power of strong engines, which,
if they should run off of their narrow track, would
be as unmanageable as the steed of Mazeppa, and
much more terrific in their struggles, is a matter,




{
•Continued on page 2762 )

149

ONE HUNDRED
—The Commercial & Financial Chronicle—Y EAR S OLD

2761

"W e are going straight

0

'N E might conclude, from hearing people
talk, that this country is built, that its opportunities
are gone, its resources exploited.
Not one word of that is true! U.G.I. believes, in its
particular field at least, that the job is far from finished.
Opportunities are limited only by fear and hesitation.
The future is bright for those who will not permit tem­
porary inequities of taxation or restriction, temporary
business nose-dives to blind their eyes to these facts: We
five in a land that is under-populated, under-developed,
a land that needs look to no other land for raw materials
or markets. We live under a system o f government
established by our forefathers on the basis of equalitv.
Only in America do the masses constitute the major
markets for luxuries as well as necessities. We live with
people who are going places.
U. G. I. is going straight ahead. It has an under­
taking— as binding as a written and sealed contract—
to reward its stockholders with reasonable earnings, its
customers with service, its employees with jobs, the
general public with the wide and far-flung benefits of
business well-managed, work well done. In a country
such as this, it is conservative to be progressive.

THE UNITED
COMPANY



GAS

IMPROVEMEN

Dedicated to Better Public Service Since

ONE HUNDRED The Commercial & Financial Chronicle Y EAR S OLD Nov. 4, 1939

2762

—

The forerunner of the present-day mail order houses
that so well supply the rural communities was the
peddler, whose visits, before and after the Civil War,
became an event in all rural communities.

A Century of Achievement
(iC o n t i n u e d

fro m

page

2760)

the danger of which is to be well weighed before
it is quietly submitted to; and in order to adjudge
the risk, we have only to compare it with that of
ordinary roads. The common roads, it is well
known, cannot be traveled without the chances of
accident, attended with injury. For example, the
common road is often rough, and filled with ob­
stacles; the carriage to which the horse is attached
may break down or be upset; or the buckles and
straps which confine him may give way and affright
the animal; or the carriage, placed high upon its
axle, may be overturned. On the other hand, the
railroad cars, which in England ordinarily travel
25 miles an hour, and in this country 16 miles, are,
in the first place, perhaps more dangerous from this
very momentum. The boiler may explode, the car
run off its track, or a mischievous boy may place
an obstacle which will obstruct the passage of the
cars, or remove one of the bars; the train may crash
against the points of rock that constitute the walls
of its tunnels, or rush off one of the steep embank­
ments which border it. Yet the engines, boiling
with ambition, and seemingly with rage, have no
latent passions like those of the frightened or mad­
dened horse; the track is a level track, easily to be
coursed by the naked eye, for a long distance, and
the engines are usually provided with large shovels,
which throw off from the path any obstacle which
might oppose its progress. Besides, the engine at
full speed can be stopped, at the distance of 200
yards; and even were the cars demolished bv con­
cussion. the train behind would, if it kept upon the
track, sustain only a temporary shock or delay.”
Transportation by water had of course made great
progress, but still left much to be desired. Extended
systems of canals had been constructed in the vari­
ous States, and the natural waterways were assidu­
ously plied with vessels many propelled by steam,
albeit by the relatively crude application of steam
power known and employed in that day. As to
trans-Atlantic travel the appearance of the first
issue of the “ Merchants’ Magazine” was contempo­
raneous with the beginning of the use of steam. In
an article devoted to the history and the then exist­
ing status of American steam navigation a writer in
the course of an article appearing in Hunt’s in 1841
at one point said:



—

“ Yet, notwithstanding the voyage of the boat of
Mr. Stevens around the coast, in 1807, and that of
the Savannah across the ocean, in 1817, the regular
and systematic navigation of the ocean was deemed,
at best, a doubtful experiment. Even scientific
mechanical philosophers, as late as the year 1838,
strove to demonstrate the entire impracticability of
the project. The crowning triumph of steam was
yet to be accomplished. On a vernal morning in the
month of April, the Sirius left a British port, and
was steered straight across the Atlantic, that steam
has contracted to the dimensions of a mill-pond.
Fifteen days afterwards, wreaths of curling smoke
were perceived moving along the sky above the Nar­
rows, and passing up the bay, were found to pro­
ceed from that steamer, bringing fresh news from
London. The Great Western, the Royal William,
the Liverpool, and the British Queen, followed close
upon its track. On the fourth of July, 1839, (a fit­
ting day), a contract was signed between Mr.
Samuel Cunard and the British Admiralty, for the
transit of letters from Liverpool to Halifax, and a
short time afterwards, the Unicorn, succeeded by
the Britannia, the Caledonia, the Acadia, and the
Columbia, sailed into the port of Boston, bringing
tidings that the ocean thenceforward was to be a
short mail-road. Whereupon, the Royal Steam Navi­
gation Company of Great Britain commenced the
hewing of the timbers for a line of steamships for
New Orleans, Mexico, and a part of the South Amer­
ican coast; and our American ship-builders, having
completed a steamship for his majesty the Emperor
of Russia, and another for the Spanish government,
are preparing to lay the keels of four steam-vessels,
each to be of two thousand tons burden, and only
eight hundred horse power, two hundred greater
than the President. Kindled by the enterprises of
other nations, the slow-miving French, in the cause
of internal improvement, began to bestir themselves,
and will soon have a line of steam-packets between
New York and Havre. Steam had conquered the
ocean. It was thenceforward to be a ferry; not ‘the
ancient and accustomed ferry’ of the respected Gov­
ernor Ogden, between Elizabethtown Point and New
York, but the modern and accustomed ferry between
New York and London!”
These then latest in steamships were, however,
obviously not of the modern variety as may well be
seen from the following note taken from Hunt’s
showing the time they consumed in crossing:

Passages of the Steam ]
Ships
“ We published in the ‘Merchants’ Magazine’ for
August, 1839, all the passages of the steam ships
( C o n tin u e d ,

on page

2764)

The “ Empire-Troy” was in 1850 the pride of the steam­
ship line plying between New York and the now famous
industrial up-State city.

Volume 149




ONE HUNDRED
—The Commercial & Financial Chronicle YE A R S OLD
—

Felicitations to tne
C m e ia a d F a c l C r n le
o mrc l n in n ia h o ic

On the Occasion of Its Hundredth
Anniversary of Accomplishment
Public Service Corporation o f New Jersey

2763

ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939

2764

—

—

PA SSA G E S O F T H E L IV E R P O O L
T o N ew Y ork

Sailed
F eb . 6
A pr. 20
June 13
A u g. 1
Sept. 21
N o v . 16

Alexander Graham Bell, seated, inventor of the tele­
phone, opens the first New York-to-Chicago line in
1892.

Arrived
Feb. 25
M ay 7
June 30
A u g. 18
O ct. 7
D e c. 5

T o L iv e r p o o lJ

Days
18H
16%
16 %
17
16
18%

Sailed
M ar. 9
M ay 18
July 6
A u g. 24
O ct. 19
D e c. 15

Arrived
M ar. 25
June 1
July 20
Sept. 8
N ov. 6

Days
16
14Ji
13 V,
a
14M
17J4

“ The Liverpool has 18 hours’ steaming farther to
go than either the Great Western or the British
Queen.
“ The passages to New York averaged 17 days and
four hours each. The longest was made in 18 days
and 12 hours, and the shortest in 16 days.
“ Those to Liverpool averaged 15 days and 16
hours. The shortest was made in 13 days and threequarters, and the longest in 17 days and 12 hours.
“ The fact of the matter is, however, that the vast
bulk of the transportation both of goods and pas­
sengers was still done by the sailing vessels. How
speedily they crossed the ocean may be seen from
the following table appearing in the first issue of
Hunt’s :
Navigation
L iv e r p o o l P a c k e t s — A C o m p a r a t i v e T a b l e o f t h e P a s s a g e s o f t h e D i f f e r e n t
S h ip s o f t h e S e v e r a l L in e s o f L i v e r p o o l P a c k e t s

O LD L IN E P A C K E T
O u tw a r d P assa ges

A Century of Achievement
( C o n tin u e d fr o m

page

2762)

Great Western, Liverpool, and Royal William, show­
ing the time of their departure from, and arrival at,
each port, beginning with April, 1838; we now give,
from Bennett’s ‘Herald’, all the passages of the
Great Western, British Queen, and Liverpool, for
the year 1839:
PASSAGES O F T H E G R E A T W E S T E R N
T o B r is t o l

T o N ew Y ork

Sailed
Jan. 28
M ar. 23
M ay IS
July 6
A ug. 24
O ct. 19

Arrived
Feb. 16
Apr. 14
M ay 31
July 22
Sept. 10
N ov. 2

Days
18
21%
13
15^
16H
14^

Sailed
Feb. 25
A pr. 22
June 13
A u g. 1
Sept. 21
N o v . 16

Arrived
M ar. 12
M ay 7
June 27
A ug. 13
O ct. 4
N o v . 30

Days
15
14^
12«
12M
13
13H

“ The passages from England average 16 days and
a half each, and the whole time occupied in making
six western passages was 99 days and a quarter.
The shortest was made in 13 days, and the longest
in 21 and a half.
“ The passages hence to Bristol averaged 13 days
and nine hours each. The longest was in 15 days,
and the shortest in 12 and a quarter. The six eastera passages were made in 80 days and 12 hours.
“ By two of the passages, passengers and des­
patches reached Paris, by the way of England, on
the 15th day after leaving New York. They also
arrived in London and Liverpool on the 13tli day.
PASSAGES O F T H E B R IT IS H Q U E EN
T o P ortsm ou th

T o N ew Y ork

Sailed
July 12
Sept. 3
N ov. 3

Arrived
July 27
S ept. 20
N ov . 23

Daus

ay*

17
20 M

Sailed
Aug. 1
O ct. 1
D ec. 2

Arrived
Aug. 14
O ct. 15
D ec. 25

Days
18%
13«
22%

“ The shortest passage from England was made in
11 days and 21 hours; the longest in 20 days and
nine hours. The shortest passage hence was per­
formed in 13 days and a half, and the longest in 22
and a half. If we calculate the time, however, when
she arrived off Portsmouth, the passage was made
in 21 days and 11 hours.
“ The western passage averaged 17 days and eight
hours each. Those made to the eastward, 16 days
and 11 hours.
“ On her first voyage she arrived here on the 27th
of July, discharged about 1,000 packages of goods,
besides baggage, reloaded cargo, took in 755 tons of
coal, stores for 113 passengers, and was ready for
sea on the 31st of the same month—four days’ work.



From 1st N o v . 1837 to 1st N o v . 1838
Sailed Arrived Days
England_________N o v . 1 N o v . 17
16
Orpheus_________ N o v . 16 D e c. 4
17
C a m b rid ge_____ D e c. 3 D e c. 22
19
O xford__________ D e c. 16 Jan. 4
19
N orth A m e rica ..J a n . 2 Jan. 27 25
27
Europe_____ ____ Jan. 16 Feb. 12
Colum bus______ F eb . 1 Feb. 26
25
South A m e rica ..F e b . 17 M ar. 7
18
England________ M ar. 3 M ar. 24
21
Orpheus________ M ar. 19 A p r. 9
21
C a m b rid ge_____ Apr.
2 A pr. 24
22
O xford__________A pr. 16 M ay 10
25
N orth A m e r ic a ..M a y 1 M a y 24
23
Europe_________ M a y 16 June 9
24
Colum bus______ June
2 June 20
18
South A m erica..Ju n e 16 July 7
21
England________ July
2 July 21
19
18
Orpheus________ July 19 A u g. 6
C a m b ridge_____ A ug.
1 A ug. 21
20
O xford_________ A u g. 20 Sept. 11
22
North A m erica..S ep t. 1 Sept. 27
26
Europe_________ Sept. 19 O ct. 15
26
C olum bus______ O ct.
1 O ct. 19
18
South A m e rica .-O ct. 20 N o v . 8
19

H o m ew a rd P assa ges

Sailed
England_______ D ec. 17
Orpheus_______ Jan. 2
C a m b rid g e____ Jan. 16
O xlord ________ .Feb. 1
N orth America..Feb. 16
Europe________ .M a r. 1
Colum bus_____ .M a r. 18
South A m erica.A pr. 3
England____ __ .A pr. 20
O rpheus.. . . . .M a y 2
C a m b rid ge___ .M a y 16
O xford________ June 2
N orth America..June 16
Europe________ .July 2
Colum bus_____ .July 19
South A m erica.A ug. 4
E n g la n d .. ___ -Aug. 20
Orpheus______ .Sept. 7
C a m b rid g e___ .Sept. 19
O xford________ .O ct. 8
N orth America..O ct. 22
Europe_____
. N o v . 12
C olum bus_____ .N o v . 20
South America .D e c. 8

Arrived Days
Jan. 25
39
M a r. 8
65
M ar. 5
48
M a r. 9
36
M ar. 19
31
Apr. 1
31
A p r. 16
29
M ay 2
29
M ay 11
20
M ay 30
28
26
June 11
32
July 4
39
July 25
A ug. 11
40
32
A ug. 20
32
Sept. 5
S e p t.22
33
O ct. 14
37
N ov. 1
43
N o v . 10
33
43
D e c. 4
47
D e c. 29
39
D e c. 29
32
Jan. 9

“Average passage out, a fraction over 21 days.
The shortest passage out is by the England, in 16
days; and the longest by the Europe, in 27 days.
“Average homeward time, 36 days. The shortest
passage homeward is by the England, in 20 days;
and the longest by the Orpheus, in 65 days. The
shortest average of the three voyages is by the Eng­
land, both out and home.” (Similar data for other
lines follow in the original, but we omit them here,
since those given seem to serve the purpose in hand.)

Manufacturing in 1839
More effectively than statistical tables the follow­
ing extracted from an article appearing in Hunt’s
(1811) five years after the magazine was begun
should show the general character and state of ad­
vancement of American industry in those early
days:
“ The rapid improvement of the arts may help to
account for the reduction of price, as to many
articles of manufacture, and especially in some that
are usually ranked among the necessaries of life.
Shirtings, for instance, which cost, 30 years ago,
62 cents per yard, is now bought for 11 or 12 cents,
and equally as good.
“Hosiery is now made in the United States with
astonishing rapidity, by the aid of the power weav­
ing loom, an American invention, which has not yet
been introduced into England. While; there, it is a
full day’s work to knit by hand two pairs of
drawers, a girl, here, at $2.50 per week, will make,
by the power-loom, 20 pairs in the same time. A
(iC o n t i n u e d

on page

2766)

ONE HUNDRED
—The Commercial & Financial Chronicle Y E A R S OLD

Volume 149

2765

—

Pacific Gas and Electric Company
SAN FRANCISCO, CALIFORNIA

The properties of the Company and its subsidiaries constitute an interconnected system,
located entirely within the State of California and operated by a single management. For more
than twenty-seven years operations have been subject to regulation by the California State Rail­
road Commission.
The Company operates electric generating plants having an installed capacity of 1,676,902
horsepower and is one of the largest producers and distributors of electricity in the United States.
It also ranks among the major distributors of natural gas in the country. On June 30, 1939,
electric customers numbered 877,555, gas customers 614,295 and water and steam customers 12,112.
In the year ended June 30, 1939, 70.7% of operating revenues were derived from sales of electric
energy, 28.1% from sales of gas, and 1.2% from minor activities. The well diversified character
of the Company’s business tends to stabilize earnings and also to permit of economical operation.

SUMMARY OF CONSOLIDATED INCOME AND DIVIDENDS ON CAPITAL STOCKS
12 M o n t h s t o
J u n e 3 0 , 1939

12 M o n t h s t o
J u n e 30, 1938

Gross Revenue, including Miscellaneous Income .
.
.
.
.
.
$104,821,816
Operating Expenses, Taxes (except Federal income taxes) and Provision for
Depreciation,Insurance,Casualties,Uncollectible Accounts and Pensions 62,773,371

$101,502,327

Gross Income
.
.
.
.
.
.
.
.
.
.
Bond and Other Interest, Discount and Other Income Deductions

$ 42,048,445
12,305,541

$ 39,961,920
12,168,290

$ 29,742,904
4,633,442

$ 27,793,630
3,786,735

Net Income before Provision for Federal Income Tax
Provision for Federal Income Tax .
.
.
.
.
.
.

.

61,540,407

.

.

Net Income to Surplus
.
.
.
.
.
.
.
.
Dividends of Subsidiaries on Capital Stocks held by Public, etc.

.

$ 25,109,462
83,138

$ 24,006,895
245,868

Remainder— Applicable to Pacific Gas and Electric Company
Dividends on Preferred Stock
.
.
.
.
.
.
.
.
.

$ 25,026,324
7,809,159

$ 23,761,027
7,708,492

Remainder— Applicable to Common Stock
.
.
.
.
.
Number of Full Shares of Common Stock outstanding at end of period
Earned per Share of Common Stock
.
.
.
.
.
.
.
.

$ 17,217,165
6,261,270
$2.74

$ 16,052,535
6,261,270
$2.56

R E C O R D OF R E C E N T
G ross
O p e r a t in g
R evenue

Y ear E n ded
D e c . 31

1931
1932
1933
1934
1935
1936
1937
1938

.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.

.
.
.
.
.
.
.
.

San Francisco
San Francisco
J o h n P . C o g h l a n , San Francisco
W . W . C r o c k e k , San Francisco
P . M . D o w n i n g , San Francisco
James B . B lack ,

A l l e n L . C h ic k e b in g ,




S a le s o f
E le c t r ic ity
K .W . H .

S a le s o f
G as
C u b ic F e e t

N um ber o f
S to c k h o ld e r *

3,351,310,000
2,932,003,000
2,940,605,000
3,269,116,000
3,303,312,000
3,696,378,000
3,935,803,000
3,906,866,000

. $ 87,630,661
.
85,058,617
.
84,596,084
87,555,480
92,084,934
.
95,333,336
. 100,443,116
. 101,424,595
BOARD

GROWTH

29,431,022,000
34,594,302,000
39,802,857,000
41,074,683,000
48,686,774,000
53,439,510,000
59,531,331,000
62,477,013,000

84,705
95,483
96,824
96,225
92,670
90,263
92,704
95,985

OF D I R E C T O R S

New York,
San Francisco
H e r b e r t C F r e e m a n , New York
N o r m a n B . L i v e r m o r e , San Francisco
C h a s . K . M c I n t o s h , San Francisco
James F . F ogarty,

D . H . F oote,

San Francisco
San Francisco
H e n r y D . N i c h o l s , San Francisco
S i l a s H . P a l m e r , San Francisco
A . E m o r y W i s h o n , San Francisco
J ohn D . M cK e e ,

C . O . G . M il l e r ,

C o p i e s o f A n n u a l R e p o r t m a y h e o b ta in e d , o n a p p l i c a t i o n to D . H . F o o t e , V i c e - P r e s i d e n t a n d S e c r e t a r y - T r e a s u r e r ,
Z lt b M a r k e t S t r e e t , S a n F r a n c i s c o , C a l i f o r n i a

ONE HUNDRED The Commercial & F i n a n c i a l Chronicle—YE A R S OLD

2766

—

A Century of Achievement
(.C o n t in u e d , f r o m

page

2764)

piece, 28 inches in width, and one inch long, can be
knit in one minute, thus reducing the expense of
manufacturing this article one-tenth of the former
method by the hand-looms. The importance of this
improvement may be estimated from the fact that
the quantity of hosiery used in the United States is
valued at $2,500,000; and the stockings, woven shirts
and drawers, made in this country, at $500,000.
Hooks and Eyes is another illustration of the
progress of inventive industry. Thirty years ago,
the price was $1.50 per gross; now, the same quan­
tity may be purchased, from 15 to 20 cents. At one
establishment in New Britain, Connecticut, 80,000
to 100,000 pairs per day are made and plated by a
galvanic battery, on the cold silver process. The
value of this article, consumed annually in the
United States, is estimated at $750,000.
“Horseshoes furnishes a similar proof of the bear­
ing of the progress of inventions. An improved
kind of horseshoes, made at Troy, New York, for
some time past, is now sold at the price of only five
cents per pound, ready prepared, to be used in shoe­
ing the animal. At a factory, recently erected, 50
tons of these are now turned out, per day; and, it
is believed, they can be made and sent to Europe
at as good a profit as is derived from American
clocks, which have handsomely remunerated the
exporter.
“ Leather—The improvement in the manufacture
and making up this article, has also greatly reduced
the price of shoes. By further inventions to render
leather water-proof, likewise, much has been done
to protect the health, and promote economy. ‘Those
who have not turned their attention to this subject,
may be surprised to learn that leather, made water­
proof in the best manner, will last at least one-third
longer than other kinds.’ Allowing, therefore, $3
per head for each person in the United States, for

N o v . 4, 1939

shoes, the cost of the whole article in the country
would be $50,000,000, one-third of which, sold, would
be over $16,000,000.
“Sugar—By a process of sugar-making, invented
by Professor Mapes, at the sugar-works of Messrs.
Tyler and Mapes, 15,000 to 20,000 pounds of sugar
are manufactured per day, from common West India
molasses, and generally of a quality superior to that
made from the cane in Louisiana. Molasses, which
has become sour, is often used for this purpose with
good effect.
“Pins—The progress made in the United States,
in the manufacture of this article of universal use,
within a few years, is truly astonishing. A manu­
factory, near Derby, Connecticut, has a contrivance
for sticking pins in paper which is quite marvellous.
It takes, in England, 60 females to stick in one day,
by sunlight, 90 packs, consisting of 302,460 pins.
The same operation is performed here, in the same
time, by one woman. Her sole occupation is to pour
them, a gallon at a time, into a hopper, from whence
they come out all neatly arranged upon their several
papers. The mechanism, by which the labor of 59
persons is daily saved, yet remains a mystery to all
but the inventor; and no person, but the single
woman who attends to it, is, upon any pretext what­
ever, allowed to enter the room where it operates.”
Morse invented the magnetic telegraph in 1832,
but it was not until 1844 that it was publicly oper­
ated, and it was not until 1846 that Hunt’s was able
to present the following table of its extension in the
United States.
E XT E N SIO N OF THE M A G N E TIC TELEGRAPH
From New York to New Haven, Hartford, Springfield and Boston___
From New York to Albany, Utica, Auburn, Syracuse, Rochester,
Lockport and Buffalo____________________________________________
From New York to Philadelphia, Baltimore and Washington_______
From Philadelphia to Harrisburg___________________________________
From Boston to Lowell__________
From Boston to Portland (110 miles— half finished)_________________
From Ithaca to Auburn____________________________________________
From Troy to Saratoga___ _________________

M ile s

265
507
240
105
20
55
40
31

Two decades and more were to pass before the
first Transatlantic cable became a reality.
(C o n tin u e d o n p a g e

2768)

One of the greatest events in the development of American commerce and transportation was the union of
the Union Pacific and the Central Pacific railroads, which took place May 10, 1869. Leland Stanford and
others who forever will be remembered in the development of transportation, took part in the ceremony of
the driving of the golden spike which gave a clear road to the Iron Horse from the Atlantic to the Pacific.




Volume 149

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD
—

—

2767

POWER
F o r th e F A R M

Electrically !
jyTILLIO N S of visitors to the New York World’s Fair saw the
model electrified farm erected by the electric utilities. This
exhibit typified the work that has been done by the electrical industry
to bring electricity to the farms.
To visit all the 145,450 rural customers served by the affiliated com­
panies in the American Gas and Electric system would make it
necessary to traverse the 16,031 miles of rural distribution lines that
we have constructed. For many years the line crews of the affiliated
companies have been busily engaged in extending service to these
rural customers. Rural folks receive a service equal to that enjoyed
by city dwellers. The rates are the same as those paid by customers
in the largest communities. The only difference is that the farmer
agrees to take a minimum amount of electricity. Our city customers
will commend this policy of low rates for farmers, realizing that an
efficient, prosperous countryside is the surest guarantee of busy
industry and prosperity in the cities.

AMERICAN GAS & ELECTRIC SERVICE CORP.




Principal Affiliates
Appalachian Electric Power
Company
Atlantic City Electric Company
Indiana & Michigan Electric
Company
Indiana General Service Company

Kentucky and West Virginia
Power Company, Inc.
Kingsport Utilities, Incorporated
The Ohio Power Company
The Scranton Electric Company
Wheeling Electric Company

ONE HUNDRED
—The Commercial & Financial Chronicle— Y EAR S OLD

2768

A Century of Achievement
(C o n tin u e d fr o m

page

For

2766)

STATE M E N T OF AM OU N T OF STOCKS AN D BONDS ISSUED AND
AU THORIZED TO BE ISSUED B Y THE SEVERAL STATES,
G IV IN G Y E A R IN W H ICH EACH STATE COM M EN CED
ISSUING STOCK, THE OBJECT FOR W H ICH ISSUED AND
THE RATE OF IN TEREST
W h a t O b je c t I s s u e d —

A m o u n t fo r
E a c h O b je c t

T otal------------------------------------------------------------

$554,976

Total------------------------------------------------------------

T otal________________________
P e n n s y lv a n ia (1 8 2 1 )—

$4,200,000

5, 5J£, 6

6
5
5
43^, 5
5
5
5

$18,262,406
$16,576,527
4,964,484
2,595,992
3,166,787

Total________________

5
5
5
5

$27,306,790

M a r y l a n d (1 8 2 4 )—

Medical University____
Penitentiary__________
Tobacco inspection____
For railroads__________
For canals____________
Washington Monument
Expense of riots_______

$30,000
97,947
78,000
5,500,000
5,700,000
10,000
77,033

5
5
5
5, 6
5, 6
5
5

$11,492,980
V i r g i n i a (1 8 2 0 )—

For
For
For
For
For

canals and river navigation.
railroads__________________
turnpikes__________________
revolutionary debt________
war debt of 1814__________
Total_____________________

S o u t h C a r o l i n a (1820) —

Public improvements___________
T o Mrs. Randolph______________
Cincinnati & Charleston Railroad.
To rebuild Charleston__________
Revolutionary debt_____________
Total______________________
A l a b a m a (1 8 2 3 )—

3,835,3501 5,
2,128,900 5,
354,800 5,
24,039
319,000

5 'A ,
5 A .
5 A ,

6
7

.-$8,662,089
$1,550,000
10,000
2.000,000
2,000,000
193,770

5, 6
6
5
5
3

$5,753,770

For banking________
For railroads_______

$7,800,000
3,000,000

Total__________

5
5

$10,800,000

L o u i s i a n a (1 8 2 4 )—

For banking_____________
For railroads_____________
New Orleans Draining Co.
Heirs of Jefferson________
Charity Hospital_________
State House_____________

$22,950,000
500,000
50,000
10,000
125,000
100,000

Total________________

5
6
5
6
5
5

$23,735,000

T e n n e s s e e (1 8 3 3 )—

$3,000,000
118,166
3,730,000
300,000

For banking___________
For turnpikes__________
Railroads and turnpikes.
Improving rivers______

5, 6
5, 6
5
5

$7,148,166

T otal_____________
K e n t u c k y (1 8 3 4 )—

For banking__________________
Improving rivers by locks, &c_.
Turnpike and M ac Adam roads
Railroads_____________________
Total____________________
O h i o (1 8 2 5 )—

$2,000,000
2,169,000
2,400,000
350,000

5
5
5
5

$7,369,000

For canals______

$6,101,000

T otal______

$6,101,000

For banking______________
For canals________________
For railroads_____________
M e Adam turnpike-----------River navigation--------------

$1,390,000
6,700,000
2,600,000
1,150,000
50,000

Total________________

6

5
5
5
5
5

$11,800,000

5

$4,200,000

$548,000
11,968,674
800,000
3,787,700
10,000
586,532
561,500

For canals_______________
For railroads_____________
For turnpikes and bridges.
Miscellaneous____________

I n d i a n a (1 8 3 2 )—

$554,976

Loans to railroads_______________________________

For canals________________________
For canals________________________
Loan to Hudson & Delaware Canal.
Loans to railroads_________________
To river navigation_______________
General funded debt______________
Astor stock_______________________

R a te
P er Cent

M a in e (1 8 3 0 )—

Ins. hospitals, primary schools, bounty on wheat
and general expenditures____________________
M a s s a c h u s e t t s (1 8 3 7 )—

R a le
P er Cent

N e w Y o r k (1 8 2 3 )—

The extent to which the various States had in­
debted themselves and the variety of purposes for
which these obligations were incurred, matters
which were of considerable concern during the first
few years of the life of the “ Merchants’ Magazine” ,
may be observed from the following, which has been
excerpted from an article, “ Debts of the Several
States” , appearing in the second issue of “ Hunt’s” :
“ In May, 1938, after the passage of the General
Banking law, authorizing the Comptroller to issue
circulating bank notes, on a pledge of the evidences
of public debt of the several States, Mr. Flagg sent
a circular to the financial officer of each State,
soliciting information in regard to the amount of
stock created, the rate of interest and when payable,
the mode of transferring the stock, whether specific
funds were pledged for the payment of interest, and
whether the interest in all cases was paid by the
State. Full answers were received to these in­
quiries, except in two or three cases. And the
amount of stock actually issued, previous to the
time of giving the information (say June, 1838),
was stated in the Comptroller’s annual report of
1839, page 89, at $23,703,750.11.
“ The following tables show the total amount of
stock issued, and authorized to be issued, by each
of the 18 States which have resorted to this mode
of raising money. Where the returns from the
financial officer did not afford all the information
which was desired, the State laws have been ex­
amined to ascertain the extent of the authorized
loans. The operations of many of the States have
been so extensive and varied that it is not an easy
matter to get at the precise amount of stock issued
and authorized to be issued. It is probable, how­
ever, that the aggregate amount of stock authorized
by all the States is even greater than the amount
stated in the tables” :

For

W h a t O b je c t I s s u e d —

N ov . 4, 1939

A m o u n t fo r
E a c h O b je c t

I l l i n o i s (1 8 3 1 )—

banking______________
railroads_____________
canals________________
payment of State debt
river navigation, &c_ _

$3,000,000
7,400,000
500,000
100,000
600,000

Total________________

For
For
For
For
For

$11,600,000

M is s o u r i (1 8 3 7 )—

For banking________

$2,500,000

T otal__________

6
6
6
6
6

$2,500,000

M is s is s ip p i (1831)-—

$7,000,000

For banking__________

5

5

$7,000,000

Total_____________
A r k a n s a s (1 8 3 6 )—

For banking_________

$3,000,000

Total___________

$3,000,000

5

M i c h i g a n (1 8 3 6 )— •

Controversy with Ohio___________________________
Internal improvements___________________________
Loaned to railroads_______________________________
State Penitentiary________________________________
University_______________________________________

A meeting of historical significance. Cyrus Field,
standing second from right, at a meeting of the men
who financed him in the laying of the Atlantic Cable,
including Moses Taylor, President of the City Bank,
Peter Cooper, David Dudley Field, Samuel F. B. Morse,
who painted this picture, Marshall O. Roberts, Wilson
G. Hunt, and others.




$100,000
5,000,000
120,000
20,000
100,000

T otal________________________________________

$5,340,000

Whole amount_______________________________ $170,806,179
I f to the above be added the amount deposited by
the United States in the treasuries o f the several
States for safe keeping_________________________ 28,101,644
It makes the aggregate debt o f all the States,
existing and authorized______________________ $198,907,824
(Continued on page 2270 )

6
6

6
6
6

Volume 149

ONE HUNDRED The Commercial & Financial Chronicle Y EAR S OLD
—

—

The story of modern dairy industry reads like a busi­
ness romance. Through the wholehearted cooperation
of the great dairy industry and the millions of dairy
farmers, there have been achieved:
» • a system of processing and distributing dairy products
which is acknowledged by all as the best in the world.
> • a consistent improvement in the purity and goodness
of milk and milk products.
» • an effective sales promotion program which by main­
taining milk and milk product consumption has con­
tributed to the health of the nation.
H E R E ’S T H E

accomplishments, milk has proved to
be a more stable source of farm
income.

RECORD:

In the aggregate, consumption of milk
and milk products, per person, has
shown a larger increase in recent
years than any other major food—
with one exception.
Today milk and milk products form
more than one-quarter of all the food
consumed by the nation's 30 million
families.
Since 1930, milk production has
been maintained at relatively higher
levels than other major farm com­
modities. Despite that increased
volume, the prices farmers have re­
ceived for milk have been compara­
tively higher than those they have
averaged for other major farm com­
modities . . . and through these two

★

★

★

These achievements are a tribute
to the efficiency with which milk
and dairy product companies have
processed and merchandised their
products.
National Dairy Products Corpora­
tion is proud to have shared the
leadership in this forward march of
the dairy industry. We pledge our
efforts to seek still greater consump­
tion of milk and milk products . . . in
order to increase farm income, which
is so important in our economic sys­
tem . . . and in order to build a
sturdier, healthier people, which is
the real wealth of our nation.

NATIONAL DAIRY PRODUCTS CORP.
75 E. 4 5 t h STREET
N EW
11939




Y O R K

C IT Y

2769

ONE HUNDRED—The Commercial & Financial Chronicle—YEARS OLD Nov. 4, 1939

2770

One of the early railroad trains passing one of the
buildings of the Mechanics Bank in New York.

A Century of Achievement
(C o n tin u e d fr o m

page

2768)

A cro ss T h re e D ecad es
It was into such a world that Freeman Hunt in
July, 1839, launched his “Merchants’ Magazine.”
About two years had elapsed since the “ Panic of
1837,” with its suspension of specie payments, and
all the rest. The fiscal position of the Federal Gov­
ernment was an unenviable one. Since the main
source of revenue at that time was customs receipts,
the tariff question was already to the fore, and was
destined to be debated heatedly until 1842, when a
distinctly protective tariff was enacted as a result
of the support the protectionists were able to mar­
shal in the name of the needs of the Treasury. Pro­
posals for the establishment of a new National bank
to take the place of the one Jackson had succeeded
in destroying, the so-called “ independent Treasury”
system, fears of repudiation on the part of the
States of some of their over-extended debt, Treas­
ury borrowing, and the various developments which
gradually through the few years immediately subse­
quent to 1839 restored the country to a state of
prosperity and progress were the main topics of the
day. To all such questions as these, as well as to
the ordinary course of business events from month
to month the early issues of “ Hunt’s” were largely
devoted. Articles obviously the result of careful
inquiry dealing with all manner of subjects of con­
cern to the business man in almost every branch
featured the magazine from the beginning. Labori­
ously compiled tabulations appear bringing together
vast amounts of information not otherwise avail­
able to the general public. Reports on the course of
industry, trade, agriculture and finance begin with
the first issue. Banking, both as to its then exist­
ing status, and as to the nature of its proper func­
tions and practice, early received special attention.
Foreign trade with all parts of the world was a
source of great pride to the editor. Thus from the
first the “ Merchants’ Magazine” became a store­
house of information and enlightenment, as it has
remained today a source book for the economic
historian.
It was not very long after the “ Merchants’ Maga­
zine” was founded that prosperity was fully re­
stored, and a “ free trade” tariff enacted in 1846,
followed by still further reductions in duties in
1857. The Mexican War intervened, but was not of
long duration and did not interrupt the upward




course of general business. “ The period from 1846
to 1857,” says Davis Rich Dewey, financial historian
of the United States, “ was one of great industrial
prosperity. Besides the war with Mexico, with its
abnormal expenditures, business and public finance
were affected by the discovery of gold in California,
by the revolutionary disturbances on the Continent,
by the famine in Ireland, and by the extension of
railroads in the West. In 1845 the number of immi­
grants to this country was 114,000; in 1947, 225,000;
and in each of the five years after 1849 it was more
than 350,000. More immigrants, in fact, came be­
tween 1845 and 1855 than in the preceding 25 years.
The statistics of railroad construction also tell a
wonderful story; in 1846 there were about 5,000
miles in operation; but after 1848 the annual gain
in construction was over 1,000 miles until we come
to the war period of 1861. The famine in Ireland
not only sent out thousands of laborers, it also cre­
ated a great demand for American wheat and, of
course, increased our purchasing power. An im­
portant change was also made in commercial con­
ditions by the reduction and abolition of import
duties in England which began in 1842. With the
removal of these duties and the rapid extension of
manufacturing industries in England there was a
great increase in exports (principally cotton and
food products) from the United States. The ad­
dition of the large territory ceded by Mexico in­
creased importations and hence the revenue, and the
extraordinary development in California had a
stimulating influence upon the whole Nation. The
country possessed resources only partially devel­
oped, yet open to ready conquest through the appli­
cation of railways and new machinery. It was in­
deed, as Secretary Walker with glowing optimism
repeatedly affirmed in his annual reports, ‘a new
commercial era’.”

Thirty-seven Volumes
It was in early March, 1858, that Freeman Hunt
died. Upon the occasion of his death the magazine
that he had founded and developed undertook to
give an accounting of its labors. The history of the
first two decades of the “ Merchants’ Magagine” are
here given more thoroughly and more authorita­
tively than any mere historian could hope to do.
We accordingly reproduce the larger part of it
herewith:
“ The 37 volumes of the work show at a glance
how rapidly its scope, tolerably broad at the start,
has widened with growing experience, and with the
growth of the Nation. No narrow spirit ever pre­
sided over its pages; nor is there wanting another
quality, scarcely less important than clear insight,
a wise plan, or valuable matter; for without a care­
ful arrangement and classification of subjects, a
work of this kind loses half its value, and is the
more confusing from the variety and richness of
its material. But by means of a rigid classification
the series of the ‘Merchants’ Magazine’ is made to
present, with something of the method of an encyclo­
pedia, in leading articles and under appropriate
heads, Commercial History, Doctrine, and Opinion,
Mercantile Law, the monthly movement of Trade
and Finance, Marine Regulations, the Statistics of
Railroads, Canals, and Population, Banking and
Currency; in short, the trade of the country and
the age, discussed in its theory, developed in prae(C o n tin u e d o n p a g e

2772)

Volume 149

ONE HUN DRED—The Commercial < Financial Chronicle— YEARS OLD
?

The

General Foods fa m ily

2771

o f products

reports to its rea l boss:

the American Family
J eR APS you don’t know us by our
T H
family name—General Foods.
But you undoubtedly do know some
of the products that make up our family.
Maybe you had Post Toasties and Max­
well House Coffee for breakfast, this
morning. Maybe you had a Birds Eye
dinner, and a cake made with Swans
Down Cake Flour, last night.
Anyway, our success depends upon
you. We can continue to progress only
if you continue to buy our products.
We’d like you to know more about us.

a pound. Today it costs you about 38<t a
pound.

Nor is General Foods resting on its
oars. In its laboratories, researchers are
working to find new ways of improving
General Foods products—new ways to
make them still easier to use—new ways
to help you save more food-dollars in
the family budget.
Each year our Consumer Service sup­
plies millions of housewives with
recipes.
W h a t W e ’re Doing fo r O u r Em ployes

W h a t W e ’re Doing fo r th e Consum er

It is our policy in our plants and offices
to pay wages as good as, or better than,
those prevailing for similar work under
similar conditions in communities in
which we operate. We have set up vari­
ous plans to help our employes. For in­
stance, our co-operative retirement plan
helps protect them against economic
dependence in their old age. Special
retirement allowances do the same for
those too old to be eligible for this plan.
Group life insurance gives protection
to an employe’s dependents, in case he
dies. A benefit plan gives protection
against loss of income during accident
and sickness. A termination allowance
plan helps tide employes and their
families over, when employment is dis­
continued. And avacation plan provides
rest and recreation—with pay.
Since 1932 the number of our em­
ployes has increased 54%.

Since 1929, nearly every product of
General Foods has been improved in
some way: For instance, you now pre­
pare a Jell-O dessert in half the time it
used to take; Minute Tapioca cooks in
five minutes instead of fifteen.
And while quality was going up, our
prices were coming down. For example,
Sanka Coffee, when it joined the General
Foods family in 1928, was priced at $1

Every third retail store in this country
sells food products. And nearly all of
these food stores—a total of approxi­
mately 500,000—sell General Foods
products.
We believe these retailers are entitled
to a profit, and we have tried hard
to help them. We supply them with

This is W h a t W e A re

General Foods is a family of food prod­
ucts. Most members of the G.F. family,
like Log Cabin Syrup, Postum, and
Grape-Nuts, have been household
friends for more than a generation.
These products were banded together
into General Foods because the busi­
nesses that produced them felt that in
such union there was strength for the
workers who made the products, for the
people who had invested in them, and,
most of all, for you, the consumer. For
these businesses knew that if, by getting
together, they could conduct better re­
search and effect economies in produc­
ing, selling, and management, they in
turn could give you better values for
your money. Let’s see how it has worked
out.

W h a t W e ’re Doing fo r th e R etailer

quality products which have consumer
acceptance, and we continuously sup­
port these products with vigorous ad­
vertising and other merchandising
helps. Instead of selling just one prod­
uct, nearly every one of our salesmen
sells our entire line and covers a small
territory thoroughly. In this way, we
save the dealer a lot of time. And be­
cause our salesmen are better-trained,
the dealer gets more help from them.
He gets ideas on displaying and pro­
moting his goods, and on being the
kind of merchant who can serve you
better.
W h a t W e ’re Doing fo r th e Investor

General Foods is literally owned by the
public.

Today, the company has 67,894 stock­
holders, which means that, counting
their families, some 270,000 persons
share directly in General Foods divi­
dends.
Since its formation, General Foods
has paid 71 consecutive dividends. On
an average, 80% of its annual net profits
has been paid as dividends; the re­
mainder has been used principally for
expansion.
W h a t W e H ope to Do in th e Future

We want the farmers from whom we
buy to get a fair price for their produce.
We want the people who work for us
to get a good wage and considerate
treatment. We want the grocer to make
a profit from handling our goods. We
want the investors, who have entrusted
their money to us, to get a decent return
for their faith in us.
And finally, we want to give you, the
American Consumer, at the lowest pos­
sible price, the best food products that
can be produced.
C o p y r ig h t , 1939, G e n e r a l F o o d s C o r p .

General Foods manufactures
and sells (l) many products
whi ch consumers buy
through retail stores; (2)
many products which are
consumed in restaurants,
hotels, hospitals, and other
institutions; and (3) many
products which are sold in
bulk to other manufacturers.
Among the General Foods
products which consumers
buy in retail stores are the
following:




Bluepoint O ysters
Calumet Ba k in g Powder
Certo
D ia m o n d Crystal Salt
D-Z erta
4 o-Fa t h o m Fish
Fr anklin Baker s Co co n u t
G rape-N uts
G rape-N uts Flakes
H uskies
I n st a n t Postum
Jell-O

Jell-O Freezing M ix
Jell-O I ce Cream Powder
Jell-O Puddings
K affee H ag
La France
Log Cabin Syrup
M axwell h ouse Coffee
M inute T apioca
p o s t -O
Post s 4 o % Br an Flakes
Post s W hole Br an
Shreds

Post T oasties
Cereal
Sa n k a Coffee
Sa t in a
Seafresh Fish
Sealshipt O ysters
SURE-jELL
Sw ans D o w n Cake Flour
W alter Baker s Chocolate
W alter Baker s Chocolate
Bars
W alter Baker s Co coa
po st u m

BIRDS EYE FROSTED FOODS—fruits—vegetables—meats—poultry—sea foods

"

ONE HUNDRED—The Commercial & Financial Chronicle—Y EAR S OLD

2772

A Century of Achievement
(C o n t i n u e d ,

fro m

page

2770)

tice, and journalized into books of lasting useful­
ness for the library shelf and counting-house desk.
“ The rich field of Commercial Literature, in
which Mr. Hunt industriously worked, never wore
a more attractive aspect, never promised richer
results, than at the moment of his leaving it.
“ Since the ‘Merchants’ Magazine’ was established,
27 years ago, the population of the United States
has increased from 17,000,000 to 28,000,000, in
round numbers; its territory from 2,000,000 to
3,000,000 square miles; the coinage from $60,000,000
to nearly $600,000,000; the tonnage from 2,000,000
to 5,000,000 tons, making our mercantile marine the
largest in the world; ocean steam navigation, dur­
ing this period, has come into existence; the electric
telegraph has come into existence; the entire terri­
tory of the Union has been brought under organized
State or territorial government.; a reciprocal free
trade with the Canadas has been established; Eng­
land has proclaimed freedom of trade and naviga­
tion, and the United States has become for the first
time a regular grain-exporting Nation; some 60
ocean steam companies, not one of which, that we
are aware, existed 20 years ago, employing about
350 steamers, have been established in Europe and
America; California and Australian gold has built
up two great communities of our race on the Pacific
and at the Antipodes; and railroad enterprise has,
in this country, done in 20 years the work of 100.
Indeed, the growth of trade has been the con­
trolling movement of the world in the present gen­
eration, which all influences in politics and science
have united to push forward. Japan expeditions,
African explorations, gold discoveries, Chinese
wars, all have trade for their keynote. Science and
invention, which, until our day, devoted their most
brilliant discoveries and ingenious contrivances to
increasing the productiveness of industry, have done
more within the last 30 years than in all the cen­
turies which went before, to multiply means of com­
munication and transportation, facilities not for
production, but for the exchange of products; in
short, for the development, on the grandest scale,
of trade and commerce, by land and water, domestic
and foreign. The facts and figures we have briefly
noticed show plainly enough that the United States,
one of the first among producing nations, and cer­
tainly the greatest of consumers, has felt the fullest
force of this commercial movement. And the
growth of our trade is not more striking than the
new directions it has taken, and the vehicles it
employs. Exports to the East go W est; the
morning newspaper reports in New York news by
telegraph of the arrival at New Olerans the day
before of a steamer from Havana, bringing news of
the arrival there of a steamer from Aspinwall, bring­
ing news of the arrival at Panama of a steamer
which left San Francisco with $2,000,000 in gold
two weeks before. Such a paragraph in the first,
or in the one hundred and first, number of ‘Hunt’s
Merchants’ Magazine’ would have been simply unin­
telligible. Where was Aspinwall? Where was the
gold? Where was ocean steam navigation, or the
electric telegraph, 20 years ago? Freight cars will
soon be fetching and carrying the goods of England
and China across this continent on a Pacific track,
and railroads bid fair to reassert, in our day, for




N ov.

4,

1939

land traffic, the importance which belonged to it in
early times, when hardly a tytlie of the carrying
of the world was done in ships.

Broad Policies
“ Nor has there been material growth alone.
Commerce has other and higher relations, which the
readers of ‘Hunt’s Merchants’ Magazine’ need not
be told—have never been lost sight of in these pages.
Never have the relations of trade to Morality and
Religion, Literature, Science, and Public Economy
been so fully recognized as of late years. The moral
responsibilities of the mercantile calling have be­
come the frequent theme of the press, the pulpit,
and of public addresses. Poetry sees in the locomo­
tive and telegraph realities transcending fiction.
The most popular novel of the day in Germany, of
which there are two English translations, is a story
of commercial life. It has come to be fully under­
stood that literature, which should reflect life, must
be defective indeed if trade, which, on a larger or
lesser scale involves the interests of all, is lost
sight of. The censuses and annual reports of trade
published by the leading commercial nations were
never so full as now of material of the highest pub­
lic interest, only requiring to be popularized and
made accessible in the pages of a ‘Merchants’ Maga­
zine’. The old question, which yet is ever new, of
Protection and Free Trade, which is now in a
position to be discussed with more fairness and less
passion than ever before; the relations of Labor and
Capital; our Public Land Policy; the Factory Sys­
tem ; the Condition of Seamen; Banking and Finan­
cial Reform, and the lessons of times of crisis; the
questions of a National Paper Currency; the Credit
System and the Legal Sactions and Remedies for
debt; the law of Insolvency and Bankruptcy, and
the system of Assignments for the benefit of Credi­
tors in its bearings upon trade; Stock Companies
and Corporations, and the law of Stock Transfers,
with reference to the protection of shareholders
against fraud; Railroad, Steamship and Telegraph
( C o n t in u e d o n p a g e

2774.)

The invention that revolutionised communication.
First practical telegraph instrument invented and used
by Samuel F. B. Morse.

Volume 149

ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD
—
—

2773

orizons
. . . Industry is looking forward to new and better
products through synthetic organic chemistry.

By uniting carbon, hydrogen, oxygen, and other elements in
thousands o f combinations, Carbide and Carbon Chemicals
Corporation has developed and now produces over 150 syn­
thetic organic chemicals. Once rare and costly chemical curi­
osities with valuable properties have been made into important commercial
products. Among these are solvents for surface coatings or lacquers . . .
intermediates for making new products or for eliminating steps in present
syntheses . . . emulsifying agents for acidic or basic preparations . . . wetting
agents for textile, leather, or other aqueous processes . . . coupling agents for
rayon oils or dry-cleaning soaps . . . plasticizers for resins or printing inks . ..
anti-freeze compounds for automobile engines or brewery cooling systems
.. . and "Vinylite” resins for safety glass, plastic articles, or synthetic fibers.
In fact, Carbide and Carbon Chemicals Corporation has a synthetic organic
chemical for almost every industrial requirement.
In the past few years, over 60 new chemicals were introduced in antici­
pation o f the future requirements o f industry. So new that no collective
name has as yet been found for them, they are called "Fine Chemicals”
and are already finding an ever-widening horizon of new uses. These syn­
thetic organic chemicals are a few of the many new products which give
American Industry its dynamic character and its potentialities for creating
new markets and new industries.

Inquiries are cordially invited.

C arbi d e

and

Carbon Chemicals Co r po ra t io n

Unit of Union Carbide and Carbon Corporation
30 East 42nd Street

PRODUCERS




OF

|l|^^

SYNTHETIC

New York, N. Y.

ORGANI C

The word Vinylite” is a registered trade-mark of Carbide and Carbon Chemicals Corporation.

CHEMI CAL S

2774

ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939
—
—

A Century of Achievement
(iC o n t i n u e d

fro m

page 2772)

enterprise; the prospects and growth of our young
American cities; Marine Architecture, in reference
to the material, capacity and safety of ships; Insur­
ance—its principles, practice and applicability to
all the risks of life; Immigration; Geographical ex­
plorations, and the new openings for trade which
they disclose; Labor-saving Machinery— its actual
and possible applications, and its influence on
society, and the condition of the laboring classes;—
such are a few of the topics which invite the pen of
him who would illustrate, in its freshness and life,
the Commercial Literature of the day.
“ The sneer that merchants read nothing but their
day-books and ledgers loses all semblance of truth
and fades into shallowness before the brilliancy of
the names which, in every age, have adorned the
mercantile profession, and shows a poor apprecia­
tion of the intelligence of a class which could pro­
duce men like Gresham and Roscoe. In our day
when, under the influence of our Mercantile Library
Associations, a body of merchants is growing up,
partaking in a more than ordinary degree the gen­
eral culture of the age, it is simply absurd. Our
younger merchants will find it hard to believe that
while almost every other science and profession,
while agriculture, the mechanic arts, law, medicine,
divinity, and even special industries, have long had
a representative in our periodical literature, com­
merce had no ‘organ’ except the newspaper press,
until the ‘Merchants’ Magazine’ was established.
If such a work was needed 20 years ago, it is indis­
pensable now.
“We may add that the facilities at command for
making ‘Hunt’s Merchants’ Magazine’ an adequate
exponent of commerce in all its immense develop­
ments were never so great as now, and we feel that
it can be made to fill a place hitherto unoccupied
in our literature. With regular contributors, whose
names do honor to Letters and the Science of
Wealth, the magazine counts among its correspond­

ents men of ability, themselves merchants, who find
welcome admission into its pages, and whose experi­
ence and practical sagacity outweigh the merely
literary graces.”
For a brief period after the death of Mr. Hunt
the “Merchants’ Magazine” was published under the
proprietorship of George W. and John A. Wood.
During these years from May, 1858, until the spring
of 1861, it was under the editorial direction of
Thomas P. Kettell, an able writer long associated
with and greatly trusted and admired by Freeman
Hunt. It accordingly lost none of its standing; in­
deed, continued to grow in influence and in the
service it rendered. General conditions favored its
further development. “ The depression of 1857,”
says the historian Davis Rich Dewey, “ was but tem­
porary in its industrial effects; the development of
railroad construction and shipping was speedily
resumed; crops were abundant and prices remunera­
tive.
The cotton crop of 1860 reached 4,675,770
bales, nearly a million bales more than in any previ­
ous year; great gains had been made in the crops
of wheat, corn and other cereals; the production of
anthracite coal in Pennsylvania was nearly 800,000
tons greater than in any preceding year; the output
of pig iron was 913,000 tons, or 130,000 tons more
than the average of the six preceding years; exports,
including the precious metals, had reached the high­
est point then known, $400,000,000 (of which $316,000,000 was domestic merchandise), or $43,000,000
more than in any other previous year. The consum­
ing powers of the people had never been so high, as
was proved in particular by the unprecedented de­
mand for sugar and tea; there was but little pauper­
ism, and wealth on the whole was evenly distrib­
uted. One hundred and seventy-nine thousand im­
migrants landed in 1860, or 58,000 in excess of the
preceding year. The tonnage of American shipping
was greater than ever before or since (1928), and
two-thirds of our imports and exports were carried
in vessels having an American register.”

The Chronicle
The Civil War, although of course not fully fore­
seen in all its stark tragedy, had begun by 1860 to
cast its shadow before it, and in 1861, when Mr. Ket­
tell surrendered his editorship to Isaac Smith Ho­
mans (whom Mr. Dana brought with him as co­
editor for a short period) and William B. Dana,
the country was on the very verge of that devastating
four-year struggle. The war exacted an extraordi­
narily heavy toll of the magazine, but reserves had
been laid aside for such contingencies, and it had
no great difficulty in surviving the storm. By late
1865 it was issuing larger and better numbers than
ever. But Mr. Dana had by that time formulated
and developed plans for entering the weekly field,
and in July, 1865, issued the first number of “ The
Commercial & Financial Chronicle” , into which, ac­
cording to plan, he caused the “ Merchants’ Maga­
zine” to be merged at the end of 1870. The “ Chron­
icle” thus came into being at a time in our history
when extraordinarily difficult problems arising out
of the Civil War faced the country, but when,
viewed over a longer period, opportunity never
beckoned more plainly or more vigorously. Only
in retrospect is it possible to grasp the vision which



Mr. Dana must have been able to summon before
his eyes in 1865.
If astounding progress had been made during the
three decades of the life of the “ Merchants’ Maga­
zine” , the accomplishments in the three-quarters of
a century since the “ Chronicle” was founded are
almost incredible. So far have we traveled during
this span of years, despite various forms of inepti­
tude on the part of the politicians, and notwith­
standing excesses and often recklessness in the
management of our industrial affairs, that the
present generation has great difficulty in envisag­
ing the general state of affairs existing in 1865.
Yet the record is relatively complete. Only a com­
paratively brief and cursory survey of the columns
of the “ Merchants’ Magazine” and the first issues
of the “ Chronicle” easily furnish the broad outlines
of the picture. The magnetic telegraph was in use,
but facilities existed in the form of largely dis­
jointed segments and did not begin to cover the
country like a blanket as is the case today. It was
not until the second volume of the “ Chronicle” was
being published that it was able to report the com(Continued on page 2776 )

Volume 149

ONE HUNDRED
—The Commercial & Financial Chronicle YE A R S OLD
—

2775

A T H O U S A N D Y E A R S OF P R O G R E S S
/
-ue
a.
v
c a r c e l y

more than 40 years ago the first motor car

S chugged its way along a dusty highway. It was an un­
comfortable ride, judged by today’s standards. Slow, noisy,
uncertain, it provided an ideal target for critics o f the day.
Yet, this modest ride was the start o f a new industry,
and one might say, a new civilization. Something great,
and new, and different began in the world that day. Since
then, as if by the touch o f a magic wand, the country roads
o f our nation have widened into great highways, automo­
biles and trucks have displaced the horse and buggy, and
people everywhere have benefited.

Today, more than six million people directly and indi­
rectly derive their livelihood from the automobile industry.
Today, more than twenty-six million American families
ride in a style unmatched by any other country in the world.

Today, with an annual production o f three to four mil­
lion cars a year, automobile prices start at only a few hun­
dred dollars as compared with thousands a few years ago.
H ow was this accomplished?

PLYMOUTH
Passenger and Commercial Cars




• DODGE

Modern manufacturing, engineering, and distribution meth­
ods have played the largest part in making these almost
unbelievable benefits possible. Engineering research. New
machinery. Better distribution methods. Reduced costs. All
o f these have resulted in the quality vehicles o f today.
Chrysler Corporation is proud to have played a part in
developing this great industry. In the last fourteen years
Chrysler C orp o ra tio n has bu ilt and sold m ore than
7,000,000 Plymouth, Dodge, D e Soto, and Chrysler pas­
senger cars and trucks. Through the engineering, manu­
facturing and selling o f these products it has provided an
income, directly or indirectly, for more than 1,000,000
people.

Today, more than ever before, Chrysler Corporation is
constantly striving to improve its engineering, manufac­
turing, and distribution methods in order to be better able
to continue to provide the maximum in quality trans­
portation.
.

YOU GET THE GOOD THINGS FIRST .
FROM CHRYSLER CORPORATION

• D E SOTO

Passenger Cars and Trucks
C H R Y S L E R MA RINE AN D IN D U S T R I A L E N G IN E S • A IR T EM P — AIR C O N D I T I O N I N G

• CHRYSLER

ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939
—

2776

—

Local transportation was immeasurably improved by
the invention of Stephen Dudley Field, known as the
Father of the Trolley Car. His was the first elec­
trically-propelled vehicle to run successfully. He
demonstrated his first trolley car at his home in Stockbridge, Mass., in 1880.

A Century of Achievement
C o n tin u e d
C

fro m

page

2774)

pletion of the first really successful laying of a
telegraphic cable across the Atlantic Ocean, and in­
cidentally at once to call attention to the feasibility
of connecting then existing rather disjointed links
of telegraph lines to make possible the transmission
of messages around the entire globe, and to begin
within a very few weeks to publish reports cabled
from London on the previous day. Gas and elec­
tricity in their modern applications were, of course,
unknown. More than a dozen years were to elapse
before Edison was to invent the incandescent lamp.
The country was to wait a decade before Bell in­
vented the telephone. Three decades passed before
the first crude automobile appeared, and almost as
long before Edison’s motion picture machine was
presented to a startled world. Kerosene, even in its
earlier crude form, was hardly more than a novelty,
or at best a luxury available only to the very weal­
thy. Railroad construction had been actively under
way for some years, and the consolidation move­
ment which built large systems of transportation
for the convenience of the public had begun. So
also had the need of standardization of track and
equipment become apparent, and considerable prog­
ress had been made in meeting this need. The East
and West coasts, however, had not yet been joined
bv railroad ties, and generally speaking railroad
transportation was still in its infancy. The gen­
eral state of transportation then existing is aptly
depicted in the following account published in the
October, 1865, issue of the “ Merchants’ Magazine”
under the title “ The Great Continental Railroad” :
“ The visit to this country of a numerous party of
English capitalists who have already expended very
large sums in opening one of our most important
railways is an event of much interest. By many it
has been thought that their presence among us is in
part, at least, for the purpose of looking after the



interests of the road they have been so largely in­
strumental in building. This line now forms one
great national highway, being a uniform gauge from
New York to the city of St. Louis, a distance of
nearly 1,200 miles; so that the car that receives
its freight in one city discharges it in the other.
“ The Erie, the Atlantic & Great Western, and the
Ohio & Mississippi are the three lines of which this
great line is composed. The middle link, extending
from the Erie to Cincinnati, is the one constructed
by Mr. McHenry and his associates. They had the
sagacity to see that a line forming the connections
it now does could not fail to participate in the ad­
vantages enjoyed by the connecting links, while to
unite them would be a vast addition to their value
and importance as local works. The result has fully
justified the action, for both extremes are now earn­
ing nearly three times as much per month as they
did previous to the completion of the Atlantic and
Great Western RR.
“ The Erie Railway is too well known to require
description.. The Atlantic and Great Western
leaves it at Salamanca Station, and proceeds by a
direct route to Cincinnati, a distance of about 350
miles. In its course it crosses and renders tribu­
tary to it nearly all the important railroads of
Ohio, by which means it maintains intimate rela­
tions with all the leading points in the West. At
Cincinnati commences the Ohio & Mississippi RR.,
extending thence to St. Louis, a distance of 340
miles. This is a work of first rate importance,
whether considered in reference to its local busi­
ness, or its connections with other thoroughfares,
or its identity with great routes of commerce and
travel. At Cincinnati concentrate the great trunk
roads starting from the cities of New York, Phila­
delphia and Baltimore. From Cincinnati the busi­
ness of all these roads is carried forward over one
line to St. Louis. There is, consequently, no rail­
road in the country to which so many important
lines are directly tributary. It is, at the same time,
by virtue of its directness, the almost sole avenue
between two great cities of the West, each contain­
ing 200,000 inhabitants, each being the local point
of great lines of railroad, and each increasing with
unexampled rapidity in population and commercial
importance. It has also a local traffic equal to that
of a first-class Western railroad.
“ Another fact adding greatly to the importance
of the Ohio & Mississippi RR. and its Eastern con­
necting lines is the rapid progress of the State of
Missouri, consequent upon the abolition of slavery,
which has removed the last obstacle to the proper
development of the wonderful resources of that
great State. Northern emigration, with its capital
and enterprise, is now for the first time free to flow
into it, and there is nothing that can prevent it from
speedily taking rank with Ohio and Illinois, nor,
in fact, from becoming the leading State in the
Mississippi Valley.
“ From St. Louis west a new system of railroads
commences. Among the more important of its lines
are the Pacific and the North Missouri. The Pacific
RR. extends to the Kansas boundary, where it is
carried forward some 60 miles by the Union Pacific
Railway, E. D., now making rapid progress with
ample means furnished by the United States. Upon
the route of this road exists a commerce already
(Continued on page 2778)

Volume 149




ONE HUNDRED The Commercial & Financial Chronicle—Y E A R S OLD
—

Progress
N EW AIR BRA K E E Q U IP M E N T
A V I T A L CONT R I B UT I NG F A C T O R

We are Justly Proud of Our
Fifty Years of Indispensable
Service to Railway Progress

T h e N e w York A ir Brake Com pany
420 Lexington Ave., New York City
Plant: Watertown, New York

2777

ONE HUNDRED
—The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939

2778

—

A Century of Achievement
(C o n tin u e d f r o m

page

2776)

exceeding the capacity of a first-class road. This
commerce is increasing wonderfully in value each
year. It is now ascertained that the whole line of
the Rocky Mountain range, embracing an area of
500,000 square miles, is as rich in the precious met­
als as was California. The States and Territories
into which this immense area is now divided are
filling up as rapidly as did that State upon the first
discoveries of gold in it. The railroads of Missouri
and Kansas, as well as those connecting with the
East, are largely profiting by this tide of emigra­
tion and commerce, and none more so than the Ohio
& Mississippi and its connecting railroads.
“ One great advantage now enjoyed by many of
our Western roads is their low cost, compared with
prices at which they could now be built. This
secures them from all danger of competing lines.
In the meanwhile their traffics are increasing so
rapidly that their earnings are doubled every five
years. It is this increase that has worked such a
revolution in the market value of railroad shares.
Take, for example, the Chicago & Alton RR., the
stock of which, as well as its bonds, were, a few
years ago, regarded as almost worthless. The road
was earning less than $1,000,000, a sum hardly suf­
ficient to pay running expenses. It was reorganized
and is now earning at the rate of nearly $4,000,000.
or about 40% gross upon its cost. Its common
stock is in active demand above par. This road may
be taken as an example of what many Western rail­
roads will accomplish whose stocks are now selling
at one-third their nominal value. All well-situated
Western railroads are certain to become highly pro­
ductive on their cost; and their stocks when largely
depreciated offer excellent opportunities for invest­
ment, the lower they are the greater will be the
profit to the purchaser. Our whole system of rail­
roads is yearly becoming intimately identified with
the great interests of the country, and laying more
broadly the foundations of a permanent and sub­
stantial value.
“ These facts are conclusive. The income of the
great line from New York to St. Louis is three-fold
greater now than it was four years ago. There is
not a section in the West, as before stated, that
does not double its railroad business every five
years. This rate of increase must continue for an
indefinite period to come. The necessity of the
country tapped by the Great Continental RR. is
not business, but the means for its accommodation.
A double track is now wanted from the city of
New York to the Mississippi. That of the Erie
Railway is pretty nearly completed. The owners
of the Great Western are making preparations for a
similar improvement on their line, which Sir Mor­
ton Peto, in some remarks he recently made at St.
Louis, declared to be an absolute necessity. With
a double track and uniform gauge for the whole dis­
tance it would be hardly possible to set any limits
to the traffic and revenues of this magnificent
line.
“As the different links of this great road have
identical interests, we learn that it is the design of
the companies controlling them to unite in the most
intimate relations, if not to consolidate the whole
under one common head. As such union must add
greatly to the value of all the lines, its accomplish



ment may be regarded as an almost foregone con­
clusion. Such union has been long felt to be indis­
pensable by the managers of the Great Western, and
even if they should not obtain control of the Erie,
there is little doubt of their obtaining that of the
Ohio & Mississippi— a result which must greatly
enhance the value of that important line.”
Manufacturing was, of course, of a piece with
transportation. The then next preceding census
figures (1860), which were becoming available in
detail when the “ Chronicle” came into existence,
reported 140,433 manufacturing establishments, in­
cluding hand and heighborhood industries and each
plant with yearly products valued at $500 or more,
which gave employment to some 1,311,246 persons
whose wages amounted to $378,878,966. The value
of finished products was reported at $1,885,861,676.
In 1914, with hand and neighborhood industries ex­
cluded, the number of establishments was 272,518,
the number of persons employed 7,023,685, wages
paid $4,067,718,740, and the value of products $24,216,514,573, while in 1935, really a depression year,
the figures reported (with hand and neighborhood
industries and establishments with annual products
valued at less than $5,000 excluded) were: number
of establishments, 169,111; wage earners, 7,378,845;
wages, $7,544,338,434; value of products, $45,759,763,062. The country in 1869 was, however, pre­
dominantly agricultural, and the following figures
will make clear how far there was yet to go in
reaching the present state of farm productivity. In
1860 the value of all farm property was set down
at $7,980,493,063. In 1910 the figure was $40,991,449,090, and in 1930, $57,245,544,269. In 1860 there
were 163,110,720 acres of improved farm land in the
United States. By 1910 the figure had reached
478,451,750 acres, and in 1935, 1,031,814,370 acres.
The Nation, moreover, faced the gigantic task of
repairing the damage inflicted by four long years
of internecine strife. Problems of this origin were
to be observed on all sides, but nowhere more strik­
ingly than in the state of the finances of the
National Government. Mr. Dewey, the financial
historian, gives this account of the public debt
in 1865:
“ The public debt reached its highest point Sept. 1,
1865, when it stood at $2,846,000,000, less $88,000,000 in the Treasury, leaving a net debt of $2,758,000,000. Of this vast indebtedness less than
one-half was funded; $433,160,000 was in United
States legal tender notes, $26,344,000 in fractional
currency, and the remainder consisted of various
forms of short-time paper or temporary securities,
a large part of which was due before 1868, and a
considerable amount was maturing daily. For ex­
ample, a temporary loan of $107,000,000 was pay­
able at 10 days’ notice on the part of the holder;
there were $830,000,000 seven-thirty notes; com­
pound interest notes amounted to $217,700,600, and
certificates of indebtedness to $85,000,000. On
June 30, 1866, the interest-bearing debt consisted
of loans bearing five different rates of interest and
maturing at 19 different periods of time. On a
part of the loans the interest was payable in coin,
and on part in currency (then greatly depreciated).
Of the 6% bonds and notes there were 12 different
kinds; of the 5% loans five different issues, and
of the seven-thirty notes at least five, some convertr

(Continued ori'page 2780)

Volume 149

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD
—

—

2779

T h is m a ch in e a u to m a tic a lly p r e p a r e s fin is h e d r e p o r ts fro m p u n c h e d ca rd s.

A
ccuracy and G
reater Speed
in o ta in
b in g
th Facts y u req ire
e
o u

T h e In te r n a tio n a l
P r o o f M a c h in e

E x e c u t i v e s a n d T r u s t O f f i c e r s in te r e s te d in
k e e p in g w ell a h e a d o f th e in cr e a s in g d em a n d s fo r
d e ta ile d in fo r m a t io n s h o u ld in v e s tig a te th e a d v a n ta g es
w h ich I n te r n a tio n a l B u sin ess M a ch in es n o w o ffe r .
D

a n k

T h r o u g h th e m ed ium o f p u n c h e d ca rd s, I n te r n a tio n a l
E le ctric A c c o u n t in g M a ch in es p rep a re, a u to m a tica lly ,
at^high sp eed , th e m a n y r e p o rts a n d sc h e d u le s re q u ire d .
T h is m od ern m e th o d e lim in a tes d u p lic a t e p o s tin g s , as
w ell as th e k e e p in g o f m a n y sep a ra te r e co r d s . It p ro­
vides su m m arized in fo r m a tio n in m inim um tim e— an d
at m inim um c o s t.
T h e I n te r n a tio n a l P r o o f M a ch in e o ffe rs a m eans o f
q u ic k ly a n d a c c u r a te ly c o n t r o llin g th e th o u s a n d s o f
c h e c k s w h ich are rece iv e d d a ily . It a u to m a tica lly
sorts, lists, a n d p roves.

I n te r n a ti o n a l A t te n d a n c e
Tim e R e c o r d e r

I n te r n a tio n a l T im e R e c o rd e rs a n d E le ctric T im e System s
assu re a c c u r a te p a y r o ll r e co r d s a n d h e lp to c o o r d in a te
th e w ork o f all d e p a rtm e n ts.
T h e fe a t h e r -lig h t t o u c h o f th e In te r n a tio n a l A ll-e le c tr ic
W r itin g M a ch in e in crea ses ty p in g sp eed as m u ch as
5 0 % . T h is m a ch in e b r in g s a ttr a c tiv e , u n ifo r m ty p in g
re su lts a n d w ill p ro v id e as m any as 20 d is t in c t ca r b o n
c o p ie s . W rite fo r d e ta ile d in fo r m a tio n .

INTERNATIONAL BUSINESS MACHINES CORPORATION
World Headquarters Building
590 MADISON AVENUE, NEW YORK, N.Y.




jjfl/llta

Branch Offices
IN PRINCIPAL CITIES OF THE WORLD

T h e I n t e r n a t i o n a l A ll-e le c tr ic
W r itin g M a c h in e

ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939

2780

—

A Century of Achievement
{C o n tin u e d , fr o m , p a g e

2778)

ible at the option of the Government and some at
the option of the holder. Bonds of some issues were
exchangeable for others. A large portion of the
five-twenty bonds caused uneasiness to investors,
because of a contingency clause by which the Gov­
ernment might redeem them within five years of
date of issue, that is, in 1867. Of the total debt
only one-nintli ran in any contingency longer than
two years. ‘Eight-ninths of it consisted of transient

—

forms issued under laws made up to a great extent
of incompreliensive verbiage giving unlimited direc­
tion over the mass to one man and expressing in
the aggregate nearly 100 contingencies of duration,
option conversion, extension, renewal, &c.’ It was
indeed difficult, as Senator Sherman remarked, for
the people of the United States to understand any
save two or three of the loans, and none but a suc­
cessful investor engaged in the sale and purchase
of stock could tell the various differences in value
of the several securities, and the reasons therefor.”

Across Three-Quarters of a Century

It was into such a world as this that “ The Com­
mercial and Financial Chronicle” was born in July,
1865. A great future law ahead, but it required
optimism and imagination to envisage it. Great
problems lay all around, and it required courage
to face them. The country was destined to face
other difficult situations, and only cool intelligence
and courageous candor could enable any editor to
point the way through the troubled times existing
and to come, and to dash cold water upon the overexuberances and mad-cap public policies which at
various times during the next three-quarters of a
century were to appear. More than a decade was
to elapse before specie payments were resumed, and
in that interval there never was a time when the
matter was not being heatedly debated, and nowhere
was the subject more regularly and enlighteningly
discussed than in the columns of the “ Chronicle.”
Meanwhile, banking was a subject of difficulty, and
the work of developing the national banking system
according to the National Banking Act of 1863, as
later amended, had to be done. The perennial tariff
question was again and again agitated, public lands
in large amounts still existed, currency questions,
particularly as regards silver, would not down, and
the development of a taxation policy (so far as we
have ever developed anything that might be so
termed) was unfinished business, and still is, for
that matter.
Meanwhile, with the almost incredibly swift de­
velopment of the West and the large influx of for­
eign populations with vastly different background,
so far as governmental philosophy is concerned,
from that of the original settlers of the Eastern sea­
board, there arose what is sometimes termed “ the
radical movement” which has laid its impress upon
the whole structure and functioning of the Amer­
ican Government. This development had begun to
cast its shadow before it years prior to the Civil
War. The leading article in the “Merchants’ Maga­
zine” in February, 1846, with prophetic vision,
called attention to what was in store for the United
States in this particular.
“ The most important political subject before the
American people at the present time,” its author
remarked, “ is the approaching change in the geo­
graphical center of power in the country. While
we are intent upon minor interests, we are giving
little heed to the fact that in a very brief period the
seat of the growing power in these States will be
completely changed. Neither the annexation of
Texas nor the formal possession of Oregon can be
compared, in its influence upon the Atlantic States,
with that numerical superiority which, at the very




next census, will make the West the dominant por­
tion of the Republic.
“ Let no one suppose that this change will be
rather nominal than real— a change in the place of
power, and not in the governing influences. Most
important changes must take place, and these it
behooves the people of the East well and early to
consider.” Continuing the subject, the author at a
later point remarks:
“We are inclined to think that the extreme
democracy of the West will be very discernible in
Congress after the next census. With institutions
somewhat more democratical than ours, the spirit
of that section of the country is decidedly in ad­
vance of us in this particular. There is, there, abso­
lutely no counteracting force. Wealth is, with us,
much more unequally distributed; social distinc­
tions more marked. Constant intercourse with the
Old World has a perceptible influence over the A t­
lantic towns; and there still remain some remi­
niscences, faint and fleeting though they be, of
family, and family connections. At the West, the
‘spirit of the age’ is so completely the ruling spirit
that very little concern is felt about the spirit of
past ages; and precedents are discarded, the rather
because somebody has tried them before. When this
Western characteristic gives a tone to Congress the
people of the East will find they have some lessons
to learn, with whatever grace they can muster. The
great proportion of foreigners in the population of
the new States, following the law of reaction, forms
an ultra and democratic element, which will be as
difficult to manage as a newly-released prisoner
after his first draught of fresh air and other intoxi­
cating fluids.”
In the business field were to come the great com­
bination movements which were to give rise to enor­
mous, relatively self-sufficient enterprises.
The
railroad systems of today were to be built, partly by
original construction and partly by amalgamating
smaller and isolated units actually then in opera­
tion. The public utility industry virtually in its
entirety was to be founded and developed to the
stage now existing. Discovery after discovery in
the sciences were to be applied to business opera­
tions and to the production of myriads of products
of which the generation of 1865, or for that matter
often of 1895, never heard or dreamed. The socalled labor movement in its modern form was yet
to develop. These and a thousand other events were
to give rise to a thousand thousand problems, not
only of industry, trade, agriculture and finance, but
of social organization and self-government. The
0Continued on page 2782 )

Volume 149

ONE HUNDRED The Commercial & Financial Chronicle—-YE A R S OLD

2781

—

Now
...Talking Pictures
for the H m !
oe

with New De Luxe

'f y t w

H o m e Movie Cameras!

ONLY

$

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S - O - U - N - D is t h e n e x t s t e p i n m o v i e s f o r t h e h o m e . A n d h e r e
it is , p e r fe c t e d f o r y o u b y B e ll & H o w e ll, f o r o v e r 32 y e a r s
m a k e r s o f H o l l y w o o d ’ s p r o f e s s i o n a l m o v ie e q u i p m e n t .

PA LM -SIZE

•

f Projecto

w

4950

P a l m -s i z e F i l m o 8 m a k e s n e w s r e e l l e n g t h m o v ie s c e n e s f o r l e s s t h a n t h e
cost
of
sn a p sh o ts!
M akes
color
m o v ie s , t o o , i n d o o r s a n d o u t , e v e n
i n s l o w m o t i o n . A l l y o u d o is p r e s s
a b u t t o n , a n d what you see, you get!
O n l y $ 4 9 .5 0 .
O t h e r 8 m m . F ilm o s
to $140.

T h is n e w F ilm o s o u n d , e n c a s e d in b e a u t i f u l w a ln u t , p r o je c t s
s o u n d - o n -f i l m r e e ls j u s t lik e t h e a t e r p r o je c t o r s . M o v ie s a re o f
th e sa m e b r illia n c e .
V o ic e a n d m u s ic are e q u a l in t o n a l
p e r fe c tio n !
I m a g in e w h a t g r a n d t im e s y o u r f a m ily w ill h a v e e n jo y i n g
H o l l y w o o d h i t s at home! A n d t h i s F i l m o s o u n d i s s o p o w e r f u l
y o u c a n u s e it a t y o u r c h u r c h o r c l u b . O t h e r m o d e ls a re a v a il­
a b le f o r la r g e a u d it o r iu m s a n d fo r c o m m e r c ia l u s e .
W r i t e B e l l & H o w e l l C o m p a n y , 1 8 1 9 L a r c h m o n t A v e ., C h i c a g o ;
N ew Y o r k ; H o lly w o o d ; L o n d o n .
Established 1907.

Projects B o t h S o u n d an d S ile n t F ilm s
W it h th is n e w F ilm o s o u n d , y o u
s i l e n t m o v ie s y o u m a k e y o u r s e lf!

m ay

a ls o

sh ow

th e

16 m m .

A d d M u sic to Y o u r S ile n t Movies

N E W “ SHELLO A D IN G "

B y a d d in g a p h o n o g r a p h t u r n ta b le a n d m ic r o p h o n e , y o u c a n
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y o u r o w n r u n n in g co m m e n ts.

Unlim ited Film Supply
F i lm o 1 4 1 is a v e r s a t i l e 1 6 m m . c a m ­
e ra w h ic h lo a d s w ith p r e th r e a d e d
film m a g a z in e s .
P e r m its c h a n g in g
f r o m c o lo r t o b l a c k - a n d - w h i t e f i l m
in m id r e e l w i t h o u t s p o ila g e .
H as
n e w e r r o r -p r o o f v ie w fin d e r .
O n ly
$ 1 1 5 . O t h e r 16 m m . F ilm o s t o $ 1 1 5 5 .




F IL M O S O U N D L I B R A R Y o ffe r s th o u s a n d s o f film s fo r r e n t
or p u r c h a s e . . . H o lly w o o d h it s , c a r t o o n s , c o m e d ie s , n e w s ­
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BY

BELL & HOWELL

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939
—

2782

—

A Century of Achievement
(C o n tin u e d fr o m

page

2780)

“ Chronicle” from the first conceived it to be its
function to record the changes as they occurred,
to keep its readers informed as to their significance,
and to do all that within it lay to guide public
thinking throughout into constructive and safe
channels.

A Half-Century
As to the first half-century of the life and work
of the “ Chronicle” , we are fortunate in having
available a rather full account of its objectives and
its accomplishments in this world of change and
achievement from the pen of Jacob Seibert Jr., who
more than any other man living or dead, unless it
be Mr. Dana himself, was responsible for that rec­
ord. Upon the occasion of the completion of the 50year period Mr. Seibert prepared and published in
the June 26,1915, issue of the “ Chronicle” a history of
the publication, from which we take the following:
■
‘Possessing undeveloped natural resources of vast
extent, and with an energetic population, the mar­
velous growth here recorded was inevitable when
the issue of the Civil War had made it plain that
the danger of a divided country had been sur­
mounted. The only thing that could interfere with
the country’s progress was erroneous economic and
financial policies. The founder of the paper fore­
saw this— foresaw what a marvelous industrial era
lay ahead and also recognized that the perils attend­
ing the promulgation of false economic doctrines,
which had found a fertile field in the financing en­
tailed by the war, must be guarded against if the
United States would attain the full measure of the
growth which its boundless possibilities ensured.
He therefore resolved to establish a well-equipped
journal— a great organ of public opinion—designed
to foster the economic and material interests of the
country and bent upon combating false doctrines
and dogmas, a paper whose purpose it would be to
inculcate correct principles, champion high national
ideals and encourage unquestioned standards of
business morality.

“ It was not, however, the purpose to provide
merely a vehicle for editorial discussions and the
expression of correct views for the enlightenment
and guidance of the mercantile and financial world.
Mr. Dana had it in mind also to create a newspaper,
which would supply a narrative of all the events,
the facts and the information having a bearing upon
the industrial and financial situation of the coun­
try. The editorial announcement in the first num­
ber of the paper stated this purpose very plainly,
saying: ‘Nor will it stop with the advocacy of cor­
rect principles, but will be in every essential sense
a newspaper. All that the economist, the merchant,
the banker, the manufacturer, the agriculturist, the
shipper, the insurer and the speculator, may need to
know in the course of his daily pursuits, will be
found duly chronicled in its columns.’
“ How well this latter purpose has been fulfilled
the storehouse of facts and statistics contained in
the 100 semi-annual volumes that have been issued
during the last 50 years abundantly testify. We
think we are keeping strictly within the truth when
we say that no such repository of information and
statistics concerning the transportation, the finan­
cial and the industrial affairs of the United States
can be found anywhere else in the world. And the
paper very early acquired a reputation for accuracy
and reliability, which it retains to the present day.
It has always been the desire to have the reader
feel that he could depend absolutely upon every
statement that should appear in its columns—not
alone in the ‘Chronicle’, but in any of the numerous
extra publications issued as supplements during the
course of every year. Subject to the liability to
error, which human mortals cannot escape, the re­
quirements of truthfulness and reliability have been
faithfully met, though not without the conscious­
ness of many shortcomings in that respect. Typo­
graphical and other blunders have on more than one
occasion served as reminders that perfection, how­
ever fervently desired, was far from being realized.
But with general recognition on the part of its
readers that unusual precautions were being taken
( C o n tin u e d ,

on page

2784)

The first World’s Fair in the United States was held at 42nd Street between Fifth and Sixth Avenues, in a
elaborate building known as the Crystal Palace. Built in 1853 by Theodore Sedgwick, 3rd, of Stockbridge,
Mass., the building was one of the wonders of the continent until its destruction by fire in 1858.




Volume 149




ONE HUNDRED
—The Commercial & Financial Chronicle—Y E A R S OLD

TH E

NEW YORK COTTON EXCHANGE
E b ed 1 7
sta lish 8 0

Congratulates

The Commercial and Financial Chronicle

on Its Completion of

O N E HUNDRED YEARS OF SERVICE

to American Business

NEW YORK COTTON EXCHANGE

2783

ONE HUNDRED—The Commercial & Financial Chronicle— YEARS OLD Nov. 4, 1939

2784

the one meant the advancement of the other. In
brief, it has never been a class journal seeking the
advantage of any particular interest. Nor has it
ever advocated any views out of a desire to com­
mand public favor, either for the time being or in
the long run. It has never yielded to popular
clamor, but aimed simply to be right, and always
expressed its honest convictions.

A Broad Basis

The car that revolutionized America. First horseless
carriage built by Henry Ford, father of the present-day
mass-production system that makes it possible for
everyone with a job to own an automobile.

A Century of Achievement
{C o n tin u e d f r o m

page

2782)

to guard against the possibility of unintentional
error, a reputation for general accuracy lias been
built up which is prized as among the paper’s most
distinctive possessions and certainly constitutes a
very valuable asset.
“ The esteem the paper has acquired in that re­
spect is indicated by the fact that it is often referred
to as (Tlie Bible of Wall Street’, meaning that in
Wall Street faith in it is as strong as the common
faith in the Bible. The expression ‘Wall Street’
may be taken as standing for the great financial
interests located in New York, and we have reason
to believe that this confidence in its reliability, its
soberness of judgment, and its rectitude of purpose
extends to the whole circle of its readers.
“ We should regret if its influence was circum­
scribed within so narrow a limit as the Wall Street
district or the interests centered there. The ‘Chron­
icle’ has never been the organ of Wall Street or of
any one trade or class. It serves Wall Street only
so far as it serves the financial and industrial inter­
ests of the entire country. It happens that the in­
terests of the country’s monetary center are synon­
ymous with those of the community at large, and
that in helping the one it necessarily helps the
other. But this journal does not aim to cater to
Wall Street per se. Its title is broadly comprehen­
sive of its purpose, and it should be noted that the
name is not ‘The Financial Chronicle’, by which it
is generally known, but ‘The Commercial & Finan­
cial Chronicle’.
“ For many years the title page bore the descrip­
tive definition: ‘A weekly newspaper representing
the industrial and commercial interests of the
United States,’ and also the words ‘Bankers’
Gazette’, ‘Commercial Times’, ‘Railway Monitor’, &c.
It was founded on a broad and comprehensive basis,
with many separate departments, and it has sought
to serve all these departments to the best of human
ability. Nevertheless in the editorial expressions
of views it has not aspired to be the special cham­
pion of any of these as distinct units or segments,
but has aimed to treat them in their relation to the
welfare of the whole country. In other words, if
it has advocated any line of policy with reference to
the interests represented by any one of its depart­
ments, it has been because such policy seemed not
only calculated to help these particular interests
but to benefit the entire community, or because the
interrelationship was such that the advancement of



“ After the lapse of half a century the broad basis
upon which the paper was planned in the mind of
the founder commands unqualified admiration.
Practically all the departments to be found in the
paper today were contained in the original issue.
It has not been necessary to add any others. What
might appear as new departments are simply sub­
divisions of original departments which 50 years
ago had not advanced sufficiently to demand sepa­
rate treatment. For instance, under ‘Investment
News’ it was long the practice to carry everything
of an investment character. This was because the
investment field in this country had not yet be­
come very large or extensive, making it possible
within the compass of a few pages to cover every­
thing relating to municipal obligations, to street
railway securities and to the stocks and bonds of
steam railroads. As for the big industrial combina­
tions, with their mass of securities, these were
wholly unknown, in the sense that they exist today.
In the 50 years since then, population has grown
so fast, the number of municipalities has been so
enormously increased, and civic bond issues are
being put out on such a scale and within so wide
an area, from one end of the country to another,
that an entirely separate branch of the investment
department or section, designated the ‘State and
City Department’, has had to be created in order to
deal adequately with this branch of the investment
field. Again, railway investments have had to be
put in a branch by themselves. Furthermore, with
the appearance on the public security markets of
the great industrial and manufacturing corpora­
tions still another investment group had to be
established for dealing with this new line of appeal
to the banking and investment capital of the
country.
“ We refer to these facts because they show so
clearly that in its general outlines the paper was a
perfect conception from the start. So broad and
comprehensive was the basis on which it was
founded that all that has been necessary has been
to develop along the lines originally laid down.
And the way the paper has been developed has been
no less noteworthy than the original scheme or
design. This development, of course, may be ex­
pected to continue indefinitely into the future, in
keeping with the progressive spirit which has been
the keynote of the paper’s policy throughout. For
many years after the paper was founded the weekly
issue consisted of merely 32 pages. Today’s issue
is 112 pages, and on occasions the number of pages
has gone even higher. Even with this increase in
the size of the weekly issue it has been found im­
possible to meet in full the requirements of the
various departments under the prodigious growth
of the country and the expansion of its trade and
commerce. Accordingly, very early the practice was
{Continued on page 27 ! 6 )

Volume 149




ONE HUNDRED
—The Commercial & Financial Chronicle—Y E A R S OLD

CEPTANCE

C OR P ORATION

Tj T T IT T C
is engaged prim arily in facilitatin g wholesale distribution
and retail sales of th e follow ing
M

otors

C o r p o r a t io n

an d

its

prod ucts

of G e n e r a l

w orld - w ide

affiliates:

C A D IL LA C , LA SALLE, B U I C K , OLDSMOBILE, PO NT IA C ,
CHEVROLET a u tom obiles;

f r ig id a ir e

eration a n d air con dition ing;
h eatin g

e q u ip m en t;

GMC

OPEL,

B L I T Z — foreign

delco

trucks;
m ade

appliances for refrig­
lig h tin g , pow er and

BEDFORD,

vauxhall,

a u to m o tiv e

v eh icle s.

The business consists of investments in self-liquidating
credits, widely diversified as to region and enterprise,
capital employed being in excess of $ 8 0 , 0 0 0 , 0 0 0 .
In obtaining short term accommodation,
one standard form of note.

issues

GMAC

This obligation it offers to

banks and institutions, in convenient maturities
and denominations at current discount rates.

GENERAL
MOTORS
INSTALMENT

P L A N
These

notes

,

are available in limited amounts

,

upon request.

EXECUTIVE OFFICE
NEW YORK

BRANCHES
IN PRINCIPAL CITIES

2785

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939
—

2786

—

What might be termed the cradle of the public utilities
in America was this first house in New York to be
lighted by artificial gas. It was the home of Samuel
Leggett, first President of the New York Gas Co., at
7 Cherry Street.

A Century of Achievement
(C o n tin u e d , f r o m

page

2784)

begun of supplementing the weekly numbers by the
printing of extra publications issued at stated inter­
vals throughout the year. One new supplement
after another has thus been added, and many of
these are now larger in size than the paper itself.
“ Owing to the regulations of the Post Office De­
partment, these extra publications are called sec­
tions instead of bearing their right designation as
supplements. The earliest of these supplements ap­
peared on April 3, 1875, and was termed ‘The In­
vestors’ Supplement’. It contained descriptions
and tabular statements regarding the finances and
obligations and revenues of steam railways, of street
railways, and of municipalities. The printing of
that supplement grew out of the practice previously
existing of devoting three or four pages a month in
the weekly issue to the presentation of this class
of statistics. The space in the weekly issue for
the purpose had been gradually enlarged and finally
the demands for space in this way grew to be so
excessive that no option was left but to publish a
special supplement given over entirely to that par­
ticular need. The ‘Investors’ Supplement’, origi­
nally only 32 pages, had itself to be enlarged with
the course of time, and finally there occurred the
necessity for some of the subdivisions already re­
ferred to.

Municipal Supplement
“ It was decided to take municipal securities out
of that supplement and to establish an entirely new
supplement, devoted wholly to municipal obliga­




tions. Accordingly, on Oct. 31, 1891, the first num­
ber of our ‘State and City Supplement’, or ‘Section’,
appeared. This supplement has been issued regu­
larly twice a year since then, and is a bulky publi­
cation, the last number, dated May 29, 1915, com­
prising 216 pages besides the cover. In 1895 the
process of subdivision was carried a step further,
and street railway securities were also taken out
of the ‘Investors’ Supplement’ and a new supple­
ment, called ‘The Street Kailway Supplement’ or
‘Section’ created, for the purpose of dealing more
comprehensively with this class of investments.
The first number of the ‘ Street Railway Supple­
ment’ bore date March 9, 1895. In February, 1908,
with the electrification of practically all the street
railways in the country and the development of
suburban and interurban trolley roads all over the
United States, the name of this publication was
changed to ‘Electric Railway Supplement’, and it is
easy to foresee still another change in the not re­
mote future to ‘Public Utility Section’ or ‘ Supple­
ment’, owing to the importance which the light and
power concerns and the various water power devel­
opments are assuming. The ‘Electric Railway Sec­
tion’ now appears three times a year, and the May,
1915, issued contained 136 pages.
“ In October, 1903, the name ‘Investors’ Supple­
ment’ was abandoned as being too general and vague
to be descriptive of the contents of the publication,
since both municipal investments and street rail­
way investments no longer appeared therein. The
title of ‘Railway & Industrial Section’ was adopted
instead, meaning that this supplement was now de­
voted to the securities of steam railroads and those
of industrial and manufacturing concerns. The
‘Railway & Industrial Section’ appears three times
a year, a new number going out to our subscribers
today. It contains 184 pages in addition to the
cover.
“ From the first the ‘Chronicle’ has devoted much
space to records of stocks and bond prices. The
experience here has been the same as in the case
of all other departments. The demands for space
became too large to be taken care of entirely in the
weekly issue, and another supplement had to be
established. For many years it had been our cus­
tom to publish elaborate tables of stock and bond
prices as part of the weekly paper on a stated Satur­
day each month. Now, however, with the multipli­
cation of new security issues this no longer
answered, and on May 11, 1895, we began the print­
ing of our ‘Quotation Supplement’, now called the
‘Bank & Quotation Section’. This supplement has
appeared regularly month by month since then. In
size it is 64 pages. In addition, nine pages of the
weekly issue are given over each week to records of
stock and bond prices on the leading exchanges.
“ We have long made a specialty of weekly and'
monthly reports of railroad earnings, and when the
Interstate Commerce Commission began to require
monthly reports of earnings and expenses of the
steam railroads and comparisons with the preceding
year became available, we added in February, 1909,
yet another supplement, ‘Railway Earnings’, de­
voted in its entirety to a presentation of these
monthly returns and embracing every railroad in
the United States that is obliged to furnish returns
to the Commission. This supplement consists of 32
(Continued on page 2788 )

Volume 149

ONE HUNDRED T h e
—

Com m ercial & Financial Chronicle —

T H IS L A B E L

Y E A R S OLD

2787

helps us fight cancer

Thousands o f anxious people, every year, are directed through
New York City Cancer Committee courtesy cards to hospitals
where their cases are diagnosed and treated . . . either free,
or in proportion to their ability to pay.
Help save these lives! Your dollar will do this. In addition,
you will receive a supply o f Package Labels, and our Quar­
terly Review giving you the latest information on cancer.
p in a d olla r bill to this c o u p o n _________________________________ ___________________________




NEW YORK CITY CANCER COMMITTEE
o f the American Society for the Control of Cancer
1 3 0 East Sixty-sixth Street
New York, New York
For $1 enclosed, please send me a supply of your Package Labels.
I understand that in addition you will send me your Quarterly Review.

Name--------------------------------------------------------------------------Street
C ity -

State

Persons living outside N ew York C ity and L on g Island m ay w ritefor local information
to headquarters: American S ociety f o r the Control o f Cancer, 3 5 0 M adison A v e.,N . Y.

ONE HUNDRED T h e
—

2788

Com m ercial & Financial Chronicle—

Y EAR S OLD

Nov. 4,

1919

The Chronicle . . .
100 Years of Service
As we approach our own 50th Anniversary, we
c o n g r a tu la te THE C O M M E R C IA L & F IN A N C IA L
CHRONICLE upon completing a century o f service.

It is an achievem ent to be the ou tstan d in g
organization in its field.

J. S.

B ache &

Co.

E sta b lish ed 1892
MEMBERS
LEADING

NEW YORK
STOCK

STOCK

AND

EXCHANGE

COMM ODITY

4 2 Broadway

AND

OTHER

EXCHANGES

New York

Branch Offices and Correspondents in Principal Cities
Complete Brokerage Service— Inquiries Invited

A Century of Achievement
(< o n t i n u e d f r o m
C

page

2786)

pages and appears about the loth or 20th of each
month.

The first automobile show. In Madison Square Garden
in 1901 was held what was known as the first horseless
carriage exhibition. To prove how easily the new con­
trivance would run and could be steered, a daring
exhibitor dodged various obstacles and barriers in a
turn about the hall.




Thirty-two Publications
“Altogether, therefore, no less than 32 extra pub­
lications of this kind are given to subscribers each
year (two numbers of the ‘State & City’, three of
the ‘Railway & Industrial’, three of the ‘Electric
Railway’, 12 of ‘Bank & Quotation’, and 12 of ‘Rail­
way Earnings’ ), besides which our ‘Bankers’ Con­
vention Section’, devoted to reporting the proceed­
ings of the annual convention of the American
Bankers Association, appears annually in Septem­
ber or October. , . .
“ The commercial departments of the paper— the
‘Commercial Epitome’, the ‘ Cotton Department’, the
‘Breadstuffs Market’ and the ‘Dry Goods Market’—
remain as at the start and retain their character as
valuable adjuncts. The ‘Cotton Department’ is the
department which always had the special care of the
founder of the paper from the day it was started.
Fifty years ago the railroads of the United States
were still in their infancy, and the country had not
yet attained a large measure of industrial growth.
Nor had the vast new sections of the West yet been
opened up for settlement or the country attained the
prominence in grain production to which it subse­
quently advanced. The cotton crop of the South
overshadowed everything else, and it accordingly
was made a distinctive feature of the paper. Owing
to the importance of accurate knowledge regarding
the progress of the crop and its movement, provision
was made for weekly weather reports from leading
points in the South, not in the very first number,
but soon thereafter, and statistics were also col(Continued on page

2828)

Volume 149

ONE HUNDRED T h e
—

Y E A R S OLD

Com m ercial & Financial Chronicle —

F your customers bought this way, they might
save a few pennies per pound, but they would
spend far more for meat. Whether a housewife
wants a tenderloin steak, a rib roast, or some
hamburger, she naturally takes advantage of
your services as an immediate source of supply
for any meat product.

I

Neither her icebox nor her means permit her to
buy meat on a wholesale basis. And you justify
your slight profit many times over in service, con­
venience, and careful buying which safeguards the
customer’s pocketbook and health.
When the retail meat dealer buys insurance from
the experienced agent or broker of a stock insur­
ance company, he does not say, “ $50 worth of
insurance, please.” He asks for and gets the advice
and full services of an expert purchasing agent in
the complex insurance field, like himself an expert

2789

middleman. No worries about uncovered risks
that might wreck a business.
*

*

*

Because we believe so thoroughly in the services
of an expert middleman whether wholesale or
retail meat dealer, insurance agent or broker,
we refuse to accept business direct because it
is not in the interest of the Company or the
assured to do so. Wh cn you buy National Surety
F id e lity Bonds, Surety Bonds, B urglary or
Forgery Insurance through your local insurance
agent or broker, you deal w ith a customer and
friend who is a fellow member and supporter of
the American Business System.

• This is a r e p r in t o f a n a d v e r t is e m e n t of a sto ck
in s u r a n c e c o m p a n y d ire c te d to th e in d e p e n d e n t
b u sin e ss m e n in the m e a t b u sin e ss in y o u r c ity .

national Surety corporation




V IN C E N T C U L L E N ,

President

ONE HUNDRED YEARS
★

and

★

WALL STREET
HEN “ Hunt’s Merchants’ Magazine” , the
predecessor to “ The Commercial & Financial
Chronicle” , was founded in 1839, in the rear of a
building at 142 Fulton Street, the population of the
entire United States was only a little over 17,000,000.
There were only 26 States, the youngest, Michigan,
having been admitted in 1837. The population of
New York City was 312,547. No building in Wall
Street was more than four stories tall. Many were
still occupied as residences, and it was not an un­
common sight on summer evenings, even two dec­
ades later, to see families sitting on the brownstone stoops for a breath of air. The south side of
Wall Street had suffered greatly in the fire of 1835,
which consumed 700 of the city’s buildings in all at
a loss of $17,000,000, but in 1839 had been largely
rebuilt, although the Merchants’ Exchange, one of
the finest buildings in the city and destined to
become the home of the Stock Exchange, was still
far from completed.
Late work in banks and brokerage offices was
done largely by candle-light. By driving madly
without stops for rests at taverns the stage coach
trip from New York to Boston had been reduced to
40 hours. The fare was $11.
The depression following the panic of 1837 was
still on, but American inventive genius and enter­
prise were not to be halted. Professor Samuel F. B.
Morse of New York had invented a practical mag­
netic telegraph. A line between Governor’s Island
and the Battery in New York was successfully tested
in 1842, after which Congress appropriated $30,000
for the establishment of a telegraph line between
Washington and Baltimore. But it was a long while
before the telegraph came into general use in Wall
Street. Much later still did bankers and brokers
enjoy the advantage of the telephone. Adding was
done with pencil and paper. Writing was done
with a quill pen and every man wrote his own let­
ters. The secretary or stenographer, and especially
the female stenographer, were still very far away.
In fact, the first women stenographers did not enter
Wall Street life until the ’90’s, and were extremely
scarce until the turn of the century.
Customs and
methods change
with the times,
but th e pur­
poses of Wall
Street and all
that the name
comprises have
always
been
the same— to
obtain and pro-

W

M o s t o f t h e W a ll S t r e e t lea d e rs r o d e t o
b u s in e s s in th e ir p r iv a te ca rr ia g es a n d f o u n d
th e m m u ch m o re p le a s a n t a n d r e lia b le th a n
th e e a r ly a u to m o b ile s .




vide the money
fo r the ad-

Vancement

Of

b y

Arnold Hofmann

enterprises and worthy inventions. It is an in­
spiration to us to contemplate that as a recorder
and chronicler we have over this century had a
part in noting the work of banks, investment bank­
ers, and brokers in building the commerce and in­
dustry of this country to its present proportions,
in helping to develop epoch-making inventions to a
point where they are a benefit to all mankind and
furnish employment to millions.
The reaper, the harvester, the telegraph, the sew­
ing machine, the telephone, the incandescent light,
th e
phono­
graph,
the
x-ray, the vul­
canization o f
r ub b e r ,
the
pneumatic tire,
wireless teleg­
r aphy,
the
radio, the gaso­
line engine, the
automobile, the
typewriter, the
air brake, the
Tim e w as w h e n e v e r y b a n k e r a n d b r o k e r
airplane --- a ll w r o te h is o w n l e t t e r s , a n d w ith a q u i l l p e n
these and many to°"
more world-revolutionizing inventions have taken
place during the 100 years of our existence and
have been built up by the enterprise of indus­
trial leaders backed by the resources of Wall Street.
When business, carried away by its own enthusiasm,
beats the drum of progress too vigorously, panics
follow, but thus far at least it has always been
found that, after the smoke of disaster cleared, the
country was another step ahead.
From the time of its inception in the good old
Dutch days of Peter Stuyvesant, Wall Street has
been America’s most conspicuous street. Built of
palisades, the wall from which the street took its
name was put there to keep out the Indians. The
first pool to finance an operation was made at that
time and all those who considered the wall a good
investment contributed toward its erection.
It was not an entirely profitable investment, for
after a time the British came and took the little city
away from the Dutch, wall and all. But Wall
Street remained important and became the choice
residential street of the new owners. Then, in turn,
the British lost the city to the new republic called
the United States, and Wall Street had the distinc­
tion of becoming the scene of the inauguration of
Washington as first President. Congress met in Fed­
eral Hall, at the corner of Wall and Nassau Streets,
and Alexander Hamilton, who lived across the
street, Jefferson, Adams, Knox and all the outstand­
ing leaders of the Revolution and founders of the
Nation trod cobbled pavement of old Wall Street.
(C ontinued on page

2792)

Volume 149




ONE HUNDRED The Commercial & Financial Chronicle—Y E A R S OLD

2791

—

BANKING SCOPE

T

HE Chase National Bank serves a varied and exten­

sive list o f customers w h o

represent, collectively

a cross-section o f the econ om ic life o f the U nited States
Business m en the country over utilize, directly or through
their ow n banks, the national and international banking
services of the Chase and capitalize on its k n ow led ge o f
markets and financial conditions to facilitate their dom es­
tic dealings and to speed their goods to other countries.

THE CHASE NATIONAL BANK
OF THE CITY OF NEW YORK
Member Federal Deposit Insurance Corporation

-V

sC '
"

2792

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939
—

Tlie first city directory published in 1786 lists
besides the fashionable and notable residents of
AVall Street one apothecary, three auctioneers, one
grocer, six merchants, two tailors, one clock maker,
one printer and bookseller, one snuff and tobacco
manufacturer, one owner of a vendue and commis­
sion store, one tavern keeper, one owner of a “ porter
house,” one milliner, one school teacher and an
upholsterer.
On May 28, 1786, Richard Varick, Recorder of the
city and later Mayor, moved into 52 AVall Street, a
house previously occupied by Colonel AV. S. Living­
ston. During the same month Edward Fogarty
announced that attendance hours at his school at
46 A rall Street would be from 9 to 12 a. m. and
A
2 to 5 p. m. each day.
In 1786 stables occupied the site now known as
55 AVall Street, head office of the National City
Bank. The owner advertised them in the New York
“ Gazeteer” of that years as follow s: “ Four or five
stables in AVall Street to let, opposite Colonel
AVilliam Livingston’s, with stalls for from two to
four horses, rooms for carriages and large lofts for
hay.”
AVilliam Livingston was a political leader of his
day and became the first Governor of New Jersey.
His daughter, Kitty, close friend of Mrs. Alexander
Hamilton, was a famous belle.
In 1709 the first established slave market was
erected at the foot of AVall Street, occupying the
site of the ancient half-moon fortification and block
house of the Dutch era. This market was also used
in after years as a meal market, by which name it
was commonly known, although it still continued as
the established place “ where slaves stood for hire.”
In 1686 the mail arrangements were as follows:
Arrivals, from New England and Albany, on
AVednesdays and Saturdays at 7 p. m. in the winter,
and on Tuesdays, Thursdays and Saturdays at 8
p. m. in summer. From the South, on Saturdays
and AVednesdays at 10 a. m. in the winter, and on
Mondays, Wednesdays and Fridays in the summer.
The departures were on intervening days.
The value of property in the street began to in­
crease rapidly before the beginning of the nine­
teenth century. Some idea of its relative value
during the eighteenth century may be gathered from
sales at different intervals.
In 1700 a house and a lot on the southeast corner
of Wall and Broad Streets, 16x30, sold for $815.
In 1706 a house and a lot on the north side of AVall
Street, 25x116, sold for $580. In 1737 a house and

—

lot on the north side of AVall Street, 62x102, sold
for $550. In 1793 the dwelling and lot of General
Alexander Hamilton on the south side of AVall
Street, 42x108, sold for $12,000. In 1794 a house
and lot, 44x51, sold for $12,550.
Among the notable features in AVall Street, prior
to the Revolution was the Pitt Statue, which on
Friday, Sept. 7, 1770, was fixed upon its pedestal
at the junction of AVall and AVilliam Streets amid
the acclamations of a great number of the inhabit­
ants. The statue was of fine white marble, having
a Roman habit, the right hand holding a scroll
whereon was the sentence “ Articuli Magnae Cliartae
Libertatum.” The left hand was extended, the fig­
ure being in the attitude of one delivering an ora­
tion. On the south of the pedestal was the inscrip­
tion, “ The statue of the Right Honorable AVilliam
Pitt, Earl of Chatham, was erected as a public
testimony of the grateful sense the colony of New
York retains of the many eminent services he ren­
dered America, particularly in promoting the repeal
of the Stamp Act.”
When the first United States Congress met in
AVall Street it was necessary to find lodgings for
the Senators and Representatives of the 13 States
as well as for President A rashington and ViceA
President John Adams. The President leased the
home of Samuel Osgood, later President of the City
Bank at No. 1 Cherry Street. Mr. Adams went to
live at the Richmond Hill Mansion, near what is
now Varick and Van Dam Streets. The others,
according to the Congressional Directory of the
Congress of 1789, took up their abode as follow s:

Senators
New Hampshire: John Langdon, 37 Broad Street;
Paine AVingate, 47 Broad Street. Massachusetts:
Tristam Dalton, 37 Broad Street; Caleb Strong, 15
Great Dock Street. Connecticut: AATlliam Samuel
Johnson, at the College; Oliver Ellsworth, 193
AVater Street. New Jersey: Johnathan Elmer, 48
Grout, 47 Broad Street; George Leonard, 15 Great
Dock Street. Pennsylvania: William Maclay, at
Mr. Vandolsen’s, near the Bear Market; Robert
Morris, 39 Great Dock Street. Delaware: Richard
Bassett, 15 AVall Street; George Read, 15 Wall
Street.
Maryland: Charles Carroll, 52 Smith
Street; John Henry, 27 Queen Street. Virginia:
William Grayson, 57 Maiden Lane; Richard Henry
Lee, at Greenwich. South Carolina: Pierce Butler,
37 Great Dock Street; Richard Izard, in Broadway,
opposite the French Ambassador’s. Georgia: Wil-

A n i n t e r e s t in g o ld view o f t h e fin a n c ia l d is tr ic t s h o w in g t h e n o r th sid e o f W a ll S tr e e t b e tw e e n W illiam a n d P ea rl S tr e e ts in tw o s e c ti o n s drau
co m es t h e U n ite d S ta te s M o r tg a g e C o m p a n y a n d n e x t t o th a t th e C ity B a n k a n d th e N ew Y o rk L ife I n s u r a n c e a n d T ru st C o m p a n y . A b o v e th is Mos
N ew Y o rk F ire I n s u r a n c e C o m p a n y a n d G e o rg e A . E va n s, d e a ler in iro n a n d s t e e l ra ils o n t h e s ite n o w o c c u p i e d b y t h e S ea m en ’ s B a n k fo r Saving




Volume 149

ONE HUNDRED—T h e

Com m ercial & Financial Chronicle— YEARS

iam Few (second President of tlie City Bank), 90
William Street; James Gndd, 34 Broadway.
Representatives

New Hampshire: Nicholas Gilman, corner Smith
md Wall Streets; Samuel Livermore, 37 Broad
Street; Benjamin West, 37 Broad Street. Massa­
chusetts: Fisher Ames, 15 Great Dock Street; Elbridge Gerry, corner Broadway and Thames Street;
Benjamin Goodhue, 47 Broad Street; Johnathan
Grout, 47 Broad Street; George Leonard, 15 Great
Dock Street; George Partridge, 15 Great Dock
Street; George Thatcher, 47 Broad Street; Theo­
dore Sedgwick, 15 Great Dock Street. Connecticut:
Benjamin Huntingdon, 59 Water Street; Roger
Sherman, 59 Water Street; Johnathan Sturgis, 47
Broad Street; Johnathan Trumbull, 195 Water
Street; Jeremiah Wadsworth, 195 Water Street.
New Y ork: Egbert Benson, corner King and Nassau
Streets; William Floyd, 27 Queen Street; John
Hathorn, at Strong’s near Albany Pier; Jeremiah
Van Rensselaer, at Strong’s near the Albany Pier;
John Lawrence, 14 Wall Street; Peter Sylvester,
45 Maiden Lane. New Jersey: Elias Boudinot, 12
Wall Street; Lambert Cadwallader; 15 Wall
Street; James Schureman, 47 Little Dock Street;
Thomas Sinnickson, 47 Little Dock Street. Penn­
sylvania: George Clymer, at Mr. Anderson’s, Pearl
Street; Thomas Fitzsimmons, at Mr. Anderson’s,
Pearl Street; Thomas Hartley, 19 Maiden Lane;
Daniel Heistes, 19 Maiden Lane; F. A. Muhlenberg,
Speaker, at Rev. Mr. Kunzie’s, 24 Chatham Row;
Peter Muhlenberg, at Rev. Mr. Kunzie’s, 24 Chat­
ham Row; Thomas Scott, at Mr. Huck’s, corner
Smith and Wall Streets; Henry Wynkoop, at Mr.
Vandolsen’s, near Bear Market. Delaware: John
Mining, 19 Wall Street. Maryland: Daniel Carroll,
52 Smith Street; Benjamin Sontee, 15 Wall Street;
George Gale, 52 Smith Street; Joshua Seney, 15
Wall Street ;William Smith, 52 Smith Street;
Michael Jenifer Stone, 15 Wall Street. Virginia:
Theodore Bland, 57 Maiden Lane; John Brown, 19
Maiden Lane; Isaac Coles, 58 Maiden Lane;
Samuel Griffin, at the White Conduit House, near
the Hospital; Richard Bland Lee, 15 Wall Street;
James Madison Jr., 19 Maiden Lane; Andrew
Moore, 15 Wall Street; John Page, 19 Maiden Lane;
Alexander White, 19 Maiden Lane; Josiah Parker,
57 Maiden Lane. South Carolina: Edanus Burke,
at Mr. Huck’s, Wall Street; Daniel Huger, at Mr.
Huck’s, Wall Street; William Smith, in Broadway,
next the Spanish Minister’s; Thomas Sumter, 40

OLD

2793

Wall Street; Thomas Tucler Tucker, at Mr. Huck’s.
corner Smith and Wall Streets. Georgia: Abraham
Baldwin, 193 Water Street; James Jackson, 53
Broadway; George Matthews, 53 Broadway.
With the departure of Congress to Philadelphia,
and later to Washington, Wall Street lost its politi­
cal brilliance but rapidly became again a power as
the financial heart of the Nation.
The great era of railroad building was under way
by 1835. The Harlem RR. stock went up from 64
to 100 in five months; Mohawk Utica & Harlem,
New Jersey RR. & Transport Co., and Providence &
Boston RR. were in great demand for investment
and in 1838, Wall Street handled $40,000,000 in rail­
road stocks. Foreign capital fairly flowed into the
country for railroad investments, and it is esti­
mated that $400,000,000 of European money went
into the building of American railroads in the first
50 years. But the issues of transportation stock in
that year were surpassed by $60,000,000 in bank
shares and $50,000,000 in canals, in which the Erie
Canal, the Delaware and Hudson, and the Morris
Canal of New Jersey were leaders.
In 1840 many new projects were supported by
the Exchange; 23 insurance companies, capitalized
at $6,000,000,000; 33 banks, capitalized at
$ 12,000,000.

By 1845 the railroad mileage of the country
reached a total of 4,000 miles, which meant that
more rails had been laid in the United States than
in all of the Continental countries combined. As
an outgrowth of the increased transportation facili­
ties, there came new industries, thus creating new
cities needing public utilities, and all affording
attractive opportunities for investment. American
industry in 1850 had a capitalization of half a
billion dollars, practically all of which was the
direct or indirect outgrowth of New York Stock
Exchange activities.
The years between 1859 and 1873 were the golden
harvest times of great American fortunes. The Civil
War boomed all stock. There was an ascending mar­
ket to 1873. Michigan Central, Michigan Southern,
Cleveland & Pittsburgh, Rock Island Chicago &
Burlington, and Pacific Mail were mounting with
the country’s westward expansion. Erie went up
to 126 in 1864 and Harlem to 285. Then came the
great panic of 1873. The market slumped for
over seven years, but in 1881 and 1882 it revived
and then surpassed all former activity. The price
of a seat on the Exchange rose to $32,000. During
(Continued on page 2796)

an artist in 1879. A t the extreme left is the site o f the present Bank o f America building, next to it is th e old Bank o f New York building. Next
president o f the City Bank, carried on his own business. Other businesses listed on the street are the M anhattan Fire Insurance Com pany,
th e quaint carriages and om nibuses and also the little steam locomotive drawing the elevated train.




ONE HUNDRED T h e
—

2794

Com m ercial & Financial Chronicle —

YE A R S OLD Nov. 4, 1939

st a t e
E sta b lish ed .

1812

and

M UNICIPAL
BONDS
M EM BER

FED ERAL

IN S U R A N C E

D E P O SIT

C O R P O R A T IO N

♦

Municipal Bond Department

H ead

55 W

O ffic e :

all

St r eet

N ew Y ork C it y




The National City Bank
of N ew York

Volume 149

ONE HUNDRED

—

T h e Com m ercial & Financial Chronicle —

Y E A R S OLD

TIMELY SERVICE

for Exporters and Importers
In the months to come, foreign trade with some parts of the
world is likely to show substantial increase. On the other hand,
shipments to and from other countries may be subjected to
various restrictions.
Manufacturers Trust Company, with a large and highly
trained Foreign Department personnel at its principal office,
and with correspondents in all parts of the world, is in a
position to render valuable service to manufacturers and
merchants engaged in overseas trade.
TO EXPO R TER S
we furnish our "Exporters Handbook,” which contains current
information on exchange regulations in foreign countries. This
book of over 100 pages is in looseleaf form, and is kept up to
date by our revision service.
T O IM P O R T E R S
we make available the extensive facilities of our Commercial
Letter of Credit Division, which is recognized as one of the best
organized in this city, and which can be of considerable assist­
ance in working out import problems.
T O E X P O R T E R S A N D IM P O R T E R S
doing business in foreign currencies, we offer the services of our
active Foreign Exchange Trading Division, which continues to
execute a large volume of business on both sides of the market
despite rapidly changing conditions.
We cordially invite inquiries fro m companies engaged in foreign trade

Manufacturers Trust Company
Principal Office and Foreign Department: 5 5 Broad Street, New York




European Representative Office: 1, Cornhill, London, E. C. 3
•

Member Federal Reserve System
Member New York Clearing House Association
Member Federal Deposit Insurance Corporation

2795

2796

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD
—

1882 transactions valued at $7,000,000,000 were
consummated on the floor of the Exchange. In
1899, with the ending of the Spanish War, the
United States awoke to its reality as an empire,
with great new responsibilities in the Caribbean
and the Pacific. Interests in Far Eastern com­
merce quickened the imaginations of great pro­
moters as they once had those of the merchant
princes of the old China trade. It is estimated
that 90% of the stocks listed on the Exchange
advanced. As many as 1,500,000 shares a day
changed hands in Wall Street. By 1900, 199,000
miles of railroad had been constructed and the value
of our manufactures was $11,000,000,000.
With the new century came the great financial
impetus to industrial consolidation engineered by
the magnates of Wall Street. Such colossal com­
panies as the American Sugar Refining Co., the
American Tobacco Co, the American Car & Foundry
Co., and the International Paper Co. were capital­
ized at hundreds of millions. The prosperity of the
country verified faith in the future. Vast fortunes
were reaped by the great capitalists behind the con­
solidation movement.
During the Civil War the Exchange had been
housed on the corner of Wall and Beaver Streets.
In 1865 it was established in the first constructed
portion of its present beautiful building at 10
Broad Street, designed by James Renwick, the
architect of St. Patrick’s Cathedral and Grace
Church. In 1923 the original Exchange building
was greatly enlarged by the addition of its exten­
sion to Wall Street.
When Cyrus W. Field completed his great cable
in 1867, and Europe and America spoke to each
other over the deep sea cables of the Atlantic, the
New York Stock Exchange was empowered to sell
securities in European markets on the same day
they were selling in New York. With the first
arbitrage deals the Stock Exchange assumed the
international character which has made it the prime
agency of international finance in this country.
From the early days of Captain Kidd, who was a
respected resident of Wall Street before he turned
pirate, the Street has never been without its colorful
figures, great organizers, daring plungers and gay
spenders, good losers.
Two famous early-day speculators of this type in
Wall Street were Jacob Barker and Jacob Little.
Jacob Barker was a vigorous figure. He succeeded
Nathaniel Prime as the most potent banker of
the Street. His notes were Wall Street’s currency,
even when he was losing heavily, for the Exchange
felt confident Jacob Barker would make another
fortune and honor them. An old history tells us
that so interested was Jacob in his affairs that he
would not go home to dinner. He challenged David
Rogers to a duel because
he got ahead of him in
starting a bank.
He
owned many ships, and
saved pilotage on them
when they left New York
~ harbor by steering them
out himself. During the
War of 1812 he assisted
Going downtown from i4 th the Government to the
S tr e e t t o W all S tr e e t w as q u it e
extent Of $100,000 by piira n a d v e n tu r e in t h e h o r s e c a r
.
,. ,
,
„
d a ys, e x p e c ia lly fo r a la d y .
CliaSlllg that amOUllt Of



—

Nov. 4, 1939

its securities. Jacob
Little was called the
“ Napoleon” of W a l l
Street. He had come
from Newburyport and
opened an office in a
Wall Street basement,
following an appren­
ticeship in Jacob Bar­
ker’s store. He made
and lost three fortunes
in railroad i n v e s t ­
ments, but his sus­
pended p a p e r s
considered better
A ll b o o k k e e p i n g Was d o n e by
the checks of
h a n d a n d in t h e la te w in te r a f t e r ­
n o o n s b y k e r o s e n e la m p o r c a n d le
men. The Civil
lig h t.
swept away his
fortune. The man who was seen daily on the Ex­
change for years died saying: “ I am going up.
Who will go with me?”
Cornelius Vanderbilt was rated “ among bears the
most bearish; among bulls the most bullish.” It
was his policy to buy the controlling interest in a
company and lock up the stock. In this way he
secured for himself the mastery of Eastern trans­
portation. His greatest rival was Daniel Drew,
the “ Great Bear” of Wall Street, who continued to
operate on the Exchange at the ago of 72. Both
he and Commodore Vanderbilt operated through
brokers and never appeared on the Exchange floor
themselves. “Uncle” Daniel, as his contemporaries
called him, had been a barefoot cattle boy who made
his original fortune as tavern keeper at Bull’s Head.
He first appeared in Wall Street in 1836. His cus­
tom was to buy a million dollars’ worth of stock
at a time. He was often a heavy but gallant loser.
He lost $500,000 in a corner on Harlem RR. If he
set out to crush an opponent by bulling or bearing
the market, he had the power to do it. It was said of
him : “ His touch is death.” However, Daniel Drew
was an ardent churchman, and at his death left part
of his fortune to found Drew Theological Seminary.
Thomas R. Agnew was celebrated for his “ Midas
touch” because of the persistent good luck that
characterized his Exchange deals. In 1845 Henry
Brevoort was another daring operator in the
Street, dubbed by his colleagues “ the millionaire.”
The career of Henry N. Gifford, a lawyer conspicu­
ous on ’Change in 1845, was, according to his biog­
raphers, meteoric. He made his fame as a broker
in Wall Street, “ where he operated to an extent to
justify his most sanguine expectations.” The foun­
dation for the fortune of Leonard Jerome was laid
in the panic of 1857. The ostentatious wealth of
this king of finance made him a popular fellow as
a patron of actors and owner of race horses. But
at a single drop in the Exchange he lost $800,000,
and finally all of his great fortune of $6,000,000
went by the board. James Fisk Jr., or “ Jubilee Jim”
as he was called, came to Wall Street as assistant to
Daniel Drew. As a manipulator of railroads Van­
derbilt alone was his peer. The climax of his un­
scrupulous methods came in the Black Friday of
1869, when he and Jay Gould attempted to corner
the gold market. His instinct for coining money
was well illustrated when he bought the Grand
Opera House, moved in the Erie Railroad’s general
0Continued on page 2798)

Volume 149

ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD
—

—

Corn Exchange Bank Trust Co.
ESTABLISHED 1853

A Bank Statement that any M a n or W om an can Understand




Condensed Statement as at Close of Business September 30th, 1939

Due Individuals, Firms, Corporations and Banks

. $329,420,341.29

To meet this indebtedness we have:
Cash in Vaults and Due from B a n k s....................... $136,209,114.30
Cash Items in Process of C o lle c t io n .....................
15,465,034.91
U. S. Government S e c u r it ie s ................................ 119,336,598.65
(Direct and fully guaranteed, including $3,051,000
pledged to secure deposits and for other pur­
poses as required by law.)

Canadian Government S ecu rities..........................
State, County and Municipal Bonds
. . . .
Other Tax Exempt B o n d s .....................................
Railroad B on d s..........................................................
Public Utility B o n d s ...............................................
Industrial and Other B o n d s ................................
18,000 Shares Federal Reserve Bank of N . Y . . .
2,499 Shares of Discount Corp. of N . Y . at cost . .
9,990 Shares of Corn Exchange Safe Deposit Co. .
Sundry S ecu rities.....................................................
Secured Demand L o a n s ..........................................
Secured Time L o a n s ...............................................
Moans and Discounts U n s e c u r e d ..........................
*First M o r t g a g e s ....................................................
Customers’ Liability on Acceptances.....................
*Banking Houses Owned
.....................................
*Other Real Estate O w n e d .....................................
Accrued Interest R e c e i v a b l e ...............................
Other Assets...............................................................

4,978,312.34
3,949,336.41
5,785,235.96
5,673,756.93
7,361,634.67
2,925,146.46
900,000.00
299,880.00
824,000.00
387,735.00
14,817,093.34
1,994,164.72
9,935,871.40
17,945,685.86
864,671.91
12,055,118.92
1,955,575.45
1,124,412.62
148,676.12

Total to Meet Indebtedness..................................$364,937,055.97
This l e a v e s ................................................................... $35,516,714.68
* Less Reserves.

Capital $15,000,000.00; Surplus and Undivided Profits, $20,516,714.68

We can act as your Executor or Trustee, issue Letters o f Credit, Travelers’
Checks and Drafts on Foreign Countries and provide
every Banking and Trust Service
74 Branches located in all Parts o f the City of New York.
Member Federal Deposit Insurance Corporation.

2797

2798

ONE HUNDRED
—The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939

offices for good publicity, and continued to run the
theater at a large profit every night.
Then also there were the great builders of for­
tunes and enterprises.
John Jacob Actor, who arrived from Germany in
the steerage with seven flutes as his only worldly
possession, changed his musical instruments for a
few fur pelts, which became the foundation of the
greatest fortune of his day, $50,000,000, acquired
by his pioneer imagination and lifelong industry.
Across a continent of wilderness he opened trading
posts on the Northwest Coast. He sent his ships
across the Pacific, and they sailed home around the
Horn, coming into New York harbor laden with tea
and silks from China, where they had sold their
furs. He made shrewd investments in real estate
in New York. In his old age it was estimated that
John Jacob Astor’s financial assets brought him
$2,000,000 a year.
Stephen Whitney, well-known as a cotton specula­
tor, was regarded, next to Astor, as the richest man
in New York. His fortune, $10,000,000 in 1845, was
made in real estate. William Bayard Jr., President
of the Chamber of Commerce and a trustee of
Sailors’ Snug Harbor, owned the Tontine Coffee
House, the first office building in the city, and by
his business concentration accumulated quite a
fortune.
The Aspinwall brothers, Gilbert and John, who
had made their wealth in shipping and jobbing,
were among the first directors of the Second Bank
of the United States. John Watts, with a personal
fortune of $300,000, was active in financing the
building of the Merchants’ Exchange, which was to
enhance all the business life of New York.
Among the wealthy men of New York City who
subscribed thousands to the Federal loan of 1813-14
to finance our “ second war of independence” were
Benjamin Bailey, Philip Brasher, Isaac Clason,
H. C. deRhom, Robert Chesebrough, James Thomas,
Douglas Alonson, L. Bleecker and Peter Schenck.
Peter Schenck’s indomitable “ business as usual”
principle caused him, during the blockade, to have
cotton carted overland 900 miles from South Caro­
lina to Fishkill Landing, N. Y.
John Wilkes, long associated with the Bank of
New York, and eventually its President, was sent
to London in 1822 to negotiate a loan of £200,000
with the famous firm of Baring Bros., which he con­
cluded at 5% for eight years, thus inaugurating
the era of New York’s international transactions in
finance. James McBride, from Armagh, Ireland,
chandler and founder of The Friendly Sons of St.
Patrick, was interested in many early banks and
insurance companies. Jacob Lydig, whose family
fortune originated in his father’s business of supply­
ing ship-biscuit to vessels spreading sails for far sea
journeys, was for half a century a director in every
new banking and insurance company in the city.
Robert Lenox, one of the five richest men in
New York, out of his financial experience furnished
advice to Nicholas Biddle, President of the Second
Bank of the United States. George Griswold, a
great merchant shipper and an expert on marine
insurance, gave lavishly of his fortune to the people
of the suffering city during the yellow fever plague
of 1822. Other names to be found on many boards
of directors of new financial institutions were
Henry Eckford, Richard Harrison, Walter Bowne,



—

Peter Remsen and Eleazer Lord, who wrote an excel­
lent treatise on banking.
Faith in the magnificent enterprise of developing
a new country dominated men of New York, whose
imagination and capital made possible the era of na­
tional expansion measured by the 75 years between
1825 and 1900. With ceaseless energy they were the
promoters of the Nation’s trade, railroads, cities
and industries. The unique economic opportunities
of a young country called forth their power to com­
bine the creation of personal fortunes with their
work for the prosperity of the United States. They
made their city the financial capital of the Nation.
The pioneer enterprise of opening up the conti­
nent had been begun by that famous old merchant,
John Jacob Astor, who blazed the trail westward
against the odds of treachery in his own company.
After him came, in the next generation, the railroad
financiers, who built the great steel highways over
which civilization crossed frontier after frontier.
Between 1860 and 1870 the railroad mileage of the
country increased from 30,635 to 52,914 miles. By
the next decade it had reached 93,296 miles.
Cornelius Vanderbilt developed the New York
Central RR., and by clever manipulation of the
stock market acquired control of the first system of
railroads. His competitor was Jay Gould, who
launched the Erie enterprise. Moses Taylor, Presi­
dent of the National City Bank, with his wealth
backed the feeble Delaware & Lackawanna and
made it a success. Frank Stuart Bond spent 43
years on the Stock Exchange financing railroads,
among them the Philadelphia & Reading. Roswell
P. Flower engineered the Chicago Rock Island &
Pacific stocks into popularity. Henry Keep dis­
covered the value of railroads in the Northwest, and
made a fortune over the famous blind pool of North­
western stock. It was in this road that Jay Cooke
sank his fortunes.
James J. Hill bought a railroad that was “ two
streaks of rust running into the desert,” and from
the wreckage developed his transcontinental sys­
tem, the Great Northern. Collis P. Huntington par­
alleled Hill’s pioneer lines to the Coast. Henry
Keep launched the promising Northern Pacific RR.
stock, and his colleague, Rufus Hatch, made known
to Americans the wonders of Yellowstone Park by
his far-reaching project of making the railroad an
open sesame to the country’s beauty, as well as to
its commercial resources. With the same imagina­
tive grasp of the future, Mr. Hatch became an
energetic promoter of the Panama railroad that
united the oceans before the day of the Panama
Canal. Russell Sage financed 5,000 miles of rail­
road and was identified with 40 roads. The follow­
ing capitalists were also prominent in railroad
financing: Charles L. Colby, Samuel Marsh, John
M c A nerney,
Jonathan Stur1
, _
ges,
Austin
Corbin, Alfred
Sully and Sid­
ney Dillon.
In like man­
ner Wall Street
energy a n d
money put life
T h e a g e o f ra ilro a d b u ild in g b r o u g h t
into the Amer- n e w era o f p r o s p e r i ty a n d e x p a n s io n .
(<
Continued on page 2800)

Volume 149

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD
—
—

2799

Latest News
v i a

ss

I n 1839, the year the Commercial & Financial
Chronicle was founded, New York newspapers
often published "extras” to announce the arri­
val of a ship from abroad. The "British Queen,”
pictured above as she entered New York harbor
on September 20, 1839, carried "highly impor­
tant news” from Europe—news that took 18
days to reach America. Undoubtedly, she also
carried goods whose shipment was financed by
the Bank of New York.
The America of 1839 was far different from
the America of today. There were then only
26 states in the Union. The country was strug­
gling out of the worst panic it had ever suf­
fered, and specie payments had been resumed

B

an k
48
UPTOWN

Established 1 7 8 4




of

only the previous year. The securities traded
on the New York Stock Exchange were chiefly
those of canal companies, railroads, banks and
insurance companies. Industrial America was
still a thing of the future.
By 1839, however, the Bank of New York
had already rendered 55 years of service to
American business and finance. Founded by
Alexander Hamilton in 1784, before the British
troops had evacuated the City, this Bank played
a leading part in the development of America’s
early trade and finance. It helped to establish
many sound banking principles and practices
that have successfully stood the test of the past
century and a half.

N

ew

Y

ork

W all Street — N ew York

OFFICE:

MADISON

AVENUE

AT

63RD

STREET

Persotial Trusts Since 1 8 3 0

2800

ONE HUNDRED
—The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939

ican steamships both coast­
wise
a nd
transoceanic.
From a little Staten Island
market boat, Commodore
Cornelius Vanderbilt evolved
his Atlantic passenger ships.
Daniel Drew promoted the
Hudson Steamboat Co. on
our interior waters. Rufus
Hatch financed the opera­
Early telephoning Was
tion of the Pacific Mail
such a patience-trying
Steamship Line and founded
p ro ced u re th a t m ost
bankers and brokers pre­
the Iron Steamboat Co. of
ferred to use messengers.
New York. The great Webb
Lines of steamships were launched on both oceans.
When Cyrus W. Field was seeking capital for
his experiment in laying a cable across the Atlantic,
he received from Moses Taylor, O. S. Wood, Corrin
Squire, and the men whom their enthusiasm had
convinced, the money to make possible his miracle
of communication that transformed the relations of
the world. Among those who were thus persuaded,
and later generously rewarded, were: Peter Cooper,
David Dudley Field, Chandler White, Marshall 0.
Roberts, Samuel F. B. Morse, Moses Taylor, Daniel
Huntington and Wilson G. Hunt.
When the Civil War broke over the country in
1861 the practical feature of financing the conflict
was shaped in Wall Street. The money was raised
through the sale of Government bonds. Jay Cooke
carried on a national advertising campaign with
agents in every hamlet of every State. The firm of
Fisk & Hatch became the most widely known bond
house in the country through its able handling of
Government securities. At Lincoln’s call, John A.
Stewart left the United States Trust Co., which he
had helped to organize, and served as Assistant
Treasurer of the United States. Richard Henry
Winslow, Moses Taylor, Henry Clews and a score of
other well-known bankers and brokers undertook
the onerous task of turning Government bonds into
cash to arm, feed and clothe the Union Army during
the four hideous years of the Civil War.
The trust movement, which became a recognized
phenomenon of American industry in the nineties,
was primarily promoted through Wall Street, where
the transfer of stock in huge blocks gave individual
capitalists and syndicates control of whole fields
of American labor, productions and merchandising.
Of the new type of trust magnate, J. P. Morgan was
a leading example.
The financial genius of J. Pierpont Morgan
brought into his control more wealth than was
possessed by all of the American Colonies at the
time of the Declaration of Independence. Mr. Mor­
gan first became a conspicuous figure in Wall
Street when, in 1873, he took over the Government
business of Jay Cooke when the failure of that
house precipitated the great panic. With Levi P.
Morton, he assisted in negotiating the refunding of
$700,000,000 worth of United States bonds between
1876 and 1878, thus reviving European faith in
United States securities. In 1895 Mr. Morgan
agreed with President Cleveland to furnish $62,000,000 worth of gold to break the gold famine fol­
lowing the panic of 1893. When the railroad boom
broke in the early nineties, due to the great over­
expansion of construction, and half of the railroads
of the country went into the hands of receivers, Mr.




—

Morgan was the one man who could engineer the
capital to rehabilitate them. He reorganized the
Big Four System, the Southern RR., the Reading,
the Erie, and the Northern Pacific, underwriting
their liabilities and restoring them to a paying basis.
With a sure hand he initiated the era of rail­
road consolidation. The first of his many inter­
national negotiations was floating the British war
loan for $50,000,000 in 1901, the first foreign war
loan ever offered in the United States. In 1903 the
Roosevelt Government arranged with him for the
$40,000,000 with which to purchase the French
rights in the Panama Canal. The supreme accom­
plishment of his brilliant skill in managing vast
financial projects was his creation of the United
States Steel Corp. in 1901. This was the biggest
combine ever attempted, a billion dollar consolida­
tion, including industrial plants, railroads and
banks by the score. He and his syndicate bought
out Andrew Cargenie’s steel interests for $447,000,000, the greatest sale in the history of the world.
The steel merger controlled interests in the Illinois
Steel Co., Federal Steel Co., American Steel & Wire
Co., and the American Steel & Tinplate Co. Both
the Rockefeller and Morgan millions were merged
in this great trust. Former Judge Elbert Gary, as
their corporation counsel, drafted its charter and
constitution. In the panic of 1907 Mr. Morgan
came to the rescue of the Knickerbocker Trust Co.
when it was undergoing an unprecedented run to
the extent of $34,000,000. In that year, to save a
famous Wall Street firm from bankruptcy, he
bought the Tennessee Coal, Iron & RR. Co., chief
competitor of the United States Steel Corp., for
$30,000,000 in bonds. These mighty operations
of the great captain of American capital made him
the most spectacular figure the financial world has
produced.
The one man who rivaled J. P. Morgan as a rail­
road organizer was Edward H. Harriman. Start­
ing with the New York New Haven & Hartford as
a nucleus, Mr. Harriman, by daring strategy in the
stock market, secured control of a railroad empire
of 75,000 miles. He was a brilliant figure in the
Northern Securities Holding Co., where he came
first into competition, and then into combination,
with the Hill interests. He bought the run-down
Union Pacific, paid the United States $45,000,000
in cash for it, and created a market for its stock,
until the road across “ the great American desert”
became rich enough to act as its own bank. He was
at the height of his ambition as a master of trans­
portation when he died in 1909.
Since 1882 “ 26
Broadway” h a s
not only been the
center of the pe­
troleum industry
of the country,
but the c e n t e r
also of the great
reservoir of capi­
tal developed by
the Standard Oil
Co. The t h r e e
men who made

this

phenomenal ^ was not
.

corporation were

until the turn o f the cen tu ry
that th e “ lady stenographer” made h er
b o w in w a ii s t r e e t .

('Continued on page 2802 )

Volume 149




ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD
—

—

2801

2802

ONE HUNDRED— T h e

Com m ercial & Financial C hronicle —

YEARS OLD

Nov. 4, 1939

John D. Rockefeller, Henry M. Flagler and Henry
H. Rogers.
Almost every field of American production has
had its wheel horse of finance. The name of
Henry H. Rogers is associated with the famous
stock of the Anaconda Copper Mine, known as
“ Amalgamated Copper,” which Mr. Rogers intro­
duced to the New York Stock Exchange.
Andrew Carnegie, Henry M. Frick and Charles M.
Schwab controlled an empire of steel which had
its origin in the Pennsylvania Homestead plant pur­
chased in 1880 by Andrew Carnegie. The era of
industrial consolidation inaugurated by Rockefeller

and Carnegie was carried on by the creation of
such typical trusts as the International Harvester
Co., organized by George W. Perkins; the Amer­
ican Tinplate Co., the National Biscuit Co., spon­
sored by William Henry Moore, and by the merger of
all the lighting companies in New York City
brought about by William C. Whitney. In the
field of Oriental finance, opened by the Spanish
War, Jacob Schiff of Kuhn, Loeb & Co., was one
of the pioneers, when his company handled the
Japanese w'ar loan of 1904. The flow of American
capital into Chinese railroads brought forward
another group of Wall Street financers.

Freeman Hunt

Building the Hoosac Tunnel (North Adams, Mass.),
November, 1873. This country*s first long-distance
railway tunnel— 4 3 a miles long, built at a cost of
/

to claim it. But, shall we confess it? (and it is, per­
haps, for one of those dry statisticians, whom popu­
lar opinion is apt to set down as beings devoid of
feeling, and dealing in no figures but the numerals,
something of a confession) the feeling that influ­
ences us on the occasion is somewhat of the senti­
mental kind.
“ The motive which leads friend to send to friend
the likeness of features which the intercourse of
years and old associations have rendered interest­
ing, is as natural as it is proper. The intercourse
which, during the last 10 years, has existed between
the editor of the ‘Merchants’ Magazine’ and his
numerous readers, the silent intercourse of mind
with mind, springing out of a common interest, on
his part as editor—on theirs, as readers on the same
important topics, is not of precisely the same kind
as that of friend with friend. We shall not, there­
fore, presume to speak for the many readers or
friends (if they will allow us to call them so) in
New York and throughout the United States, cisat­
lantic and transatlantic, and we may say in the
four quarters of the ‘Great Globe itself,’ for whom
we have labored during the last 10 years. What
may be their feelings towards the humble individual
who has, in this work, put forth his best energies
to supply a want long felt, and to furnish to a most
enlightened class of readers, at once, an organ for
their views, and a magazine of information for their
use, it is not for him to guess. But for himself he
can say that, as he has advanced with his work,
every year gaining larger views and a clearer con­
ception of the extent, the length, and the breadth
of the great field of mercantile science, which it
has been his business and his pleasure to explore;
as his information and sources of information have
increased and multiplied; as, in short, his knowl­
edge of his subject, and with it his love of his sub­
ject, have grown and strengthened, a kindly near­
ness of feeling has at the same time grown up in
his own mind towards the large and increasing
circle of readers for whom he has labored, and many
of whom have accompanied him with their approval
and support from the beginning of the work.
“ The difficulties which attended that beginning,
the labors that had to be performed, and the obsta­
cles to be surmounted before the work could be
established upon a broad and safe basis, are known
best to him who is least willing to speak of them—
the editor himself. But this much we may say,
that the idea of the ‘Merchants’ Magazine’ was no
sudden thought, was not suggested by mere acci­
dent. It was a long time the subject of much

$ 12, 000 , 000 .

(Continued on page 2804 )

(Continued from page 2743)

bed, prostrated by a painful disease, he would dic­
tate and arrange work on hand, and direct his secre­
tary, who sat by a table placed at the foot of his
bed. The numbers were issued regularly, and the
last number, that of March, 1858 (that is, the last
number edited by Mr. Hunt), he worked on with his
customary assiduity, though with great physical
pain. A sense of relief came to him the day before
his death, March 1, when the March number of his
magazine was put into his hand completed. He
looked over it and said, with a smile, to a friend at
his bedside: ‘This work has been my hobby in life
and my hobby in death/ ”
But no other person could hope so clearly and so
authoritatively to portray his interest in and his
attitude toward his masterpiece as the editor him­
self. Upon the appearance of the first issue of the
twenty-first volume of his “ Merchants’ Magazine”
he presented his own apologia pro vita sua under
the title “ The Editor to His Friends and Patrons,”
in the following words:
“ We feel that we are taking a sort of liberty (a
liberty, however, for which we shall offer no apol­
ogy) in sending to our readers, with the present
number of the ‘Merchants’ Magazine and Commer­
cial Review’, the first of the twenty-first volume,
and of its second decade, a portrait of the editor.
Some authors deem themselves privileged or licensed
to prefix their counterfeit presentment to their first
book, when their name is as litle familiar as their
features, and their features derive no additional in­
terest from their name. Our 10 years’ labors, our
20 volumes, viginti LIBRORUM lucubrationes,
might perhaps entitle us to an equal right had we
any itch for the digito monstrarier, and felt disposed




Volume 149




ONE HUNDRED

—

The

T h e Com m ercial & Financial C hronicle —

YEARS OLD

D im e S a v in g s
o f B ro o k ly n

D a n k

BROOKLYN, N Y .
Incorporated 1859

OFFICERS
_______ _ _President
PHILIP A. BENSON_________________________
FREDERICK W. ROW E_____________________
Vice-President
_ _ Vice-President
W ALTER H A M M ITT ________________________ ___ __
_ _ Treasurer
GEORGE C. JOHNSON______________________
_Secretary
ROBERT L. FERN ALD______________________
AUSTIN C. CHESHIRE______________________
_ __Comptroller
___ Assistant Treasurer
JOHN D. GRAHAM__________________________
A. EDW ARD SCHERR, J R __________________
_Assistant Treasurer
EUGENE R. SHOTWELL____________________
_Assistant Secretary
CLINTON L. M ILL E R ______________________
_
Assistant Secretary
RAY C. SHEPHERD________________________
-Assistant Secretary
ALFRED R. MARCKS________________________
__ _Mortgage Officer
CLINTON W. P ARK ER _____________________
_
Assistant Secretary
ROBERT D. B AR K E R _______________________
Real Estate Officer
EDWIN H. BIED ERM A N _____ _____________
_Assistant Secretary
GUY L. GOULD_____________________________
_ _ -Assistant Secretary
GEORGE N. M AUGER______________________
Assistant Comptroller
GUSTAV T. ANDREN
---------- Asst. Mortgage Officer
HELEN R. F E IL_____________________________ _____ __ Assistant Secretary

Albert Hutton
Arthur C. Weymann__

_ _
__

_

_ Counsel
_ _Solicitor

TRUSTEES
FREDERICK W. ROWE
WALTER HAM M ITT
FREDERICK L. CRANFORD
W. J. WASON, JR.
EDW ARD C. BLUM
THOMAS H. ROULSTON
JOHN F. BERMINGHAM
PHILIP A. BENSON
ARTHUR L. J. SMITH

JOSEPH K. SMITH
WILLIAM W. WALSH
ALBERT HUTTON
FRANK F. JACKSON
HENRY A. INGRAHAM
GEORGE C. JOHNSON
ROBERT L. FERNALD
CHARLES R. GAY
DE W ITT A. FORWARD

RESOURCES over_____________ __ $232,000,000
DEPOSITORS over____________
204,500
SURPLUS over________________ __ $ 33,500,000

2803

2804

ONE HUNDRED—The Commercial & Financial Chronicle YEARS OLD
—

Freeman Hunt
0Concluded, from page 2802)

Nov. 4, 1939

purposes of the ‘Merchants’ Magazine.’ The editor
regards it as not the least of the happy results of
the labors and studies to which his taste and his
duty have led him in conducting this magazine, that
they have strengthened and confirmed the dispo­
sition to look upon all men as brethren, and to
regard with favor all measures which tend to unite
them together in the unity of peace, and to promote
the reform of ancient abuses, however venerable.
“ If the labors of the editor in this broad field
have availed anything, if in particular he has done
aught to direct literary effort into the hitherto
neglected department of commerce, to promote the
study of it as a science, and to establish something
worthy of the name of the literature of commerce,
he will deem it a matter for rejoicing, but not boast­
ing. Our thanks for the past we need not repeat.
Our promise for the future is best guaranteed by
past performance, and on commencing the twentyfirst volume, and second decennium, the editor feels
that, in the true cosmopolitan spirit towards all
mankind, without mental reservation of any caste
or creed, but with, perhaps, a little heightened emo­
tion towards the readers and patrons of the ‘Mer­
chants’ Magazine’, he can subscribe himself,
“ With great regard, your friend,
“FREEMAN HUNT.”

thought and deliberation before any active steps
were taken towards carrying it out. In casting the
eye around in the difficult search after some useful,
but unoccupied, corner in the wide field of litera­
ture, it seemed to the editor as if every point was
already occupied, every branch represented, except
one, and that the very important subject of com­
merce and the mercantile interest. On the one hand
the professions, the divine, the lawyer, and the phy­
sician, the farmer also, and the mechanic, had each,
one or more organs and exponents in the periodical
press. Even the railroad interest, new as it then
was, had found a voice through the press; while
commerce, more or less connected with all other pur­
suits, was unrepresented. While the business con­
cerns of commerce filled the huge columns of the
daily press with advertisements, and with shipping
intelligence, and with matter relating to the every­
day details of merchandise, on the one hand, there
was not a single magazine, of high or low preten­
sions, either in America or, to the best of our
knowledge, in Europe, to represent and to advocate
the claims of commerce. Those who have seen how
much has been done within the last 10 years, who
have profited by the learned labors of McCulloch
and Macgregor, of Taylor, Tucker, Cary, Kettell,
The April, 1858, issue of the “ Merchants’ Maga­
and Seaman, and have noted how rapidly the class zine” recorded the passing of Mr. Hunt in the fol­
of periodicals devoted more or less directly to mer­ lowing sentences:
cantile subjects has increased, have but an inade­
“ The sad record of the death of Freeman Hunt
quate idea how little had been previously done. finds fit place in the pages of the ‘Merchants’
There were one or two dictionaries of commerce, Magazine’, of which he was the projector, and the
and a few works intended for practical purposes. sole editor and proprietor, from the first day of
But a Literature of Commerce did not exist even in July, 1839, when the first number appeared, until
name. The idea, and the thing itself, were yet to the second of March, 1858, when he died; to which,
be developed. In 1839 the ‘Merchants’ Magazine during the best 20 years of his life, he gave all his
and Commercial Review’ was established, without, business energies, his vigorous intellect, a compre­
we confess, so clear a conception, as after experi­ hensive view of his subject, marked tact and skill
ence has furnished, of the full import of the term in selection and arrangement, and a large experi­
commerce, in its broadest, largest, and truest sense ence as publisher and editor, and which is therefore
or signification. Every branch of industry, almost the truest and fairest memorial of what he was and
every pursuit may be said to come within its range. what he did. But we are not writing his eulogy.
The interest of agriculture and manufactures, which We shall early take occasion to pay that tribute to
produce, are identified with the interests of com­ his worth which he always had ready for the excel­
merce, which distributes. The great topics of lence and eminence of others.
banking and finance, of railroad and canal com­
“ Of the 225 numbers of the magazine, this is the
munication, of mining, and of navigation by steam first that comes to the reader without having
and sail, are all involved in the one great topic of received his personal supervision, although for
commerce. A large part of the legislation of States many months, during his last illness, the chief edi­
and nations is devoted to the regulation of com­ torial duties were confided to friends, who have
mercial operations. Courts of law and equity are contributed for years to the pages of the magazine,
daily deciding points in mercantile jurisprudence, and who are entirely familiar with his editorial
growing out of the constantly varying circum­ views and wishes. To many of our subscribers in
stances of commercial enterprise. How liberalizing foreign lands this number may bring the first news
and expanding are the pursuits of commerce, thus of our loss. There can be, therefore, no impropriety,
understood, in their effect upon the mind is obvi­ now that he is gone, in saying that by all our read­
ous, and is often remarked. The wants and the ers his name will be mentioned, his loss regretted,
necessities of all nations, of all races of men, form as that of one honorably identified with the litera­
elements in the calculations of the true merchant. ture of commerce; and both at home and abroad—
He studies the condition and finds out the wants at Sydney and Hongkong, at Honolulu, Valparaiso,
of all to relieve them. It is his interest, it becomes and Rio de Janeiro, as well as London, Vienna,
also his pleasure to do so. He learns to look upon Paris, and Constantinople, and wherever else
all nations as knit together by the ties of mutual ‘Hunt’s Merchants’ Magazine’ has regular subscrib­
dependence, to regard all men as kindred. The mer­ ers and readers, it will be acknowledged to have not
cantile student learns the same lesson. To teach unfaithfully represented the trade of America and
that lesson has been, and shall be, one of the great the world.”




ONE HUNDRED
—

V olu m e 149

T h e C o m m e rc ia l & F in a n c ia l C h r o n ic le

— YE A R S OLD

2805

P h ila d e lp h ia ’s
La rg e s t a n d O ld e s t B a n k
Congratulates

The Commercial and Financial Chronicle

The Philadelphia National Bank began business one hundred and
thirty-six years ago, and enjoys the distinction of being one of the largest
as well as one of the oldest banks in the country.
To have survived the crises and changes of more than a century is an
indication of sound management and efficient service consistently
maintained.
Age means something other than mere will to survive; greatness, more
than an accumulation of figures.
sound not because they are old.

Institutions, like precepts, are

They are old because they are sound.

THE PHILADELPHIA
NATIONAL BANK




Organized 1803

PHILADELPHIA, PA.
Capital, Surplus and Undivided Profits - - - - $41,000,000
Member of Federal Deposit Insurance Corporation

O EH N R D
N UDE

2806

—

The Commercial & Financial Chronicle —

YE R O D
AS L

Nov. 4, 1939

to him, that he was being praised beyond his
desserts.”
(< o n c l u d e d f r o m p a g e 2743)
C
The tribute from which this extract has been
taken was published upon the occasion of Mr. Dana
“ Three untoward influences have conspired to
prevent our classmate Dana appearing here in a having completed his eightieth year. “ On Thursday
of this week,” the tribute begins, “ Mr. William B.
paper which would have done him justice.
“ First, his modesty; we know how great that was Dana, founder, editor, publisher and owner of the
when we were in college. But it has grown with ‘Chronicle,’ completed his eightieth year. His edi­
his years and his merits. He has been very reluc­ torial and office staff signalized the event by con­
veying to him an expression of their esteem, love
tant to write anything of himself.
“ In May, 1893, I made a personal call upon him and admiration, and by testifying their appreciation
in his editorial sanctum, and he encouraged me to of his services to the community. The anniversary
believe that he would comply with the desire of his was really a double one, for in the latter part of
classmates as soon as he got through the rush of 1859 Mr. Dana began his career as publisher and
business, consequent upon an extended tour for rest editor, so that he is now completing his fiftieth year
in South California. But I had hardly left him in the publication business. Mr. Dana has always
before he was taken severely ill, and for a consid­ been extremely averse to personal mention of any
erable time was unable to attend to business of kind, but members of his staff felt that such an occa­
any kind. Then came on the long-to-be-remembered sion should not go unnoticed.
“ In like manner those responsible for the conduct
financial disturbance in 1893. And this brings me
to say that Dana is our great financial high priest. of the paper during his absence feel that the readers
“ He early devoted himself to journalism and of the ‘Chronicle’ and the general public should not
made a study of finance. The result has been that be kept in ignorance of the event. They think that
he has established the great financial paper of the for this once they are justified in disregarding Mr.
country, ‘The Commercial & Financial Review,’ at Dana’s personal inclinations and desires. Besides,
102 William Street, New York City. A classmate when an editor and his journal have served the com­
has told me that millions of dollars are daily nego­ munity for such a long term, according to high
tiated upon the authority of that paper. Business standards and ideals, the public has a certain claim
men have come to look to it for wise and safe esti­ upon him which cannot altogether be ignored. Mr.
mates of the business condition of the country and Dana conceived the ‘Chronicle’, developed it in con­
cautious judgment of what is to be expected in the sonance with broad and comprehensive ideas, and
near or remote future. The truth about silver coin­ has made it a power and influence in the world.”
In October of the following year (1910) Mr. Dana
age, tariff reform, and sound banking is the great
demand of the time. I suppose, therefore, that he died in the eighty-second year of his age. “ Through
can be excused for not taking even an hour from his the “ Chronicle” , wrote Jacob Seibert Jr., his suc­
cessor as publisher and editor of “The Commercial
over-burdened time to write his life.
“ In private life Dana has made his home a shelter and Financial Chronicle” , up this occasion “ he (Mr.
for those who needed it, and also could bring joy Dana) wielded power and influence to an extent
into it. In his church relations he has been a de­ greater than that possessed by most of the men who
voted lay worker, and multitudes could testify to have been prominent in the public eye. And this
his power for good. In personal appearance he is influence has been continuously exerted through the
very much what his brother, the Yale professor, was whole period of the existence of the paper, for the
editorial policy has been conducted in accordance
in our day.
with such high ideals that the paper never at any
“ He took the M.A. in course.
“ I have pursued Dana for a picture till I was time lost the respect of the community. Men might
differ with its views, but the honesty of its purpose
almost ashamed of myself, but all in vain.”
In view of this truthful and yet very human has never been questioned.”
The files of the “ Chronicle” are at once his biog­
account of Mr. Dana in the flesh, his historian is to
raphy and his monument.
be excused for such relatively minor inaccuracies
as that of referring to “ The Commercial & Financial
Chronicle” as “ The Commercial and Financial Re­
view” !
The fact is, however, that, as the “ Chronicle”
itself said editorially in its issue of Aug. 28, 1909,
“ the history of the ‘Chronicle’ is the history of Mr.
Dana’s life. The success which has attended the
paper throughout its entire existence is evidence of
his skill and ability. The dignity and high tone
maintained in its conduct are indications of his
character and of the lofty aims pursued. And the
progress and development of the paper are marks
of his genius. We think the reader will agree with
this, even if Mr. Dana does not, and protests, as he
An early railroad train such as this served to open the
did when the ‘Chronicle’ staff presented the tribute
great and fertile empire of the west.

William B. Dana




V olu m e 149

ONE HUNDRED—

The Commercial & Financial

YEAR S OLD

2807

^Z^Z^Z^Z^Z^Z^Z^Z^Z^Z^Z^Z^Z^Z^ZTZ^Z^Z^Z^Z^Z^Z^Z^Z^Z^ZTZ^

O

F

U

N

D

E D

I N for 8 1 2 purpose o f insuring lives and
1 the ,

granting annuities, the original corporate title o f this

Company has never been changed. In 1836 the C om m on­
wealth o f Pennsylvania granted a supplement to the Company’s
charter permitting it to engage in the banking business and
to extend its activities to the management o f trusts and estates.
In 1 8 7 2 the initial purpose for which the Company was
founded, that o f insurances on lives and granting annuities,
was discontinued. Since then the Company has operated
exclusively as a trust company, carrying on a general banking,
trust and safe deposit business.

M e r c h a n t s C o ffee H o u s e ,

So .

Se c o n d

St .,

P h il a d e l p h ia

B ir t h p l a c e o f T h e P e n n s y l v a n i a C o m p a n y

THE PENNSYLVANIA COMPANY




fo r Insurances on fives and (granting Annuities
Philadelphia
MEMBER

FEDERAL
MEMBER

DEPOSIT

INSURANCE

FEDERAL

RESERVE

CORPORATION

SY STEM

RESOURCES MORE THAN $ 2 5 0 ,0 0 0 ,0 0 0

2808

ONE HUNDRED—The

Commercial & Financial Chronicle— YE A R S

The start of one of America’ s greatest industries. The
first oil well to he drilled in the United States. It was
in Titusville, Pennsylvania, in 1859.

Jacob Seibert Jr.
(■ o n c l u d e d f r o m , p a g e
C

2743)

Mr. Dana very early placed a large measure of re­
sponsibility upon him, leaving him, for instance, in
entire charge of the editorial columns during his
(Mr. Dana’s) tour of Europe in 1881, when Mr. Sei­
bert was only 24 years of age. During all this time,
too, he directed a number of the paper’s important
departments. He thus became as completely identi­
fied with the paper as was Mr. Dana himself. He
imbibed Mr. Dana’s ideas and was, of course, at
all times in harmony with his policies, and, indeed,
was Mr. Dana’s chief instrument in carrying them
out, becoming thoroughly ingrained with his pur­
poses and views. During the later years of Mr.
Dana’s life the entire direction of the paper de­
volved upon Mr. Seibert.
Upon the death of Mr. Dana in 1910 Mr. Seibert
assumed undivided control of the company, owner­
ship of which he assumed within a short period of
time. Because of his extraordinary vision, he fore­
saw the ultimate effect of current trends in eco­
nomic life. Through his editorial comments he was
instrumental in focusing public attention upon mat­
ters having a vital, and many times harmful, influ­
ence upon world affairs. In numerous instances he
stood momentarily alone in his convictions; he was
not without his critics, but he was staunch in the
attitude he took, and time and again brought to
his way of thinking those who at first opposed him.
Of the many who looked upon Mr. Seibert as an
authority in his writings, it is of interest to record
that Paul M. Warburg, in his voluminous book
analyzing the Federal Reserve System, quoted ex­
tensively from the views expressed by Mr. Seibert
in his many editorials on the Reserve Act. Numer­
ous, too, were the times when he was consulted by
other financiers, eminent newspaper writers, and
members of various congressional and other legis­
lative bodies.




OLD

Nov. 4, 1939

Trained from his youth in an office whose jour­
nalistic standards were high and exacting, Mr. Sei­
bert remained throughout his long career loyal to
the traditions in which he had grown up, while at
the same time devoting himself to the expansion
of the scope of the paper and the increase of its
usefulness as a record of events and an organ of
opinion. Its field, as he saw it, was not limited to
commerce and finance, but properly included all
branches of industry, domestic and international
politics, and such general matters as appealed to an
intelligent public. At the same time he labored un­
ceasingly to maintain its standing as a full and
authoritative record in the special fields of stock
market and exchange transactions, banking and cur­
rency, railway and industrial finance, and the move­
ments of the cotton market. He lived to see the
“ Chronicle” become in these directions, as in the
domains of politics and current events generally, the
most comprehensive weekly journal in the English
language.
By temperament and training Mr. Seibert was
conservative, but his sympathy went out to such
liberal ideas or movements as seemed to him to
harmonize with sound economic and political prin­
ciples. He was an uncompromising defender of the
gold standard, and opponent of high protective tar­
iffs and Government interference in business and
industry, and a stern critic of the unbridled specu­
lation which precipitated the crisis of 1929. He was
at all times an unremitting and vigorous defender
of the traditionally American doctrine of avoiding
foreign entanglements— a line of policy now much
in need of the kind of support he was able to give it.
His views on public policy sometimes brought him
into sharp opposition to the political party in power
or to some prominent agitation of the moment, but
he buttressed his clear statements of what he re­
garded as the sounder policy with facts as well as
logic, and refused to admit to his pages any attacks
upon the motives or sincerity of those whom on
principle he opposed.
Mr. Seibert’s aversion to personal publicity led
him to shun membership in associations or clubs,
and although frequently sought as a speaker on pub­
lic occasions, he invariably declined. His personal
acquaintance, on the other hand, was extraordi­
narily wide. For years a veritable stream of finan­
cial and business leaders, Government officials, pub­
lic men, foreign visitors and newspaper correspond­
ents came to the “ Chronicle” office, while a heavy
correspondence from all over the world brought a
welcome though largely unsolicited contribution of
important information or requests for advice or edi­
torial support. Blessed with a remarkable knowl­
edge of financial and business questions and a for­
midable memory for details, his intellectual keen­
ness and clarity, instinctive sympathy and gracious
courtesy made a lasting impression upon those who
knew him. With his editorial, business and print­
ing staff his relations were simple, friendly and cor­
dial, and to all who were privileged to work with
him his memory is a treasured possession.
Upon his death in 1934 his mantle was donned by
his two sons, Herbert D. Seibert, who is now Chair­
man of the Board and Editor, and William Dana
Seibert, who is President and Treasurer, both of
whom have been identified with the “ Chronicle” for
a long period of years.

Volume 149




ONE H U N D R E DT h e
-

Com m ercial & Financial Chronicle —

YE A R S OLD

-------------------------------------------- --------------------

The UnionT rust Company o f Pittsburgh
OBSERVES ITS
F IF T IE T H A N N I V E R S A R Y

T h e U nion T r u s t Company
o Pittsb u r g h
f
M E M B E R FE D E R A L D EPO SIT I N S U R A N C E C O R P O R A T I O N

Statement at the Close o f Business, September jo, ipjp

RESOURCES

Cash on Hand and in B a n k s..........................$ 74,520,065.47
U. S. Government S e c u r i t i e s .....................

143,548,725.86

Loans and I n v e s tm e n ts ...............................

142,547,510.54

O v e r d r a f t s ....................................................

153.17

Real Estate and V a u lt ....................................

3,900,000.00

Miscellaneous A s s e t s ....................................

1,449,221.67

Letters of Credit (Customers’ Liability)

.

32,613.50
$365,998,290.21

LIABILITIES

C a p ita l....................................................
S u r p l u s ..............................................

$

1,500,000.00
81,500,000.00

Undivided P r o f i t s ...............................

3,045,620.60

R e s e r v e s ..............................................

14,013,158.52

Due D ep o sito rs....................................

265,816,386.43

Other L i a b i l i t i e s ...............................

90,511.16

Letters of C r e d i t ...............................

32,613.50
$365,998,290.21

D IR E C T O R S
J . FREDERIC BYERS

G E O R G E D. L O C K H A R T

A R T H U R V . DAVIS

J . E. M

CHILDS FRICK

W I L L I A M L. M E L L O N

C H A R L E S A. R O W A N

R O Y A. H U N T

RI CH A R D K. M E L L O N

W IL L IA M W ATSON SM ITH

B E N J A M I N F. J O N E S , 3RD

PAUL MELLON

CLARANCE STANLEY

ac C L O S K F . Y ,

JR.

DAVID A. RE ED
W I L L I A M C. R O BI N SO N

L E W I S A. P A R K

Fifty years ago

a small group o f Pittsburghers
formed The Union Transfer and Trust Company
w ith a capital o f $ 2 5 0 , 0 0 0 . 0 0 . H ead in g the
group as President was a shy and retiring man,
Andrew W . Mellon . . .Today, the epochal growth
o f The Union Trust Company o f Pittsburgh is
forcefully told by the simple figures in the
September 3 0 , 1 9 3 9 statement.

2809

B A N K IN G
The history of industry and trade in this coun­
try during the past 100 years, technologically and
managerially considered, is a story of almost in­
credible achievement, so vast and deep-going have
been both the achievements and the improvement in
the efficiency with which goods are created and dis­
tributed to the great rank and file of the people, and
so indefatigable and so successful have been the
engineers and other inventors in making practical
application of the almost innumerable discoveries of
science during the 100 years that have just elapsed.
Mechanically, much the same is to be said of bank­
ing in this country during the same course of years.
Banking facilities have multiplied until practically
everyone now lives at no great distance from a bank
which gladly accepts his funds for safe keeping and
provides convenient means for him to use the funds
so deposited in making payments far and near, and
to such a bank any worthy borrower may apply for
accommodation with assurance. Banking units
have in size kept pace with the growth of individual
enterprises, so that no half-billion dollar corpora­
tion, or for that matter no billion dollar enterprise,
need fear being unable to find lending institutions
large enough to meet its requirements.
If this amazing development and perfection ol
individual enterprises has not in the same degree
been able to give assurance of evenness in the flow
of goods from raw materials to consumer, but still
falls short of preventing or even of mitigating the
severity of what in recent years have become known
as business cycles, that fact is doubtless partly due
to the interference, often blundering even when de­
signed to be helpful, on the part of government, and
partly a result of the fact that the business mechan­
ism has grown infinitely more complex as the years
have passed until it is now in a degree perhaps never
before known a machine so delicately attuned that
relatively little is required to cause serious func­
tional difficulties, but it is likewise without ques­
tion also an outgrowth of the circumstance that we,
no more than the rest of the world, have as yet
come to a thorough understanding of the nature
and proper functioning of banks, but, on the con-

1 8 3 9 -1 9 3 9

trary, in one way or another are still given to the
practice of continually, sometimes unconsciously,
sometimes deliberately, injecting an unstabling
influence into the general situation by means of
unwise banking policies and banking practices.

Banking Ideas In 1839

Precisely what degree of progress we have made
since 1839 in understanding credit and banking in
their larger and more important aspects, it would
be difficult if not impossible to determine. The
country 100 years ago was not wanting individuals
who revealed a clear insight into such matters, and
who could say, as did a writer in one of the very
early issues of the “ Merchants’ Magazine” , that
“ banks should be confined to strict business paper.
It is not our design to attempt to designate the
greatest length of credit discounted paper ought to
run. This will vary in different countries, and in
different branches of business, according to circum­
stances. A general principle may be laid down,
however, which will furnish the true test; and that
is, not to discount paper on very long credit, got
up for the purpose of supplying capital as the
foundation for business. When business is done on
credit, it should be furnished by private capitalists,
and loaned in such a way as not to mix with the
currency of the country. A paper currency, by
furnishing facilities for business, will aid capitalists
in making such loans to those friends in whom they
confide; and in this way alone should banks furnish
any such facilities. That system of making long loans
out of the ordinary course of banking, to the direc­
tors themselves or their favorites, to speculate upon,
should be entirely broken up. If the credit assets
of a bank consist of short business paper, the bank
has them under its control, and can at any time
contract its business when occasion requires.
There is, in principle, the same objection to long
accommodation paper that there is to bills of credit
issued by government with a view to furnish a per­
manent currency, or to a land bank upon Mr. Law’s
scheme. The bank will not have its business suf­
ficiently under control. Individuals getting these
long accommodations will be tempted to indulge in
wild speculations, to the injury of the bank, and
their own ruin. Without some such effective regu­
lation we are satisfied all other restrictions will
prove abortive.”
Today the country does not lack those who would
follow Mr. Keynes’s (and John Law, although not
admitting or possibly without even realizing it)
and make extensive and continuous use of banking
and credit to stimulate or to retard business as
they in their wisdom think the circumstances sug­
gest. Nor are those who reason in this way with­
out influence as attest any a great number of state­
ments issued in recent years, both during and prior
to the New Deal regime, by responsible public
officials, some of whom are now charged with the
responsibility of “ managing” our credit system, and
for that matter by a good many others in positions
Manufacturing and railroading were working in close
of influence in the business and financial world. A
cooperation when this lithograph of Frederick Jones
hundred years ago we had intelligent observers who
& Co.'s shoe factory, of Plymouth, Mass., was made




in 1861.

(<C o n t i n u e d o n p a g e

2812)

Volume 149

ONE HUNDRED T h e
—

Com m ercial & Financial Chronicle —

Y E A R S OLD

The First National
Bank o f Chicago
Statement o f Condition October 2 , 1 9 3 9
ASSETS

Cash and Due from B a n k s , ........................................ $444,959,555.05
United States O bligations— Direct and fully Guaranteed,
Unpledged................................................ $298,899,740.44
Pledged—To Secure Public Deposits, • 30,914,111.28
To Secure Trust Deposits, • 33,801,551.80
Under Trust Act of Illinois,
550,000.00
364,165,403.52
Other Bonds and S e c u r i t i e s , ........................................
Loans and D i s c o u n t s ,.......................................................
Real Estate (Bank B u i l d i n g ) , ........................................
Other Real E s t a t e , .......................................................
Federal Reserve Bank S t o c k , ........................................
Customers’ Liability A ccou n t o f A cceptances, .
.
Interest Earned, n ot C o l l e c t e d , ................................
Other Assets,
...............................................................

72,715,202.43
251,563,176.08
5,941,630.73
1,262,481.42
1,875,000.00
1,881.911.79
3,855,084.42
370,700.50
$1,148,590,145.94

LIABILITIES
Capital S tock— C o m m o n ,......................................................$30,000,000.00
Surplus F u n d , ...............................................................
32,500,000.00
Other Undivided P r o f i t s , ...............................................
5,180,452.81
D iscount C ollected bu t n ot Earned,
. . . .
650,527.99
2,350,482.15
Reserve for Taxes, e t c . , ...............................................
Liability A ccou n t of A c c e p t a n c e s ,................................
2,357,003.75
Time Deposits,
................................$178,462,479.38
Demand D e p o s i t s , ................................ 806,320,201.37
Deposits o f P ublic Funds, .
.
.
90,767,695.12 1,075,550,375.87
Liabilities other than those above stated,




.

.

.

1,303.37
$1,148,590,145.94

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

2811

2812

ONE HUNDRED

—

T h e Com m ercial & Financial C hronicle —

YE A R S OLD

Nov. 4, 1939

Credit Abuse at All Times

First Elevated Railroad. Charles T. Harvey, President
of the first Elevated Railroad, the West Side and
Yonkers Patented RR., which later became the Ninth
Avenue Railroad, New York, demonstrating that a car
would not fall off the track in 1868.

Banking 1839-1939
(.Continued from page 2810)

clearly saw that “the greatest abuses to which credit
has been applied in this, and in almost every other
country, have grown out of the confusion which
has been generally made of the interests of the
sovereign power with those of commerce,” as a
writer in an early issue of “ Hunt’s” phrased it.
This student, whose words are quite well worth
noting 100 years later, further pointed out that
“ the violation of private credit has, it is very true,
been frequently made the instrument of injury to
an industrial community— but against this the indi­
vidual citizen finds, in the sense of injury received,
a sufficient warning ever after. The instances of
extensive and permanent ruin from this cause are
few, compared with those which have taken their
origin from the connection of political passions with
public credit. The Government of a country never
can be, in the nature of things, a fit originator of
all the credit which may be put in the place of coin
in the community, for the reason that it ordinarily
acts under a set of motives wholly different, and
partially at war, with those which regulate the
movements of commerce. The administration of
public affairs embraces a very wide circle of duties,
and is operated upon by almost every event of im­
portance in the world. An act of foreign aggres­
sion may in an instant throw it upon the verge of
war, or a domestic disturbance may unhinge it from
its place, and wholly obstruct its movement. The
temptation in such cases is generally very strong to
resort to credit for support. But credit is at the
very same moment in the greatest danger. It is
impossible to dictate to men what they shall think,
or to persuade them that performance is most likely
to follow promise, when the facts all tend to prove
the direct opposite. When a government is most
embarrassed is not the best time for resorting to
new promises nor for redeeming old ones. Yet it
is generally the one when it is itself most inclined
to the first measure, whilst it is called upon by the
public to adopt the last.” Today the doctrine that
government should either itself issue or directly and
completely control the credit needed at all times is
probably as widely held as it ever was in our his­
tory, if not more so.




Yet, of course, it is also true that individuals, and
influential ones, have existed at all periods in our
history who would have committed all or nearly all
the credit crimes that man has ever devised, and
of course today we have many among us who know
sound banking when they see it, a considerable num­
ber of them engaged in sound banking so far as
the tinkering of government permits such a course.
Politically speaking, and as regards their influence
upon the thinking of the rank and file of the people,
they are, however, today far from in the ascend­
ency. During the past century thousands of vol­
umes have been written upon the nature of credit
and upon the proper course to pursue in the man­
agement of it, and all the rest. Times have changed,
and the application of tested principles is different
from what it was in 1839. Theoretically and aca­
demically speaking, there has been some progress,
and some retrogression, too, in the understanding
of all these matters. There is also today vastly
more information available upon which to base a
sound credit analysis of most applicants. Whether
we as a Nation haye made great progress during
this period in the matter of understanding the role
that banks should play in economic life, and in the
application of such understanding, is a debatable
one, to say the least.
But with this much said with all candor, we may
now turn to the brighter side of the picture. Nei­
ther the number of banks in operation nor their
total deposits and circulation, even if these figures
are reduced to per capita basis, give any accurate
measure of bank accommodation available. The
location of the institutions, the need for accommo­
dation, and various other factors enter the picture.
It is nonetheless interesting to note the growth that
has taken place in these amounts during the past
century. In 1839 the editor of “ Hunt’s” obtained
from the Secretary of the Treasury and published
in one of the issues of the first volume of that
magazine a summary statement of all the banks of
the country. There were 663 of them. The follow­
ing tabie shows the more important items combined
for all of them:
C O M PAR AT IVE V IE W OF T H E C O N D IT IO N OF ALL T H E B A N K S
N E A R TH E C O M M E N C E M E N T OF 1838
Capital paid in_______________________________________________
$317 636,778
Loans and discounts_________________________________________
485 631,687
Stocks_____________________________________ . __________________
_
33 908,604
Real estate___________________________________________________
19 075,731
Other investments___________________________________________
24 194,117
Due from other banks_______________________________________
58 ,195,153
Notes of other banks on hand_______________________________
24 ,964,257
Specie funds__________________________________________________
904,006
Specie________________________________________________________
35 ,184,112
Circulation___________________________________________________
116 ,138,910
Deposits______________________________________________________
84 ,691,184
Due other banks_____________________________________________
61 015,692
Other liabilities______________________________________________
59 995,679
Aggregate of bank accounts__________________________________ 1,321 535,910
Aggregate of investments supposed to yield income_________
561 760,319
Excess of such investments above amount of capital paid in. .
243 ,180,261
Aggregate of deposits and circulation______ •
________________
200 820,094
Aggregate of deposits, circulation and sums due to other banks 261 ,845,686
Aggregate of specie, specie funds, notes of other banks and
sums due by other banks__________________________________
119,247,428
Excess of immediate liabilities beyond immediate means____
142,598,258
Total of means of all kinds___________________________________
704,358,577
Total of liabilities, exclusive of those to stockholders________
321,823,365
Total of liabilities of the banks to one another_______________
144,175,002
Total of liabilities to all, except other banks and stockholders
260,825,773
Net circulation_______________________________________________
91,174,653

The figures are almost certainly not complete by
an appreciable margin, as the editor of “ Hunt’s”
points out, since there were banks from which it
was difficult if not impossible at that time to obtain
reports, but the table affords a substantially accu­
rate picture of the order of magnitude of the bank­
ing system 100 years ago.
(Continued on page 2814)

Volume 149

ONE HUNDRED

—

T h e Com m ercial & Financial Chronicle —

YE A R S OLD

2813

NINETY YEARS OF BANKING
B E G IN N IN G M A R C H
residing as far north as
Grand Circus Park, lived “ out in the
country” in 1849. That was the year the first
plank road was built between Detroit and
Pontiac, the first plate glass windows ap­
peared in a Detroit store, and Jefferson
Avenue was laid with cobblestones to be­
come the city’ s first paved street.
e t r o it e r s

D

But far more important than any o f these
to the future business life of the city was the
opening o f The Detroit Savings Fund
Institute on March 5 ,1 8 49 . Later to become
known as The Detroit Savings Bank and
known since 1935 as The Detroit Bank, this
institution has enjoyed the longest continu­
ous existence o f any bank chartered in
Michigan.
The founders o f The D etroit B ank—a
group of prominent men headed by Elon
Farnsworth, first Chancellor o f the
State of Michigan—established a few
principles of safe banking practice.

T H E

5, 1849

This sound conservatism has always guided
and dominated the bank’s policies. The
bank has never engaged in other than bank­
ing activities. It has never had any ambition
for mere size—has never consolidated with
any other bank. Yet The Detroit Bank is now
the forty-fourth largest among the nation’ s
14,650 commercial banks. It is one of the
one hundred largest in the English-speaking
world.
Throughout its ninety year history, The
Detroit Bank has been known as “ a commu­
nity institution.” Its progress has been inte­
gral with the development and success of the
community in which it plays an important
part. D uring The D etroit Bank’ s long
history, the names o f individuals and busi­
ness concerns which have appeared on its
books, figured prominently in the achieve­
ments which have made Detroit
the nation’ s fourth city and one o f
the world’s leading industrial centers.

D E T R O I T

B A N K

M a in O ffice • G risw old at State • D etro it, M ich igan
2 9 Branch Offices Throughout the City
M E M B E R O F F E D E R A L D E P O S IT IN SU R A N C E C O R P O R A T IO N




M EM R ER FEDERAL RESERVE SYSTEM

ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939
—

2814

—

They were subject to few restrictions of importance
in many instances, by failure either of law or of
Below we append for comparative purposes a enforcement. One of their prime functions, if not
roughly comparable set of figures set forth in the the prime function, was that of issuing circulating
latest statement of the United States Comptroller notes which were poorly secured and at varying dis­
counts. The so-called Safety Fund plan of New
of the Currency:
York State had not proved particularly successful,
P R E L IM IN A R Y STATE M E N T O F ’ ASSETS A N D L IA BILITIE S OF
ALL BAN KS, D E C . 31, 1938
and the so-called system of “ free banking,” that is,
T o ta l A l l B a n k s
a system such as that now existing under which
Number o f banks_______________________________________
15.265
individuals, subject to a general banking statute,
A s sets—
Loans on real estate_____________________________________ $8,816,692,000
Other loans, including overdrafts_________________________ 12,718,714,000
might organize banks at will, was just getting under
Total loans--------------------$21,535,406,000
way. Banking may be said to have been in a dis­
United States Government securities:
tinctly chaotic state in this country at that time.
Direct obligations__________________________________ ...$15,070,400,000
Guaranteed obligations_______________________________
2,931,642,000
The, road by which we have traveled to reach
Obligations o f States and political subdivisions (including
warrants)--------------------------------------------------------------------- 3,810,494,000
the now existing banking system, as serious as are
Other bonds, notes and debentures______________________
5,076,094,000
Corporate stocks, including stock o f Federal Reservelbanks.
777,667,000
its defects, is a long, tortuous and punishing route.
Total investments-------------------------------------------------------- $27,666,297,000
“ Experience . . . with the Second Bank of the
Cash, balances with other banks, including reservelbalance_$l8,373,644,000
United States,” says H. Parker Willis in his “ The­
Bank premises owned, furniture and fixtures______________ 1,293,782,000
Real estate owned other than bank premises_____________
1,185,750,000
ory and Practice of Central Banking,” “ as with that
Investments and other assets indirectly representing bank
M
premises or other real estate___________________________
160,359,000
Customers’ liability on acceptances______________________
169,004,000
of the First Bank, had demonstrated to American
Other assets-------------------------------------------------------------------449,357,000
observers the necessity of assuring the performance
Total assets.
$70,833,599,000
of, at least, certain of the basic central banking
L ia b ilitie s —
Deposits o f individuals, partnerships and corporations:
duties. . . . Those whose utility, not to say
Demand______________________________________________ $24,460,659,000
Time_________________________________________________ 24,731,208,000
necessity, may be considered to have been demon­
United States Government and postal savings deposits____
969.804.000
Deposits o f States and political subdivisions_______________ 3.645.351.000
strated during the life of the First and Second
Deposits o f banks_______________________________________
7.479.886.000
Other deposits (certified and cashiers’ checks, & c.)________
620.853.000
United States Banks may be enumerated as fol­
Total deposits.
$61,907,761,000
lows :
Bills payable, rediscounts and other liabilities for borrowed
“ (1) The establishment of a supervisory control
m oney-------------------------------------------------------------$36,612,000
Acceptances executed by or for account of reporting ba n k s..
189,148,000
Other liabilities_________________________________________
491,150,000
of banks in general for the purpose of subjecting
Total liabilities----------------------------------------------------------- $62,624,671,000
them to the obligation of redemption, which meant
C a p ita l A c c o u n ts —
the obligation of liquidity.
Capital notes and debentures____________________________
$162,856,000
Preferred stock______________________________________
436 110 000
“ (2) The maintenance of an institution for the
Common sto ck .-------------- ------------------------------------------------ 2,593,527^000
Surplus
-------------- ----------------------- ----------- — ......... 3,648.631,000
oversight or control of public funds, whose object it
Undivided profits________________________________________
799,517,000
Reserves and retirement account for preferred stock and
should be to keep such funds constantly convertible
capital notes and debentures___________________________
568,287,000
into cash upon demand, in order that the Govern­
Total capital accounts______ ____ ______________________$8,208,928,000
ment might at no time have to incur the risk of
Total liabilities and capital accounts___________________ $70,833,599,000
It is unfortunately impossible to present con­ becoming a creditor of insolvent or incapacitated
cisely any account of the comparative degree in State banks, and might, moreover, have at its com{ C o n t i n w e d o n p a g e 2816)
which the institutions in existence at these two
dates were distributed in relation to population, but
it is a fact of common knowledge that at the earlier
date banks were for the most part concentrated in
the larger centers, and that a large proportion of
J u T V ... *- -.. * :
B x *'
the people of the country had no practical access
W/'1 H r
*— a -A *~r
^ ” T"
r/~ ~ ■ A
?
I— ji
i
r
to the banks at all. Today, despite the fact that
failures from 1920 through the first two months of
ClCAftlNC.
l
CUMi NC
IP E
IP
PP
IE
1933 left many small towns and rural areas with­
out banking facilities, the distribution of banking
facilities throughout the country today, together
with the immensely improved roads and wide own­
ership of automobiles, is such that there are rela­
tively few communities in the United States which
are in any practical sense far removed from the
facilities and the services that the modern bank
offers.

Banking 1839-1939
0C o n t i n u e d ,

fro m

page

2812)

Other Contrasts
There are other contrasts equally as striking and
equally as important. In 1839 there was no central
banking mechanism of any kind in the country, and,
of course, no system of National banks subject to
uniform requirements or regulation. Jacksonian
democracy had destroyed the second Bank of the
United States some years before that date, and the
National Banking System was not even legislatively
projected until 1863. The banks of that day were
State banks, largely specially chartered, owned
sometimes privately, sometimes by the States, and
sometimes partly by the States and by individuals.




A c e n t r a l h e a t i n g s y s t e m f o r p u b l i c b u i ld in g s a n d
h o m e s w a s i n v e n t e d in A m e r i c a .
T h is is o n e o f t h e
f i r s t — a h o t air f u r n a c e l o c a t e d in t h e c e lla r a n d s u p ­
p l y i n g w a r m , f r e s h air t o a ll r o o m s in t h e h o u s e .

Volume 149

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD
—

—

2815

Jim e-Savincf Directness
Busy men appreciate the time-saving directness with which
business is handled at The Commercial National of New York.
It is easy to meet and to establish personal and confidential
contact with the official personnel —and there is an established
conviction that your business is always important business to us.

COMMERCIAL NATIONAL BANK
and TRUST COMPANY
o f NEW YORK
H6e




Jiffy -six W all Street
Member: Federal Deposit Insurance Corporation

2816

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939
—

T/ie
O
M lS vin a
utua a gsB nfi

—

VH ESDOKLYN
SAVINGS BANK
C TO & PIERREPONT STS.
LIN N

ESTABLISH ED 1827

■ ■ {jitsp Britraiife:
■■

Banking 1839-1939
(C o n t i n u e d ,

fro m

page

2814)

mand an institution capable of performing the
duties of a fiscal agency— especially since, before
1846, no institution corresponding to tlie SubTreasury system had been established.
“ (3) The maintenance of stability and regularity
in exchange costs as between different sections of
the country; an attitude which meant the mainte­
nance of a national currency of uniform value free
of the danger of local deprecation and irregularity.
“ (4) The establishment of reasonable and fairly
stable rates of discount and interest, with the pur­
pose of insuring something like similarity in the
conditions of credit extension in the different parts
of the United States.
“ (5) The assurance of satisfactory conditions of
clearance and transfer not only among the banks
themselves, but also between the different States
and regions into which the United States was
divided.”

Plain Lessons
Although such lessons as these were unquestion­
ably to be read from the experience that the Amer­
ican people had had with the institutions in ques­
tion, and although these truths were evident at the
time to uncommonly gifted men, including a num­
ber of writers in “ Hunt’s” and later in the “ Chron­
icle” , they certainly were not clear and convincing
to the great rank and file, as Hr. Willis himself in
effect, with his accustomed candor, plainly admits
in later pages of this standard work. The truth of
the matter was that the whole question was de


:y

-

deviled with animosities that President Jackson
and his followers had aroused, by a rampant spirit
of localism which prevailed for decades after the
period to which we refer, and by the illusion of
creating wealth by means of bank notes, which
John Jay Knox, in “A History of Banking in the
United States,” says “ was the great heresy of the
period between 1811 and 1861, as the creation of
wealth by Government issues and fiat has been the
chief financial heresy since that date.”
Such ideas as these, at any rate, dominated the
discussions of the period from 1839 to the Civil
War, a period barren for the most part of construc­
tive achievement in banking except the slow im­
provement in the conditions under which banking
was carried on in the different States under State
laws. There was, however, this latter type of prog­
ress, and in important sections of the country im­
provement in actual conditions was quite substan­
tial. Referring to the period from 1811 to 1861,
John Jay Knox adequately characterized the situa­
tion as follows:
“ The early State banks of the Eastern States were
organized and managed generally on sound business
principles. There was real wealth and a thriving
commerce which rendered them a necessity. Having
something of a monopoly, their profits were large.
But their success was warped into the service of
those whose ideas were less sound, and was cited
as proof that all that was necessary under the primi­
tive conditions existing in the newer settled States
was a liberal issue of bank paper. In the lack of
individual moneyed capital, banks were started
based on capital created by the State, by the issue
( C o n tin u e d o n p a g e

2818)

Volume 149

ONE HUNDRED
-—The

Commercial & Financial Chronicle— Y E A R S

OLD

2817

1

EMIGRANT INDUSTRIAL SAVINGS BANK
5 East 42nd Street

51 Chambers Street

More than 293,000 Depositors

.

Assets over $506,000,000

•
OFFICERS

|

R B T L H G ET
O ER . O U
P
resident
FR C T. B G
AN IS
ER AN
V
ice-P
resident
JA E A. C U
MS
O LTER
Assistant V
ice-P
resident
W
ILLIAM C R B TSO
. O ER N
Secretary-T
reasurer
JO N J. M O M K
H
cC R IC
A
ppraiser
JO N J. H
H
AYD
EN
Assistant B
ranch M ager
an

W
ALTER H B N
. EN ETT
C
hairm of the B
an
oard
JA E A. FIN
MS
N
V
ice-P
resident
JO P H PR
SE H .
AETZ
V
ice-P
resident
G R E W HAG ERTY
EO G
.
G
Assistant V
ice-P
resident
TH M J. R EY
O AS
AN
C ptroller
om
LLO A. SM
YD
ITH
R E
eal state O
fficer

BOARD
JOSEPH P. GRACE
JAMES CLARKE
ROBERT L. HOGUET
E DW ARD P. M cM ANUS
ROBERT J. CU D D IH Y
W ALTE R H. BE N N E TT
D A N IE L P. HIGGINS

M S J. TIERNEY
YLE
Senior V
ice-P
resident
D
AVID J. G O E
R DN
V
ice-P
resident
LIN O S. H SSIO
C LN
E
N
Assistant V
ice-P
resident
JA E J. R O EY
MS
O N
Auditor
H W
O ARD G G EG
EO H AN
Loan O
fficer
JO P R B E N
SE H . R N AN
Assistant B
ranch M ager
an

OF T R U S T E E S

P E TE R J. C A R E Y
P A T R IC K E . CROW LEY
M YLES J. T IE R N E Y
BASIL HARRIS
W ILLIA M P . HEIDE
W ILLIA M V. GRIPFIN

M ICH AEL A . M ORRISSEY
CORNELIUS F. K ELLEY
ROBERT F. LOREE
THOM AS I. PARK INSON
j a m e s f . M cD o n n e l l
JOHN THOMAS SM ITH
F R ED ER IC J. FULLER

T h is b a n k is a mem her o f t h e F e d e r a l D e p o s i t I n s u r a n c e C o r p o r a tio n

-------------------------------------------------------------------------------------

Lamson
Br o s .

& Go.

Established 1874

This 65 year old firm is
engaged solely in the
commission business, exe­
cuting orders on all se­
curity and commodity ex­
changes. Statistical De­
partments are maintained
for the convenience of
customers.
I n q u ir ie s

The First Savings Bank
in the State of New York

In v ite d

M M E S O LEAD G SECU
E BR F
IN
RITY
and CO M D
M O ITY EXCH G
AN ES

50 Broadway
NEW YORK
141 West Jackson Blvd.
CHICAGO




280 Fo u rth Avenue

1201 T h ird Avenue

Cor. 22nd Street, New York

Cor. 70th Street, New York

2818

ONE HUNDRED

—

The Commercial & Financial Chronicle —

One of the greatest achievements in communication
was the completion of the first transcontinental tele­
graph system in 1861 by Hiram Sibley, who for 17 years
was the President of the Western Union Telegraph Co.

Banking 1839-1939
0C o n t i n u e d f r o m

page

2816)

of bonds, or upon land, which was abundant and
cheap. To start a bank and issue notes, with little
or no regard for their redemption in cash, was so
easy a way of acquiring the property of others that
even honest men became sharpers, and dishonest
men invented every conceivable method of mislead­
ing the public with, banking devices. The Legisla­
tures sought to control this tendency, but were fre­
quently led by crude ideas to make matters worse.
Even the protective laws they did enact were hard
to enforce. The idea that credit money, instead of
being an instrument of wealth, was in very truth
wealth itself, had taken a strong hold of the minds
of the public, and legislators could not get over the
notion that by chartering banks, with capital cre­
ated by the State, or permitting individuals to start
banks on capital which was only capital by cour­
tesy, they were increasing the wealth of the public
by the exact amount of the bank notes issued. The
inevitable results followed, and the disasters of suc­
cessive financial crises gradually taught the public
something of the dangers of uncontrolled banking
issues. The older States, having had much experi­
ence in their colonial existence, were the first to
learn how to control the management of banking
capital. Among so many States and Territories
there were always some where the laws were loose
and ineffective, and there was room in those for the
bank expert to exercise his dangerous knowledge of
the credulity of the public and its desire of apparent
gain.”

Greenbacks
Then came the Civil War and the chaos wrought
by its legal tender note financing. It is one of those
strange ironies of history, however, that the same
financial difficulties of the Federal Government
which were responsible for the legal tender notes
probably made it politically possible to formulate
and place upon the statute book the National Cur­



YE A R S OLD

Nov. 4, 1939

rency Act (the title being later changed to the
National Bank A ct), which in limited degree was
destined, as later amended, to meet certain of the
requirements of a truly national system of banking.
Emphasis when the Act was originally adopted, as
when the earlier amendments were added, was upon
the currency aspect of banking, but gradually as
time passed and as the use of checks on demand de­
posits grew in importance relative to the employ­
ment of actual currency and as wiser counsels pre­
vailed, the realization spread that what the country
needed was not merely notes fully secured (albeit
largely with bonds) but for sound and liquid bank­
ing. Then it was that increasing care was exer­
cised both in legislation and through more effective
administration in the matter of the entire assets of
National banks. In more recent years, as everyone
knows, there has come a progressive relaxation in
these matters that have to do with the portfolios
of National banks, but even to this day there can
be but little question that as a rule National banks
are held to stricter accountability than are those
institutions operating under State charters, al­
though, of course, it is also common knowledge that
many of the State institutions, by reason of Federal
Reserve membership, clearing house regulations, and
above all the clear-headed and firm management of
their officers and directors, are fully as sound and
liquid in all particulars as any National bank.
That the National Banking System, although
affording a substantial gain, was still far from
meeting the full requirements of the country was,
indeed, at an early date fully realized and clearly
stated by the more thoughtful student of financial
affairs, as is indicated by the following editorial
on the subject appearing in the Sept. 29, 1866, issue
of the “ Chronicle” , under the title, “ Defects of Our
Banking System” :
“ It cannot be denied that our National Banking
System has, up to this time, worked better, has kept
the financial movements of the country more steady,
and has done less harm and more good than was
believed possible by that large class of persons who
advocated its passage as the least of two evils. In
all probability it has saved us from one of the most
formidable dangers of an era of paper money— that,
namely, of unlimited issues of the notes of ill-regu­
lated, irresponsible State banks. The mischievous
privileges granted to these old institutions to issue
currency were apparently too firmly rooted to be
curtailed, and too profitable to be given up. The
banking interest in most of the States was so pow­
erful as not to be made war upon with impunity.
It did seem, therefore, as if we were doomed to have
a currency defying all attempts to regulate its
amount, and thus to control its value. Early in the
history of our greenback system these difficulties
were anxiously pondered, and the result was the
elaboration of a banking scheme which provided for
the absorption of the old banks, and the suppres­
sion of all currency-issuing privileges, except under
the most strict conditions. It provides that the
notes shall be secured by gold-bearing bonds to an
amount equal to 10% more than their face value.
These bonds are held in the Department at Wash­
ington, and are so endorsed that they cannot be
stolen or misappropriated by any dishonest officer
of the Government. Hence there is an ample pro(Continued on page 2820)

V olu m e 149

ONE HUN DRED T h e
—

C o m m e rc ia l & F in a n c ia l C h r o n ic le

E S T A B L IS H E D

— YE A R S OLD

2819

184 8

EAST RIVER
SAVINGS
RANK
CONVENIENT OFFICES
MAIN OFFICE: 26 CORTLANDT STREET, NEW YORK
291 BROADWAY •60 SPRING STREET • 41 ROCKEFELLER PLAZA -743 AMSTERDAM AVENUE
MEMBER

FEDERAL

DEPOSI T

INSURANCE

CORPORATION

"N

DRY DOCK
SAVI NGS INSTITUTION
Founded 1848

•

Over 160,000 Depositors

UPTOWN: 59th St. and Lexington Ave. * DOWNTOWN: 341 Bowery at 3rd St.

-----------------------------------------------

“ fio ti M Lf
T

GRANDPA, DID YOU KNOW THAT

Jf

THE DRY DO CK IS OVER
NINETY YEARS OLD?




YES, SON

*

^

If

ONE HUNDRED The Commercial & Financial Chronicle Y EAR S OLD

2820

—

—

THE
IF D Q

i

(A
x J T \

kD

J\

Y O U w ill find in this strong
institution launched 110 years
ago a warm welcome to join our
136,000 Depositors ★
★
★

Nov. 4, 1939

W A L L STREET
N E W YORK. C IT Y
Y O U may do your banking by
mail from any part of the W
’orld.
Safe D eposit Boxes from $3.50.
Deposits over $145,000,000. ★
★

A f u n d i n th is h a n k i s a b etter r e li a n c e i n s ic k n e s s o r o ld a g e th a n th e g o o d w ill o f f r i e n d s

Banking 1839-1939
( C o n t in u e d f r o m p a g e

2818)

vision for the ultimate payment of tlie note, should
the bank fail which has issued it. For it is clear
that broken-bank notes are sure to be eventually
paid in full so long as the securities which will be
sold for that purpose are worth as much as 90c. on
the dollar. This method of securing a circulation of
bank notes is infinitely to be preferred to the vicious
plan, which obtained in some of the States, of allow­
ing a bank to issue notes to more than double the
amount of its capital, and this, in some cases, with­
out exacting any adequate security. It is even bet­
ter than the plan adopted for the Bank of England,
for beyond the aggregate of £16,000,000 sterling its
notes are not represented by Government securities
at all. Here, then, is one of the most excellent fea­
tures of our banking system. It controls and regu­
lates the currency, by making it certain of ultimate
payment in full.
“ But this is not enough. A note which is sure to
be eventually paid is not fit to perform the func­
tions of money, except the holder can get full pay­
ment for its face anywhere, at any time, and in any
commodities he needs in the market. He must be
sure that it will be accepted freely in liquidation of
his debts. Bank notes, to be perfect as an internal
currency, must be kept at par in every village and
hamlet over the whole country. Prior to the war
we never had in this country a paper currency which
was everywhere equal in value and negotiable with­
out discount. These advantages we first enjoyed
when greenbacks were issued, and the people prized



them so highly that they will never again consent
to be without them. If the National banks are
unable to give us such a currency, they will place
themselves under the necessity of giving up their
functions as banks of issue altogether.
“But, we think, the National banks are able to
keep all their notes at par. Experience shows us
that if the notes are redeemable in New York, and
are thus kept at par here, they will be at par every­
where else. But, on the other hand, if the notes are
not redeemable here they will be sometimes at a
discount, as, indeed, was the case a few weeks ago.
At this point it is that we find the most important
defect in our system. The existing law’ does not
provide for compulsory metropolitan redemption
here. Fortunately for the system a large propor­
tion of the banks do redeem here. But they are not
obliged to do so. And as it is more profitable for a
speculative bank in an obscure far-off locality not
to redeem here, lest its notes should come back to
it too freely, there is a very large number of banks
that do not redeem here nor (wiiat is in effect the
equivalent) in Philadelphia or Boston. As these
institutions can keep out their notes longer than the
redeeming banks, it is obvious that they obtain an
unfair advantage—that our currency will have a
tendency to become vitiated, by coming more and
more from weak banks, and that the system
naturally offers a premium to the non-redeeming
institutions. Mr. Hooper, as is w^ell known, intro­
duced a bill into Congress last session, which was
intended to remedy this fault, and in spite of the
opposition with W
’hich it has met it will no doubt
0
Continued

on page

2822)

Volume 149

ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD
-—

—

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fSir
S
S
S

I nvestment Advisory

F A C IL IT IE S

service

T

h is

Deposit Accounts Subject
to Check
Time Deposits
Foreign Exchange
Commercial Loans and Discounts
Commercial Letters of Credit
Travelers Letters of Credit

BANK, for many years, has ren­

Investment Advisory Service

dered Investment Advisory Service

Care and Servicing
of Securities
Orders for Purchase and Sale of
Securities Executed on Commission
Transfer Agent and Registrar
Financial Agents

on a fee basis to individual in ­
vestors, trustees and institutions.
W e w ill gladly send a copy of a booklet
which describes this service.

BROWN BROTHERS HARRIMAN & CO.
59 W ALL STREET, N E W Y O R K

P R IV A T E B A N K E R S

BANKING

O

BUSINESS

ESTABLISHED

1818

Licensed as Private Bankers under Article I V o f the Banking Law o f the State o f N ew York. Subject to Pennsylvania Department o f Banking Code.

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^GREENWICH
SAVINGS BANK
Established 106 years ago for the purpose of
encouraging thrift and the habit of saving.
TWO OFFICES
Broadway at 36th Street • Sixth Ave. at 16th Street
N E W Y O R K , N . Y.

2821

2822

ONE HUNDRED

—

T h e Com m ercial & Financial C hronicle —

Banking 1839-1939
(C o n tin u e d f r o m p a g e

2820)

be passed next session. We find tlie following very
judicious remarks on the subject in yesterday’s
issue of a morning journal:

‘It is denied that the Western banks object to any
system of par redemption for their notes, “they only object
to being compelled to redeem in New York.” This is a
distinction without a difference. Of course each bank
stands ready to redeem its notes when offered at its coun­
ter; but neither that nor an arrangement for redemption
in any Western city can make the notes at par throughout
the country; and this fact is as well known in Chicago
as it is in New York. The talk in this connection about
“paying tribute” to this city is perfectly ridiculous; interior
banks which do not redeem at par here are exacting tribute
of New York, and this, too, when the privileges connected
with their circulation will afford ample compensation with­
out the levy of such a tax. There can be no system of par
redemption, unless it secures the holders of the notes
against their depreciation at the financial center. To ob­
ject, therefore, to a par redemption at New York is to
object to any system of par redemption, for no other
arrangement will answer this purpose. If the issues in
question were disbursed in legitimate business at the points
where the several banks were located, and simply followed
the law of financial gravitation to New York, there would
be a sufficient reason why they should be redeemed here
at par on their arrival by the banks which had received
all the beneiit of the circulation. The notes could then be
taken home and again set afloat to renew their course. But
it is still more the duty of the banks to provide against a
possible redundancy of their issues when the notes are
brought in whole packages and paid out here, and unless
provided for at par are liable at once to become a charge
upon this community. In urging the establishment of such
a system we are consulting as much the well-being of all
sound banks, wherever located, as any local interest. Un­
less this is done there can be no healthful circulation of
the national currency; and this principle, if not soon
accepted, will vindicate itself ere long in the unavoidable
experience of those most concerned.’
“ As yet we have been regarding the banks as
being simply banks of issue. But they are also
banks of deposit and discount. They are the reser­
voirs of capital. To them our people lend their dis­
engaged funds, and from them they borrow in time
of need. It is easy to see how important it is that
institutions which thus deal in credit should be
placed ever under the scrutiny of the public. Such
disgraceful failures as the Pennsylvania banks, or
the Merchants’ Bank at Washington, ought to be

[
i

Y E A R S OLD

Nov. 4, 1939

made impossible. Our system should be so arranged
that an unsound bank should not be able to get
the confidence of the people. If a bank depart from
the rules of legitimate business, if it endanger its
own stability and the security of funds entrusted
to its care, if it fails to maintain a due proportion
between its liabilities and its available reserve, if
it engages in speculation in stocks or produce—the
public ought to have the means of discovering the
fact. And as one of the means of informing the
people, sworn statements of the bank’s affairs
should be published at very frequent intervals.
Publicity is a safeguard against many of the evils
of unsound banking, because it affords a means of
quickly detecting them. The official examiner of
the Bank Department has lately gone through the
books of several of the banks of this city. But the
fact has been enshrouded with a very unnecessary
mystery, as if it were some Government secret.
Such official reports should be published, so far at
least that the people may form their own judgment
as to which are the soundest institutions and which
are less worthy of trust. This question of increased
publicity we would suggest to Mr. Hooper as emi­
nently worthy of attention in the new law which
he is to report early next session.

Necessary Reserves
“ Keference was made just now to the necessity
for ample reserves. The provision of the present
National Currency Act requires every bank to keep
a reserve of cash on hand equal in amount to 25%
of the aggregate of its circulation and deposits. A
more sound and conservative arrangement it is im­
possible to contrive, and to its enforcement is in
part due the stability and elastic promptitude with
which our banking system has been able to respond
to the emergency, whenever a panic or severe
pressure has convulsed and thrown into temporary
confusion the monetary relations of the country.
Another circumstance which has contributed to this
stability is the virtual union of the banks into one
organized, complex whole. This union, however,
has its dangers, and being of so intimate and vital
a nature, it imposes the obligation on every sound
bank to discourage the unsound ones, and to favor
(C o n tin u e d o n p a g e

2824)

O n e o f t h e v e r y f i r s t f l i g h t s o f t h e W r i g h t b r o t h e r s in a s o r t o f g lo r i r i e d b o x k i t e , d e s t i n e d t o r e v o l u t i o n i z e
t r a n s p o r t a t i o n a n d b r id g e t h e o c e a n s w it h a s t r e a k o f s p e e d , is w i t n e s s e d h e r e b y a n a d v e n t u r o u s e a r l y
a u to m o b ile c r e w .




Volume 149

ONE HUNDRED
—The Commercial & Financial Chronicle Y E A R S OLD
—

2823

^Ttnrtnnnrtnnrtnrairsinnnnrtrtnnnnrtnnnnnrtnnsinnnnrtrtnnr^^

Second N ational

T he

Bank of Boston
FOUNDED 1832

111[FRANKLIN ST. and HOTEL STATLER BLDG.
BOSTON
Capital $2,000,000

Undivided Profits $767,711.87

Surplus $4,000,000

OFFICERS
THOM AS P . BEAL,

P r e s id e n t

R . M . DeCORM IS, V i c e - P r e s i d e n t
ROBERT B A LD W IN , V i c e - P r e s i d e n t

M E RT O N E . OBER, V i c e - P r e s i d e n t
H E R B E R T E . STONE, V i c e - P r e s i d e n t

R A YM O N D C. D E X T E R ,
HAROLD A. C AH ALIN ,

V i c e -P r e s i d e n t a n d C a s h ie r

ALFR E D S. W OODW O RTH,

A s s t , V ic e -P r e s id e n t

F R E D E R IC K W . B U RN H AM ,
H A R R Y H . BRIGGS, A s s i s t a n t C a s h i e r
LESLIE N . ROW E, A s s i s t a n t C a s h i e r
FR AN K W . B R Y A N T , A s s i s t a n t C a s h i e r
L. E. STOVER, A s s t . C a s h i e r a n d M a n a g e r

V ic e -P r e s id e n t

H E N R Y L . PEARCE, A s s t . C a s h i e r a n d A u d i t o r
B E R TR A N D R . SYM ONDS, A s s i s t a n t C a s h i e r
JAMES R . D E N N IN G , A s s i s t a n t C a s h i e r
H E R B E R T H. P Y N E , A s s i s t a n t A u d i t o r

F o reig n D e p t.

F R E D E R IC K R . H A M ILTO N ,
B. C. JONES,

A sst.

A s s t . V ic e -P r e s id e n t

A s s is ta n t A u d ito r

JOHN A. B A R R Y , T r u s t O f f i c e r
CLARENCE B . HIGGINS, A s s t . C a s h i e r a n d A s s t . T r u s t O f f i c e r
JAMES A . STEVENSON, A s s i s t a n t T r u s t O f f i c e r
H. CLIFFORD BOSHAN, A s s t . T r u s t O f f i c e r
N A TH A N IEL R . CUTLE R , A s s t .
T r u s t O ffic e r

T r u s t O ffic e r

DIRECTORS
THOMAS P. BEAL,

P r e s id e n t

J. W H ITN E Y BOW EN,
General Cotton Corp., President & Treasurer

A N DREW M ARSH ALL, Hutchins & Wheeler
A RTH U R B. NEW H ALL, Talon, Inc., Vice-President
E D W A R D H. OSGOOD,
Massachusetts Hospital Life Ins. C o., Pres. & Treas.
FRED ER IC P A R K E R . Hanson & Parker
ELW Y N G. PRESTON, S. S. Pierce C o., Treasurer
ROBERT PROCTOR, Choate, Hall & Stewart
R IC H A R D SALTONSTALL,
State Street Investment Corporation, Vice-President
E. K E N T SWIFT,
Whitin Machine Works, President and Treasurer
JOHN F. TIN SLE Y ,
Crompton & Knowles Loom Works, President

GEORGE H. B U R N E TT,
Joseph Burnett C o., Treasurer
W . H. CLAFLIN , Jr., Harvard College, Treasurer
CHARLES A. COOLIDGE,
Ropes, Gray, Boyden & Perkins
R . M . DeCORM IS, V i c e - P r e s i d e n t
R A YM O N D EM ERSON, J. M . Forbes & Co.
H a r v e y p . h o o d , 2nd,
H. P. Hood & Sons, Inc., President
W IL L IA M E . JONES, Hallowell, Jones & Donald
JOHN S. LAW R E N C E , Trustee

M E M B E R F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T IO N

o o o o o o g-O-Q-g.o a a a aJLPJLQ.o.Q.gJta-A-g.a_g.a O-gJLflJLa a s c s ju u m f i f l 0 g 0 0 Pppp9 g 0 Q 0 Q O 0 o o o o o o o o o nffffff

ONE OF THE OLDEST BANKS IN THE UNITED STATES

.

ESTABLISHED 1823

THE

M E C H A N IC S NA TIO NAL
BANK OF PROVIDENCE
34 Dorrance Street,

.

.

.

PROVIDENCE, R. I.

OFFERING MODERN BANKING SERVICE WITH OLD TIME COURTESY




LOANS

.

C O L L E C T IO N S

.

D IS C O U N T S

C e r tific a te s o f D e p o s it
C h e c k in g A c c o u n ts

.

F o r eig n E x c h a n g e

.

S a v in g s A c c o u n t s

ONE HUNDRED—The

2824

C o m m ercia l

& Financial Chronicle—YE A R S OLD

N ov. 4, 1939

Banking 1839-1939
( C o n tin u e d f r o m

CITIZENS SAVING BANK
P R O V ID E N C E ,

R H O D E IS L A N D

Founded 1871

C harles A. P ost

President

E d w in O. C hase

Vice President

W illiam A. H a t h a w a y

Vice President
Treasurer

R oger W . C ooke
C harles H . Jackson

Assistant Treasurer

P hillips R. W e at h er b ee

Assistant Treasurer

L ero y B. L undblad

Assistant Treasurer
Statistician

L ouis E . G r o v e r , Jr .

W EBSTER a n d ATLAS
N A TIO N A L BA N K
OF BOSTON

199 W A S H IN G T O N STREET, BOSTON, MASS.
E s t a b l i s h e d 1833

★

This bank— conducted in a broadly
conservative manner for over a cen­
tury— offers every advantage in service
and every consideration consistent with
sound banking.
A banking connection with us should
be of mutual advantage and satis­
faction.
★
#

R aym on d B . Cox,
E d w a rd M o tle y ,

President

Vice-President

H a r r is o n G . R e y n o l d s ,
F rank B . B u tts,

Vice-President

Cashier
★

M ember F ederal D eposit I nsurance C orporation




page

2822)

every arrangement which, like the redemption of
the notes, or the enforcement of ample reserves,
tends to give strength and stability to the whole
organized system.”
The history of American banking from 1863 for­
ward for several decades, at least so far as public
policy and legislation were concerned, is a history
of a futile effort to make an inadequate system of
banking plus the so-called sub-treasury system work
satisfactorily. During these years individual banks
rose to positions of great strength and position.
Banking facilities multiplied, and in general bank­
ing practice was gradually brought to a higher
standard more or less throughout the Nation. In­
deed, the achievements of these careful, conserva­
tive yet vigorous institutions are seen in retrospect
to be remarkable. Yet recurring panics and other
financial disturbances traceable to a want of coor­
dination and elasticity in the banking system kept
the public, or at least the more thoughtful elements
in it, reminded of the shortcomings of the American
banking system as a whole. Prejudice and resulting
political considerations, however, resulted in a stub­
born refusal to look the facts in the face, and a
persistent effort somehow to obtain the advantages
of a sound central banking system without estab­
lishing such a system.

National Monetary Commission
The panic of 1893, 30 years after the passage of
the original National Currency Act, precipitated
once more this whole question of currency and bank­
ing, but confusion of counsel was the dominant
characteristic of attempts made the following year
to legislate on the subject. The old greenbacks, the
Treasury notes of 1890, and the silver question,
which had by that time pushed itself violently to
the center of the political stage, seemed to render
any constructive action out of the question. It
remained for the panic of 1907 to bring the matter
definitely to a head, and in the following year to
place upon the statute book the so-called AldrichVreeland Act. This Act, however, was directed
rather narrowly at the currency difficulties that
had been encountered, and gave no general satisfac­
tion, or at least was not regarded as having gone
to the root of a situation which could not longer be
tolerated.
Accordingly the National Monetary
Commission was appointed almost at once to study
the entire subject and to recommend a program of
rectification. This Commission spent three years
in investigation of a most extended and thorough
sort, and finally in 1912 submitted a plan to Con­
gress. No action was taken, however, at that ses­
sion of Congress, and in the fall of 1912 the Demo­
cratic party, under the leadership of Woodrow W il­
son, was successful in placing itself in control at
Washington.
One of its first undertakings was banking legis­
lation, later to be known as the Federal Reserve
Act. The history of this measure and its general
content are well known to the readers of the “ Chron­
icle” , and hardly need exposition here. Suffice it
to say that concessions had to be made to the more
radical elements in the Democratic party, and the
law as it reached the statute book contained flaws
which the original sponsors probably felt as reluc0C o n t i n u e d

on page

2826)

Volume 149

ONE HUNDRED The
—

Commercial & Financial Chronicle— YE A R S

OLD

2825

ROBERT GARRETT & SONS
Established 1840

Investment Bankers

BALTIMORE, -

-

- MARYLAND

IN THE

Nation’s
Capital
A proper banking connection in Washington
can be much more than a convenience to you
and your customers . . . Our location, our
facilities and our 100 years of emphasis on serv­
ice are important advantages to our clients.
TH E RIGGS NATIO NAL BANK
of W A SH IN G TO N , D. C.
E stablished 1836

Resources over $100,000,000
M E M B E R FED E RA L DEPOSIT INSURANCE CORPORATION

One Hundred and Six Years of Savings Hank Service

SUFFOLK SAVINGS BANK
FOR SEAMEN AND OTHERS

Incorporated, 1883

B oston, Massachusetts
O F F IC E R S

BOARD

P r e s id e n t

O F IN V E S T M E N T

T h e r o n A . A p o llo n io

T h e r o n A . A p o llo n io
E x e c u tiv e V ic e -P r e s id e n t

H e rb e rt M . S ears

T h om a s W . Sym ons
T rea su rer

A rth u r B. B rook s

R oger F. H ooper

J o h n P. C h ase

K e n n e t h L . Isa a cs

L e o F . D a le y

F ir s t V ic e -P r e s id e n t

H en ry B. Saw yer

A rth u r O . Yeam es
A s s is ta n t T rea su rers

Sh erm an H . P ep p a rd




D a n ie l J . S a v a g e

R o b e rt N . S p o ffo r d

Assets

Over $60,000,000

ONE HUNDRED— The Commercial & Financial Chronicle—YEARS OLD

2826

Adoption of the horseless carriage by the fashionable
set helped to encourage the development of the great
industry into which the automobile business has
grown. Here is George Gould and his sons at Saratoga
inspecting and perhaps later riding in their car of 1903.

Banking 1839-1939
(iC o n c lu d e d ,

fro m

page

2824)

tant to accept as many other careful students of
banking. Precisely how the system would have
operated had the World War not come before it had
had opportunity to demonstrate its nature will
never be known. The fact is that war influences
from the very first (even before we became in­
volved) began to make themselves felt, and after
our entry into the war and at intervals ever since
alterations in the Act, almost invariably to its
detriment, have been frequent. The system without
question, even in its original form, was open to
serious abuse of an inflationary sort, and advantage
was quickly taken of that fact. Politics, moreover,
from the first played havoc with any chance it
might otherwise have had to function as originally
intended— so much so that Senator Carter Glass
has on numerous occasions complained that the sys­
tem had been converted into a sort of “ door-mat for
the Treasury,” the more so as a result of the pressure
upon the Treasury for funds with which to conduct
the war once we were engaged in that struggle.
What is even more important, and what must in
the long run prove even more devastating to stabil­
ity and soundness in our banking and credit system,
is the fact that it afforded the New Deal amateurs
now in control of national affairs with the nucleus
of an almost perfect system for their manipulation
of currency, credit, and banking. So intensively
have they cultivated their opportunities that at the
end of the century that has expired since 1839 we
find ourselves not only with a bond-secured cur­
rency, but with bond-secured deposits and a system
of banks, including the Federal Reserve institutions,
whose assets consist primarily of bond holdings.
Those now in charge of national affairs have, more­
over, revived in essence all the old fallacies of 100
years or more ago about the creation of wealth by
the issue of currency, or what is the equivalent, the
enlarging of bank deposits, and have added a body
of fine-spun, superficially plausible, but wholly un­
sound theorizing to the cruder variety existing in
the earlier period. In this sense we end the century
no better off, to say the least, than we began it. To
make the matter worse, we have record-breaking
stocks of gold on hand, in part due to past tinkering
with the theoretical gold value of the dollar and
in part to circumstances over which we have no con­



N ov. 4, 1939

trol. This hoard of the yellow metal, to say nothing
of the accompanying mountain of silver, presents a
real problem which would tax the abilities of our
best financial statesmen.
The Reserve System has, however, succeeded ad­
mirably in establishing a national clearing and col­
lection system without which the banks of the coun­
try would find it difficult to get along. It is this
system, indeed, which on more than one occasion
has prevented withdrawals from the Reserve System
on the part of ably managed institutions which
otherwise would prefer to operate outside of any
such system as now exists. We have a uniform cur­
rency and, so to speak, a uniform demand deposit
system; that is to say, the funds of one part of the
country can be transferred to any other part with
a minimum of delay and expense. We have likewise
in the Federal Deposit Insurance Corporation a sys­
tem of partial deposit insurance reminiscent of the
discredited Safety Fund system in New York State
a century or more ago.
The century has brought substantial gains in
banking as regards certain matters, and it evidently
has left us much where we stood in the beginning
in others. We as a people still face the task of
gaining a working grasp of the principles of sound
banking, and a resolute will to abide by them. Such
an understanding and such a will once existed in
rather remarkable degree in England, yet, as
strange as it may seem, the ultra-modern urge to
make use of credit for essentially alien purposes
seems to have reached this country from certain of
the English credit theorists. Despite the meanderings of the past 100 years, and notwithstanding the
fearful way that we have gone astray during the
past two decades, particularly during the past six
or eight years, we shall some day work out our
salvation in banking and apply it, but the task re­
mains for the future.

The Birth and Development of an\Idea
( C o n clu d e d o n p a g e

2738)

commerce. A large part of the legislation of States
and nations is devoted to the regulation of com­
mercial operations. Courts of law and equity are
daily deciding points in mercantile jurisprudence,
growing out of the constantly varying circumstances
of commercial enterprise. How liberalizing and ex­
panding are the pursuits of commerce, thus under­
stood, in their effect upon the mind, is obvious and
often remarked. The wants and necessities of all
nations, of all races of men, form elements in the
calculations of the true merchant. He studies the
condition and finds out the wants of all, to relieve
them. It is his interest, it becomes also his pleas­
ure to do so. He learns to look upon all nations
as knit together by the tie of mutual dependence,
to regard all men as kindred. The mercantile stu­
dent learns the same lesson. To teach that lesson
has been and shall be one of the greatest purposes
of the ‘Merchants’ Magazine’.
“ The editor regards it as not the least of the happy
results of the labors and studies to which his taste
and his duty have led him in conducting this maga­
zine, that they have strengthened and confirmed the
disposition to look upon all men as brethren, to
regard with favor all measures which tend to unite
them together in the unity of peace, and to promote
the reforms of ancient abuses, however venerable.”

Volume 149

ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD
—

—

Close Contact with the Majority of
Michigan’s Important Industries
☆

NATIONAL BANK
OF DETROIT
DETROIT, MICHIGAN
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

DIRECTORS

T h i s b
t a k e s
t i o n
a
m o d e r
b a

a n
e
s s o
n
n k i
•

k

ALEX D O W
President, Detroit Edison Company
•

u n d e r v e r y
f u n c c ia t e d
w i t h
c o m m e r c i a l
n g .

GEORGE R . FINK
President, National Steel Corporation
m

EDSEL B. FORD
President, Ford M o to r Company
•
S H E R W IN A . HILL
Hill, Hamblen, Essery £sf Lewis
•
CHARLES A. K A N T E R
Senior Vice President,
Manufacturers National Bank
•

CLIFFORD B. L O N G L E Y
Bodman, Longley, Bogle, Middleton and Farley
•
M U R R A Y W . SALES
President, M urray W . Sales £sf Company
•
H E N R Y H. SANGER
President, Manufacturers National Bank
•
W ESSON SEYBURN
Manufacturer

TH E M A N U FA C T U R ER S N A T IO N A L B A N K
OF D ETR O IT




M em ber Federal Deposit Insurance Corporation

2827

ONE HUNDRED—The Commercial & Financial Chronicle YEARS OLD

2828

—

N ov. 4, 1939

CONDENSED STATEMENT

FIRST NATIONAL BANK
IN SAINT LOUIS
At the Close of Business, October 2, 1939.

RESOURCES
Loans and Discounts United States Government Securities
Other Securities guaranteed by U. S. Government Other Bonds and Stocks
Stock in Federal Reserve Bank Banking House, Improvements, Furniture and Fixtures
Other Real Estate Owned - - - Customers’ Liability a/c Letters of Credit, Acceptances,
Accrued Interest Receivable
- - - Overdrafts
- - - - - Other Resources
- - - - Cash and Due from Banks - - - -

61,249,199.96
53,418,751.08
29,663,310.12
8,883,416.95
411,000.00
580,518.88
- 1,780,482.39
etc 586,365.10
- 686,444.99
- 17,256.19
- 6,552.75
- - 125,728,724.65
-

-

$283,012,023.06
LIABILITIES
Capital— Common $ 10,200,000.00
Surplus and Profits
8,903,846.38
Dividend Declared Payable November 30, 1939
240,000.00
Reserve Unallocated
1,000,000.00
Reserve for Taxes, Interest, etc.
574,803.03
Unearned Discount
- 217,055.71
Liability a/c Letters of Credit, Acceptances, etc.
596,329.92
Other Liabilities
6,226.72
Individual Deposits
$129,358,465.45
Savings Deposits
- - - 32,964,944.56
Bank Deposits 97,483,297.50
City of St. Louis and Other Public Funds 1,467,053.79
................................ 261,273,761.30

Total Deposits

$283,012,023.06
M em b er F ed era l D ep o sit In s u r a n c e C o rp o ra tio n

A Century of Achievement
0C o n t i n u e d

fro m

page

2788)

lected with great care concerning the movement of
the crop.
“Later, cablegrams from Europe regarding stocks,
visible supply, &c., were added as a further charac­
teristic. So much time and labor was bestowed
upon these reports of weather and crop movements
and so much assiduity displayed in the gathering
of the statistics, every bale of cotton being traced
from point of production to its final destination,
that the ‘Chronicle’ immediately became an author­
ity concerning cotton all over the world. And this
distinction it has not lost up to the present day.
The system of reports then inaugurated and the

It was Pascal B. Smith who in 1827 discovered the
formula for making marine varnishes. This discovery,
which grew into an enormous industry, was made in
an old apple orchard on the former Stuyvesant farm,
on the East River, New York, near what is now Sixth
Street




methods of tracing the movement of the crop furn­
ished the foundation for the later work of other
investigators in the same field. The weekly com­
pilation of the visible supply of cotton of the world
for a long time remained the only thing of its kind.
And Mr. Dana’s interest in this part of the paper
never flagged. Up to the time of his death he in­
sisted on personally passing upon the text of the
annual ‘Cotton Crop Report’ and the annual ‘Cotton
Acreage Report’, and until the later years of his
life contributed a considerable portion of the text
matter himself. The task of compiling the statis­
tics passed into the hands of a trained specialist a
long time ago, but the form of the ‘Crop Report’ as
originally devised by Mr. Dana has never been
changed, though certain new features have been
added from time to time to make it more compre­
hensive and to add to its value.
“Mr. Dana had some journalistic experience be­
fore he undertook the publication of the ‘Chron­
icle’. As was related in our issue of Aug. 28, 1909—
at the time of the eightieth anniversary of his
birth— Mr. Dana, after having practiced law in
Utica, the place of his birth, from 1853 to 1859, came
to New York in the latter year and the next year
purchased ‘Hunt’s Merchants’ Magazine’, a monthly
periodical whose existence dated back to 1839.
This monthly had a high standing. Mr. Dana made
a number of improvements in it and continued to
publish it up to January, 1871, when it was merged
in the ‘Chronicle’. It should also be said that in
connection with the ‘Chronicle’ there was likewise
started a ‘Daily Bulletin’ ‘issued every morning
(C o n t i n u e d ,

on pa ge

-83C)

Volume 149

ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD
—

—

FROM ONE OLD-TIMER
TO ANOTHER
To "The Commercial and Financial
Chronicle,” upon its centennial, this
bank, now in its 88th year,
extends congratulations.
Bankers to Western Business
Since 1852

Wells Fargo Bank
UnionTrust Co.

&

H e l p in g

SAN F R A N C I S C O

y o u to

BUILD BUSINESS
You aim to please your customers because you
recognize their good will as a major factor in the
growth of your bank.
When they have business in Tennessee, THIRD
NATIONAL’S co-operation will help you to give
them the kind of service they like.
Nashville’s Fastest Growing Bank

T hird National Bank




IN NASHVILLE—N a sh ville,

Tennessee

MEMBER FEDERAL RESERVE SYSTEM
Member Federal Deposit Insurance Corporation

2829

2830

£

#

1

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD
—

A Century of Achievement
(< o n tin u e d ,
C

fro m

page

2828)

with all the commercial and financial news of the
previous day up to the hour of publication.’ For a
while, therefore, Mr. Dana had a weekly, a monthly
and a daily on his hands. The daily was not large,
being only a little larger than circular size. And
yet, after he disposed of his interest in it, it devel­
oped into an important daily paper, the ‘Commer­
cial Bulletin’, which many years later absorbed the
‘Journal of Commerce’, and today is the powerful
‘Journal of Commerce and Commercial Bulletin’.
“ In establishing the ‘Chronicle’ Mr. Dana en­
gaged in pioneer work as far as the United States
was concerned, there being no other journal of the
same class to use as a guide. But in Europe the
‘London Economist’ had existed for many years and
had attained important distinction. That publica­
tion he took as his model for form. No outside par­
ties have ever had any interest in the paper. Mr.
Dana always held dominant control. From 1865
up to 1894 the paper was published by the firm of
William B. Dana & Co., the ‘company’ being John G.
Floyd, his wife’s brother. The two men were well
fitted to supplement each other’s gifts, though Mr.
Floyd was lacking in the sanguine temperament
which is a prime requisite of success in a country of
such boundless opportunities as the United States.
Mr. Floyd looked after the business end and after
the railroad news department. In 1894 Mr. Floyd
determined to retire, and Mr. Dana purchased his
interest. The business was then incorporated in
the name of the William B. Dana Co., and Mr. Dana
admitted to part control some near relatives and
the writer.
“ In his tribute to Mr. Dana in the issue of the
‘Chronicle’ of Oct. 15, 1910, written at the time of
Mr. Dana’s death, the writer took occasion to lay
emphasis upon Mr. Dana’s complete identification
with the paper and also dwelt upon the part played
by the paper in influencing public opinion and pro­
moting sound views. Since the close of the Civil
War, as was there said, there have been three great
movements threatening the national welfare which
this paper has opposed with all its energy. Its aid
was first rendered in combating greenbackism; a lit­
tle later came the free silver fallacy, and more re­
cently have come the attacks upon wealth, upon the
rights of property, upon the railroads, and upon cor­
porations generally. This is a young country, and
its experience is in accord with its youth. For that
reason error flourishes here more readily than in
the civilized countries of the Old World.

—

Nov. 4, 1939

“ In looking back now at the introductory article
in the first issue of the paper, one is struck by the
fact that the problems then confronting the coun­
try, in the prevalence of economic error and the ex­
ploiting of pernicious doctrines, were much like
those which our people are contending at the pres­
ent time. For instance, special emphasis was then
laid upon the necessity of ‘wise legislation’, and the
statement was made that ‘at no time in our history
has the knowledge and diffusion of commercial
truths, and the advocacy of well-defined principles
which govern the economy of wealth, been so needed
as now’. That was half a century ago. We have
overcome the dangers which then threatened, and
there can be no doubt that we will in like manner
overcome the dangers of the same type that are be­
setting us at the present time, particularly dema­
gogic legislation, in which the last Congress was
so fruitful, and which, if persisted in, must under­
mine the foundations of business. The ‘Chronicle’
will do its part towards insuring such a result, for
it is the expectation that his paper will prove as
enduring as time itself.”

Further Expansion
As a matter of fact, the “ Chronicle” , under the
sole direction of Mr. Seibert after the death of Mr.
Dana in 1910, had by 1915 added very substantially
to the volume of material carried designed to make
it a newspaper as well as a vehicle of editorial ex­
pression and a recorder of markets, and the like.
In January, 1918, this type of material was gath­
ered together and given the status of a department
or section of the paper carrying the title “'Current
Events and Discussions” , which it still carries.
Meanwhile the volume of current data, both statis­
tical and other, reflecting the current state of busi­
ness in practically all branches of American indus­
try, had grown so great that in January, 1923,
another department or section was introduced, and
into it assembled the current reports of this nature.
It was given the title “ Indications of Business A c­
tivity” , which it still carries. We are confident
that our readers will agree that the usefulness of
the regular weekly issues of the “ Chronicle” have
been immeasurably enhanced by these additions.
The issue of June 26, 1915, contained 112 pages;
the weekly issues now average over 160 pages, and
not infrequently run substantially larger than that,
so greatly has it been found necessary to enlarge
the scope of the contents of its pages to serve the
public adequately these recent years. In 1934 cer(C o n t i n u e d ,

on page

2831)

^ A f t e r m a n y d i s c o u r a g e m e n t s , G e o r g e P u llm a n s u c c e e d e d in c o n s t r u c t i n g h is f i r s t s l e e p i n g c a r in 1 8 5 9 .
tL T h is v e h i c l e , s h o w n a b o v e , r e v o l u t i o n i z e d r a ilw a y t r a n s p o r t a t i o n , m a d e a f o r t u n e f o r M r . P u ll m a n ,




a n d s o o t h e d t h e n e r v e s o f m a n y t h o u s a n d tr a v e le r s .

Volume 149

ONE HUNDRED

—

T h e Com m ercial & Financial C hronicle —

Y E A R S OLD

2831

United States Trust Company
of New York
45 Wall Street, New York
C h a r t e r e d 1953

Condensed Statement as of September 3 0 , 1939

RESOURCES
Cash in Banks_____________________________ $ 59,301,363.23
Loans__________
23,193,778.27
Bills Purchased____________________________
6,936,700.00
United States Treasury Notes, due 1939 to 1944 16,517,750.00
United States Treasury Bonds, due 1941 to 1947
9,525,000.00
Other Bonds_______________________________
9,129,000.00
840,000.00
Stock in Federal Reserve Bank______________
Bonds and Mortgages______________________
5,865,923.94
Real Estate________________________________
2,000,000.00
Accrued Interest Receivable________________
344,417.34

LIABILITIES
Capital____ _______________________________ $ 2,000,000.00
Surplus___________________________________
26,000,000.00
Undivided Profits__________________________
2,812,919.23

$133,653,932.78

$133,653,932.78

Deposits___________________________________
Interest Accrued on Deposits_______________
Reserved for Taxes and Expenses____________
Unearned Discount________________________
Dividend Payable October 2, 1939___________

$ 30,812,919.23
101,498,186.83
315,532.06
718,669.99
8,624.67
300,000.00

United States Government and other securities carried at $355,000 are pledged to secure public deposits and for other purposes required bylaw.
TRUSTEES
W I L L I A M M. K I N G S L E Y ,

W ILLIA M SO N PELL, President

Chairm an
JOHN SLOANE
F R A N K L. P O L K
J O H N P. W I L S O N
BARKLIE H ENRY
G EO RG E de FOREST LORD

J O H N J. P H E L P S
A R T H U R C U RTISS JAMES
C O R N E L I U S N. B L I S S
VINCENT A ST O R

M E M B E R F E D E R A L D E P O SIT IN SU R A N C E

Bangor Hat Trade
The Bangor “ Whig” says there is an estab­
lishment in Bangor which manufactures
1,800 tarpaulin hats of excellent quality a
month, and employs in the business about
40 persons, many of them females, who are
enabled to maintain their children com­
fortably and give them the benefit of a good
education.
HUNT’S MERCHANTS’ MAGAZINE,
September, 1843

A Century of Achievement
(< o n c l u d e d f r o m
C

page

2830)

tain rearrangements of materials was inaugurated
in the belief that the convenience of the reader
would be served by such a change, and a table of
contents added for the same purpose. The supple­
ments have in several instances since 1915 been re­
titled and, as occasion required, rearranged. They
now have the status of separate publications.
Otherwise they remain much as they were in 1915.
We now come to the end of the first 100 years.
“ The past is secure, as far as the ‘Chronicle’ is con­
cerned,” to quote Mr. Seibert in 1915. “ The
future . . . has been provided for, as far as lies
within the power of human agency, but is neverthe­
less in the making. A half century hence a new
generation will in any event have appeared on the
scene, and will have to account for its acts. No
effort will be spared to make the retrospect at the
end of the second half century as satisfying as is
that which is now being contemplated at the end of
the first half century.”




R O L A N D L. R E D M O N D
HAM ILTON HADLEY
F R A N C I S T . P. P L I M P T O N
BENJAMIN S T R O N G

C O R P O R A T IO N

Transportation of Milk on the Erie RR.
The following statement of the revenues
ensuing from the transportation of the sin­
gle article of milk, for the four years ending
Dec. 31, 1845, is derived from the books of
the New York and Erie Railroad Company:
1812
$3,430.72

1843
$18,497.46

1844
$28,055.08

1845
$30,694.20

HUNT’S MERCHANTS’ MAGAZINE,
August, 1846

We need only add that neither will effort be
spared, so far as those now living can assure it, to
make the retrospect at the end of the second century
as satisfying as human effort can make it.

O n e o f t h e g r e a t f o r c e s in s h o r t e n i n g tim e a n d d is­
t a n c e o f c o m m u n i c a t i o n w a s t h e s u c c e s s f u l la y in g o f
t h e A t l a n t i c C a b le b y C y r u s F ie ld .
T h is s h o w s t h e
la n d in g o f t h e c a b l e a t H e a r F s C o n t e n t B a y , N e w
l
F o u n d la n d .

....

T h e F in a n cia l S itu ation
HE long-drawn-out debate over the so-called Congress whether or not it would prefer to avoid com­
neutrality bill is over. When these lines reach mitments during an election year, and there are many
the reader a new enactment touching this bedeviled others which ought to receive careful study and con­
question will either already be upon the statute book structive action. If the situation is allowed to drift
or about to be entered there, and members of Con­ along as it has been doing of late, whatever Congress
gress on their way home or ready to start on that does next year is likely to be haphazard and impulsive,
journey. The new measure is, of course, not pre­ rather than carefully planned, and more than one
cisely what the public supposes it to be, if the rank issue more or less certain to be avoided entirely.
and file have gained their impressions of it from the
Now for Reduced Expenditures!
headlines. It has been repeatedly referred to as a
One of the first things that needs to be done is to
bill to repeal the arms embargo provisions of the law
let Washington know in no
as it stood when the Presi­
uncertain tones that a
dent called the special ses­
“Little Pieces of Ideologies”
sharp reduction in expend­
sion of Congress into being
It is this importation of European ideolo­
itures is expected with­
several weeks ago, but the
gies that ought to concern us even more than
out further delay or eva­
the current European war. They fly over the
fact of the matter is that,
ocean with every gust of propagandistic wind.
sion. .The turn of events
although this was one of
First it was Marxian Socialism; then it was
since mid-summer, partic­
the purposes of the meas­
Stalinist Communism; then it was Mussolini’s
Fascism; and now it is Hitler’s Nazism. And
ularly since early Septem­
ure, there are other provi­
that is not all. There are all sorts of frac­
ber, presents an excellent
sions of a most sweeping
tional ideas— little pieces of ideologies; tiny
microbes that break off from the poisoned
opportunity for making a
variety, whose effect in
masses.— Howard Coonley, President of the
real beginning in paring
actual operation will not
National Association of Manufacturers, to
the Chamber of Commerce of the State of New
be fully known pending
outlays. Slack business,
York.
unemployment andthe con­
considerable experience
The greatest danger lies in “little pieces of
sequent neediness, real or
ideologies,” which, when taken in the aggre­
with them. Even any ad­
gate, constitute the American variants of the
imagined, of large groups
vance appraisal of their re­
“ ideologies” which, when given their Euro­
in the population have for
sults must await a careful
pean names or when recognized by Americans
for what they really are, gain foothold with
years on end been the stock
study of the texts of the
difficulty on our shores.
excuse for profligacy at the
various provisions embod­
We, or many of us, have a habit of saying
that Europe is years ahead of us in this or
National Capital. Business
ied in the measure as
that “social welfare movement,” or in the de­
is now no longer slack. The
finally adopted and signed
velopment of policies or mechanisms for re­
stricting or managing private enterprise, as if
Federal Reserve index of in­
by the President. Many
the mere fact that Europe has long ago
dustrial production for Sep­
of its terms are evidently
adopted such procedures places that conti­
tember stood at 110, or
nent “ahead” of us.
extremely drastic, particu­
Many of us do not stop to realize that these
seven points above August,
larly as regards American
“movements” are frequently but part and par­
when it had already regis­
shipping, going far beyond
cel of these very “ideologies” , socialistic, com­
munistic, fascistic or nazistic, that we profess
tered substantial gains.
anything that the ordinary
so much to detest and to fear, or else they are
The upturn apparently
rules of international law
“ little pieces” of these “ideologies” which
have broken off from the poisoned masses in
continued in October. “ In
require of us. It remains
countries devoted to these ideologies and
to be seen whether the pro­
many industries,” says so
have become rooted in other European coun­
tries which profess, as do we, to distrust in
careful and qualified an
tection it affords us, if any,
the “ideologies” from which they spring.
observer as the National
will be worth the price that
Thus we have a New Deal Administration
must be paid for its en­
City Bank, “ November
which is as susceptible to these “ tiny microbes
that break off from the poisoned masses” in
output will exceed October
forcement.
Europe or anywhere else as children are to
and the seasonal slackening
It is a good thing, how­
the measles, solemnly at work denouncing
and even spending substantial sums of money
toward the end of the year
ever, that the protracted
combating groups or organizations of foreign­
debate is no longer absorb­
will be less than usual.
ers alleged to be at work in this country try­
ing to convert us directly into adherents of
ing the whole attention of
This points to a level of in­
“ ideologies” to which the New Deal is in­
dustrial production higher
the people so far as na­
debted for many of its programs.
It is important that we, as a people, come to
tional governmental affairs
than the peak of 1936-37,
realize where the real danger lies in all this.
and possibly equal to the
are concerned. So long as
this issue was monopolizing
high of 1929, which was
the spotlight it was impossible, apparently, to persuade 125 in June, according to the Federal Reserve index
the public to give thought to numerous subjects con­ (1923-25 equal 100).”
cerning which there ought to be Congressional action
Although certain industries, notably steel, have
when the regular session gets under way after the moved ahead faster than others, the upward move­
first of the year. We now have approximately two ment of business activity is really quite general. The
months to prepare for next winter’s session of Con­ facts of the situation are admirably brought together
gress, and, as any thoughtful observer of experience in terse form in the current issue of the November
well knows, unless such preparation is carefully and monthly bank letter of the National City Bank of
vigorously made during that period of time, it will New York, appearing within the past few days.
prove difficult if not impossible to obtain any sys­ “ New railway equipment orders have reached the
tematic and constructive endeavor from Congress highest levels since 1936, at least. It seems likely
next year. There are a number of questions, such, that total freight cars ordered in 1939 will be around
for example, as the annual budget with all its many 65,000, most of the orders having been placed since
ramifications, which must receive the attention of Sept. 1. Tron Age’ estimates orders for rails at

T




Volume 149

ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD
—

—

2833

“ Th a t loan w ill put my business on
a better basis”

L ife is B E T T E R
because o f banks
The services and the resources of banks have
helped to make possible America’s rise from
humble beginnings. They have helped in the
development of industry, helped to produce
goods at less cost, helped to make life more
enjoyable.

than could be done without the loan, are activities
which create more jobs.

better for the family
Bank loans have permitted many families to m od­
ernize homes, making long wanted improvements
or needed repairs. They are assisting men and women
to meet medical expenses, educational costs, and

better for business men

emergencies o f all kinds.

Customers o f this Bank are continually using
loans to operate their businesses more profitably.

better for citizens generally

Loans permit them to take advantage o f cash dis­

Through supplying credit to municipalities, states

counts, to modernize equipment, to turn over capital

and the nation, this Bank has always had a part in

more often.

the growth and development o f our country.

better for employees

for your betterment

Loans advanced by this Bank are making jobs

Perhaps this Bank can help you in some o f the

because the credit extended enables a business to

ways outlined above, or through other services. You

expand its operations. Buying more raw materials,

are invited to talk things over at any one o f its con­

replenishing stocks o f goods, handling larger orders

venient offices.

B a n k of the M a n h a t t a n C o m p a n y
Catee 19
hr r d 79




The Bank o f Yesterday, Today and Tomorrow
Member Federal Deposit Insurance Corporation

ONE HUNDRED— The Commercial & Financial Chronicle— YEARS OLD

2834

B R O O K L Y N TRUST
COMPANY
MAIN OFFICE:
177 M ontague Street
B rooklyn , N. Y .

(§( 0 7 / M

z)

NEW Y O R K OFFICE:
26 Broad Street
New Y ork *
Y-

Summary of Statement
at Close of Business— September 30,1939
R E SO U R C E S

Cash on Hand and Due from Federal
Reserve Bank and Other Banks
.$46,626,336.48
U. S. Government Securities . . . 43,277,688.01
State and Municipal Bonds
. . . 5,086,099.79
Other S e c u r i t i e s ................................. 7,927,736.88
Call Loans and Bankers’ Acceptances 7,258,936.02
Demand Loans Secured by Collateral 7,073,968.66 $117,250,765.84
Time Loans Secured by C o l l a t e r a l ............................
Bills P u r c h a s e d ............................................................
Loans on Bonds and M o r t g a g e s .................................
Bank B u i l d i n g s ............................................................
Other Real E state............................................................
Customers’ Liability on A c c e p t a n c e s ......................
Other R e s o u r c e s ............................................................

3,169,826.43
10,735,942.26
2,570,088.86
5,386,076.20
923,715.78
8,534.12
659,996.57
$140,704,946.06

L IA B IL IT IE S

C a p i t a l .............................................................................
S u r p l u s .............................................................................
Undivided P r o fit s ............................................................
Reserves .............................................................................
D e p o sits.............................................................................
Outstanding A c c e p t a n c e s ............................................
Other Liabilities, Reserve for Taxes, E tc......................

$8,200,000.00
4,350,000.00
1,384,979.46
973,551.10
125,387,420.61
8,534.12
400,460.77
$140,704,946.06

As required by law, IT. S. Government and State and Municipal Bonds carried
at $6,162,900.94 are pledged to secure Public Deposits and for other purposes.

One of the Oldest Trust Companies in the Lnited States
M EM BER FED ERAL RESE RV E

SY STEM

A N D F E D E R A L D E P O S IT IN S U R A N C E

C O R P O R A T IO N

Nov. 4, 1939

approximately a million tons, and
total purchases of railway steel to
be shipped before next spring at the
equivalent of 2,400,000 tons of ingo ts.,, Turning to some of the
other branches of industry, the
bank says that “ mill consumption
of cotton in October possibly has
reached 700,000 bales, which is
close to the biggest month on
record. Many woolen mills are at
capacity on spring fabrics, with
heavy orders on hand. Automobile
output has been held back by the
Chrysler strike, but even without
one of the three largest producers
the industry has been turning out
75.000 or more cars a week, all
quickly taken by dealers whose re­
tail sales are encouragingly greater
than in the model introduction
period a year ago. An increase to
100.000 a week or higher is expected
when the strike ends. Paper and
glass manufacturers have stepped
up production. Mining operations
have expanded not only in coal
but in the non-ferrous metals, re­
sponding to unfilled orders, al­
though current sales have slack­
ened.
“ Retail trade improved in the
latter part of September, and has
held its gains in October. Depart­
ment store dollar sales are within
3% of the 1937 peak, according to

The Adventurous Spirit ofjAmerican Commerce
A late number of the London “ Daily News” graphically portrays the adventurous spirit of our American
commerce, after this manner:
“ We own to a cordial admiration of the spirit of American commerce, in its adventurous aspect. To
watch it is to witness some of the finest romance of our time. No idea can be formed of our own older,
quieter, more traditional way of setting to work. It was an American who first thought of carrying ice to
India. Instead of going out in ballast, as was often done then, with dollars to buy some oriental cargo
to exchange from place to place, coming home with something very rich indeed, he took out a cargo of ice
from a familiar Massachusetts pond. A fourth of the cargo melted while the people in Calcutta were learn­
ing what it meant, and the rest sold for six cents the pound. The next time plenty of buyers were on the
lookout; scarcely any ice had time to melt, and the price was nearly doubled; since which time it has been a
good speculation to send ice 12,000 miles, and thrust saltpetre out of the market. It was an American who
first saw the beauty of Manila hemp, though it was not unknown to us. He carried home a few bales, and
in ten years the importation rose to 20,000 bales. The Americans were on excellent terms with the Chinese
long before we could make anything of them. In Salem— well named the City of Peace from its civilizing
commerce— the highest order of mercantile spirit is found— a spirit which reminds the traveler of old Venice
and the Hanse towns. The particular dignity coveted at Salem is membership in its museum; and to be a
member it is requisite to have doubled both Capes and to have brought something remarkable from far lands.
There a young man’s education finishes with his being sent, not to his travels, but his voyage; and a father,
uncle or friend makes him supercargo of a good freight and sends him to China, or Borneo, or Madagascar.
Henceforth, it will probably be to Japan, or to shake hands with the Chinese in the plains of Tibet, or with
European travelers at Timbuctoo, for the New England merchants are penetrating to the very heart of Africa,
to handle the cotton and sell their goods. It is an every day matter for a Salem merchant to tell his wife
that they may as well go around the world, as he has a ship ready; and then the older children are sent to
school, and the infants and their parents sail^away, trafficking from land to land, in another hemisphere,
and returning with a little fortune, sunburnt faces and a batch of curiosities for the museum. We hail
such doings in any nation whatever, and in the American case this is evidently their true field of conquest.
If we would only emulate them as far as suits our different circumstances— making railways in India, and
raising cotton there, and wherever in our dominions it will grow— there would soon (as we may talk of inci­
dents in national life being soon— be an end of charge and recrimination; and offense and subtlety about
Cuba’s and ‘ Uncle Tom’s Cabin,’ and fishery and boundary questions would be found easy of settlement
between the two most commercial nations upon earth.”




HUNT’S MERCHANTS’ MAGAZINE— December, 1854

Volume 149

ONE HUNDRED

—

YEARS OLD

The Commercial & Financial Chronicle —

2835

I n te r e s t e x e m p t f r o m a ll p r e s e n t F e d e r a l I n c o m e T a x a tio n

$3,686,020

City of New Orleans, Louisiana
23
A% a n d 3 lA% R e f u n d i n g P a v in g C e rtifica te s

to be issued for refunding purposes, in the opinion of counsel will con­
stitute valid and legally binding obligations of the City of New Orleans, payable as
to both principal and interest from paving assessments heretofore levied on property
specially benefited in the City of New Orleans. In addition, for the payment of
principal and interest of the Certificates, the City has power and is obligated to levy
ad valorem taxes upon all the taxable property therein within the limits prescribed
by law.

These Certificates,

$2,336,020 2 % % Series B due January 1, 1951
Redeemable in whole or in part by lot from time to time, at the option o f the City, on any
interest payment date upon thirty days prior published notice at par and accrued interest.

Price 100.50 and accrued interest
$1,350,000 3V4% Series A due $ 150,000 annuallyjuly 1, 1940-1948
(The Series A Certificates have been sold)
These certificates are offered when, as and i f issued and received by us and subject to approval o f legality by
M essrs. Thomson W ood & H offm an whose opinion will be fu rn ish ed upon delivery.

,

HALSEY,STUART&CO. INC.
THE HIBERNIA NATIONAL BANK

,

PHELPS, FENN A CO.
WHITNEY NATIONAL BANK
OF NEW ORLEANS

IN N E W O R L E A N S

STONE & WEBSTER AND BLODGET

SCHARFF & JONES, INC.
,
NEW ORLEANS

INCORPORATED

E. H. ROLLINS &SONS

PAINE, WEBBER & CO.
.

KIDDER, PEABODY & CO.
WHITE, DUNBAR & CO., INC.
,
NEW ORLEANS

HEMPHILL, NOYES & CO.
.

JOHN NUVEEN & CO.
C H IC A G O

INCORPORATED

NUSLOCH, BAUDEAN & SMITH

BARROW, LEARY A CO.

NEW ORLEANS

SHREVEPORT

LAMAR, KINGSTON &LABOUISSE BROWN,CORRIGAN &CO.
NEW O RLEANS

WEIL &.COMPANY, INC.
NEW ORLEANS

FIRSTOF MICHIGAN CORPORATION

NEW ORLEANS

KOHLMEYER, NEWBURGER &CO.

F. L. DABNEY&CO.
BOSTON

NEW ORLEANS

FRED J. McCORMAC & CO.
NEW ORLEANS

BLAIR & CO., INC.

LEVY & ROONEY, INC.
,
NEW ORLEANS

WELLS-DICKEY COMPANY
M IN N E A PO LIS

JAC. P. DUCOURNAU
NEW ORLEANS

Dated July 1. 1939. Principal and semi-annual interest. January 1 and July 1. payable in New York City or New Orleans. Louisiana. CouponCertificates in the denomination of $1000 except one certificate in the denomination of $1020. The information contained herein has been carefully
compiled from sources considered reliable, and while not guaranteed as to completeness or accuracy, we believe it to be correct as of this date
November 4 ,1 9 3 9 .

the Federal Reserve Board’s sea­
sonally adjusted index, and as
prices are lower the movement of
merchandise must be considered
satisfactory. Moreover, mail order
houses and merchandise chains
have done better than department
stores. The evidence is that dis­
tribution is running closer to pro­
duction than in 1936-37, and that
large distributors have made their
commitments more conservatively
than at that time.
“ Many of the capital goods in­
dustries have had a strong pick-up,
with orders for railway and utility
equipment the largest since the
1936-37 period, at least. Machine
tool orders placed during Septem­
ber are reported the largest on
record, though publication of the
official figures has been suspended.
Shipbuilding and airplane manu­
facturing are at capacity and appar­




ently will continue so for the dura­
tion of the war. All capital goods
lines have improved export business
or inquiries.
“ Building contract awards in
September were the highest since
April, and 7.4% above the same
month last year. Total awards
dropped somewhat in the first two
weeks of October; but private con­
tracts continued to rise. Mortgages
accepted for insurance by the FHA
have continued high, and in the
week ended Oct. 21 were the largest
recorded with one exception. This
is the best indication that private
building is not entering a slump.”
P u b lic I n te r e s t E s s e n tia l

Our government relief system be­
ing what it is, and the nature and
habits of government generally be­
ing what they are, it would perhaps
be asking too much to expect out­

lays whose excuse has been the
severity of depression to show any
very marked reduction during the
month or two in which this record
of improvement has been made.
It is, however, certainly reasonable
to expect and to demand that they
show such a decline henceforth
and to continue to fall as long
as business remains as good as
it is now. Indeed, no one influ­
ence could be more effective in en­
suring a continuation of good busi­
ness than a convincing showing of
determination in Washington to set
our fiscal house in order. Of course
the budget for the year ending June
30, 1941, which must within about
60 days be presented to Congress,
should reflect this marked improve­
ment in business, in planned ex­
penditures as well as in expected
receipts. It will not do so, how­
ever, if the public does not bestir

2836




ONE HUNDRED

—

The Commercial & Financial Chronicle —

YEARS OLD

Nov. 4, 1939

itself in behalf of greater prudence
in the employment of taxpayers’
money. Next year is an election
year, and for most politicians the
line of least resistance otherwise will
be that of voting funds liberally in
order to curry favor.
There are likewise a number of
other questions, some of them in­
separably linked with public ex­
penditures and others largely unre­
lated, to which the improvement in
business lends added urgency. The
lasting quality of the recovery that
has taken place in business in re­
cent weeks is much in doubt in a
good many minds. It is generally
conceded that so much momentum
has been acquired that at least rela­
tively satisfactory activity is more
or less a certainty for a month or
two, at least, but after the turn
of the year, so a good many reason,
the situation may develop a differ­
ent turn. Needless to say there is
probably not a man or a woman in
his or her right senses between the
Atlantic and the Pacific who does
not desire to see the upward move­
ment continue and develop into a
sound and lasting recovery. The
question is how such an end can
best be ensured. It has already
been remaked that nothing could be
more helpful in giving this assur­
ance than setting our fiscal house in
order, while larger employment op­
portunities are present and expand­
ing. We now add that no other
measure or program could be more
helpful than convincing evidence of
a determination on the part of the
prople that their representatives in
Washington shall unshackle indus­
try and trade, and that nothing
could be more certain to shorten the
life of the recovery that has devel­
oped than the addition of further
restrictions, additional meddling
with business on the part of gov­
ernment, or what might be termed
another offensive movement on
the part of the New Deal which
seems to promise successful con­
summation.
A n E x c e lle n t R e c o r d

The record of business manage­
ment during the past month or two
of temptation is such that, with
proper defense, it should be rather
invulnerable to attack of the usual
New Deal sort, but there is the war
excuse for more regimentation,
which must not only be combated
but revealed for what it really is— a
sound and urgent reason for a sharp
reversal of policy in Washington.
Faced six weeks ago with almost
panicky buying of various com-

Volume 149

ONE HUNDRED—The Commercial & Financial Chronicle— YEARS OLD

2837

KIDDER, PEABODY & CO.
Government and Municipal Bonds
Investment Securities Corporate Financing
Foreign Exchange
T r a v e lle r s , L etters o f C r e d it

issued jointly with

B a r i n g B r o t h e r s & C o ., L t d .
of

NEW YORK

L ondon

BOSTON

PHILADELPHIA

Members of the N ew York and Boston Stock Exchanges

modities by everyone from the
housewife to the speculator, prices
first rose rapidly and then settled
down sanely. Manufacturers almost
with one accord not only counseled
moderation in pricing finished goods
but practiced what they preached.
The result is that, except for certain
commodities where prices were
deeply depressed, most goods can
today be purchased for little if any
more than last summer, and in a
number of notable cases prices of
finished goods have been reduced in
the face of rising costs of materials
and the distinct possibility if not
the fact of rising labor expense.
Equally important is the fact that,
despite activity quite comparable
to that of the peak of the 1936-37
boom, we have heard very little of
the “ bottle-necks” which plagued
us two or three years ago. Every
assurance has thus been given the
consumer that ample supplies of
goods either exist or will be pro­
duced as rapidly as needed, barring,
of course, very large foreign buying
in this country by the warring
Powers of Europe. Labor has in
some instances given indications of
restlessness and unwillingness to
“ do its part,” but for this business
can scarcely be held responsible.




Indications are, none the less,
not wanting that the powers that
be in Washington are suffering
from the same old itch to meddle
and that they are convinced that
the so-called war emergency offers
an opportunity even if the conduct
of the business community does
not. The Attorney General’s office
seems to have come to the belief
that the anti-trust laws were de­
signed to give it a sort of left-handed
control over prices— a control to be
exercised chiefly by badgering en­
terprises in any branch of industry
where prices do not conform to the
ideas of the Administration. The
Tem porary N ational Economic
Committee seems to feel itself in
duty bound to act about the same
role. The extraordinary powers
now held by the President and the
various officials and organizations
under his direction render it quite
a simple matter for the Adminis­
tration to make of itself a thorn in
the flesh of business in a thousand
different ways— many of them ex­
tra-legal if not illegal. Giving all
this a more serious aspect is the fact
that activities of this sort as often
as not are in reality directed at
building up public sentiment to
support additional legislation of a

most undesirable kind. The coun­
try faces an urgent need not only of
combating all this administrative
meddling with business and any
program for laying the basis for
more of it by legislation next year,
but of taking the offensive, as it
were, in ridding ourselves as soon
as possible of those unwise meas­
ures of this general description
which have found their way to the
statute book during the past halfdozen years. The so-called neu­
trality bill is now out of the way for
the time being, at least. Let us not
permit European distractions, or
war orders, if they materialize in
substantial amounts, to prevent a
thorough-going study of our domes­
tic situation for the purpose of set­
ting our own house in order.
Federal Reserve Bank Statement
A F T E R a long period of steady
expansion in the credit re­
sources of the United States, the
current banking statistics finally in­
dicate a turn, which may or may not
prove temporary. Excess reserves
of member banks over legal require­
ments are estimated as of Nov.
1 at $5,380,000,000, down $150,000,000 for the statement week.
The factors occasioning this decline
E ~ \

ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD

2838

—

—

N ov. 4, 1939

were chiefly an increase of $50,000,000 in currency circulation, sizable
increases of Treasury, foreign bank
and other deposits with the Federal
Reserve banks, and a further reduc­
tion of $14,940,000 in the open mar­
ket portfolio of United States Treas­
ury securities. Monetary gold stocks
of the country advanced $60,000,000 to $17,099,000,000, but this in­
fluence for the expansion of credit
resources was overshadowed by the
contrary items. It would appear,
moreover, that the tremendous
total of excess reserves will be whit­
tled down further in coming months
unless altogether extraordinary
events occur. The period of autumn
expansion of currency circulation is
at hand and is due to extend to the
holiday season. The Treasury,
moreover, has resumed new money
borrowing on a large scale through
agency flotations, and has given
notice of an intention to borrow
$500,000,000 directly in coming
weeks.

Offer to Holders of Certain

Hungarian Municipal, Ecclesiastical and
Private Long-Term Bonded Debts
The Cash Office o f Foreign Credits at Budapest, Hungary, hereby announces
that pursuant to the Offer of the Cash Office, published on July 23, 1937, it will
redeem coupons o f the maturity, and with respect to the issues, hereinbelow specified,
during the period stated, at the rate of $8.75 per coupon detached from a $1,000
bond. Such payment will be made through its Central Paying Agents in New York,
SCHRODER TRUST COMPANY, 46 William Street, New York, N. Y.
This Offer does not apply to coupons attached to any of the securities below
mentioned which shall have been stamped and registered as being in Hungarian
ownership under the Decree of the Hungarian Cabinet Council, No. 300/1936 M. E.
and is made only to persons resident outside of the Kingdom of Hungary or firms or
corporations situated outside Hungary, excluding branches thereof in Hungary.
Coupons presented in acceptance o f this Offer must be transmitted to
SCHRODER TRUST COMPANY, as Central Paying Agents of the Cash Office of
Foineign Credits, together with a form o f letter of transmittal which is obtainable
from such Paying Agents.

N e of Issu
am
e
Cu o D
o p n ate
O E ires
ffer xp
H N AR
U G IAN LAN M R G G IN
D O T A E STITU
TE N
ovem 1, 1939 A ril 30, 1940
ber
p
7y2% S k g F n L d M
in in u d an
ortgage G ld
o
B d S
on s eries “A” D
ollar B n
od
H N AR
U G IAN LAN M R G G IN
D O T A E STITU
TE N
ovem 1, 1939 A ril 30, 1940
ber
p
7V % S k g F n L d M
2
in in u d an
ortgage G ld
o
B ds, S
on
eries “B” D
ollar B n
od
N
ATIONAL H N AR
U G IAN IN U IA
D STR L
N
ovem 1, 1939 A ril 30, 1940
ber
p
M R A E IN
O TG G
STITU LTD F M
TE
. irst ort­
gage S k g F n 7% G ld B dS
in in u d
o on eries “A”,
D
ollar issu
e
November 1, 1939.

Cotton from Brazil
In s e a r c h in g t h e w o r ld fo r s u p p lie s o f c o t t o n to f i l l t h e h i a t u s c a u s e d b y t h e S o u t h e r n b lo c k a d e , t h e
m o s t h o p e f u l p a r ts h a v e r eceiv ed s c a r c e ly a n y a t t e n t i o n .
in g .

B r a z il is a m a g n if ic e n t c o u n t r y fo r c o t t o n -g r o w ­

A s lo n g a s t h e y e a r 1 8 5 6 , G r e a t B r it a in im p o r t e d fr o m B r a z il n e a r ly 2 2 ,0 0 0 ,0 0 0 p o u n d s o f t h is s t a p le ,

o f w h ic h a b o u t o n e -t h i r d w a s s e n t o u t fr o m t h e p o r t o f P e r n a m b u c o .

W e are r e m in d e d o f t h is f a c t b y t h e

a rr iv a l fr o m t h e sa m e p a r t o f t h e g lo b e o f a c o n s id e r a b le q u a n t i t y o f c o t t o n a t N e w Y o r k .

C o t t o n c u lt u r e

in B r a z il is y e t in it s i n f a n c y , b u t a s t h e riv er a n d c o a s t n a v ig a t io n is e x t e n d e d b y t h e e m p lo y m e n t o f s t e a m ­
e rs a n d t h e in te r io r is m o re i n t im a t e l y c o n n e c t e d w it h t h e s e a b o a r d b y t h e c o m p le t io n o f lin e s o f r a ilw a y , w e
m a y c o n f i d e n t ly r e ly o n a r a p id in c r e a s e o f p r o d u c t i o n .

A m o n g t h e n e w r a ilr o a d s w h o lly fin i s h e d o r in

p r o g r e s s is o n e fr o m B a h ia , o n e fr o m P e r n a m b u c o a n d t w o fr o m R io d e J a n e ir o .

T h e c o a s t w is e t r a d e b e in g

n o w th r o w n o p e n to fo r e ig n s h ip p in g , in c r e a s e d f a c ilit ie s w ill b e e n j o y e d fo r c o n c e n t r a t i n g a t t h e s e p o i n t s
t h e p r o d u c t s o f t h e in t e r io r , a n d B r it is h a n d F r e n c h c a p i t a li s t s w ill e a g e r ly a v a il th e m s e lv e s o f e v e ry n e w
a d v a n ta g e .

B r a z ilia n t r a d e , fo r m e r ly e n g r o s s e d b y t h e U n it e d S t a t e s t o a la r g e e x t e n t , is g r a d u a lly s lip p in g

a w a y fr o m u s t h r o u g h t h e e f fo r t s o f m ore e n e r g e t ic r iv a ls— G r e a t B r it a in s u p p o r t in g tw o d i s t i n c t lin e s o f
fir s t -c la s s s t e a m s h ip s a n d F r a n c e t w o , b e s id e s lin e s t o G e n o a , H a m b u r g , B e lg iu m a n d P o r t u g a l.

F rom th e

y e a r 18 50 , w h e n G r e a t B r it a in fir s t e s t a b lis h e d s te a m m a il fa c i li t i e s , t o 18 5 5 , s h e d o u b le d a la r g e t r a d e
o f p r o fit a b le e x p o r ts , w h e r e a s b e fo r e a d v a n t a g e s w ere t h u s t u r n e d in h e r fa v o r , t h e U n it e d S t a t e s d e fie d a ll
c o m p e t it io n .

T h u s w e se e t h a t t h o u g h g e o g r a p h ic a lly m u c h n e a r e r , a n d e n j o y in g in a p e c u lia r s e n s e t h e

fa v o r o f t h e B r a z ilia n G o v e r n m e n t a n d p e o p le , a n d p o s s e s s in g a la r g e v a r ie ty o f c o m m o d itie s a d a p t e d t o a
p r o fit a b le e x c h a n g e , w e h a v e a llo w e d a r ic h t r a d e t o be d iv e r te d fr o m u s , a n d t h e G r e a t R e p u b l ic t o b e
d e p r iv e d o f t h a t c o m m a n d in g in f lu e n c e w h ic h i t s h o u ld e x e rc ise a m o n g t h e fr e e g o v e r n m e n ts o f t h e W e s t e r n
c o n tin e n t.
B r a z il is a t t h e h e a d o f S o u t h A m e r ic a n S t a t e s .

S in c e t h e e s t a b l is h m e n t o f t h e e m p ir e , in 1 8 2 2 , s h e h a s

m a d e s u b s t a n t i a l a n d u n fa lt e r in g p r o g r e s s in a ll t h e e le m e n t s o f n a t i o n a l g r e a t n e s s .
T h e g lo w in g d e s c r ip ­
t io n g iv e n b y F la d fie ld ’ s w o r k o n B r a z il— p u b lis h e d in L o n d o n a fe w y e a r s a g o — is f u l l y d e s e r v e d .
H e says:
“ I f o n c e t h e tid e o f e m ig r a tio n b e g in s t o se t fa ir ly to w a r d t h a t im m e n s e a g r i c u l t u r a l fie ld , w a te r e d b y
t h e riv ers o f S o u t h A m e r ic a , t h e r e is n o fo r e s e e in g t h e e x t e n s io n o f w e a lt h a n d p r o s p e r ity t h a t m u s t a s s u r ­
e d ly fo ll o w ; fo r p o p u la t io n is th e so le r e q u ir e m e n t to f i t t h e s e lim itle s s a n d t e e m in g r e g io n s t o w o r k o u t
t h e d e s t in y w h ic h i t is im p o s s ib le t o d o u b t t h a t P r o v id e n c e h a s d e s ig n e d fo r t h a t p o r t io n o f t h e e a r t h ,
w h e r e t h e m a je s t y a n d lu x u r ia n c e o f n a t u r e in v it e t h e p r e s e n c e o f m a n t h r o u g h h ig h w a y s a t o n c e th e
m ig h t ie s t a n d m o s t fa c ile in t h e w o r ld .”
A m e r ic a n s h a v e n o t b e e n w h o lly u n m in d f u l o f th e ir o p p o r t u n i t i e s .

In t r u t h , A m e r ic a n e n e r g y h a s

b e e n la r g e ly i n f u s e d , d ir e c t in g in t h e c o n s t r u c t i o n o f r a ilw a y s , e n c o u r a g in g m a n u f a c t u r e s , a n d s t im u la t in g
tra d e .

A t S t . A le x is , a n A m e r ic a n e r e c te d a c o t t o n f a c t o r y , t h e f i r s t in t h e P r o v in c e o f R io d e J a n e ir o .

t h is is c a u s e fo r c o n g r a t u la t i o n s .

A ll

B u t if in p a s t y e a r s t h e U n it e d S t a t e s G o v e r n m e n t h a d e n g a g e d m o re

e a r n e s t ly in e f fo r t s fo r t h e e s t a b l is h m e n t o f s te a m m a il lin e s , w e s h o u l d n o w e n j o y t h a t p r e -e m in e n c e
c la im e d b y a n o t h e r , a n d b e e n a b le d to a p p r o p r ia te to o u r s e lv e s t h e a d v a n t a g e s a r is in g fr o m t h e b e s t c o t t o n ­
g r o w in g r e g io n o f t h e w o r ld b e y o n d t h e lim its o f o u r c o u n t r y .

B r a z ilia n c o t t o n is a lw a y s g o o d , c o m m a n d in g

a h ig h e r p r ic e in t h e L iv e r p o o l m a r k e t t h a n t h e a v e r a g e fr o m A m e r ic a n p l a n t a t i o n s , a n d m a y y e t c o n t r i b u t e ,
in a n e s s e n t ia l d e g r e e , t o relie ve t h e e m b a r r a s s m e n t t r a d e is s u f f e r i n g .
s h o u l d r e m u n e r a t iv e p r ic e s c o n t i n u e .

I t s c u lt u r e w ill r a p id ly e x t e n d ,

D u r in g t h e p a s t y e a r a n E n g lis h h o u s e in B r a z il is s a id t o h a v e

c le a r e d $ 1 ,5 0 0 ,0 0 0 in t h is t r a d e , a n d s t il l a n o t h e r h a s p r o fit e d v e ry la r g e ly .
O n t h e r e t u r n o f p e a c e , w e m ay h o p e o u r r e la t io n s w it h B r a z il w ill r e c e iv e p r o p e r a t t e n t i o n .




H U N T ’ S M E R C H A N T S ’ M A G A Z I N E — M a r c h , 1863

Volume 149

ONE HUNDRED—The Commercial & Financial Chronicle—YEARS OLD

It is especially noteworthy that
the Federal Reserve banks con­
tinued in the last statement week
their lowering of the open market
holdings of United States Treasury
securities, notwithstanding the gen­
erally downward trend of excess re­
serves. The drop of $14,940,000
carried the aggregate downward to
$2,720,819,000. It was effected
entirely in Treasury discount bill
operations, such instruments falling
to $159,380,000, while bond hold­
ings remained unchanged at $1,315.942.000, and note holdings were
similarly motionless at $1,245,497,000. The bulge in holdings occa­
sioned by the September support of
the Treasury securities market is
diminishing week by week, but still
remains sizable. There is no deny­
ing the advisability of continuing
the process of liquidating more of
these securities, even if excess re­
serves were to drop heavily from the
current level. It must be added,
however, that the open invitation
to credit expansion on a huge scale
implied by the excess reserves figure
remains unaccepted. The state­
ment of New York City reporting
member banks indicates an increase
of business loans by $9,000,000 to
$1,672,000,000, while loans to brok­
ers on security collateral advanced
$5,000,000 to$472,000,000. Neither
set of figures can be regarded as
indicative of undue demand for
accommodation.
The Treasury deposited $34,996,000 gold certificates with the
Federal Reserve banks in the state­
ment week, raising their holdings to
$14,839,206,000. This was offset
in part by a drop of other cash, and
the total reserves of the regional
banks moved up $30,503,000 to
$15,187,920,000. Federal Reserve
notes in actual circulation increased
$37,668,000 to $4,781,385,000. To­
tal deposits with the 12 banks de­
clined $15,197,000 to $12,953,024,000, with the changes in accounts
indicative of some unusual trans­
actions. Member bank reserve bal­
ances declined $136,782,000 to $11,813.664.000, for funds were si­
phoned into all other accounts. The
Treasury general account balance
increased $23,027,000 to $349,030,000. Foreign bank deposits moved
up $51,983,000 to $470,881,000,
obviously as a result of a transfer of
officially controlled funds from de­
posit account with local member
banks. Other deposits increased
$46,575,000 to $319,449,000. The
reserve ratio remained unchanged
at 85.6%. Discounts by the re-




CONGRATULATIONS
TO
THE COMMERCIAL
AND FINANCIAL
CHRONICLE
ON A
CENTURY OF
CONSTRUCTIVE SERVICE

BA N KERS TR U ST
COM PANY
SIXTEEN WALL STREET, NEW YO R K

Member o f the Federal Deposit Insurance Corporation

Lawrence Turnure & Co.
FOUNDED 1832
,,
a _ f New York Stock Exchange
.
Members
York Coffee and Sugar Exchange
Associate Member, New York Curb Exchange

One Wall Street

New York

Teletype No. NY 1-1642

Telephone WHitehall 3-0770

Cable Address Turnure

2839

ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD

2840

—

—

N ov. 4, 1939

gional banks increased $497,000 to
$6,248,000. Industrial advances fell
$83,000 to $11,680,000, while com­
mitments to make such advances
fell $133,000 to $10,023,000.
New York Stock Market

ITH occasional exceptions,
stock prices drifted slowly
lower this week in a series of
moderately active sessions. The
dealings plainly reflected growing
uncertainty as to the course of the
European war and the industrial
upswing that started last September
on the outbreak of the conflict.
Military activities on the Western
Front were only a semblance of
warfare, probably because of the
rains that have turned the area
into a sea of mud. All experts
agree, moreover, that the stalemate
may easily continue throughout
the winter.
This possibility di­
minished much of the speculative
enthusiasm that sent stocks sharply
higher in the New York market
during September, as orders from
the Allies for war and other ma­
terials may be far under original
forecasts of a few observers. Even
the action by the Senate and the
House on the amendments to the
neutrality law failed to stimulate
any buying of consequence, save
in a few airplane manufacturing
issues. The market appeared to
realize more and more distinctly
that a “ war boom” necessarily is
contingent on the character of the
conflict, which so far has been
startlingly out of line with pre­
dictions.
As for the domestic
business improvement, the evidence
pointed toward advance buying, in
anticipation of a war boom, and
the circle thus was completed.
Dribbling liquidation was the
rule in all sessions of the week,
although a little buying interest
developed from time to time. The
trading hovered around the 1,000,000 share mark, and usually moved
over that line only when selling
took place. An announcement by
the Securities and Exchange Com­
mission on “ insider” trading during
September probably affected the
market adversely, for it indicated
that the “ insiders” sold while the
market was advancing. Continued
strikes in some sections of the
automobile industry also proved a
bearish factor. The airplane manu­
facturing stocks proved the chief
exception to the mild downward
trend, these issues advancing on
the change in our neutrality laws,
which will permit the export of

W

Craf t smanship
Respected the World Over
Engraving is an industry which retains its traditions—
where painstaking work and uncompromising quality
are honoured still. Since 1858, when its predecessors—
a group of skillful steel engravers with mutual ideals for
their profession—were incorporated, this company stead­
ily has broadened its business sphere. Today its products
—bank notes, bonds, stock certificates, letters of credit,
postage or revenue stamps and other fiscal instruments—
are utilized in more than three-quarters of the civilized
world. This achievement is a significant tribute to an
enterprise holding to the highest precepts of its art.

A m e r i c a n B a n k N o t e Co m p a n y
7 B O D S R E , N YO K
0 R A T E T EW R

In terest e x e m p t fr o m

a ll p r e s e n t F ed era l a n d N e w

Y o r k S ta te I n c o m e T a x a tio n

i 6 ,o o o

City o f N e w Rochelle, New York
1.90% Bonds
Due serially November 1, 1940 to 1949, inclusive
Legal In vestm en t, in our opinion, for Savings Banks and Trust F unds
in New York State

•

T h e s e B o n d s , to be issued for various purposes, in the opinion

of counsel will constitute valid and binding obligations of the
C ity of N ew Rochelle, payable from ad valorem taxes levied
against all the taxable property therein without limitation as
to rate or amount .

Prices to yield 0.40% to 2.10%
T h e s e b o n d s a r e o ffe r e d w h e n , a s a n d i f is s u e d a n d re ce iv e d b y u s a n d
s u b je c t t o a p p r o v a l o f le g a lity b y M e s s r s . C a ld w e ll & R a y m o n d ,
w h o s e o p i n i o n w ill be f u r n is h e d u p o n d e liv e r y .

HALSEY, STUART & CO.
STRANAHAN, HARRIS & CO.

Inc.

B. J. VAN INGEN & CO. INC.

IN C O R P O R A T E D

OTIS & CO.
(IN C O R P O R A T E D )

Dated November 1, 1939. Principal and semi-annual interest, May 1 and November 1, payable in
New Rochelle. Coupon Bonds in the denomination of $1,000, registerable as to principal and Interest.
The information contained herein has been carefully compiled from sources considered reliable, and
while not guaranteed as to completeness or accuracy, we believe it to be correct as of this date.
November 3, 1939.




( C o n tin u e d o n p a g e

2844)

ONE HUNDRED

Volume 149

—

The Commercial & Financial Chronicle —

OF NEW YORK
Maim Offiaa:
149

Uptown Office:

BROADWAY

1002 MADISON AVE.

(Bat.

(Simgar Bm
iltUmg)

77th 9 78th Sts.)

Specializes in

Personal Trusts
Personal llankinfi
and

ROAKO OF DIRECTORS
L e w is S p e n c e r M o r r is , C h a i r m a n o f t h e B o a r d
E dm und p . R o g ers, C h a ir m a n o f th e E x e c u t iv e C o m m itte e

2841

THU
11111

fTTIIMIIIIIIIIIIIIIMIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIlHIIIIIIIIIIIIIIIIIIIIIIIIIIIIimillllllllllllllllllll

Fiilton Trust Company

YE A R S OLD

IBi T il VI'

; NATIONAL
Ban k
AND TRUST COMPANY
m O E NEW YORK
| Service—
Maintaining an intimate,
i personalized correspondent bank
| service.
(

1 Experience—
Officials with years
o f service in this field, assuring a
; k n o w le d g e o f r e q u ir e m e n ts and
j valuable assistance.
j Policy — T o cooperate with out-of| town banks rather than compete for
- business which is rightfully theirs.

A r t h u r J. M o r r is , P r e s i d e n t
R obert G oelet
E dw ard D e w it t
J ohn D . P e ab o d y
Sta n l e y A . S w e e t
B e r n o n S. P r e n t ic e
F r a n k l in B . l o r d

R u ssell E. B u rk e

St e ph e n C . C l a r k
C h a r l e s S c r ib n e r
C h a r l e s S. B r o w n
J o h n a . L a r k in
R u s s e l l V . C r u ik s h a n k
O ’ D o n n e l l I s e l in
D e C o u rsey F a les
E . T o w n s e n d I r v in
C h a r l e s J. N o u r se
Member Federal Reserve System and Federal Deposit Insurance Corporation
H e n r y W . B ull

liiiiiiiiiiim iiiiiiiiiiiiiiiim iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiimiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii

Resources over

$ 1 6 5 ,0 0 0 ,0 0 0

ESTABLISHED 1908
MEMBER
NEW VORK CLEARING HOtJSE ASSOCIATION
FEDERAL DEPOSIT INSURANCE CORPORATION

Statistics of Lowell Manufactures
A large proportion of our fellow-citizens are ignorant of the deep root which domestic manufactures
have taken in our country, and the vast impulse which home industry is already giving to commercial affairs,
and the certain and steady market they afford to the Southern planter for the great staple article of Cotton.
Take Lowell, only one manufacturing village, for instance, and we find an investment of nine millions of
capital, 28 mills in active operation, exclusive of print works, 163,404 spindles, and 5,094 looms, requiring 890
bales of cotton per week, or 46,280 bales per annum; manufacturing weekly 1,061,250 yards of goods of various
descriptions, 255,000 of which are printed, and giving employment to 2,077 males, 6,470 females, and furnish­
ing to the farmers in the neighborhood a ready market where their products are convertible to cash; for the
hands are always paid off in money once a month, at least. The principal establishments are the Merri­
mack, Tremont, Suffolk, Lawrence, Appleton, Hamilton, Lowell and Boot mills; to the above may be added
the extensive Powder Mills of O. M. Whipple, Esq.; the Lowell Bleachery, Flannel Mills; Card and Whip Fac­
tory; Planing Machine; Reed Machine; Flour, Grist, and Saw Mills; together employing above 300 hands
and a capital of $300,000. And in the immediate vicinity, Glass Works and a furnace supplying every de­
scription of castings for machinery and engines for rail roads.
The Locks and Canals Machine Shop, included among the 28 mills, can furnish machinery complete for
a mill of 5,000 spindles in four months, and lumber and materials are always at command with which to build
or rebuild a mill in that time if required. When building mills, the Locks and Canals employ, directly and
indirectly, from ten to 1,200 hands.
One hundred pounds of cotton will produce 89 pounds of cloth. Average wages of females, clear of
board, $2 per week. Average wages of males, clear of board, 80 cents per day. Medium produce of a loom
on No. 14 yarn, 44 to 55 yards per day. Medium produce of a loom on No. 30 yarn, 30 yards per day. Average
per spindle, 1 1-0 yard per day. Persons employed by the companies are paid at the close of each month.
Average amount of wages paid per month, $145,000. A very considerable portion of the wages is deposited
in the savings bank. Consumption of starch per annum, 600,000 lbs. Consumption of flour for starch in
the mills, print works and bleachery, per annum, 3,000 bbls. Consumption of charcoal, per annum, 500,000
bushels.
When we consider that these establishments were only commenced in 1822, no one can resist the con­
clusion that, interrupted as it may be for a time, the United States is destined to prove a great manufactur­
ing nation, and the thousand establishments for manufacturing and mechanical purposes with which the
face of the earth is dotted all over proves that it has taken a firm footing in the soil, and legislation may
control or impede, but cannot prevent its growth. We say nothing at the present moment of other estab­
lishments, of which we propose hereafter to furnish statistical information; but this astonishing progress of
one manufacturing settlement in Massachusetts alone awakens our admiration, but cannot withhold our
meed of praise.
HUNT’S MERCHANTS’ MAGAZINE— July, 1839




ONE HUNDRED

2842

—

The Commercial & Financial Chronicle —

Y E A R S OLD

Nov. 4, 1939

F. H. P R IN C E & CO.
BANKERS

o m

r

S

e c o n d

PROVIDENCE, RHODE ISLAND
HIGH-GRADE INVESTMENTS

J e

n

/ ic e
Members
New York, Chicago & Boston Stock Exchanges

Wellington & C o .
M em b ers N ew

Y o rk S to ck E x ch a n g e

120 B ro a d w a y
NEW

YORK

O T T O FU E R ST & C O .
Members New York Stock Exchange
120 B r o a d w a y

The R ook ery,
LaSalle Street,
Chicago — f i r s t
hom e o f T h e
Northern Trust
Company in 18 8 9

it h

pardonable pride,The N orth­

veys its record o f fifty years o f service.
But more important than the mere
time, is what has actually been accom­
plished during that period. For the
country at large, the last half century
has brought sweeping changes. For
The Northern Trust Company, it has
meant continuous expansion to keep
pace w ith the financial needs of a stead­

/S'# ?

Y ork

A u stralia and New Zealand

BANK OF
NEW SOUTH WALES

ily increasing number o f customers.
P h y sica lly , Th e N orthern Trust
Company o f today is a vastly different
institution from that of 1889. But there
has been no change in spirit. Still evi­
dent is a close adherence to the sound
principles laid down by the founders.
N ow as then, friendly, individual serv­
ice and careful financial operation are
— and w ill continue to be— the most
cherished objectives.

W ern Trust Company this year sur­

N ew

Cables: “ Lindros”

(ESTAB
LISH 1
ED 817)
P
aid-U Capital_____________ £8,780,000
p
R
eserve Fund_______________ 6,150,000
R
eserve Liability of Proprietors-. 8,780,000
£23,710,000
Aggregate A
ssets 30th Sept., 1938.£127,064,001
SIR ALFR
ED D
AVID N K.B.E.,
SO ,
G
eneral M ager
an
H O
ead ffice: G
eorge Street, SYDNEY
The Bank o f New South Wales is the oldest and
largest bank in Australasia. With over 900
branches in all States o f Australia, in New
Zealand, Fiji, Papua and New Guinea, and
London, it offers the most complete and efficient
banking service to investors, traders and travellers
interested in these countries.

/?2 9

THE NORTHERN TRUST COMPANY

LO D N O
N O FFIC
ES:
29 Threadneedle Street, E.C.
47 B
erkeley Square, W 1
.

NORTHW EST CORNER LASALLE AND M ONROE STREETS, CHICAGO

Agency Arrangements with Banks throughout
the U. S. A.

Member Federal Deposit Insurance Corporation

Improvement in the Manufacture of Sugar

A Business Girl
W e a r e w e ll a c q u a i n t e d w it h a y o u n g a n d
very h a n d so m e

g ir l, sa y s th e a c c o m p lis h e d

M r.

L.

Jf

M c C o r m ic k ,

( L a .) , h a s in v e n t e d

of

B a to n

R ouge

a n im p r o v e m e n t in t h e

e d i t o r o f t h e “ M e r c h a n t s ’ L e d g e r ,” w h o h a s

m a n u fa c tu r e o f s u g a r w h ic h c a n n o t fa il to

th e

b e o f g r e a t a d v a n ta g e to p la n te r s .

p r in c ip a l

m anagem ent of a

la r g e

m er­

c a n t ile e s t a b li s h m e n t in a f lo u r is h i n g c o u n ­

B y th is

i n v e n t i o n , o n e c o r d o f w o o d a l o n e is s u f f i ­

tr y to w n , w h o v is its d iffe r e n t c itie s

a lo n e ,

c ie n t

sto p s

s u p p lie s

of dry

l b s .) o f s u g a r ; w h i c h is le s s t h a n o n e - t h i r d

g r o c e r ie s ,

sh oes,

of th e

a t h o te ls ,

good s,

p u rch ases

h ard w a re,

n ic k n a c k s ,

and

c h in a ,
a ll

m u ltifa r io u s

s a la b le s

to

m a n u fa c tu r e

fu e l n ow

sam e r e s u lt.

con su m ed

h ogsh ead
to

M r. M c C o r m ic k

th e

enough,

m u s t b e r e m u n e r a te d in som e w a y ; a n d if th e

b u s in e s s

have

n e v e r y e t le a r n e d

as

b e lo n g s

to

h er;

and

we

t h a t sh e h a s s a c r i­

th is

produ ce

s a y s , n a iv e ly

w h ic h m a k e u p “ a s t o c k ” in a m is c e lla n e o u s
su ch

e s ta b lis h

( 1 ,0 0 0

sto re .

S h e g i v e s n o t e s , m a k e s c o n t r a c t s , a ll

“ To

one

in v e n tio n ,

I

su g a r p la n te r s h a v e n o t th e lib e r a lity a n d
e n te r p r is e

to

p a y fo r its

e s ta b lis h m e n t

on

fic e d o n e io ta o f th e d ig n it y , a d m ir a tio n a n d

th e ir p la n t a t io n s , t h e y m a y h a v e t h e fir m ­

re sp e c t w h ic h are h er ju s t d u e as a y o u n g ,

n e s s t o r is k a fe w t h o u s a n d d o lla r s in a b e t

a m ia b le a n d v e ry p r e tt y w o m a n .

t h a t i t w ill n o t s u c c e e d .”

H U N T ’S M E R C H A N T S ’ M A G A Z IN E ,




A p r il, 1853

H U N T ’S M E R C H A N T S ’ M A G A Z IN E ,
S e p te m b e r , 1839

Volume 149

ONE HUNDRED— The

FINCH,WILSON & CO.
M em b ers N ew

Y o r k S to ck E x ch a n g e

S tocks and Bonds
Commission Orders CarefullyExecuted for Institutions
and Individuals

Commercial & Financial Chronicle —

Y E A R S OLD

2843

FARMERS DEPOSIT
NATIONAL BANK
OF

120 Broadway, New York

PITTSBURGH

ESTABLISHED

1832

STATEMENT OF CONDITION ■ OCTOBER 2 - 1 9 3 9

LAMBORN & CO., INC.
99 Wall Street, N. Y. C.

SUGAR

RESOURCES
$

36, 577, 653.77

CASH AND DUE FROM BANKS

.

.

.

.

U. S. GOVERNMENT SECURITIES

.

.

.

.

53, 676, 232.57

OTHER BONDS AND SECURITIES .

.

.

.

9, 392, 460.87

Export— I mports— Futures
D Igby 4-2727

Royal Bank of Scotland
Incorporated by Boyal Charter 1727

LOANS AND D I S C O U N T S .............................................

11, 687, 008.07

BANK B U IL D IN G ...................................................................

F o r e ig n

4, 802, 310.72

OTHER REAL E S T A T E ........................................................

200, 000.00

O V E R D R A F T S .................................................................

109.85

OTHER A S S E T S .................................................................

40, 194.48

O ver
200 Y ea rs o f C om m ercia l B a n k in g

$ 116, 375, 970.33

HEAD OFFICE—Edinburgh

LIABILITIES

General Manager
William Whyte
Total number o f offices, 258
CHIEF FOBEIGN D E P A B T M E N T

C A P I T A L .............................................................................. $

6, 000, 000.00

3 Bishopsgate, London, England

Capital (fully paid)______________ £3,780,192
Reserve fund----------------------------- £4,125,965
Deposits------------------------------------ £69,921,933

s u r p l u s

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

6 ,0 0 0 ,0 0 0 .0 0

5, 046, 114.75

DIVIDENDS DECLARED BUT NOT YET PAYABLE

.

90, 000.00

RESERVES FOR TAXES AND OTHER EXPENSES

Associated Bank,

.

.

376, 417.39

UNDIVIDED PROFITS AND RESERVES

.

.

Williams Deacon’s Bank, Ltd.
OTHER L I A B I L I T I E S ......................................................

19, 926.78

D E P O S I T S ............................................................................

98, 843, 511.41
$ 116, 375, 970.33

NATIONAL BANK
of EGYPT

DIRECTORS

Head Office.............................. Cairo
FULLY PAID CAPITAL . £3,000,000
RESERVE FUND. . . . £3,000,000

ARTHUR E. B R A U N ....................................................................................... President
GEORGE H. CLAPP

.

.

.

.

Director, Aluminum Com pany of Am erica

GEORGE L. C R A I G ..................................President, Chartiers O il Com pany
LON DON

A G E N C Y

6 and 7, King William Street, E. C. 4
B r a n c h e s i n a l l th e
-p r in c ip a l T o w n s i n

EGYPT and the SUDAN

MAURICE F A L K ........................................ Director, National Steel Corporation
WILLIAM C. FOWNES, JR...........................................................................Industrialist
JOHN G . F R A Z E R ...........................Member, Reed, Smith, Shaw & M cClay
CHARLES W . FRIEND

.

.

President, Brownsville Coal & Coke Com pany

SIDNEY S. L I G G E T T .............................................................................................Banker
WILLIAM L. MONRO

.

.

President, Am erican W indow Glass Com pany

FRANK R. P H I L L I P S ..................................President, Philadelphia Com pany
F. BRIAN REUTER . Vice-President, The Union Trust Com pany of Pittsburgh

NATIONAL BANK OF NEW ZEALAND, Ltd.
Established 1872
Chief Office in New Zealand: Wellington
P. R. M. H anna, General Manager

Head Office: 8 Moorgate, London, E. C. 2. Eng.
Subscribed C apital__________ £6,000,000
Paid-up C apital______________ £2.000,000
Reserve F u n d ______ _________ £1.000.000
Currency Reserve..............
£500,000
The Bank conducts every description o f banking
business connected with N ew Zealand.

Correspondents throughout the World
London Manager, A. O. Norwood




ANDREW W . R O B E R T S O N ........................................................................Chairman,
W estinghouse Electric & Manufacturing Com pany
WILLIAM WALKER
RAYMOND WILLEY .

.

.

.

Director, Reliance

Life Insurance Com pany

. President, Harbison-W alker Refractories Company

BEHIND THE ENDURING IN ST ITU T IO N ■ SU CCESSFU L CU STO M ERS
M em ber Federal Deposit Insurance Corporation

2844 IB

ONE HUNDRED—
The

Commercial & Financial Chronicle— YE A R S

OLD

Nov. 4, 1939

THE CANADIAN BANK
O F COMMERCE
HEAD OFFICE:
TORONTO
Established 1867

Paid-Up Capital____ $30,000,000
Reserve . . . ________ 20,000,000
T his Bank is in close touch with
the commercial and financial life
of Canada and is well equipped to
serve corporations, firms and in­
dividuals interested in Canadian
business.
Branches in every important
city and town in Canada and New­
foundland, also in Portland, Oregon;
San Francisco; Seattle; Los A n­
gles; London, England; H avana;
Kingston, Jamaica; S t. Pierre in
St. Pierre et Miquelon; Bridgetown,
Barbados, and Port of Spain,
Trindad.

1939

1839

One Hundred Years of Banking

Marine National Exchange Bank

NEW YORK AGENCY
Exchange PI. & Hanover St.

F oreig n

MILWAUKEE, WISCONSIN
Established 1866

H. Hentz & Co.

5

(omni&rcelrast(om
pany
Established 1865

M em b ers

New York Stock Exchange
New York Curb Exchange
New York Cotton Exchange
Chicago
Board
of
Trade
Winnipeg
Grain
Exchange
New Orleans Cotton Exchange
A n d o th er E x ch a n g es

KANSAS CITY, MISSOURI
Member Federal Reserve System

Statement of Condition at Close of Business October 2 , 1939
RESOURCES
Cash and Due from Banks------------------------------------ $91,808,512.48
U. S. Government Obligations, Direct and Fully
Guaranteed____________________________________
26,124,676.49

117,933,188.97

State, Municipal and Federal Land Bank B o n d s.. 27,557,375.10
Stock o f Federal Reserve Bank----------------------------252,000.00
35.582,191.91
Other Bonds and Securities_______________________
7.772,816.81
38,483.407.33
Loans and Discounts-----------------------------------------------------------------2,673,026.03
Bank Premises and Other Real Estate Owned------------------------------19,509.50
Customers’ Liability Account Letters o f Credit----------------------------301,866.99
Accrued Interest Receivable--------------------------------------------------------1,967.85
Overdrafts_ ____________________________________________________
_
1,600.82
Other Resources_________________________________________________ .
Total Resources_____________________________________________ $194,996,759.40

D o
ep sits:

LIAB
ILITIES

U. S. Government Deposits____________________ $ 1,834,175.00
Other Deposits_________________________________ 181,752,642.03

Capital______________________________
Surplus___________________________________________
Undivided Profits________________________________

183,586,817.03

6,000,000.00
2,400,000.00
2,971,893.22

11.371,893.22

Liability Account Letters o f Credit---------------------------------------------Accrued Interest, Taxes and Expense-------------------------------------------

19,509.50
18,539.65

Total Liabilities______________________________________________ $194.996,759.40
The above statement is correct. E . P . W H E A T, Cashier
M E M B E R F E D E R A L D E P O S IT IN S U R A N C E C O R P O R A T I O N

“ arms, munitions and implements of war.” All
reports agree that airplanes will be one of the
eagerly sought export articles, and speculation in
the related issues increased, with low-priced stocks
in best demand. Even some of the airplane issues
dipped when Congress acted on the neutrality laws,
which suggests that the market experienced some­
thing like a general psychological reaction from the
overdone expectations of a war boom.
In the listed bond market only small variations
were noted. United States Treasury issues held
their ground until Secretary Morgenthau indicated
that an immense financing program impends, and
small recessions then developed, apparently on a
precautionary basis. Best rated corporate loans
were hardly changed all week. Speculative railroad




N. Y. Cotton Exchange Bldg.
NEW YORK
BOSTON
CHICAGO
DALLAS
D E T R O IT
PITTSBURGH
A M ST E R D A M
GENEVA
LONDON
PARIS
ROTTERDAM
N ICE
M ON TE CARLO
CANNES

Hong Kong & Shanghai
BANKING CORPORATION

Incorporated in the Colony o f Hongkong.'WThe
liability of members is limited to the extent and
in manner prescribed by Ordinance N o. 6 o f 1929
of the Colony.
Authorized Capital (Hongkong Currency )H$50,000,000
Paid-up Capital (Hongkong Currency)— H$20,000.000
£6,500,000
Reserve Fund In Sterling_______________
Reserve Fund In Silver (Hongkong Cur2?
rency)_______________________________ H$10,000,000
Reserve Liability of Proprietors (Hong*5
kong Currency)_____________________ _H$20,000,000

A. G. KELLOGG, Agent
72 WALL STREET, NEW YORK

bonds were dampened by the decision, Monday, of
the Central RR. of New Jersey to seek reorganiza­
tion in Federal courts. Other groups were dull. In
the foreign dollar bond department some sizable
fluctuations appeared, with the main trend upward
in most groups. Latin American default issues
came into demand on indications that Administra­
tion short-cuts are being sought toward lending the
discredited debtors official money. Even this move­
ment was modest, however, for it is well established
that Congress does not look with favor on such ex­
pedients. The commodity markets remained quiet
and irregular, for they also are affected by the same
considerations motivating stock trading. Foreign
exchange dealings were modest, with the various
official controls holding levels virtually unchanged.

ONE HUNDRED
—The Commercial & Financial Chronicle YE A R S OLD

Volume 149

—

2845

Leading Out-of-Town
Investment Bankers & Brokers
ST. L OUIS

8 4 YEA R S
5

of

tik & Co.
SAINT LO U IS
509

ouve st

B A N K IN G E X P E R IE N C E

Members St. Louis Stock Exchange

Adapted to the Needs o f Today
M ILW A U KEE

MISSISSIPPI/ 7
\V A L L E Y /
TRUST/

WISCONSIN
CORPORATION SECURITIES
T e le ty p e — M ilw a u k e e

92

ED G A R , R IC K E R & CO.

* CO^

207 East Michigan St.,
Milwaukee, Wis.

\v

v

ST. LOUIS

BIRM INGH AM

MARX & CO.
BIRMI NOHAM, ALABAMA

OUTHERN MUNICIPALS and
CORPORATION BONDS
HARTFORD

T h i s bank and its antecedents have
always been subscribers to the Commer­

Specialists in C onnecticut
Securities

PUTNAM & CO.
M em b ers N ew

Y o r k S to ck E x c h a n g e

6 CENTRAL ROW, HARTFORD
Tel.5-0151 A. T. T . Teletype— Hartford 564

D ETR O IT

LISTED AND UNLISTED
SECURITIES

cial and Financial Chronicle since

a fact which reflects our estimate of its
value.

O L D KENT
BANK
GRAND

Charles A. Parcel Is & Co.

1853,

Member

RAPIDS MICHIGAN

Federal

Deposit

Insurance

Corporation

Members of Detroit Stock Exchange
PENOBSCOT BUILDING, DETROIT, MICH*

On the New York Stock Exchange 54 stocks
touched new high levels for the year while no change
occurred on the low side. On the New York Curb
Exchange 54 stocks touched new high levels and 10
stocks touched new low levels. Call loans on the New
York Stock Exchange remained unchanged at 1%.
On the New York Stock Exchange the sales at the
half-day session on Saturday last were 481.670 shares;
on Monday, 639,170 shares; on Tuesday, 1,011,582
shares; on Wednesday, 794,370 shares; on Thursday,
845,710 shares, and on Friday, 1,815,860 shares.
On the New York Curb Exchange the sales on
Saturday last were 87,020 shares; on Monday, 154,275
shares; on Tuesday, 183,175 shares; on Wednesday,
142,375 shares; on Thursday, 141,565 shares, and on
Friday, 287,620 shares.



Incentive lacking, trading volume on the Stock
Exchange on Saturday of last week dwindled and
share prices reflected negative changes for the session.
Opening fractionally higher Curtiss-Wright assumed
the leadership with United States Steel following in
the vanguard. Soon thereafter values succumbed to
the market’s dullness and slipped in a gradual sort of
way to lower ground. Some evidence of returning
strength came to trading with the passing of the first
hour and a half, but its influence on the final result
was negligible.
Quiet and irregular movements
dogged the market’s footsteps on Monday, the trend
differing in no marked degree from that of the previ­
ous session. The leadership again fell to the lot of
Curtiss-Wright and it closed one-half point higher,
establishing at the same time a new high record for

2846

ONE HUNDRED The
—

Commercial & Financial Chronicle— YE A R S

Virgil Jordan, President, National Indus­
trial Conference Board, Inc., Extends
Congratulations to the Chronicle
It is a privilege to be able
to congratulate the Chron­
icle on its first hundredth
birthday. To anyone with
a sense of the past, the
Chronicle is much more than
a publication. It is an in­
stitution that symbolizes the
strength and endurance of
the spirit and tradition of
American enterprise. Its cen­
tennial is more than an anni­
versary. To us of this gen­
eration it is an inspiration;
and we salute it with pro­
found respect and admira­
tion for the immense accom­
plishment of its labor, the
fine courage of its convic­
tions, and with hope and
faith in its future.

the year. The divergent views held by prominent
students of both the European political situation and
domestic business problems acted in large measure to
retard the forward movement of prices and Tuesday’s
session proved to be no exception to the rule. Starting
firm aircraft shares pointed moderately higher the
first hour. An abrupt selling wave ushered in the
second hour’s operations and values were reduced
from one to two and one-half points in fairly broad
trading. Steel issues suffered the most with minor
losses sustained among the motor and chemical shares.
After mid-day activity was fairly well spent and the
list just marked time to the closing, when some display
of firmness came upon the market. The abundance of
good news on the domestic business front failed to
arouse traders and the buying public from their state
of indecision and the market on Wednesday differed
in no appreciable manner from the day previous.
The European war continued to be the unknown
factor in the present business situation and buyers
were reluctant to make any extensive commitments

OLD

Nov. 4, 1939

in view of this fact. Firmness featured aviation
shares, while chemical stocks improved on the day.
Motor and steel issues, however, sold irregularly
lower. Definite signs of strength were manifest the
present week in aviation shares and Thursday’s deal­
ings helped to confirm this contention. Calmness
pervaded initial trading, followed by an easier ten­
dency in the first hour. Subsequent recovery of a sort
set in by noon and equities held to a dull but steady
course until the final period when aircraft shares came
to the aid of the rest of the list. Sales turnover on
Friday more than doubled Thursday’s volume, in­
spired in the main by the favor with which repeal of
the arms embargo provisions of the neutrality law
was received in the House. Gains ranged from frac­
tions to two points. In afternoon trading brokers
discounted in good measure the benefits to accrue to
business and industry should repeal of the arms
embargo become a reality and once again the market
returned to its accustomed state of dulness and
irregularity.
As compared with the closing on Friday of last
week, equities, with the exception of the aircraft and
a few scattered issues closed lower yesterday. Gen­
eral Electric closed yesterday at 4134 against 4134 on
Friday of last week; Consolidated Edison C o. of
N . Y . at 3134 against 3134; Columbia Gas & Electric
at 734 against 7^4; Public Service of N . J. at 3 9 J4
against 4034; International Harvester at 63 against
6434; Sears, Roebuck & Co. at 8534 against 84;
Montgomery W ard & Co. at 5434 against 5634;
Woolworth at 4134 against 4134, and American Tel.
& Tel. at 16834 against 16734Western Union closed yesterday at 2934 against 33
on Friday of last week; Allied Chemical & D ye at
176 against 182; E . I. du Pont de Nemours at 18034
against 182; National Cash Register at 16 against 17;
National Dairy Products at 1634 against 1634;
National Biscuit at 2334 against 2334; Texas
Gulf Sulphur at 3534 against 3634; Continental
Can at 4434 against 4534; Eastman Kodak at 16334

The Dry Diggin’s for Gold in California
The “dry diggings” of Weaver’s Creek being a fair specimen of dry diggings in all parts of the mining
region, a description of them will give the reader a general idea of the various diggings of the same kind
in California. They are called “dry” in contra-distinction to the “wet” diggings, or those lying directly
on the banks of streams, and where all the gold is procured by washing. The stream courses between
lofty tree-clad hills, broken on both sides of the river into little ravines or gorges. In these ravines most
of the gold is found. The loose stones and top earth being thrown off, the gravelly clay that follows it
is usually laid aside for washing, and the digging continued until the bottom rock of the ravine is reached,
commonly at a depth of from one to six feet. The surface of this rock is carefully cleared off, and usually
found to contain little crevices and holes, the latter in miner’s parlance called “pockets,” and in which
the gold is found concealed, sparkling like the treasures in the cave of Monte Cristo. A careful examination
of the rock being made, and every little crevice and pocket being searched with a sharp-pointed knife,
gold in greater or less quantities invariably makes its appearance. I shall never forget the delight with
which I first struck and worked out a crevice. It was the second day after our installation in our little
log hut; the first having been employed in what is called “ prospecting,” or searching for the most favorable
place at which to commence operations. I had slung pick, shovel, and bar upon my shoulder, and trudged
merrily away to a ravine about a mile from our house. Pick, shovel, and bar did their duty, and I soon
had a large rock in view. Getting down into the excavation I had made, and seating myself upon the
rock, I commenced a careful search for a crevice, and at last found one extending longitudinally along
the rock. It appeared to be filled with a hard, bluish clay and gravel, which I took out with my knife,
and there at the bottom, strewn along the whole length of the rock, was bright, yellow gold, in little pieces
about the size and shape of a grain of barley. Eurkea ! Oh how my heart beat! I sat still and looked at
it some minutes before I touched it, greedily drinking in the pleasure of gazing upon gold that was in
my very grasp, and feeling a sort of independent bravado in allowing it to remain there. When my eyes
were sufficiently feasted, I scooped it out with the point of my knife and an iron spoon, and placing it
in my pan, ran home with it very much delighted. I weighed it, and found that my first day’s labor in
the mines had made me thirty-one dollars richer than I was in the morning.— Buffum.
HUNT’S MERCHANTS’ MAGAZINE— December, 1850




Volume

149

ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD
—

BANK OF MONTREAL
Established l8l7

The First National Bank and Trust Company
o f New Haven

C a p i t a l ............................. $36,000,000
Rest and Undivided P roftc
$40,183,254
Total Assets in Excess o f $850,000,000
P resident
H . R. Drummond, Esq.
V ice -P residents
M aj.-Gen. The Hon. S. C. Mewburn, C .M .G .
W . A . Bog, Esq.
G eneral M anagers
Jackson Dodds — G . W . Spinney
■A

Branches and Agencies
In C anada and N ewfoundland —
More than 500 Branches.
In Lo n d o n : 47 Threadneedle St., E.C. 2 ;
9 Waterloo Place, S .W . 1.
In the U nited States— New York, 64 W all S t.;
Chicago: 27 South La Salle St.;
San Francisco: Bank of Montreal
(San Francisco), 333 California
Street.

2847

—

42 C H U R C H S T R E E T , N E W H A V E N
C O N N E C T IC U T

Statement of Condition at the Close of Business
September 30, 1939
R E S O U R C E S
C a s h a n d D u e f r o m B a n k s ............................................ $

7 , 7 0 9 ,5 2 7 .6 7

U n ite d S ta te s G o v e r n m e n t S e c u r itie s

1 1 ,2 7 3 ,2 8 7 .5 0

.

.

.

O t h e r B o n d s a n d S e c u r i t i e s ............................................

1 ,1 8 6 ,3 8 4 .8 5

L o a n s a n d D i s c o u n t s ...........................................................

1 2 ,3 8 5 ,3 1 5 . 6 7

B a n k in g

H ou se

$ 5 0 4 ,2 6 5 .9 3 ;

F u rn itu re

and

F i x t u r e s $ 2 9 ,6 6 7 .7 1

5 3 3 ,9 3 3 .6 4

O t h e r R e a l E s t a t e ..................................................................

1 0 9 ,8 7 7 .8 7

A c c r u e d I n t e r e s t R e c e i v a b l e .....................................

5 5 ,4 7 9 .3 4
$ 3 3 ,2 5 3 ,8 0 6 .5 4

L I A B I L I T I E S

NATIONAL BANK OF INDIA, LIMITED

S u r p l u s ..............................................................................

Bankers to the Government in Kenya Colony
and Uganda

U n d i v i d e d P r o f i t s .................................................

2 2 2 ,2 3 6 .5 2

R e s e r v e f o r T a x e s , I n t e r e s t , e t c ....................

8 0 6 ,7 0 8 .0 2

Head Office: 26, Bishopsgate, London, E. C.
Branches in India, Burma, Ceylon, Kenya
Colony and Aden and Zanzibar
Subscribed Capital________ £4,000,000
Paid-Up Capital___________ £2,000,000
Reserve Fund______________ £2,200,000
The Bank conducts every description o f banking
and exchange business
Trusteeships and Executorships also
undertaken

C a p i t a l ............................................................................................... $ 2 ,1 8 0 ,0 0 0 .0 0

R e serv e fo r F e d e ra l D e p o s it I n s u r a n c e F u n d
D e p o s i t s o f O t h e r B a n k s ..................................
U n ite d S ta t e s G o v e r n m e n t D e p o s its

.

4 4 ,7 9 3 .1 5

1 ,6 7 0 ,0 1 0 .6 6
.

.

.

7 6 5 ,0 3 0 .9 4

2 6 ,6 8 3 ,0 2 7 . 2 5
$ 3 3 , 2 5 3 ,8 0 6 .5 4

MEMBER FEDERAL RESERVE SYSTEM
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

at 3134 against 3234; New York Central at 21 )4
against 2 2 )4 ; Union Pacific at 102 against 10234;
Southern Pacific at 1734 against 17)4; Southern
Railway at 20 )4 against 2 0 )4 , and Northern Pacific
at 1134 against 11)4The steel stocks with one exception show fractional
recessions the present week.
United States Steel
closed yesterday at 7634 against 76 on Friday of last
week; Crucible Steel at 4834 against 49; Bethlehem
Steel at 90 )4 against 9134, and Youngstown Sheet &
Tube at 5334 against 53)4In the motor group, Auburn Auto closed yesterday
at 334 against 2 )4 bid on Friday of last week; General
Motors at 5424 against 5 5 )4 ; Chrysler at 8 9 )4 against
9134; Packard at 3 )4 against 4 , and Hupp Motors

134against 1 )4 .

Among the oil stocks, Standard Oil of N . J. closed
yesterday at 48)4 against 4 7 )4 on Friday of last
week; Shell Union Oil at 14)4 against 1 4 )4 , and
Atlantic Refining at 24 against 24)4Among the copper stocks, Anaconda Copper closed
yesterday at 3 4 )4 against 3 3 )4 on Friday of last




.

A l l O t h e r D e p o s i t s .................................................

against 161; Standard Brands at 534 against 6; W estinghouse Elec. & M fg . at 114)4 against 115)4; Lorillard at 2 2 )4 against 2334; Canada D ry at 1534
against 1534; Schenley Distillers at 1434 against
1 4 % , and National Distillers at 2434 against 24 )4 In the rubber group, Goodyear Tire & Rubber
closed yesterday at 2734 against 2834 on Friday of
last week; B . F. Goodrich at 2134 against 2 2 )4 > and
United States Rubber at 4134 against 4334Railroad share prices ruled lower this week. Penn­
sylvania R R . closed yesterday at 25 against 2634
on Friday of last week; Atchison Topeka & Santa Fe

at

8 8 2 ,0 0 0 .0 0

week; American Smelting & Refining at 54 )4 against
55, and Phelps Dodge at 4234 against 42 J4In the aviation group, Curtiss-Wright closed yes­
terday at 11)4 against 8 )4 on Friday of last week and
Douglas Aircraft at 8 6 )4 against 84)4Trade and industrial reports showed a general
maintenance of the high rate of activity reached late
in October. Steel operations for the week ending to­
day were estimated by American Iron & Steel Insti­
tute at 9 1 .0 % of capacity, against 9 0 .2 % last week,
8 7 .5 % a month ago, and 5 6 .8 % at this time last year.
Production of electric power for the week to Oct. 28
was reported by Edison Electric Institute at 2 ,5 3 8 ,779,000 kwh., against 2,4 9 3 ,9 9 3 ,0 0 0 in the preceding
week and 2,226,038,000 in the similar week of 1938.
Carloadings of revenue freight for the week to Oct. 28
were reported by the Association of American Rail­
roads at 834,096 cars, a decline from the previous
week of 27,102 cars, but an increase of 125,506 cars
over the corresponding week of last year.
As indicating the course of the commodity markets,
the December option for wheat in Chicago closed yes­
terday at 8734c. against 8534c., the close on Friday of
last week. December corn at Chicago closed yesterday
at 5034 against 4 9 )4 C-, the close on Friday of last
week. December oats at Chicago closed yesterday
at 3634 against 3534c -, the close on Friday of last
week.
The spot price for cotton here in New York closed
yesterday at 9 .0 2 c ., against 9 .3 9 c ., the close on Friday
of last week. The spot price for rubber yesterday
was 2 0 .40c., against 2 0 .25c., the close on Friday of
last week.
Domestic copper closed yesterday at
1234c., the close on Friday of last week. In London

ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD

2848

—

—

Nov. 4, 1939

REINSURANCE
- IN AN ADMITTED
AMERICAN COMPANY

5 4 Years o f Service
The Preferred Accident has throughout its
54-year career built up and maintained a
progressive staff of agents in all parts of the
country with whom its relationship has been

-A L W A Y S A N A V A IL A B L E A S S E T

THE

E XCESS

IN S U R A N C E C O M P A N Y

friendly and mutually profitable.
The cornerstone of the Preferred's success
has been gradual, steady growth, the empha­

O F A M E R IC A
A N ew J ersey C orporation
9 9 Joh n S tr e e t, N e w Y o r k C it y

sis being on careful underwriting in both
field and home office, and a policy of claim
settlements

that builds

good

will am ong
M ANAGEM ENT

policyholders.

S T R E A M L IN IN G

That agents appreciate this program in
its broad aspects is indicated b y their long
time representation of the Preferred.

Autom obile

Accident

Plate Glass

Burglary
Liability

T he Preferred A ccident
Insurance C om pany
of New York

I I I

Streamline your O p e r a t i n g
M e t h o d s , and you’ll stimulate
your O p e r a t i n g P r o f i t s !
Experienced Industrial M a n ­
agement Counsel, for over 10
years actively engaged in cost
reduction and simplification of
methods, in plant, production,
labor, administrative and sales
problems. N ow available. W ill­
ing to accept temporary employ­
ment to prove worth. B ox S 10,
Financial Chronicle, 25 Spruoe
S t ., N ew Y ork C ity .

The “Expandit” Binder
is adjustable to the thickness o f
the number o f issues it contains
In sizes up to 13x8M inches

80 MAIDEN LANE, N E W YORK

Price

$ 2 .0 0 each
Plus postage

Edwin B. Ackerman, President
Prices fo r larger sizes
on application

THE “EXPANDIT” BINDER
2 5 S pru ce S t .,

the price of bar silver closed yesterday at 23 1-16
pence per ounce against 2 3 ^ pence per ounce the
close on Friday of last week, and spot silver in New
Y ork closed yesterday at 3 4 ^ c . , against 34J^c., the
close on Friday of last week.
In the matter of foreign exchanges, cable transfers
on London closed yesterday at S3.99J4 against
$3.99J^ the close on Friday of last week, and cable
transfers on Paris closed yesterday at 2.263^c. against
2 .2 6 M c* the close on Friday of last week.
E u ro p ea n S to c k M arkets
A R R O W price movements were noted this week

N

on stock exchanges in the leading European
financial centers, with dealings modest in every
session. Uncertainty prevailed everywhere as to
the dull and dragging war that is being fought on
the W estern Front. The puzzled traders and in­




N e w Y o r k C it y

vestors in the London, Paris and Berlin markets
awaited developments of the conflict, and especially
the announcements of government war loans, which
cannot be delayed much longer. On the London
Stock Exchange gilt-edged issues lost their good
tone of the several preceding weeks, in expectation
of an early British Treasury flotation, but the losses
were small and prices held above the minimum levels
established late last August.
British industrial
stocks moved irregularly in quiet trading. Some
inquiry developed for Japanese and Chinese bonds,
owing to rumors that the undeclared war between
those countries may soon be settled. On the Paris
Bourse a generally firm undertone prevailed, partly
because the month-end settlement again was effected
easily with money at % % , and partly because the
Russian Soviet exposition of foreign policy im-

Volume 149
P A U L IS T A

ONE HUNDRED—The Commercial & Financial Chronicle—YEARS OLD

R A IL W A Y

2849

C O M P AN'S

(C o m p a n h ia P a u lis t a d e E s t r a d a s d e F e r r o )
F ir s t a n d R e f u n d in g M o r t g a g e
7 % S in k in g F u n d G o ld B o n d s

The Undersigned have received funds
for the payment o f the March 15, 1938
interest on the above Bonds.
The Undersigned will, on and after
November 6, 1939, be prepared to make
payment of the interest to the holders of
the March 15, 1938 coupons, upon presen­
tation and surrender o f such coupons at
the office of the Undersigned.
LADENBURG, THALMANN & CO.
Fiscal Agents,

25 Broad Street, New York

D ividends

F O U N D E D 1851

M unicipal
C o rpo ra te S ecurities
AN D

THE ATLANTIC REFINING CO.
COMMON
DIVIDEND

NUMBER
137

A t a meeting of the Board of Directors
held October 30, 1939, a dividend of
twenty-five cents per share was declared
on the common stock of the Company,
payable December 15, 1939, to stock­
holders of record at the close of busi­
ness November 21, 1939. Checks will
be mailed.
W M . O ’C O N N O R
October 30, 1939

E stabrook & Co.
MEMBERS

* NEW YORK STOCK EXCHANGE

40 W A L L S T R E E T
NEW YORK

EATON MANUFACTURING COMPANY
CLEVELAND, OHIO
Dividend No. 58
The Board o f Directors o f Eaton
Manufacturing Company has de­
clared a dividend o f Fifty Cents
(50c.) per share on the outstanding
common stock o f the company,
payable on November 25th, 1939
to shareholders o f record at the
close o f business on November 8th,
1939.
H. C. STUESSY, Secretary.
October 27th, 1939.
NORTHERN PIPE LINE COMPANY
26 Broadway,
New York, October 19, 1939.
A''dividend o f Fifteen (15) Cents per share has
been declared on the Capital Stock ($10.00 par
value) o f this Company, payable December 1,
1939 to stockholders o f record at the close of
business November 17, 1939.
J. R . FAST, Secretary.
THE BUCKEYE PIPE LINE COMPANY
26 Broadway,
New York, November 3, 1939.
A dividend of One ($1.00) Dollar per share has
been declared on the Capital Stock o f this Com­
pany, payable December 15, 1939 to stockholders
o f record at the close o f business November 24,
1939.
J. R. FAST, Secretary.

( in c o r p o r a t e d !

llrC?*7

Providence Washington
Insurance Go.
P r o v id e n c e , R h o d e I s la n d

Anchor Insurance Go.
Incorporated 1928

P r o v id e n c e , R h o d e I s la n d

Owned and Operated by the
P r o v id e n c e

F IR E ,

W a s h in g to n

A U T O M O B IL E ,

E x p e r ie n c e

pressed France favorably. Dealings were restricted,
however, for the Bourse enjoyed the All Saints holi­
day, Wednesday, the mid-week suspension tending
to lessen trading in the four business sessions of the
week. The Berlin Boerse was dull throughout, but
price levels were well maintained.
L a tin -A m e rica n L oan s

OMETHING like an Administration “ drive” ap­
pears to be in progress toward the dubious end
of Congressional authority to extend huge loans of
United States Treasury money to Latin-American
countries, as a means of stimulating trade with our
“ Good Neighbors” to the south. There is little rea­
son to believe that Congress will agree to such pro­
posals, for it must be remembered that the request




Ha r t f o r d
15 S T A T E S T R E E T
SPRINGFIELD
PROVIDENCE
BOSTO N

Secretory

ELECTRIC BOAT COMPANY
33 PINE STREET
NEW YORK, N. Y.
At a meeting o f the Board o f Directors of
Electric Boat Company, held October 24, 1939,
a dividend o f 30c. per share was declared, payable
on December 8, 1939, to stockholders o f record
on the books o f the Company at the close o f busi­
ness November 22, 1939.
Transfer books will remain open.
Checks will be mailed.
H E N R Y R. CARSE, President.
N .B . Please notify Bankers Trust Company,
16 Wall St., New York, N . Y ., o f any change of
address.

S

* BOSTON STOCK EXCHANGE

—

M A R IN E

In su ra n ce

AND

R e p u ta tio n

Co.

A L L IE D
—

L IN E S
S e r v ic e

for authority to make large loans through the
Export-Import Bank was the first item to be elimi­
nated when Mr. Roosevelt’s ill-fated $3,600,000,000
spending-lending plan came before Congress. It
would seem, however, that the President and his
New Deal advisers are not to be deterred by that
emphatic indication of popular sentiment. The
many defaults by Latin-American governments,
which clearly are the first and foremost obstacle to
fresh loans of taxpayers’ funds, were discussed in
a new and astounding manner over the last week­
end. The endeavor, both at the White House and in
other Administration circles, was to place the blame
for the defaults elsewhere than on the shoulders of
the debtors, where it so emphatically belongs. This

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD

2850

—

—

Nov. 4, 1939

United States Guarantee Company
Organized 1890

90x«John Street

FIDELITY

SURETY

HENDON CHUBB
Chairman of Executive Committee

political expedient hardly would merit serious con­
sideration, were it not for the obvious aim of send­
ing good “ other people’s money” after the bad loans
of the 1920’s.
President Roosevelt opened the campaign for
authority to extend huge loans in a press conference,
late last week. In answer to a question about the
existing debts, he is said to have replied that he
favored scaling them down, and he pointed out that
the matter goes back to 1933, when the Administra­

The Coal Trade for 1838
The following is the quantity of coal
shipped from the different regions in 1837
and 1838:

1837
S c h u y lk ill________________________
523,152
L e h i g h ____________________________
192,595
115,387
L a c k a w a n n a _____________________
B eaver M e a d o w s ------------------------33,617
_________
H a z le t o n ___________________
L a u rel H ill_________________
_________

1838
431,719
152,699
78,207
44,966
14,221
2 -001

864,751
723,813
D ecrea se in 1838-----------------------

140,938

723,813

to n s

The consumption of coal, as near as can
be ascertained, was, in:
A nnual
In cre a se
1831
_________________
1832
___________ ____
1833
1834
________________
1835
__ __________
1836
_
_
1837________________________

177,000
329,000
413,000
456,000
556,000
682,090
664,000

150,000
84,000
41,000
100,000
126,000
D ecrea se

HUNT’ S MERCHANTS’ MAGAZINE,
July, 1839




New York City

CASUALTY
GEORGE H. REANEY
President

tion gave its blessing to the Foreign Bondholders
Protective Council, Inc. “He added,” a Washington
dispatch to the New York “ Times” said, “ that the
members of the Council had been working alone and
he did not think they had got very far. He said he
was rather disappointed with their operations.”
This was followed by reports on Monday that the
Administration is preparing a new formula for the
readjustment of Latin-American debts, as a basis
for the extension of credits to the Republics. Offi­
cials engaged in this task were said to be Sumner
Welles, Under Secretary of State; Secretary of the
Treasury Henry IMorgenthau, and Jesse H. Jones,
Federal Loan Administrator. The plan is said to
involve substitution of direct Government negotia­
tion for the semi-official efforts at debt settlements
made since 1933 by the Foreign Bondholders Pro­
tective Council. It will cover, according to the ad­
vance intimations, not only readjustment of nearly
$1,000,000,000 of dollar bonds held in the United
States, but also “ any internal financial arrangement
which a Latin-American Government might pro­
pose.”
In order to bolster this breath-taking plan, Sec­
retary Morgenthau added a criticism of his own to
that made previously by the President of the For­
eign Bondholders Protective Council. Another curi­
ous and highly undiplomatic incident was a further
criticism of the Council by the retiring Colombian
Ambassador, Senor Don Miguel Lopez Pumarejo,
after he emerged from a White House conference,
Monday. This incident has gained little notice, not­
withstanding the sheer effrontery of an attack by
a foreign Ambassador on a semi-official American

Volume 149

ONE HUNDRED T h e
—

Com m ercial & Financial C hronicle —

agency, simply because that agency protected United
States’ interests in a fitting and determined man­
ner. But such aspects of the problem are of lesser
importance than the general questions involved. It
is needless to defend the record of the Council, for
all that reasonably could be done was accomplished,
as the annual reports of the organization amply
attest. The Council proved rather more effective as
a debt adjustment agency than the British, French
or other European agencies, in the same period. It
has been pointed out, moreover, that the criticism
from Administration circles comes with poor grace,
indeed, in view of the inability of Mr. Roosevelt and
his associates to achieve adjustments of the war
debts.
The fundamental question in all this concerns the
obvious aim of the Administration to engage in
what Mr. Roosevelt himself once inaccurately de­
scribed as “ foreign boondoggling,” when he referred
to American investments in foreign countries. If
the current endeavors of the New Deal leaders prove
successful, the United States will apparently wit­
ness some genuine “ foreign boondoggling.” Loans
by one Government to another inevitably smack of
political considerations, and there is no blacker
chapter in financial history than the one dealing
with inter-governmental debts. The war debts are
illustrative, for even ordinarily solvent States, such
as Britain, France and Belgium, refuse to pay on
inter-government debt account, although they care­
fully observed their engagements on privately-held
external obligations. The record of loans by large
European countries to the smaller States of Eastern
Europe is quite as black, the reservation being neces­




Y E A R S OLD

2851

sary in this case that the loans usually were not
expected to be repaid. All such considerations are
highly important, however, in view of the desire of
Mr. Roosevelt and his associates to engage in a lib­
eral distribution of United States Treasury funds

W. Gibson Carey, Jr., President of the
Chamber of Commerce of the United
States, Sends Message of Congratula­
tions to the Chronicle on its 100th
Anniversary
The 100th Anniversary of “ The Chronicle” is
surely a fitting time for its friends to make men­
tion of the remarkable service which has been
rendered to American busi­
ness. I, therefore, send you
my congratulations on your
accomplishments of the past
and my best wishes for the
future.
Here in the Chamber of
Commerce of the United
States, not only your current
copies but your bound vol­
umes for earlier years are
used frequently. In addito this, I have observed
throughout the country that
bankers and other business
men use your publication
regularly and with great con­
fidence.
In closing, I wish to comment on the helpful
editorial policy which you have followed. Your
analysis of important trends has been vigorous
and constructive.

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD

2852

—

—

Nov. 4, 1939

ESTABLISHED 1856

H. HENTZ & CO.
N. Y. Cotton Exchange Bldg.,
Hanover Square, N. Y.
730 Fifth Avenue
New York
Boston
Paris

Chicago
Amsterdam

132 West 31st Street,
New York
Dallas
Rotterdam

Detroit
London

Pittsburgh
Geneva

-Cotton
Stocks—Bonds—
Grain—Sugar—Coffee
Cocoa—Copper—Cottonseed Oil
Rubber—Tin—Silk—Hides
W ool—Lead—Zinc
M em bers
N ew Y o r k S to c k E x ch a n g e
N ew Y o r k C u r b E x ch a n g e
N ew Y o r k C o t t o n E x ch a n g e
N ew O r le a n s C o t t o n E x ch a n g e
N ew Y o r k C o ffe e & S u g a r E x ch a n g e , I n c .
C o m m o d ity E x c h a n g e , I n c .
N ew Y o r k C o c o a E x c h a n g e , I n c .
W o o l A s s o c ia te s o f N ew Y o r k C o t t o n E x ch a n g e , I n c .
N ew Y o r k P r o d u c e E x ch a n g e

C h ic a g o B o a rd o f T r a d e
W in n ip e g G r a in E x ch a n g e
C a n a d ia n C o m m o d ity E x ch a n g e I n c .
B o s t o n S t o c k E x ch a n g e
C h ic a g o S to c k E x ch a n g e
D e t r o it S to c k E x ch a n g e
C h ic a g o M e r ca n tile E x ch a n g e
L iv e r p o o l C o t t o n A s s o c ia t io n , L t d .
A s s o c ia te M em bers o f
U n ite d T e rm in a l S u g a r M a rk e t A s s o c ia tio n
R o tt e r d a m G r a in M a rket

Phototypes—Something New
The style of engraving which we give of Mr. Edmonds is a recent discovery, the work being done by the
phototypic process. Although it may be true that there is really nothing new under the sum, yet by means
of the sun we are continually working out new and wonderful results. Thus, we are indebted to its rays
for this new style of engraving. A matrix, the reverse of the desired plate, is made, and then copper is de­
posited upon that matrix in a galvanic battery. The process by which this is done is the invention of
Leopold Eidlitz, the celebrated architect and designer; and there is now on the corner of Bleecker and Mercer
streets an establishment called the American Phototype Co., where engravings of this kind are made. It
takes three or four days to furnish an ordinary plate. The company have a room from which the light of
day is carefully excluded, and in which a single small jet of gas is burning. Upon a table in this room is a
photographic printing frame, a stout wooden frame with a thick glass in front, and a movable cover back
of it. When the matrix is to be made, the glass is placed towards the table, the negative immediately upon
that, next comes the matrix plate, and the cover fastened down tight with a brass spring. The frame is now
removed from the dark room into the light of the sun and there left for about ten minutes. It is then re­
turned to the dark room, when the frame is opened, the matrix plate taken out, and the desired picture is
found upon it, but otherwise it will be perfectly smooth, and hard to the touch. The next step in the process
is to lay this plate in a flat dish containing a colorless fluid for about half an hour. When again examined,
it is found to be a bas relief. A fluid solution of gold is now poured over it, so as to cover the entire plate.
After the lapse of a minute or two this is poured off, and the plate placed in a dark box where it remains
for nearly an hour. When taken out, it is covered with a film of bright metal, looking, in fact, as if it were
made of solid gold, which, however, on examination will be found to be illusion, and what was gold before
being converted into a thin blue bas relief. The matrix is then hung in a galvanic battery. The next day the
plate is taken out of the battery, the glass removed, and the copper shell backed up with type metal, and then
it is ready for the printer.
In the way above described plates are made from engravings, or where they are desired to be made from
original designs, negatives are taken from pen and ink sketches. Sometimes the artist sketches his design
upon glass plates prepared for the purpose (as was done in the case of the engraving of Mr. Edmonds), the
plates being like white porcelain, and can be worked on with a steel point with great facility.
The beauty and excellence of many of the pictures made by this process, which we have seen, is really
wonderful. Some of them we should pronounce superior (on account of the soft photographic tint they
possess) to the fine steel engravings of which they are copies. The phototype company have, in connection
with and as a part of their establishment, an apartment hung all around with these pictures of their own
production. They have there heads of every size, from the imperial down to the cartes de visite, all exquisite,
the half and middle tints as well preserved as the bolder lights and shadows. There also one sees some fine
copies of the choicest engravings, all rendered with the utmost fidelity to the originals.




HUNT’S MERCHANTS’ MAGAZINE— April, 1863

Volume 149

ONE HUNDRED— The

Commercial & Financial Chronicle —

YEARS OLD

2853

E. A. PIERCE & CO.
MEMBERS OF
N ew York Stock Exchange
New York Curb Exchange
New York Cotton Exchange
New York Coffee & Sugar Exchange, Inc.
New York Produce Exchange
New York Cocoa Exchange, Inc.
New York Mercantile Exchange
Commodity Exchange, Inc.
Boston Stock Exchange
Chicago Board o f Trade
Chicago Stock Exchange

Minneapolis Chamber o f Commerce
New Orleans Stock Exchange
Portland Grain Exchange
Philadelphia Stock Exchange
Salt Lake Stock Exchange
San Francisco Stock Exchange
Seattle Grain Exchange
Toronto Stock Exchange
Winnipeg Grain Exchange

Chicago Mercantile Exchange
Cleveland Stock Exchange
Dallas Cotton Exchange
Detroit Stock Exchange
Houston Cotton Exchange &
Board o f Trade
Liverpool Cotton Association, Ltd.
Memphis Cotton Exchange
New Orleans Cotton Exchange
Milwaukee Grain & Stock Exchange

B rok era ge Service in

STOCKS—BONDS—COMMODITIES
Leased private wires fro m all offices to the principal securities and commodities markets.

M ain Office: 4 0 W a ll Street, N e w Y o r k C ity
Branch Offices in the following cities:
Akron, Ohio
Boston, Mass.
Buffalo, N . Y .
Canton, Ohio
Chicago, 111.
Cleveland, Ohio
Columbia, S. C.
Columbus, Ohio
Denver, Colo.

Detroit, Mich.
Grand Rapids, Mich.
Greensboro, N. C.
Houston, Texas
Lake Charles, La.
Lansing, Mich.
Lebanon, Pa.
Los Angeles, Calif.
Massillon, Ohio

among Latin-American Governments. With a few
honorable exceptions, such as Argentina, those Gov­
ernments have shown themselves to be unworthy of
financial trust and as altogether disdainful of their
financial pledges. They were aided in this attitude
by Mr. Roosevelt himself, who heaped contumely on
foreign dollar bonds by referring to them as those
“ ancient frauds of the 20’s.” But they cannot be
excused or relieved of responsibility for such rea­
sons, any more than such worthy debtors as the
Scandinavian countries would be justified in using
Mr. Roosevelt’s inaccuracies as a basis for default.
American Neutrality

F

Milwaukee, Wis.
Minneapolis, Minn.
M obile, Ala.
Montgomery, Ala.
New Orleans, La.
Philadelphia, Pa.
Portland, Ore.
Raleigh, N. C.
Saginaw, Mich.
San Antonio, Texas.

less will materialize, but a few of the more enthusi­
astic Washington observers even go so far as to
predict that immense orders for clothing, foodstuffs
and other wares will be placed in the United States,
now that the embargo on war supplies has been
repealed. The fact is, of course, that no obstacle
existed in previous weeks of the war to the exporta­
tion of anything but “ arms, munitions and imple­
ments of war,” and it is obvious that little stimu­
lation is to be expected immediately of ordinary
exports to the Allies. Repeal of the embargo pro­
visions occasioned rejoicing in Britain and France,
and intense disappointment in the Reich, such re­
actions being entirely in accord with expectations.
The hazards to genuine American neutrality were

OLLOWING the action of the Senate a week
ago, the House of Representatives voted on
Thursday to return to the ordinary principles of
international law, through repeal of the embargo
provisions of the so-called Neutrality Act on the
exportation of arms, munitions and implements of
war to nations engaged in hostilities. The special
session of 'Congress thus drew to its end, with the
aims of President Roosevelt realized and only minor
adjustments required through conferences between
Senate and House conferees on the wording of the
measure. The debate on the President’s proposals
was long and often bitter, but it transcended party
lines and concerned only the views of all concerned
as to the best means for keeping the United States
out of the European conflict. Whatever the merits
of the debate, the issue now is decided. Already
there is talk of immense orders from Britain and
France for American munitions, airplanes and other
war materials. Some of the rumored orders doubt­




San Francisco, Calif.
Savannah, Ga.
Seattle, Wash.
Shelby, N . C.
Spokane, Wash.
Washington, D . C.
Wilson, N. C .
Winston-Salem, N . C.
York, Pa.

Morgan Davis & Co.
Successors to Gwynne & D ay
E S T A B L IS H E D 1854

Members New York Stock Exchange
Members New York Curb Exchange

15 Broad St., New York.

B R A N C H O F F IC E S:
B ro n x , N . Y . C ity

N e w b u rg h , N . Y .

K in g s to n , N. Y .

1045 So. B o u le v a rd

120 G ra n d St.

48 M ain St.

ONE HUNDRED— The

2854

Commercial & Financial Chronicle— YEARS

OLD

Nov. 4, 1939

ANDERSON, CLAYTON & CO
C otton M erch a n ts
HOUSTON
ATLANTA
NEW ORLEANS
MEMPHIS

BOSTON
PROVIDENCE
NEW BEDFORD
FALL RIVER

LOS ANGELES
MOBILE
SAVANNAH

CHARLOTTE
GASTONIA
GREENVILLE
DALLAS

-and-

Anderson, Clayton & Co. (Egypt)________________________Alexandria
Anderson, Clayton & Co. (India)_________________________Bombay
Anderson, Clayton & Co., S.A. de C.V. (Mexico)__________ Mexico City
Anderson, Clayton & Cia., Ltda. (Brazil)________________ Sao Paulo and Recife
Anderson, Clayton & Co., S.A. (Argentina)______________ Buenos Aires
Anderson, Clayton & Co., S.A. (Peru)___________________ Lima
Algodones, S.A. (Paraguay)_____________________________ Asuncion
Represented Abroad by
B E L G IU M __________________________________________ E d m o n d V e e s a e r t______________________________________________ G h e n t
C A N A D A ____________________
A n d e r s o n , C la y to n & C o ________________________________________ M o n tre a l
C H IN A _________________________________________ A n d e r s o n , C la y to n & C o _______________________________________ S h a n g h a i
E N G L A N D _____________________________________ D . F . P e n n e fa t h e r & C o _______________________________________ L iv e r p o o l
F IN L A N D ____________________________________________ F r itz E r le w e in ___________________________________________T a m m e rfo rs
F R A N C E _______________________________________ A n d e r s o n , C la y to n & C o ________________________________________ L e H a vre
G E R M A N Y ______________________________________ C la s o n , B u rg e r & C o ____________________________________________ B rem en
H O L L A N D ________________________________ A n d e r s o n , C la y to n & C o ., N . V
______________________________ R o tt e r d a m
H U N G A R Y _____ _______ ___________ ______ ____ __________ L a d . A c s _______ _________________________ _______________ B u d a p e s t
I T A L Y ___________________________________________ L am ar F le m in g & C o _______
M ila n
J A P A N ____________________________________A n d e r s o n , C la y to n & C o .’ s A g e n c y ___ ______________________________ ___ O saka
P O L A N D ____________________________________________ G . A . S e b a s tia n _________________________________________________ L o d z
P O R T U G A L __________________________ __________ A . A lg o d o e ir a W . S ta m ___________________________________________ O p o r to
S W E D E N _____________________________________________ F . C o r in & C o ___ _____ ________________________________ G o t h e n b u r g
S W I T Z E R L A N D ...................................................... ................. G y si & C o . ..................................... ....................................................Z u r ic h

Correspondents:

ANDERSON, CLAYTON & FLEMING, New York
M em bers N ew Y o r k C o t t o n E x ch a n g e

D. F. PENNEFATHER & Co., Liverpool
M em bers L iv e r p o o l C o t t o n A s s o c ia tio n

not confined, this week, to the wartime changes in
onr own rules and regulations. The American mer­
chant ship, City of Flint, voyaged southward from
the Russian port of Murmansk, under the control of
a German crew, with one or another of the German
ports as its destination. Flying a Nazi flag, with
her American crew of 40 men still aboard, the vessel
put in at the Norwegian port of Tromsoe Monday,
but immediately resumed the journey along the ter­
ritorial stretch of Norway, accompanied by two
Norwegian warships. Under German interpreta­
tions of international law, the captors of the ship
may be within their rights in taking the vessel on
the high seas and conducting her to neutral ports.
But American views of international law do not
necessarily coincide and a controversy thus is im­
minent, whatever the fate of the Government-owned
ship. The immediate concern of our State Depart­
ment is for the safety of the American crew, and
representations to this effect were made, Tuesday,
both to Britain and to Germany. British authorities
were said to have intimated that this consideration
would guide them and would prevent attempts to
interfere with the voyage of the vessel within Nor­
wegian territorial waters to a German port.
The episode of the City of Flint apparently has
occasioned an altogether unwarranted strain in the
diplomatic relations between the United States and
Soviet Russian Governments. An indignant pro­
test against the “ lack of coperation” by the Soviet
authorities was lodged at Moscow, late last week,
through Ambassador Laurence A. Steinhardt. This
protest related to what were considered in Washing­




ton unconscionable delays in supplying information
and to the Russian refusal to turn the ship over to
the control of its American crew. A report supplied
by Ambassador Steinhardt makes it clear that the
Russian authorities endeavored to take a strictly
neutral stand between the conflicting claims of the
Washington and Berlin Governments, and relieve
themselves of responsibility by sending the craft to
sea precisely in the condition of her arrival at a
Russian port under the control of a German prize
crew. This controversy remains undecided. In the
meantime, however, the Russian Premier and For­
eign Minister, V. M. Molotoff, has expressed great
dissatisfaction with the “ intervention” of the
United States in Russo-Finnish affairs. In a speech
before the Soviet Parliament, Tuesday, the eminent
Russian spokesman complained of the lack of
American neutrality, notwithstanding agreeable re­
plies to the original representations by Washing­
ton. Quite obviously, the episode of the City of
Flint occasioned a sharp change in the official Rus­
sian attitude, and it is at least conceivable that
Washington was as much to blame as was Moscow.
The United States Government was accused by M.
Molotoff of “ meddling” in Russo-Finnish affairs.
A reply “ in kind” was at the White House, Wednes­
day, through Stephen T. Early, Secretary to the
President. Mr. Early suggested that the Russian
spokesman had deliberately timed his declaration
to influence the congressional vote on neutrality
legislation. This statement by Mr. Early is un­
worthy and nonsensical, for it assumes that our
Congress might be influenced by Moscow.

Volume 149

ONE HUNDRED— The

Commercial & Financial Chronicle —

YEARS OLD

2855

Hallgarten & Co.
Established 1850

New York
Chicago

London

Western Europe

P

APER bullets were almost the only kind in use
_ this week in Western Europe, although the great
war between the Allies and Germany now is in its
third month. The war of propaganda was waged
more fiercely than ever, while soldiers on the border
of Germany and France contemplated the deep mud
and the heavy rainfall that added steadily to the
difficulties of transportation. French official com­
muniques and reports of the German High Com­
mand were equally colorless, especially in the first
half of the week now ending. Dispatches from
Paris reported an “ eerie calm” on the Western
Front,” the inactivity being so pronounced as to
occasion nervousness and apprehension.
With
skies somewhat clearer in the latter half of the
week, scouting parties resumed their ordinary
forays. According to German accounts, Nazi troops
penetrated a short distance into France as they
sought to establish contact with their enemy.
Large-scale activities apparently were not attempted,
however, by either side, and almost all military ex­
perts now predict that there will be few develop­
ments of importance until next spring, in the land
war.
On the sea and in the air there was more action
than along the heavily fortified border between
France and the Reich. The powerful British Navy
maintained its grim patrol of the North Sea and
the unofficial naval blockade, which consists of a
sweepingly inclusive contraband list.
German
naval strategy was directed toward breaking this
strangle-hold on the Reich’s sea trade, with only
indifferent success. Submarine sinkings of both



W. C. Langley &Co.
M E M B E R S N E W Y O R K STOCK E X C H A N G E

115 BROADWAY

NEW YORK

TELEPH ONE B A R C L A Y 7-8800

2856

ONE HUNDRED— The

Commercial & Financial Chronicle —

YEARS OLD

Nov. 4, 1939

CURRENT NOTICE
— W . W . W oods, Jr., well known
Pacific Coast investment figure, has
been elected Vice-President in charge of
wholesale distribution of Edgerton,
Riley & Walter, California Investment
Securities Firm, it was announced.
For more than 15 years M r. Woods
has been identified in executive capaci­
ties in both wholesale and retail activi­
ties of well-known financial firms on the
Pacific Coast. For the past six years
he has acted as wholesale representative
for a large eastern investment banking
firm.
In addition to serving Southern Cali­
fornia Investors with complete invest­
ment and brokerage facilities through
retail office in Los Angeles, Whittier
and Long Beach, Edgerton, Riley &
Walter maintains an active department
wholesaling securities among many lead­
ing investment firms on the Pacific
Coast.

S

KILLED labor . . . plus nearby markets, plus un­
excelled transportation . . . added to plentiful lowcost electricity, equals an ideal plant location.
New Y ork State offers them all. That is why 291 of the
340 different kinds of U. S. industries are represented
in this territory. That is why New Y ork State has 10%
of the nation’s population and 15% of its wealth.
If you are a manufacturer and want to locate a plant in
the middle of the w orld’s greatest market, write one of
our operating headquarters offices in Albany, Buffalo or
Syracuse, and let us tell you more about New Y ork
State.

OPERATING
NIAGARA

COMPANIES
HUDSON

belligerent and neutral shipping were continued,
and hardly a day went by without reports of ship­
ping casualties. The sinkings, however, are said
to be far smaller and less important than those of
the early days of the World War unrestricted sub­
marine campaign of the Reich. More disquieting
was confirmation by British authorities of last
week’s rumors that a German pocket battleship is
operating in the North Atlantic and another in the
South Atlantic. These 10,000-ton vessels, speedy
and heavily armored, are outmatched only by five
British and French battleships in both speed and
armament, and they might conceivably inflict enor­
mous damage on shipping. There appears to be
some room for doubt even of the official British
statements, however, for the actual sinkings of mer­
chant ships have fortunately been too sparse for un­
questioned acceptance of the rumors. Aerial war­




OF

>— Brooke L. W ynkoop, for the past
73/2 years associated with Distributors
Group, Inc. as Vice-President and
manager of the trading department, is
now associated with the firm of R . H.
Johnson & Co., members of the New
York Stock Exchange and the New York
Curb Exchange. Prior to his connection
with Distributors Group, M r. Wynkoop
had for seven years been with John
Nickerson & C o., Inc., where he was a
Vice-President.
Also newly associated with R . H.
Johnson & Co. are Matthew J. McCabe,
formerly of John Nickerson & Co., Inc.,
and D . R . Chattaway, formerly as­
sociated with Distributors Group, Inc.
The New York office of Fundamental
Group Corp. which, since the brokerage
firm of E. A. Pierce & Co. disposed of
its interest in the corporation, has con­
tinued to occupy the old offices main­
tained by the Pierce firm, have moved
to 76 Beaver St., where it occupies the
entire 27th floor. Fundamental Group
Corp. is the national wholesale distribu­
tor of Fundamental Investors, Inc. and
Investors Fund C, Inc.
— John V. Hughes, formerly pro­
motion and sales manager of the New
York News Bureau Association, has
joined Standard Statistics C o., Inc. as
an executive in the advertising and sales
promotion department. Prior to his
connection with the New York News
Bureau Association, M r. Hughes was
associated with the Jos. Richards Co.
and with Lennen & Mitchell.
__j . W . Sparks & Co. announce the
formation of a Trading Department
under the management of C. Edgar Lee,
who will have associated with him
Holland A. Stevens and Frank J.
M cCall, all formerly with Dyer, Hudson
& Co.

fare consisted this week of a few flights by recon­
naissance planes of either side over the territory of
the other, and some modest losses occurred.
The propaganda war was waged with immense
and untiring energy, partly for domestic consump­
tion and partly to influence the neutral countries.
German circles insisted day after day that the Brit­
ish blockade will prove ineffective, and British and
French studies appeared in great numbers to prove
that German war and other supplies are inadequate
for a long siege. The German spokesmen gave out a
list of British ship casualties, last Sunday, which
included no less than 10 warships, some of which
have been inspected by neutral observers and testi­
fied to be free of damage. The Athenia incident
found another echo in a denial Monday by Lord
Lothian, the British Ambassador to Washington,
that the vessel carried guns of munitions when she

Volume 149

ONE HUNDRED The
—

Commercial & Financial Chronicle —

YE A R S OLD

2857

100 YEARS AG O TTHEY^say people “took life easier” then. But who,
today, would want to give up any of the con­
veniences that play a part in modern living ?
Foremost among the contributors toward our truly
easier life are gas and electric companies. Each year
our standard of living, industrial progress, and
national security are more and more dependent upon
the continued growth and progress of the public
utility industry.

Long Island Lighting Com pany
AND SUBSIDIARY COMPANIES
Queens Borough Gas and Electric Company
Nassau and Suffolk Lighting Company

Kings C ounty Lighting Company
Long Beach Gas Company, Inc.

CURRENT NOTICE

TO

/p Tire | /^financial

Vpnerri9* ^Iljrnntrl?
$
respected member of the Fourth Estate,
upon completion of a century devoted to
informative service in the varied interests^of commerce and finance, Columbia
System offers its heartiest felicitations.

C o l u m b ia G a s & E l e c t r ic
C o r p o r a t io n
Columbia System companies extend their oper­
ations through Ohio, Indiana, Kentucky, West
Virginia, Pennsylvania, Maryland, New York.




— Business Publishers International
Corp., New York, has just made public
a comprehensive summary of the status
of foreign dollar bond issues of various
Latin American Republics as of the close
of business, July 31, 1939 in a brochure
entitled “ A Survey of Latin America’s
Bonded Debt to the United States.”
In releasing the summary, John Abbink,
President of the corporation named,
which publishes Spanish-language in­
dustrial and trade papers circulating
wholly outside the United States, ex­
plained that its purpose was “ to assist
in the adjustment of Latin America’s
financial position, so that the weight of
those defaults might be removed from
the commercial picture.”
16 of the 20 southern republics are
embraced by the summary. The ex­
ceptions are Venezuela, which has no
foreign debt; Honduras, Nicaragua and
Paraguay, which have no outstanding
bonded dollar obligations. A total of
$1,718,211,111, plus £29,379,280, is
listed as being owed by the 16, according
to the survey, which further cites
$1,287,452,796, as the total in defaulted
interest. The principal of indebtedness
ranges from $342,670,000, owed by
Brazil, to $1,331,111, owed by Guate­
mala. M ajor debtors include Mexico,
with issues totaling $278,874,500, plus
£26,272,140, some of which have been in
default for a quarter of a century;
Chile, $249,801,543; Argentina, $234,210,000; Cuba, $187,430,000; Colombia,
$143,276,754. Approximately two-thirds
of the entire grouping are in default.
Exceptions are certain Argentine, Cuban
Uruguayan and Haitian issues.
— J. B. Hanauer & Co., 786 Broad St.,
Newark, N . J., analysis of Atlantic City,
N . J. with relation to its bonds and their
possibilities, including a financial state­
ment of the city.

ONE HUNDRED

2858

—

The Commercial & Financial Chronicle —

Y E A R S OLD

Nov. 4, 1939

The Story Behind the Sw itch ...
EMPLOYEES. Service required 19,298 regu­
lar, 1,970 temporary employees in 1938. Pay
roll $33,000,000.

UTILITY SERVICE becomes real for a cus­
tomer when he flicks a switch and gets light
. or heat . . . or power. This simple
operation gives no hint, however, of the invest­
ment and organization which are necessary to
make that service possible.
These are some of the facts behind the
service supplied by companies in the Associated
System—

INVESTORS. Holders of Associated Gas and
Electric Company securities number 154,694,
reside in every State and in many foreign
countries.
CONSTRUCTION. In order to maintain and
extend service, approximately $200,000,000
spent for new construction over the past 10
years. More than $14,000,000 spent in 1938.

CUSTOMERS. Electric, gas, and other serv­
ices supplied to 1,762,029 customers. Greatest
concentration in New York, Pennsylvania,
New Jersey.

RURAL SERVICE. M ore than 230,000 farm­
ers and other rural customers receive electric
service. This service required an investment of
more than $40,000,000 by the System.

RATES. Customers saved $17,080,000 an­
nually by total rate reductions made over past
10 years. In this period, domestic electric
rate reduced 46% , compared with 36% for
the entire industry.

★

#

There is still a great development ahead for the
public utilities. But it is a development which
requires the industry to spend large funds.
These funds will not be supplied by investors
unless they feel assured that utilities will be
allowed to earn a fair profit, and that they
will not be injured by subsidized com­
petition.

ASSOCIATED GAS AND ELECTRIC COMPANY

Printing for Lace and Muslin
Under the name of nature’s own printing,
says the “ Journal of Industrial Progress,”
Mr. Von Auer, of Vienna, has announced a
peculiar method for obtaining impressions
of the leaves of plants, &c. The process
consists simply in taking two polished metal
plates, one hard, the best substance being
copper, and the other soft, as for example, a
plate of lead, and laying the article to be
copied between them and passing the plates
between the rollers of a press, such as litho­
graphers use. By the great pressure ex­
erted, a beautifully sharp and faithful copy
of the article is produced on the leaden
plate from which impressions can be ob­
tained, which can be employed for printing
thousands of copies. The dried leaves of
plants can be copied in this way, and by
using gutta percha gently heated, even
moist plants will give impressions. The
chief use of this new art will, however, be
the reproduction of lace, &c., for if a piece
of lace, or of worked muslin, be placed be­
tween the plates instead of leaves, a beau­
tiful intaglio copy will be produced, from
which printed patterns can be provided.
Such plates might be at once employed to
print designs upon the muslin sent out to
be worked. It is but just to remark that
a similar invention was made about 20 years
ago by a Dane of Copenhagen of the name of
Peter Cyhl, who, having died before he per­
fected the art, the idea was lost sight of.
HUNT’S MERCHANTS’ MAGAZINE,
December, 1854




was sunk off the Irish Coast on Sept. 3. The Brit­
ish Government issued on Monday a White Paper
containing numerous charges of Nazi tortures in­
flicted upon occupants of concentration camps in
the Reich. Another flood of stories appeared of
German troop concentrations for the alleged pur­
pose of invading neutrals, Holland being the sup­
posed victim in this case. Sensible steps by the
Netherlander® to prevent any infringement of their
sovereignty were portrayed as indications that a
German assault is about to begin. More to the
point than vague and tendencious reports of pos­
sible military strategy were indications that both
sides are tightening their belts for a long conflict.
Stringent restrictions on food and clothing con­
sumption long have been effective in the Reich. It
was announced in London, Wednesday, that butter
and bacon will be rationed in the United Kingdom,
beginning Dec. 15, and a storm of protest quickly
developed.
In the diplomatic sphere two incidents of im­
portance stand out, and both suggest that the larger
European neutrals have every intention of avoiding
participation in the war between the Allies and
Nazi Germany. Premier Benito Mussolini effected
on Tuesday a sweeping change in his Italian Cabi­
net, and it was generally agreed in European chan­
celleries that the intent was to strengthen the peace
party in fascist Italy. Official statements in Rome
were to the effect that the changes merely repre­
sented the usual variations of leadership, to give
men of equal ability chances at the highest tasks.
Berlin saw no significance in the Cabinet changes,
while London proclaimed them as evidence that

Volume 149

ONE HUNDRED

—

The Commercial & Financial Chronicle —

YE A R S OLD

2859

SALUTING AN ACHIEVEMENT
A hundred years’ success in the publishing field is indeed a splendid
accomplishment.
C hronicle

We extend to the

C o m m e r c ia l &

F in a n c ia l

our heartiest congratulations, and our best wishes for
continued success in the century to come.

THE

ATLANTIC

REFINING

Founded in 1870, The Atlantic Refining
Company has been an important factor
in the petroleum industry ever since.
Atlantic exported the first cargo of pe­
troleum products ever to leave the United
States. It established the world’s first

Italy has no intention of fighting for its ally on
the northern end of the once-famous Rome-Berlin
axis. In Moscow Premier and Foreign Minister
V. M. Molotoff outlined Russian foreign policy,
Tuesday, 'before an extraordinary session of the
Supreme Soviet, in which he made it fairly clear
that Russia intends to maintain a benevolent neu­
trality toward Germany.
M. Molotoff berated
Great Britain and France for carrying on an “ im­
perialist” war against Germany for preservation of
their vast empires. When he reported to the House
of Commons in London, Thursday, Prime Minister
Neville Chamberlain found the Russian attitude
quite comforting, since it appears to mean a lack
of military aid to Germany. Mr. Chamberlain
asserted that the speech must have occasioned dis­
appointment in the Reich, and he refused to become
disturbed over “the flights of fancy in which M.
Molotoff indulged when describing the aims of the
Allies.”
Eastern Europe
NTENSIVE diplomatic activity was continued
throughout Eastern Europe, this week, in the
endeavor to achieve the new arrangements and new
balances for which the preoccupation of Great
Britain, France and Germany with their hostilities
provides an opportunity. The problem of RussoFinnish relations remained unsettled, notwithstand­
ing the suggestion by President Roosevelt some
weeks ago that Moscow treat the small State kindly.
Mr. Roosevelt was rebuked Tuesday by Premier and
Foreign Minister V. M. Molotoff, and first impres­
sions of the incident make it doubtful whether any

I




COMPANY

modern service station. Today it oper­
ates one of America’s largest tanker fleets,
including the world’s three largest welded
ships. It has refineries in Pennsylvania
and Texas, and 16,000 Dealers from New
England to Florida.

real aid was extended to the Helsingfors regime bv
the United States Government. In a general dis­
cussion of Russian foreign policy, M. Molotoff made
clear the desire of his country to remain neutral
in the Western European conflict, while favoring
Germany at least in a propagandists sense. Italy

Felicitations from Richard W. Lawrence,
President of the Chamber of Commerce
of the State of New York
And now another fine American institution—
“ The Commercial and Financial Chronicle” — joins
the Century-old Club! The 171-year-old Cham­
ber of Commerce of the State
of New York, of which I have
the honor to be President,
extends its heartiest birth­
day congratulations and good
wishes to a publication which
is outstanding in its field
and has the unique and en­
viable distinction of being
without a competitor in its
particular sphere of activity.
True to its name, this publi­
cation has chronicled with
painstaking fidelity the hap­
penings and events which,
taken altogether, form the
history of banking, invest­
ment and financing in the United States during
the last hundred years. It has rendered service
of a high order and deservedly won world-wide
recognition. May its influence grow and its
second century be filled with even greater accom­
plishment and reward than its first.

ONE HUNDRED T h e
—

2860

Com m ercial & Financial C hronicle —

YE A R S OLD

Nov. 4, 1939

MORE THAN 50 YEARS OF PROGRESS
PRODUCING — TRANSPORTING — REFINING — MARKETING

THE OHIO OIL COMPANY
INCORPORATED

G en era l O ffices — FINDLAY, OHIO

exchanged diplomatic notes with Greece, Thursday,
which suggest that Rome intends not only to hold
aloof from the conflict but also to influence Balkan
nations to a neutral attitude. The delicate problem
of Rumania was argued endlessly, for it holds per­
haps the most immediate threat to the peace of the
Balkans. German nationals were withdrawn stead­
ily from the Baltic States, and on Thursday it was
indicated that Reich subjects in Turkey also had
been ordered to prepare for return to the homeland.
Russian policy, as delineated on Tuesday by M.
Molotoff before a special session of the Supreme
Soviet, easily overshadowed all other immediate
E. F. Connelly, President, In vestm en t
Bankers Association of America, Tele­
graphs Congratulations to the Chron­
icle

E . F. C o n n e lly




One hundred years of serv­
ice devoted by the Chronicle
to the financial and commer­
cial interests of the country
marks a real milestone in the
fin a n c ia l h isto r y of th e
United States. The founders
of the Chronicle and those
who have so ably carried on
and maintained its high
standards have had and are
entitled to the respect and
confidence of all of us who
have read the Chronicle for
most of our business lives.
Congratulations and best
wishes.

occurrences in Eastern Turope. The Soviet spokes­
man aligned his country emphatically on the side
of peace, thus shattering the notions of some ob­
servers who predicted military aid to the Reich.
But Russo-German relations are being placed on an
increasingly solid and friendly basis, M. Molotoff
declared, and he hinted that material aid to Berlin
might be extended on a substantial scale, com­
mercially. He accused Great Britain and France
of waging an ideological war against Hitlerism and
asserted that the conflict really amounts to an “ im­
perialistic” war for the preservation o f the British
and French colonial empires. M. Molotoff stated
that he could not understand the refusal of Fin­
land to enter a “mutual assistance” pact with Rus­
sia similar to those already made by Moscow with
the Latvian, Estonian and Lithuanian Govern­
ments. No mention was made by the Russian
official of the Balkan States, and the impression
of neutral observers thus was deepened that the
understanding between Berlin and Moscow allo­
cates all the Baltic countries to Russia as a sphere
of influence, and all the Balkan States to a similar
subservience to the Reich. Turkey was accused of
having entered the “ orbit of war” when the pact
with Great Britain and France was signed by the
Ankara regime. The Supreme Soviet cheered the
statements dutifully and on Wednesday voted to
include within the Soviet Union the White Russian
and Ukrainian areas of former Poland.
Russian negotiations with the special negotiators
of Finland dragged along, throughout the week, and
only partial disclosures were made of the substance
of the conversations. Finland was admittedly pre-

Volume 149

ONE HUNDRED

—

...

T h e Com m ercial & Financial C hronicle —

YE A R S OLD

2861

THEY SOUGHT OIL ONLY TO LIGHT THEIR LAMPS

but they Pioneered a
“ Nation-on- W heels ”

cried Drake, when his
^
drill struck oil near Titusville, Penn­
sylvania, in 1859.

W O O D ’S G O L D ! ”

And, indeed, this thick black petroleum
that welled from the earth proved to be
a gift of the gods to struggling men. For it
lit their lamps, and made them candles, and
greased the wheels of their covered wagons.
Among those hardy oil pioneers were the
men who founded what is now Tide Water
Associated Oil Company. They were the
men who had the honor of building the
world’s first long distance pipe-line. The
Tide Water line that carried, and still car­
ries, the “ liquid gold” from Pennsylvania’s
richest oil fields to the great Tide Water
refinery on the East Coast.
But the industry itself never guessed its
own future, until, in 1877, a man named
Nicholas A. Otto invented a “ petrol engine’’

. . . the forerunner of your modern motor
car. Then came the first “ horseless” car­
riage. And in a brief forty years we find
a “ Nation-on-Wheels” ...o v e r 25,000,000 cars
covering the country’s highways.
But with the rapid increase in number,
the motor car likewise increased in speed
and in operating temperatures. Year after
year its lubricating problem becomes more
a c u te ... and year after year Tide Water
Associated Oil Company meets the situa­
tion with V ee d o l...th e motor oil that is
made 100% from that richest of Pennsyl­
vania crudes.
As with Veedol, so with all other Tide
Water Associated Oil Company’s products.
All are refined to give the utmost in service
and economy in their specific fields. To
those interested in either using or selling
automotive or industrial lubricants, we in­
vite their inquiry.

Tide Water Associated Oil Company
NEW YORK

•

SAN FRANCISCO

•

TULSA

M akers o f T y d o l F ly in g “ A ” G a s o lin e . . . A s s o cia te d F ly in g " A ” G a s o lin e . . . V e e d o l 100% P e n n s y lv a n ia M o to r O ils . . .
V e e d o l G rea ses . . . a n d T y c o l a n d A v o n O ils a n d G reases fo r e ve ry in d u s t r ia l p u r p o s e .
Copyright 1939 by Tide Water Associated Oil Company

pared to make some concessions to the Russians,
who plainly desire to establish themselves firmly on
the Baltic Sea, before the opportunity presented by
the Western European war vanishes. Special rights
in Finland, such as those already exacted from
other Baltic countries, were said to be the aim of
Moscow. Since these “ rights” of military occupa­
tion make the smaller countries virtual Russian
satrapies, Finland continued to interpose objec­
tions. After consulting at Helsingfors, the Finnish
representatives again journeyed to Moscow, Thurs­
day, where they were kept waiting while the Rus­
sian leaders conducted the sessions of the Supreme
Soviet. It is reported that Russian demands on
Finland do not include the right to establish bases
on the Aland Islands, in the Baltic, and if these
reports are substantiated they would mean that
Moscow has no intention of threatening Sweden and




Norway. These Scandinavian countries neverthe­
less remained alert and anxious, for it is now plain
that Soviet expansionism differs in no important
sense from the “ imperialism” which the Russians
declare is the mainspring of capitalistic foreign
policy.
Balkan unrest relates, for the moment, chiefly to
demands by neighboring countries for the return
by Rumania of territory alloted to that country in
the World War settlements, or seized by it after:
wards. Bulgarian claims upon the Dobrudja were
pressed diplomatically, it appears, and King Carol
conferred at length with his Ministers to Bulgaria,
Turkey, Greece and Yugoslavia, in the endeavor to
prevent formal demands. The fear prevailed for a
time that M. Molotoff might throw Russian influ­
ence behind Bulgaria, but the lack of any reference
to such problems in the speech of the Moscow

ONE HUNDRED

2862

—

The Commercial & Financial Chronicle —

YE A R S OLD

Nov. 4, 1939

CONGRATULATIONS!
We join today with the business world of America in
felicitating the Commercial and Financial Chronicle upon
one hundred years of splendid service to the country and
particularly to the nation’s investors and its corporate
enterprise.
There is available no more complete and revealing
story of the development and distribution of the country’s
vast resources than that which has been told, from week
to week for a century, in the columns of the Commercial
and Financial Chronicle. Its files are a saga of the daring
and ingenuity of American business.
Long may it continue to record the history of free
enterprise in this great nation.

P L Y M O U T H O IL C O M P A N Y
General Offices—Benedum-Trees Building
PITTSBURGH, PA.

spokesman occasioned relief. The Turkish Parlia­
ment assembled on Thursday and heard a defense
by President Ismet Inonu of the pacts with Great
Britain and France, which were said to be directed
against no other country and intended solely to pre­
serve Turkish rights and neutrality. Relations
between Italy and Greece were clarified in an ex­
change of letters, officially announced on Thurs-

day at Rome. In the Italian capital the notes were
viewed as equivalent to a pact of friendship, and it
was generally realized in Europe that Italy thus
took a long step toward its aim of a sphere of influ­
ence in the Balkans. The views entertained at
Rome are reported to contemplate a territorial ad­
justment whereunder Rumania might satisfy some
of the Bulgarian and Hungarian demands.

Discount Rates of Foreign Central Banks
Shoes Manufactured by Machinery
The New York “ Evening Post” gives the
following description of the manner of mak­
ing shoes by a machine, owned by Mr. Ruggles, of 60 Gold Street, in this city: The
sole leather is first pressed between wooden
rollers, which makes it extremely firm and
compact— much more so than hammering
can do. It is then placed under a cutting
machine which at one operation cuts it into
the proper shape. Meantime, another ma­
chine is busy making steel wire into screws
of about three feet in length, all of which is
done with surprising celerity. A fourth
machine punches the soles with holes, in­
serts the screw, and cuts it off at the proper
length. All that is then necessary is to rivet
the screws by a few blows with a hammer on
an anvil. The soles manufactured in this
way are superior to the Napoleon, inasmuch
as the rivets adhere better, and the leather
is rendered more compact. They are pro­
duced with infinitely less labor and can be
afforded about 50% cheaper.
HUNT’S MERCHANTS’ MAGAZINE,
December, 1843




HERE have been no changes during the week in
the discount rates of any of the foreign central
banks. Present rates at the leading centers are
shown in the table which follows:
Country
A rgen tina..
Batavia____
B elgium ___
Bulgaria___
Canada____
C h ile______
Colom bia . .
Czechoslovakia____
D anzig____
Denmark . .
Eire. _____
England___
Estonia____
Finland____
F ran ce____
Germany . .
Greece_____

Rate in
Effect
Nov. 3

Date
Established

3
4

M ar.
July
July
Aug.
M ar.
D ec.
July

3
4
5H
3
2
W
4
2
4
6

Jan. 1 1936
Jan. 2 1937
O ct. 9 1939
June 30 1932
O ct. 26 1939
O ct. 1 1935
D e c. 3 1934
Jan. 2 1939
S e p t.22 1932
Jan. 419 37

3H
4
2H
6

1
1
6
15
11
16
18

1936
1935
1939
1935
1935
1936
1933

Pre­
vious
Rate
_
3
7
4
5
3H
5
4>*
3^
3
5
2H
5
7

Country
H ollan d ___
Hungary___
India............
I ta ly ______
Japan_____
L ithuan ia..
M o r o cc o ___
N orw ay___
P ola n d ____
P ortugal___
Rumania . .
SouthAirica
Spain______
Sweden____
Switzerland
Y ugoslavia.

Rate in
Effect
N ov. 3
3
4
3
4H
3.29
3
6
6H
4X
4H
4
3M
3H
5
2H
1H
5

Date
Established
A u g. 29
Aug. 29
N o v. 28
M ay 18
A pr. 6
Jan. 14
July 15
M ay 28
S e p t.21
D ec. 17
A ug. 11
M ay 5
M ay 15
July 15
D ec. 1
N o v . 25
Feb. 1

1939
1935
1935
1936
1936
1937
1939
1935
1939
1937
1937
1938
1933
1935
1933
1936
1935

Pre­
vious
Rate
2
3^
5
3.65
4
7
4V*
3H
5
4H
4H
4H
5
3
2
6H

Foreign Money Rates
N LONDON open market discount rates for short
bills on Friday are lks% , as against 1 ^ on
Friday of last week, and 1 3-16% for three-months’
bill, as against 1 3-16% on Friday of last week.
Money on call at London on Friday was % -l% . At
Paris the open market rate is nominal at 2bt% and
in Switzerland at 1%.

Volume 149

ONE H U N D R E DT h e
-

Com m ercial & Financial Chronicle —

Congratulations to
oTlrr

Y E A R S OLD

2863

< jEinanrial
,

on its 100th Birthday

**€
fjrrim >
irJh

PROCTER & GAMBLE
CINCINNATI,

OHIO

Makers of
CAMAY
IVORY SOAP
OXYDOL
IVORY FLAKES
LAVA SOAP
IVORY SNOW
DREFT
GUEST IVORY
CRISCO
CHIPSO
P & G WHITE NAPHTHA SOAP

Bank of England Statement
HE statement for the week ended Nov. 1 shows
an expansion of £829,000 in note circulation,
the first increase in over a month, and evidently
associated with month-end requirements. As the
circulation rise was attended by a small loss of
£17,860 in bullion holdings, reserves fell off a total
of £817,000. Circulation now amounts to £527,966,000 compared with £183,950,811 a year ago. The
proportion of reserves to deposit liabilities dropped
to 31.5% from 31.9% last week, and compares with
27.3% a year ago. Public deposits fell off £2,031,000
while other deposits gained £1,790,822. The latter
consists of bankers accounts which decreased £1,958,899 and other accounts which increased £3,719,721. Government securities registered a decline of
£705,000 while other securities rose £1,328,386. Of
the latter amount, £993,896 represented an addition
to discounts and advances and £331,190 to securities.
The Bank rate remains at 2%. Below we furnish
the different items with comparisons for previous
years:

T

B A N K O F E N G L A N D ’ S C O M P A R A T IV E S T A T E M E N T
Nov. 1,
1939
£

Circulation__________
Public deposits_____
Other deposits______
Bankers’ accounts.
Other accounts___
Governm ’t securities
Other securities_____
D isct. & advances .
Securities_________
Reserve notes & coin
Coin and bullion____
Prop, o f res. to lia b ..
Bank rate___________
G old val. per fine oz_




N ov. 2,
1938
£

483,950,844
14,132,887
145,918,245
109,481,764
36,436,481
102,386,164
31,593,387
10,449,015
21,144,372
43,770,596
327,722,440
27.3%
2%
2%
84s. 11 Hd.

527,966,000
10.540.000
157,794,393
114,802,301
42,992,092
105,336,164
27,666,648
5,633,403
22,033.245
53.089.000
1,054,99?
31.5%

168s.

N ov. 3,
1937

N ov. 4,
1936

£
447,111,863
27,201,594
127,149,173
85,340,417
41,808,756
81,963,337
27,623,583
7,654,874
19,968,709
62,492,566
249,604,429
40.40%
2%
2%
84s. 11 H d. 84s. l l ^ d .
£

485,908,678
30,284,690
126,067,569
89,435,199
36,632,370
103,413,165
28,570,975
7,820,119
20,750,856
42,083,062
327,991,740
26.9%

Nov. 6,
1935
£
402,157,517
21,008,522
126,200,009
89,559,105
36,640,904
87,214,999
23,478,841
10,986,320
12,492,521
54,249,689
196,407,206
36.85%
2%
84s. 11 H d.

Robert M. Hanes, President of American
Bankers Association Congratulates the
Chronicle
Banking and business join in extending to the
Commercial and Financial Chronicle their con­
gratulations on its one hundredth anniversary
of publication. The faithful
recording of news and the in­
terpretation of events signif­
icant to investment, finance,
and commerce which have
characterized its century of
public service command our
respect and call for our best
wishes.
Through the periods of
American prosperity and de­
pression alike“ The Chronicle
has continued to bring arti­
cles and comments worthy
of the consideration of every
banker and businessman. Its
Copyright by Harris & Ewing
issues have approached busi­
R
obert M H
. anes
ness problems editorially in
the light of reality, showing neither fear nor
favor, and with the true spirit of journalism— to
present fact, tempered with reason, usefully, con­
cisely and adequately.
The library of the American Bankers Associa­
tion contains not only the current editions of
the Chronicle, but also many files of its older
issues. Both have proved highly valuable to our
work.
It is our hope that throughout its second cen­
tury, the Chronicle will continue to expand the
sphere of its influence and the value of its service.

ONE HUNDRED

2864

—

The Commercial & Financial Chronicle —

YE A R S OLD

Nov. 4, 1939

SOLVENTS* CHEMICALS
FINE ROSSVILLE ALCOHOLS
Co

m

m

e r

c

i a l

17 E A S T
PLANTS:

S

42nd

o

l v e n

Co

t s

STREET,

NEW

r p o r a t i o n

YORK,

N. Y.

T E R R E H A U T E , IN D .; P E O R IA , I L L .; W E S T W E G O , L A .; H A R V E Y , L A .;
S T E R L IN G T O N , L A .; A G N E W , C A L I F .; P H IL A D E L P H IA , P A .

B A N K O F F R A N C E ’S C O M P A R A T IV E S T A T E M E N T

Bank of France Statement
HE statement for the week ended Oct. 26
showed an increase in note circulation of
140,000,000 francs, which raised the total outstand­
ing to 144,379,000,000 francs. Notes in circulation
a year ago totaled 110,446,486,430 francs and the
year before 91,336,121,885 francs. The Bank’s gold
holdings showed a slight increase of 8,601 francs,
while the items of French commercial bills dis­
counted, bills bought abroad, advances against se­
curities and creditor current accounts showed de­
creases of 471,000,000 francs, 21,000,000 francs,
27,000,000 francs and 1,630,000,000 francs respec­
tively.
Gold holdings now total 97,266,047,756
francs, compared with the pre-devalued holding of
55,808,328,520 francs a year ago. The proportion of
gold on hand to sight liabilities rose to 60.35%, com­
pared with 40.47% last year. A comparison of the
different items for three years is furnished below:

T

Changes
for W eek

Oct. 26. 1939

Oct. 27, 1938

Oct. 28, 1937

Francs
Francs
Francs
Francs
+ 8,601 97,266,047,756 55,808,328,520 55,805,022,187
*39,391,821
18,332,673
11,951,335

Credit bals. abroad,
a French commercial
bills d iscou n ted.,
— 471,000,000
— 21,000,000
b Bills bought abr’ d
— 27,000,000
A d v. against securs.
N ote circu la tio n ___
+ 140,000,000
Credit current accts. — 1,630,000,000
c Tem p. advs. with­
N o change
out int. to State . .
Propor’n of gold on
hand to sight lia b .
+ 0.55%

12.871.000. 00015,926,209,656 10,620,336,602
85,000,000
750,595,224
810,515,291
3,576,000,000 3,865,476,335 3,710,408,274
144379000,000 110446 486,430 91,336,121,885
16.703.000. 000
27,469,016,296 17,326,333,073
25,472,990,139 48,133,649,244 26,918,460,497
60.35%

40.47%

51.36%

* Figures as o f O ct. 12, 1939.
a Includes bills purchased in France, b Includes bills discounted abroad, c In
the process o f revaluing the Bank’s gold under the decree o f N o v . 13, 1938, the
three entries on the Bank’s books representing tem porary advances to the State
were wiped out and the unsatisfied balance o f such loans was transferred to a new
entry o f non-interest-bearing loans to the S ta te .
Revaluation o f the Bank’s gold (at 27.5 m g. gold 0.9 fine per franc) under the
decree o f N o v . 13, 1938, was effected in the statement o f N o v . 17, 1938; prior to
that date and from June 20, 1937, valuation had been at the rate o f 43 m g. gold 0 .9
fine per franc; previous to that tim e and subsequent to Sept. 26, 1936, the value
was 49 m g. per franc, and before Sept. 26, 1936, there were 65.5 m g. o f gold to
the fra n c.

Bank of Germany Statement
HE statement for the last quarter of October
showed an increase in note circulation of 617,000,000 marks, which raised the total outstanding to
CURRENT NOTICE

MUNICIPAL, CORPORATION AND
INSTITUTIONAL SECURITIES
Inquiries Invited

Ed w a r d D. J ones & C ompany
S t. L o u is S to ck E x c h a n g e




M em b ers
C h ic a g o S to ck E x c h a n g e

N . Y . C u rb E x ch a n g e A s s o c ia te

STOCKS AND BONDS
BOATMEN’S BANK BUILDING
ST. LOUIS
C E n tra l 7600

— The investment advisory depart­
ment of Amott, Baker & Co., Inc., 150
Broadway, New York City, has pre­
pared for distribution a pamphlet en­
titled “ War and Investment Policy” ,
which contains suggestions on shaping
investment programs to war-time trends.
— Arthur Thompson & Co., 52 Wil­
liam St., New York City specialists in
U. S. Government Securities, announce
that Reginald H. Sturgis, formerly with
Goldman Sachs & Co., is now associated
with their firm.
— George J. Klein, formerly with
Lehman Bros., is now associated with
A. L. Stamm & Co.

Volume 149

ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD
—

—

2865

International Shoe Co.

ST. LOUIS
NEW YORK

BOSTON

10,819,000,000 marks. Notes in circulation a year
ago aggregated 7 ,753,896,000 marks and the year
before 5 ,2 7 5,262,000 marks. The Bank’s gold hold­
ings fell off 277,000 marks, while bills of exchange
and checks gained 172,100,000 marks. Gold holdings
now total 76,869,000 marks, compared with 7 0 ,7 7 3 ,000 marks a year ago. The proportion of gold to
note circulation is now at 0 .7 1 % ; a year ago it was
0 .9 8 % and the year before 1 .4 3 % . Below we furnish
the different items with comparisons for previous
years:
REICHSBANK’S COMPARATIVE STATEMENT

Changes
for Week

Oct. 31, 1939

Oct. 31, 1938

Oct. 30, 1937

Reichsmarks

Assets—

Reichsmarks

Reichsmarks

Reichsmarks

70.081.000
70.773.000
Gold and bullion____
76,869,000
— 277,000
10.605.000
Of which dep. abr’d .
20.055.000
Res. in for. currency..
5,617,000
5,703,000
Bills of exch. & checks. + 172,100,000 9,368,200,000 7,543,000,000 5.584.921.000
a237,324,000 105.631.000 120.549.000
Silver and other coin ..
23.007.000
a20,892,000
Advances___________
43.543.000
Investments_________
a l ,348,692,000 847.597.000 397.447.000
Other assets_________
a l ,397,066,000 1.254.122.000 723.694.000
Liabilities—
Notes in circulation_
_
+ 617,000,000 10,819,000,000 7.753.896.000 5.275.262.000
a l,394,438,000 1.040.455.000 711.480.000
Oth.dally matur.oblig.
a569,006,000 400.026.000 316.219.000
Other liabilities..........
Propor’n of gold & for.
1.07%
0.71% ______0.98%
curr. to note circul’n
1.43%
* “ Reserves in foreign currency” and "Deposits abroad” are included in “ Gold
coin and buUlon.” a Figures as of Oct. 7, 1939.

CURRENT

U

N IT E D S T A T E S T R E A S U R Y financing was
the only point of interest in the New York
money market this week, as all rates were un­
changed in the ordinary classes of paper and hardly
any business was done. The Treasury sold on Mon­
day $156,000,000 91-day discount bills, awards being
at an average of 0 .0 2 8 % , computed on an annual
bank discount basis. On the same day the Treas­
ury offered $250,000,000 Reconstruction Finance
Corporation 1 % notes due July 1, 1942, applica­
tions amounting to $3,643,000,000. Another issue
of $100,000,000 91-day bills was sold yesterday at an
average of 0.0 1 7 % discount. Bankers’ bill and com­
mercial paper trading was slow, with all quotations
merely carried over from previous weeks and
months. Call loans on the New York Stock E x ­
change held at 1 % for all transactions, and time
loans again were 1 % ,% for maturities to 90 days
and 1 % % for four to six months’ datings.

N O T IC E

—Robert Proddow, Jr. has been
admitted to partnership in Parker,
McElroy & Co., Member of the New
York Stock Exchange.
— S. Bleichroder New York, Inc. an­
nounce the removal of their offices to
the forty-second floor of 30 Broad St.,
New York City.
—Bristol & Willett, 115 Broadway,
New York City, has prepared a brief
summary on Lawrence Portland Cement
Co.
—Announcement was made of the ad­
mission of S. Watson Maxwell, Jr. to
general partnership in the firm of J. F.
Reilly & Co.



New York Money Market

St. Louis Listed and Unlisted Markets
N ewhard , C ook & Co.
MEMBERS NEW Y O R K STOCK EXCHANGE
St. Louis Stock Exchange

New Y ork Curb Exchange (Associate)
FOURTH

&

O L IV E

ST. LOUIS

New York Correspondent & Wire System— Smith, Barney & Co.

ONE HUNDRED—The Commercial & Financial Chronicle YEARS OLD

2866

—

CURRENT

BONDS
MUNICIPAL
CORPORATION
PREFERRED STOCKS
Trading Department specializing in
Unlisted Securities

Nov. 4, 1939
N O T IC E

— The combination of a generally
skeptical view of the present level of
activity, a relatively moderate com­
modity price level, fairly reasonable
finished goods prices, and the recent
subnormal level of inventories is pointed
to by the New York Stock Exchange firm
of Spencer Trask & Co., 25 Broad St.,
New York City, as warranting the belief
that business will continue to be good
well into 1940.
“ The war” , writes the firm in its new
Business Survey, “ seems to have largely
rectified the four weaknesses existent in
our domestic economy a few months ago,
namely, (1) the lethargy of the capital
goods industries; (2) a serious malad­
justment between finished goods and
commodity prices; (3) the gradual
erosion of farm income; and (4) the
antagonism between Washington and
industry.
“ With business virtually certain to
continue at a very high rate throughout
the rest of this year, the question be­
comes one of what to expect in the first
quarter of 1940. Two factors that might
cause alarm at present appear to be a
difficult labor situation and a tendency
to build up inventory.
“ Granted that the labor picture is
serious, it appears that the C. I. O.
movement really passed its peak in 1937
and that, though there may be sporadic
strikes, the effect should not be to pre­
vent a continued high level of business
activity. As for inventory accumula­
tion, consumers’ goods inventories were
subnormal until recently, and six weeks
of accumulation have probably not
pushed them far above a normal turn­
over figure.
“ It seems logical to expect” , says the
company, “ that accumulation of stocks
in November and December will lead to
a drop-off in first quarter business in­
dices . The important point is, however,
that the probable first quarter decline
will likely be from record levels to a
point where it is still very satisfactory
without actually crowding productive
capacity as it is at the moment.”

PrEscattlW
right, SniderC
a.
INVESTMENT BANKERS

918 B a ltim o r e A v e n u e

K a n s a s C ity , M o.

AT&T— KC262

Vi. 3143

D istributors

Underwriters

C O R P O R A T E a n d M U N IC IP A L
S E C U R IT IE S

Stern Brothers & Co.
1 0 0 9 -1 5 B a l t i m o r e A v e .
KANSAS

C IT Y ,

MO.

ST. JOSEPH, MO.

OMAHA, NEB.

I. M. S IM O N & C O .
Business Established 1874

Enquiries Invited on all
Mid-Western and Southern Securities
MEMBERS
New York Stock Exchange
New York Curb (Associate)
St. Louis Stock Exchange
Chicago Board of Trade
Chicago Stock Exchange
315 N o rth F o u r th S tr e e t

ST.

L O U IS ,

MO.

Telephone Central 3350

—Buckley Bros., members Phila­
delphia Stock Exchange announces that
A. L. Hutchinson has become associated
with them in their trading department.
— R. E. Swart & Co., Inc., announce
that Paul G. Cunningham has become
associated with the sales organization fo
their Pittsburgh office.

A. S. Huyck

and

Company

Incorporated

Municipal Bonds
100 West Monroe Street, Chicago
T e le p h o n e F R A n k lin

1435

STANLEY GATES & CO.




Investment Securities
FIRST NATIONAL BANK BUILDING
ST.

P A U L , M IN N .

— New Canadian bond financing for
the month of October totaled $212,313,181 and consisted principally of an issue
of $200,000,000 of 2% notes of the
Dominion of Canada due Oct. 16, 1941,
the first sold since the war started, and
an issue of $8,614,000 Province of
Ontario 3J4% bonds due Nov. 1, 1947,
according to figures compiled by Wood,
Gundy & Co., Ltd. In addition, two
issues of treasury bills were sold, one for
$30,000,000 at a rate of .880% and the
other for $25,000,000 at a rate of .858%.
In the same month last year, excluding
treasury bills, Canadian bond financing
aggregated $51,505,658 and in 1937 to
$627,048.
In the first 10 months of this year,
Canadian government and municipal
bond financing, exclusive of $520,000,000 of treasury bills, amounted to $563,820,913, as compared with total of
$362,750,487 and $374,808,635 in the
similar periods of 1938 and 1937 respect­
ively, according to the compilation. Of
the 1939 total, $414,495,011 was for
refunding and $149,325,902 for new
money.
Corporate financing for the first 10
months of 1939 totaled $227,378,500,
of which $212,377,500 was for refunding
purposes and $15,001,000 for new
money.
This 10-month total, the
largest in any of the past five years,
compares with $56,110,500 in 1938 and
$125,356,100 in 1937.

ONE HUNDRED— The Commercial & Financial Chronicle YEARS OLD

Volume 149

2867

—

i
1

Gher & Co.

A.
SOUND

FOR

SECURITIES
N ew Y ork

.

INVESTMENT

C h icago

I

i

I
New Y ork Money Rates

E A L I N G in detail w ith call loan rates on the
S tock E xchan ge fro m d a y t o d a y , 1 % was the
ru lin g q u ota tion all th rou g h the w eek fo r b o th new
loans and renew als.
T h e m a rk et fo r tim e m o n e y
continues quiet. R a tes co n tin u e d n om inal at
%
up to 90 days a n d 1 3 4 % fo r fo u r to six m o n th s’
m aturities. T h e m ark et fo r prim e com m ercia l paper
has been quiet this w eek . T h e d em a n d has been fair
b u t high class paper con tin u es in lim ited su p p ly .

D

134

R u lin g rates are % % @ 1 % f ° r ah m aturities.

H E m arket fo r prim e b a n k ers’ a ccep ta n ces has
been sligh tly stron ger this w eek.
Prim e bills
have been in fair s u p p ly a n d the d em an d has im ­
p ro v e d . T h ere has been n o change in rates. D ea lers’
rates as re p o rte d b y the F ederal R eserve B a n k o f
N ew Y o r k fo r bills u p t o a n d in clu d in g 90 days are
3 4 % b id an d 7 -1 6 % a sked; fo r bills ru n n ing fo r fo u r
m on th s, 9 -1 6 % b id and
asked; fo r five and six
m on th s, 3 4 % b id and 9 -1 6 % asked. T h e bill b u y in g
rate o f the N ew Y o r k R eserve B a n k is
fo r bills
running fro m 1 to 90 d ays.

T

34%

34%

D iscount Rates of the Federal Reserve Banks

T

n o changes this w eek in the
o f th e F ederal R eserve ban k s;
G o v e rn m e n t ob ligation s are
t o the ta b le . T h e fo llo w in g is

Breckinridge

and

DISCOUNT RATES OF FEDERAL RESERVE BANKS
Rate in
Efjecl on
biov. 3

Federal Reserve Bank

Boston______ .
....
New Y o r k .. . .
Philadelphia______
___
Cleveland___
Richmond____
Atlanta______
Chicago________ . . . . .
St. Louis_______
. _____
Minneapolis_____ _ . . ._
Kansas City. . .
. . .
Dallas_____
_
_
_
San Francisco_
_
_
_

1
1
134
IX
ix
*1X
* iy 2
*1X
IX
*1X
*1X
IX

Date
Established

Sept. 1,
Aug. 27,
Sept. 4,
May 11,
Aug. 27,
Aug. 21,
Aug. 21,
Sept. 2,
Aug. 24,
Sept. 3,
Aug. 31,
Sept. 3,

Previous
Rate

1939
1937
1937
1935
1937
1937
1937
1937
1937
1937
1937
1937

i-x
IX

2
2
2
2
2
2
2
2
2
2

* Advances on Government obligations bear a rate of 1% , effective Sept. 1, 1939,
Chicago; Sept. 16, 1939, Atlanta, Kansas City and Dallas; Sept. 21, 1939, St. Louis.

Bankers’ Acceptances

H E R E h ave been
red iscou n t rates
recen t advan ces on
sh ow n in the fo o tn o te

the schedule o f rates n ow in e ffe c t fo r the variou s
classes o f p aper at th e d ifferen t R eserve ban k s:

Company

Chicago’s Oldest
Investm ent Counsel Firm

Course o f Sterling Exchange
T E R L I N G exch an ge is ch a ra cterized , as since the
o u tb re a k o f th e E u rop ea n w a r, b y m eager
v olu m e o f business a n d n arrow price changes. T h e
la ck o f sig n ifican t flu ctu a tion s in rates is con sid ered
as due la rg ely to o fficia l co n tro l o f exch an ge and
com m erce in L o n d o n . T h e range this w eek in the
N e w Y o r k free m ark et has been b etw een $3.9834 and
$4.00 fo r b a n k ers’ sight b ills, co m p a re d w ith a
range o f b etw een $3.9 93 4 and $ 4.02 last w eek . T h e
range fo r cable transfers has been b etw een $3.9834
a n d $ 4.0034; co m p a re d w ith a range o f betw een
$3.9934 a n d $4.0 23 4 a w eek ago.
T h e o fficia l ex ch an ge rates fix e d b y the B an k o f
E n g la n d have sh ow n n o change in the past few
w eeks:
N e w Y o r k cables 4 .0 2 -4 .0 4; Paris checks
176-177; A m sterd a m , 7 .5 2 -7 .5 8; C a n a d a , 4 .4 3-4.47.

MUNICIPAL
PUBLIC UTILITY
CORPORATION

BONDS
134 S O U T H

LA SALLE

STREET

CHICAGO

A.C.ALLYNandCOMPANY
FRANK P. BRECKINRIDGE, President
Correspondent:




Bertil O h lin ,

Stockholm, Sweden

In corp ora ted

Chicago
New York
Boston
Philadelphia
Kansas C ity

Milwaukee
Omaha

ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD

2868

—

—

H. M. Byllesby and C
ompany
F o u n d e d 1902

Nov. 4, 1939

H. B. L a R occa & Co.
IN C O R P O R A T E D

Underwriters and Distributors of
Investment Securities

135 South La Salle Street, Chicago
N ew Y o r k

P h ila d e lp h ia

B erlin was n ot q u o te d .

P it ts b u r g h

M UNICIPAL BONDS

29 SOUTH LA SALLE S TR EET, CHICAGO

M in n e a p o lis

L ire are u n o ffic ia lly q u o te d

in L o n d o n at 7 8 .5 0 .
T h e fo llo w in g o fficia l rates have been fix e d fo r
o n e-m on th d eliv e ry in th e fo rw a rd foreign exch an ge
m a rk et: N ew Y o r k % cen t p rem iu m t o p a rity ; Paris
p a rity fo r b o th sellers a n d b u y ers; A m sterd a m \]/2
p oin ts p rem iu m t o p a rity ; Brussels p a rity t o 4 p oin ts
d iscou n t; Z u rich 3 p oin ts p rem iu m t o p a rity .
L ittle com m e n t o f im p orta n ce b earin g d ire ctly
u p on th e foreig n ex ch an ge m arkets can be e x p e cte d
u n til th e E u rop ea n co n flict en ds a n d exch an ge and
oth er com m ercia l restriction s are re m o v e d . E v e r y ­
w here su ch con trols are in fa c t b ein g tig h ten ed .
A L o n d o n d isp a tch states th a t an in tim a tio n has
been receiv ed b y the L o n d o n M e ta l E xch a n ge fr o m the
B ritish B oa rd o f T ra d e th a t a fter careful ex a m in a tion
o f th e situ a tion it has d e cid e d t o su sp en d all ex p o rt
licenses fo r tin w h ich are at present in fo rc e . T h is
decision w ill be g iv en im m ed ia te e ffe c t. T h e sus­
p en sion o f p u b lica tio n o f B ritish im p o rt a n d e x p o rt
figures on b u llion w h ich o ccu rre d a few w eeks ago
has been fo llo w e d b y su spen sion o f th e p u b lica tion
o f all com m ercia l tra n sa ction s, w ith th e result th a t
m ost trad e indices are n o longer a v aila b le.
T h e m ark et ex p erien ced n o surprise w h en the
F ed eral R eserv e B a n k at th e in stiga tion o f the
U n ited States T re a su ry on O ct. 25 su sp en ded p u b li­
ca tion o f the F ed era l R eserve B o a r d ’s d a ily and
w eek ly rep orts o n th e g o ld m o v e m e n t at th e P o rt
o f N ew Y o r k .

Channer Securities Company

A lm o st im m e d ia te ly a fter th e F ed era l R eserve
a ctio n cam e an a n n ou n cem en t fro m L o n d o n th a t th e
G o v e rn m e n t o f In d ia has b a n n e d the im p o r t b y sea
or lan d o f silver b u llio n , silver sh eets, a n d silver
plates w h ich h a v e u n dergon e n o m a n u fa ctu rin g p ro ­
cess su bseq u en t t o rollin g . A n e x c e p tio n to this rule
is m ade in cases where a license has been g ran ted b y
th e R eserve B a n k o f In d ia .
T h e G o v e rn m en t o f
In d ia has likew ise p ro h ib ite d the im p o r t or e x p o rt o f
g old e x ce p t un der license.
C o m p la in t is m o u n tin g in G reat B rita in against the
“ co n tro litis” o f the w artim e b u re a u cra cy . O n O ct. 29
P a rlia m en t’s p rog ra m listed so m a n y criticism s for
answ er b y th e G o v e rn m e n t th a t th e B ritish press
called it “ grievan ce w e e k .” M em b ers o f P a rliam en t
re p o rte d a barrage o f in d ig n a n t criticism fr o m bu si­
ness m en on the g rou n d th a t un n ecessa ry p osta l a n d
ca ble cen sorsh ip delays im p eriled a h e a v y v olu m e o f
e x p o rt business. T h e press in general t o o k u p th e
cr y o f “ co n tro l th e c o n tr o ls .” It is th o u g h t th a t the
criticism s m a y lead t o som e easin g o f th e restriction s
a n d th u s result in im p ro v e m e n t in B ritish in ter­
n a tion al tra d e.
N u m erou s business item s ou tsid e th e s trictly
foreign exch an ge field p o in t t o th e increa sin g general
con fid en ce in G reat B ritain w h ich , if m a in ta in ed , w ill
e v e n tu a lly be re fle cte d in foreig n exch a n ge a n d
foreig n trad e a c tiv ity .
One su ch in d ica tio n is the
recen t cu t m ade b y u nderw riters in w a r risk in su r­
ance ra tes. O ther in d ica tion s are seen in th e m ore

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Volume 149

ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD
—

W E. H u t t o n
.

E s t a b l is h e d

I N

2869

—

V E S T M

E N

T

& Co m p a n y
1886

S E C U

R I T I E S

Members New York Stock Exchange
and other Principal Exchanges
O F F IC E S :
C in c in n a ti

N ew Y o rk

B a lt im o r e

D e tr o it

L a n s in g

spirited ton e o f tra d in g in m ost o f the L o n d o n
m ark ets, especia lly in th e m o n e y m a rk et, the rise
in g ilt-ed g ed securities a n d in s to ck exch an ge prices,
and the g reatly im p r o v e d p osition o f the B a n k o f
E n g la n d , w hose n ote circu la tion as o f O ct. 25 sh ow ed
a re d u ction , the sixth su ccessive decline since the
record circu lation o f £ 5 5 3 ,4 7 5 ,0 0 0 o n A u g . 24.
T h e ra p id return o f notes to the B a n k sh ow ed th a t
p u b lic a n x iety has been a lla y ed a n d was largely
responsible fo r the re d u ctio n last w eek o f the B an k
o f E n g la n d ’s rate fro m 3 % to 2 % , brin g in g the rate
again to the low est level e v e r establish ed in L o n d o n .
T h e L o n d o n “ F in an cia l N e w s” in d ex o f 30 in d u s­
trial stock s, b ased on J u ly 1, 1935 as 100, s to o d at
7 4.5 on O ct. 28, as against 6 6.9 a m on th earlier.
R eu ters s to ck in d ex o f L o n d o n s to ck prices on O ct. 30
s to o d at 89.3 fo r ind u strials, co m p a re d w ith 88.1 on
O ct. 17.
T h e p ron ou n ce d stren gth o f th e last few w eeks in
the g ilt-ed g ed stock s in L o n d o n has created a g o o d
fou n d a tion on w h ich to start b u ild in g w ar loan plans.
Since A u gu st th e w ar loan
per cents h ave risen
from 883^2 to 9 3 ^ ; 2 ^ per cen t C on sols have ad ­
v a n ce d from 62 t o 683^; C o n so l 4s have a d v a n ced
from 983^ t o 1023^.
T h e con v ersion 33^s have
sim ilarly im p ro v e d fro m 873^2 t o 9 2 ^ and the fu n d ­

1003^2

P h ila d e lp h ia

B o sto n

L e x in g to n

C an a dian ex ch an ge fo llo w s th e tre n d apparen t
since the estab lish m en t o f fix e d rates b y L o n d o n at
the ou tb rea k o f th e w ar.
H en ce C an a d ian funds
con tin u e to rule at a d iscou n t in term s o f th e U n ited
States d ollar. D u rin g th e past w eek M o n tre a l funds
ra n ged b etw een a d iscou n t o f 1 0 ^ % a n d a dis­
cou n t o f 9 1 5 -1 6 % .
A s n o te d in these colu m n s last w eek , th e Federal
R eserve B a n k o f N e w Y o r k has d iscon tin u ed re p o rt­
ing the g o ld m o v e m e n t at th e P ort o f N e w Y o r k .
T h e figures o f im p orts a n d ex p orts w h ich fo llo w are
taken fro m the w e e k ly statem en t o f the U n ited
States D e p a rtm e n t o f C om m erce and c o v e r the
p eriod O ct. 21 t o 25, in clu siv e . T h e figures are for
a p eriod sh orter th a n a w eek as the D e p a rtm en t has
d e cid e d t o have its statem en t co v e r th e w eek ly
p eriod e n d in g W e d n e sd a y hereafter (in stead of
F rid a y as h e retofore) in ord er t o h ave it con form
w ith the sta tem en t fo rm e r ly issu ed b y the R eserve
B a n k . Future rep orts w ill be on th a t basis.
GOLD E XPORTS A N D IM PORTS OCT. 21-OCT. 25, INCLUSIVE
Im p o rts

Ore and base bullion
_ .
Refined bullion and c o in ..
Total

_.

_
_

E x p o r ts

*$4,199,499
__ 11,243,173

$2,462
135

$15,442,672

$2,597

...

D e t a i l o f R e fin e d B u llio n a n d C o in S h ip m e n ts —

Italy
. . .
United Kingdom____ __
_
_
Canada ____
..
._
Venezuela
. . .
___
British I n d i a ..............
...... . .
Hongkong
.
Union of South Africa ____
_ _
Philippine Islands____

$1,464,622
6,160,047
121,739
188,449
752,898
468,576
2,086,842

in g 4 per cents fro m
to 1043^.
In the L o n d o n m o n e y m ark et this w eek there was
a fair in q u iry w h ich was ea sily satisfied, w ith call
m on ey against bills at 1 % d ow n to % % .
B ill rates
w ere as follow s: T w o -m o n th s bills 1 3 -1 6 % , th reem on th s bills 1 7 -3 2 % , fo u r-m on th s bills 1 9 -3 2 % ,
an d six-m on th s bills 1 9 -1 6 % .

135
* Chiefly $3,517,993 from Australia.
Gold held under earmark at the Federal Reserve banks was reduced
during the period Oct. 21-25, inclusive, by $31,198,000.

W . H . Fillmore & Co.

BENJ. D. BARTLETT & C .
O

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CINCINNATI

ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD

2870

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—

HAYDEN,

MILLER

8t

ESTABLISHED

Nov. 4, 1939

COMPANY

1903

INVESTMENT SECURITIES
UNION

COMMERCE

CLEVELAND,
M E M B E R S

C L E V E L A N D

Referring to day-to-day rates sterling exchange in
the New York free market on Saturday last was dull
and slightly up from previous close. Bankers’ sight
was $ 3 .9 9 @ $ 4 .0 0 ; cable transfers $ 3 .9 9 )4 @ 4 .0 0 3 4 On M onday sterling was easier in limited trading.
The range was $ 3 .9 9 3 4 @ $ 3 .9 9 3 4 for bankers’ sight
and $ 3 .9 9 2 4 @ $ 3 .9 9 2 4 for cable transfers. On Tues­
day exchange was fractionally firmer in limited trad­
ing.
Bankers’ sight was $ 3 .9 9 3 4 @ $ 3 .9 9 2 4 i cable
transfers $ 3 .9 9 3 4 @ $ 4 .0 0 3 4 On Wednesday the
market continued restricted. The range was S3.9934
@ $ 4 .0 0 for bankers’ sight and $ 3 .9 9 J /£ @ $ 4 .0 0 ^ for
cable transfers. On Thursday sterling was dull but
steady. The range was $ 3 .9 9 ^ @ $ 4 .0 0 for bankers’
sight and $3.9924@ $4,003/8 f ° r cable transfers. On
Friday the market continued narrow, with rates
steady. The range was $ 3 .9 8 2 4 @ $ 3 .9 9 2 4 for bankers’
sight and $ 3 .9 8 3 4 @ $ 4 .0 0 for cable transfers. Closing
quotations on Friday were $3.9824 for demand and
$3.9934 for cable transfers. Commercial sight bills
finished at $3.9724> 60-day bills at $3.9634 > 90-day
bills at $3.9534 > documents for payment (60 days) at
$3.96^4, and seven-day grain bills at $3.9724- Cotton
and grain for payment closed at $ 3 .9734-

Continental and Other Foreign Exchange
R E N C H francs, which are steady in terms of
sterling, have been ruling fractionally easier this
week in terms of the United States dollar. This was
determined largely by the somewhat sasier tone of
sterling in the New York free market. On the whole
fluctuations were narrow and were affected by even
the slightest market sale or demand.

F

BUILDING

OHIO

S T O C K

E X C H A N G E

There has been no important change in the French
fiscal situation since the beginning of the war.
M . Jacques Rueff, Vice-Governor of the Bank of
France, where he heads the new exchange office,
said a few days ago: “ It is our firm desire and we
have given a formal undertaking that exchange con­
trol shall be honest control. W e are anxious that
its application shall not harm French credit and we
are convinced it will n o t.”
The system is based upon respect for acquired
rights and the sanctity of contracts. Nothing ex­
cuses a debtor from lawful debts nor prevents a
foreigner from withdrawing funds which had been
accumulated here before the control was instituted.
The French finance ministry has developed a policy
of financing the war by short-term bonds of from 12
months to 3 years maturities.
A national comittee
of 24 members has been formed for the purpose of
popularizing the bonds. This committee, known as
the Grand Chancellery of the Legion of Honor, is
drawn from representatives of finance, business,
army, churches, law, press, and various scientific
and literary academies.
In addressing the committee a few days ago,
Finance Minister Reynaud pointed out that French
finances are in order and stronger than ever. He
added that capital continues to flow into France
since the war and exchange reserves are higher now
than before the outbreak of hostilities, despite the
huge expenditures which have been made abroad.
He announced his intention to introduce a budget
which,* apart from the military expenditure, will

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Volume 149

ONE HUNDRED—The Commercial & Financial Chronicle— YEARS OLD

2871

Ohio and Michigan

EXCLUSIVELY MUNICIPALS

Municipal Bonds

BRAUN, B0SW 0RTH & CO.

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om
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exceed 65,000,000,000 francs but which will be met
out of revenues.
On Oct. 18 and Oct. 24 and later, Polish, British,
and French official sources asserted that all the gold
of the Bank of Poland, amounting to 70 tons and
valued at approximately £20,000,000 sterling, had
been successfully removed from Warsaw before its
fall and under the personal guidance of the former
finance minister, Colonel Ignace Matuszewski, had
been transferred by truck to Rumania, transshipped
on a Turkish vessel, landed in Syria, and escorted to
France by a French man-of-war. It is now on
deposit with the Bank of France.
The new Polish Cabinet now meeting in Paris
made it clear that not an ounce of this gold will be
used for the Government’s expenses but will form
the reserve for the restored Polish currency in recon­
stituted Poland. The £6,000,000 British credit pro­
vided for Poland at the outbreak of the war and the
600,000,000 francs subscribed by France are, it
would seem, still in effect for the Polish authorities
seated in Paris.
A Reuters dispatch from Helsinki a few days ago
stated that the Finnish Government has strictly
prohibited the export of domestic or foreign currency
or other monetary paper. Holders of foreign cur­
rency worth more than 5,000 Finnish marks are
required to deposit it with the State bank. Travelers
leaving Finland are permitted to take only currency
or monetary paper worth 3,000 markkas.

S. R. LIVINGSTONE & CO.
M em bers

New York Stock Exchange
New York Curb (Associate)
Detroit Stock Exchange

Municipal and Corporation Bonds
Listed and Unlisted Securities

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Chicago

Cincinnati

The London check rate on Paris closed on Friday
at 176-177, against 176-177 on Friday of last week.
In New Y ork sight bills on the French center finished
at 2.2634 and cable transfers at 2.2634> against
2.2634 and 2.2624* Antwerp belgas closed at 16.67
for bankers’ sight bills and at 16.67 fot cable trans­
fers, against 16.65 and 16.65. Italian lire closed at
5.05 for bankers’ sight bills and at 5.05 for cable
transfers, against 5.05 and 5.05. Berlin marks are
not quoted in New York, nor is exchange on Czecho­
slovakia or on Poland. Exchange on Bucharest
closed at 0.7334 (nominal), against 0.7334 (nominal).
Exchange on Finland closed at 2.03 (nominal),
against 2.03 (nominal). Greek exchange closed at
0.74>4 (nominal), against 0.7434 (nominal).
------- ♦-------

X C H A N G E on the countries neutral during the
war of 1914-1918 presents no new features from
those of recent weeks. These units are inclined to
move in sympathy with sterling and since the pound
is held steady by London there is little fluctuation
in the neutral rates. On N ov. 1 leaders of the three
Danish political parties agreed to recommend that
the krona in terms of sterling should not be lowered
from its present level of 20.70 kroner to the pound.
Bankers’ sight on Amsterdam finished on Friday
at 53.11, against 53.09 on Friday of last week; cable
transfers at 53.11, against 53.09; and commercial
sight bills at 53.00, against 53.05. Swiss francs
closed at 22.4334 for checks and at 22.4334 for cable

E

ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD

2872

—

F r a n c is , B

ro.

—

&

Co.

Nov. 4, 1939

Investment Securities

Established 1877

S ti k $ Co.
Investment Securities

SAINT LOUIS
509 0L,V STE

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St. Louis

Members
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transfers, against 22.43 and 22.43.
Copenhagen
checks finished at 19.32 and cable transfers at 19.32,
against 19.31 and 19.31. Checks on Sweden closed
at 23.82 and cable transfers at 23.82, against 23.82
and 23.82; while checks on Norway closed at 22.72
and cable transfers at 22.72, against 22.72 and 22.72.
-----♦----

X C H A N G E on the South American countries is
generally steady and quiet.
Most of these
countries are increasing their buying from the United
States. Brazil has completed arrangements within
the United States of ships, maritime and railway
equipment to the value of more than $11,000,000.
Chile is also buying locomotives and railway equip­
ment in the United States, while in Argentina ex­
change and import restrictions have been r e m o l d
with respect to a large number of United States
products.
Extension of this commerce does not
warrant the assumption that European nations
formerly supplying the South American republics
have permanently lost their markets there.
Argentine paper pesos closed on Friday at 29.78
for bankers’ sight bills and at 29.78 for cable trans­
fers, against 29.78 and 29.78. The unofficial or
free market was 23.50, against 23.60. Brazilian
milreis are quoted at 5.10, against 5.10. Chilean
exchange is quoted at 5.19 (official), against 5.19.
Peru is nominally quoted at 19.00, against 19.00.

E

---- ♦
-----

S T . LOU IS

X C H A N G E on the Far Eastern countries pre­
sents no new features of importance. Reports
from Tokio indicate that a bill will be presented in
the March session of the Japanese Diet which will
increase the fiduciary limit in Japanese note circula­
tion by 500,000,000 yen above the present 2,200,000,000 yen limit. The note issue has already ex­
ceeded the present fiduciary limit. In the last few
days of October the Bank of Japan’s note circulation
rose by 119,000,000 yen to a total of 2,806,000,000
yen. Technically 501,280,000 yen of the circulation
represents the gold reserve of the Bank of Japan, the
fiduciary issue already allowed accounts for an
additional 2,200,000,000 yen.
Closing quotations for yen checks yesterday were
23.45, against 23.45 on Friday of last week. Hong­
kong closed at 25.00, against 25 1-16; Shanghai at
8% , against 8% ; Manila at 49.90, against 49.90;
Singapore at 47% , against 47% ; Bombay at 30.35,
against 30.35; and Calcutta at 30.35, against 30.35.

E

G o ld B u llio n in E u ro p ea n B a n k s

HE following table indicates the amounts of gold
bullion (converted into pounds sterling at the
British statutory rate, 84s. ll%>d. per fine ounce)
in the principal European banks as of respective
dates of most recent statements, reported to us by
special cable yesterday (Friday); comparisons are
shown for the corresponding dates in the previous
four years:

T

WALDHEIM, PLATT & CO.
M em bers

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C h ica go S to ck E xchan ge
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Volume

ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD

149

—

—

2873

B I O R E N & CO.
E s t a b l is h e d 1 8 6 5

Members of New York and Philadelphia Stock Exchanges

PHILADELPHIA, PA.

1508 WALNUT STREET

Banks of—

1939

1938

1937

£
327,722,440
293,728,234
3,005,700
63.667.000
25.232.000
123.420.000
94.075.000
114.928.000
31.972.000
6.537.000
8.205.000

1936

£
327,991,740
293,710,643
2,501,300
87.323.000
25.232.000
108,391,000
98.669.000
78.631.000
26.019.000
6.548.000
6.602.000

£
249,604,429
391,871,164
1,844,250
88.092.000
42.575.000
47.491.000
105,134,000
80.129.000
24.243.000
6.552.000
6.603.000

1935

Netherlands
Nat. B elg..
Switzerland
Sweden____
Denmark _ _
_
N orw ay_

£
*533,409
328,601,513
b3,857,300
c63,667,000
a23,400,000
93.623.000
102,867,000
95.784.000
35.222.000
6.500.000
6.666.000

Total week.
Prev. week.

760,721,222 1,092,492,374 1,061,618,683 1,044,138,843 1,137,155,545
7«2.7*1.325 1,092,001,530 1.062.271.038 1,163,671,595 1,131,502,174

England___
France ___
Germany __

£
196,407,206
575,918,339
3.303.000
90.348.000
43.537.000
47.560.000
98.883.000
46.707.000
21.335.000
6.555.000
6.602.000

* Pursuant to the Currency and Bank Notes Act, 1939, tne Bank of England
statements for March 1, 1939 and since have carried the gold holdings of the Bank
at the market value current as of the statement date. Instead of the statutory pric e
which was formerly the basis of value. On the market price basis (168s. per fine
ounce) the Bank reported holdings of £1,054,992 equivalent, however, to only
about £533,409 at the statutory rate (84s. 11 Hd. per fine ounce), according to
our calculations. In order to make the current figure comparable with former
periods as well as with the figures for other countries in the tabulation, we show
English holdings in the above in statutory pounds
a Amount held Dec. 31, 1938, latest figures available, b Gold holdings of the
Bank of Germany includes "deposits held abroad” and “ reserves in foreign cur­
rencies.” c As of April 30, 1938, latest figure available. Also first report sub­
sequent to Aug. 1, 1936.
The value of gold held by the Bank of France Is presently calculated, in accordance
with the decree of Nov. 13, 1938, at the rate of 27.5 mg. gold, 0.9 fine, equals one
franc; previously and subsequent to July 23, 1937, gold in the Bank was valued at
43 mg. gold, 0.9 fine, per franc; before then and after Sept. 26, 1936, there were
49 mg. to the franc; prior to Sept 26, 1936, 65.5 mg. gold 0.9 fine equaled one franc.
Taking the pound sterling at the rate at which the Bank of England values its gold
holdings (7,9881 gr. gold ll-12ths fine equals £1 sterling), the sterling equivalent
of 296 francs gold in the Bank of France is now Just about £1; when there were 43 mg.
gold to the franc the rate was about 190 francs to the £1; when 49 mg., about 165
rancs per £1; when 65.5 mg., about 125 francs equaled £1.

American Shipping and the Neutrality
Bill
A good deal of hysterical legislation has gone
through the congressional hopper in recent years,

but the peak in excited absurdity seems to have
been at last reached in the current neutrality bill
in the original clauses affecting American shipping
and American foreign trade.
Ever since the W orld W ar we have, as a Nation,
poured out printers’ ink and Government money to
build up a merchant marine against the day when
another major conflict would come. On that day,
it was maintained, we would need a merchant
marine to assure us of essential imports, to keep
our foreign exports moving, and to provide an
auxiliary merchant fleet for our Navy. The day came
on Sept. 3, and the first thing we proposed to do
was to pull in our horns, forego our neutral rights,
abandon the freedom of the seas, and in effect tie
up or scuttle nearly half of the merchant marine
established at such great cost.
Such a proposal is contrary to our long-estab­
lished policy of encouraging the development of
American export business. The clauses applying to
our ships would have so reduced the carrying
capacity of American vessels as to put us at the
economic mercy of the belligerents or the smaller
European neutrals for the necessary ships to carry
our exports. The title-transfer requirements of the
bill will still, even as amended by the Senate, em-

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—

YE A R S OLD

Nov. 4, 1939

BODELL & CO.
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NEW YORK

barrass existing foreign branch office arrangements
of American exporters in Britain and France. The
whole program will contradict and may even stultify
our recently-developed farm export program, with
its newly-introduced subsidies.
The new proposals ran directly counter to our
long-established position in favor of the rights of
neutrals; for they would have thrown overboard
most of our rights under international law and left
the perpetuation of such neutral rights to small
nations like Holland, Denmark, and the Scandi­
navian countries.
Good reason could be shown for Thomas Jeffer­
son’s Embargo Act of 1807, when the United States
was a tiny seacoast Nation whose foreign trade was
caught between the guns of Great Britain and
Napoleon, and when it was argued with some reason

Bonds-

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Incorporated
LOS ANGELES




SAN F R A N C IS C O
N EW Y O R K

P ro vid e n c e , R h o d e Is la n d
NEW HAVEN

that the better part of valor was for the little Amer­
ican Nation to run its ships into port. We are no
longer a little Nation.
In fact, there is a curious contradiction between
the proposed shipping clauses of the neutrality bill
and the recent declaration at Panama that the war­
ring Powers should stay out the Western Hemi­
sphere. Taken literally, that declaration would
mean that German ships might safely ply between
this country and South America. Should a British
destroyer intercept them, and America protest, the
British might logically state that we were vastly
exceeding our rights under international law in so
protesting. Yet under the neutrality bill we would,
instead of exceeding our established rights, be re­
linquishing the major part of them.
The story of the bill throws a sad light on our
legislative intelligence. As first brought in, it
would have prohibited American ships from so
much as entering the ports of any belligerent, which
would have closed to American ships ports of
Africa, India, Australia, the Malay States, Hong­
kong and, of course, Canada, as well as the really
dangerous waters, and would even have stopped the
safe operation of the planes of Pan-American Air­
ways, which normally put in at certain of the
British West Indies.
It was obvious that the original .drafters had no
idea of the extent of their prohibitions. First, an
exemption had to be made for the necessary PanAmerican stops. Then the bill was modified so that
American ships might put in at these remote “ bel-

WISCONSIN
Stocks and Bonds
•
LOEWI & CO.
225 E. Mason Street
MILWAUKEE
A . T . & T . T e le t y p e
M ilw a u k e e 55

T e le p h o n e
D a ly 5392

Volume 149

ONE HUNDRED The
—

Commercial & Financial Chronicle— YE A R S

Ca

D .B

r leto x
IN V E ST M E N T

TELE P H O N E S
- 4 - S I5 6

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OLD

C

2875

o

.

S E C U R IT IE S

D E S M O IN E S B U IL D IN G

,

D

ligerent” ports, though only in ballast or empty.
A mighty outcry from the West Coast promptly
forced the lifting of the embargo on American ships
carrying cargo to Pacific ports, and the Connally
amendment of Oct. 18 changed the bill so that
American ships could carry cargo to all ports ex­
cept those east of 50 degrees longitude and north
of 30 degrees latitude. This would shut off only
Europe, the Mediterranean, and the northwest
coast of Africa to our shipping. Even this amend­
ment, however, was modified, but in a strange and
wonderful manner. For the modification seemed
intended to prevent American ships from plying
any part of the Atlantic Ocean except to South
America. This would have meant, for example, that
the American lines running to Africa could not go
there through the Atlantic, but must go through the
Panama Canal, across the Pacific, and through the
Indian Ocean, or else down the west coast of South
America, through the Strait of Magellan, and
thence across that stretch of southern ocean which,
scarcely ever traversed by mariners, is not yet the
Southern Sea nor yet the Atlantic.
Although this seemed the obvious intent of the
drafters, the amendment was not so worded. It
merely shut American ships out of Atlantic 'ports,
which meant that the American lines plying to
South Africa could sail down through the lower
Atlantic and round the Cape, provided only they
did not put in at any of the African ports on the
Atlantic coast.

e s

Mo

in e s

,I

owa

The bill as passed by the Senate on Oct. 26, not
only shuts out American ships from British and
French ports but prohibits the shipment of Amer­
ican goods to these ports until transferred to the
foreigner.
This prohibition alone, unless amended, will be
sufficient to destroy a good part of the machinery
of the American export business. For it means that
Americans cannot handle their own goods in our
chief export markets, even through branch houses
and distributing agencies there established. Title
must be transferred to foreigners before the goods
leave these shores; and it is certain that when for­
eign commercial handling firms acquire this busi­
ness they will not readily relinquish it when the
war is over.
The same holds for the shipping business which
Americans are bound to lose through the present
clauses in the neutrality bill. It is economically
impossible for them to travel to belligerent ports in
ballast and support their operations on the return
cargoes. The business is bound to go to foreign
shipping lines; and when it once goes to them it
will not easily be regained. The business of operat­
ing ships does not consist simply of carrying car-

In q u iries In v ite d

NORTHWESTERN NATIONAL
INSURANCE COMPANY
OF MILWAUKEE

E S T A B L IS H E D 1904

Edgar, Ricker & Co.
207 East Michigan Street

Milwaukee, Wisconsin




. . . With its background of 64
years of service and cooperation
with business organizations and
individuals . . . this Bank can
be useful to t’hose wishing to
develop their activities in the
Des Moines and Iowa territory.

IOWA-DES MOINES
N A T IO N A L BANK
& TRUST C O M P A N Y
DES M O I N ES

• IOWA

Member Federal Deposit Insurance Corporation

ONE HUNDRED

2876

The Commercial & Financial Chronicle —

—

"1

i

W H EELOC K & C U M M IN S
INCORPO RATED

M unicipal B on ds
i

EQUITABLE

BUILDING

D E S M O IN E S
!
_ _ _

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

■

-

. . --------------------------- 1

goes. It consists of building up goodwill among
shippers; of understanding and filling their
peculiar requirements, and of getting them in the
habit of using one’s regular services. American
shippers are not so intensely patriotic that when
the war is over they will go back to American ships
automatically. They are in fact likely to prove as
independent as the American passengers who in
recent years have spontaneously imposed almost
a boycott on certain American lines because of the
reported boisterousness of American sailing crews.
At the end of the war, when requested to go back to
patronizing American ships, they are likely to reply
that when American ships failed them in an emer­
gency foreign ships came to their help, and they
would prefer to continue shipping in the foreign
vessels.
The American shipping lines directly affected by
the bill will have the unpleasant choice of selling
their ships to foreigners, laying them up, or trans­
ferring them to other lines. Sale of American ships
to foreign flags might naturally be blocked by the
Maritime Commission as directly opposed to the
whole intent of our maritime program hitherto.
John Lowry, President, the Merchants’
Association of New York, Felicitates
the Chronicle
I am informed that on November 4 The Commer­
cial and Financial Chronicle will celebrate its One
Hundredth Anniversary. In this world of rapid
changes your entrance into
the relatively small group of
New York enterprises that
have passed the century mark
is an achievement in which
you may well take extreme
pride.
The Commercial and Finan­
cial Chronicle has existed be­
cause it has filled, and filled
well, a distinct need of the
financial and business com­
munity. Your success proves
that sincerity of purpose and
consistency in the perform­
ance of a necessary service
have their rewards.
I congratulate The Commerical and Financial Chronicle on its birthday
and I hope that, as it enters its 101st year, it will
be the beginning of another century of success.




Y E A R S OLD

N ov. 4, 1939

Drydocking the ships would run up high costs for
maintenance and depreciation, and just about put a
heartsick end to the American maritime program.
Transferring the ships to other runs would be
almost futile, for there are no other runs not fully
preempted. Great Britain is building ships as fast
or faster than they are being sunk, and will give up
few or none of her shipping operations, being eager
to accumulate foreign exchange, while the neutral
countries, particularly Italy, are girding themselves
to take full advantage of our cowardice. By the
time the silly season was over in American neu­
trality legislation there would be no place for the
displaced American foreign-line ships except in the
protected coastwise shipping business. As a result
no one is more concerned about the pending legisla­
tion than the American coastwise shipping inter­
ests. Their situation is already bad, because of the
age of their ships, as was frankly indicated in the
survey by the Maritime Commission this spring,
and they already have a big enough fight on their
hands in the pending Wheeler-Truman bill to put
coastwise shipping under the Interstate Commerce
Commission.
As the bill now stands, our North Atlantic ship­
ping lines face extinction, and with them would go
the money the Government has sunk in them by
subsidy, for probably 30% of our mercantile marine,
even after this week’s amendments, would in effect
be swept off the sea as effectively as if by German
submarine or British patrol.

California’s Danger
A year ago the voters of California rejected the
proposal to pay “ Thirty Dollars every Thursday” to
the so-called “ senior citizens” of that State, but the
margin against it was so dangerously small as to
invite continuance of the discussion. Now the il­
lusory scheme, still bearing the fragrant title of
the “ Ham and Eggs for Everybody” plan, and only
slightly revamped, is again before the voters. Should
the verdict of next Tuesday’s election be in favor of
its adoption, the threat of disaster to California
will be measureless, and the danger to the finances
of that great Commonwealth can be averted only
by judicial intervention upon the ground that the
course of State action called for by the plan con­
travenes the monetary provisions of the Federal
Constitution. There would seem to be ample ground
for such intervention, but it must be hoped it will
be unnecessary. Nevertheless, should the operation
of the plan be attempted, there can be nothing but
a period of extreme confusion and disorder in all
the affairs of the State government, with extensive
injuries to all forms of industry within the State.
Briefly, the pension plan is to pay thirty dollars
a week to every citizen of California who is over
fifty years of age and is qualified to receive the
gratuity by having no gainful employment or aban­
doning any such employment that he has. The pay­
ments are to be made in warrants, to be issued by
the State in denominations of $1.00 and receivable
by the State for all taxes and other obligations pay­
able into its Treasury. Otherwise, these warrants
are not to be made legal tender, but their redemp­
tion is to be provided for out of the proceeds of a
tax on their possession, payment of which is to be
signified, and insured, by affixing a two-cent stamp

Volume

149

ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD
—

on eacli one dollar warrant during every week that
it is outstanding. Unless these stamps are attached
with regularity until they aggregate $1.04 on each
$1.00 warrant, the paper becomes worthless in the
hands of its possessors. It is believed that the
present number of Californians who would receive
gratuities under this plan is not less than 800,000.
On that basis, the annual amount to be distributed
among recipients of the State’s bounty would be
$1,248,000,000, and the amount to be raised by taxa­
tion would be four per cent greater or $1,297,920,000,
the additional $49,920,000 being supposed to provide
for the expenses of administration. Thus, the
scheme discloses itself merely as a device to take
from one group an enormous aggregate by taxation
— fully six times all taxes hitherto paid in Cali­
fornia to the State government in any year—and to
apportion most of the fund so obtained among the
members of a more favored group, its personnel
determined by considerations of age and unemploy­
ment.
Judgment of its merit, at this point, would seem
to depend upon the willingness to accept a plan of
taxation frankly intended to divert wealth or in­
come from one group in a community to another
group, upon the ability of the one group to endure
forcible diminution of its resources, if such a pur­
pose could be tolerated in any case, and the relative
benefits, if any, to the recipient group. Such a judg­
ment would require clear delimitation of the respec­
tive groups and detailed information as to their
composition, probably in no way to be acquired
except by experience. But the experience can never
be acquired under this or any similar plan, for the
plan will not operate. Any attempt to operate under
it will inevitably produce muddling upon a gigantic
scale, widespread confusion, and loss. The warrants
to be issued to the selected group composed of the
elderly and idle, would be completely valueless ex­
cept in the extent in which they became a circulat­
ing medium accepted in exchange as the equivalent
of money. Although not even nominally money,
and their acceptance compelled only when they
should be tendered in payment of obligations to the
State government, the advocates of the plan allege
that they would be widely accepted in trade, and
there is some ground for anticipating that, at the
beginning, there would be considerable usage of that
character. But they would be, from the very first,
under suspicion, and it is indubitable that such sus­
picion would increase rapidly with practical experi­
ence. Indeed, the stamp tax upon their possession
would be notice to any holder that their value would
evaporate with rapidity if they continued in his
possession. An annual tax exceeding their face
value, to be collected in fifty-two weekly instalments
and to be evidenced by stamps essential to their
validity would, in effect, make them worthless if
retained and amount to an imperative direction
immediately to pass them along to another holder
equally aware of their dwindling, or absolutely non­
existent, merit, and similarly unwilling to hold them
save during the briefest possible period.
Here exists the very essence of boundless infla­
tion, something without intrinsic value, temporarily
utilized for payments in exchange, distrusted by
those who use it, every possessor urged by fear that
suddenly no one will take it in exchange for any
commodity, and therefore passionately eager to get



2877

—

C m e c a d N v a n o th U ite S te
o mr e n a ig tio f e n d ta s
An abstract of the last official Annual
Statement of the Commerce and Navigation
of the United States for the year ending
ending Sept. 30, 1838:
IM P O R T S
T o t a l a m o u n t .. ________
__________ ____ $113,717,404
O f w h ic h im p o r te d in A m e rica n ve sse ls___ 103,0£7,448
In f o r e ig n vessels _____ __
...
10,629,950
EXPORTS
T o t a l a m o u n t _______________________________ $108,486,616
O f w h ic h w ere d o m e s tic p r o d u c e _ _
.
96,033,821
F o re ig n p r o d u c e _________________ ._
___
12,452,795
D o m e s tic A r tic le s :
E x p o rte d in A m e r ic a n v e s s e ls . ____
..
79,855,599
E x p o rte d in f o r e ig n ve sse ls_______________
16,178,222
F o re ig n A rtic le s :
9,964,200
E x p o rte d in A m e rica n vessels ---------------E x p o rte d in f o r e ig n v e s s e ls ___ __ ______ __
2,488,595
N A V IG A T IO N
A m e rica n s h ip p in g e n te r e d t h e p o rts o f th e
U n ite d S ta te s fo r th e yea r e n d in g S e p te m ­
b e r 30, 1838
................ .
. . . .t o n s . 1,302,974
D it t o c le a re d fro m d it t o
________ __________
1,408,761
F o re ig n s h ip p in g e n t e r e d d u r in g sam e p e r io d
592,110
D it t o cle a re d fr o m d i t t o . .
___. . . . .
604,166
R e g iste re d t o n n a g e , as c o r r e c t e d S e p t. 30,
1838
_______ __________________
822,591
E n ro lle d a n d lic e n s e d _______ __
____________ 1,041,105
131,102
F is h in g vessels__________________________________
T o t a l t o n s ____________________________________
E m p lo y e d in t h e W h a le F is h e r y _____________

1,993,798
129,629

S h ip p in g b u ilt in t h e U n ite d S ta te s d u r in g t h e y e a r
e n d in g S e p t. 30, 1838:
R e g is t e r e d __________________ t o n s . 41,359
E n r o lle d ___________________________
71,275
T ons

_ _____________

.

. 113,134

The imports of the previous year, ending
30th of September, 1837, amounted to
$140,989,217, and the exports to $117,419,376.
It will be observed that while the imports of
1837-38 are less by $27,000,000 than in 1836-37
the exports are less by only $9,000,000 more.
This looks like getting out of debt. The
tonnage of American shipping which en­
tered in 1837-38 is greater than in 1836-37 by
3,254 tons, while the foreign tonnage is less
by 173,593 tons. This, again, is a favorable
indication. The actual tonnage owned in
the United States has increased within the
year from 1,896,685 tons to 1,994,798, or
98,113 tons. Rather less tonnage was built
in 1837-38 than in 1836-37.
HUNT’S MERCHANTS’ MAGAZINE,
July, 1839

O E -T E O N E SE U IT S
VR H-C U T R C R IE
•
Kobbe, Gearhart & Parsly
INCORPORATED

45 N A S S A U S T R E E T , N EW Y O R K
Telephone
Cortlandt 7-0100

A. T . & T. Teletype
New York 1-576

D ir e c t P riva te W ir e to C hicago

2878

ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD
—

rid of it forthwith, taking anything of real or pre­
sumed value at any price, however extravagant. It
may very well be doubted whether, for more than a
very brief moment, the proposed “ ham and eggs
money” of California, in the hands of the selected
recipients of the State’s gratuities, would suffice to
buy salt to savor the food, and it is more than cer­
tain that it would soon cease to have value in ex­
change equivalent to the meat or the eggs. No
dealer could be obliged to accept it for any goods,
and after a time of rapid marking up of prices and
manipulation, none would take it at any discount
or on any terms. The worthless warrants would
become a drug on the market; their value to the
recipients of an intended bounty would be soon re­
duced to nothing. The misguided citizenship would
encounter a new disappointment, and have a new
ground for discontent with their government.
Meanwhile, one function, and one function only
of the absurdly devised warrants would continue in
lively operation. Worthless for any other purpose,
the State would have to accept them whenever ten­
dered in payment of taxes or anything else due to its
Treasury. Anyone owing anything to the State, or
able in any way to arrange such an obligation, ob­
taining anything of even the slightest value in ex­
change, would be able to acquire these warrants far
below the face values at which they would have to
be accepted by the Treasury. The State would cease
to receive any of its resources in real money and its

Process of Railway Consolidation
Much has been said of the absorption of
other lines by the Pennsylvania Railroad
Company; it seems to be outdone by the re­
cent combination made in Ohio, of which as
yet very little has thus far been said here,
most probably for the same reason that the
great struggles at the West have made less
noise in the world than the battles in Vir­
ginia— that is, distance from the seaboard.
One of our exchanges states briefly the scope
of this consolidation in the following terms:
“ The combination includes both routes
leading out of Cincinnati via Zenia and Dayton, which are practically one interest,
reaching, via Columbus, to Cleveland; the
Bellefontaine line from Indianapolis to
Crestline; the Pittsburg Fort Wayne &
Chicago Railroad, from Crestline to Pitts­
burg; the Ohio Central Railroad from
Columbus to Bellaire; and the Pittsburg,
Columbus & Cincinnati Railroad, from
Newark to Steubenville; also the Lake Shore
road from Cleveland to Erie City.
“ In other words, the combination extends
from Cincinnati to Cleveland, and from this
‘base line’ eastward along the lake shore,
eastward to the Ohio River at Steubenville
and Bellaire, and westward from Crestline
to Indianapolis, comprising in all about
1,100 miles of road.
“ The basis of this stupendous compact is
a perpetual contract between the Little
Miami and Columbus & Zenia Railroad com­
panies of the first part, and the Cleveland
Columbus & Cincinnati Railroad Company
of the second part, which contract is to go
into effect June 1, 1863.”
HUNT’S MERCHANTS’ MAGAZINE,
June, 1863




— -

N ov. 4, 1939

Treasury would quickly be denuded of everything
of real value. It would not have the right to re-issue
the warrants or in any manner to utilize them in
the payment of its own expenses, beyond possibly
some portion of the wages or salaries of its own
employees, who would to that extent be forcibly
deprived of part of their legitimate earnings. Hence,
the insolvency of the government of the Common­
wealth would be complete and immediate. From
this debacle there could be no relief save by repeal
of the laws that led to the disaster and the slow
and painful process of retrenchment.
From that peril may the action of the voters next
Tuesday deliver the people of California!

Arthur Thompson & Co.
Specialists in United States G overnm ent Securities

52 WILLIAM ST., NEW YORK CITY
Han-2-3950

Teletype NY-1-2670

The Course of the Bond Market
The upward trend of bond prices has continued this week,
particularly in high grades, the Aaa’s now having recovered
about 70% of their decline since the middle of August.
Uniform strength has not been the rule, however, as United
States Governments moved up a little and then declined,
and lower-grade rails lost ground.
High-grade railroad bonds have moved fractionally
higher. Atchison gen. 4s, 1995, were up % at 105% ; Penn­
sylvania 4%s, 1960, gained % to 11714. Medium-grade and
speculative rails registered small losses. Southern Pacific
4s, 1955, dropped 1% to 6 7 % ; Kansas City Southern 3s,
1950, at 65 were off 1. Central Railroad of New Jersey,
controlled by Reading Co., requested the Federal Court’s
sanction to reorganize under the Bankruptcy Act. The road
claims to have been forced by liability for $11,650,000 unpaid
taxes due the State of New Jersey. The equipment trust
certificates market has been fairly active during the week,
$1,200,000 Wheeling & Lake Erie 2%>s and $2,025,000 Louis­
ville & Nashville 2% s were sold at 103.9 and 104.29, respec­
tively.
Although enthusiasm for high-grade utilities diminished
somewhat on Thursday, demand during the earlier part
of the week was steady, causing a rising trend in prices.
American Tel. & Tel. 3% s, 1961; New York Steam 3% s,
1963, and Atlantic City Electric 3% s, 1964, reached new
highs for the current move. Among better medium grades,
California Oregon Power 4s, 1966, closed at 101, up 2 for
the week; Ohio Edison 4s, 1967, advanced % to 107% ; Lake
Superior District Power 3%s, 1966, rose 1% to 104. Lower
grades have been irregular. Associated Gas & Electric
debentures have been active on plans for corporate sim­
plification.
Industrial bonds have been generally higher this week,
with steels, oils, foods, amusements and most other groups
showing moderate gains on the average. Exceptions to the
generally upward trend include the General Steel Castings
5%s, 1949, off 2 points at 74; the Studebaker conv. 6s, 1945,
which closed at 94% for a loss of 1% points, and the United
Drug 5s, 1953, which lost 4V8 points at 75%, wiping out
gains of the last few weeks. Sugar bonds strengthened
toward the week-end, but were off compared with a week
ago. Among building materials company obligations, the
Celotex 4%s, 1947, gained 1 point at 84, but the Certain-teed
5%s, 1948, lost % point at 75%.
The reported efforts of the Administration at improving
trade relations with the nations of Latin America have been
responsible for the moderate strength in Brazilian and
other defaulted South American loans. Australian bonds
again found support at substantially higher prices, with
gains being as much as 7 points for Brisbane 5s, 1958. Other
strong features have been Italian and French issuers, but
German Government loans have been depressed. Danish
and Norwegian bonds turned softer after early firmness,
while Japanese issues showed slight gains over last week’s
closing prices.
Moody’s computed bond prices and bond yield averages
are given in the following tables:

ONE HUNDRED

Volume 149

—

M O O D Y 'S B O N D

The Commercial & Financial Chronicle —

M O O D Y 'S B O N D

F R IC K S

(Based on Average Yields)

1939
Dally
Averages

U. S All 120
Govt
Domes­
Bonds
tic
Carp.*

Aaa

Aa

A

Baa

Y IE L D

2879

AVERAGES f

(Based on rndiridual Closing Prices)
120 Domestic
Corporate by Groups*
RR.

P. U.

Ind.

1939
Daily
Averages

All 120
Domes
lie
Carp

120 Domestic Corporate
by Ratings
Aaa

Aa

A

Baa

120 Domestic
Corporate by Groups
RR.

P. V

Ind.

3.28
3.45
3.05
3.20
3.84
4.83
4.46
Nov. 3 ________
3.73
3.30
3.83
3.45
3.21
4.84
4.46
2..............
3.73
3.05
3.31
4.46
3.46
1________
3.22
3.85
4.84
3.74
3.06
3.32
3.48
3.24
4 83
4.46
3.07
3.86
3.75
Oct. 31..............
3.33
3.50
3.09
3.87
4.83
4.45
3 0 ..............
3.76
3.26
3.33
4.83
4.45
3.50
28..............
3.87
3 76
3.09
3.26
3.33
4.45
3.50
4 83
3.08
3.26
3.86
27..............
3.76
3.32
4 83
4.45
3.50
2 6 ..............
3 08
3.25
3.86
3.76
3.32
4.83
4.46
3.50
25________
3.08
3.24
3.87
3.76
3.34
2 4 ..............
3.87
4.46
3.51
3.77
3.10
3.26
4.84
3.37
3.52
4.47
3.29
4.85
23..............
3 78
3.10
3.89
3.53
3.37
4.85
4.48
21..............
3.10
3 30
3.90
3.79
3.53
3.37
4.49
3.90
4.86
2 0 ..............
3.79
3.11
3 29
3.53
3.39
4.49
19..............
3.12
3.30
3.91
4.86
3.80
3.41
3.54
4.49
3.93
18..............
3.14
3.30
4.86
3.81
3.42
3.94
4.50
3.56
17..............
3.33
4.88
3.83
3.15
3.45
4.54
3.57
4.91
16..............
3.16
3.36
3.96
3.85
3.45
4.54
3.59
14..............
3.37
3.97
4.92
3.18
3.86
3.46
4.54
3.60
13-............
3.39
3.97
4.91
3.86
3.18
12.............. Stock Exchar' ge CloR ed
3.47
4.54
11________
4.92
3.60
100.53 85.65 91.20 107.30 109.84
3.40
3.97
3.87
3.19
3.48
4.54
3.62
4.92
3.41
3.98
100.35 85.65 91.20 106.92 109.64
10.............
3 21
3.88
3.63
3.48
4.55
3.99
4.93
100.18 85.52 91.05 106.73 109.64
3.42
9 . - - ........
3.21
3.89
3.51
3.65
99 83 85.52 91 20 106.36 109 05
4.93
4.54
4.01
3.44
7________
3 90
3.22
3.52
4.93
4.55
3.66
4.02
99.66 85.52 91.05 106.17 108.85
6 . ............
3.45
3.91
3.24
3.52
4.01
4.93
4.55
3.66
99.83 85.52 91.05 106.17 108.85
5 - ............
3.91
3.23
3.45
3.52
3.66
4.02
4.93
4.56
99.66 85.52 90.90 106.17 108.85
4..............
3.47
3.91
3.22
3.54
3.69
99.14 85.24 90.90 105.60 108.46
4.05
4.95
4.56
3.49
3 ..............
3.93
3.24
3.56
4.55
3.71
99.14 85.24 91.05 105.22 108.08
2..............
4.95
3.50
4.05
.3.94
3.26
Weekly—
3.57
4.55
3.70
3.49
4.04
4.95
110.38 101.06 114 09 109.44 99.31 85.24 91.05 105.41 107 88
3.94
3.26
Sept. 29________
3.62
4.60
3.75
108.93 100.18 112.86 108.66 98.28 84.55 90.29 104.48 106.92
3.53
5.00
3.32
4.10
22..............
3.99
3.56
4.95
4.54
3.71
3.49
4.05
110.60 101.06 114.09 109.44 99.14 85.24 91.20 105.22 108.08
15..............
3.94
3.26
3.54
4.58
3.66
3.49
5.02
111.26 101.06 114.93 109.44 99.83 84.28 90.59 106.17 108.46
3.22
4.01
8............ .
3.94
3 54
3.40
3.92
5.09
4.61
1 . . 114.04
83.33 90.14 108.46 111.23
1________
3.07
3.32
3.85
102.66 118.16 112.86 101.41
3.27
3.45
4.51
3.85
4.99
3.17
Aug. 2 5 .. 114.85 104.48 120.37 116.00 102.66 84.69 91.66 110 24 113.89
Aug. 25________
3.75
2.97
3.20
4.41
3.39
4.84
18.. 116.63 105.98 121.49 117.29 103.56 86.78 93.21 111 43 115.35
3.11
3.80
1 8 . . . ........
2.92
3.67
1
3.17
3.39
4.81
4.38
3.79
93.69 111.43 116.00
3.64
2.92
3.07
116.79 106.54 121.49 118.16 103.74 87.21
11________
3.18
3.38
4.35
4.79
4. 117 12 106.73 121.72 118.16 103.93 87.49 94.17 111.64 115.78
4 ..............
3.78
3.63
2.91
3.07
3.17
3.38
4 36
4.78
July 28..............
2.91
3.78
July 2 8 .. 117 47 106 73 121.72 118.38 103.93 87.64 94 01 111.64 116.00
3.63
3.06
3.17
3.38
4.38
4.80
2 1 .. 117 07 106.54 121.94 118.38 103.38 87.35 93.69 111.64 116 00
21...............
3.64
3.81
2.90
3.06
3.18
4.42
3.38
4.85
14.. 116.99 106.17 122.17 117.94 103.02 86.64 93.06 111.64 115.78
3.83
14.......... .
2.89
3.66
3.08
3.18
3 40
7__
3.69
4.48
3.88
4.90
7. 116.82 105.60 122.40 117.72 102.12 85.93 92.12 111 23 115.78
2.88
3 09
3.21
4.52
3.43
4.95
91.51 110.63 115.14
3.72
2.91
3 90
June 3 0 ........... .
3.11
June 30. 116.43 105.04 121.72 117.29 101.76 85.24
3.21
3.42
4.46
2.92
3 86
4.90
23.. 117.13 105.41 121.49 117.29 102.48 85.93 92.43 110.83 115.14
23..............
3.11
3.70
3 22
3.43
4 91
4 48
2 93
3.12
3.88
16.. 116.SO 105.22 121.27 117.07 102.12 85.79 92.12 110.63 114.93
16............ .
3.71
3.23
3.42
4.45
4 88
3.85
9 .. 117.34 105.41 121.27 116.86 102 66 86.21
92.59 110.83 114.72
9..............
2 93
3.13
3.70
3 25
3.40
3.84
4.49
2. 117.61 105.22 121.04 116.64 102.84 85.52 91.97 111.23 114.30
2..............
2.94
3.14
4.93
3.71
3.42
3.28
4.55
5.00
May 26.. 116.98 104.48 120.82 116.43 102.12 84.55 91.05 110.83 113.68
May 26________
2.95
3.15
3 88
3.75
3.30
3.44
4.63
3.94
5.08
19.. 116.97 103.56 120.59 115.78 101.06 83.46 89,84 110.43 113.27
19..............
2.96
3.80
3.18
3.29
3.45
5.06
4.58
12.. 116.37 104.11 120.37 116.43 101.76 83.73 90.59 110.24 113.48
12_............
3.15
3.90
3.77
2.97
3.32
4.62
3.47
3.93
5.11
5 .. 115.78 103.56 120.14 115.78 101.23 83.06 89.99 109.84 112.86
5..............
2.98
3.80
3.18
3.35
3.50
4.66
3.97
5.16
Apr. 28.. 115.41 102.84 119.47 115.35 100.53 82.40 89.40 109.24 112.25
Apr. 28..............
3.84
3.20
3.01
3.35
3.51
4.58
21. _ 115.13 102.66 119.03 114.93 100.53 82.40 89 10 109.05 112.25
2 1 .............
3.22
3.97
5.16
3.85
3.03
3.37
3.53
5.22
4.71
14.. 114.76 102.30 119.03 1U.72 100.18 81.61
88.65 108.66 111.84
14..............
3.03
3.99
3.87
3.23
3.34
3.52
5.14
4.66
3.02
6 .. 114.85 102.84 119.25 114.72 100.70 82.66
89.40 108.85 112 45
6________
3.84
3.23
3.96
3.32
4.52
3.50
Mar. 31.. 114.85 103.93 119.25 115.14 102.30 84.83 91.51 109.24 112.86
Mar. 3 1 .............
3.21
3.91
4.98
3.02
3.78
3.30
3.48
4.47
24.. 114.70 104.48 119.92 115.14 102.12 85.79 92.28 109.64 113.27
4.91
24........ .
3.21
3.88
3.75
2.99
3.30
3.48
4.46
4.89
17.. 114.64 104.67 119.92 114.93 102.30 86 07 92.43 100.64 113.27
17..............
3.74
3.22
3.87
2.99
3.28
4.39
3.46
3.84
3.22
4.81
10.. 114.79 105.22 120.37 114.93 102.84 87.21
93.53 110 04 113.68
2.97
10.............
3.71
3.29
4.49
3.48
4.93
3 .. 113.59 104.48 120.14 114.72 102.30 85.52
91.97 109.64 113 48
3.87
3..............
3.75
2.98
3.23
3.30
3.51
4.61
90.14 109.05 113.27
3.94
5.03
Feb. 2 4 .. 113.38 103.38 119.69 114.30 101.06 84,14
Feb. 24..............
3.25
3.81
3.00
3.30
4.62
3.51
5.05
3.25
3.93
17. 113.30 103.38 119.69 114.30 101.23 83.87 89 99 109 05 113.27
17..............
3.00
3.81
3.29
4.64
3.52
3.94
5.07
10.. 113.21 103.20 119.69 114.09 101.06 83.60 89.69 108 85 112.45
1 0 .............
3.82
3.00
3.26
3.29
3.53
4.68
3..............
3.84
3.95
5.10
3.01
3.28
3 .. 113.16 102.84 119.47 113.68 100.88 83.19 89.10 108.66 113.48
3.32
3.57
5.19
4.76
Jan. 27.. 112.59 101.94 119.03 113 07 99.83 82 00 87.93 107.88 113.86
Jan. 27________
3.89
3.03
3.31
4.01
3.29
4.65
3.53
3.94
5.05
20.. 113.18 103.20 119.69 113.48 101 06 83.87 89.55 108.66 113.48
20............ .
3.82
3.00
3.29
3.30
4.57
4.68
13..............
3.97
5.11
13. . 112.93 102 66 119.47 113.07 100.53 83 06 89.10 107.88 113.27
3.85
3.01
3.31
3.32
4.70
3.58
6 ______
3.86
3.07
5 11
6. 112.95 102 48 119.25 112.25 100.53 83 06 88.80 107 69 112.86
3 02
3 35
3.64
High 1980 117 72 106 92 122.40 118.60 104.11
87 78 94.33 111 84 116.21
3.76
High 1939........... 4.00
5.26
4.76
4.10
3.34
3.55
3.16
4.34
3.37
Low 1939______
Low 1939 108.77 100.00 112.45 108.27 98.28 81.09 87.93 104.30 106.54
3.05
3.77
4.77
3.62
2.88
8.76
4.23
6 11
High 1938 112.81 101.76 118.60 111.43 100.18 82.27 88.36 107.11 112.05
High 1938........ .
3.34
3.85
4.68
6.98
4.70
3.36
3.61
4.73
Low 1938 109.58 88.80 112.45 102.66 89.10 62.76 71.15 96.11 104.30
Low 1938_____
3.05
3.39
5.17
3.99
3 90
1 Yr. )»
1 Year 4ao—
3.40
3.67
4.86
4.03
5.28
3.50
Nov. 3, 1938___
Nov .3 '38 112.55 100.35 117.29 109.24 99.48 80.84 86.50 105.98 111.23
3.11
3.98
2 Yrs.Ago
2 Years Ago—
3.58
4.06
4.80
3.23
4.18
5.66
Nov. 3, 1937___
3.51
4.15
Nov .3 '37 108.64 97.45 114.72 109.05 96.94 76.17 87.35 98.97 107.69
* These prices are computed from average yields on the basis of one ‘typical” bond (4% coupon, maturing in 30 years), and do not purport to show either the average
level or the average movement of actual price quotations. They merely serve to illustrate in a more comprehensive way the relative levels and the relative movement of
yield averages, the latter being the truer picture of the bond market.
t The latest complete list of bonds used in computing these indexes was published in the issue of Aug. 19, 1939, page 1086.
Nov. 3 .2 ..
l._
Oct. 3 1.3 0 ..
2 8 ..
2 7 ..
2 6 ..
2 5 ..
2 4 ..
2 3 ..
2 1 ..
20-.
19 .
18..
17..
16..
14- .
13..
12.
11-10..
9 ..
7 ..
6 -5 ..
4 ..
3 ..
2 ..
Weekly—
Sept .29..
2 2..
15..
8 ..

112.62
112.84
113.06
113.14
112.96
112.55
112 52
112.71
11 .19
113.21
113.01
112.96
112.84
112.48
112.62
112.09
111.48
110.95
110.7/
Stock
110.73
110.38
110.51
110 06
109.90
109.97
109.94
109.98
109.57

12C Domestic Corporate *
by Ratings

YEARS OLD

104.85
104.85
104.67
104.48
104.30
104.30
104.30
104.30
104.30
104.11
103.93
103.74
103.74
103.56
103.38
103.02
102.66
102.48
102.48
Exchan
102.30
102.12
101.94
101.76
101.58
101.58
101.58
101.23
101.06

118.60
118.60
118.38
118.16
117.72
117.72
117.94
117.94
117.94
117.50
117.50
117.50
117.29
117 07
116.64
116.43
116.21
115.78
Uo.78
ge Clos
115.57
115.14
115.14
114.93
114.51
114.72
114.93
114.51
114.09

115.35
115.14
114.93
114.51
114.09
114.09
114.09
114.30
114.51
114.09
113.48
113.27
113.48
113.27
113.27
112.66
112.05
111.84
111.43
ed
111.23
111.03
110.83
110.43
110.24
110.24
109.84
109.44
109.24

102.84
103.02
102.66
102.48
102.30
102.30
102.48
102.48
102.30
102.30
101.94
101.76
101.76
101.58
101.23
101.06
100.70
100.53
100.53

86.92
86.78
86.78
86.92
86.92
86.92
86.92
86.92
86.92
86 78
86 64
86.64
86.50
86.50
86.50
86.21
85.79
85.65
86.79

92.43
92.43
92.43
92.43
92.59
92.59
92.59
92.59
92.43
92.43
92.28
92.12
91.97
91.97
91.97
91.81
91.20
91.20
91.20

110.24
110.24
110.04
109.64
109.24
109.24
109.24
109.24
109.24
109.05
108.85
108 66
108.66
108.66
108.46
108.08
107.88
107.49
107.30

113.68
113.27
113.07
112.86
112.66
112.66
112.66
112.86
112.86
112.45
111.84
111.84
111.84
111.43
111.03
110.83
110.24
110.24
110.04

Indications of Business A ctivity
THE STATE OF TRADE— COMMERCIAL EPITOME
3, 1939.
While business activity held at a high level the past week,
trade reports generally showed a slight falling off compared
with the previous week. Merchandise loadings, bituminous
coal production, petroleum runs-to-stills and automotive
activity were lower. Electric output, however, registered
a new all-time high. Advices state that the imminent repeal
of the arms embargo means that besides being free to
accept millions of dollars worth of warplane orders from
representatives of Great Britain and France, American
aircraft manufacturers will be able to send abroad immedi­
ately most of the 880 fighting planes already contracted
for by the Allied governments. Other manufacturers will
be free to accept, subject to the cash-and-carry terms of the
new law, war orders which, including the planes, are ex­
pected to total $1,000,000,000 in the next few weeks. It
is pointed out that Allied war buying programs here are
likely to place greatest emphasis on aircraft and oil for
the time being, following formal repeal of the arms em­
bargo. The placement of such orders, coupled with the
continued heavy buying of machine tools and raw cotton,
are expected to expand final quarter exports to England
and France sharply.
Although steel prices for the first quarter are not yet
known to the consuming trade, an increasing volume of
orders for delivery in that period is being booked. If the
flow of new business continues at the present rate, some
products will be sold out for the first quarter within a
few weeks, according to the “Iron Age." “The delay in




F r i d a y N ig h t, N o v .

announcement of first quarter prices is unexplained, al­
though opinion seems to be growing among buyers that
there may be no horizontal increase but an adjustment of
some prices which are said to be out of line with costs,
for example, on galvanized sheets.” The “Iron Age” says
that a survey reveals that there are no excessive inven­
tories on finished steel. On the contrary, consumers whose
requirements are not yet met seem to outnumber those who
are in a comfortable position. It is stated that with a
continuance of present conditions, the first quarter require­
ments of all of the major consumers of steel probably will
be as large as in the present quarter. The “Iron Age” esti­
mates ingot production for the current week at 93%, one
point above last week’s estimate, placing production at
1.270.000 tons, which is in excess of the all-time weekly
average of 1,193,284 tons in May, 1929. October output
may slightly exceed the record-breaking total of 5,286,246
tons in that month, it is stated. With the probability of
continued high operations for some time to come, scrap
markets have recovered somewhat from their recent weak­
ness. At Chicago there has been a stiffening of prices
which has raised “Iron Age” scrap composite eight cents
to $20.96 after three consecutive weekly declines. The ex­
port market is reported as firmer because of the possibility
of renewed buying by Great Britain and Japan.
Establishing a new all-time record, output of electricity
in the United States for the week ended Oct. 28 was
2.538.779.000 kwh., an increase of 1.8% over the output for
the preceding week and a gain of 14.0% over the output
for the comparable 1938 period, Edison Electric Institute

2880

ONE HUNDRED

—

The Commercial & Financial Chronicle —

reported yesterday. The sharpest percentage gain was reg­
istered by the central industrial area, where power produc­
tion was 17.7% above a year ago, compared with a gain
of 15.8% the week before. For the week ended Oct. 21
total United States power production was 2,493,993 kwli., a
gain of 12.6% over the 1938 period.
Engineering construction awards for the week total $50,040,000, a decrease of 22% from last week and 30% below
the voiume for the corresponding week last year, reports
“Engineering News-Record” yesterday. The current week’s
awards bring 1939 construction to $2,560,354,000, an increase
of 11% from the $2,306,671,000 reported for the initial 44week period last year. Private awards for the week are
6% above the volume for the 1938 week, the eighth consecu­
tive week that they have topped their respective 1938 vol­
ume. They are, however, 45% below a week ago. Public
construction is 41% lower than a year ago, but exceeds
last week by 5% .
Although less than in the preceding month, October tele­
phone installations made by principal subsidiaries of Amer­
ican Telephone & Telegraph Co. included in the Bell Sys­
tem were more than 50% above the total for the same 1938
period. The company yesterday announced a gain of about
86,800 telephones in service last month, compared with a
gain of 93,900 telephones in September, and a gain of
58,400 telephones in October, 1938. For the first 10 months
of 1939 the net gain totaled 614,100 telephones, compared
with 303,500 telephones for the same period in 1938. At
the close of October this year there were about 16,375,000
telephones in the Bell System. New York Telephone Co.
reports a station gain of 5,985 telephones in October against
3,037 telephones a year ago. For the first 10 months the
company registered a gain of 60,576 telephones against a
gain of 13,626 telephones in the same 1938 period.
For the third successive week the volume of check trans­
actions for the country has failed to equal the total for
the comparative 1938 week, Dun & Bradstreet, Inc., reported
yesterday. Bank clearings for the 22 leading cities totaled
$5,845,602,000 for the week ended Nov. 1, compared with
$6,034,543,000 for the corresponding 1938 week, a decline
of 3.1%. Clearings for New York City were $3,597,125,000,
compared with $3,881,585,000 a year ago, a drop of 7.3%.
The turnover for the 21 outside cities was $2,248,477,000
against $2,152,958,000, a rise of 4.4%.
Car loadings of revenue freight for the week ended
Oct. 28 totaled 834,096 cars, according to reports filed by
the railroads with the Association of American Railroads
and made public today. This was a decrease of 27,102 cars
from the preceding week this year, 125,506 cars more than
the corresponding week in 1938 and 66,072 cars over the
same period two years ago. This total was 108.45% of
average loadings for the corresponding week of the 10
preceding years.
Ward’s Automotive Reports, Inc., today estimated pro­
duction of the automobile factories for the current week at
82,690 cars and trucks, which is 5.6%. higher than produc­
tion last week. Production the corresponding week last
year was 75,830 units. The survey predicted a November
output of at least 330,000 units, adding that this minimum
would be augmented by whatever cars Chrysler Corp. may
produce should its labor dispute with the United Automo­
bile Workers (Congress of Industrial Organizations) be
adjusted. Chrysler during this week assembled 960 units,
compared with 1,445 last week and 18,250 a year ago.
The Federal Reserve Board announced today that Amer­
ican industry was rolling out products at the fastest pace
since 1929, and probably woud continue at as rapid a gait
until the end of the year, at least. At the same time, Secre­
tary of Commerce Hopkins said that wholesale trade dur­
ing the first nine months of the year aggregated $15,000,000,000, an increase of $1,000,000,000 over the corresponding
period of 1938. Figures from the Bureau of Domestic and
Foreign Commerce showed that half the wholesale gain
was accounted for in July, August and September. Sep­
tember sales of wholesalers were 16% % higher than in
September, 1938. The Reserve Board tempered its opti­
mism with the comment that “unless there is considerable
increase in the consumption of goods, the accumulation of
inventories, which is now under way, is likely to reach
substantial proportions.”
One of the outstanding features of the weather report
this week is the continued extensive drought in the Mid­
west. Very helpful rains were reported in Central and
Northern States from the Mississippi Valley eastward,
enough, in fact, to bring the October totals to about normal
or somewhat above normal in much of the upper Ohio
Valley. In a large Midwestern area extending from eastern
New Mexico and western Texas northward over the Grent
Plains there has been little moisture. The Southeastern
States also continue very dry. From the northern Rocky
Mountains westward timely and helpful precipitation,
mostly in the form of snow, occurred, while the outlook
in the Great Basin is still generally favorable. Frost in
California killed some tender truck crops, and there was
some freeze damage to late gardens in the south-central por­
tions of Eastern areas, but in general there was no wide­
spread harm from low temperatures. Seasonal farm work
made good progress rather generally. In the New York
City area the weather has been generally fine and cool
during the past week.




YE A R S OLD

N ov. 4, 1939

Fair and colder weather prevailed today, with tempera­
tures ranging from 36 degrees to 48 degrees. The forecast
for tonight is for clear weather with diminishing northerly
winds and heavy frost. Saturday, increasing cloudiness
and slowly rising temperatures, followed by probably fair
and warmer weather on Sunday.
Overnight at Boston it was 36 to 57 degrees; Baltimore,
35 to 61; Pittsburgh, 33 to 46; Portland, Me., 34 to 53;
Chicago, 35 to 42; Cincinnati, 26 to 48; Cleveland, 35 to 42;
Detroit, 25 to 42; Milwaukee, 34 to 40; Charleston, 41 to 70;
Savannah, 43 to 68; Dallas, 39 to 69; Kansas City, Mo.,
22 to 40; Springfield, 111., 22 to 44; Oklahoma City, 23 to
41; Salt Lake City, 36 to 64, and Seattle, 41 to 58.

Moody’s Commodity Index Lower
Moody’s Daily Commodity Index declined from 164.5 a
week ago to 163.1 this Friday. The principal individual
changes were the drop in prices of hides and sugar, and the
advance in wheat.
The movement of the index is as follows:
Fri.,
Sat.,
M on.,
Tues.,
W ed.,
Thurs.
Fri.,

Oct. 27_______ _______ 164.5
Oct. 28._ _ _______ 183.9
_
Oct. 30_______ _______ 164.2
Oct. 31 _____ _______ 163.8
N ov. 1_____ _______ 163.4
N ov. 2 ______ _______ 163.3
N ov. 3 - - - -- _______ 163.1

Two weeks ago, Oct. 20___ ...1 6 7 .2
Month ago, Oct. 3 - ______ ...1 6 7 .3
Year ago, N ov. 3 . _______ ...1 4 3 .5
1938 High— Jan. 10_______ --.1 5 2 .9
Low— June 1 _ ______ ...1 3 0 .1
1939 High— Sept. 22______ ...1 7 2 .8
Low— Aug. 15_______ .-.1 3 8 .4

Truck Loadings Reach Record Peak in September Ameri.
can Trucking Associations’ Survey Discloses
Stimulated by improved business conditions, movement
of revenue freight by motor trucks reached a new peak in
September, according to a monthly survey prepared and re­
leased on Oct. 29 by the American Trucking Associations,
Inc. The survey, based on comparable reports received
from 210 motor carriers in 39 States, revealed that truck
loadings in September were heavier than in any single month
since Jan., 1937, when computation of national averages
was undertaken. September loadings were 6 .5 % over
August of this year, and 2 8 .2 % above the figure for Sep­
tember a year ago. The survey further showed:
The 210 reporting carriers transported 1,110,959 tons of freight last
month, as against 1,043,332 tons in August and 886,334 tons in Septem­
ber, 1938.
The September figures represent an increase o f 43.6% over the 1936
monthly average of the reporting carriers. The American Trucking Asso­
ciations’ truck loadings index figure for Sept., 1939, computed by taking
the 1936 monthly average to represent 100%, was 143.56. This compared
with an index figure of 126.02 for August of this year, and 106.84 for Sept.,
1938.
Despite the fact that September tonnages are only representative o f
four weeks’ business as compared to five weeks’ in August, and that a few
carriers reported decreases occasioned by unexpected suspension o f opera­
tions due to labor troubles, the majority of haulers reporting increases
attributed the improvement to a general upswing in business.
General merchandise, accounting for a little more than 76% o f the total
tonnage reported for September, showed an increase o f 8.6% over the pre­
vious month, and a 29% increase over Sept., 1938.
Petroleum products represented 12% of the total tonnage reported, while
showing 6.2% decrease under Aug., 1939 reported increases o f 22.4% over
September o f last year.
Due largely to deliveries o f new models, transportation of automobiles
in September increased 55.0% over the previous month. The current
figure, however, was 134.8% ahead of Sept., 1938, due to factory shut­
downs during that month.
Movement of iron and steel showed increases o f 29.3% over August, and
51.3% over the corresponding month last year. For the first time since
Jan., 1938, traffic falling within this classification showed an increase over
the 1936 monthly average, the increase being 5% .
Included in the total tonnage reported were figures on special and sea­
sonal movement o f tobacco, textile products and household goods. These
groups reported a decrease of 12% under August and a 1.4% increase
above Sept., 1938.

Revenue Freight Car Loadings in Week Ended Oct. 28
Total 834,096 Cars
Loading of revenue freight for the week ended Oct. 28
totaled 834,096 cars, the Association of American Railroads
announced on Nov. 2. This was an increase of 125,506 cars
or 17.7% above the corresponding week in 1938 and an in­
crease of 66,072 cars or 8.6% above the same week in 1937.
Loading of revenue freight for the week of Oct. 28 was a
decrease of 27,102 cars or 3.1% below the preceding week.
The Association further reported:
Miscellaneous freight loading totaled 337,971 cars, a decrease of 13,570
cars below the preceding week, but an increase of 53,207 cars above the
corresponding week in 1938.
Loading of merchandise less than carload lot freight totaled 159,348
cars, a decrease of 951 cars below the preceding week, but an increase of
451 cars above the corresponding week in 1938.
Coal loading amounted to 164,868 cars, a decrease of 4,945 cars below
the preceding week, but an increase of 28,734 cars above the corresponding
week in 1938.
Grain and grain products loading totaled 40,232 cars, a decrease of
4,346 cars below the preceding week, and a decrease of 6,669 cars below
the corresponding week in 1938. In the Western Districts alone, grain
and grain products loading for the week of Oct. 28, totaled 23,305 cars, a
decrease of 1,674 ears below the preceding week, and a decrease of 6,689
cars below the corresponding week in 1938.

Volume 149

ONE HUNDRED—The

Commercial & Financial Chronicle— Y E A R S

Live stock loading amounted to 20,410 cars, a decrease of 1,171 cars
below the preceding week, and a decrease of 643 cars below the corre­
sponding week in 1938. In the Western Districts alone, loading of live
stock for the week of Oct. 28 totaled 16,816 cars, a decrease of 602 cars
below the preceding week, and a decrease of 512 cars below the corre­
sponding week in 1938.
Forest products loading totaled 37,529 cars, a decrease of 1,702 cars
below the preceding week, but an increase of 7,493 cars above the corre­
sponding week in 1938.
Ore loading amounted to 62,063 cars, a decrease of 470 cars below the
preceding week, but an increase of 37,454 cars above the corresponding
Week in 1938.
Coke loading amounted to 11,675 cars, an increase of 53 cars above the
preceding week, and an increase of 5,479 cars above the corresponding week
in 1938.
All districts except the Centralwestem, reported increases compared
with the corresponding week in 1938. All districts, except the Centralwestern and Southwestern, reported increases compared with the corre­
sponding week in 1937.
1939
Four weeks in January _ Four weeks in February _
Four weeks in March___
Five weeks in April____
Four weeks in M ay_____
Four weeks in June_____
Five weeks in July______
Four weeks in August___
Five weeks in September
Week ended Oct. 7 ____
Week ended Oct. 14____
Week ended Oct. 21____
Week ended Oct. 28____
Total________________

1938

2,302.464
2,297,388
2,390,412
2.832,248
2,371,893
2,483,189
3.214,554
2,689,161
3,844,358
834,694
844.955
861,198
S34.096

2,256,717
2,155,536
2,222,939
2,649,960
2,185.822
2,170,778
2,861,821
2,392,071
3,243,511
702,61o
726,142
705,284
708,590

2,71i,449
2,763,457
2,986,166
3.712,906
3,098,632
2,962,219
3,794.249
3.100,590
4,013.282
812,258
806,095
770,156
768.024

1937

27 800.610

24.981.787

32,302,483

The first 18 major railroads to report for the week ended
Oct. 28, 1939, loaded a total of 386,377 cars of revenue freight
on their own lines, compared with 394,734 ears in the pre­
ceding week and 335,230 cars in the seven days ended Oct.
29, 1938. A comparative table follows:

OLD

2881

REVENUE FREIGHT LOADED AND RECEIVED FROM
(Number of Cars)

Received fr o m Connections
W e ek s Ended —

Loaded on Own L in es
W e ek s E nded —

28
1939

Oct.

23,673
37,245
30,003
19,204
21,865
16,998
3,352
1,718
4,579
16,552
44,242
6,954
28,745
77,353
6,907
7,625
33,004
6,358

Atchison Topeka & Santa Fe Ry_
Baltimore & Ohio R R --------- -----Chesapeake & Ohio R y -------------Chicago Burlington & Quincy R R .
Chicago Milw. St Paul & Pac. Ry
Chicago & North Western R y __
Gulf Coast Lines_______________
International Great Northern RR
Missouri-Kansas-Texas R R _____
Missouri Pacific R R ____________
New York Central Lines_______
New York Chicago & St. Louis Ry
Norfolk & Western R y__________
Pennsylvania R R _______________
Pere Marquette R y ____ . . _
_
Pittsburgh & Lake Erie R R _ __
_
Southern Pacific Lines__________
Wabash R y _____________ ______

21
1939

Oct.

29
1938

Oct.

23,977
37,628
28,920
21,037
23,387
17,370
3,030
1,834
4,851
17,627
45,188
7,550
28,430
78,024
6,765
7,523
34,597
6,996

CONNECTION

25,192
29,010
24,801
19,334
21,938
16,418
3,361
2,003
4,550
15,640
37,314
5,436
23,704
57,203
5,789
5,329
32,441
5,767

28
1939

Oct.

21
1939

Oct.

7,211
19,345
12,921
10,287
9,591
12,368
1,521
2,181
2,984
10,040
46,675
12,522
5,366
50,507
6,494
7,540
9,744
9,702

6,619
19,520
13,909
9,568
9,124
12,485
1,524
2,231
2,953
9,907
45,588
12,397
5,378
49,553
6,308
7,672
9,239
9,311

29
1938

Oct.

6,969
15,459
10,103
8,591
7,843
10,625
1,316
2,082
2,642
9,169
39,708
9,863
4,633
38,393
5,184
5,895
8,768
8,323

386,377 394,734 335,230 233,286 236,999 195,566

Total_______________________

TOTAL LOADINGS AND RECEIPTS FROM CONNECTIONS
(Number of Cars)
W e ek s E nded —-

28, 1939

Oct.

Oct.

21, 1939

Oct.

29, 1938

Not available
37,267
14,640

Chicago Rock Island & Pacific___
Illinois Central System__________
St. Louis-San Francisco R y _____

28,389
40,442
15,494

Not available
34,841
13,512

51,907

84,325

48,353

T o t a l .............. ......... ..................

In the following we undertake to show also the loadings
for separate roads and systems for the week ended Oct. 21,
1939. During this period 105 roads showed increases when
compared with the same week last year.

REVENUE FREIGHT LOADED AND RECEIVED FROM CONNECTIONS (NUMBER OF CARS)—WEEK ENDED OCT. 21

1939

Eastern District—

Total Loads Received
fr o m Connections

Total Revenue
Freight Loaded

Railroads

1938

1937

1939

1938

Ann Arbor___________________
Bangor & Aroostook__ _______
Boston & Maine_ __________
_
Chicago Indianapolis & Louisv.
Central Indiana______________
Central V e rm o n t-.__________
Delaware & Hudson........ . . .
Delaware Lackawanna & West
Detroit & Mackinac............ .....
Detroit Toledo & Ironton_____
Detroit & Toledo Shore Line .
Erie________________________
Grand Trunk Western________
Lehigh & Hudson River_______
Lehigh & New England______
Lehigh Valley_______________
Maine Central______________
Monongahela.............. ...............
Montour_____________________
New York Central Lines______
N. Y. N. H. & Hartford_____
New York Ontario & Western.
N. Y. Chicago & St. Louis..
Pittsburgh & Lake Erie_______
Pere Marquette____ _________
Pittsburgh & Shawmut_______
Pittsburgh Shawmut & North.
Pittsburgh & West Virginia___
Rutland_____________________
Wabash_______ _____________
Wheeling & Lake Erie________

748
1,319
8,665
1,763
38
1,344
6,002
11,143
631
2,741
344
15,134
5,030
181
2,038
10,012
2,861
5,598
2,275
45,188
10,759
1,380
7,550
7,904
6,765
701
443
1,383
728
6,996
5,118

747
957
7,368
1,749
39
1,312
5,069
8,839
628
1,981
312
12,586
4,405
191
1,526
8,666
2,563
3,755
2,143
37,046
9,822
1,474
5,768
5,178
5,805
322
360
969
564
5,826
3,347

637
1,619
8,091
1,604
24
1,497
5,369
11,056
499
2,112
334
13,248
5,198
191
1,828
9,574
3,105
4,388
2,273
43,042
10,301
1,462
4,994
5,073
6,613
432
385
1,104
648
5,724
4,406

1,333
214
11,995
2,583
56
2,374
9,431
7,828
153
1,459
3,136
15,301
7,844
2,139
1,692
7,905
2,462
242
36
46,675
33,371
1,743
12,522
7,159
6,494
47
287
2,031
1,045
9,702
4,017

1,061
230
9,860
1,867
59
1,921
7,277
6,465
145
938
2,753
12,502
6,865
1,909
1,103
6,393
2,026
242
34
40,579
11,669
1,769
9,536
5,502
5,275
26
203
1,368
964
8,090
2,872

Total______________________

172,782

141,317

156,831

183,276

151,503

Alleghany District—
Akron Canton & Youngstown. _
Baltimore & Ohio___________
Bessemer & Lake Erie____ __
Buffalo Creek & G a u le y .___
Cambria & Indiana _________
Central R R. of New Jersey___
Cornwall __________________
Cumberland & Pennsylvania.
Ligonier Valley______________
Long Island______ ____ _______
Penn-Reading Seashore Lines..
Pennsylvania System_________
Reading Co_________________
Union (Pittsburgh) _____ ____
West Virginia N orthern_____
Western Maryland__________

562
37,628
5,721
347
1,730
7,775
580
296
145
668
1,420
78,024
15,159
18,146
44
4,400

460
28,804
3.687
354
1,282
5,682
600
236
146
864
1,177
57,782
12,323
7,093
38
3,249

436
32,065
3,818
354
1,521
6,908
516
277
148
019
1,332
67,131
14,466
10,758
57
4,016

967
19,345
2,764
6
34
12,877
53
32
43
2,951
1,755
50,507
19,408
5,972
0
6,921

728
15,730
1,607
6
19
11,174
69
35
16
2,829
1,356
38,261
16,542
2,562
0
5,750

,172,645

123,777

144,420

123,635

96,684

28,920
28,430
5,004

23,942
22,934
4,363

25,372
25,206
4,918

12,921
5,366
1,177

10,041
4,526
1,101

62,354

51,239

55,496

19,464

15,668

337
880
613
10,186
4,293
428
1,504
479
226
573
58
1,047
356
1,933
27,967
26,022
175
168

257
826
667
8,590
4,230
398
1,235
401
171
586
48
1,026
376
1,760
24,018
21,209
203
157

194
741
610
9,835
3,570
442
1,382
494
172
576
52
861
424
1,926
24,658
22.635
200
205

216
1,688
926
5,186
3,249
1,205
2,309
424

176
1,548
870
4,778
2.927
970
1,783
319
622
798
119
1,566
506
1,180
10,278
5,360
421

Total____ _____ __________
Pocahontas District—
Chesapeake & Ohio___________
Norfolk & Western_
_ ____
Virginian_____________ _____
Total_____________________
Southern District—
Alabama Tennessee & Northern
Atl. & W . P.— W. RR. of A la..
Atlanta Birmingham & Coast.
Atlantic Coast Line_________
Central of Georgia____ _______
Charleston & Western Carolina
Clinchfield____________ ______
Columbus & Greenville_______
Durham & Southern--------------Florida East Coast________ . .
Gainsville Midland___________
Georgia____________________
Georgia & Florida----------------Gulf MobUe & Northern_______
Illinois Central System________
LouisvUle & Nashville.. . . .
Macon Dublin & Savannah..
Mississippi Central. ...
N ote — Previous




year’s figures revised.

Previous figures,

385

826
111
1,779
479
1,261
13,133
6,080
642
355

299

Total Revenue
Freight Loaded

Railroads

Total Loads Received
fr o m Connections

1939
Southern District— (C o n cl .)
Mobile & Ohio..
Nashville Chattanooga & St. L.
Norfolk Southern____ . .
Piedmont Northern______
Richmond Fred. & Potomac
Seaboard Air Line.
Southern System
Tennessee Central
Winston-Salem Southbound__
T otal_________ ___
Northwestern District—
Chicago & North Western____
Chicago Great Western.. . .
Chicago Milw. St. P. & Pacific.
Chicago St. P Minn. & Omaha.
Duluth Missabe & I. R
Duluth South Shore & Atlantic.
Elgin Joliet & Eastern. _
Ft. Dodge Des Moines & South.
Great Northern.
Green Bay & Western_
_
Lake Superior* Ishpeming...
Minneapolis & St. Louis.
Minn. St. Paul & S. S. M
Northern Pacific.
Spokane International..
Spokane Portland & Seattle_
_
T otal____________
Central Western District—
Atch. Top. & Santa Fe System.
A lt o n ____
Bingham & Garfield____
Chicago Burlington & Quincy..
Chicago & Illinois Midland___
Chicago Rock Island & Pacific
Chicago & Eastern Illinois_____
Colorado & Southern.
Denver & Rio Grande Western.
Denver & Salt L a k e ... .
Fort Worth & Denver City.
Illinois Terminal_
_
Missouri- Illinois______
Nevada Northern___
North Western Pacific
Peoria & Pekin U n io n .___
Southern Pacific (Pacific)_____
Toledo Peoria & Western.
Union Pacific System..
Utah__ ______
Western P a cific..
T otal__________ __

1938

1937

1939

1938

1,938
3,192
1,568
564
407
9,112
24,458
407
164

1,833
3,013
1,275
542
365
8,843
21,229
420
179

2,243
2,728
1,455
386
361
9,195
21,643
444
204

2,417
2,724
1,565
1,366
4,123
4,971
17,305
830
1,032

2,470
2,446
1,183
1,298
3,379
4,602
14,776
732
867

119,055

103,857

107,630

76,587

66,273

21,544
2,988
22,862
4,508
16,125
977
8,749
532
26,390
787
3,494
2,450
8,315
13,923
238
1,855

18,223
2,949
21,453
3,787
7,094
794
6,047
644
15,009
788
1,195
2,529
6,569
11,735
230
1,976

19,102
2,689
21,175
4,221
7,730
896
5,991
476
21,396
709
1,854
1,960
7,215
13,354
317
1,696

12,368
3,403
9,591
4,093
222
461
8,183
184
3,161
637
82
2,420
2,663
4,330
346
1,524

10,785
3,076
7,769
3,286
155
386
4,341
157
2,746
545
76
2,016
2,214
3,526
309
1,333

135,737

101,022

110,781

53,668

42,720

23,977
3,747
420
21,037
2,401
13,876
3,419
1,634
5,797
929
1,430
2,183
1,175
1,229
901
27
27,994
491
23,551
582
1,839

24,204
3,175
323
19,013
1,706
13,760
2,757
1,825
5,391
772
1,560
1,953
438
1,528
875
24
26,223
493
21,164
523
1,860

26,313
3,413
418
19,907
1,933
13,923
3,002
1,501
5,391
1,047
1,449
1,933
550
1,564
1,017
116
25,785
398
21,829
691
1,789

7,211
2,796
60
10,287
868
10,248
2,951
1,721
3,968
20
1,282
1,683
356
121
0
5,788
1,319
10,947
15
3,120

6,543
2,190
86
8,516
644
8,320
2,546
1,456
3,264
30
1,162
1,145
293
111
385
0
5,710
1,234
9,773
9
2,730

138.639

129,567

133,969

65,266

56,147

146
0
3,030
1,834
338
2,280
2,135

179
235
2,940
2,005
228
1,900
1,943

425
0
1,521
2,181
1,120
2,075
1,973

534
237
1,449
2,200
1,192
1,684
1,230

1,019
305
347
2,984
10,040
154
5,023
2,548
3,376
3,821
75
38

824
274
315
2,660
8,968
123
4,344
2,386
2,825
3,658
64
45

39,025

35,012

Southwestern District—
Burlington-Rock I s l a n d ..___
Fort Smith & Western x
Gulf Coast Lines.
International-Great Northern
Kansas Oklahoma & Gulf
Kansas City Southern________
Louisiana & Arkansas..
Louisiana Arkansas & Texas..
Litchfield & Madison______ .
Midland Valley_ __
_
Missouri & Arkansas_
_
Missouri-Kansas-Texas Lines.
Missouri Pacific____
Quanah Acme & P a cific...
St. Louis-San Francisco___ __
St. Louis Southwestern___
Texas & New Orleans___
Texas & Pacific_______
Wichita Falls & Southern___
Wetherford M . W. & N . W ___

465
681
285
4,851
17,687
163
9,205
3,227
7,981
5,453
201
24

259
562
151
4,552
15,543
149
7,810
2,785
7,413
5,624
194
33

173
300
2,879
2,080
208
2,340
1,689
247
292
937
212
5,261
17,970
177
8,989
3,348
7,929
5,729
252
17

Total______________________

59,986

54,505

61,029

x Discontinued Jan. 24, 1939.

a

a

a

a Included in Louisiana & Arkansas, effective July 1, 1939.

ONE HUNDRED

2882

The Commercial & Financial Chronicle —

—

Selected Income and Balance Sheet Items of Class I
Steam Railways for August
The Bureau of Statistics of the Interstate Commerce
Commission has issued a statement showing the aggregate
totals of selected income and balance sheet items of class I
steam railways in the United States for the month of August.
These figures are subject to revision and were compiled
from 134 reports representing 139 steam railways. The
present statement excludes returns for class I switching and
terminal companies. The report in full is as follows:
TOTALS FOR THE UNITED STATES (ALL REGIONS)
For the M o n th o f A u g.
In co m e Item s —

1939

For the E ight M o n th s o f

1938

1939

1938

Net railway operating incom e.. $54,586,247 $45,421,774 $269,349,355 $155,038,539
88.446.879
Otber income________________ 10.323.238 11,207,865
91.343,769
Total Income______________ $64,909,48' $56,629,639 $357,796,234 $246,382,308
1.845,514

Miscell. deductions from Income

1,838,30-;

15.576,107

16.037.007

Inc avail for fixed charges.. $63,063,971 554,791,337 $342,220,127 $230,345,301
Fixed charges:
Rent for leased roads and
equipment_______________ 12.366,100 12,568.642
91.444.326
88,198.130
Interest deductions________ 39.499.9U 39.821,683 1316,252,403 1317,069,782
207.396
Other deductions__________
131.970
1.062,40.'
1,698,896
Total fixed charges______
Income after fixed charges____
Contingent charges__________
Net income

b_________

$51,998.10: $52,597,721 $108,759,138 $404,966,808
11.035.866
1,013.131

2.193,616 J 68.539,011 4174,621,507
1.012.573
8,107.747
8.103,286

$10,052,735 $1,181,013 d$74,646,758 dl82,724,793

Depreciation (way & structures
and equipment)___________
Federal Income taxes_________

16.873.944
3,291,044

16.919,588
1.726.024

134.617.362
15,430,363

134,740,319
8,462,760

Dividend appropriations:
On common stock__________
On preferred stock.................

11.609.936
2,641,30:

9.313,648
2,593 416

40.962,260
12,852,758

43.399,385
9.166.383

Balance at E n d o f A u gu st

1939

1938

Selected A sset Item s —

Investments in stocks, bonds, &c., other than those

$636,031,526

Net balance receivable from agents and conductors..

$652,566,505

$464,097,038
19,697.402
21.41 .084
60.238,C13
1,519.476
58,301,608
47.455,013
122.320,755
308.863,105
16,231,828
1,244,606
7.199,558

$367,129,816
10.122,421
18.510.242
64,616.492
1,558.775
53,460,235
44.449.263
127,700.821
337.506.966
20,238.420
1,430 777
6.122.287

$1,128,578,486 SI.052.846.515
Selected Liability Item s —

$168,368,873

$246,548,948
72,769 464
210.575.203
62.611.904
761.211.416
1.603.257
612.386.428
11.744,862
97.336,820
32,238.398
22.995.880

52,489,746.82'' $2,132,022,580
Tax liability:

$57,707,377
$53,249,200
161 006.664
167 42 t.7"6
a Represents accruals, including the amount in default, b For 100 railways not
In receivership or trusteeship the net income or deficit was as follows: August,
1900, $19,409,416; August, 1938 $11.974,409; 8 months 1939. $18,076,210: 8 months
1938. dS64,495,546. c Includes payments which will become due on account of
principal of long-term debt (other than funded debt matured unpaid) within six
months after close of month of report, d Deficit or other reverse items, e Includes
obligations which mature not more than two years after date ol issue.

“ Annalist” Index of Wholesale Commodity Prices De­
clined 0.3 of Point During Week Ended Oct. 28—
Average for October Higher
The “ Annalist” announced on Oct. 30 that wholesale com­
modity prices declined fractionally during the week ended
Oct. 28, reflecting to some extent a virtual armistice on the
Western Front. The “ Annalist” weekly index closed at 81.6
on Oct. 28, a loss of three-tenths of a point as compared
with the previous week, but almost two points above last
year. The following is also taken from the announcement:
Wheat moved higher on reports o f drought while corn followed in its
wake. Cotton improved but wool and silk declined. Most o f the specu­
lative items, such as hides, rubber, hogs and cocoa declined as speculators
withdrew to safer ground.
Commodity prices averaged 81.5% o f the 1926 base during October,
the highest for any month since March o f last year and a gain of two-tenths
o f a point as compared with the September average.
“ ANNALIST”

W EEKLY AND MONTHLY INDEXES OF WHOLESALE
COMMODITY PRICES. (1926=100)
28,
1939

Oct.

21,
1939

Oct.

29.
1938

O ct.,

S e ’ t .,

Oct.

O ct.,

1939

1939

1938

Farm products___________
Food products...................
Textile products_________
Fuels...................... .............
Metals................................
Building materials_______
Chemicals.........................
Miscellaneous___________

76.7
71.8
77.1
87.2
99.2
72.3
85.8
76.5

76.8
71.9
77.3
87.2
99.2
72.3
85.8
77.1

78.1
72.1
59.6
84.2
97.7
69.0
87.1
71.1

76.1
71.7
76.1
87.1
99.2
72.0
85 6
76.4

77.2
74.1
67.9
84.1
98.3
70.9
85.2
74.0

78.0
72.3
59.1
84.6
96.7
69.0
87.1
71.2

All commodifies_____

81.6

81.9

79 7

81.5

81.3

79.7




N ov. 4, 1939

Bureau of Labor Statistics’ Index of Wholesale Com­
modity Prices Declined 0.3% During Week Ended
Oct. 28
During the fourth week of October, the Bureau of Labor
Statistics’ index of wholesale commodity prices dropped
0.3% to 79.2% of the 1926 average, Commissioner of Labor
Statistics Lubin reported on Nov. 2. “The decline repre­
sents the second noticeable decrease since the sharp rise in
commodity prices incident to the outbreak of war in
Europe," Mr. Lubin said. “Three of the 10 major commodity
group indexes declined during the week; two remained un­
changed ; and five showed fractional advances. Except for
the 1.2% decline in the foods group, the changes in all
cases were less than 0.5%.” Commissioner Lubin continued:
Lower average prices for farm products, China raw silk, and packer
hides, more than offset price increases for Japan raw silk, Manila hemp,
6crap steel, and anthracite and resulted in a fractional decrease of the raw
materials group.
Semi-manufactured commodity prices declined 0.8% and the indexes for
finished products and “ all commodities other than farm products” showed
smaller decreases. The group of “ all commodities other than farm prod­
ucts and foods,” representing industrial commodities, advanced fractionally.
Sharp declines in market prices of grains, livestock and poultry, and
eggs caused the farm products group index to drop 0.4%. Other farm
products, including fresh apples, lemons, oranges, peanuts, and potatoes
advanced. The foods group declined 1.2% because of lower prices for
butter, rye flour, hominy grits, dried fruits, fresh pork, lard, raw and
granulated sugar, vegetable oils, and edible tallow. Prices for wheat flour,
cured pork, dressed poultry, and oleomargarine averaged higher.
Advancing prices for goatskins, packer cow hides, and sole leather re­
sulted in a fractional increase in the hides and leather products group.
Shoe prices remained unchanged.
In the textile products group higher prices were reported for silk, tire
fabrics, and textile fibres. Average prices for cotton textiles and woolen
and worsted materials were slightly lower. The index for the textile
products gorup was 0.5% higher than the preceding week.
Minor price fluctuations in fuel and lighting materials and metals and
metal products resulted in no change in the index level for the two groups.
Largely as a result of higher average prices for lumber and rosin, the
index of the building materials group advanced 0.5%. Cattle feed prices
increased 3.0% and prices of paper and pulp advanced slightly. The index
for chemicals and drugs declined 0.1% while that for house-furnishing
goods advanced 0.1%.

The following tables show (1) index numbers for the
main groups of commodities for the past five weeks and for
Aug. 26, 1939 and the percentage changes from Aug. 26 and
from Oct. 21 to Oct. 28, 1939; (2) important changes in
subgroup indexes from Oct. 21 to Oct. 28, 1939.
(1926=100)
'-'ercenlaye Change
from —
Oct.

Oct.

Oct.

Oct.

Aug.

C om m odity G roup s

28
1939

21
1939

Sept.

14
1939

7
1939

30
1939

26
1939

Oct. 21
to
Oct. 28,

All commodities____

79.2

79.4

78.9

79.0

79.5

74.8

— 0.3

+ 5.9

Farm products_____
Foods _ ________ .
Hides & leather prod
Textile products____
Fuel & light’s mat’ls
r
Metals & metal prod
Building materials..
Chemicals and dru"s
Housefurnishing g ’ds
Miscellaneous______
Raw materials_____
Semi-manuf’ d article^
Finished products_
_
All commodities other
than farm product
All commodities other
than farm product
a^d fof'd'? _____

67.2
72.3
05.5
75.2
74.6
96.3
03.0
77.9
89.3
77.4
72.1
K2.9
82.5

67.5
73.2
105.4
74.8
74.6
96.3
92.5
78.0
89.2
77.2
72.2
83.6
82.8

66.7
72.7
105.0
74.2
74.4
95.3
92.5
77.6
89.2
77.0
71.6
83.6
82.2

66.8
72.9
05.2
73.8
74.8
95.1
91.8
77.9
89.1
77.1
71.7
83.5
82 3

69 3
74.4
04.1
73.4
74.4
95.2
91.2
78.5
89.1
76.7
73.1
83.7
82.4

61.1
66.7
92.6
67.4
73.2
93.5
89.7
74.2
87.0
73.1
66.2
74.4
79.3

— 0.4
— 1.2
+ 0.1
+ 0.5
0.0
0.0
+ 0.5
— 0.1
+ 0.1
+ 0.3
— 0.1
— 0.8
— 0.4

+ 10.0
+ 8.4
+ 13.9
+ 11.6
+ 1.9
+ 3.0
+ 3.7
+ 5.0
+ 2.6
+ 5.9
+ 8.9
+ 11.4
+ 4.0

81.9

82.1

81.6

81.7

81.8

77.8

— 0.2

+ 5.3

S4.2

84.1

83.7

83.7

«3.3

80.4

+ 0.1

+ 4.7

$116,945,297

$210,349,160
79 0 46.837
230.587 351
61.159.545
913.559,287
1.564.248
796 121.724
14.306 333
92.968.022
3 1.166.670
25.916 748

Y E A R S OLD

1939

A u g . 26
to
Oct. 28,

1939

PERCENTAGE CHANGES IN WHOLESALE PRICE INDEXES OF
IM PORTANT SUBGROUPS FROM OCT. 21 TO OCT. 28, 1939
In creases

Other farm products........................1.2
Fruits and vegetables_____________3.6
Silk and rayon____________________ 5.0
Other textile products____________ 1.5
Lumber ________________________ 1.3
Other building materials__________ 0.7
Cattle feed________________ ______ 3 0

D ecreases

Grains............^________ ___________1.3
Livestock and poultry______________2.8
Meats.____ _______________________ 2.6
Other fo o d s .._____________________ 2.6
Non-ferrous metals________________ 0.5
Dairy products____________________ 0.5

Wholesale Commodity Prices Declined Slightly During
Week Ended Oct. 28 According to National Fertil­
izer Association
The wholesale commodity price index compiled by The
National Fertilizer Association declined slightly during the
week ended Oct. 28, falling to 77.7 from 77.8 in the pre­
ceding week, which marked the high point for the year. A
month ago the index was 76.9 and a year ago 72.9, based on
the 1926-1928 average as 100. The lowest point reached
this year, and the lowest since 1934, was 70.3, in the middle
of August. The announcement by the Association, dated
Oct. 30, continued:
Last week’s decline in the index was due to lower quotations for farm
products and foods. The trend o f prices o f industrial commodities con­
tinued upward, with the average for all commodities included in the index
except farm products and foods rising to the highest point reached since
October. 1937. A moderate decline took place in the food price average
but it is still near the high point for the year. The decline in the index o f
farm product prices was due to lower quotations for hogs, small grains and
wool, which more than offset advances in cotton, corn and cattle. New
high points for the year were registered by the indexes representing the
prices o f fuels and building materials. After advancing for seven con­
secutive weeks the textile price average fell o ff last week, with a decline in
raw silk prices being partly responsible for the drop.

Volume 149

ONE HUN DRED—The

Commercial & Financial Chronicle— YE A R S

Thirty-three price ^series included in the index declined during the week
and 20 advanced; in the preceding week there were 21 declines and 35
advances; in the second preceding week there were 23 declines and 34
advances.
W E E K L Y W H O L E SA L E C O M M O D IT Y P R IC E I N D E X
Com plied by the National Fertilizer Association (1926-1928=100)
Per Cent
Each Group
Bears to the
Total Index

Latest
Week
Oct 28.
1939

Group

Year
Preced'g Month
Ago
Ago
Week
Oct 21. Sept. 30. Oct. 29,
1939
1938
1939

.3

F ood s__________ ____________
Fats and Otis.........................
Cottonseed o il.......................
Farm products______________
C otton____________________
Grains_____ _____ _________
Livestock_________________
Fuels.................. _.......................
Miscellaneous com m od ities..
Textiles_____________________
M etals______________________
Building materials___________
Chemicals and drugs...............
Fertilizer materials__________
Fertilizers................ ...................
Farm m achinery____________

75.3
53.8
64.5
63.8
49.9
59.9
65.4
*81.6
88.1
76.9
94.1
*87.4
93.5
72.9
77.3
95.0

75.8
55.1
65.4
64.3
49.7
60 4
66.1
81.2
88.1
77.3
94.1
86.0
93.4
72.9
77.3
95.0

75.1
57.0
66.9
63.2
49.4
60 8
64.5
80.0
88.2
72.1
93.6
85.5
92.4
72.5
77.2
95.0

72.0
55.5
71.2
64.6
48.8
49.6
72.4
75.6
78.3
59.5
90.9
81.5
93.6
70.5
77.7
97.2

100.0

All groups com bined______

77.7

77.8

76.9

72.9

25.3

23.0

17.3
10.8
8.2
7.1
6.1

1.3
.3
.3

*1939 high point.

Increase of 11.6% in Chain Store Sales in September
Above Last Year, Reports New York Federal Re­
serve Bank

The Federal Reserve Bank of New York reports in its
“ Monthly Review” of Nov. 1 that in September total sales
of the reporting chain store systems in the Second (New York)
District were approximately 11 l % above last year, and
A
even after allowing for one more shopping Saturday this
year than last, the increase in sales was the largest in a
number of months. The Bank added:
The grocery chain stores reported a substantial increase in sales, induced
at least in part by the temporary spurt in sales o f some food staples following
the outbreak o f war in Europe. The ten-cent and variety, shoe and candy
chains continued to show increases in sales over a year ago.
There was a net reduction o f about 3% in the total number of chain
stores in operation between September, 1938 and September, 1939, grocery
chains alone reporting a reduction o f approximately 8 % . As a result of
the trend toward the operation o f fewer but larger units, sales per store
o f the grocery chains increased about 26% over a year ago, compared with
the advance o f approximately 16% in total sales. Sales per store o f all
types o f chains showed an increase o f about 15%, in comparison with the
advance o f about i m % in total sales.
Percentage Change September, 1939 Compared
with September, 1938
Type o f Chain
Number o f
Stores

Total
Sales

Sales per
Store

G rocery___________________________
Ten-cent and variety________ ____
Shoe______________________________
Candy____________________________

— 7.9
+ 0.6
— 0.2
— 3.0

+ 15.8
+ 10.9
+ 4.3
+ 2.9

+ 25.8
+ 10.2
+ 4.4
+ 6.1

All types...........................................

— 2.8

+ 11.6

+ 14.9

New York Reserve Bank Reports Gain of 6% in Septem­
ber Sales of Department Stores as Compared with
Year Ago

Total September sales of the reporting department stores
in the Second (New York) District were about 6% higher
than last year, and the average daily rate of sales showed
more than the usual rise from the August average, states the
Federal Reserve Bank of New York in its Nov. 1 “ Monthly
Review.” Department stores in all localities reported a
larger volume of sales than in September a year ago, and the
apparel stores registered a gain of almost 10%. The Bank
went on to say:
Stocks o f merchandise on hand in the department and apparel stores at
the end o f September continued lower than a year ago. Collections in
September were at a somewhat higher rate than a year ago both in the
department and apparel stores.
Owing especially to a large gain in the third week o f the month, total
sales o f the reporting department stores in this District during the three
weeks ended Oct. 21 were about 8% above the corresponding 1938 period.
The daily rate o f sales for this portion o f October showed about the usual
seasonal advance over September which was a relatively active month for
retail trade.
c-i
Per Cent o f Ac­
counts Outstanding
Aug. 31
Net Sales
Slock
Collected in
on Hand
September
End of
Feb. to
Sept.
Sept.
Month
1938
1939
Percentage Change from
a Year Ago

Locality

New York and Brooklyn___________
B u ffalo_____________________________
R ochester............ _ ..................................
S y r a c u s e .._________________________
Northern New Jersey______________
B ridgeport_________________________
E lsew here.______ __________________
Northern New York State......... ..
Southern New York State_______
Central Neiy York State.......... ......
Hudson River Valley D istrict___
Westchester and Stam ford.'______
Niagara Falls____________________

+ 6.0
+ 3.9
+ 5.4
+ 9.8
+ 2.7
+ 20.4
+ 9.4
+ 7.9
+ 8.1
+ 11.7
+ 8.4
+ 11.8
+ 8.9

+ 1.4
+ 4.5
+ 4.6
+ 8.2
+ 2.9
+ 7.4
+ 5.2
— 4.7
+ 5.5
+ 5.2
+ 5.1
+ 6.1
+ 5.0

— 2.5
+ 5.2
+ 7.2
+ 2.1
+ 1.9
+ 7.4
+ 3.1

All department stores____________

+ 5.8

+ 2.4

— 0.6

Apparel stores.............. .....................

+ 9.9

+ 2 6

—4 6

—

46.0
40.9
50.6
40.1
38.0
34.8
32.3

46.7
42.4
54.4
41.1
38.1
38.3
33.4

—

—

42.8

43.7

36.9

38.9

September sales and stocks in the principal departments are compared
with those o f a year previous in the foUowing table:




2883

OLD

Net Sales
Percentage Change
Set tember, 1939
Comp ared with
September, 1938

Stock on Hand
Percentage Change
Sept. 30, 1939
Compared with
Sept. 30, 1938

+ 26.6
+ 9.7
+ 8.4
+ 7.4
+ 7.2
+ 7.1
+ 7.0
+ 6.2
+ 6.0
+ 5.7
+ 5.6
+ 4.5
+ 3.0
+ 2.9
+ 2.9
+ 2.4
+ 2.2
+ 0.1
+ 4.0

Classification

— 2.6
— 0.2
— 11.1
— 3.3
— 9.0
— 5.3
+ 0.9
— 1.9
— 1.3
— 6.7
— 5.1
— 7.3
+ 6.1
+ 8.2
— 2.4
— 1.7
+ 14.9
+ 5.0
— 3.5

Silverware and Jewelry_____________
W om en's and misses’ ready-to-wear.
Linens and handkerchiefs__________
Silks and velvets___________________
C otton good s_______________________
Luggage and other leather goods —
H osiery_____________________________
H om e furnishings__________________
Shoes_______________________________
W om en's ready-to-wear accessories.
M en’s furnishings__________________
Books and stationery_______________
Toilet articles and drugs___________
Musical instruments and radio_____
Furniture__________________________
T oys and sporting g o o d s ..,................
W oolen goods______________________
M en's and boys’ wear______________
Miscell aneous______________________

Electric Output for Week Ended Oct. 28, 1939, 14.0%
Above a Year Ago

The Edison Electric Institute in its current weekly report
estimated that production of electricity by the electric light
and power industry of the United States for the week ended
Oet. 28, 1939, was 2,538,779,000 kwh. The current week’s
output is 14.0% above the output of the corresponding week
of 1938, when production totaled 2,226,038,000 kwh. The
output for the week ended Oct. 21, 1939, was estimated to
be 2,493,993,000 kwh., an increase of 12.6% over, the like
week a year ago.
P E R C E N T A G E IN C R E A S E F R O M PR E V IO U S Y E A R
Week Ended
Oct. 7, 1939

M ajor Geographic
Regions

Week Ended
Oct. 28, 1939

Week Ended
Oct. 21, 1939

Week Ended
Oct. 14, 1939

New England_________
M iddle A tlantic---------Central Industrial____
W est Central- _______
Southern States_______
R ocky M ountain_____
Pacific Coast_________

14.1
11.8
17.7
8.7
16.0
16.1
8.2

12.3
11.3
15.8
7.5
10.3
16.5
9.6

14.6
13.2
18.7
8.9
12.8
20.4
7.0

x20.8
14.7
17.3
8.1
11.1
24.1
6.5

Total United States.

14.0

12 6

14 3

14.4

x Reflects hurricane condition in 1938.
DATA

FO R

RECENT

Week Ended

1939

1..........
8 ................
15................
22................
29................
5 .............. ..
12................
19................
2 6 .............. ..
2 ............
9 ............
16............
23_____
30 _________
7................
14_________
21____
Oct. 2 8 . . . _

July
July
July
July
July
Aug.
Aug.
Aug.
Aug.
Sept
Sept
Sept
Sent
Sept
O ct.
Oct
O ct.

WEEKS

2,300,268
2.077.956
2,324.181
2,294,588
2,341,822
2,325,085
2.333,403
2,367,646
2,354,750
2,357,203
2,289,960
2,444,371
2,448,888
2,469.689
2.465.230
2,494.630
2,493,993
2.538.779

(TH O U SA N D S O F

1938

2,014,702
1,881,298
2,084,457
2,084,763
2,093,907
2,115,847
2,133,641
2,138,517
2,134,057
2.148.954
2,048,360
2,214.775
2,154.218
2,139,142
2,154,449
2,182,751
2,214.097
2.226.038

K TLO W AT T-H O U R S)

Percent
Change
1939
from
1938

1937

+ 14.2
+ 10 5
+ 11.5
+ 10.1
+ 11.8
+ 9.9
+ 9.4
+ 10 7
+ 10.3
+ 9.7
+ 11.8
+ 10.4
+ 13.7
+ 15.5
+ 14.4
+ 14 3
+ 12.6
+ 14 0

2,238,268
2,096,266
2.298,005
2.258.776
2.256,335
2,261.725
2,300,547
2,304.032
2,294,713
2.320,982
2,154,276
2,280,792
2,265,748
2.275.724
2.280.065
2,276.123
2.281.636
2.254,047

1932

1,456,961
1,341,730
1,415,704
1.433.993
1,440,386
1,426,986
1,415,122
1.431.910
1,436,440
1,464,700
1,423 977
1,476.442
1.490,863
1,499.459
1,506,219
1,507,503
1,528,145
1,533.028

1929
1,723,428
1,592,075
1,711.625
1,727.225
1.723.031
1,724,728
1,729,667
1,733,110
1.750,056
1.761,594
1,674,588
1,806.259
1,792,131
1,777.854
1.819,276
1,806.403
1.798,633
1,824,160

Glass Works at Sandwich, Mass.
The yards and buildings of this establish­
ment cover six acres of ground. It employs
225 workmen, who, with their families,
occupy 60 dwelling houses. The raw ma­
terials used, per annum, are, glass, 600 tons;
red lead, 700,000 pounds; pearlash, 450,000
pounds; Salt Petre, 70,000 pounds. They
consume 1,100 cords of pine wood, 700 cords
of oak wood and 100,000 bushels of bitum­
inous coal. Seventy tons of hay and straw
are used for packing the glass. The amount
of glassware manufactured is $300,000 per
annum; said to be superior to any other
manufactured in America, and equal to any
in Europe. By the application of heated
air from the steam engine, to pans contain­
ing sea water, they manufacture about 3,000
bushels of salt per annum; and all the ashes
is leached, and the ley converted to potash.
It is said that the mere saving to the com­
pany, by this species of economy, which is
carried through every department, is suf­
ficient to pay a handsome dividend on the
stock.
HUNT’ S MERCHANTS’ MAGAZINE,
October, 1839

2884

ONE HUNDRED
The
—

Commercial & Financial Chronicle —

Production of Electric Energy in the United States
for August and September, 1939

The production of electric energy for public use during
the month of September, 1939, totaled 10,935,85S,000 kwh.,
according to reports filed with the Federal Power Commis­
sion, This represents an increase of 13% when compared
with the same month in the previous year. The average
daily production of electric energy for public use reached
an all-aime high of 364,529,000 kwh. during September,
which was 2.3% more than the average daily production
in August. The production of electric energy by electric
railways, electric railroads, and other plants which gen­
erate principally for their own use totaled 175,016,000 kwh.,
making a total production reported to the Commission for
the month of September of 11,110,874,000 kwh., or an aver­
age daily production of 370,362,000 kwh.
The production by water power in September amounted
to 3,104,OSS,000 kwh., or 28% of the total output for pub­
lic use.
Reports were received during October indicating that the
capacity of generating plants in service in the United States
on Sept. 30, 1939, totaled 40,204,000 kwh. This is a net
increase of 339,000 kwh. over that previously reported in
service on Aug. 31, 1939. Occasionally plants are placed in
service but are not reported promptly, so that the net in­
crease shown for any one month does not necessarily mean
that the entire increase was made during that month but
only that the changes were reported to the Commission
since the previous monthly report was issued.
P R O D U C T IO N OF E L E C T R IC E N E R G Y F O R P U B L IC USE IN T H E
U N IT E D ST A T E S
(In Thousands o f Kilowatt-Hours)
By Fuels

By Water Power
Division

August,
1939

September August,
1939
1939

170,186
New England________
M iddle A tlantic..........
465,056
East North C en tra l..
192,058
132,384
W est N orth C en tral..
South A tlantic............
413,548
460.402
East South C e n tra l..
17,462
W est South C en tral-558,061
M ountain____________
P a cific_______________ 1,101,103

Total

September August,
1939
1939

September
1939

131,695 516,275 545,913 686,461
677,608
415,942 2,226,966 2,219,165 2,692,022 2,635,107
178,290 2,264,143 2,353,719 2,456,201 2,532,009
114,418 531,093 543,410 663,477 657,828
297,376 865,290 962,592 1,278,838 1,259.968
121,295
452,189
176,650 581,697 628,839
624,017 627,609 641,479 644,755
17,146
133,974
548,405
138.736 692,035 687,141
949,177
256,603 263,426 1,357,706 1,212,603

United States tota l. 3,510,260 3,104,638 7,539,656 7,831,220 11049 916 10935 858
P R O D U C T IO N OF E L E C T R IC E N E R G Y F O R P U B L IC USE.
Production
Kilowatt-Hours

O ct.
N ov.
D ec.
Jan.
Feb.
M ar.
Apr.
M ay

31, 1938....... ............................
30, 1938...................................
31 i 1938 __________________
3 1 ,1 9 3 9 ..... ..............................
28, 1939................................. ..
3l| 1939 ..... ....................... ..
30, 1939___________________
311 1 9 3 9 . _____ ___________

July 31, 1939
________________
A ug. 3 i; 1939_______ _____ _____
S e p t.30, 1939_
_ _____________

% Change from
Previous Year

112,990,000,000
113.415.000. 000
114.197.000. 000
115.151.000. 000
116.045.000. 000
117.081.000. 000
118.053.000. 000
119,265,000,000
120,538,000,000
121,610,000,000
122.609.000. 000
123.838.000. 000

12 M on tis Ending—

—5
—5
—4
—3
—2
0
+ 1
+ 3
+ 5
+ 7
+ 8
+ 9

Note— Since the above data show production by 12-month periods, all seasons of
the year are included in each total, and the effect of seasonal variations is largely
eliminated.
T O T A L M O N T H L Y P R O D U C T IO N OF E L E C T R IC IT Y F O R P U B L IC USE
IN K IL O W A T T H OU RS.
% Produced by
Water Power

% Change
1938

Months

1937 to
1938

1939

January_____
February____
M arch_______
A pril------------M a y _________
June____ ____
July________
August______
September___
O ctober______
N ovem ber___
Decem ber____

9,465,000,000
8,565,000,000
9,321,000,000
8,806,000,000
8,961,000,000
9,081,000,000
9,405,000,000
10.051,000,000
9,707,000,000
10,076,000,000
10,101,000,000
10,658,000,000

T otal............

10,419,000,000
9,459,000,000
10,357,000,000
9,778,000,000
10,173.000,000
10,354,000,000
10,477,000,000
11,050,000,000
10,936,000,000

114,197,000,000

—5
—5
—7
— 10
—9
—9
—8
—4
—4
—2
—4
+ 8
—4

1938 to
1939
+
+
+
+
+
+
+
+
+

10
10
11
11
14
14
11
10
13

1938

1939

38
42
43
46
43
41
39
38
36
34
35
36

36
40
43
45
41
36
33
32
28

39

Note— A bove data solicited from all plants engaged in generating electric energy
for public use, and. in addition from electric railways, electrified steam railroads,
and certain miscellaneous plants which generate energy for their own use. Accurate
data are received each m onth, representing approximately 98% of the total pro­
duction shown: the remaining 2 % of the production is estimated and corrections
are made as rapidly as actual figures are available. Thus, the figures shown for
the current month are preliminary while those for the preceding months are cor­
rected in accordance with actual reports received and vary slightly from the pre­
liminary data.
C o a l S to c k

and

C o n s u m p tio n

The total stock of coal on hand at electric utility power plants on
Oct. 1, 1939, was 9,108,470 tons. This was an increase of 4.6% when
compared with Sept. 1, 1939, and a decrease of 2.4% from Oct. 1, 1938.
Of the total stock, 7,923,073 tons were bituminous coal and 1,185,397 tons
were anthracite. Bituminous coal stock increased 5.6%, while anthracite
stock decreased 1.7% when compared with Sept. 1, 1939.
Electric utility power plants consumed approximately 4,214,560 net tons
of coal in September, 1939, of which 4,024,987 tons were bituminous coal
and 189,573 tons were anthracite, increases of 4.7% and 2.7%, respec­
tively, when compared with the preceding month.
In terms of days’ supply, which is calculated at the current rate of
consumption, there was enough bituminous coal on hand Oct. 1, 1939, to
last 59 days, and enough anthracite for 188 days’ requirements.




YE A R S OLD

N ov. 4, 1939

Bank Debits 1% Higher Than Last Year
Debits to individual accounts, as reported by banks'rin
leading cities for the week ended Oct. 25 aggregated $8 ,1 0 4 ,000,000, or 1 % above the total reported for the preceding
week, which included only five business days in most of the
reporting cities, and 1 % above the total for the corresponding
week of last year.
Aggregate debits for the 141 cities for which a separate
total has been maintained since January, 1919, amounted
to $ 7 ,407 ,00 0,00 0, compared with $7 ,259,000,000 the pre­
ceding week and $7 ,374,000,000 the week ended Oct. 26^of
last year.
These figures are as reported on Oct. 30, 1939, by the
Board of Governors of the Federal Reserve System.
S U M M A R Y B Y F E D E R A L R E S E R V E D IS T R IC T S

Federal Resene District

3— Philadelphia__________

T o t a l------------------------------

Week Ended—

N o. of
Center
Incl.

Oct. 25, 1939

Oct. 18, 1939

Oct. 26, 1938

17
15
18
25
24
26
41
16
17
28
18
29

8474,326,000
3,419,922,000
404.897.000
549.772.000
317.205.000
244.750.000
1,124,222,000
262,152.000
157,960,000
267,223,000
218.703.000
662.413.000

$458,542,000
3.101.655.000
403.583.000
566.699.000
343.811.000
270.657.000
1.185.601.000
285.515.000
173.292.000
295.712.000
238.909.000
680.697.000

$456,102,000
3.480.535.000
388.227.000
465.303.000
284.863.000
223.035.000
1.244.543.000
233.659.000
148.043.000
250.615.001
193.874.000
622.765.000

274

$8,103,545,000

$8.00+673,000

$7,991,564,000

Country’s Foreign Trade in September— Imports and
Exports
The Bureau of Statistics of the Department of Com ­
merce at Washington on Oct. 26 issued its statement on
the foreign trade of the United States for September and the
nine months ended with September, with comparisons by
months back to 1934. The report is as follows:
Foreign trade o f the United States increased in value during September
as compared with both August and the corresponding month o f 1938.
The rise in exports represented approximately the usual seasonal change,
although the movements of both export and import commodities during
September o f this year were influenced by unusual shipping and other
war-time conditions.
Imports into the United States during September were featured by marked
increases in the movements of crude materials and certain foodstuffs into
consumption channels from bonded customs warehouses. Mainly because
o f these large withdrawals, the value o f total imports for consumption was
the largest for any month o f this year. The excess o f withdrawals from
warehouses over entries into warehouses during September was especially
large in the case of sugar, whisky, wines, wool, zinc and manganese. Goods
actually imported into this country during September showed only a moder­
ate increase as compared with August.
Imports for consumption (goods which entered merchandising channels
immediately upon arrival in this country, plus withdrawals for consumption
from warehouses) amounted to $199,483,000 in September as compared
with $180,338,000 in August 1939 and with $172,909,000 in September
1938.
The value o f general imports (goods entered for storage in bonded ware­
houses plus goods which entered merchandising channels immediately upon
arrival in the country) was $181,461,000 in, September as compared with
$175,755,000 in August 1939 and with $167,592,000 in September 1938.
The increase in the value o f United States exports (including re-exports)
from $250,837,000 in August to $288,573,000 in September was approxi­
mately 15%. This advance, revealed on Oct. 14 in preliminary totals,
was mainly accounted for by expansion in shipment o f agricultural products.
Exports of raw cotton increased from a value of $11,869,000 in August to
$35,661,000 in September, while other agricultural exports advanced from
$32,591,000 to $38,918,000
In addition to the increase in cotton, there
were increases in exports o f dried and canned fruits, lard, flour and corn.
Though tobacco shipments were unusually low for this season of the year,
they nevertheless showed some increase over August shipments.
After falling off in the earlier months of this year from the higher totals
of last year, the value of total agricultural exports rose to $74,579,000 in
September, or to nearly the same value as in September 1938. Though
exports of grain, fresh fruit and tobacco were much smaller in September
than a year before, the increase in cotton exports from the low level o f last
year almost counterbalanced the declines in other items. Shipments of
cotton to the United Kingdom, Italy. Spain and to a number o f the other
European countries were much larger in September than in September 1938.
Shipments o f cotton to Germany and Poland were, o f course, negligible and
those to France and Japan were considerably smaller than in the correspond­
ing month o f 1938.
Exports of nonagricultural products, as a group, were 3% larger in value
in September than in August, primarily as a result o f increased shipments
o f certain crude materials and semi-manufactured products. There was
expansion during September in exports o f coal and crude petroleum to
Canada, in steel scrap and copper exports to Japan and in iron and steel
manufactures and chemical exports to various countries.
Principally because of marked declines in shipments of motor trucks
and aircraft, and o f some reduction in machinery exports. the value of
finished manufactured exports dropped from $133,817,000 in August to
$129,415,000 in September. The latter figure compares, however, with
$112,377,000 recorded for exports o f finished manufactures in September
1938. The value o f exports of a number o f manufactured articles, including
passenger automobiles, industrial machinery, iron and steel products,
refined mineral oils, rubber manufactures, cotton manufactures, and chemi­
cals was larger in September than in the corresponding month o f 1938.
In addition to the increase in exports o f United States merchandise re­
corded for September, reexports of imported merchandise increased from
$2,691,000 in August to $4,533,000 in September. The figures show de­
cidedly larger re-shipments in September than usual of imported crude
rubber, vegetable oils, coffee, and cocoa.
The increase o f 15% in the value of total imports for consumption as
compared with the corresponding month of 1938 was mainly accounted for
by the large entries of a few principal commodities in September. These
included raw silk, unmanufactured wool, nickel, Cuban sugar, whisky,
and wines, for each o f which there was recorded in September the highest
monthly imports in recent years. Moreover, crude rubber, newsprint and

ONE HUN DRED T h e
—

Volume 149

tin imports were also decidedly above the totals o f a year before. The
value o f total imports o f these nine items amounted to nearly $78,000,000
in September 1939 as compared with approximately $50,000,000 in Septem­
ber, 1938.
The increase in imports for consumption o f sugar—an increase which
resulted almost entirely from a rise in imports from Cuba— amounted to
approximately $4,000,000 and was apparently influenced by heavy con­
sumer buying o f refined sugar in the United States immediately after the
outbreak of war in Europe, which also provided a stimulus to the price of
sugar. The suspension o f quotas after Sept. 11 retarded the rate of new
shipments from Cuba towards the end o f the month.
Imports o f raw silk rose in value from $10,540,000 in August to $16,125,000 in September. The sharp upward price tendency during recent
months has influenced heavier buying and the month’s import value was
more than 50% above that o f September and 88% above the value of silk
imports in September o f last year.
M E R C H A N D IS E T R A D E B Y M O N TH S
E xports, In c lu d in g R e -e x p o r ts , G e n e ra l Im p o rts , a n d B a la n ce o f T ra d e
September

9 Months Ended Sept.

Exports and Imports
1938

M dse exports b alan ce..

1939

1938

1,000
Dollars
288,573
181,461

1,000
Dollars
2,295,447
1,434,871

1,000
Dollars
2,184,894
1,620,646

860,576

564,248

78.743

Month or Period

Increase f + )
Decrease (— )

1939

1,000
Dollars
246,335
167,592

E xports_________ _______
Im ports________________

107,112

1,000
Dollars
— 110,553
+ 185,775

1934

1935

1936

1937

1938

1939

1.000
Dollars
172,220
162,752
190,938
179,427
160,197
170,519
161,672
171,984
191,313
206,413
194,712
170,654

Exports, Including
Re-exports—January_____________
February____________
M arch______________
A pril_________________
M a y _________________
June________________
July.................... ............
A ugust______________
Septem ber__________
O ctober.
_________
N ovem ber___________
D ecem ber____________

1,000
Dollars
176,223
163,007
185,026
164,151
165,459
170,244
173,230
172,126
198,803
221,296
269,838
223,469

1,000
Dollars
198,562
182,024
195,113
192,795
200,772
185,693
180,390
178,975
220,539
264,949
226,364
229,800

1,000
Dollars
222,665
233,125
256,566
268,945
289,922
265,341
268,184
277,031
296,579
332,710
314,697
323,403

1,000
Dollars
289,071
261,935
275,308
274,472
257,276
232,726
227,535
230,790
246,335
277,668
252,381
268,943

1,000
Dollars
212,909
218,645
267,782
230,969
249,485
236,064
229,629
250,837
288,573

9 mos. ended Sept___ 1,561,022 1,568,271 1,734,864 2,378,357 2,295,447 2,184,894
12 m os. ended D ec___ 2,132,800 2,282,874 2,455,978 3,349,167 3,094,440
General Imports—
January_____________
February____________
M arch_______ ______
A pril______________ .
M a y ________ _______
____
June__________
July........... .....................
A u g u s t ....... .......... ......
September___________
October______________
N ovem ber.......... ..........
D ecem ber____________

135,706
132,753
158,105
146,523
154,647
136,109
127,229
119,513
131,658
129,635
150,919
132,258

166,832
152,491
177,356
170,500
170,533
156,754
176,631
169,030
161,647
189,357
169,385
186,968

187,482
192,774
198,701
202,779
191,697
191,077
195,056
193,073
215,701
212,692
196,400
245,161

240,444
277,709
307,474
286,837
284,735
286,224
265,214
245,668
233,142
224,299
223,090
208,833

170,689
162,951
173,372
159,827
148,248
145,869
140,809
165,516
167,592
178,024
176,187
171,347

178,246
158,072
190,481
186,291
202,493
178,922
168,925
175,755
181,461

1936

9 Months Ended Sept.

Exports and Imports
1938

Exports (U. S. m d s e .)..
Imports for consumption

1939

1938

1,000
Dollars
243,595
172.909

1,000
Dollars
284,041
199.483

1,000
Dollars
2,266,907
1.434,150

1,000
Dollars
2,156,422
1.621.946

Increase ( + )
Decrease (— )

1939
1,000
Dollars
— 110,485
+ 187.796

Month or Period

1934

1935

1936

1937

1938

1939

Exports— U. S.
Merchandise—■
January______________
February____________
M arch_______________
April _ _____________
M a y _____________ __
June_____
________
July__________________
August
_________
September .
______
O ctober______________
N ovem ber .
______
Decem ber.
_ ..

1,000
Dollars
169,577
159,617
187,418
176,490
157,161
167,902
159,128
169,851
188,860
203,536
192,156
168,442

1,000
Dollars
173,560
160,312
181,667
160,511
159,791
167,278
167,865
169,683
196,040
218,184
267,258
220,931

1,000
Dollars
195,689
179,381
192,405
189,574
197,020
181,386
177,006
175,825
217,925
262,173
223,920
226,666

1,000
Dollars
219,063
229,671
252,443
264,627
285,0S1
256,481
264,613
273,561
293,374
329,373
311.212
319,431

1,000
Dollars
285,772
259,160
270,429
271,508
253,713
229,554
224,866
228,312
243,595
274,059
249,844
266,358

1,000
Dollars
210,258
216,121
263,996
227,618
246,139
233,365
226,738
248,146
284,041

9 m os. ended Sept___ 1,536,002 1,536,708 1,706,210 2,338,913 2,266,907 2,156,422
12 mos. ended D e c _ 2,100,135 2.243,081 2,418,969 3,298,929 3,057,169
_
Imports for
Consumption—
January_____ ________
February____________
M arch_______________
A p r i l . ______ _______
M a y __________
June_________________
July___________ _____
A u gust.
. ________
September .
_____
O ctober______________
N ovem ber___________
December ______ __ _

128,976
125.047
153,396
141,247
147,467
135,067
124,010
117,262
149,893
137,975
149,470
126,193

168,482
152,246
175,475
166,07C
166,756
155,313
173,096
180,381
168.683
189,806
162,828
179,760

186,377
189,590
194,296
199,776
189,008
194,311
197,458
200,783
218,425
213.419
200,304
240,230

228,680
260,047
295,705
280,899
278,118
278,300
262,919
248,730
233,959
226,470
212,382
203,644

163,312
155,923
173,196
155,118
147,123
147,779
147,767
171,023
172,909
178,447
171,668
165,359

169,353
152,577
191,269
185,916
194,185
178,374
170,451
180,338
199,483

9 mos. ended Sept_ 1,222,365 1,506,512 1,770,025 2,367,357 1.434,150 1,621,946
_
_
12 mos ended D e c _ 1.636.003 2.038.905 2.423.977 3.009,852 1.949,624
G O LD A N D S IL V E R B Y M O N T H S
E x p o rts. Im p o rts an d N et B a la n ce
September

9 Months Ended Sept.

Exports and Imports
1938

1939

1938

Gold—
E xports________
_____
Im ports__________ _____

1.000
Dollars
11
520,907

1.000
Dollars
15
326,089

1,000
Dollars
5,843
998,751

1,000
Dollars
472
2,885,745

Import balance____

520,896

326,074

992,909

2,885,273

Silver—
Exports________________
I m p o r ts .. .............. . .

1,463
24,098

1,292
4,639

3,657
158,940

11,483
70,061

22.635

3.347

155.283

58.578

Increase ( + )
Decrease (— )

1939

Imnort balance_____




1,000
Dollars
+ 5,371
+ 1,886,993

+ 7,827
— 88,878

1937

Silver
1938

1939

1937

1936

1938

1939

1.000
1,000
1,000
1,000
1,000
1.000
1.000
1,000
Exports—
Dollars Dollars Dollars Dollars Dollars Dollars Dollars Dollars
2.112
355
1,753
1,671
5,067
81
January____
338
11
1,341
174
233
2,054
15
1,811
February___
23,637
191
2,337
1,546
1,923
39
20
53
M arch ____
2,315
145
535
1,668
240
2,054
13
231
A p ril_____
51
5
1,841
212
317
4
203
611
36
M a y _______
254
1,144
197
81
131
19
303
77
J u n e _____
214
65
138
193
640
695
206
9
J u ly_______
278
401
32
169
17
13
143
937
A u g u s t___
1,463
1,704
285
1,292
42
129
11
15
September
1,259
232
1.468
380
16
October .
117
14
823
30,084
1,611
527
127
Novem ber
1,344
236
15,052
536
99
16
D ecem ber. .
9 mos. end.
S ept____
12 mos. end.
D e c _____
Imports—
January___
F eb ru ary..
M arch ____
A p ril_____
M ay _______
June_______
Ju ly_______
A u g u st____
SeptemberOctober
N ovem ber.
D e ce m b e r ..

27,191

652

5,842

27,534

46,020

5,889

45,981
7,002
7,795
28,106
169,957
277,851
16,074
67,524
171,866
218,929
75,962
57,070

121,336
120,326
154,371
215,825
155,366
232,103
175,624
105,013
145,623
90,709
52,194
33,033

7,155
8,211
52,947
71,236
52,987
55,438
63,880
165,990
520,907
562,382
177,782
240,542

472

156,427
223,296
365,436
606,027
429,440
240,450
278,645
259,934
326,089

8,350

10,899

3,657

11,965

12,042

7,082

58,483
17,536
8,115
4,490
4,989
23,981
6,574
16,637
8,363
26,931
4,451
2,267

2,846
14,080
5,589
2,821
3,165
6,025
4,476
4,964
8,427
5,701
10.633
23,151

28,708
15,488
14,440
15,757
17,952
19,186
18,326
4,985
24,098
25,072
24,987
21,533

10,328
9,927
7,207
7,143
6,152
14,770
5,531
4,365
4,639

52,392 158,940

70,061

9 mos. end.
S ept____ 792,157 1455,587 998,751 2885,745 149,168
12 mos. end.
182,816
D e c ____ 1144,117 1631,523 1979,458

11,483

91,877 230,531

Analysis of Imports and Exports of the United States
in the First Nine Months
The Department of Commerce’s report of the character
of the country’s imports and exports reveals that in the first
nine months 3 0 .9 % of domestic exports and 4 8 .5 % of im­
ports for consumption were agricultural products. The
complete statement, also indicating how much of the mer­
chandise imports and exports consisted of crude or of partly
or wholly manufactured products, is given below:
A N A L Y S IS B Y E C O N O M IC G RO U PS OF D O M E S T IC E X P O R T S F R O M
A N D IM P O R T S IN T O T H E U N IT E D ST A TE S F O R T H E M O N T H OF
S E P T E M B E R A N D T H E F IR S T N IN E M O N T H S O F 1939 A N D 1938
(Value in 1,000 Dollars)
September
Class

E xports o f U n ite d S tates M e rch a n d ise a n d Im p orts fo r C o n s u m p tio n

2885

Gold
Month or
Period

1938
Value

9 mos. ended Sept___ 1,242,243 1,501,775 1,768,339 2,427,446 1,434,871 1,620,646
12 mos. ended D ec___ 1.655.055 2.047.485 2.422.592,3.083.668 1.960.428

September

Y E A R S OLD

C o m m ercia l & F in a n cia l C h r o n ic le —

Domestic Exports—
Crude materials_____
Agricultural
N on-agricultural_
_
Crude foodstuffs____ _
Agricultural_______
N on-agricultural_
_
M fd . foodstuffs & bev
Agricultural_______
N on-agricultural_
_
Semi-manufactures___
Agricultural_______
N on-agricultural_
_
Finished manufactures
Agricultural_______
N on-agricultural. . .

59,605
44,776
14,830
14,254
14,087
168
17,134
15.58C
1,555
40,224
176
40,048
112,377
576
111,801

N ine Months Ended September
1939

Per
Cent

Value

1938
Per
Cent

Value

1939
Per
Cent

Value

412,952 18.2 327,209
24.5 66,847 23.5
18.4 46,470 16.4 264,086 11.6
193,777
7.2
148,865
133,432
6.1 20,377
6.6
9.4
5.9
2.6 213,322
7,477
87,357
9.4
7,356
2.6 212,269
5.8
86,390
120
1,053
967
0.1
7.5
128,666
141,175
7.0 21,309
5.7
6.4 19,615
130,214
6.9
119,100
5.3
1,694
0.4
0.6
0.6
9,566
10,961
16.5 58,993 20.8 371,737 16.4 412,207
0.1
319
1,740
0.1
0.1
1,998
16.4 58,674 20.7 369,997 16.3 410,209
46.1 129,415 45.6 1,140,231 50.3 1,188,475
0.2
0.2
818
0.3
5,479
6,063
45.9 128,596 45.3 1,134,752 50.0 1,182,412

Per
Cent
15.2
9.0
6.2
4.1
4.0
6.6
6.0
0.5
19.1
0.1

19.0
55.0
0.3
54.8

T otal exports of U . S
merchandise_____ 243,595 100.C 284,041 100.C 2,266,907 100.C 2,156,422 100.0
602,674 26.6 418,441 19.4
Agricultural_______ 75,194 30.9 74,579 26.2
N on-agricultural_ 168,401 69.1 209,462 73.8 1,664,233 73.4 1,737,981 80.6
_
Imports for
Consumption —
Crude materials_____
Agricultural______
N on-agricultural___
Crude foodstuffs_____
A g ric u ltu ra l______
N on-agricultural_
_
M fd . foodstuffs & be v
Agricultural_______
N on-agricultural___
Semi-manufactures___
Agricultural______
N on-agricultural_
_
Finished manufactures
Agricultural. ____
N on-agricultural_
_

52,355 30.3 67,606
37,302 21.6 50.723
15,054
8.7 16,884
20,435 11.8 19,465
19,680 11.4 18,597
0.4
755
868
28,641 16.6 38,412
22,857 13.2 28,379
5,684
3.3 10,033
33,607 19.4 38,275
2.1
3.642
3,301
29,965 17.3 34,974
37,870 21.9 35,725
0.2
319
396
37,551 21.7 35,329

33.9
25.4
8.5
9.8
9.3
0.4
19.3
14.2
5.6
19.2
1.7
17.5
17.9
0.2
17.7

416,872
292,421
124,451
192,113
182,692
9,522
239,574
196,804
42,771
278,817
36,308
242,509
306,773
3,523
303,260

29.1
20.4
8.7
13.4
12.7
0.7
16.7
13.7
3.0
19.4
2.6
16.9
21.4
0.2
21.1

512,166
368,839
143,326
212,384
203,083
9,300
234,175
186,462
47,713
337,195
32,072
305,123
326,027
4,243
321,784

31.6
22.7
8.8
13.1
12.5
0.6
14.4
11.5
2.9
20.8
2.0
18.8
20.1
0.3
19.8

T otal imports for consum ption________ 172,909 100.0 199,483 100.0 1,434,150 100.0 1,621,946 100.0
A gricultu ra l.. ._ . 83,800 48.5 101,395 50.9
711,647 49.6 794,700 49.0
N on-agricultural_
_ 89.109 51.5 98.087 49.1
722,503 50.4 827.246 51.0

Manufacturers’ New Orders Increased 61% in Sep­
tember, Reports Conference Board — Greatest
Monthly Advance in Over Ten Years
New orders received by manufacturing industry rose 61 %
in September, the greatest monthly advance in more than
a decade, according to data on industrial orders, shipments
and inventories received directly from nearly 200 repre­
sentative manufacturing concerns by the Division of Indus­
trial Economics of the Conference Board. The volume
of new orders was nearly double that in September of last
year. Backlogs of unfilled orders rose 2 2 % over those
reported for the end of August and were 6 2 % higher than
in September, 1938. The rise in new orders was most marked
in the iron and steel and railroad equipment industries. A
greater-than-average increase was also reported in the
paper manufacturing industry. The Board’s announcement,
issued Oct. 30, further said:

ONE HUNDRED—The Commercial & Financial Chronicle YEARS OLD Nov. 4, 1939

2886

—

Shipments, reported by 155 companies, rose 7% over those for August.
They were 22% higher than a year ago.
Value o f inventories o f 163 concerns at the end o f September showed a
decline o f 1% during the month. Stocks o f raw materials advanced, but
this rise was more than offset by a reduction in inventories o f finished goods.
At the end o f September, total stocks were equivalent to about 2M
months' shipments, compared with stocks adequate for three months’
shipments at the end o f August. A year ago they amounted to better than
3 ! 4 months' shipments at the rate o f business then prevailing.
The following table shows the changes in the various operating factors
during September, in comparison with the levels o f August, 1939, and of
September, 1938:
N o. of
C om pan ies
Reporting

Inventories____________________________
Shipments_____________________________
New orders____________________________
Unfilled orders_____________ ____
In crea ses

S ep t.,

1939, %

Change fr o m

1939

A u g .,

S ep t.,

—1
+7
+ 61
+ 22

163
155
87
72

1938

—7
+ 22
+ 93
+ 62

in I llin o is E m p lo y m e n t a n d P a y r o lls
A u g u s t to S e p te m b e r A bove A verage

fro m

Reports from 6,708 manufacturing and non-manufacturing
establishments in Illinois employing 619,795 persons during
September, indicate an increase of 2 .4 % in employment
and an increase of 2 .0 % in payrolls from August to Septem­
ber, 1939, it was announced Oct. 26 by the Division of
Research and Statistics of the Illinois Department of Labor.
The announcement explained these changes as follows:
The August to September, 1939 increases in employment and payrolls
exceed the average increase o f 1.1% in employment and o f 0.2 of 1% in
payrolls from August to September for the previous 16 years (i. e., 1923
through 1938). Records o f the Division o f Statistics and Research show
that there were increases in employment from August to September during
13 of the previous 16 years, and that there were increases in payrolls during
only 9 o f the 16 years.
Comparison o f the September, 1939 all industries indexes o f employment
and payrolls with those for September, 1938, show that employment was
8.8% higher and that payrolls were 13.0% higher than during the same
month o f last year.
A comparison o f the current month’s indexes with those for September,
1937 is also pertinent since employment in September. 1937 was the highest
for any month since 1930. The comparison shows that employment during
the current month was 12.8% lower and that payrolls were 13.1% lower
than during September, 1937.
Reports from 2.405 manufacturing establishments in Illinois employing
411,842 persons in September, indicate an increase o f 2.0% in employment
and and an increase o f 2.0% in payrolls from Augsut to September, 1939.
Analysis of changes in employment and payrolls for manufacturing indus­
tries from August to September for the previous 16 years shows an average
increase o f 1.0% in employment and less than 0 1 of 1% change in pay­
rolls. Increases in employment from August to September were reporetd
in 12 of the previous 16 years and increases in payrolls were reported
during only 8 o f the 16 years.
Reports from 4,303 non-manufacturing establishments employing 207,953
persons during September, show an increase of 3.2% in employment and
an increase o f 2 0% in payrolls from August to September.
The 10-year (1929-1938) average August to September change in em­
ployment in non-manufacturing industries was an increase of 1.6% and
the average change in payrolls was an increase o f 0.8 o f 1% . Increases
in both employment and payrolls were reported in 7 o f the 10 years.
A v era ge

W e ek ly E a r n in g s D u r in g S ep tem b er

The average weekly earnings of the 619,795 persons covered by September
reports were $26.70. The average weekly earnings for workers in manu­
facturing industries were $26.80 and for non-manufacturing industries were
$26 50- Comparison o f average earnings for August and September shows
» decrease from $26.80 to $26.70 per week for all industries, a decrease
from $26.81 to $26.80 for manufacturing industries, and a decrease from
$26.79 to $26-50 per week for non-manufacturing industries.

The Pacific Mill at Lawrence
A c c o r d in g
good
ren ce

is

h e n s iv e
but

to

a u th o r ity ,
th e

L o w e ll
P a c ific

la r g e s t

m ill in

th e

th e
th e

fin e s t

and

th e w o r ld .
k in d s

of

“ J o u r n a l,”

M ills

at

m ost

com p re­

It m akes n on e
good s,

and

s u c c e s s o f i t s o p e r a t i o n s is l o o k e d
g re a t in te r e s t b y m a n u fa c tu r e r s .
s u r fa c e

of

acres— th e

th is

im m e n se

la r g e s t

m ill in

Law ­

th e

L iv in g C o s t o f W a g e E a r n e r s In c r e a s e d 2 % B e tw e e n
A u g . 1 5 a n d S e p t . 15 R e p o r t s T h e C o n f e r e n c e
B o a r d — F o o d P r ic e s U p 5 .2 %

After declining almost without interruption for nearly a
year, the cost of living of wage earners in the United States
rose 2 % between Aug. 15 and Sept. 15, bringing living costs
to the level of Sept., 1938, according to the regular monthly
survey made by the Division of Industrial Economics of
The Conference Board, issued Nov. 1. The survey shows
that living costs were 15% lower than in 1929 but 19.8%
higher than the low point that was reached in 1933. The
Board further said:
Food prices advanced 5.2% from August to September, bringing them
to a level 0.4% higher than in Sept., 1938, 32.1% higher than at the low
point o f 1933, but 26.8% lower than in Sept., 1929.
Rents in September averaged 0.2% higher than in August, 0.1% lower
than in Sept., 1938, 6.3% lower than in Sept., 1929, and 38.0% higher
than at the beginning of 1934, their low point.
Clothing prices increased 0.4% from August to September. They were
1.5% lower than in Sept., 1938, 26.8% lower than in Sept., 1929, but
18.9% higher than at the low o f 1933.
Coal prices advanced 0.6% from August to September. They were
1.5% lower than a year ago, and 9.1% lower than 10 years ago.
The cost o f sundries averaged 0 1 % higher in September than in August,
0.2% higher than in Sept., 1938, 7.5% higher than at the low point o f 1933,
and only 2.1% lower than in September, 1929.
The purchasing value o f the dollar was 116.4 cents in September, as
compared with 118.3 cents in August, and 100 cents in 1923.

Item

Relative
Im portan ce
in
F a m ily
Budget

Food *____________________
Housing_________________
Clothing_____ ____________
Men’s _________________
Women’s_______________
Fuel and light____________
Coal______________
...
Gas and electricity______
Sundries_________ ____ . . .

Septem ber,

A v g u s t,

1939

1939

80.7
86.5
72.2
7S.5
65.9
84.4
83.0
87.1
97.0

76.7
86.3
71.9
78.2
65.7
84.0
82.5
87.1
96.9

30

Weighted avge. of all items.

In d ex e s o f the Cost o f
L ivin g (1923=100)

100

33
20
12
5

85.9

84.5

11 e.4

Purchasin'” value of dollar..

11° 3

%

o f In c. (+ )
or D e c. (— )
fr o m A v g u s t ,
1939, to
S ep t., 1939

+
+
+
+
+
+
+

5.2
0.2
0.4
0.4
0.3
0.5
0.6
0.0
+ 0.1
+ 1.7

---1

* Based on food price indexes of the United States Bureau of Labor Statistics
for Sept. 19, 1939, and Aug. 15, 1939.

U n e m p lo y m e n t in U n it e d S ta t e s D e c lin e d 6 .7 %
in
S e p te m b e r , R e p o r ts th e C o n fe r e n c e B o a r d — F a lls
B e l o w 9 ,0 0 0 ,0 0 0 f o r F i r s t T i m e S i n c e N o v e m b e r , 1 9 3 7

Unemployment in the United Slates declined 6 .7 % in
September and fell below 9,000,000 for the first time since
November, 1937, according to the monthly estimates of
unemployment and employment prepared by the Division
of Industrial Economics of the Conference Board. The
number of jobless in September is placed at 8,798,000,
or 631,000 less than the August figure of 9,429,000. Since
February of this year, when the unemployed were estimated
at 10,694,000, there has been a decline of 1,896,000, or
nearly 1 8% . In September, 1938, the unemployed numbered
9,902,000. Under date of Oct. 29 the Board further
reported:
Total employed in the country rose to 45,943,000, a gain o f 685,000,
or 1.5% , over the estimate for August. A marked increase o f 396,000
workers in manufacturing industry largely accounted for the increase.
There were the usual seasonal advances in transportation, trade, dis­
tribution and finance. Increases in agriculture of 1.1%, in forestry and
fishing of 1% , and in extraction of minerals of 2.5% were slightly less
than seasonal. Small declines in construction and service employment
were normal.
The Government’s emergency labor force declined in September for the
seventh consecutive month and totaled 2,081,000, as compared with
2,228,000 in August.
Unemployment totals and the distribution of employment during July,
August, and September, 1939, and comparisons with the totals for Sep­
tember, 1938, and March, 1933, and with the 1929 average are shown
in the following table:
(In Thousands)

to w ith
1929

T h e flo o r

stru ctu re
E n g la n d

is

16

is

Average

Unemployment total___________

M a r .,

S e ” t .,

J u ly,

*A u g„

1933

1938

1939

1939

469 14,706

9,902

9,987

9.429

♦Serf.,
1939
8,798

Employment total______________

47,885 35,940 44,195 44.647 45,258 45,943

c o t t o n s p in d le s a n d 10 0 0 0 w o r s te d s p in d le s ;

Agriculture____________________
Forestry and fishing____________

10,539
267

a n d t h e s e a r e t o b e i n c r e a s e d t o 8 0 ,0 0 0 a n d

Total Industry_________________

19,102

acres.

T h ere

are n ow

2 0 ,0 0 0 , r e s p e c t i v e l y .

in

o p e r a tio n

4 0 0 ,0 0

T h e r e a r e 1 ,2 0 0 l o o m s

i n o p e r a t i o n , t o b e i n c r e a s e d t o 2 ,4 0 0 . T h e s e ,
w i t h 2 ,0 0 0 h a n d s , p r o d u c e 3 0 0 ,0 0 0 p i e c e s o f
c lo th

per a n n u m ,

o n e -h a lf d e la in e s .

The

w e e k l y c o n s u m p t i o n o f c o t t o n i s 2 0 ,0 0 0 l b s . ,
s a y 1 , 5 0 0 ,0 0 0 l b s . p e r a n n u m , a n d 5 0 0 ,0 0 0 l b s .
of

w o o l.

O nce

a

m o n th

th e

2 ,0 0 0

hands

Extraction of minerals________
Manufacturing_______________
Construction_________________
Transportation_______________
Public utilities.......... .................

1,067
11,064
3,340
2,465
1,167

Trade, distribution and finance..
Service industries______________
Miscell. industries and services..

8,007
8.96C
1.011

9,961 11,547 11,232 11,548
136
197
197
201
10,980 15,263

15,537

645
6,980
941
1,549
865

724
9,558
2,156
1,880
943

707
9.730
2,225
1,924
951

6,407
7.752
704

7.233
7,207
9.56S
9,071
884 1
905

15.865

11,676
203
16,278

720
738
9.954 10,350
2,264
2.236
1,972 2,000
955
954
7,179
9,552
913

7,349
9,508
928

* Preliminary.

a s s e m b le a t th e C a s h ie r ’ s o ffic e , w h e r e M r.
C la p p p a y s o u t to th e m

$ 5 0 0 ,0 0 0 f o r w a g e s ,

a p p r o p r ia tin g to e a c h o n e th e e x a c t a m o u n t
sh e h as e a rn ed .
H U N T ’S M E R C H A N T S ’ M A G A Z IN E ,




D e ce m b e r, 1854

R e t a il F o o d C o s t s A d v a n c e d 5 .2 % B e tw e e n A u g . 15 a n d
S e p t . 19 A c c o r d in g t o B u r e a u o f L a b o r S t a t i s t i c s

The retail cost of food rose 5 .2 % between Aug. 15 and
Sept. 19, Commissioner Lubin of the Bureau of Labor
Statistics reported on Oct. 29. “ This increase was wide­
spread, costs advancing in all of the 51 cities covered by the
index,” M r. Lubin said. “ Prices were higher for 41 of the
60 priced items, sugar and lard leading with increases of

Volume 149

ONE HUNDRED— The Commercial & Financial Chronicle—YEARS OLD

about 2 5 % and 3 5 % , respectively. The September index
stood at 7 9.0% of the 1923-25 average. This was an ad­
vance of less than 1 % over a year ago and a decrease of 7.9 %
below the level of September, 1937. Costs in 1939 were
less than for any other September since 1934.” The Com­
missioner went on to say:
Cereals rose 1.0%. Flour went up 10.6% and white bread remained
unchanged. Other items in the group showed little price change.
Meats increased 6.1% . All items in the meat group, except roasting
chickens, advanced, the price increases ranging from 2.4% for sliced ham
to 14.7% for pork chops.
t Dairy products rose 6.0% . The increase of 11.0% for butter was largely
seasonal. Milk averaged 4.2% higher, as a result o f increased prices in
11 cities.
Eggs rose seasonally 16.6%, but were cheaper than a year ago.
The cost of fresh fruits and vegetables showed little change and price
movements ^'ere in the main seasonal. Prices rose slightly for all o f the
canned items, but were below last year’s level. Navy beans increased
20.3%.
^ The price o f coffee remained unchanged.
The price o f lard rose 34.7%. Shortening sold in cartons increased
8.6% , while that sold in tin containers declined 1.0% to the lowest level
for the year.
Sugar advanced 23.8% to the highest point reached during the past
10 years.
The average increase o f 5.2% in food prices for the 51 cities was pretty
evenly distributed. The extremes were Omaha with an increase of 9.7%
and Fall River where the advance was 2.7% .
IN D E X NUMBERS OF RETAIL COSTS OF FOOD B Y COM M ODITY GROUPS
Three-Year Average 1923-25=100
19,
1939*

Sept.

C om m odity Group

79.0
85.2
97.5
78.0
74.7
58.3
56.5
74.8
62.0
65.5
67.5
77.8

All foods_____________ —
Cereals and bakery prod.
Meats_________________
Dairy products________
Eggs------------------- -------Fruits and vegetables__
Fresh............................
Canned_____________
Dried_______________
Beverages and chocloate.
Fats and oils___________
Sugar and sweets______
* Preliminary.
W e e k ly

R ep ort

of

15.
1939

Aug.

18,
1939

July

75.1
84.4
91.9
73.6
64.2
57.9
56.4
74.0
56.7
65.3
61.1
62.3

76.5
85.0
93.5
72.5
61.4
63.4
62.7
73.9
56.6
65.3
61.6
62.4

13.
1938

Sept.

78.7
88.2
98.2
77.2
82.2
54.8
52.6
76.3
59.5
66.4
67.7
62.3

15.
1932

Se t.

66.7
74.3
75.8
65.4
62.4
52.8
51.3
69.2
54.4
74.6
51.3
58.2

L u m b e r M o v e m e n t— W e e k
O c t . 2 1 , 1939

15,
1929

S ep t.

108.0
98.6
124.7
103.0
108.9
107.6
108.6
96.3
107.1
110.2
93.4
75.9

Ended

The lumber movement during the week ended Oct. 21,
1939, in relation to the seasonal weekly averages of prior
years was as follows:
Percent o f

Orders ____________

_
_

70
80
72

1929

Percent o f

99
112
107

1937

Percent o f

1938

119
126
111

according to reports to the National Lumber Manufacturers
Association from regional associations covering the opera­
tions of representative softwood and hardwood mills. These
reports further showed:
Compared with the average o f the preceding 10 weeks, reported lumber
production and shipments o f the week ended Oct. 21, 1939, showed gains
o f 3% and 2 % , respectively; new business, loss o f 24% . Compared with
the preceding week, production, as reported by 5% fewer mills, was 3%
more, shipments were the same; new orders, 15% less. New business
was 10% below production. Shipments were 7% above output. Reported
production for the 42 weeks o f the year to date was 16% above correspond­
ing weeks o f 1938; shipments were 17% above the shipments; and new
orders were 21% above the orders o f the 1938 period. For the 42 weeks
o f 1939 new business was 11% above, and shipments 6% above output.
During the week ended Oct. 21, 1939, 505 mills produced 248,860.000
feet o f softwoods and hardwoods combined; shipped 267,512,000 feet;
booked orders o f 224,914,000 feet. Revised figures for the preceding week
were: mills, 530: production, 241,326,000 feet; shipments, 268,633 feet;
orders, 263,639,000 feet.
Lumber orders reported for the week ended Oct. 21, 1939, by 428 soft­
wood mills totaled 214,706,000 feet; or 10% below the production o f the
same mills. Shipments as reported for the same week were 253,551,000
feet, or 6% above production. Production was 239.665,000 feet.
Reports from 94 hardwood mills give new business as 10.208,000 feet,
or 11% above production. Shipments as reported for the same week were
13,961,000 feet, or 52% above production. Production was 9.195,000 feet.
For the week ended Oct. 21, 1939, production o f 414 identical softwood
mills was 237,696,000 feet, and a year ago it was 212,221,000 feet; ship­
ments were respectively, 250,766,000 feet, and 227,199,000 feet; and orders
received 212,853,000 feet, and 209,400.000 feet. In the case o f hardwoods,
74 identical mills reported production this year and a year ago 7,162.000
feet and 6,338.000 feet: shipments, 10,778,000 feet, and 6,748,000 feet
and orders, 7,796,000 feet and 9,473,000 feet.
U n ite d

S ta te s
in

P r o d u c tio n o f P ap er a n d P a p e r b o a r d
1 93 8 D e c r e a s e d B e lo w 1937

The tonnage of paper and paperboard produced in the
United States in 11)38 showed a decrease as compared with
1937, according to a preliminary report released Oct. 28 by
Director William L . Austin, Bureau of the Census, Depart­
ment of Commerce. The production of paper and paperboard in 1938 amounted to 11,380,814 tons, a decrease of
11.3%, as compared with 12,837,003 tons produced in 1937.
The total newsprint produced in 1938 amounted to 832,331
tons against 975,854 tons in 1937; unconted book paper to
1,336,814 tons as compared with 1,520,523 tons in 1937;
writing paper to 481,719 tons against 578,147 tons; wrapping
paper to 1,865,856 tons against 2,053,387 tons: tissue paper
to 548,943 tons against 540,152 tons; building paper to
570,454 tons against 60S.086 tons, and the total for paperboards in 1938 was 5,103,767 tons as compared with 5,802,036
tons in 1937.




2887

U n c e r t a i n t i e s A f f e c t W h e a t P r ic e S i t u a t i o n — B u r e a u
of
A g r ic u ltu r a l
E c o n o m ic s
E s tim a te s
D o m e s tic
D is a p p e a r a n c e fo r Y e a r B e g in n in g J u ly 1, 1 9 3 9 , a t
6 7 5 ,0 0 0 ,0 0 0 B u s h e l s — 3 1 8 ,0 0 0 ,0 0 0 B u s h e l s f o r E x ­
p o r ts a n d C a rry o v e r— F ig u r e s o f W o r ld P r o d u c tio n

The wheat price situation is complicated by an unusually
large number of factors which might become important
within the next few months, according to the Bureau of
Agricultural Economics. These include changes in pros­
pects for the United States 1940 winter wheat crop and in
the Australian and Argentine crops to be harvested in
December and January, political developments in Europe,
the volume of exports, and general business conditions.
Domestic wheat prices declined to about loan levels on
Oct. 7, but then reacted, strengthened by continued drought
in winter wheat areas, small market receipts, and the sale
of substantial quantities of Canadian wheat to the United
Kingdom. The Bureau had the following to say regarding
domestic and world supplies of wheat:
The domestic disappearance o f wheat in the United States for the year
beginning July 1. 1939, is forecast at 675,000,000 bushels. With total
supplies of 993,000,000 bushels, consisting of a carryover on July 1 of
254.000. 000 bushels and the indicated crop of 739,000.000 bushels, a
disappearance o f this size would leave 318,000.000 bushels available for
export during the season, or for carryover at the end of the marketing year.
Prospective world wheat supplies for the year beginning July 1. 1939,
are now indicated to be about 240.000,000 bushels more than a year ago.
(All references to world production and stocks in this report exclude the
U. S. S. R. and China, except where noted.) Increases in carryover
stocks on July 1, 1939. more than offset the decreases in production World
stocks o f old wheat on July 1 are estimated at about 1.165,000.000 bushels,
or about 565.000.000 bushels more than a year earlier. World wheat
production is now estimated at about 4,264,000.000 bushels, or about
325.000. 000 bushels less than in 1938.
The crop in the Northern Hemisphere is estimated to be about 3.792,000,000 bushels, which is about 225,000,000 bushels less than the harvest
of 1938. Weather conditions to date indicate a decrease in production
of about 100,000,000 bushels for the Southern Hemisphere countries.
On the basis of present supply estimates and a moderate decrease in
world disappearance, the world stocks on July 1, 1940, are expected to
be about 1,440.000,000 bushels. Stocks of this size would be a new high
record and about 275,000,000 bushels larger than the estimate for 1939.
World trade in wheat and flour for the year beginning July 1, 1939,
is expected to be smaller than in 1938-39, when shipments totaled about
600.000. 000 bushels. Stocks available for export in surplus producing
countries greatly exceed this quantity. Exports of United States wheat
and flour from July 1 to Oct. 15 amounted to about 19,000.000 bushels,
compared with about 30.000,000 bushels for thesame period a year earlier.
The production of rye in the 20 countries for which reports are available,
and which produced about 85% of the estimated world production in 1938,
is estimated at about 913,000.000 bushels, or about 3,000,000 bushels above
the total for these countries last year. The 17 European countries re­
porting show an increase o f about 1 % compared with the 1938 production.
F in a l D a te
E xport

f o r S h i p m e n t U n d e r 1 9 3 8 -3 9 W h e a t
P la n E x t e n d e d t o D e c . 1 5 , 1 9 3 9

F lo u r

The final date for export shipment under the 1938-39 wheat
flour export program has been extended from Oct. 31,1939 to
Dec. 15, 1939, the Division of Marketing and Marketing
Agreements of the Department of Agriculture announced
Oct. 27. Sales for export were made under this program
from Oct. 28, 1938 through June 30, 1939. The Division
explained this action as follows:
Extension of time has been granted to permit exporters to complete the
shipment of flour sold for export. The exporters have found it impossible
to complete exportation by the Oct. 31 date because o f the European situa­
tion which has disrupted ocean shipping schedules and has caused the with­
drawal o f many vessels from their usual trade routes.
The final date on which exporters can make application for export pay­
ment under the program has been extended from Jan. 2, 1940 to Feb. 15,
1940.

3 ,8 5 5 ,6 5 3 T o n s o f S u g a r R e c e i v e d f r o m O f f - S h o r e A r e a s
D u r in g N in e M o n th s o f 1939

The Sugar Division of the Department of Agriculture on
Oct. 10 issued a report on the entries of sugar from offshore
areas during the first nine months of the year. The report
shows that the quantity entered for consumption during
the period January-September amounted to 3,855,653 tons.
For the corresponding period last year the quantity entered
(and charged against the 1938 quotas for the offshore
areas) totaled 4,128,675 tons. The figures are subject to
change after final outturn weight and polarization data
for all importations are available. A total of 262,547 short
tons of sugar, raw value, was marketed by the mainland
cane areas (including marketings by producers who are
also refiners) and 904,8(3 tons by the continental beet
area during the first eight months of this year. Data for
September are not yet available.
ENTIRES FROM OFF-SHORE AREAS
(Short tons—96 Degree Equivalent)
1939

Quotas in
E ffect Prior to
S e t . 11

A m ou n t Entered
U ” to
Sept 30. 1939

1.932.343
1.041.023
59,111

1,404,220

Hawaii................................................................

981.912
806.642
948.212
9.013
85.812

852,545
871.683
704.718
3.228
19,259

T otal..................................... ........................

4,763,910

3.855,653

~ ~

~ 2

_ .

A rea

f

Cuba................................................
Less amount reallotted on July 10________

ONE HUNDRED The Commercial & Financial Chronicle YEARS OLD

2888

—

D ir e c t-C o n s u m p tio n

—

S u gars

Direct-consumption sugar is included in the above quantities. The fol­
lowing tabulation shows the quantities entered for direct-consumption
during the period January-September, showing separately sugar polarizing
99.8 degrees and above and sugar polarizing less than 99.8 degrees. The
separation of sugars into polarization groups is based on reports of the
outturn weight and polarization for each cargo of direct-consumption sugar
entered.
(Short Tons— 96 Degree Equivalent)
Q uantity E ntered
Quotas
Sugar Polar­ Sugar Polar­
in E ffect
Total
izing 99.8
izing Less
P rior to
Quantity
D egrees and
Than 99.8
S ep t. 11
E ntered
A bove
D egrees

1939
A rea

Cuba
. _ _ ____ ________
Puerto R ico_____ - _________
___
_ _ ____
_
Hawaii. .
Philippines. _________________
T o t a l ______

.

375,000
126,033
29,616
80,214

235,305
122,032
10,086
48,205

12,006
9,731
1,006
14,727

247,311
131,763
11,092
62,932

610,863

415,628

37,470

453,098

ENTIRES FROM FU LL-DU TY COUNTRIES
(In Pounds)
1939
A re a

Q uotas in
E ffect P rior to
Sept. 11

996,917
23,073,847
731,419
1,158,805
3,188,909
20,871,111
35,366,060
38,456,297
1,213,356
46,067,279
500,000

Quantity E ntered
U p to
Sept. 30, 1939 x

219,504
14,315,340
161,973
507,507
996,500
672,740
7,398,225
13,328,502
917,214
0
0

38,517,505
171,624,000
Total _________________________________
19,259
85,812
T o n s ..
_ ______ ____
______
x Excluding 20,000 pounds entered from each area under the provisions of Sec.
212 of the Sugar Act of 1937.
y Argentina, 50,436; Australia, 705; Belgium, 1,018,350; Brazil, 4,141; British
Malaya, 91; Canada, 1,952,228; Colombia, 925; Costa Rica, 71,271; Czechoslovakia,
911,060; Dutch West Indies, 23; France, 605; Germany, 404; Honduras, 11,877,151;
Italy, 6,062; Japan, 13,871; Netherlands, 753,842; Salvador, 28,402,670; Venezuela,
1,003,444. There have been entered under the provisions of Sec. 212 of the Act,
279 pounds from Canada, 30 pounds from Chile, 1,481 pounds from France, 54
pounds from New Zealand, 1,533 pounds from Sweden and 174 pounds from Vene­
zuela.
C a n a d ia n S u g a r C o n s u m p t io n in Y e a r E n d e d A u g . 3 1 ,
1 9 3 9 , R e a c h e d A l l - T i m e R e c o r d — T o t a l o f 5 1 4 ,9 5 5
T o n s W a s 4 . 1 % A b o v e P r e v io u s S e a s o n

Consumption of sugar in the Dominion of Canada during
the crop year ending Aug. 31, 1939, reached an all-time high
record with 514,955 long tons, raw sugar value, as against
494,528 tons in the previous season, an increase of 20,427
tons, or approximately 4.1%, according to advices received
by Lamborn & Co., New York. The 1938-39 consumption
figure is the largest on record. The previous high record
was recorded in 1936-37 when 510,000 tons were consumed.
The firm added:
Of the 1938-39 consumption, 68,355 tons, or 13.3%, were beet sugars
produced in the Dominion, while the remainder were imported cane sugars
which came principally from the British West Indies and other British
possessions. Of the sugars consumed in 1937-38, home production supplied
57,562 tons, or 11.6%, while the balance came mainly from the same
sources as this year.
O c to b er

S u g a r F u tu re s T ra d in g on N ew Y o r k
a n d S u g a r E x c h a n g e B e s t S in c e 1929

C o ffe e

Trading in sugar futures during October totaled 623,150
long tons, the best October volume since 1929, the New York
Coffee & Sugar Exchange announced Nov. 2. For 10 months,
January-October, trading aggregated 4,734,800 tons or only
72,650 tons less than was done during the full year of 1938.
The announcement continued:
The No. 3, or domestic contract, accounted for 357,250 tons of the
October total which compares with 512,900 tons done in September and
143,500 tons in October, 1938. The 10-month figure was 2,893,350 tons
against 2,568,000 during the same period last year. The No. 4, or world,
contract’s October volume was 265,900 tons against 296,900 in September
and 62,700 in October, 1938. For the Jan.-Oct. period, 1,841,450 tons were
traded against 1,607,050 during the same period of 1938.
C o tto n S itu a tio n Im p ro v e d in O c to b e r , R e p o r ts B u r e a u
o f A g r ic u ltu r a l E c o n o m ic s — D o m e s tic C o n s u m p ­
tio n a n d E x p o r ts I n c r e a s e d — W o r ld S u p p ly P u t a t
5 0 ,0 0 0 ,0 0 0 B a l e s , o f W h i c h 2 6 ,0 0 0 ,0 0 0 B a le s is A m e r i ­
ca n C o tto n

Considerable improvement in the cotton situation was re­
ported Oct. 31 by the Bureau of Agricultural Economics,
U. S. Department of Agriculture. Increased domestic cot­
ton consumption, substantial improvement in the competi­
tive price position of American cotton in foreign markets,
and greatly increased exports of American cotton were im­
portant developments during the past month, says the
Bureau, which adds that mill consumption of cotton in
foreign countries appears to have changed comparatively
little. A near record world supply of cotton, about 50,000,000 bales, is indicated despite the reduction in the October
estimate of the United States crop, the Bureau stated. Of
this total, about 26,000,000 bales is American cotton, the
Bureau’s announcement said, and it added:
The daily rate o f cotton consumption in the United States in September
was 10% above August, and apparently increased still further in early
October. Consumption in September was the largest on record for that




N ov. 4, 1939

month. It was equivalent to an annual rate of about 7,750,000 bales
which is nearly 1,000,000 bales larger than consumption last season and
nearly as large as the record high consumption o f 7,950,000 bales in 1936-37.
United States exports of cotton totaled 1,334,000 bales from Aug. 1 to
Oct. 19. This was a 44% increase over exports to the same date last season,
about the same as the quantity exported during the like period in 1937,
but considerably smaller than the 10-year (1923-32) average. Registra­
tion of sales and deliveries of cotton for Government export payments up
to Oct. 19 totaled 2,878,000 bales, according to the Bureau. This was
slightly more than twice the actual exports. Registrations during the 4
weeks ended Oct. 19 exceeded actual exports byabout 150,000 bales or 20%.
Since the domestic cotton export subsidy went into effect in late July, the
Liverpool price of American cotton has declined materially in relation to
most of the important foreign growths, according to the Bureau. The
recent ratios of the price of Indian Oomra and Brazilian Sao Paulo to Amer­
ican cotton at Liverpool have been the most favorable from the standpoint
o f the competitive position of American cotton for approximately
to
2 years. The Liverpool price o f Egyptian Uppers has receiftly been the
highest relative to American since last March. In Japan the price of
American cotton is also reported to have declined materially in relation to
the price of Indian cotton since July.
Mill consumption of cotton in Europe is apparently running at a some­
what higher level than before the outbreak of the European war. In
Great Eritain, Italy, and. possibly some other European countries, in­
creased consumption is believed to have somewhat more than offset de­
clines in Poland and possibly other areas. Consumption in India and
Japan has declined slightly.
The decrease of nearly 500,000 bales in the October estimate o f the
United States crop reduced the indicated world supply o f American cotton
from slightly above to slightly below the record supply o f 1932-33, the
Bureau stated. The reduction in the indicated crop was equivalent, how­
ever, to less than 2% o f the indicated -world supply of American cotton of
nearly 26,000,000 bales. It was equivalent to only about 1% of the near
record indicated world supply o f all cotton of nearly 50,000,000 bales.
F a r m e r s ’ C a s h I n c o m e i n S e p t e m b e r T o t a l e d $ 8 4 7 ,0 0 0 ,0 0 0 , R e p o r t s B u r e a u o f A g r i c u l t u r a l E c o n o m i c s
— C o m p a r e s w i t h $ 6 4 3 ,0 0 0 ,0 0 0 i n A u g u s t a n d $ 7 4 5 ,0 0 0 ,0 0 0 Y e a r A g o

Farmers’ cash Income from marketings and Government
payments in September totaled $847,000,000, it was esti­
mated Oct. 23 by the Bureau of Agricultural Economics,
United States Department of Agriculture. The September
income compared with $643,000,000 for August and $745,000,000 for September, 1938. Income from farm marketings
in September amounted to $781,000,000, representing more
than the usual seasonal increase from the $601,000,000 esti­
mated for August, and was 10% larger than the $718,000,000
reported for September last year. Government payments
totaled $66,000,000 in September compared with $42,000,000
in August and $27,000,000 in September last year. The
Bureau’s announcement continued:
For the first nine months of this year cash farm income, including Gov­
ernment payments, amounted to $5,441,090,000 compared with $5,357,000,000 for January-Septemiber last year. Income from farm marketings
was $4,883,000,000 and was 3% smaller than the total of $5,024,000,000
for the same months least year. Income from grains, fruits, vegetables
and meat animals was slightly larger than for January-September last year,
whereas income from cotton, tobacco and dairy products has been smaller.
In January-September this year Government payments totaled $558,000,000
compared with $333,000,000 in the same months of 1938.
Income from farm marketings increased much more than usual from
August to September, and in September was larger than in the correspond­
ing month of a year earlier for the first time since October, 1937. After
adjustment for the usual seasonal change, the index of farmers’ income
from marketings (1924-29 equals 100) increased from 71.0 in August to
79.0 in September. Income from both crops and livestock increased more
than seasonally, the livestock income showing the most pronounced im­
provement. Income from all groups of crops and livestock except tobacco
increased more than seasonally. Tobacco income was sharply reduced
during September, due to the closing of all tobacco markets on Sept. 10.
With the marked advance in farm prices in September and some increase
in prospective marketings of farm products, it now appears likely that
farm income, including Government payments, in 1939 will total about
$8,300,000,000, or about 5% higher than was forecast in August, and
about 3.5% higher than in 1938. The most pronounced increases in income
over those forecast in August are expected in incomes from grains, cotton,
miscellaneous crops, meat animals and dairy products.
With the improvement in cotton prices and the larger crop in prospect,
it now appears likely that income from cotton lint and seed in 1939 will
be only slightly smaller than in 1938. Income from grains, vegetables and
fruits is expected to be larger than a year earlier and to offset the
declines in income from other crops, so that total income from crops will
be about the same in 1939 as in 1938.
Income from meat animals in 1939 may be nearly as large as in 1937,
with the larger supply of hogs and increased movement of feeder cattle
and lambs more than offsetting the lower level of prices. Income from
dairy products has increased much more than seasonally the past two
months, but is still likely to be somewhat less in 1939 than in 1938.
F e d e ra l a n d S ta t e E c o n o m is ts S u r v e y 1940 F a r m O u t
lo o k — R e p o r ts o n C o m m o d itie s to B e Is s u e d

More than 100 extension workers, representing 44 States
and all the country’s major agricultural areas, began their
annual meeting in Washington Oct. 30 with the Bureau of
Agricultural Economics to study and report on the agri­
cultural outlook for 1940. The conference will last through
today, N ov. 4. Beginning N ov. 6, reports on the farm
outlook by major agricultural commodities will be released
daily, except Sunday, through N ov. 15. An announcement
in the matter further stated:
All available information that will aid farmers in making their crop and
livestock production and marketing plans for the coming year will be
included in the reports, which will cover the current situation and the
outlook for supply, prices and demand for 1940.
Officials said that the 1940 report is of unusual importance because of
the war situation in Europe, which is affecting not only our farm exports,
but also our domestic demand for farm products.

Volume 149

ONE HUN DRED—The

Commercial & Financial Chronicle—

The outlook on demand and prices for farm products will be the first
release in the series. It will be followed by reports on agricultural credit;
production costs; horses and mules; cotton; feed crops and livestock; meat
animals and meats; hogs, beef cattle; dairy; tobacco; rice, dry beans,
potatoes; poultry, eggs and turkeys; sheep, lambs and wool; fruits and
tree nuts; truck crops, canning crops; fats, oils and oilseeds; clover and
alfalfa seed.
A report on the outlook fcr farm family living prepared in cooperation
with the Bureau o f Home Economics also is included.

Petroleum and Its Products— Penn Grade Crude
Prices Advanced— Texas Seeks Increased Allowable
to Meet War Needs— House Oil Hearings Start
Monday— Crude Oil Production Slumps— Seek
Continued Mexican Policy
The rising demand for lubricating oils which has brought
about consistent price firmness during the past several weeks
was reflected in a 15-cent a barrel advance in the posted price
of Pennsylvania grade crude oil this week. The advance,
posted by the Joseph Seep Purchasing Agency of the South
Penn Oil Co., was to become effective on N ov. 1, the day
after it was announced.
The markup was the second advance within a month, a
25-cent a barrel increase having been posted in the initial
week of October. The sustained strength in Pennsylvania
neutral and bright oil stocks, used in the production of lubri­
cating oils, has boosted prices about 50% above their pre-war
level. Since the oil produced in the Pennsylvania is used
mainly for lubricants, it is not likely that the advance will
affect the other important oil fields.
Under the new price schedule, which lifts prices to the
highest levels in many months, all grades were advanced
save Corning crude oil which held unchanged. South West
Pennsylvania Pipe Line quotations moved up to $2.05 a
barrel. Bradford and Alleghany district crudes were posted
at $2.40 a barrel with Eureka Pipe Lines being advanced to
$1.99 a barrel.
The special oil investigating subcommittee of the House
Interstate and Foreign Commerce Committee will start its
hearings in Washington Monday, Nov. 6, it was announced
early this week in the Nation’s capital by Representative
William P. Cole (Dem., M d .), Chairman of the sub-com­
mittee. The hearings, which were delayed pending the con­
clusions of the Temporary National Economic Committee’s
hearings on the oil industry, are to last only one week. The
shortness of the hearings is due to the fact that only witnesses
from Federal agencies will be heard, with spokesmen for the
oil industry getting no chance to present their side of the
question until after the turn of the year when the regular
session of Congress starts.
The first two days of the hearings will be devoted to rep­
resentatives of the United States Bureau of Mines and the
Geological Survey. Secretary of the Interior Harold Iekes
will appear before the Cole subcommittee on Wednesday
with the following two days devoted to hearing spokesmen
for the Army and Navy and the National Resources Planning
Board. In the closing days of the last session of the Con­
gress, Representative Cole, at the behest of President Roose­
velt, introduced a bill which amended the Connally hot oil
bill and extended Federal regulation of the oil industry.
The hearings, it was indicated, would be based upon the terms
of this bill.
In an interview in Washington, Lon A. Smith, Chairman
of the Texas Railroad Commission, stated that there was an
actual shortage of crude oil for refineries because of the
growing demand for crude and refined products arising out
of the World War. M r. Smith, who was accompanied by
Jerry Sadler, also a member of the Commission, went to
Washington to discuss the situation with Secretary of the
Interior Iekes and John W . Finch, director of the United
States Bureau of Mines.
Disclosing the hitherto unknown fact that actual daily
movements of Texas crude for export to the warring nations
totaled approximately 375,000 barrels, M r. Smith said that
an increase of the same figure in the November market
demand estimate for Texas of the Bureau of Mines was
necessary. The head of the Texas regulatory body pointed
out that at the time of the original estimate of the probable
market demand for November crude oil in the Lone Star
State, this was unknown and therefore could not have been
taken into consideration, as it should have been, by the
Bureau of Mines.
“ Texas crude is going out from our refineries in such
volume that there is an actual shortage for our refineries,”
M r. Smith said. “ Unless we can raise our allowables,
some of our refineries will be forced to shut down. We are
not producing sufficient crude under our present allowables
to meet export demand and supply refineries demands with­
out drawing upon storage. We have told Secretary Iekes
that we would keep production in Texas within the estimated
demand as announced by the Bureau of Mines, and our
present allowables are based upon that figure . . . this
figure is just 373,121 barrels too short because of the Euro­
pean demand for crude oil.”
Following their talks with Secretary Iekes, both M r. Smith
and M r. Sadler admitted that they “ had not received much
encouragement.” Neither of the members of the Railroad
Commission believed that they would receive any Federal
aid in adjusting the November allowables. “ We probably
will not be granted any relief during November,” M r. Smith



YE A R S OLD

2889

said “ but the next estimate of the Bureau of Mines probably
will give Texas an increased estimated demand by taking
into consideration the volume of oil moving to the warring
nations of Europe.”
With production in Texas held down to a 4-day week
during the period ended Oct. 28, daily average output of
crude oil for the Nation slumped 273,400 barrels to a figure
of 3,498,500 barrels, the American Petroleum Institute
reported. This figure compared with estimated daily aver­
age market demand fo” crude oil during October, as estimated
by the U. S. Bureau of Mines, of 3,590,300 barrels daily.
Texas alone accounted for all but some 10,000 barrels of the
net decline in production.
A drop of 263,700 barrels in daily average production in
Texas as the wells shut down Friday-Saturday-Sunday, in
keeping with the Commission’s proration orders, pared the
daily total for the Lone Star State to 1,250,900 barrels.
The sharpest decline in weeks shown in California, 25,000
barrels, slashed the daily average there to 606.700 barrels.
Oklahoma producers cut back their output by 12,250 barrels,
with the daily average dropping to 415,750 barrels. Off­
setting these declines were increases of 12,700 barrels for
Illinois to 340,400 barrels (a new high) 12,350 barrels for
Kansas to 187,200 barrels, and 2,650 barrels for Louisiana
where output rose to 264,850 barrels.
Inventories of domestic and foreign crude oil held in the
United States dropped 743,000 barrels during the week
ended Oct. 21, totaling 229,127,000 barrels, according to the
Oct. 28 report of the U. S. Bureau of Mines. Domestic
crude holdings were off 808,000 barrels but this was offset
in part by a gain of 65,000 barrels in foreign crude oil in
storage. Heavy crude oil stocks, not included in the
“ refinable” crude stocks, were up 41,000 barrels during the
week to 14,035,000 barrels.
The United Press reported from Mexico City on N ov. 1
that “ complete nationalization of the Mexican oil industry
was proposed tonight in the draft of a second 6-year plan
submitted to the national convention of the Mexican Revolu­
tionary Party by the organization’s executive committee.
The proposal was seen as a move to forstall any further
attempts by American and other foreign petroleum companies
whose properties were affected by the early 1938 expropria­
tion laws, to regain their properties.”
Price changes follow:
Oct. 31-—Joseph Seep Purchasing Agency o f the South Penn Oil Co. ad­
vanced prices of Pennsylvania grade crude oil 15 cents a barrel, effective
N ov. 1.
Prices of Typical Crude per Barrel at Wells
(All gravities where A . P . I. degrees are not shown)
Bradford, P a ____________________ $2.40
Lima (Ohio Oil C o .)........................ 1.25
Corning, Pa_____________________ 1.02
Ulinois____________________________ .
.95
Western K entucky_______________ 1.20
M id-O ont’t, Okla., 40 and a b o v e .. 1.03
Rodessa, A rk., 40 and above____ 1.25
Smackover, A rk., 24 and over_____
.75

Eldorado, A rk., 40_________________ $1.03
Rusk, Texas. 40 and over___________ 1.02
Darst Creek_________________________ 1.03
M ichigan crude______________________ 1.22
Sunburst, M o n t_____________________ 1.22
Huntington, Calif., 30 and over___1.05
Kettlem an H ills, 39 and over________1.24

REFINED PRODUCTS— LUBRICANTS’ PRICES STRONG— M OTOR
FUEL HOLDS STEADY— R E FIN E R Y OPERATIONS S L U M P M OTOR FUEL IN VENTORIES RISE

Lubricants continued to hold the spotlight in the refined
products field, prices being the strongest in months. Further
movements into higher price ground are expected as a result
of the increase in Pennsylvania grade crude oil, the second
within a month. Sustained rising industrial demand has
bolstered the price structure for this branch of the refined
products field.
Gasoline prices, for the most part, held steady'both in the
wholesale and retail markets in the major consuming areas
of the United States. With stocks far above normal re­
quirements for this time of the year, only the hope of sus­
tained heavy export demand from the warring European
nations is behind the contra-seasonal firmness of the motor
fuel market.
Refinery operations were slashed severely during the final
week of October. The mid-week report of the American
Petroleum Institute disclosed a decline of 3.5 points from
the high of 87% of capacity reached in the previous period.
Daily average runs of crude oil to stills dipped 130,000 from
their record high of 3,520,000 barrels set in the Oct. 21 week.
Production of gasoline, however, climbed some 50,000 barrels
for the week.
Inventories of finished and unfinished motor fuel showed
a seasonal expansion despite the sharp decline in refinery
operations. The American Petroleum Institute report
disclosed a jump of more than a half million barrels of gaso­
line during the period, with stocks on Oct. 28 totaling 72,660,000 barrels. About 10,000,000 barrels above normal for
this period of the year, the stocks show the effects of the sus­
tained high rate of refinery operations during the past
several months. Even record demand was unable to reduce
the top-heavy stocks.
Price changes in the major markets were limited to unim­
portant local readjustments, for the most part.
U. S Gasoline (Above 65 O ctane), Tank Car Lots, F.O .B . Refinery
New York—
Other Cities—
New Y ork—
Std.Oil N .J.$.06M -.07
T exa s_____ S.07M -.08
C h icago______$.05 -.05M
Socony-Vac. .06M -.07
G ulf_______ .08K -.08M New Orleans. .06M -0 7
Shell East’n .07M -.08
T . W at. Oil .08M -.08M
Gulf ports
.05M
Rich Oil (Cal) .08M--08M
T u ls a .............. .04K -.05M
W arner-Q .. 07M --08
Kerosene, 41-43 W ater W hite, Tank Car, F.O .B. Refinery
New York—
I North Texas_______ $.04 (N ew Orleans.S.OSM-.OoH
(Bayonne)________ $ .0 5 1 1Los A n geles.. .03H -.05 I Tulsa_________ .04 -.O iH

2890

ONE HUNDRED
— The

Commercial & Financial Chronicle —

Fuel OH. F.O .B . Refinery or Terminal
N. Y (Bayonne)—
|California 24 plus D
I New Orleans C ______ $1.00
Bunker C _________ $ 1 1 5
$1.00-1.25 Phila., Bunker C ____ 1.45
D iesel........................ 1.651
|
Gas OH. F.O .B . Refinery or Terminal
N. Y. (Bayonne)—
|Chicago—
i Tulsa_________ $.02% -.03
|
_________________ j
27 plus.................... * 04 I 28-30 D .................$.053
Gasoline, Service Station, Tax Included
^ New Y o r k - . . " . . ___$ 1 7 |N ew ark______________$.1661B u ff a lo .T -.T .'- .- T T ls . 174
z B rook lyn _________ .17 I Boston_______________ ,185|Chicago_____________ .17
z N ot including 2% city sales tax.

Daily Average Crude Oil Production for Week Ended
Oct. 28 Declines 273,400 Barrels
The American Petroleum Institute estimates that the
daily average gross crude oil production for the week ended
Oct, 28, 1939, was 3,498,500 barrels. This was a falling off
of 273,400 barrels from the output of the previous week,
and the current week’s figure was below the 3,590,300 bar­
rels calculated by the United States Department of the
Interior to be the total of the restrictions imposed by the
various oil-producing States during October. Daily average
production for the four weeks ended Oct. 28, 1939, is esti­
mated at 3,605,000 barrels. The daily average output for
the week ended Oct. 29, 1938, totaled 3,237,550 barrels.
Further details, as reported by the Institute, follow :
Imports of petroleum for domestic use and receipts in bond at principal
United States ports for the week ended Oct. 28 totaled 1,041,000 barrels,
a daily average of 148,714 barrels, compared with a daily average of
197,857 barrels for the week ended Oct. 21 and 177,500 barrels daily for
the four weeks ended Oct. 28.
Receipts of California oil at Atlantic and Gulf Coast ports for the
week ended Oct. 28 totaled 245,000 barrels, a daily average of 35,000
barrels, compared with a daily average of 56,857 barrels for the week
etided Oct. 21 and 25,429 barrels daily for the four weeks ended Oct. 28.
Reports received from refining companies owning 86.2% of the 4,394,000barrel estimated daily potential refining capacity of the United States
indicate that, the industry as a whole ran to stills, on a Bureau of Mines
basis, 3,520,000 barrels of crude oil daily during the week, and that all
ccmpanies had in storage at refineries, bulk terminals, in transit and in
pipe lines as of the end of the week, 72,660,000 barrels of finished and
unfinished gasoline. The total amount of gasoline produced by all com­
panies is estimated tc have been 12,232,000 bariels during the week.

Oklahom a____________
Kansas_______________

424,200
170,600

State
Allow­
ables

Week
Ended
Oct 28,
1939

Change
from
Previous
Week

424,200 b415,740 — 12,250
170,600 bl87,200 + 12,350

Panhandle Texas_____
N orth Texas__________
W est Central Texas___
W est Texas___________
East Central Texas___
East T exas___________
Southwest Texas_____
Coastal T e x a s ........... ..

64,000
76,100
27,500
208,600
83,550
395,500
193,100
202,550

— 7,400
— 18,900
— 5,900
— 50,500
— 5,150
— 96,950
— 39,000
— 39,900

Four
Weeks
Ended
Oct 28,
1939

Week
Ended
Oct 29,
1938

422,300
167,550
66,250
82,950
29,450
231,100
85,000
443,850
207,900
223,150

432,000
157,100
60,100
79,800
31,850
200,200
90,550
370,050
224,500
203,600

Total Texas________ 1,444,800 cl3 60 563 1,260,900 g263,700 1,369,650 1,260,650
N orth Louisiana______
Coastal Louisiana____
Total Louisiana____
Arkansas- ___________
Mississippi____________
Illinois________________
Eastern (not incl. 111.).
M ichigan . ___ ________
W yom ing_____________
M ontana_____________
C olorado______________
New M exico__________

65,700
199,150
260,300

258,504

56,100

65,800

275,500
99,400
61,000
69,000
16,500
3,900
114,200 d ll5 ,3 9 3

— 500
+ 3,150

66,250
194,850

Daily Refining
Capacity

+ 2,650

261,100

269,650

65,900
+ 550
800
+ 450
340,400 + 12,700
103,100
+ 150
63,950 + 1,500
62,100 — 2,900
17,200
— 50
3,900
+ 200
115,750
— 50

65,500
49,200
300
332,550 j 183,800
102,600
64,400
53,850
64,450
51,350
17,000
13,500
3,750
3,950
112,600 103,500

Total east o f C a lif.. 2,995,500
2,891,800 5248,400 2,983,750 2,578,550
California____ ________
594,800 e598,300 606,700 —25,000 621,250 659,000
Total United States. 3,590,300

3,498,500 fs?273400 3,605.000 3,237,550

a These are Bureau o f M ines’ calculations o f the requirements o f dom estic crude
oil based upon certain premises outlined in its detailed forecast for the month of
O ctober. As requirements may be supplied either from stocks, or from new pro-

Gasoline
Production
at Refineries
Percent Inc. Natural
Blended
Operated

Crude Runs
to Stills

Potential
Rate

Percent
Reporting

615
149
615
419
316
1,055
179
100
118
828

100.0
85.9
90.2
81.6
50.3
90.0
97.8
55.0
54.2
90.0

588
107
505
266
112
853
147
38
39
508

95.6
83.6
.91.0
77.8
70,4
89.8
84.0
69.1
60.9
68.2

1,670
432
2,150
z955
509
2,810
417
104
208
1,509

86.2

East C oast_________________
Appalachian_______________
Indiana, Illinois, K entucky.
Oklahoma, Kansas, Missouri
Inland Texas_______________
Texas G u lf__________ _______
Louisiana G ulf________ ____
N orth Louisiana & Arkansas
R ocky M ountain......... ..........
California.......... .......................

3,163
357

83.5

10,764
1,468

R e p o r t e d . . _____________
Estimated unreported______
♦Estimated total U . S.:
O ct. 28, 1939......................
O ct. 21, 1939.................... ..

4,394
4,394

Daily
Average

3,520
3,650

12,232
12,182

x3,251

*U.,S. B. of M . Oct . 28, 1938

y ll,2 1 7

♦Estim ated Bureau o f Mines’ basis, x O ctober, 1938 daily average. y T h is
is a'w eek’s production based on the U. S. B . o f M . O ctober, 1938 daily average,
z 12 % reporting capacity did not report gasoline production.
ST O C K S O F F IN IS H E D A N D U N F IN IS H E D G A SO L IN E A N D G AS A N D
F U E L O IL , W E E K E N D E D O C T . 28, 1939
(Figures in Thousands of Barrels of 42 Gallons Each)
Stock o f Finished and
Unfinished Gasoline

Stocks of Residual
Fuel Oil

Stocks o f Gas Oil
and Distillate

District
At Terms,
At Terms,
At
At
in Transit
in Transit
Refineries and in
Refineries and in
Pipe Lines
Pipe Lines

Total
Finished

Total
Finished
and
Unfin’d

East Coast________
Appalachian_______
Ind., 111., K y ..........
Okla., K an ., M o ___
Inland Texas______
Texas G ulf________
Louisiana G u lf____
N o . La. & Arkansas
R ock y M ountain. .
California______ . .

17,527
2,293
10,274
5,833
1,288
8,242
2,221
249
915
13,531

18,511
2,611
10,771
6,129
1,495
9,539
2,554
324
991
14,635

7,128
277
3,940
1,767
396
5,662
893
242
127
7,928

6,720
149
973
31

R e p o r te d .. ____
Est. unreported____

62,373
5,000

67,560
5,100

28,360
830

10,372

85,101
2,420

27,265

♦Est. total U . S.:
O ct. 28, 1939____
O ct. 21, 1939____

67,373
66,688

72,660
72,122

a29,190
a29,463

10,372
9,895

a87,521
a87,781

27,265
27,279

U . S. B . o f Mines
♦Oct 28, 1 9 3 8 ...

63,493

69,252

32,739

5.880
364
2,797
2,753
1.881
7,607
2,137
645
416
60,621

594
11
11
1,883

4,361
43
306
295
22,260

120,540

* Estimated Bureau of M ines’ basis, a For com parability with last year these
figures must be increased by stocks " A t Terminals, & c.,’ ’ in California district.

75,450
194,200

264,850

Nov. 4, 1939

District

D A IL Y A V E R A G E C R U D E O IL P R O D U C T IO N
(Figures in Barrels) « »
a
B. q fM .
Calcu­
lated
Require­
ments
(O ct)

YE A R S OLD

duction, contemplated withdrawals from crude oil inventories must be deducted
from the Bureau’s estimated requirements to determine the amount o f new crude
to be produced.
b Oklahoma and Kansas figures are for week ended 7 a. m . O ct. 25.
c This is the net basic allowable for the mouth o f October obtained from the best
available sources and takes into consideration ordered shutdowns for 11 days during
the m onth, namely O ct. 1, 2, 7, 8, 14, 15, 21, 22, 27, 28, and 29. Latest informa­
tion Indicates that exemptions are included but not accretions from new wells.
d Allowable for period O ct. 16 to 31; previous allowable revised to cover new
wejls completed.
e Recommendation o f Central Com m ittee of California Oil Producers.
f O ct. 21 total revised to include Mississippi (350 barrels daily),
g Minus.
Note— The figures indicated above do not include any estimate o f any oil which
might have been surreptitiously produced.
C R U D E RU N S T O ST IL LS A N D P R O D U C T IO N O F G A SO L IN E , W E E K
E N D E D O C T . 28, 1939
(Figures in Thousands o f Barrels of 42 Gallons Each)

Weekly Coal Production Statistics
The current weekly coal report of the Bituminous Coal
Division, U. S. Department of the Interior disclosed that
production of soft coal showed little change in the week
ended Oct. 21. The total output is estimated at 10,450,000
net tons, as against 10,430,000 tons in the preceding week.
Production in the corresponding week of 1938 amounted to
8,140,000 tons.
The U. S. Bureau of Mines reported that for the fourth
consecutive week the production of Pennsylvania anthracite
has shown a declining tendency. Total estimated output
for the week ended Oct. 21 amounted to 1,194,000 tons, a
reduction of 30,000 tons, or 2.5 % from the week of Oct. 14,
but a gain of 330,000 tons (about 38% ) in comparison with
the same week of 1938.
E S T IM A T E D U N IT E D ST A T E S P R O D U C T IO N O F SO FT C O AL
(In Thousands of Net Tons)

A Novelty in Quarrying
An instrument for boring into hard rock,
made out of a tube furnished with a circu­
lar cutter of rough diamonds, is now being
employed in France. It is caused to re­
volve, and as it enters the stone, the cutter
scoops out a cylinder, which is afterwards
easily taken out of the tube. Holes in hard
granite for blasting purposes, two inches
diameter and four feet deep, are thereby
bored in one hour. This would require two
days’ work in the ordinary way. The dia­
monds, when examined through a magni­
fying glass, do not look at all injured.
HUNT’S MERCHANTS’ MAGAZINE,
March, 1863




W eek Ended

Calendar Year to Date c

Oct. 21, Oct. 14, Oct. 22,
1939
1939
1938
Bituminous Coal a—
Total, including mine fuel______
Daily average____ __
. .. .

10,450
1,742

10,430
1,738

1939

1938

1929

8,140 b293,967 259,915 423,403
1,357
1,187
1,047
1,702

a Includes for purposes of historical com parison and statistical convenience the
production o f lignite, b Subject to revision, c Sum o f 42 full weeks ended O ct. 21,
1939, and corresponding 42 weeks o f 1938 and 1929.
E S T IM A T E D

P R O D U C T IO N O F P E N N S Y L V A N IA A N T H R A C IT E A N D
B E E H IV E C O K E
_____________________ ______________ (In N et Tons)___________________________________
Calendar Year to Date

W eek Ended
Oct. 21,
1939

Oct. 14,
1939

Penn. Anthracite
T otal, incl. colliery
1,194,000 1,224,000
fuel . a ______
199,000 204,000
D aily a v e ra g e ..
C om m , prod’t ’ n .b 1,134,000 1,163,000
Beehive Coke—
United States total
65,300
48,800
8,133
10,883
D aily a v e ra g e ..

Oct. 22,
1938

1939

1938 c

1929 c

864,000 41,753,000 36,729,000 58,116.000
169,400
235,800
144,000
149,000
821,000 39,666,000 34,893,000 53,932,000
14,200
2,367

641,600
2,556

696,200
2,774

5,497,500
21,902

a Includes washery and dredge coal, and coal shipped by truck from authorized
operations, b Excludes colliery fuel, c Adjusted to make comparable the number
of working days in the three years.

ONE HUNDRED The
—

Volume 149

W E E K L Y P R O D U C T IO N OF CO A L , B Y S T A T ES
(In Thousands o f N et Tons)
(The current weekly estimates are based on railroad carloadings and river ship­
ments and are subject to revision on receipt of monthly tonnage reports from district
and State sources or o f final annual returns from the operators.)

2891

Y E A R S OLD

Commercial & Financial Chronicle—

E S T IM A T E D

d Preliminary,

e Cumulation for ail weeks in calendar year through end of August* Includes street and interurban railways, electrified steam railroads, and mis­
cellaneous Federal and State plants.

September Statistics of Portland Cement Industry
Week Ended

Stale

Oct.
Oct. 14, Oct. 7, Oct. 15, Oct. 16, Oct. 12, Avge.
1939
1939
1938
1937
1929
1923 e

Alaska_____ ______________ _______
Alabama ________________ __ _
Arkansas and Oklahom a____ _
C olorado__________ ______________
Georgia and North Carolina_____
Illinois.................................................
Indiana.......................... .....................
Iow a__________________________ _
Kansas and M issouri____________
Kentucky— Eastern_____________
W estern_______________________
M aryland________________________
M ichigan________________________
M ontana________________________
New M exico__________________
North and South D a k o t a ______
O hio_____________________ _______
Pennsylvania bituminous________
Tennessee_________ ______________
T exas___________________________
U t a h .. ................................................
Virginia_________________________
W ashington_____________________
West Virginia— Southern.a_____
Northern _b_________________
W yom ing________________________
Other western S ta tes.c__________

2
291
92
171
1
1,001
363
81
151
953
188
38
10
82
28
83
535
2,575
128
18
107
375
51
2,268
70?
136
*

2
289
86
162
1
1,068
362
96
14?
9E2
212
3b
10
86
25
7.5
523
2,418
122
17
95
36?
43
2,176
680
147
1

3
237
61
121
*
832
290
74
112
817
161
27
13
74
31
77
451
1.914
110
IP
85
300
36
1.816
520
121
*

3
263
109
168
1
1,184
384
88
162
873
190
32
16
77
37
74
558
2.350
115
IP
103
331
44
1,965
568
153
*

1,318
376
83
160
1,051
340
56
18
82
54
s43
568
3,056
104
22
137
268
47
2,283
817
170
s8

398
88
217
s
1,558
520
116
161
764
238
35
28
82
58
836
817
3,149
118
26
121
231
68
1,488
805
184
s4

Total bituminous c o a l . . ............
Pennsylvania an thracite.d______

10.430
1,224

10,175
1,245

8,302
1,185

9 ,8 6 '
1,218

11,78?
1.884

11,310
1,968

Total, all coal_________________

11,654

11,420

9,48"

11,08*

13,671

The Portland cement industry in September, 1939, pro­
duced 11,937,000 barrels, shipped 13,104,000 barrels from
the mills, and had in stock at the end of the month 20,160,000
barrels, according to the Bureau of Mines. Production and
shipments of Poitland cement in September, 1939, showed
increases of 13.1 and 11.8% respectively, as compared with
September, 1938. Portland cement stocks at mills were
5.7% lower than a year ago.
The total production for the nine months ending Sept. 30,
1939, amounts to 88,741,000 barrels, compared with 75,742,000 barrels in the same period of 1938, and the total
shipments for the nine months ending Sept. 30,1939, amounts
to 92,527,000 barrels compared with 79,313,000 barrels in
the same period of 1938.
The statistics given here are compiled from reports for
September received by the Bureau of Mines, from all manu­
facturing plants.
In the following statement of relation of production to
capacity the total output of finished cement is compared
with the estimated capacity of 161 plants at the close of
September, 1938 and 162 plants at the close of September,
1939.

t.3.278

s
382
i38
206

R A T IO O F P R O D U C T IO N TO C A P A C IT Y

a Includes operations on the N . & W .; C. & O .: Virginian; K . & M .; B . C. & G .;
and on the B A O. in Kanawha, M ason, and Clay counties,
b Rest of State, in­
cluding the Panhandle District and Grant, Mineral, and Tucker counties, c In­
cludes Arizona, California, Idaho, Nevada, and Oregon, d D ata for Pennsylvania
anthracite from published records o f the Bureau of Mines
e Average weekly rate
for entire m onth, s Alaska, Georgia, N orth Carolina, and South D akota included
with “ other western States.” * Less than 1,000 tons.

Sept., 1938 Sept., 1939 A ug., 1939 July, 1939 June, 1939
49.9%
40.2%

The 12 months ended___

56.3%
45.9%

P R O D U C T IO N , S H IP M E N T S A N D ST O C K S O F F IN IS H E D P O R T L A N D
C E M E N T , B Y D IS T R IC T S , IN S E P T E M B E R , 1938 A N D 1939
(In Thousands of Barrels)

Production

District

Trends of Competing Sources of Power

A V E R A G E W E E K L Y P R O D U C T IO N O F W A T E R P O W E R IN T H E U N IT E D
ST A T E S A N D C O M P U T E D E Q U IV A L E N T IN B IT U M IN O U S CO AL

Monthly Total
( Thousand Kwh.)

Weekly
Weekly Equivalent
Average
Bituminous Coal
(1,000 Kwh) (In Thous. o f Net Tons)

Produced
Including
Produced for Estimate
Public Cse for Private
(.FPC)*
Industrial
Plants

Produced At Constant
Including
Fuel
At Prevail­
Equivalent ing Central
Estimate
for Private o f Approx.
Station
4Lb. per Equivalent b
Industrial
Plants
Kwh.a.

Period

M onthly record—
August, 1938.........
July, 1939. c ______
August, 1939-d . .
Calendar year to date
1929..........................
1938....................... ..
1939______________
Percent of change for
year to date—
Over 1929________
Over 1938________

3,844,806
3,473,092
3,526,851

4,013,761
3,641,047
3,695,806

906,333
822,172
834,537

1,822
1,753
1,677

639
580
589

24,028,035
30,462,607
31,361,293

25,439,798
31,787,581
32,686,267

732,834
915,692
941,580

e51,134
e63,893
e65,699

e21,630
e22,426
e23,060

+ 30.5%
+ 3.0%

+ 28.5%
+ 2.8%

+ 28.5%
+ 2.8%

+ 28.5%
+ 2.8%

+ 6 .6%
+ 2 .8%

a Com puted at 3 pounds of coal per horsepower hour, or 4.02 pounds per kolowatt
hour. This is the average reported by central electric power stations in 1913 and
has been used by the authors for long-tim e historical comparisons running back to
1880, in order to show the relative rate o f increase o f coal and water power, b Com ­
puted at the current average consumption o f central electric power stations, namely,
1.69 pounds in 1929, 1.41 in 1938, and 1.41 (tentative) in 1939. N ote that the
figures for 1938 have been revised to accord with the final statistics published by
the FPC in "E lectric Power Statistics, 1938,” issued in M arch, 1939. This report
gives a final figure o f 1.41 pounds per kilowatt hour in the year 1938. c Revised.




1939

1938

1939

2,209
853
1,264
887
1,295
1,227
1,166
569
685
283
968
531

2,038
713
1,031
958
1,416
1,194
1,343
826
601
305
965
326

2,320
937
1,320
967
1,511
1,279
1,440
826
585
338
961
620

4,217
1,561
2,947
1,899
1,850
1,532
2,192
1,723
862
463
1,343
785

4,057
1,597
2,607
1,600
2,003
1,528
2,041
1,815
822
449
1,155
486

10,559

11,937

11,716

13,104

21,374

20,160

Eastern P a ., N . J. and M d ______
New Y ork and M aine___________
Ohio, Western Pa. and W . V a _
_
M ichigan____________ ___________
W is., 111., Ind. and K y __________
V a., Tenn., Ala., G a., Fla. & L a .
East. M o ., Iowa, M inn. & S. D ak.
W . M o ., N eb., K an., Okla.& Ark.
Texas___________________________
C olo., M ont., Utah, W y o . & Id a.
California____________________ ___
Oregon and W ashington_________
T otal__________________________

1939

Stocks at End
o f Month

Shipments

1,919
561
1,119
753
1,051
1,004
1,142
811
624
259
990
326

1938

In order to throw light on the “ competitive relationships
between bituminous coal and other forms of fuel and energy,”
which the Coal Act requires be considered in establishing
minimum prices, the trend of production of water power is
shown in the table below which has just been released by
the U. S. Department of the Interior.
The table gives the total production of water power from
all sources, including private industrial plants as well as
public utilities and Government projects. It also gives the
fuel equivalent of water power produced in terms of bitu­
minous coal on two alternative assumptions, (1) at a constant
equivalent of approximately four pounds per kilowatt hour,
and (2) at the prevailing equivalent attained by the average
central electric station, which diminishes year by year. The
constant factor has the advantage of permitting direct com­
parison between the increase in kilowatt hours of water
power produced and the corresponding increase (or decrease)
in tons of coal produced. The advantage of the prevailing
factor lies in indicating more nearly the amount of fuel that
would be needed in any one year to generate the same amount
of power in a steam-electric plant, taking into account the
steady progress in combustion efficiency. A just comparison
of the changing contributions of water power and fuel to the
national energy supply would lie somewhere between the
results shown by the constant fuel equivalent and by the
prevailing central-station equivalent in this table.
_It should be noted that much of the hydroelectricity is not
directly competitive with coal. Numerous water power
developments are in regions where the fuel generally used is
oil or gas, and some are in areas where fuel power from any
source would be so much higher in cost as to curtail the
possible consumption of power.
For these reasons it would require an elaborate analysis to
determine even approximately how much coal has been
actually displaced by water power. The production trends
of the two industries, however, are of general interest.

56.5%
44.3%

57.9%
45.0%

56.6%
45.5%

1938

P R O D U C T IO N , S H IP M E N T S A N D ST O C K S O F F IN IS H E D P O R T L A N D
C E M E N T , B Y M O N T H S , IN 1938 A N D 1939
(In Thousands o f Barrels)

Month

Shipments

Production

Stocks at End of
M onth

1938

1939

1938

1939

1938

1939

January___________
February__________
M arch_____________
A pril_______________
M a y _______________
June_______________
July.............................
August____________
September_________

4,534
3,916
5,879
7,983
10,361
10,535
10,968
11,007
10,559
11,556
10,184
8,066

5,301
5,507
8,171
9,674
11,185
11,953
12,644
12,369
11,937

4,390
4,575
7,259
8,691
9,752
10,943
10,164
11,823
11,716
12,357
8,573
6,290

5,640
5,043
8,467
9,654
12,748
12,715
11,755
al3,401
13,104

25,023
24,361
22,979
22,262
22,875
22,467
23,286
22,534
21,374
20,569
22,179
a23,947

23,610
24,092
23,786
23,837
22,251
21,477
22,361
a21,327
20,160

T otal____________

105,548

106.533

a Revised.

Interest in Non-Ferrous Metals for Future Delivery
Wanes— Prices Steady
The Nov. 2 issue of “ Metal and Mineral Markets” re­
ported that inventory buying of major non-ferrous metals
has slackened further during the last week, partly because
prices appear to have stabilized, and there is some uncer­
tainty over actual first-quarter requirements. However,
the spot position in most items continued firm. Producers
now look for larger receipts here of foreign ores that
formerly moved into the European market. Tin was avail­
able at lower prices. The United States Government pur­
chased manganese and tungsten ores during the last week.
The publication further stated:
C opper

Business in domestic copper last week reflected some end-of-month
business, sales totaling 11,932 tons, against 9,371 tons in the previous
week. Sales of copper to domestic consumers in October totaled 67.025
tons against 183,652 tons in September. Some producers view the present
quiet period as temporary and look for demand for forward metal to
appear soon. The domestic quotation remained firm at 12y2c., Valley.
Anxiety was expressed by some producers regarding the possibility of a
reduction in the present 4c. excise tax on copper in a proposed reciprocal
trade agreement with Chile. Senator Vandenberg of Michigan stated in
the Senate on Oct. 31 as follows: “ I raise the question and respectfully
draw it to the attention of the State Department that there is nothing in
the Reciprocal Trade Treaty law, as interpreted by its own sponsors at
the time of its passage, which permits the President and the State Depart­
ment to reach into the excise taxes of the country and reduce them by
executive order through a trade agreement.”
Export copper was available during the week at prices ranging from
12 ^ c . to 13c., f.a.s. New York, depending upon time of shipment.
Statistics covering the movement of copper products from fabricators
to consumers reveal that approximately 73,000 tons of copper were con-

ONE HUNDRED

2 89 2

—

T h e C o m m ercia l & F in a n cia l C h ro n ic le —

tained in materials shipped during September, which compares with 63,000
tons during August.

Lead

Producers of lead reported an orderly market for the metal, domestic
sales booked during the last week totaling 6,079 tons. Quotations were
firm but unchanged at 5.50c., New York, which was also the contract
settling basis of the American Smelting & Refining Co., and at 5.35c.,
St. Louis. Interest in December shipment lead was only moderate.
Workers have been asked to return to their jobs at the Perth Amboy
refinery, but operations in the plant have not yet been resumed. How­
ever, some lead was shipped from that center during the last week.
St. Joseph Lead Co. is bringing about 4,200 tons of lead concentrate
into this country from the Argentine. The concentrate, formerly shipped
to Belgium, will go to the Herculaneum, Mo., smelter in bond.
Zinc

The zinc market passed through a quiet period and sales of the common
grades for the last calendar week involved only 1,768 tons, against 4,193
tons in the previous week. Shipments declined to 4,473 tons, against 6,178
tons in the previous week.
Reports from the Tri-State district state that one smelting interest has
contracted for foreign concentrate and another company is negotiating for
foreign supplies.
Production is increasing, but many mines must be
rehabilitated before additional domestic zinc will become available.
Consumption of Prime Western and High Grade zinc is being maintained
at satisfactory levels. The galvanizing rate held around 79% of capacity.
Prime Western remained unchanged at 6.50c., St. Louis.

Tin

With larger supplies of tin soon to come into this country, the spot
position has eased further. Straits on spot declined to 54c. It was
announced yesterday by the International Tin Committee that production
quotas for the fourth quarter have been raised to 100%.
Straits tin for November arrival was offered at S l ^ c . ; with December
at 50e., January at 48%c., and February at 47^c.
Chinese tin, 99%, was nominally as follows: Oct. 26, 52.50c.; Oct. 27,
52.50c.; Oct. 28, 52.50c.; Oct. 30, 52.50c.; Oct. 31, 52.50c. ; Nov. 1,
52.00c.
DAILY PRICES OF METALS ("E. & M. J.” QUOTATIONS)
Electrolytic Copper

Straits Tin

D o m .,R e fy . E x p ., R efy. N e w York

Oct. 26____
Oct. 27____
Oct. 28___
Oct. 30____
Oct. 31____
Nov. 1__ __

12.275
12.275
12.275
12.275
12.275
12.275

12.700
12.700
12.700
12.700
12.700
12.700

55.750
55.750
55.750
55.500
55.000
54.000

Lead

Z in c

N e w York

St. L ou is

St. L ou is

5.50
5.50
5.50
5.50
5.50
5.50

5.35
5.35
5.35
5.35
5.35
5.35

6.50
6.50
6.50
6.50
6.50
6.50

Average _ _ 12.275
12.700
55.292
5.50
5.35
6.50
Average prices for calendar week ended Oct. 28 are: Domestic copper, f.o.b.
refinery, 12.275c.; export copper, 12.700c.; Straits tin, 55.708c.; New York lead,
5.500c.; St. Louis lead, 5.350c.; St. Louis zinc, 6.500c.; and silver, 35.750c.
The above quotations are “ M. & M. M.'s” appraisal of the major United States
markets, based on sales reported by producers and agencies. They are reduced to
the basis of cash. New York or St. Louis, as noted. All prices are in cents per
pound.
Copper, lead and zinc quotations are based on sales for both prompt and futuredeliveries; tin quotations are for prompt delivery only.
In the trade, domestic copper prices are quoted on a delivered basis; that is,
delivered at consumers’ plants. As delivery charges vary with the destination, the
figures shown above are net prices at refineries on the Atlantic seaboard. Delivered
prices in New England average 0.225c. per pound above the refinery basis.
Export quotations for copper are reduced to net at refineries on the Atlantic
seaboard. On foreign business, owing to the European War, most sellers are
restricting offerings to f.a.s. transactions, dollar basis. Quotations, for the present,
reflect this change in method of doing business.

Due to the European war the usual table of daily London
prices is not available. However, prices on standard tin
were given as follows: Oct. 26, 27, 30, 31 and Nov. 1, spot
£230, and there months £230.

American Commercial Enterprise
The Chamber of Commerce of Morlaix, a
port on the north coast of Brittany, in the
Department of Finisterre, France, have been
occupied recently with the fact, alleged to
threaten total ruin to the agriculture of
that district, that the Americans are intro­
ducing into their country butter equal and
even superior to the home manufactured
article, salted provisions, beeswax, clover
seed, and, in fine, almost all the products of
France itself, which they manage to deliver,
duties paid, at the principal commercial
points, at a cheaper rate than the home pro­
ducers can furnish them. A representation
is proposed to be forwarded to the French
Government with a view to procure the im­
position of increased duties on American
products. The wine growers are protected
by heavy duties on foreign wines, and, al­
though the commercial interest of the wine­
growing provinces are opposed to those of
the Low Breton country, the Bretons argue
that it is the duty of government to accord
to all an impartial exercise of its favors.
HUNT’S MERCHANTS’ MAGAZINE,




September, 1843

Y EAR S OLD

N ov. 4, 1939

World Tin Stocks Increased 4,393 Tons During
September

World stocks of tin increased 4.393 tons during September,
according to a cablegram received by the American Iron
and Steel Institute from the Statistical Office of the Inter­
national Tin Research and Development Council, The
Hague, Holland. The statistical position of the tin stocks
at the end of September as compared with previous periods
is shown in the following table:
W orld ’s Visible Smellers' Stocks
o f T in b
Supply o f T in a
(L ong T ons )
(L ong T ons )

Total Stocks
(L ong Tons)

14,250
50,088
1939—April.. . . . ____________
35,838
43,802
May__ _______________ .
10,934
32,868
39,368
28,815
10,553
June.. ________________
July____________________
28,381
11,116
39,497
9,593
34,608
August___ __ _________
25,015
39,001
September____ _
_ .
9,040
29,961
1938—September.__
13,831
52,768
38,937
a Including carryover Straits and EuroDe (British Tin Smelting Co. excluded),
b Tin in ore and in intermediate products (including carryover British Tin Smelting
Co.).

Steel Reservations for First Quarter Still Piling Up

The “ Iron Age” in its issue of Nov. 2 reported that with
steel prices for the first quarter still not known to the con­
suming trade, an increasing volume of orders for delivery in
that period is being built up on the books of the mills. If
the present flow of business continues, some products will
be sold out for first quarter within another few weeks. The
“ Iron Age” further reported:
In view o f the fact that recent buying was heaviest in sheets and strip
because of the low-priced commitments o f last M ay, it is significant that
these flat rolled products are in greater demand for first quarter shipment
than any other items.
The delay in announcement o f first quarter prices is unexplained, although
opinion seems to be growing among buyers that there may be no hori­
zontal increase but an adjustment o f some prices which are said to be out
of line with costs; for example on galvanized sheets.
Washington pressure against price increases except where absolutely neces­
sary, the conservative statement by President Grace o f Bethlehem Steel
Co. on price policies, and the relatively good earnings reports for third
quarter, with the probability that fourth quarter earnings will be markedly
better, have combined to create an impression that restraint will be exer­
cised by the steel companies in their decisions regarding first quarter quo­
tations. On top of all this, is a feeling o f uncertainty with regard to the
conduct of the European war, suggesting the possibility that Allied pur­
chases in the United States, except for airplains and trucks, may not immediatly come up to some of the more optimistic expectations.
Yet with this uncertainty there is no abatement in the pressure for ship­
ments o f steel. Steel companies are making every effort to supply those
whose needs are most urgent, even to the extent o f asking other customers
to agree to deferred deliveries if they do not require the steel immediately.
It is now fully apparent that some companies accepted more business in
some products for fourth quarter delivery than they can possibly get out,
which means that o f necessity some o f these orders must be completed
after Jan. 1.
A survey of steel consumers and distributers by the “ Iron Age” shows
that at the present time there are no excessive inventories of finished steel;
in fact, the consumers whose requirements are not yet adequately taken
care of seem to outnumber those that are in a fairly comfortable position.
With a continuance of present conditions, the first quarter requirements
o f all of the major consumers of steel probably will be as large in the first
quarter as in the present quarter. A possible exception is the automobile
industry, which will take in before the end o f this year virtually all of the
hot rolled steel it has on order, leaving cold rolled sheets, which comprise
about 60% o f its total steel consumption, as the principal item to be de­
livered during the first quarter. The automobile companies are making
astonishing sales gains and production is advancing despite the retarding
influence o f the Chrysler strike.
A considerable part of the railroad tonnage that has recently been placed,
particularly the rails and track accessories, will be rolled in the next quarter.
The Tennessee Coal, Iron & Railroad C o., for example, has shut down its
Ensley rail mill until December in order to divert raw steel to other depart­
ments; the most urgent rail orders having been completed. The bulk of
the railroad buying appears to have been done for the present, but some
orders are still being placed for equipment and rails.
The “ Iron Age” estimates ingot production for the current week at 93% ,
one point above last week’s estimated rate. Only one loss has occurred, a
decline o f one point in the Youngstown area, but the Pittsburgh rate is
93% , only one point below the 1937 peak, while the Chicago rate is two
points higher at 9 1 K % , the Eastern Pennsylvania rate has risen two points
to 81% . and Buffalo production is again at 92% following a loss last week
because of furnace repairs.
This week’s production will be about 1,270,000 tons, which is in excess
o f the all-time peak weekly average of 1,193,284 tons in M ay, 1929, when
the industry operated at 102% o f the then existing capacity. October
output may slightly exceed the record-breaking monthly total o f 5,286,246
tons in M ay, 1929.
With the probability of continued high operations for some time to come,
scrap markets have recovered somewhat from their recent weakness. At
Chicago there has been a stiffening o f prices which has raised the “ Iron Age”
scrap composite 8c. to $20-96 after three consecutive weekly declines.
The export market is firmer because o f the psosibility o f renewed buying
by Great Britain and Japan.
The Savino Furnace Co., a producer o f ferromanganese has announced
an advance to $110 a ton, effective N ov. 1, on all new contracts and spot
THE “ IRON AGE” COMPOSITE PRICES
Finished Steel
Oct. 31, 1939, 2.236c. a Lb.
[Based on steel bars, beams, tank plates.
One week ago.........................
2.236c.jwire, rails, black pipe, sheets, and hot
One month ago________________ 2.236c. [ rolled strips. These products represent
One year ago__________________ 2.286c. I 85%. of the United States output.
H igh

1939...................................- ................. 2.286c.
1938........................................................2.512c.
1937........................- ............................ 2.512c.
1936....................................................... 2.249c.
1935..............
2.062c.
1934.....................................
2.118c.
1933.........._................... ......................1.953c.
1932..........
1.915c.

Jan.
May
Mar.
Dec.
Oct.
Apr.
Oct.
Sept.

3
17
9
28
1
24
3
6

Low

2.236c.
2.211c.
2.249c.
2.016c.
2.056c.
1.945c.
1.792c.
1.870c.

May
Oct.
Mar.
Mar.
Jan.
Jan.
May
Mar.

16
8
2
10
8
2
2
15

ONE HUNDRED

Volume 149

—

T h e C o m m e r cia l & F in a n cia l C h r o n ic le —

Pig Iron
Oct. 31. 1939, $22.61 a Gross Ton
[Based on average tor basic iron at Valley
One week ago..............
$22.61-1 furnace and foundry Iron at Chicago,
One month ago__________________ 22.611 Philadelphia, Buffalo, Valley, and
One year ago__________________ 20 61 [ Southern iron at Cincinnati.

YE A R S OLD

2893

Aug. 7........ 60.1%
Aug. 14____ 62.1%
Aug. 21........ 62.2%
Aug. 28........ 63.0%
Sept. 4____ 58.6%
Sept. 11____ 70.2%
Sept. 18____ 79.3%
Sept. 25........ 83.8%
Oct. 2........ 87.5%
Oct. 9........ 88.6%
Oct. 16____ 90.3%
Oct. 23____ 90.2%
Oct. 30____ 91.0%

Railroads continue a high light of steel demand, eclipsing the automotive
industry, at least temporarily, in view o f strike-hampered operations of
the latter. Headed by 69,700 tons for the Santa Fe railroad, last week’s
rail orders exceeded 160,000 tons, in addition to a large tonnage of ac­
cessories.
Rail buying is far ahead o f volume a year ago, most of the gain resulting
from the fact the carriers did not start to enter the market for 1939 needs
until November. Bulk o f the tonnage was booked the first quarter this
year. Fear of delays in shipments has prompted the roads to contract for
1940 rails sooner than usual and also has been a factor in stimulating freight
car buying. Last week’s car awards totaled 3,200, including 1,500 for the
Baltimore & Ohio and 1,400 for the Northern Pacific.
Some automotive parts interests have curtailed output either because
of closures by strikes or because o f the Chrysler shutdowns. This has
lifted some of the pressure for steel shipments, but active demand in other
directions has prevented any letdown in deliveries. Automobile assemblies
last week totaled 78,105 units, a gain o f 8,000 over the previous week’s
revised figure, and comparing with 73,335 a year ago. Brisk retail demand
would push output well over 100,000 units were it not for labor troubles.
First sizable foreign business in military equipment has appeared in the
form o f several thousand trucks placed by the French Government.
Bookings of export steel continue restricted by the crowded condition
o f mill schedules the next 60 days. Foreign tonnage is expected to occupy
a more prominent position on order books next quarter, in view o f avail­
ability of such business at fairly attractive prices.
Inquiries from domestic buyers regarding first quarter quotations continue
numerous, but opening of books is deferred. Meanwhile, softening of the
scrap market has halted for the time being the threat o f additional cost
increments from that direction, although the higher prices paid for old
material in recent weeks will become increasingly prominent in cost figures
as this tonnage is consumed. “ Steel’s” scrap composite dipped 17 cents
last week to $20.83, but prices are resisting a further decline in a number
of districts.
Tin plate output is holding at 95% and apparently has reached a peak,
since additional capacity is not available for use immediately. Little
business has been taken for first quarter delivery.
Fig iron shipments are sustained at the year’s best rate, influenced by
increased consumption and inventory additions. Talk is heard is some
districts of possibly another price increase, but such action may be regulated
by what revisions are made in steel quotations.
Most changes in district steelmaking last week were small. Pitts burgh
was up 2 points to 91%: Chicago rose 1 point to 90; Youngstown declined 2
points to 92. Other increases included 244 points to 8844 at Buffalo; 4
points to 94 at Birmingham; 6 points to 78% in eastern Pennsylvania; and 3
points to 80 at St. Louis. New England was off 10 points to 90 and Detroit
dropped 1 point to 95. Unchanged areas were Wheeling at 93, Cleveland
at 90, and Cincinnati at 88.

“ Steel” of Cleveland in its summary of the iron and stee^
markets on Oct. 30, stated:

Steel ingot production for the week ended Oct. 30 is placed
at 91% of capacity, according to the “ Wall Street Journal”
of Nov. 1. This compares with 91% in the previous week
and 8 9 % % two weeks ago. The “ Journal” further reported:

H igh

1939-................
1938 ..................
1937 ______
1936 .........
1935............
1934 .......
1933-........
1932 ______

Low

.$22.61 Sept. 19
$20.61 Sept. 12
23.25 June 21
19.61 July 6
23.25 Mar. 9
20.25 Feb. 16
19.73 Nov. 24
18.73 Aug. 11
18.84 Nov. 5
17.83 May 14
17.90 May 1
16.90 Jan. 27
16.90 Dec. 5
13.56 JaD. 3
14.81 Jan. 5
13.56 Dec. 6
Steel Scrap
Oct. 31, 1939, $20,896 a Gross Ton [Based on No. 1 heavy melting steel
One week ago________________ $20.875[ quotations at Pittsburgh, Philadelphia,
One month ago__________________22.501 and Chicago.
One year ago_____________ ____ 14.42 [
H igh

1939 ....................................................._$22.50
1938 ___
15.00
1937 .........
21.92
1936-........................- ............................ 17.75
1935 ...................................................... 13.42
1934........................................................ 13.00
1933 .....
12.25
1932.......
8.50

Oct.
Nov.
Mar.
Dec.
Dec.
Mar.
Aug.
Jan.

3
22
30
21
10
13
8
12

Low

$14.08
11.00
12.91
12.67
10.33
9.50
6.75
6.43

May 16
June 7
Nov. 10
June 9
Apr. 29
Sept.25
Jan. 3
July 5

The American Iron and Steel Institute on Oct. 30 an­
nounced that telegraphic reports which it had received
indicated that operating rate of steel companies having
97% of the steel capacity of the industry will be 91.0% of
capacity for the week beginning Ocl. 30, compared with
90.2% one week ago, 87.5% one month ago, and 56.8% one
year ago. This represents an increase of 0.8 point, or
0.9%, from the estimate for the week ended Oct. 23, 1939.
Weekly indicated rates of steel operations since Oct. 3, 1938,
follow:
1938

1939—

Jan. 9-- ..-51.7%
Jan. 16- - ...52.7%
Jan. 23.. ...51.2%
Jan. 30 . . ...52.8%
Feb. 6_. ..53.4%
Feb. 13.. -.54.8%
Feb. 20-. -.53.7%
Feb. 27.. -.55.8%
Mar. 6._ -.55.1%
Mar. 13.. -.55.7%
Mar. 20-. -.55.4%
Mar. 27... -.56.1%
Apr. 3 ... -.54.7%
1939—
Apr. 10... -.52.1%
Jan. 2____ 50.7% Apr. 17... -.50.9%
Oct. 3____ 47.9%
Oct. 10____ 51.4%
Oct. 17........ 49.4%
Oct. 24____ 53.7%
Oct. 31____ 56.8%
Nov. 7........ 61.0%
Nov. 14........ 62.6%
Nov. 21........ 61.9%
Nov. 28____ 60.7%
Dec. 5____ 59.9%
Dec. 12____ 57 6%
Dec. 19........ 51.7%
Dec. 26........ 38.8%

1939—

Apr.
May
May
May
May
May
June
June
June
June
July
July
July
July
July

24..
l._
8 ..
15..
22..
29..
5 ..
12..
19..
26..
3-.
10-17..
24..
31..

...48.6%
...47.8%
...47.0%
...45.4%
...48.5%
...52.2%
...54.2%
..53.1%
..55.0%
..54.3%
-.38.5%
-.49.7%
-.56.4%
-.60.6%
...59.3%

1939—

Steel markets are more orderly. Insistence o f buyers for shipments
continues, but heavier deliveries are commencing to satisfy more urgent
needs and new orders are largely for next quarter delivery.
Little additional business is being accepted for shipments by Dec. 31 in
bars, plates, wire and flat-rolled steel. While capacity in these products
is almost completely filled for remainder o f the year, some producers still
able to offer tonnage in sheets and plates are obtaining premiums of $5 a
ton for early delivery.
First quarter bookings continue to increase despite absence o f definite
prices. Buyers are more confident they will escape large price advances
but are anxious to be assured o f deliveries.
Ingot production is tending to level off as additional plants reach capacity
and as forced shutdowns for repairs frequently find no idle furnaces avail­
able for substitution. Steelmaking last week rose 1 point to 92%, highest
capacity engagement since August, 1929, and largest weekly tonnage in
history. A year ago the rate was 5444- Another blast furnace has been
blown in at Pittsburgh, giving the district 41 active stacks out of 50.
Requests o f steel buyers for quickened deliveries and orders to ware­
houses for tonnages which normally are placed with mills attest to the
current and prospective increase in consumption.

U. S. Steel is estimated at 8944%, against 89% in the week before and
8644% two weeks ago. Leading independents are [credited with 9144%,
compared with 91 44% in the preceding week, and 91% two weeks ago.
The following table gives a comparison of the percentage o f production
with the nearest corresponding week of previous years, together with the
approximate changes, in points, from the week immediately preceding:
In d u stry

1939 _____________
1938 _____________
1937 _____________
1936 _____________
1935 _____________
1934 _____________
1933 _____________
1932 _____________
1931_____________
1930 _____________
1929 _____________
1928 _____________
1927 _____________

91
54
52
73
5243
27
29
1944
30
47
77 4
4
87
66

+3
—2
— 44
+ 244
—4 44
— 4
4
+2
—3
—2 44
+1

U . S. Steel

8944
51
43
68 46
42
23 4*
27
18 43
33
52
80
85
69

+ 44
+3
+3
— 44
+ 144
—5
—1
+2
—3
—2 44
—1
+2

Indep endents

9144
56
60
78
6244
29 4
4
30
20
28 44
44
75

+3
—7
+ 4
— 4
+ 34
—6
— 4
+2
—3
—3

64

+1

8
8

The Egg Trade of Cincinnati
Every day develops some new illustration of the enterprise of our people. The ice trade of the east
has grown up in a few years to importance, employing a considerable amount of tonnage, as will be seen by
reference to former numbers of this Magazine. In the west, the egg trade bids fair to rival it. The business
in that fragile commodity, as we gather from the Cincinnati “ Gazette,” is quite an item in the sum of her
productive industry. One firm alone, in Cincinnati (Townsend & Co.), during the first six months of 1845
shipped to New York 234 barrels of eggs; to Baltimore, 70 barrels; and to New Orleans, 3-976 barrels! Each
barrel contains 90 dozen, which makes the aggregate shipment 4,624,400 eggs! During the year ending as
above, the egg trade of this firm amounted to $36,144.60. There are five other houses in Cincinnati engaged
in the business. The foreign egg trade of Cincinnati, the past year, has amounted to 10,700 barrels, which
is 963,000 dozen, or 11,556,000 eggs! The aggregate value of this trade for the year, according to the data
here given, is $90,361.50. The business is a very hazardous one, owing to the great fluctuations in the New
Orleans market. In the course of the past year, for example, western eggs have sold there as high as $22 per
barrel, and as low as $3. In addition to this export trade, these establishments do also a heavy home trade.
That of Townsend & Co. supplies regularly five steamboats with 36 barrels a tr.p; which, at 12 trips a year,
is 432 barrels. It also furnishes constantly the consumption of several of the largest hotels, which use at
least 260 barrels per year, and does a retail business amounting to not less than 33 barrels per year. These
several amounts make 725 barrels to add to the 4,280 barrels shipped; which gives an aggregate of 5,005 bar­
rels, or 450,450 dozens, as the annual trade of this one house. Besides this, the annual city consumption
is estimated at 1,213,333 dozen. A further recapitulation shows the following results as to value:
V a lu e o f 10,700 barrels o f egg s sh ip p e d from t h is p o r t, a t $8.4444 per b b l _______________________
V a lu e o f 1,213,333 d o ze n eggs c o n su m ed in t h is c it y , a t 8 ce n ts per d o z e n ______________________

$90 361.50
9 7,066.64

T o ta l a n n u a l valu e of th e egg tra d e of C in c in n a t i______________________________________________

$187 ,42 8.14




HUNT’S MERCHANTS’ MAGAZINE— September, 1845

2 89 4

ONE HUNDRED

—

The Commercial & Financial Chronicle —

YE A R S OLD

N ov. 4, 1939

Current Events and Discussions
The Week with the Federal Reserve Banks
During the week ended Nov. 1 member bank reserve bal­
ances decreased $136,000,000. Reductions in member bank
reserves arose from increases of $50,000,000 in money cir­
culation, $20,000,000 in Treasury cash, $23,000,000 in Treas­
ury deposits with Federal Reserve banks, and $99,000,000
in non-member deposits and other Federal Reserve accounts,
and a decrease of $6,000,000 in Reserve bank credit, offset
in part by increases of $60,000,000 in gold stock and
$3,000,000 in Treasury currency. Excess reserves of mem­
ber banks on Nov. 1 were estimated to be approximately
$5,380,000,000, a decrease of $150,000,000 for the week.
The principal change in holdings of bills and securities
was a decrease of $15,000,000 in holdings of United States
Treasury bills.
The statement in full for the week ended Nov. 1 will be
found on pages 2924 and 2925.
Changes in the amount of Reserve bank credit outstand­
ing and related items were as follows:
In crease

1, 1939
S
6,000,000
..............

N ov .

Oct.

(+ )

or D ecrea se (—)
Since
N o v . 2, 1938

25, 1939
§
.............
.............

S
—2,000,000
—1,000,000

Bills discounted..............................
Bills bought.....................................
U. S. Govt, securities, direct and
guaranteed..........................
2,721,000,000
Industrial advances (not including
$10,000,000 commit’ts—Nov. 1)
12,000,000
Other reserve bank credits...............
26,000,000

—15,000,000 +157,000,000

Total Reserve bank credit. 2,765,000,000
Gold stock............................
17,099,000,000
Treasury currency................ 2,932,000,000

—6,000,000 +183,000 000
+60,000,000 +3,028,000,000
+3,000,000 +180,000,000

.............
+8,000,000

—3,000,000
+32,000,000

Member bank reserve balances_11,814,000,000 —136,000,000
+3,128,000,000
Money in circulation_______ 7,352,000,000
+ 50,000,000 + 646,000,000
Treasury cash..................
2,250,000,000
+20,000,000 —501,000,000
Treasury deposits with F. R. banks _ 349,000,000 +23,000,000 —227,000,000
Non-member deposits and other Fed­
eral Reserve accounts____ l.C31,COO.OOO
+99,000,000 +345,000,000

Returns of Member Banks in New York City and
Chicago— Brokers’ Loans

Below is the statement of the Board of Governors of the
Federal Reserve System for the New York City member
banks and also for the Chicago member banks for the cur­
rent week, issued in advance of full statements of the mem­
ber banks, which will not be available until the coming
Monday:
ASSETS AND LIABILITIES OF WEEKLY REPORTING MEMBER BANKS
IN CENTRAL RESERVE CITIES
(In Millions o t Dollars)
------New York City------------------Chicago----------N o v . 1, Oct. 25, N o r . 2, N o v . 1, Oct. 25, N o r . 2,
1939
1939
1939
1938
1939
1938
$
A ssets —
$
S
8
S
S
Loans and investments—total-. 8,679 8,614
7,797 2.086 2,090
1,935
Loans—total________________ 2,955 2,936
521
2,968
561
558
Commercial, industrial and
agricultural loans____ ___ 1,672
1,663
1,433
383
379
338
Open market paper_________
117
141
115
18
19
20
Loans to brokers and dealers in
securities_______________
472
467
578
27
36
28
Other loans for purchasing or
carrying securities______
180
179
199
67
67
66
114
Real estate loans___________
114
14
14
119
11
Loans to banks____________
24
23
86
Other loans____ __________
376
375
412
52
52
49
462
411)
Treasury bills_________ _____
129)
f 123
Treasury notes.. ___________
835
814) 2,902
957
(250
250 iUnited States bonds____ ___ 2,161
2.160J
(667
669J
Obligations guaranteed by
United States Government__ 1.121
1,119
796
■ 154
156
131
1,145
1.174
1,131
329
326
Other securities__________ ___
330
3,821
Reserve with Fed. Res. banks__ 5,560 5,761
934
1,127
1,128
74
41
Cash in vault________________
78
61
33
40
72
72
212
Balances with domestic banks..
78
247
246
372
442
375
51
Other assets—net____________
48
47
Liabilities —
1,826
Demand deposits—adjusted___ 8,212 8,356 6,601
1,818
1,673
662
666
619
419
500
465
Time deposits.. ___________
49
62
United States Govt, deposits__
48
118
63
63
Inter-bank deposits:
3,440 3,387 2,577
871
867
685
Domestic banks______ ____
651
12
729
418
16
Foreign banks_________ —
___
2
___
___
__8
Borrowings__________________
242
259
375
15
15
Other liabilities______ . ____
17
1,489
1,480
269
266
255
Capital accounts . .
1,4~6

Complete Returns of Member Banks of the Federal
Reserve System for the Preceding Week

As explained above, the statements of the New York and
Chicago member banks are given out on Thursday, simul­
taneously with the figures of 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 can­
not be compiled.
In the following will be found the comments of the Board
of Governors of the Federal Reserve System respecting the
returns of the entire body of reporting member banks of the
Federal Reserve System for the week ended with the close
of business Oct. 25:
The condition statement o f weekly reporting member banks in 101
leading cities shows the following principal changes for the week ended
Oct. 25: Increases o f $45,000,000 in loans to brokers and dealers in securi­
ties, $58,000,000 in holdings o f Treasury bills, and $154,000,000 in demand
deposits adjusted.
Commercial, industrial and agricultural loans increased $6,000,000.
Loans to brokers and dealers in securities increased $37,000,000 in New




York City and $45,000,000 at all reporting member banks. Other loans
for purchasing or carrying securities increased $9,000,000 in New York City.
Holdings o f Treasury bills increased $53,000,000 in New York City and
$58,000,000 at all reporting member banks. Holdings o f Treasury notes
increased $38,000,000 in New York City and $19,000,000 at all reporting
member banks, and declined $12,000,000 in the Richmond district and
$8,000,000 in the Cleveland district. Holdings of United States Govern­
ment bonds declined $11,000,000 in New York City, $10,000,000 in the
Chicago district, and $23,000,000 at all reporting member banks. Hold­
ings o f “ other securities” declined $17,000,000 in New York City and
$18,000,000 at all reporting member banks.
Demand deposits-adjusted increased $100,000,000 in New York City,
$31,000,000 in the Chicago district and $154,000,000 at all reporting
member banks. Time deposits increased $9,000,000 in New York City and
$12,000,000 at all reporting member banks.
Deposits credited to domestic banks declined $13,000,000 each in the
Kansas City and San Francisco districts and $31,000,000 at all reporting
member banks. Deposits credited to foreign banks increased $22,000,000
in New York City and $23,000,000 at all reporting member banks.

A summary of the principal assets and liabilities of re­
porting member banks, together with changes for the week
and the year ended Oct. 25, 1939, follows:
In crease

25. 1939
A ssets —
S
Loans and investments—total___ 22,657,000.000
Loans—total__________________ 8,479,000,000
Commercial, industrial and agri­
cultural loans______________ 4,292,000,000
Open-market paper__________
318,000,000
Loans to brokers and dealers in
securities__________________
593,000,000
Other loans for purchasing or
carrying securities__________
510,000,000
Real estate loans_____________ 1,180.000.000
Loans to banks______________
32,000,000
Other loans_________________ 1,554,000.000
Treasury bills_________________
629,000,000
Treasury notes________________ 2,145,000 000
United States bonds____________ 5,854,000,000
Obligations guaranteed by United
States Government___________ 2,226,000,000
Other securities________________ 3,324,000,000
Reserve with Fed. Res. banks_____10,094.000,000
Cash in vault__________________
487,000,000
Balances with domestic banks___ 3,090,000,000
Oct.

Liabilities —
Demand deposits—adjusted_18,721,000.000
Time deposits___________ 5,251,000,000
United States Government deposits 538,000,000
Inter-bank deposits:
Domestic banks_______ 7.852,000,000
820.000,000
Foreign banks_________
Borrowings______________
1,000,000
a Oct. 18 figures revised (New York district).

(+ )

or D ecrea se
Since

(—)

Oct. 26, 1938
18. 1939
$
$
+ 94,000.000 + 1,164,000.000
+ 56,000,000 + 133,000,000

Oct.

+ 2 , 000,000

+ 6 .000,000

+ 385,000,000
—27,000,000

+ 45,000.000

— 135,000,000

+ 9,000,000

—62,000.000
+ 15.000.000
—71,000.000
+ 28,000,000

—
—
—

1 , 000.000
1 , 000.000
1 . 000,000

+ 58,000.000)
+ 19,000.0001 +474,000,000
—23.000.000J
— 18,000.000

+ 539,000.000
+ 18.000,000

+ 7,000,000
a + 3,000,000

+49,000.000
+ 595,000,000

+ 2 .000,000

+

66 , 000.000 +2,894,000,000

+ 154,000,000 +2,726,000,000
+ 12,000,000
+95.000,000
+ 1 , 000,000

— 8 , 000,000

—31,000,000 +1,656,000.000
+ 23,000,000 +328,000,000
.........................

—

2 , 000,000

Polish Government Informs United States It Considers
Germany’s Annexation of Polish Provinces as
Illegal Act

The Polish Government informed the United States on
Oct. 30 that it considers Germany’s annexation of part of
the Polish Republic as null and void. The note says it
constitutes “a new violation by the Reich of the elementary
principles of international law relating to the conduct of
an enemy in occupied territory.” The notification was
made to Secretary of State Cordell Hull through Polish
Ambassador Count Jerzy Potocki. The Polish note read
as follows:
The Ambassador of Poland presents his compliments to the Secretary of
State and upon instructions of his Government has the honor to inform
him that the Polish Government have learned that the German Reich
decreed the annexation from Nov. 1, 1939, of part of the territory of
the Polish Republic, creating two new provinces called West Prussia and
Posen and enlarging the existing provinces of German-Silesia and East
Prussia.
' The Polish Government declare that this administrative organization
constitutes a new violation by the Reich of the elementary principles of
international law relating to the conduct of an enemy in occupied terri­
tory.
Hence, the Polish Government consider this illegal act as null
and void.

Germany’s annexation of these Polish provinces was
mentioned in our issue of Oct. 21, page 2437.
Latvian-American Chamber of Commerce Clarifies
Recent Agreement Made Between Latvia and
Russia

In response to inquiries from American business men as
to the status of trade relations and shipping facilities between
the United States and Latvia, the board of directors of the
Latvian-American Chamber of Commerce recently under­
took to clarify the agreement made Oct. 5 between Latvia
and Soviet Russia, which it said was not generally understood.
The Chamber’s explanation follows:
The Soviet-Latvia Mutual Aid and Non-Aggression Treaty has in no
way affected the sovereign rights and independence o f Latvia and does
not in any way interfere with its trade relations with any other nation.
Nor are the economic, social or industrial systems interfered with.
The purpose o f the treaty is one o f mutual assistance against aggression
by any European power for which purpose certain parcels o f land are
leased to the U. S. S. R. by Latvia for the establishment o f air and naval
defeiisas for which the Russian Government pays a rental. The term of
the treaty is 10 years.
No restrictive regulations have been established except those brought
about by the present war -which, o f course, are for the curation o f the
conflict.

Volume 149

ONE HUN DRED The
—

Commercial & Financial Chronicle —

Because o f the unsettled shipping conditions from Europe, the LatvianAmerican Line has wit hin this month increased the number o f ships plying
between Riga, Latvia, to the United States from one to five and hopes to
increase its facilities as the demand requires.
Latvia’s neutrality puts her in an important and advantageous position
for increased trade with other neutral nations. The port o f Riga is now
considered an excellent port for trans-shipping and this form o f commerce
is developing rapidly.
The Latvian-American Chamber o f Commerce is keeping American
manufacturers and business men posted on commercial relations who find
this service very helpful during these disturbed times, when clarification
o f existing trade procedure is necessary.

The signing and text of the agreement was in our issue of
Oct. 7, page 2154.
Freighter City of Flint, Following Departure from Port
of Murmansk, Russia, and Tromsoe, Norway, Re­
ported En Route to Germany in Charge of German
Prize Crew— Great Britain and Germany Asked by
State Department to Assure Safety of American
Crew
The State Department at Washington on Oct. 31 asked
both Great Britain and Germany to avoid any action which
might imperil the 40 members of the captive American crew
aboard the freighter City of Flint, which left the port of
Murmansk, Russia, on Oct. 27, in charge of the German
prize crew which had captured the vessel, as noted in our
Oct. 21 issue, page 2G12. On Oct. 30, according to United
Press accounts from Copenhagen, Denmark, the freighter
sailed from Tromsoe, Norway, headed for a German port
through Great Britain’s naval blockade. The Copenhagen
United Press advices further said, in part:
Captain Joseph A Gainard and his American crew o f 40 men were prisoners
aboard their ship as she set out to run the gauntlet o f British warships in
the North Sea with a German prize crew in command, Tromsoe dispatches
said.
The City o f Flint put out into a rainy and heavy sea at 4 p. m ., sup­
posedly heading down the Skagerrak into the mine-infested waters o f the
Danish Straits.
The ship, captured in the Atlantic on Oct. 9 by the pocket battleship
Deutschland, arrived in Tromsoe shortly after noon from the Russian port
o f Murmansk on the Arctic Sea, where she was interned temporarily.
The American ship, putting in a second appearance at Tromsoe since her
capture, entered the Norwegian northern port under the Nazi flag and
asked Norwegian authorities to notify the German Consul there that sup­
plies were needed.
The consul, Henrik Jebens, went aboard the vessel, found the American
crew on board and talked with the Germans.
Norwegian authorities, reluctant to become involved in a situation which
already has stirred up American indignation against both Germany and
Russia, ordered the vessel to be taken out o f the Tromsoe Roads without
delay.
The City o f Flint sailed— without taking on supplies o f any kind—
Herr Jebens said, with a Norwegian warship escorting her out of territorial
waters.

On Oct. 28 the State Department issued a statement
relative to the seizure of the Flint, in which it referred to
the Soviet Government as “ withholding adequate coopera­
tion with the American Government with respect to assem­
bling and disclosing to the American Embassy in Moscow
the essential facts pertaining to the landing, the where­
abouts and welfare of the American crew; by the facts that
it was first alleged by the German authorities that the need
for charts was the ground for bringing the vessel into port;
and by the fact that later this ground seems to have been
abandoned and a new ground or theory relating to defective
machinery was set up.
In indicating on Oct. 31 that the United States Govern­
ment through the State Department was informing Great
Britain and Germany of its expectation that all belligerents
would guard against exposing the Americans on the City of
Flint to unnecessary dangers, United Press accounts from
Washington on that date added:
Instructions have been forwarded to the London and Berlin embassies
also to make representations o f this Government’s concern for the safety
of the Flint’s American crew.
The United States representations emphasized the grave concern that
officials feel for the safety o f the Americans.
Secretary o f State Cordell Hull said yesterday that every step was being
taken that could be calculated to contribute most to the safety o f the
Americans and showed concern for their welfare.

$152,000 of City of Antwerp External Loan 5% Gold
Bonds Drawn for Redemption
The National City Bank of New York as fiscal agent, is
notifying holders of City of Antwerp external loan sinking
fund 5 % gold bonds due Dec. 1, 1958, that there has been
drawn by lot for redemption on Dec. 1, 1939 through opera­
tion of the sinking fund, 8152,000 principal amount of these
bonds. Payment of the drawn bonds at par will be made on
and after Dec. 1, 1939, at the head office of the Bank,
55,,Wall Street, New York City.
Hungary to Redeem Nov. 1 Coupons on Two Bond
Issues
The Cash Office of Foreign Credits, at Budapest, Hun­
gary, announced Nov. 1 through its central paying agents in
New York, Schroder Trust Co., that it will redeem coupons
due Nov. 1, 1939 on the following bonds at the rate of $8.75
per coupon detached from a $1,000 bond: Hungarian Land
Mortgage Institute 7 K % sinking fund land mortgage gold
bonds series “ A ” and series “ B ” dollar bonds; and National
Hungarian Industrial Mortgage Institute Ltd. first mort-




YE A R S OLD

2895

gage sinking fund 7 % gold bond series “ A ” dollar issue.
Coupons presented in acceptance of this offer, which ex­
pires April 30, 1940, and which is made only to persons
resident outside of Hungary, must be transmitted to Schro­
der Trust Co., 46 William St., New York.
$38,590 Available for Payment on Kingdom of Yugo­
slavia 5% Funding Bonds Due Nov. 1, 1956— $15,819 To Be Paid on Second Series of Bonds
The Chase National Bank, New York, acting for the fis­
cal agents under Kingdom of Yugoslavia (formerly King­
dom of the Serbs, Croats and Slovenes) general bond dated
Nov. 1, 1932, is notifying holders o f 5 % funding bonds due
Nov. 1, 1956, and fractional certificates for these bonds,
that it will receive up to noon on Nov. 9,1939 written pro­
posals for the sale to it of bonds and certificates in an amount
sufficient to exhaust the sum of $38,590 available in the
sinking fund. The announcement in the matter also states:
Proposals should be made at a price based on principal alone, exclusive
o f accrued interest, which will be added to the stated price, and no pro­
posals will be accepted at a price in excess o f the principal amount and
accrued interest.
The Chase National Bank, acting for the fiscal agents, will alsorecieve
proposals up to noon on N ov. 10, 1939 for the sale to it o f the Kingdom’s
5% funding bonds, second series, due N ov. 1, 1956, and fractional certifi­
cates, on the same basis, in an amount sufficient to exhaust the sum of
$15,819 available in the sinking fund.

Redemption of $588,380 of Republic of Cuba Sugar
Stabilization 5J^% Gold Bonds on Dec. 1
The Chase National Bank, New York, as trustee, is noti­
fying holders of Republic of Cuba sugar stabilization sink­
ing fund 5 ^ % secured gold bonds, due Dec. 1, 1940, that
there has been called by lot for redemption on Dec. 1, 1939,
$588,380 principal amount of these bonds, at par and ac­
crued interest, for the sinking fund. Payment of the drawn
bonds will be made on and after Dec. 1, at the principal
New York office of The Chase National Bank or The Nat­
ional City Bank, or at their Havana, Cuba, offices.
New York Stock Exchange Rules on Greek Government
40-Year 7% Gold Bonds
The New York Stock Exchange on Oct. 31 issued the fol­
lowing rulings on Greek Government 40-year 7% secured
sinking fund gold bonds, due 1964:
NEW Y O R K STOCK EXCH ANGE
Committee on Floor Procedure
O c t o b e r , 31, 1939.
Notice having been received that payment o f $14 per $1,000 bond will
be made on presentation for stampting of the coupon due N ov. 1, 1939,
from Greek Government 40-year 7% secured sinking fund gold bonds due
1964:
The Committee on Floor Procedure rules that the bonds dealt in under
option (b) below, be quoted ex-interest $14 per $1,000 bond on N ov. 1, 1939:
That the bonds shall continue to be dealt in “ Flat” and to be a delivery
in settlement o f Exchange Contracts made beginning N ov. 1, 1939, must
carry the coupons as follows:
(a) M ay 1, 1933, and N ov. 1, 1933, coupons, ($9.62 paid). M ay 1, 1934,
and N ov. 1, 1934, coupons, ($12.25 paid), M ay 1, 1935, to N ov. 1, 1936.
coupons, inclusive, (40% paid), and subsequent coupons;
(b) M ay 1, 1933, and N ov. 1, 1933, coupons, ($9,62 paid), M ay 1,
1934, and N ov. 1, 1934, coupons, ($12.25 paid), M ay 1, 1935, to N ov. 1,
1939, coupons, inclusive, (40% paid), and subsequent coupons: and
That contracts made without specification shall be considered to have
been for bonds under option (a).
CHARLES E. SALTZM AN,
V ic e -P r e s id e n t a n d S ecr e ta ry .

Tenders of Italian Public Utility Credit Institute
External 7% Gold Bonds Invited to Exhaust Funds
in Sinking Fund
City Bank Farmers Trust Co., New York, acting for the
fiscal agents, is inviting tenders of Istituto di Credito per Le
Imprese di Pubblica Utilita (Italian Public Utility Credit
Institute) external 7 % secured sinking fund gold bonds,
hydro-electric issue of Jan. 1, 1926, due Jan. 1, 1952, at
prices not exceeding par and accrued interest, in an amount
sufficient to exhaust any funds available in the sinking fund.
Tenders will be received until noon on Nov. 9, 1939 at the
Corporate Trust Department of the Bank, 22 William St.
Letters of acceptance or declination of the bonds offered will
be mailed by the bank on Nov. 9, and if bonds accepted are
not delivered by Nov. 13, the bank reserves the right to
cancel the acceptance.
Member Trading on New York Stock and New York
Curb Exchanges During Week Ended Oct. 14
The Securities and Exchange Commission made public
yesterday (Nov. 3) figures showing the volume of total
round-lot stock sales on the New York Stock Exchange and
the New York Curb Exchange for the account of all members
of these exchanges in the week ended Oct. 14, continuing a
series of current figures being published weekly by the Com­
mission. Short sales are shown separately from other sales
in the New York Stock Exchange figures. Trading in the
week ended Oct. 14 included only five days since both the
Stock and Curb Exchanges were closed on Columbus Day,
Oct. 12.
The Stock Exchange members traded for their own ac­
count (in round-lot transactions) in amount of 1,397,175

2896

ONE

HUNDRED

—

The Commercial & Financial Chronicle —

YE A R S OLD

N ov. 4, 1939

shares, an amount which was 20.64% of total transactions
of 3,384,530 shares on the Exchange during the week ended
Oct. 14. During the preceding week ended Oct. 7 trading
by the Stock Exchange members amounted to 2,551,015
shares, or 21.14% of total transactions of 6,033,710 shares.
On the New York Curb Exchange, total round-lot transac­
tions for account of all members during the week ended
Oct. 14 were 214,995 shares; as total transactions on the
Curb Exchange during the week amounted to 571,640 shares,
the member trading for their own account was 18.81% of
total transactions, which compares with a percentage of
19.40 in the previous week ended Oct. 7, when member trad­
ing amounted to 350,110 shares and total transactions
902,440 shares.
The figures for the week ended Oct. 7 were given in these
columns of Oct. 28, page 2614. The Commission, in making
available the data for the week ended Oct. 14, said:

Odd-Lot Trading on New York Stock Exchange During
Week Ended Oct. 28
On Nov. 2 the Securities and Exchange Commission made
public a summary for the week ended Oct. 28 of complete
figures showing the volume of stock transactions for the
odd-lot account of all odd-lot dealers and specialists who
handle odd lots on the New York Stock Exchange, continu­
ing a series of current figures being published by the Com­
mission. Figures for the previous week ended Oct. 21 were
reported in our issue of Oct. 28, page 2614. The figures
are based upon reports filed with the Commission by the
odd-lot dealers and specialists.

The data published are based upon weekly reports filed with the New
York Stock Exchange and the New York Curb Exchange by their respective
members. These reports are classified as follows:

O d d - l o t s a le s b y d e a le r s ( c u s t o m e r s ’ p u r c h a s e s ):

New York
Stock
Exchange
T o t a l n u m b e r o t r e p o r t s r e c e i v e d ________________________________
1 . R e p o r t s s h o w in g

New York
Curb
Exchange

S T O C K T R A N S A C T IO N S F O R T H E O D D -L O T A C C O U N T O F O D D -L O T
D E A L E R S A N D S P E C IA L IS T S O N N E W Y O R K S T O C K E X C H A N G E
W e e k E n d e d O c t . 28, 1939

Total
for Week
3 5 ,2 2 8

N u m b e r o f o r d e r s _____________________________________________

1 .0 0 9 . 0 5 3

N u m b e r o f sh a res

792

D o l l a r v a l u e .................................................................................. ..............................................$ 3 5 ,7 7 0 ,3 8 8

t r a n s a c t i o n s a s s p e c i a l i s t s ___________

1 99

101

2 . R e p o r t s s h o w i n g o t h e r t r a n s a c t i o n s I n it i a t e d o n t h e
f l o o r __________________________________________________________

240

3 . R e p o r t s s h o w i n g o t h e r t r a n s a c t i o n s i n it ia t e d o f f t h e
f l o o r __________________________________________________________

224

582

3 5 ,5 2 3

N u m b e r o f sh a res:
C u s t o m e r s ’ s h o r t s a l e s ________________________________________________________
C u s t o m e r s ’ o t h e r s a l e s . a _____________________________________________________

1 1 ,0 H
9 1 8 ,0 6 5

78

547

488
35 035

45

4 . R e p o r t s s h o w in g

O d d - l o t p u r c h a s e s b y d e a l e r s ( c u s t o m e r s ’ s a le s ) :
N u m b e r o f ord ers:
C u s t o m e r s ’ s h o r t s a l e s ________________________________________________________
C u s t o m e r s 'o t h e r s a l e s . a _____________________________________________________
C u s t o m e r s ’ t o t a l s a l e s ______________________________________________________

1 ,0 7 0

n o t r a n s a c t i o n s . . _____________________

Note— O n t h e N e w Y o r k C u r b E x c h a n g e t h e r o u n d - l o t t r a n s a c t i o n s o f s p e c ia lis t s
in s t o c k s in w h ic h t h e y a r e r e g is t e r e d a r e n o t s t r ic t l y c o m p a r a b le w it h d a t a s im ila r ly
d e s ig n a t e d f o r t h e N e w Y o r k S t o c k E x c h a n g e , s i n c e s p e c i a l is t s o n t h e N e w Y o r k
C u r b E x c h a n g e p e r fo r m t h e fu n c t io n s o f t h e N e w Y o r k S t o c k E x c h a n g e o d d -lo t
d e a le r a s w e ll a s t h o s e o f t h e s p e c i a l is t

The number of reports in the various classifications may total more than
the number of reports received because, a t times, a single report may
entries in more than one classification.

ca rry

T O T A L R O U N D -L O T S T O C K S A L E S O N T H E N E W Y O R K S T O C K E X ­
C H A N G E A N D R O U N D -L O T S T O C K T R A N S A C T IO N S F O R A C C O U N T
O F M E M B E R S * (S H A R E S )
W e e k e n d e d O c t . 1 4 , 193 9

Total for
Week
A.

T o t a l r o u n d - l o t s a le s :
S h o r t s a l e s _________________________________________________
O t h e r s a l e s , b ______________________________________________
T o t a l s a le s ______________________________________________________

B.

R o u n d -lo t tr a n s a c tio n s fo r a c c o u n t o f m e m b e r s , e x c e p t fo r
t h e o d d - l o t a c c o u n t s o f o d d - l o t d e a le r s a n d s p e c ia lis t s :
1.
T r a n s a c t io n s o f s p e c i a l is t s in s t o c k s in w h ic h t h e y a re
r e g is t e r e d — T o t a l p u r c h a s e s _______________________________

1 4 8 ,2 2 0
3 ,2 3 6 ,3 1 0

O t h e r t r a n s a c t i o n s in it ia t e d o n t h e f l o o r —T o t a l p u r c h a s e s

3 0 ,3 0 0
1 7 8 ,4 0 0

T o t a l s a l e s __________________________________________________

2 0 8 ,7 0 0
4 2 4 ,8 2 0

3 . O t h e r t r a n s a c t i o n s i n it ia t e d o f f t h e f l o o r - T o t a l p u r c h a s e s

8 0 ,4 2 5

S h o r t s a l e s _____________________________________________________
O t h e r s a l e s . b _________________________________________________

1 1 ,2 5 0
9 9 ,4 1 0

T o t a l s a l e s __________________________________________________

1 1 0 ,6 6 0

T o ta l pu rch a ses a n d

s a le s _____________________________

1 9 1 ,0 8 5

4 . T o t a l — T o t a l p u r c h a s e s _______________________________________

6 7 9 ,1 3 5

S h o r t s a l e s _____________________________________________________
O t h e r s a l e s . b ______ _____________

1 0 7 ,3 7 0
6 1 0 ,6 7 0

T o t a l s a l e s __________________________________________________

7 1 8 ,0 4 0
1 ,3 9 7 ,1 7 5

2 0 .6 4

TOTAL
R O U N D -L O T
STOCK
SALES
ON
THE
NEW
YORK
CURB
E X C H A N G E A N D S T O C K T R A N S A C T IO N S F O R A C C O U N T O F M E M ­
B E R S * (S H A R E S )
W e e k e n d e d O c t . 1 4 , 1939

Total for
Week
A . T o t a l r o u n d - l o t s a l e s ______________________________________________
B . R o u n d -lo t tr a n s a c tio n s fo r a c c o u n t o f m e m b e rs:
1.
T r a n s a c t io n s o f s p e c i a l is t s in s t o c k s in w h ic h t h e y a r e
r e g is t e r e d — B o u g h t _______________________________________
S o l d .................................
T o t a l ............. ...................

7 0 ,5 9 5
8 2 ,8 9 5

T o t a l . ...................................................................................................

1 3 .4 3

3 2 ,7 7 5

3 . O t h e r t r a n s a c t i o n s in it ia t e d o f f t h e f l o o r — B o u g h t ______
S o l d ..............................................................................................................

1 8 ,4 6 0
1 0 ,2 7 0

T o t a l . ...................................................................................................

2 .8 7

2 8 ,7 3 0

4 . T o t a l — B o u g h t .............................................................. ............ „ ............
S o l d ..............................................................................................................

1 0 7 ,0 8 0
1 0 7 ,9 1 5

2 .5 1

2 1 4 ,9 9 5

C . O d d - l o t t r a n s a c t i o n s f o r a c c o u n t o f s p e c i a l is t s — B o u g h t ___
S o l d ..............................................................................................................
T o t a l ......................................................................................................

1 8 .8 1

5 1 ,7 8 8
3R 934
8 3 ,7 2 2

m e m b e r s , t h e ir

Oct 3 1 , 1 93 9
Value

1 5 3 ,4 9 0

T o t a l ...............................

As of Sept. 30, 1939, New York Stock Exchange member
total net borrowings in New York City on collateral amounted
to $467,059,868. The ratio of these member total net borrow­
ings to the market value of all listed stocks, on this date, was
therefore 0.98%.
In the following table listed stocks are classified by leading
industrial groups with the aggregate market value and
average price for each:

Per
Cent a

1 8 ,0 2 5
1 4 ,7 5 0

fir m s

and

t h e ir

a S h a r e s in m e m b e r s ’ t r a n s a c t i o n s a s p e r c e n t o f t w i c e t o t a l r o u n d - l o t v o l u m e .
I n c a lc u la t in g t h e s e p e r c e n t a g e s , t h e t o t a l o f m e m b e r s ’ t r a n s a c t i o n s is c o m p a r e d
w it h t w i c e t h e t o t a l r o u n d - l o t v o l u m e o n t h e E x c h a n g e f o r t h e r e a s o n t h a t t h e t o t a l
o f m e m b e r s ’ t r a n s a c t i o n s in c lu d e s b o t h p u r c h a s e s a n d s a le s , w h ile t h e E x c h a n g e
v o l u m e I n c lu d e s o n l y s a le s .
R o u n d - l o t s h o r t s a le s w h ic h a r e e x e m p t e d fr o m r e s t r ic t io n b y t h e C o m m i s s i o n ’s
r u le s a r e in c lu d e d w it h “ o t h e r s a l e s .”




2 2 3 ,3 7 0

a S a le s m a r k e d " s h o r t e x e m p t ” a r e r e p o r t e d w it h " o t h e r s a le s .”
b S a le s t o o f f s e t c u s t o m e r s ’ o d d - l o t o r d e r s , a n d s a le s t o l i q u id a t e a l o n g p o s it i o n
w h ic h is le e s th a n a r o u n d l o t a r e r e p o r t e d w it h “ o t h e r s a le s ”

5 7 1 ,6 4 0

O t h e r t r a n s a c t i o n s in it ia t e d o n t h e f l o o r — B o u g h t ________
S o l d ....................................

b

1 7 0 ,8 8 0

2 .8 2

1 1 .5 4

2 1 6 ,1 2 0

T o t a l p u r c h a s e s a n d s a le s ______________________________

* T h e t e r m “ m e m b e r s ” in c lu d e s a ll E x c h a n g e
p a r t n e r s , in c lu d in g s p e c i a l p a r t n e r s .

T o t a l s a l e s ____________________________________________________________________
R o u n d -lo t p u rch a se s b y d e a le rs:
N u m b e r o f s h a r e s _________________________________________________________________

As of the close of business Oct. 31, 1939 New York Stock Exchange mem­
ber total net borrowings in New York City on collateral amounted to $534,228,504. The ratio of these member total borrowings to the market value
of all listed stocks, on this date, was therefore 1.13% . Member borrowings
are not broken down to separate those only on listed share collateral from
those on other collateral; thus those ratios usually will exceed the true
relationship between borrowings on all listed shares and their market value.

3 9 8 ,6 8 0
7 8 1 ,2 7 0

s a le s _____________________________

S h o r t s a l e s _____________________________________________________
O t h e r s a l e s . b _________________________________________________

2

1 00
1 7 0 ,7 8 0

6 .2 8

6 5 ,8 2 0
3 3 2 ,8 6 0

T o ta l pu rch a ses a n d

s a le s _____________________________

R o u n d - l o t s a le s b y d e a le r s :
N u m b e r o f sh a res:
s n o r t s a l e s _______________________________________________________________________
O t h e r s a le s , b ___________________________________________________________________

Market Value of Listed Stocks on New York Stock
Exchange on Oct. 31, $47,373,972,773, Compared
with $47,440,476,682 Sept. 30— Classification of
Listed Stocks
As of the close of business on Oct. 31, 1939, there were
1,230 stock issues aggregating 1,430,953,734 shares listed on
the New York Stock Exchange with a total market value of
$47,373,972,773, the Exchange announced on Nov. 3. This
compares with 1,228 stock issues aggregating 1,430,884,863
shares listed on the Exchange Sept. 30 with a total market
value of $47,440,476,682, and with 1,245 stock issues aggre­
gating 1,425,830,740 shares with a total market value of
$47,001,767,212 on Oct. 31, 1938. In its announcement of
Nov. 3, the Stock Exchange said:

3 8 2 ,5 9 0

T o t a l s a le s .........................................................................................

T o t a l p u rch a ses a n d

9 2 9 ,1 4 9
2 9 ,8 1 7 ,8 3 2

3 ,3 8 4 ,5 3 0

S h o r t s a l e s _____________________________________________________
O t h e r s a l e s . b _________________________________________________

2

Per
Cent a

C u s t o m e r s ’ t o t a l s a l e s ______________________________________________________
D o l l a r v a l u e _______________________________________________________________________

A u t o s a n d a c c e s s o r i e s __________ ________
F i n a n c i a l ____________________________________
C h e m i c a ls ___________________________________
B u i l d i n g ______________________ ______________
E l e c t r i c a l e q u ip m e n t m a n u f a c t u r i n g ..
F o o d s _________________________ _____ _______
R u b b e r a n d t i r e s __________________________
F a r m m a c h i n e r y __________________________
A m u s e m e n t s ______________________________
L a n d a n d r e a l t y ___________________________
M a c h i n e r y a n d m e t a l s ___________________
M i n in g (e x c l u d i n g i r o n ) __________________
P e t r o l e u m _________________ _______________ _
P a p e r a n d p u b l is h i n g ___ _________________
R e t a i l m e r c h a n d i s i n g ____________________
R y . o p e r . & h o l d in g c o ’ s . & e q p t . m f r s .
S t e e l, ir o n a n d c o k e ______________________
T e x t i l e s ............................. ....... ..............................
G a s a n d e l e c t r i c ( o p e r a t i n g ) ____________
G a s a n d e le c t r i c ( h o l d i n g ) _______________
C o m m u n i c a t i o n s ( c a b le , t e l . & r a d i o ) .
M i s c e ll a n e o u s u t i l i t i e s ___________________
A v i a t i o n __________ ______________________ _
B u s in e s s a n d o f f i c e e q u i p m e n t .............. ..
S h i p p i n g s e r v i c e s ............... ..............................
S h ip o p e r a t i n g a n d b u i l d i n g . ...................
M i s c e ll a n e o u s b u s in e s s e s ______ __________
L e a t h e r a n d b o o t s _____ _______ ___________
T o b a c c o ......... ................................................ ..
G a r m e n t s __________ ________________________
U . S . c o m p a n i e s o p e r a t i n g a b r o a d _____
F o r e i g n c o m p a n i e s ( i n c l . C u b a & C a n .)

S
3 ,8 4 3 ,3 9 8 ,3 6 2
9 5 2 ,3 6 7 ,8 8 1
6 ,3 8 4 ,5 7 6 ,3 0 3
5 9 9 ,9 9 6 ,6 9 3
l ,6 o 6 ,8 5 1 , 1 6 7
2 ,9 2 0 ,2 9 0 ,9 9 8
4 3 7 ,2 7 7 ,5 2 0
6 7 9 ,4 8 7 ,3 1 6
2 6 1 ,8 4 0 ,9 5 9
2 0 ,2 9 0 ,6 5 1
1 ,7 4 1 ,6 7 3 ,8 7 8
1 ,8 7 7 ,4 8 7 ,4 0 7
4 ,6 1 9 ,8 4 0 ,9 1 0
4 1 7 ,1 4 7 ,8 5 8
2 .5 4 6 ,9 8 2 ,7 1 4
3 .3 9 8 ,5 9 6 .9 6 1
2 ,6 6 2 ,9 7 0 .0 2 7
2 7 6 ,3 2 6 ,0 8 5
2 ,3 6 1 ,9 5 5 ,9 6 7
1 ,4 0 5 ,0 4 6 .8 0 1
3 ,6 3 1 .0 2 0 ,8 2 6
1 3 8 ,2 7 3 ,2 9 5
6 2 7 .1 9 8 ,4 2 6
3 3 2 ,5 5 3 ,8 1 2
9 ,8 1 0 .5 3 9
5 1 .1 1 6 ,5 2 2
1 2 0 ,2 3 6 ,9 9 9
1 9 6 ,4 5 3 .8 7 6
1 ,5 3 8 ,0 3 9 ,3 9 1
4 0 .5 4 8 ,2 1 7
6 5 1 ,0 0 5 .9 1 9
9 7 3 .3 0 8 ,4 9 3

A ll lis t e d s t o c k s ............................................ 4 7 .3 7 3 ,9 7 2 ,7 7 3

Sept. 3 0 , 1 9 3 9

Aver.
Price
S
3 2 .8 6
1 9 .1 5
7 1 .6 8
2 7 .5 7
4 2 .9 4
31 95
4 1 .7 8
5 1 .3 9
1 4 .3 8
4 .1 0
2 7 .3 5
2 9 .2 8
2 3 .9 7
2 2 .2 9
3 4 .3 9
2 9 .3 1
5 3 .1 6
2 4 .2 5
2 8 .8 5
1 4 .6 7
9 5 .7 4
1 3 .2 8
2 3 .6 7
2 9 .1 2
5 .3 4
1 6 .9 9
2 0 .2 4
2 6 33
5 5 .0 0
2 4 .1 7
1 9 .4 7
2 4 .0 2

Market
Value

A ver.
Price

S
3 ,8 9 1 ,9 5 7 ,4 7 1
9 4 1 .4 7 4 ,4 8 4
6 ,4 6 2 ,1 2 6 , 6 4 5
5 7 5 .0 7 3 ,1 5 6
1 ,7 1 2 .0 3 5 ,0 5 2
2 ,8 2 8 ,5 7 5 , 6 4 6
4 5 1 ,2 1 7 ,7 3 3
7 0 7 ,0 2 0 .3 5 6
2 3 2 ,6 1 2 , 8 9 5
2 2 ,2 3 7 ,5 9 1
1 ,7 7 8 .1 2 1 ,7 1 4
1 ,9 3 8 ,1 8 1 ,5 5 6
4 ,7 8 2 ,7 3 7 , 2 3 3
4 2 1 ,2 8 4 ,2 5 6
2 ,4 1 0 .9 8 0 . 6 3 9
3 ,5 7 6 ,6 5 7 , 7 3 6
2 ,7 5 9 ,2 1 9 , 5 3 7
2 7 6 ,7 2 8 ,3 0 0
2 .2 8 9 ,3 6 9 , 4 8 5
1 ,3 7 3 ,7 2 0 .6 4 6
3 ,5 3 3 ,7 3 6 , 1 9 5
1 3 7 ,2 7 4 ,5 1 4
5 5 0 .3 5 9 ,9 2 7
3 1 3 .7 9 0 .9 0 5
1 1 ,8 6 4 ,7 4 6
5 1 .4 9 9 .5 7 9
1 1 2 .5 4 3 ,1 0 7
2 0 8 .1 3 6 ,4 1 8
1 ,4 5 8 .2 9 0 ,9 4 9
3 7 .8 9 9 .5 8 2
6 7 4 ,3 1 9 ,6 7 7
9 1 6 ,4 2 8 ,9 5 2

$
3 3 .2 8
1 8 .9 3
7 2 .5 1
2 6 .4 2
4 4 .3 7
3 0 .9 5
4 3 .1 1
5 3 .4 7
1 2 .7 7
4 .4 9
2 7 .9 3
3 0 .2 3
2 4 .8 1
2 2 .5 2
3 2 .5 7
3 0 .8 8
5 5 .2 8
2 4 .2 8
2 8 .0 4
1 4 .3 4
9 3 17
1 3 .1 8
2 0 .7 8
2 7 .4 8
5 .1 6
1 8 .1 1
1 8 .9 5
2 7 .8 8
5 2 .1 4
2 2 .5 9
2 0 .1 6
2 2 .6 1

3 3 .1 1 4 7 ,4 4 0 ,4 7 6 , 6 8 2

3 3 .1 5

Volume 149

ONE HUNDRED

—

The Commercial & Financial Chronicle —

We give below a two-year compilation of the total market
value and the average price of stocks listed on the Exchange.

Y E A R S OLD

2897

include the name of the authority by which the non-member is supervised or
the name of the national securities exchange of which he is a member.

Following is the new rule on registered employees:
M artel
Value
1937—
O ct.
1 _____
N ov
1 _____
1 _____
D ec.
1938—
Jan.
1 _____
1 _____
F eb.
M a r . 1 _____
A p r.
1 _____
M ay
1 _____
1 _____
June
J u n e 3 0 _____
J u ly 3 0 _____
A d g . 3 1 _____
S e p t . 3 0 _____

$ 4 9 0 3 4 , 0 3 2 ,6 3 9
4 4 , 6 6 9 , 9 7 8 ,3 1 8
4 0 ,7 1 6 ,0 3 2 ,1 9 0

$ 3 5 .0 7
’ 3 1 .7 7
2 8 .9 2

3 8 , 8 6 9 , 1 4 0 ,6 2 5
3 9 ,2 4 2 ,6 7 6 ,8 3 7
4 1 , 1 7 2 , 8 6 1 ,5 3 5
3 1 ,8 5 8 ,4 6 1 ,8 7 1
3 5 , 8 6 4 , 7 6 7 ,7 7 5
3 4 ,5 8 4 ,6 1 4 ,8 0 3
4 1 ,9 6 1 , 8 7 5 ,1 5 4
4 4 , 7 8 4 , 2 2 4 ,2 1 5
4 3 , 5 2 6 , 4 8 8 ,2 1 5
4 3 , 5 2 6 . 6 8 8 .8 1 2

2 7 .5 3
2 7 .5 9
2 8 .9 4
2 2 .3 2
2 5 .1 5
2 4 .2 8
2 9 .4 1
3 1 .3 8
3 0 .5 5
3 0 .5 4

M artet
Value

Average
Price
1938 —
O c t . 3 1 _____
N o v . 3 0 _____
D e c . 3 1 _____
1939—
Jan
3 1 ____
F e b . 2 8 _____
M a r . 3 1 _____
A p r . 2 9 _____
M a y 3 1 _____
J u n e 3 0 _____
J u ly 3 1 _____
A u g . 3 1 _____
S e p t . 3 0 _____
O c t . 3 1 _____

Average
Price

$ 4 7 ,0 0 1 ,7 6 7 ,2 1 2
4 6 , 0 8 1 ,1 9 2 ,3 4 7
4 7 ,4 9 0 ,7 9 3 ,9 6 9

$ 3 2 .9 6
32 30
3 3 .3 4

4 4 .8 8 4 ,2 8 8 ,1 4 7
4 6 ,2 7 0 ,9 8 7 ,4 1 8
4 0 ,9 2 1 ,0 7 4 ,9 7 0
4 0 ,6 7 3 ,3 2 0 .7 7 9
4 3 ,2 2 9 ,5 8 7 ,1 7 3
4 1 ,0 0 4 ,9 9 5 ,0 9 2
4 4 ,7 6 1 ,5 9 9 .3 5 2
4 1 ,6 5 2 ,6 6 4 ,7 1 0
4 7 ,4 4 0 ,4 7 6 ,6 8 2
4 7 ,3 7 3 ,9 7 2 ,7 7 3

3 1 .5 0
3 2 .4 4
2 8 .6 9
2 8 .5 1
3 0 .2 9
2 8 .7 0
3 1 .3 1
2 9 .1 2
3 3 .1 5
3 3 .1 1

* R evised.

Canadian Exchange Control Eased to Allow NonResidents to Withdraw Newly Invested Capital

The Canadian Foreign Exchange Control Board re­
leased its restrictions on the export of certain funds of non­
residents, so as not to discourage future investments in
Canada by Americans and others, according to an announce­
ment of Oct. 31. Under the revised regulations, non-resi­
dents may make investments in Canada for capital develop­
ment, and retain right to subsequently liquidate the invest­
ment and withdraw the funds from the country.
According to Ottawa United Press advices of Oct. 31 the
new regulations are effective where the following circum­
stances apply:
1. Where non-residents sold foreign exchange through an authorized
dealer subsequent to Sept. 15, 1939, for the purpose of making an invest­
ment in Canada.
2. Where resultant Canadian dollars were invested in Canada in an
entirely new undertaking, such as building of a manufacturing plant,
development of mineral resources or extension of an existing plant. It
does not include the purchase of real estate to be held in anticipation of
an increase in value nor the purchase of securities except in connection
with the capital development transactions.
3. Where non-residents subsequently liquidate the investment.
4. Where foreign exchange is required for the proceeds of such sale or
liquidation up to an amount not exceeding the original investment.

On and after N ov. 1, 1939, a charge o f $10 will be made for consideration
of each application for the employment of any individual as a “ branch
office manager” or “ registered representative.”

SEC Issues Tabulations on Characteristics of Corporate
Security Issues Proposed for Sale During Third
Quarter
The Securities and Exchange Commission made public
on Nov. 3 the following tabulations on selected character­
istics of corporate security issues proposed for sale by issuers
and registered under the Securities Act of 1933 during the
period July 1 to Sept. 30, 1939.
These data, published quarterly, are part of the series
which was initiated in February, 1939. The figures for the
April 1 to June 30, 1939 period were given in our issue of
Aug. 12, page 951. The tabulations issued Nov. 3 follow:
C H A R A C T E R IS T IC S
OF
COM PORATE
S E C U R IT IE S
E F F E C T IV E L Y
R E G I S T E R E D U N D E R T H E S E C U R I T I E S A C T O F 1933 A N D P R O ­
P O S E D F O R S A L E B Y I S S U E R S — J U L Y 1 T O S E P T . 3 0 , 1939
A.

S u m m a ry

N o. o f
Issues

Gross
Amount

Type o f Security
Total

% of
All
Issues

Total
($ 0 0 0 )

% of
All
Issu es

68

1 0 0 .0

4 4 8 ,7 7 5

1 0 0 .0

28
20

4 1 .1
2 9 .4

3 0 ,5 9 6
2 1 ,2 6 0

6 .8
4 .8

11
8

1 6 .2
1 1 .8
1 .5

2 1 2 ,7 7 6
1 8 3 ,6 3 8
505

4 7 .4
4 0 .9

S t o c k is s u e s :

B o n d is s u e s :

S h o rt-te rm se cu red a n d u n secu red - .
B.

1

_

0.1

C om m on S to ck Issu es

N o. o f
Issues

Gross
Amount

Characteristic
Total

% of
All
Issu es

($ 0 0 0 )

% of
All
Issu es

Total

28

President Rea of New York Curb Exchange Asks Co­
operation of Members to Supplement Work to
Further Interests of Exchange
George P. Rea, President of the New York Curb Exchange,
addressed the membership on the Floor on Oct. 30, “ as a
committee of the whole,” reporting on the work of the
Committee on Transactions and Quotations, the Committee
on Formal Listing, the Committee on Unlisted Securities,
the Committee on Public Relations, and of the Exchange’s
financial condition which he said was excellent. After dis­
cussing stocks which are being transferred from the Curb
Exchange to the New York Stock Exchange, he spoke briefly
of some 23 prospects for listing which are being considered
at this time, an Exchange announcement said. He requested
the cooperation of the members to supplement the work
now being done by the administration to further the interests
of the Exchange.
New York Stock Exchange Rescinds Rule Prohibiting
Collection by Members of Over-Riding Commissions
for Non-Member Correspondents— New Rules on
Private Wire Connections and Registered Employees
Announcement was made Oct. 26 that the Committee on
Member Firms of the New York Stock Exchange has res­
cinded its ruling prohibiting the collection by members of
over-riding commissions, service charges, or other fees
for non-member correspondents and in lieu thereof has
adopted the following new ruling, effective Nov. 1:
An arrangement whereby member firms carrying accounts of customers
who have been introduced by or are serviced or advised by a non-member
engaged in business as a dealer or broker undertake to collect for such non­
member an over-riding commission, service charge or other fee and to remit
to such non-member is deemed to be permissible under the porovisions of
Section 1 o f Article X V II o f the Constitution, provided that all o f the
following conditions are complied with, viz.,
(1) the customer has given written instructions to the member firm
authorizing the imposition and collection o f such charges and has not
canceled such instructions;
(2) such instructions indicate the precise charges which are to be made
and indicate knowledge on the part o f the customer that such charges are
over and above and not a part o f the charge o f the member firm carrying
the account;
(3) the charge so made and collected for the non-member be separately
and specifically indicated as such on the confirmation o f every transaction
upon which such a charge is based.
Nothing in this rule shall absolve the parties from responsibilities which
may ensue by reason of such arrangements. It is therefore suggested that
member firms be guided by their own counsel in regard to entering into any
such arrangement.

It was also announced Oct. 26 that new rules regarding
registered employees and private wire connections had been
adopted Oct. 16 by the Committee on Member Firms.
The rule in respect of private wire connections follows:
On and after N ov. 1, 1939, a charge o f $5 will be made for consideration
of each application for a private wire connection to a non-member. Such
fee will not be charged in the case o f applications for private wire con­
nections to institutions under the supervision o f State or Federal banking or
insurance authorities, or members o f national securities exchanges. Applica­
tions for private wires which are exempt from the payment of fees must




C o n tin g e n t v o t in g r ig h ts o n l y . .

C.

____________

.

1 0 0 .0

3 0 ,5 9 6

1 0 0 .0

23
7
27
0
1
6
0
0
0

8 2 .1
2 5 .0
9 6 .4

2 5 ,5 0 8
3 ,8 2 5
2 9 ,6 9 3
0
903
4 ,3 5 7
0
0
0

8 3 .4
1 2 .5
9 7 .0

3 .6
2 1 .4

3 .6
1 4 .2

P r e fe r r e d S t o c k Issu e s

N o. o f
Issues

Gross
Amount

Characteristic
% of
All
Issu es

($ 0 0 0 )

% of
AU
Issu es

20

1 0 0 .0

2 1 ,2 6 0

1 0 0 .0

15
3
16
1
9
9
2
2
0
0
5
17
7
0

7 5 .0
1 5 .0
8 0 .0
5 .0
4 5 .0
4 5 .0
1 0 .0
1 0 .0

1 1 ,7 9 8
1 .0 9 5
1 9 ,1 7 4
700
1 6 ,4 0 6
4 ,0 3 9
815
1 ,4 5 6
0
0
5 ,0 7 5
1 9 ,4 3 0
1 2 ,0 2 0
0

5 5 .5
5 .2
9 0 .2
3 .3
7 7 .2
1 9 .0
3 .8
6 .8

Total

W a r r a n ts o r rig h ts a tta c h e d
D.

L o n g -te rm

2 5 .0
8 5 .0
3 5 .0

Total

2 3 .9
9 1 .4
5 6 .5

S ecu red B o n d Issu es

N o. o f
Issues

Gross
Amount

Characteristic
Total

% of
All
Issues

Total
($ 0 0 0 )

% of
All
Issu es

ii
S e r ia l m a t u r i t y ____________ ______________
_____
S in k in g f u n d . _____
_ .
_____
C a ll a b l e (o t h e r t h a n f o r s i n k i n g f u n d ) . .
-------. _
C o n v e r t i b l e - . . . __ _________
_ __
______ _
_
W a r r a n t s o r r ig h t s a t t a c h e d . . __________
S e c u r it y s u b j e c t t o p r io r lie n __________
N o a d a it i o n a l s e c u r i t ie s is s u a b l e u n d e r s a m e in D e f i n i t e li m it s e t o n is s u e o f e q u a l o r s e n i o r s e c u r it ie s
S u b s t it u t i o n o f p r o p e r t y u n d e r l i e n p e r m it t e d . - I n t e r e s t d e p e n d e n t o n e a r n in g s o r s p e c i a l c o n d i t i o n s .
G u a r a n te e d
.
. . . .
E.

1 0 0 .0

2 1 2 ,7 7 6

1 0 0 .0

i
9
11
1
0
0

9 .1
8 1 .8
1 0 0 .0
9 .1

350
2 0 2 ,4 2 6
2 1 2 ,7 7 6
1 0 ,0 0 0
0
C

0 .2
9 5 .1
1 0 0 .0
4 .7

1
3
11
0
0

9 .1
2 7 .3
1 0 0 .0

350
2 3 .7 9 3
2 1 2 .7 7 6
0
0

0 .2
1 1 .2
1 0 0 .0

_
_

_
---

_
_
_
---

L o n tf-te r m U n s e c u r e d B o n d Is s u e s

N o. o f
Issues

Gross
Amount

Characteristic
Total

% of
All
Issu es

Total
($ 0 0 0 )

% of
All
Issues

8
S e r ia l m a t u r i t y ----------------------------- -----------------------------------------S in k in g f u n d ________________________________________________
C a ll a b l e (o t h e r t h a n f o r s i n k i n g f u n d ) ----------------. .
C o n v e r t i b l e ___________________________________________________
W a rra n ts o r rig h ts a tta c h e d .
---------- - -----------N o a d d i t io n a l s e c u r i t ie s is s u a b l e u n d e r s a m e in D e f i n i t e l i m it s e t o n is s u e o f e q u a l o r s e n i o r s e c u r it ie s
I n t e r e s t d e p e n d e n t o n e a r n in g s o r s p e c i a l c o n d i t i o n s .
G u a r a n t e e d __________________________________________________

1 0 0 .0

1 8 3 ,6 3 8

1 0 0 .0

1
6
8
1
0

1 2 .5
7 5 .0
1 0 0 .0
1 2 .5
___

6 ,9 7 7
1 4 9 ,8 2 8
1 8 3 ,6 3 8
1 ,6 0 0
0

3 .8
8 1 .6
1 0 0 .0
0 .9
___

7
0
0
0

8 7 .5
___
___
...

1 8 1 ,1 3 8
0
0
0

9 8 .7
___
___
...

ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD Nov. 4, 1939

2898

—

F.

—

New Mutual Savings Bank Authorized to Issue Life
Insurance in New York—Total of 6,699 Policies
with Face Value of $5,500,000 Sold in Nine Months

S h o rt-te rm S e cu re d a n d U n se cu re d B o n d Issu es
G ross
Am ount

N o. of
Issu es
C h a r a c te r is tic
% of
A ll
Issu es

T o ta l

% of
T o ta l

($ 0 0 0 )

A ll
Issu es

A ll Issu es.

1

1 0 0 .0

5C5

1 0 0 .0

S e r ia l m a t u r i t y ______________________________________________
S in k in g f u n d _________________________________________________
C a l l a b l e ( o t h e r t h a n f o r s i n k i n g f u n d ) --------------------------C o n v e r t i b l e -----------------------------------------------------------------------------W a r r a n t s o r r i g h t s a t t a c h e d ---------------------------------------------S e c u r e d b y l i e n ______________________________________________
S e c u r it y s u b j e c t t o p r io r l i e n -------------------------------------------N o a d d i t i o n a l s e c u r i t ie s is s u a b l e u n d e r s a m e in
d e n t u r e ---------------------------------------------------------------------------------D e f i n i t e li m it s e t o n is s u e o f e q u a l o r s e n i o r s e c u r it ie s
S u b s t i t u t i o n o f p r o p e r t y u n d e r li e n p e r m i t t e d -----------In te r e s t d e p e n d e n t o n e a rn in g s o r s p e c ia l c o n d it io n s
G u a r a n t e e d __________________________________________________

1
0
1
0
0
0

1 0 0 .0

505
0
505
0
0
0

1 0 0 .0

1
0

1 0 0 .0

505
0

1 0 0 .0

1 0 0 .0

. . .

. . .

’ ”

"6
0

____

1 0 0 .0
____

—

. . .

6
0

—

In our issue of April 29 , page 2504, explanatory notes
regarding the sale by issuers was given.

The Bush wick Savings Bank, Brooklyn, N . Y . , announced
N o v . 1 that it has been authorized by the State Banking and
Insurance Department to write insurance under the law that
became effective Jan. 1, 1939, and will start issuing policies.
The Bushwick th is becomes the third mutual savings bank
in Brooklyn to write life insurance and is the seventh in New
York State. In addition, there are seven other mutual savings
banks selling insurance as agents. The 13 banks writing
insurance have sold, it is stated, a total of 6,699 policies in
the first nine months of this year with a total face value of
over $5 ,500,000. The size of the average policy isused was
$83 i .
The Bushwick Savings Bank will issue policies in six dif­
ferent forms, following the practice of the other banks now
writing insurance.
Earlier reference to the amount of savings bank life in­
surance sold appeared in our issue of July 22 , page 491.

SEC Issues Four More Reports Based on Census of
American Listed Corporations

Federal Intermediate Credit Banks Sell $28,900,000
% % Debentures

On Oct. 27 the Securities and Exchange Commission made
public four more of a series of reports based on a Works
Projects Administration study now known as the Survey
of American Listed Corporations. The current reports con­
tain a summary of selected data on the following four in­
dustry groups composed of corporations registered under
the Securities Exchange Act of 1934: Leather Tanners;
Shoe Manufacturers; Manufacturers of Brick and Other
Clay Products; and Manufacturers of Miscellaneous Build­
ing Material. These summaries contain essentially the same
information as the first 40 reports of this series which have
been released, but, unlike the first 18 reports, they have not
been printed in quantity and, therefore, are not available
for free distribution. They are, however, open to public
inspection and use at all the regional offices of the SEC.

A n offering of $28,900,000 % % debentures of the Federal
Intermediate Credit Banks on Oct. 20 met with the cus­
tomary oversubscription, and the books were closed the
same day. The offering was made by Charles R . D unn,
New York, fiscal agent for the Banks, at a slight premium
over par. The yield basis on which the bonds were sold, is
said to have been about the same as that for the issue dis­
posed of at the end of September.
The proceeds of the latest sale will go entirely toward the
refunding of $2 9,100,000 debentures maturing N o v . 1. The
new issue is dated N o v . 1 and matures in 10 m onths, on
Sept. 3 , 1940.
A t the close of business N o v . 1, the Banks it is stated had
outstanding a total of $207,400,000 debentures.

Increase of $67,168,637 in Outstanding Brokers’ Loans
on New York Stock Exchange During October—
Total Oct. 31 Reported at $534,228,504— Amount
Is $46,513,133 Below Year Ago

M em ber banks of the American Bankers Association were
given official notice on O ct. 27 of the Association’s action
with respect to lifting the minimum on protestable cheeks
in a letter enclosing a copy of the resolution adopted by the
executive council at the Association’s convention in Seattle,
Sept. 2 5 -2 8 .
The Association’s announcement, regarding
this matter stated:

According to the monthly compilation of the N ew York
Stock Exchange, issued N o v . 2 , outstanding brokers’ loans
on the Exchange increased $67,168,637 during October to
$534,228,504 Oct. 31 from $467,059,867 Sept. 30. A s com­
pared with Oct. 31 , 1938, when the loans outstanding
amounted to $580,741,637, the figure for the end of October,
1939 represents a decrease of $46,513,133.
Demand loans outstanding on Oct. 31 were above Sept. 30
but below Oct. 31 , 1938, while time loans were below the
two earlier dates. The demand loans on Oct. 31 totaled
$5 02,025,629, as compared with $433,556,992 Sept. 30 and
$540,439,140 Oct. 31, 1938. Tim e loans at the latest date
were reported at $32,202,875, against $33,502,875 and
$4 0,302,497, respectively, a month and a year ago.
The following is the report for Oct. 31, 1939, as made
available by the Stock Exchange on N o v . 2 :
New York Stock Exchange member total net borrowings on collateral,
contracted for and carried in New York as o f the close o f business Oct. 31,
1939, aggregated $534,228,504.
The detailed tabulation follows:

Demand

(1 ) N e t b o r r o w i n g s o n c o l l a t e r a l f r o m N e w Y o r k
b a n k s o r t r u s t c o m p a n i e s _____________________________
( 2 ) N e t b o r r o w i n g s o n c o l la t e r a l f r o m p r i v a t e b a n k e r s ,
b r o k e r s , f o r e ig n b a n k a g e n c ie s o r o t h e r s In t h e
C i t y o f N e w Y o r k __________________________ ___________

T im e

$ 4 6 3 ,7 5 4 ,8 2 9

$ 3 1 ,9 0 2 ,8 7 5

3 8 ,2 7 0 ,8 0 0

3 0 0 ,0 0 0

$ 5 0 2 ,0 2 5 ,6 2 9
$ 3 2 ,2 0 2 ,8 7 5
C o m b i n e d t o t a l o f t i m e a n d d e m a n d b o r r o w i n g s ------------------------------------$ 5 3 4 ,2 2 8 ,5 0 4
T o t a l f a c e a m o u n t o f ‘ G o v e r n m e n t s e c u r i t ie s ” p l e d g e d a s c o l la t e r a l
f o r t h e b o r r o w i n g s i n c l u d e d in it e m s (1 ) a n d ( 2 ) a b o v e ______________
$ 2 4 ,9 8 9 ,9 0 0

The scope o f the above compilation is exactly the same as in the loan
report issued by the Exchange a month ago.

Below we furnish a two-year compilation of the figures:

13_
97

Demand Loans

$

Time Loans

$

Total Loans

$

O c t . 3 0 .................................................
N o v . 3 0 .................................................
D e c . 3 1 .................................................
1938—
J a n . 3 1 .................................................
F e b . 2 8 .................................................
M a r . 3 1 ............................- ...................
A p r . 3 0 ....................................
M a y 3 0 .................................................
J u n e 3 0 ..................................................
J u l y 3 0 - - - ................... - ...................
A u g 3 1 ..................................................
S e p t 3 0 .......... ..................................—
O c t . 3 1 ..................................................
N o v 3 0 ..................................................
D e c 3 1 ..................................................

4 9 3 .3 4 0 .1 6 8
4 9 8 .5 6 7 .1 7 5
5 1 1 ,8 8 8 ,3 0 5

2 3 2 ,2 8 2 ,7 0 4
1 8 9 ,2 1 9 .4 0 4
1 4 7 ,3 3 1 ,0 0 0

7 2 5 ,6 2 2 ,8 7 2
6 8 7 ,7 8 6 ,5 7 9
6 5 9 ,2 1 9 ,3 0 5

4 9 0 ,9 5 4 .0 4 0
* 4 9 2 ,1 9 8 .8 1 4
4 5 5 .5 4 9 .4 1 9
4 1 3 .5 7 8 .0 2 9
4 1 8 .4 9 0 .4 0 5
4 3 1 ,9 2 6 .4 0 0
4 5 9 .2 1 7 .9 3 3
5 0 8 .9 9 2 .4 0 7
4 8 4 .0 1 9 .5 3 8
5 4 0 ,4 3 9 ,1 4 0
5 7 7 .4 4 1 ,1 7 0
6 8 1 ,8 8 5 ,1 9 2

1 0 6 ,4 6 4 .0 0 0
8 4 ,7 6 3 .0 0 0
6 5 ,5 6 7 .5 0 0
5 3 ,1 8 8 .5 0 0
4 0 .8 7 3 .5 0 0
3 7 .9 6 1 .0 0 0
3 4 .3 9 8 .0 0 0
3 2 .4 9 8 .0 0 0
4 0 .1 8 3 .0 0 0
4 0 ,3 0 2 ,4 9 7
4 2 , 5 1 4 ,1 0 0
3 5 , 1 9 9 ,1 3 7

5 9 7 ,4 1 8 ,0 4 0
* 5 7 6 ,9 6 1 .8 1 4
5 2 1 ,1 1 6 ,9 1 9
4 6 6 ,7 6 6 .5 2 9
4 5 9 .3 6 3 .9 0 5
4 6 9 ,8 8 7 ,4 0 0
4 9 3 ,6 1 5 .9 3 3
5 4 1 .4 9 0 .4 0 7
5 2 4 ,2 0 2 .5 3 8
5 8 0 ,7 4 1 ,6 3 7
6 1 9 ,9 5 5 .2 7 0
7 1 7 ,0 8 4 ,3 2 9

1939—
J a n 3 1 ..................................................
F e b . 2 8 ..................................................
M a r . 3 1 ..................................................
A p r . 2 9 ..................................................
M a y 31
.........................................
J u n e 3 0 1 ...............................................
J u l y 3 1 ..................................................
A u g . 3 1 ..................................................
S e p t . 3 0 ..................................................
O c t . 3 1 ...................................................

6 3 2 ,5 1 3 ,3 4 0
6 4 6 .1 7 8 .3 6 2
6 1 7 ,1 9 1 .9 3 2
5 1 5 ,1 7 3 ,5 2 5
5 1 5 .4 8 3 .0 ^ 0
6 0 9 .0 2 1 .6 3 7
5 2 6 .6 9 1 ,7 4 0
4 7 8 .0 6 0 ,0 0 7
4 3 3 .5 5 6 ,9 9 2
5 0 2 ,0 2 5 ,6 2 9

3 3 , 9 8 3 ,5 3 7
3 7 .2 5 4 ,0 3 7
3 7 ,6 6 3 .7 3 9
3 2 ,2 6 9 ,6 5 0
3 0 .4 9 2 .8 8 9
2 8 . 2 4 0 .3 2 2
2 7 .0 7 5 ,5 0 0
3 0 .5 1 7 .5 4 7
3 3 ,5 0 2 ,8 7 5
3 2 , 2 0 2 ,8 7 5

6 6 6 ,4 9 6 ,8 7 7
6 8 3 .4 3 2 .3 9 9
6 5 4 ,8 5 5 ,6 7 1
5 4 7 ,4 4 3 ,1 7 5
5 4 5 .9 7 5 .9 7 9
5 3 7 .2 6 1 .9 5 9
5 5 3 .7 6 7 .2 4 0
5 0 8 ,5 7 7 ,5 5 4
4 6 7 ,0 5 9 ,8 6 7
5 3 4 ,2 2 8 ,5 0 4

• R e v is e d .




American Bankers Association Acts to Raise Minimum
for Protested Checks— Resolution Adopted by
Executive Council at Seattle Convention

The protesting process consists o f providing owners o f protested checks
with legal notice or evidence o f dishonor for their use in the case of suits to
recover. The fees for this evidence are fixed by law in the several States,
and are in some instances out o f proportion to the face amounts o f small
checks. It is believed that the discontinuance of the practice o f automati­
cally protesting checks o f $50 or less will save bank customers considerable
expense.
Last Spring the A . B. A . convassed opinion o f the banks o f the country
on the idea of raising the minimum on checks subject to protest from $10.01
to $50-01. A large majority o f the banks expressed themselves in favor
o f the idea.
The resolution adopted in Seattle was the official expression o f their
wishes and took the form o f an official request to the Federal Reserve banks
to conform their collection instructions and practices to the desire o f the
banks.

In the letter sent to A . B . A . banks O ct. 27 by Frank W .
Simmonds, senior deputy manager of the A . B . A . the
resolution adopted by the executive council at the annual
convention in Seattle was set out as follows:
It is not legally required that inland checks be protested; and
The chief purpose of notarial protest is that it affords a con­
venient method of proving dishonor and notice o f dishonor in the event
o f a lawsuit instituted by the owners, and there are few suits on dishonored
checks o f less than $50; and
W h erea s,
The cost to the owners o f the protest fee on small checks is
out o f proportion to the protection actually afforded them; and
W h erea s,
A survey of the opinions o f all banks throughout the country
on the question o f raising the minimum face amount o f checks which should
not be protested revealed that a large majority favored the change to a
$50 minimum; and
W h erea s,
The Bank Management Commission upon the basis o f their
survey recommended to banks and clearinghouses a change from their pre­
sent practice o f not protesting items o f $10 and less to a practice o f not pro­
testing items o f $50 and less; and
W h erea s,
Many clearinghouses have adopted rules changing their pro­
test practice in accordance with the Bank Management Commission recom­
mendation and many banks have indicated their readiness to cooperate; and
W h erea s,
These banks and clearinghouse associations are o f the opinion
that the new practice connot be effective without the cooperation o f the
Federal Reserve banks; therefore be it
R e s o l v e d by the Executive Council o f the American Bankers Association,
That the Federal Reserve bank in each Reserve District be requested to
conform its protest practice, beginning Jan 2, 1940, to the new practice
adopted by banks and clearinghouse associations o f not protesting items of
$50 or less; and be it further
R eso lv ed ,
That a copy o f this resolution be addressed to each Federal
Reserve bank.
W h erea s,
W h erea s,

Tenders of $457,678,000 Received to Offering of $150,000,000 of 91-Day Treasury Bills— $150,499,000
Accepted at Average Rate of 0.028%
A total of $457,678,000 was tendered to the offering last
week of $150,000,000, or thereabouts, of 91-day Treasury
bills dated N o v . 1 and maturing Jan. 31 , 1940, it was an­
nounced O ct. 30 by Secretary of the Treasury Morgenthau.

Volume 149

ONE HUNDRED The Commercial & Financial Chronicle YE A R S OLD
—

—

Of this amount, M r . Morgenthau said, $150,499,000 was
accepted at an average rate of 0 .0 2 8 % . _
The tenders to the offering were received at the Federal
Reserve banks and the branches thereof up to 2 p. m .,
(E ST) Oct. 30. Reference to the offering appeared in these
columns of Oct. 28, page 2616. The following regarding
the accepted bids to the offering is from Secretary Morgen­
thau’s announcement of O ct. 30:
Total applied for, $457,678,000
Total accepted, $150,499,000
Range o f accepted bids:
High
100
Low
— 99.992 equivalent rate approximately 0.032%
Average price— 99.993 equivalent rate approximately 0.028%
(86% o f the amount bid for at the low price was accepted.)

Stock of Money in the Country
The Treasury Department in Washington has issued the
customary monthly statement showing the stock of money
in the country and the amount in circulation after deducting
the moneys held in the United States Treasury and by
Federal Reserve banks and agents. The figures this time
are for Sept. 30, 1939, and show that the money in circulation
at that date (including, of course, what is held in bank
vaults of member banks of the Federal Reserve System) was
$7 ,292 ,952,082, as against $7,171,434,321 on Aug. 31, 1939,
and $6,622,249,018 on Sept. 30, 1938, and comparing with
$5,698,214,612 on Oct. 31, 1920. Just before the outbreak
of the World W a r, that is, on June 30, 1914, the total was
only $3,459 ,43 4,17 4. The following is the full statement:

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a D o e s n o t in c lu d e g o l d o t h e r t h a n t h a t h e l d b y t h e T r e a s u r y ,
h T h e s e a m o u n t s a r e n o t I n c lu d e d in t h e t o t a l , s in c e t h e g o l d o r s i lv e r h e ld a s
s e c u r i t y a g a in s t g o l d a n d s ilv e r c e r t ifi c a t e s a n d T r e a s u r y n o t e s o f 1 8 9 0 Is in c lu d e d
u n d e r g o l d , s t a n d a r d s i lv e r d o l la r s , a n d s i lv e r b u l l i o n , r e s p e c t i v e l y .
c T h is t o t a l I n c lu d e s c r e d i t s w it h t h e T r e a s u r e r o f t h e U n it e d S t a t e s p a y a b le In
g o l d c e r t if i c a t e s in (1 ) t h e G o l d C e r t if i c a t e F u n d — B o a r d o f G o v e r n o r s , F e d e r a l
R e s e r v e S y s t e m , in t h e a m o u n t o f $ 1 1 ,8 5 6 .2 7 - 5 ,1 2 0 , a n d (2 ) t h e r e d e m p t i o n f u n d f o r
F e d e r a l R e s e r v e n o t e s In t h e a m o u n t o f $ 7 , 3 0 2 ,9 2 7 .
d I n c l u d e s $ 1 ,8 0 0 ,0 0 0 ,0 0 0 E x c h a n g e S t a b i li z a t i o n F u n d a n d $ 1 4 2 ,4 9 0 ,5 6 1 b a l a n c e
o f I n c r e m e n t r e s u lt in g fr o m r e d u c t i o n In w e ig h t o f t h e g o l d d o l la r .
e i n c l u d e s $ 5 9 ,3 0 0 ,0 0 0 la w f u l m o n e y d e p o s i t e d a s a r e s e r v e f o r P o s t a l S a v in g s
d e p o s its .
f T h e a m o u n t o f g o l d a n d s l iv e r c e r t if i c a t e s a n d T r e a s u r y n o t e s o f 1 8 9 0 s h o u l d b e
d e d u c t e d fr o m t h is a m o u n t b e f o r e c o m b i n i n g w it h t o t a l m o n e y h e l d i n t h e T r e a s u r y
t o a r r i v e a t t h e t o t a l a m o u n t o f m o n e y In t h e U n it e d S t a t e s .
s5 T h e m o n e y in c i r c u la t io n in c lu d e s a n y p a p e r c u r r e n c y h e l d o u t s i d e t h e c o n ­
t i n e n t a l li m it s o f t h e U n it e d S t a t e s .
N o t e — T h e r e is m a in t a in e d in t h e T r e a s u r y — (1) a s a r e s e r v e f o r U n i t e d S t a t e s
n o t e s a n d T r e a s u r y n o t e s o f 1 89 0 — $ 1 5 6 ,0 3 9 ,4 3 1 I n g o l d b u ll io n : (11) a s s e c u r i t y f o r
T r e a s u r y n o t e s o f 1 89 0 — a n e q u a l d o l l a r a m o u n t in s t a n d a r d s i lv e r d o l la r s (t h e s e
n o t e s a r e b e in g c a n c e l e d a n d r e t i r e d o n r e c e i p t ) : (ill) a s s e c u r i t y f o r o u t s t a n d i n g
s i lv e r c e r t if i c a t e s — s i lv e r In b u ll io n a n d s t a n d a r d s i lv e r d o l la r s o f a m o n e t a r y v a l u e
e q u a l t o t h e fa c e a m o u n t o f s u c h s ilv e r c e r t ifi c a t e s ; a n d (i v ) a s s e c u r i t y f o r g o l d
c e r t ifi c a t e s — g o l d b u ll io n o f a v a lu e a t t h e le g a l s t a n d a r d e q u a l t o t h e f a c e a m o u n t o f
s u c h g o l d c e r t if i c a t e s . F e d e r a l R e s e r v e n o t e s a r e o b l i g a t i o n s o f t h e U n it e d S t a t e s
a n d a fir s t lie n o n a ll t h e a s s e ts o f t h e is s u in g F e d e r a l R e s e r v e B a n k . F e d e r a l R e s e r v e
n o t e s a r e s e c u r e d b y t h e d e p o s i t w it h F e d e r a l R e s e r v e a g e n t s o f a lik e a m o u n t o f
g o l d c e r t ifi c a t e s o r o f g o l d c e r t ifi c a t e s a n d s u c h d i s c o u n t e d o r p u r c h a s e d p a p e r a s is
e li g ib le u n d e r t h e t e r m s o f t h e F e d e r a l R e s e r v e A c t , o r , u n t i l J u n e 3 0 , 1 9 4 1 , o f
d ir e c t o b l i g a t i o n s o f t h e U n it e d S t a t e s If s o a u t h o r i z e d b y a m a jo r it y v o t e o f t h e
B o a rd o f G ov ern ors o f th e F ederal R eserv e S y stem . F ederal R eserv e ban k s m u st
m a in t a in a r e s e r v e in g o l d c e r t ifi c a t e s o f a t le a s t 405 '- , in c lu d in g t h e r e d e m p t i o n fu n d
w h ic h m u s t b e d e p o s i t e d w it h t h e T r e a s u r e r o f t h e U n it e d S t a te s , a g a in s t F e d e r a l
R e s e r v e n o t e s in a c t u a l c i r c u l a t i o n .
“ G o l d c e r t if i c a t e s ” a s h e r e in u s e d in c lu d e s
c r e d i t s w it h t h e T r e a s u r e r o f t h e U n it e d S t a te s p a y a b le in g o l d c e r t if i c a t e s . F e d e r a l
R e s e r v e b a n k n o t e s a n d N a t i o n a l h a n k n o t e s a r e In p r o c e s s o f r e t i r e m e n t .

Results of Treasury Financing— $515,210,900 of 124%
Notes Maturing Dec. 15 Exchanged for 1% Notes
Secretary of the Treasury Henry Morgenthau Jr. an­
nounced Oct. 29 that seports to the Federal Reserve banks
indicated that $515,210,900 of 1 24 % Treasury notes of Series
B -1939, maturing D ec. 15, 1939, have been exchanged for
1 % Treasury notes of Series B -1944.
Treasury notes maturing D ec. 15 were outstanding in
amount of $526,232,500, indicating that holders of $11,021,600 had not exchanged them for the new notes and these
will be paid in cash when they mature. The exchange of­
fering was reported in these columns of Oct. 28, page 2616.
All subscriptions were alloted in full. They were divided
among the several Federal Reserve districts and the Treasury
as follows:

F ed era l R eserve D is t r ic t —

00

s
g

03 H r , H

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„ CO JH ’Ho
CO CO

agog S§
o

2899

T o ta l
S u b s c r ip t io n s
R e c e iv e d a n d
A llo t t e d

B o s t o n ____________________________ $ 1 0 ,5 3 2 ,5 0 0
N e w Y o r k ............................
3 5 3 .7 0 'L 3 0 0
P h i l a d e l p h i a ...................................
6 .7 5 9 ,3 0 0
C l e v e l a n d ........................................
1 1 ,6 6 1 .7 0 0
R i c h m o n d ______________________
1 0 .6 6 9 .8 0 0
4 ,6 9 3 .0 0 0
A t l a n t a _________________________
C h i c a g o _________________________
7 4 ,9 3 3 .6 0 0
1 1 ,4 5 2 ,2 0 0
S t . L o u i s ......... ................................

F e d e r a l R eserve D is t r ic t —
M i n n e a p o l i s -----------------------------K a n s a s C i t y ___________________
D a l l a s --------------S a n F r a n c i s c o ________________
T r e a s u r y ......... .............

T o ta l
S u b s c r ip t io n s
R e c e iv e d a n d
A llo t t e d

$ 5 ,1 3 7 ,0 0 0
2 ,3 9 0 , 3 0 0
3 ,6 2 8 . 3 0 0
1 8 ,7 1 8 0 0 0
9 2 5 ,0 0 0

T o t a l ............................................. $ 5 1 5 , 2 1 0 , 9 0 0

New Offering of $100,000,000 or Thereabouts of 91-Day
Treasury Bills— Amount Compares with $150,000,000 in Last Three Sales— New Issue Will Be Dated
Nov. 8, 1939
Tenders to a new offering of $100,000,000, or thereabouts,
of 91-day Treasury bills were received up to 2 p. m . (E ST)
yesterday (N o v . 3 ). For the past three weeks the Treasury
has been offering $150,000,000 of bills but decided this
week to return to its practice of issuing an amount sufficient
to retire its current bill maturity instead of acquiring an
additional $50,000,000 in “ new m oney.” A t the time of
increasing the offering (Oct. 13) Secretary Morgenthau ex­
plained that the action was taken to maintain the Treasury’s
working balance at a comfortable level. He also then said
that the question of seeking new funds would be decided on
a week-to-week basis this was noted in our issue of Oct. 14,
page 2304. The current bills, which were sold on a discount
basis to the highest bidders, will be dated N o v . 8 and will
mature on Feb. 7 ,1 9 4 0 ; on the maturity date the face amount
of the bills will be payable without interest. There is a
maturity of a similar issue of bills on N o v . 8 in amount of
$100,429,000. In his announcement of the offering, Secre­
tary Morgenthau also said:
They (the bills) will be issued in bearer form only, and in amounts or
denominations o f $1,000, $10,000, $100,000, $500,000 and $1,000,000
(maturity value).
No tender for an amount less than $1,000 will be considered. Each
tender must be in multiples o f $1,000. The price offered must be expressed
on the basis o f 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 in­
vestment securities. Tenders from others must be accompanied by a
deposit o f 10% o f the face amount o f Treasury bills applied for, unless
the tenders are accompanied by an express guaranty o f payment by an in­
corporated bank or trust company.
Immediately after the closing hour for receipt o f tenders on N ov. 3, 1939,
all tenders received at the Federal Reserve banks or branches thereof up
to the closing hour will be opened and public announcement o f the accept­
able prices will follow as soon as possible thereafter, probably on the fol­
lowing morning. The Secretary of the Treasury expressly reserves the
right to reject any or aU tenders or parts o f tenders, and to allot less than
the amount applied for, and his action in any such respect shall be final.
Those submitting tenders will be advised o f the acceptance or rejection
thereof. Payment at the price offered for Treasury bills alloted must be
made at the Federal Reserve banks in cash or other immediately available
funds on N ov. 8, 1939.
The Treasury bills will be exempt, as to principal and interest, and and
gain from the sale or other disposition thereof will also be exempt, from all
taxation, except estate and inheritance taxes. (Attention is invited to

ONE HUNDRED The Commercial & Financial Chronicle Y E A R S OLD Nov. 4, 1939

2900

—

Treasuty Decision 4550, ruling that Treasury bills are not exempt from
the gift tax). No loss from the sale or other disposition of the Treasury
bills shall be allowed as a deduction, or otherwise recognized, for the pur­
poses of any tax now or hereafter imposed by the United States or any of
its possessions.
Treasury Department Circular No. 418, as amended, and this notice
prescribe the terms of the Treasury bills and govern the conditions of
their issue.

Treasury Offers $250,000,000 of 1% Notes of RFC—-To
Be Dated Nov. 10 and Mature on July 1, 1942—
Subscription Books Closed— $3,643,000,000 Ten­
dered
Secretary of the Treasury Morgenthau on behalf of the
Reconstruction Finance Corporation, on Oct. 30, offered
for subscription, at par and accrued interest, through the
Federal Reserve banks, $250,000,000, or thereabouts, of 1 %
notes of the R F C , designated Series S. The notes will be
dated N o v . 10, 1939, and will bear interest from that date
at the rate of 1 % per annum, payable Jan. 1 and July 1 on
a semi-annual basis. They will mature on July 1, 1942,
and will not be subject to call for redemption prior to m a­
turity.
The previous R F C financing undertaken by the Treasury
was in February when $310,090,000 of the Corporation’s
two-year 11 months 7 % notes were sold. Reference to
A
this offering appeared in our issue of Feb. 18, page 959.
Secretary Morgenthau announced Oct. 31 that the sub­
scription books to the current offering closed at the close
of business that day. He disclosed on N o v . 2 that the offer­
ing had been oversubscribed more than 14 times. Subscrip­
tions amounted to $3,643,000,000 and allotments will be
announced soon.
The following is taken from his announcement pertain­
ing to the offering:
They will be issued only in bearer form with coupons attached, in de­
nominations of $1,000, $5,000, $10,000 and $100,000.
The notes will be fully and unconditionally guaranteed both as to interest
and principal by the United States. They will be exempt both as to prin­
cipal and interest from all taxation (except surtaxes, estate, inheritance,
and gift taxes) now or hereafter imposed by the United States, by any
Territory, dependency, or possession thereof, or by any State, county,
municipality or local taxing authority.
Subscriptions will be received at the Federal Reserve banks and branches,
and at the Treasury Department, Washington, they will not be received
at the RFC. Banking institutions generally may submit subscriptions
for account of customers, but only the Federal Reserve banks and the
Treasury Department are authorized to act as official agencies. Sub­
scriptions from banks and trust companies for their own account will be
received without deposit but will be restricted in each case to an amount
not exceeding one-half of the combined capital and surplus of the subscrib­
ing bank or trust company. Subscriptions from all others must be ac­
companied by payment of 10% of the amount of notes applied for.
The right is reserved to close the books as to any or all subscriptions or
classes of subscriptions at any time without notice. Subject to the reser­
vations set forth in the official circular, all subscriptions will be received
subject to allotment. Payment for any notes allotted must be made or
completed on or before Nov. 10, 1939, or on latter allotment.

The text of the official circular follows:
RECONSTRUCTION FINANCE CORPORATION
1% NOTES OF SERIES S, DUE JULY 1, 1942
Dated and bearing interest from Nov. 10, 1939
Fully and Unconditionally Guaranteed Both as to Interest and Principal
By the United States, Which Guaranty Is Expressed on the Face
of Each Note
Exempt both as to principal and interest from all taxation (except surtaxes,
estate, inheritance, and gift taxes) now or hereafter imposed by the
United States, by any Territory, dependency, or possession thereof, or
by any State, county, municipality, or local taxing authority.
1939— Department Circular No. 624— Public Debt Service
Treasury Department— Office of the Secretary
W a s h i n g t o n , O c t . 31, 1939
I.

O ffe rin g o f N o te s

1. The Secretary of the Treasury, on behalf of the R F C , invites subscrip­
tions, at par and accrued interest, from the people of the United States for
notes of the RFC, designated 1% notes of Series S. The amount of the
offering is $250,000,000 or thereabouts.
I I .

D e sc r ip tio n

o f N o tes

1. The notes will be dated Nov. 10, 1939, and will bear interest from
that date at the rate of 1% per annum, payable on a semi-annual basis on
Jan. 1 and July 1 in each year until the principal amount becomes payable.
They will mature July 1, 1942, and will not be subject to call for redemption
prior to maturity.
2. The notes will be issued under authority of an act of Congress (known
as “ Reconstruction Finance Corporation Act” ) approved Jan. 22, 1932, as
amended and supplemented, which provides that the notes shall be fully
and unconditionally guaranteed both as to interest and principal by the
United States and such guaranty shall be expressed on the face thereof;
and that they shall be exempt both as to principal and interest from all
taxation (except surtaxes, estate, inheritance and gift taxes) now or here­
after imposed by the United States, by any Territory, dependency, or pos­
session thereof, or by any State, county, municipality or local taxing au­
thority. These notes shall be lawful investments, and may be accepted
as security, for all fiduciary, trust and public funds the investment or de­
posit of which shall be under the authority or control of the United States
or any officer of officers thereof.
3. The authorizing Act further provides that in the event the RFC shall
be unable to pay upon demand, when due, the principal of or interest on
notes issued by it, the Secretary of the Treasury shall pay the amount
thereof, which is authorized to be appropriated, out of any moneys in the
Treasury not otherwise appropriated, and thereupon to the extent of the
amounts so paid the Secretary of the Treasury shall succeed to all the rights
of the holders of such notes.
4. Bearer notes with interest coupons attached will be issued in de­
nominations of $1,000, $5,000, $10,000 and $100,000. The notes will
not be issued in registered form.




—

I I I .

S u b s c r ip tio n

a n d A llo tm e n t

1. Subscriptions will be received at the Federal Reserve banks and
branches and at the Treasury Department, Washington. Banking in­
stitutions generally may submit subscriptions for account of customers,
but only the Federal Reserve banks and the Treasury Department are
authorized to act as official agencies. Others than banking institutions
will not be permitted to enter subscriptions except for their own account.
Subscriptions from banks and trust companies for their own account will
be received without deposit but will be restricted in each case to an amount
not exceeding one-half of the combined capital and surplus of the subscrib­
ing bank or trust company. Subscriptions from all others must be ac­
companied by payment of 10% of the amount of notes applied for. The
Secretary of the Treasury reserves the right to close the books as to any
or all subscriptions or classes of subscriptions at any time without notice.
2. The Secretary of the Treasury reserves the right to reject any sub­
scription , in whole or in part, to allot less than the amount of notes applied
for, to make allotments in full upon applications for smaller amounts and
to make reduced allotments upon, or to reject, applications for larger
amounts, or to adopt any or all of said methods or such other methods of
allotment and classification of allotments as shall be deemed by him to
be in the public interest; and his action in any or all of these respects shall
be final. Allotment notices will be sent out promptly upon allotment, and
the basis of the allotment will be publicly announced.
IV .

P a ym en t

1. Payment at par and accrued interest, if any, for notes alloted here­
under must be made or completed on or before Nov. 10, 1939, or on later
allotment. In every case where payment is not so completed, the payment
with application up to 10% of the amount of notes applied for shall, upon
declaration made by the Secretary of the Treasury in his discretion, be
forfeited to the United States.
V.

G en era l P ro v isio n s

1. As fiscal agents of the United States, Federal Reserve banks are au­
thorized and requested to receive subscriptions, to make allotments on the
basis and up to the amounts indicated by the Secretary of the Treasury
to the Federal Reserve banks of the respective districts, to issue allotment
notices, to receive payment for notes alloted, to make delivery of notes
on full-paid subscriptions alloted, and they may issue interim receipts pend­
ing delivery of the definite notes.
2. The Secretary of the Treasury may at any time, or from time to time,
prescribe supplemental or amendatory rules and regulations governing the
offering, which will be communicated promptly to the Federal Reserve
banks.
H E N R Y M O R G E N T H A U , J R .,
S ec r e ta r y o f th e T r e a s u r y .

An item bearing on the plans incident to the proposed
offering was given in these columns of Oct. 28 , page 2616.

Treasury Expects to Raise $500,000,000 in New Money
and Refund $1,378,000,000 in Notes Before YearEnd— May Also Seek $60,000,000 in TVA Securities
The Treasury plans bo raise $500,000,000 in new money
between now and the end of the year, Secretary Morgenthau
announced on N o v . 2 . He also said that if the bond market
remains favorable, the Treasury might refund in advance
$1,378,000,000 in notes due on M arch 15, 1940.
In addition to this financing, M r . Morgenthau said that
the Treasury also will offer between $50,000,000 and $60,000,000 of Tennessee Valley Authority securities, to reim­
burse itself for expenditures involving the acquisition by the
authority of Tennessee electric power properties from Com ­
monwealth & Southern Corp.

Treasury Reports Maturity Value of “ Baby” Bonds
Now Exceeds $3,000,000,000
The Treasury announced yesterday (N ov. 3) that the
maturity value of “ baby” savings bonds sold since they
were first issued in M arch, 1935, is now in excess of $3,000,000,000, according to United Press Washington advices
of N o v . 3 , which continued:
The maturity value as of Oct. 31 this year was $3,010,693,099. Cash
receipts from the sale of bonds as of the same date amounted to $2,258,019,824. Redemptions since March 1, 1935, aggregated $231,736,089.
In the first ten months this year the Treasury raised $701,699,722 through
the sale of baby bonds.

President Roosevelt Proclaims Nov. 23 Thanksgiving
Day— Week Earlier Than Previous Years— Urges
Nation to Give Thanks for Hope Within Us of
Day When Peace Will Reign
President Roosevelt on Oct. 31 proclaimed Nov. 23 as a
day o f general thanksgiving and called upon the Nation to
give thanks “for the hope that lives within us of the com­
ing of a day when peace and the productive activities of
peace shall reign on every continent.” He said that as a
Nation “ we are deeply grateful that in a world of turmoil
we are at peace with all countries” and “especially rejoice
in the strengthened bonds of our friendship with other
peoples of the Western Hemisphere.” The President desig­
nated the next to the last Thursday in the month instead
of the last, as had heretofore been the custom, because, as
he had previously indicated, business men had requested
the change. Last August the President announced his in­
tention to proclaim Thanksgiving this year on Nov. 23 ;
this was mentioned in our issue of Aug. 19, page 1106. The
proclamation fo llow s:
T h a n k s g i v i n g D a y — 1939
By the President of the United States of America.

A PROCLAMATION
I, Franklin D. Roosevelt, President of the United States of America, do
hereby designate Thursday, the twenty-third of November, 1939, as a day
of general thanksgiving.

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More than three centuries ago, at the season of the gathering of the
harvest, the Pilgrims humbly paused in their work and gave thanks to God
for the preservation of their community and for the abundant yield of
the soil.
A century and a half later, after the new Nation had been formed, and
the charter of the Government, the Constitution of the Republic, had
received the assent of the States, President Washington and his successors
invited the people of the Nation to lay down their tasks one day in the
year and give thanks for the blessings that had been granted them by
Divine Providence.
It is fitting that we should continue this hallowed custom and select
a day in 1939 to be dedicated to reverent thoughts of thanksgiving.
Our Nation has gone steadily forward in the application of democratic
processes to economic and social problems. We have faced the specters of
business depression, of unemployment and of widespread agricultural dis­
tress, and our positive efforts to alleviate these conditions have met with
heartening results.
We have also been permitted to see the fruition of measures which we
have undertaken in the realms of health, social welfare and the conservation
of resources.
As a Nation we are deeply grateful that in a world of turmoil we are
at peace with all countries, and we especially rejoice in the strengthened
bonds of our friendship with the other peoples of the Western Hemisphere.
Let us, on the day set aside for this purpose, give thanks to the Ruler
of the universe for the strength which He had vouchsafed us to carry on
our daily labors and for the hope that lives within us of the coming of a
day when peace and the productive activities of peace shall reign on every
continent.
In witness whereof, I have hereunto set my hand and caused the seal of
the United States of America to be affixed.
Done at the City of Washington this thirty-first day of October, in the
year of our Lord Nineteen Hundred and Thirty-nine, and of the Inde­
pendence of the United States of America the One Hundred and Sixtyfourth.
FRANKLIN D. ROOSEVELT.
By the President:
CORDELL HULL, S e c r e ta r y o f S ta t e .

Governor Lehman Proclaims Nov. 23 as Thanksgiving
Day in New York—Other States Divided on Ob­
servance of Old and New Date Set by President
Governor Herbert H. Lehman on Nov. 1 followed the ex­
ample set by President Roosevelt and proclaimed Nov. 23
as Thanksgiving Day in New York State, instead of the
traditional last Thursday of the month. In his proclama­
tion the Governor said that “ we have much for which to be
grateful in these days of world unrest,” and urged all the
people of the State to attend services. H is proclamation
follows, in p a rt:
We have been blessed with peace. We are securing the enjoyment of
the civil and religious liberties guaranteed to us by those greatest of all
human documents— the Constitution of the United States and the Bill of
Rights. Our great national resources are sufficient for our needs and we
have been spared from any major calamities.
Now, therefore, I, Herbert H. Lehman, Governor of the State of New
York, following the proclamation of the President of the United States,
do hereby proclaim Thursday, Nov. 23, as Thanksgiving Day.
I urge all people of the State to attend services in their respective
places of worship, to return thanks to their common God, and to pledge
to Him a continuing faith.
In expression of gratitude for our own blessings, the greatest of which
is peace in a world torn by war, let us in our prayers remember the
tragic condition of nations blighted by violence and seek to mitigate the
hopelessness of millions of men and women scourged from their homes,
their occupations or their religious devotions by cruel oppression or intol­
erance. They, like all of us, are children of a universal God.
Let us pray, also, that God will give our Nation and our people the
wisdom to know and to plot the right .course in our relationships in the
family of nations, and the courage ever to follow the ideals that have
made this country great.

According to the United Press, the States were evenly
divided on Nov. 1 as to whether to observe Thanksgiving
Nov. 23, as proclaimed by President Roosevelt, or the tra­
ditional last Thursday of the month. The Governors of 23
States, it is indicated, have said they would support the
President. Twenty-three others said they would hold to
tradition and proclaim Nov. 30.
The other two States,
Texas and Colorado, will observe both.
The States were divided as follows, according to these
same advices:
Nov. 23— California, Delaware, Georgia, Illinois, Indiana, Louisiana,
Maryland, Michigan, Missouri, Mississippi, Montana, New Jersey, New
York, North Dakota, Ohio, Oregon, Pennsylvania, South Carolina, Utah,
Virginia, Washington, West Virginia and Wyoming.
Nov. 30— Alabama, Arizona, Arkansas, Florida, Idaho, Iowa, Kansas,
Kentucky, Minnesota, Nebraska, Nevada, New Mexico, North Carolina,
Oklahoma, South Dakota, Tennessee, Wisconsin and the six New England
States— Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island
and Vermont— where Thanksgiving originated more than 300 years ago.

The President’s proclamation is given in another item in
this issue.

President Roosevelt Says Schools Must Teach Suc­
cessful Management of Democracy—So States in
Message on Observance of American Education
Week
In a message for American Education Week, which will
be observed Nov. 5-11, President Roosevelt said on Oct. 27
that education in our democracy teaches the practice of
reason in human affairs. The President went on to say
that “our coming generation must learn the most difficult
art in the world— the successful management of democ­
racy.” Asserting that we should think of our schools as
“training centers in the use and application of the rule of
reason in the affairs of men,” Mr. Roosevelt ended his mes­




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sage by expressing the hope “ that out of our schools may
come a generation which can persuade a bleeding world to
supplant force with reason.” American Education W eek
is sponsored jointly by the National Education Association,
the American Legion, the United States Office of Educa­
tion, and the National Congress for Parents and Teachers.
President Roosevelt’s message, which was addressed to “the
patrons, students and teachers of American schools,” fol­
lows :
Let us take note, as we again observe American Education Week through­
out our Nation, that education in our democracy teaches the practice of
reason in human affairs.
I refer not only to education that may come from books. I include
education in fair play on the athletic field and on the debating platform;
I include education for tolerance through participation in full, free discus­
sion in the classroom. Practice in the scientific method by our young
people may be more important than learning the facts of science.
From kindergarten through college our schools train us to use the
machinery of reason; parliamentary practice; the technique of coopera­
tion ; how to accept with good graces the will of the majority; how to
defend by logic and facts our deep convictions. This is education for the
American way of life.
Our schools also bring us face to face with men and women with whom
we shall share life’s struggles. In their lives and ours, struggle will never
be absent; the struggle of every individual against the stream of life ;
the struggle and competition among individuals, groups, institutions,
States and nations.
To the resolution of conflicts and struggles of life, democracy supplies
no easy answer. The easy answer, the quick but incomplete answer, is
force; tanks and torpedoes, guns and bombs. Democracy calls instead
for the application of the rule of reason to solve conflicts. It calls for
fair play in canvassing facts, for discussion and for calm and orderly
handling of difficult problems. These vital skills we Americans must
acquire in our schools.
In our schools our coming generations must learn the most difficult
art in the world— the successful management of democracy. Let us think
of uor schools during this American Education Week not only as buildings
of stone and wood and steel; not only as places to learn how to use hand
and brain, but as training centers in the use and application of the rule
of reason in the affairs of men. And let us hope that out of our schools
may come a generation which can persuade a bleeding world to supplant
force with reason.

White House Makes Public Exchange of Messages Last
April Between President Roosevelt and Soviet
President Kalivin Incident to Former’s Efforts for
World Peace— Issuance Apparently Prompted by
Remarks of Premier Molotoff’s Alleging Interven­
tion by United States in Finland’s Cause
Following a speech on Russia’s foreign policy on Oct. 31
by Premier-Foreign Commissar Yyacheslaff Molotoff, in
which President Roosevelt was mentioned as “ intervening”
in the cause of Finland, the W hite House on Nov. 1 made
public an exchange of cablegrams last April between Presi­
dent Roosevelt and Soviet President Kalinin which indi­
cated that the Soviet head had then expressed “profound
sympathy” with President Roosevelt’s appeal to Germany
and Italy for world peace. In United Press accounts from
Washington, Nov. 1, it was stated that the effect of the
publication o f the exchange of messages was to place on
record President Kalinin’s support of Mr. Roosevelt’s peace
program in contrast to Premier Molotoff’s comments of this
week. The exchange of the messages of last April were
made public as follows on Nov. 1 by the W hite H ou se:
On April 16, 1939, the following cablegram addressed to President
Roosevelt was received at the White House:
" M r . President:
“ I consider it m y pleasant duty to convey to you m y cordial congratulations (and
an expression o f profound sym pathy with the noble appeal which you have addressed
to the governments o f Germany and Italy. Y o u m ay rest assured that your initia­
tive finds most ardent response in the hearts o f the peoples o f the Soviet Socialist
Union.
"Sincerely desirous o f preservation o f universal’ peace.
" K A L I N IN ”
On A p ril 21, 1939, the President addressed the fo llo w in g message t o :
“ Mikhail I. Kalinin, President o f the Presidium o f the Supreme Soviet
M oscow (USSR)
“ I have received your friendly message and am glad to learn that your views with
regard to my efforts on behalf of world peace are similar to those expressed to me by
the heads o f numerous other states.
^
B*
“ F R A N K L IN D . R O O S E V E L T ”

In his address before the Supreme Soviet meeting in
Moscow, Oct. 31, Premier Molotoff referred to the negotia­
tions begun with Finnish representatives proposing the con­
clusion of a mutual assistance pact, and in part he was
quoted in Associated Press advices from Moscow as saying:
In view of all this we do not think that Finland will seek a pretext to
frustrate the proposed agreement. This would not be in line with the
policy of friendly Soviet-Finnish relations and would, of course, work to
the serious detriment of Finland. We are certain that Finnish leading
circles will properly understand the importance of consolidating friendly
Soviet-Finnish relations and that Finnish public men will not yield to antiSoviet influence or instigation from any quarter.
I must, however, inform you that even the President of the United
States of America considered it proper to intervene in these matters,
which one finds it hard to reconcile with the American policy of neutrality.
In a message to Comrade Kalanin, Chairman of the Presidium of the
Supreme Soviet, dated Oct. 12, Mr. Roosevelt expressed the hope that the
friendly and peaceful relations between the U. S. S. R. and Finland would
be preserved and developed.

Premier Molotoff’s remarks were apparently based on a
message sent Oct. 11 by Mr. Roosevelt to President Kalinin
expressing the hope that Soviet demands on Finland would
not be inconsistent with maintenance of peaceful relations
between the two countries, and the independence of each;
the text of that message and the Soviet President’s reply
were given in our issue of Oct. 21, page 2444. President

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Roosevelt’s appeal to Germany and Italy for a guarantee
of a 10-year peace was made on April 14, 1939; the text of
the message appeared in these columns April 22, page 2350.

President Roosevelt Calls Action of Dies Committee
in Publishing List of Mail and Membership Members
of American League for Peace and Democracy
“ Sordid Procedure”
The publication on Oct. 25 by the House Dies Committee
of what was described as a “membership and mailing list”
of the American League for Peace and Democracy, which
included the names of a number of Government employees,
was characterized on Oct. 27 by President Roosevelt as a
“sordid procedure.” The President’s description was given
at a press conference. The House committee had published
the names after declaring, according to Associated Press
accounts from Washington, that the League is a “front”
for the Communist party in the United States; this charge,
it is stated, was denied by League officials. Martin Dies
is Chairman of the committee, which was named to investi­
gate un-American activities.
President Roosevelt’s com­
ments on the committee’s action were indicated as follows
in Associated Press advices from Washington, Oct. 2 7 :
When President Roosevelt was asked at his press conference for an
expression of opinion, he called the committee action “ sordid procedure,”
though he said he was not familiar with details. Then he permitted
reporters to quote his rebuking words directly, a thing he seldom does
unless he wishes to emphasize a statement.

In a Washington dispatch, Oct. 28, to the New York
“Times” Mr. Dies was reported as saying that his com­
mittee did not assert that the Peace League members were
Communists.
Mr. Dies, in an address in New York on
Oct. 27 before the New York City Federation of Women’s
Clubs, defended the action of his committee in making pub­
lic the names of Government employees on membership
and mailing lists of the American League for Peace and
Democracy. In a radio address from Washington, Oct. 28,
Mr. Dies also took occasion to refer to the President’s com­
ments, and, in part, his radio broadcast was reported as
follows in a dispatch from Washington to the “Times” :
The investigation, said the Chairman, would be greatly hampered if
the Administration did not change its attitude, but, he added, he would
rather see the committee die than be “ party to a cowardly whitewash.”
Then, appealing to the American people, he suggested that they write
their “ servants in Washington” if they wished the investigation to go
on as now conducted.
“ I know,” said Mr. Dies, “ that you will understand me when I say
that I have been deeply grieved by the President’s characterization of the
proceedings of our committee as ‘sordid.’ I have not sought and will
not now enter into controversy with the Chief Executive of my Govern­
ment. Neither will I say that my wisdom and judgment are superior to
his, but I do know that the Federal Government has Communists in key
positions, and nothing will deter me from exposing them to the people.”

From Philadelphia, Oct. 29, advices to the New York
“Tim es” said, in p a rt:
The American League for Peace and Democracy, ending its “ national
emeigency conference” here today, made abolition of the Dies Committee
its first big objective and laid plans for a membership and fund-raising
campaign.

The dispatch also reported its National Chairman, Dr.
Harry F. Ward, as saying that the Dies Committee’s activi­
ties represented “a war on the New Deal and its policies
through us,” and, according to the dispatch, the League, at
its closing session, denounced as false every assertion made
by Representative Dies.

President Roosevelt Endorses State Compacts on Oil—
Receives Report from Interstate Oil Commission
President Roosevelt on Oct. 24 again approved the prin­
ciple of controlling America’s oil production through State
compacts. In reporting this, Washington Associated Press
advices, Oct. 24, said:
In response to press conference questions he asserted that several years
ago he had favored that principle and felt it should be given ample oppor­
tunity to see whether it would work. The alternative to control through
agreements among the States, he said, was Federal regulation, which he
preferred to avoid.
While the compact method has not been wholly successful, the President
said, it is felt that it can be made a success.
He was asked whether there was anything to reports in California that
he had indorsed the Atkinson Oil Control bill pending in the State Legis­
lature. The President said he had done so and considered the measure a
further implementation o f efforts to take care of oil production problems
through compacts between the States.

Regarding the President’s meeting on Oct. 18 with the Oil
Compact Commission, Associated Press advices from
Washington, Oct. 18, said:
Members o f the Seven-State Interstate Oil Compact Commission advised
President Roosevelt today that all the oil needed “ under any emergency”
merely by “ opening the valves.”
The President received a report on progress being made in conservation
and proration o f oil production from E. O. Thompson, member o f the
Texas Railroad Commission and Chairman o f the Compact Commission,
and W. J. Holloway, o f Oklahoma City, Oklahoma’s representative.
M r. Thompson said they reported there was now a reserve o f 17,500,000,000 barrels o f oil, compared with 5,500,000,000 in 1925 and that the reserves
were being increased. He expressed the opinion that the various States were
doing “ an adequate jo b ” o f controlling oil production and that there was no
need for Federal regulation. He said the President “ seemed pleased that
the States were doing a good jo b .”
Rather than stepping up production to meet any wartime emergency,
M r. Thompson said, the problem at present is to hold down the output to




YE A R S OLD

N ov. 4, 1939

market requirements of three to four million barrels a day.
said, could produce 15,000,000 barrels.

One field, he

President Roosevelt Rejects Plan for Battery-Brooklyn
Bridge in New York City— Supports Secretary of
War Woodring’s Adverse Decision
President Roosevelt informed Robert Moses, New York
City Park Commissioner, on Oct. 31 that the proposal for a
Battery-Brooklyn bridge in New York City was rejected.
Secretary of W a r Woodring had previously opposed the con­
struction of a bridge as a hazard to national defense, and
Mr. Moses appealed to the President to appoint a special
commission to reconsider the application. This Mr. Roose­
velt refused, stating that the governing factor was that it
“would not be in the best interests of national defense.”
The appeal to the President was submitted on Oct. 23 by
Mayor F. H. LaGuardia. The President’s letter, made pub­
lic by Mr. Moses Oct. 31, fo llow s:
T h e W h it e H o u s e , W a s h i n g to n , O c t. 30, 1939.
My dear Mr. Moses:
I am in receipt of the letter of Oct. 19, signed by you, Mr. McLaugh,
and Mr. Stephens, appealing from the decision of the Secretary of War
with reference to the contemplated construction of the Brooklyn-Battery
bridge. You urge that this application be reconsidered by an impartial
committee, and, as a precedent, refer to the Hoover-Young Commission
which was formed to consider the construction of the San Francisco-Oakland bridge.
I amvery sympathetic with the desire of the people of New York to
improve its traffic facilities, and I have read with interest the views set
forth in your splendidly prepared appeal. However, as undoubtedly you
are fully aware, the governing factor in arriving at a decision to with­
hold approval of the plans for the Brooklyn-Battery bridge was that the
construction of the bridge would not be in the best interests of national
defense. This conclusion was reached after receiving the views of the
Treasury Department and the Navy Department as well as those of the
War Department general staff, and after weighing carefully all phases
of the case.
I have consulted with the Secretary of War, who has carefully recon­
sidered the entire question and who advises me that in the light of world
conditions today he is convinced that his original decision should stand
and that no useful purpose would be served at this time by referring the
matter to a commission.
Very sincerely yours,
FRANKLIN D. ROOSEVELT.

The Tri-Borough Bridge Authority filed an application
with the W ar Department on Feb. 8 , 1939 and a public
hearing was held April 25. Following a disapproval of the
application on M a y 17 by the Chief Engineer of the W ar
Department, a revised application was submitted on M a y 24
and Secretary Woodring decided against the proposal on
July 17.

President Roosevelt to Ask Congress for $275,000,000
to Meet Increases Under Neutrality Program
President Roosevelt announced at his press conference,
Oct. 31, that he would ask Congress for a deficiency appro­
priation of $275,000,000 to cover the increase in the Army,
Navy, Marine Corps and Department of Justice and for the
recommissioning of World W ar destroyers for patrol duty.
The President said that he had sent a letter to Representa­
tive Taylor of Colorado, Chairman of the House Appropria­
tions Committee, informing him of the cost of the program
for safeguarding the neutrality of the United States and
strengthening the national defense under the proclamation
of a limited national emergency, issued Sept. 8 (noted in
our issue of Sept. 9, page 1501). In Washington advices
of Oct. 31 to the New York “Herald Tribune” it was stated :
Mr. Roosevelt said that while the increase in the rate of expenditures
would not require additional appropriations in 1940, it was in order for
Congress to take up the details of the measures which made additional
expenditures necessary. The President indicated that he would be glad
to take these details up with the committee at the beginning of the next
Tegular session of Congress.
President Roosevelt said that he had communicated with Representative
James G. Scrugham, Democrat of Nevada, Chairman of the Naval Affairs
Subcommittee of the Appropriations Committee. Mr. Roosevelt said that
he told the Representative that he would send up detailed supplemental
estimates on Nov. 13 so that his committee could study them and be
prepared for the regular committee meeting about Dec. 1.
In his early estimates, the President recalled, he had placed the in­
creases in actual costs for the Army, Navy, Coast Guard, Treasury and
putting the ships in commission at less than $300,000,000.

The House Appropriations Committee will meet on
Nov. 27 to consider the President’s request, it was decided
Nov. 1 at a meeting of the deficiency subcommittee.

President Roosevelt Questions Necessity of Loans on
1939 Cotton Crop
At his press conference, Oct. 31, President Roosevelt ques­
tioned the need for making loans on 1939 cotton and de­
clared that the Department of Agriculture would have to
prove its case before funds would be made available. This
is learned from Washington advices, Oct. 31, to the New
York “Journal of Commerce” , which also stated:
A controversy appears to have arisen between the Bureau of the Budget
and the Department over the question, following recommendations by
Secretary Wallace to the President that financial assistance be given so
that the growers of better grades and staples of cotton might have their
position improved.
Asked concerning reports that the Bureau of the Budget had rejected
the suggestion of Secretary Wallace, President Roosevelt told his press
conference that the matter is being discussed between them and that he
also is trying to find out why the Department wants more loan money

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on the 1939 crop. He added that he had not been sufficiently informed
yet as to why more money is wanted, at the same time declaring he
thought that the Department had enough, and so it will have to prove
its case before further allotments are made.

United States to Cooperate with Geneva Board for
Control of Narcotics
Cooperation of the United States Government with the
Permanent Central Opium Board and the Drug Supervisory
Body at Geneva for the international control of narcotics
was pledged in an exchange of letters between E. Felkin,
Secretary of the Central Board, and Secretary of State Hull,
made public Oct. 25. This was reported in a Washington
dispatch, Oct. 25, to the New York “Times”, which also
said :
Hr. Felkin’s letter said that, notwithstanding the dislocation of war,
international control had been functioning and would continue to function
regularly. In reply Secretary Hull said that the United States Govern­
ment “ regards it as of the highest importance” that the two control
groups “ should be enabled to function adequately, effectively and without
interruption, and that they should enjoy the cooperation of all nations.”
It was announced that the United States Treasury is taking steps to
assure adequate assistance from United States manufacturers in meeting
the needs of South American countiies for sufficient supplies of drugs for
the ill and injured through “ the usual movement in the narcotic drug
trade.”

Congress Passes Neutrality Measure Agreed on by
Conferees— New Legislation Repeals Arms Em­
bargo—Embodies “ Cash-and-Carry” Provision
In the form of a joint resolution, to be known as the
“ Neutrality Act of 1939” Congress last night passed legisla­
tion, revising the heretofore existing neutrality law, so as to
repeal the embargo on shipments (in other than American
ships) of arms and ammunitions to belligerent nations, and
otherwise amending the neutrality laws.
Congressional approval yesterday (N ov. 3) was given to
the report of a joint Conference Committee of Senators and
Representatives. As approved the new legislation sub­
stitutes for the arms embargo, a “ cash and carry” provision
for the sale of such arms to belligerents.
The Conference Committee, in reaching final agreement
on the neutrality measure yesterday (said the Associated
Press) approved provisions relaxing the shipping restrictions
of the measure to give neutral vessels equal rights in carrying
United States goods with American vessels traveling in the
South Atlantic, Pacific, Indian oceans and dependent waters.
In the Associated Press accounts from Washington last night,
it was also stated:
The conferees also adopted a preamble to the bill, first suggested last week
by Senator Connally, Democrat, o f Texas, setting out that this Nation re­
serves all o f its rights under international law despite the restrictions placed
on American citizens and ships.
Four Republican members o f the 11-man group declined to sign the con­
ference report. Senator Pittman, Chairman o f the conference, said. These
were Senators Borah o f Idaho and Johnson o f California, and Representa­
tives Fish o f New York and Eaton o f New Jersey.
Explaining the provisions acted upon by the Committee, Mr. Pittman
said neutral vessels would be permitted to carry cargoes originating in the
United States to exempted areas in the Pacific and South Atlantic without
transfer o f title being required. However, if the President designated com­
bat zones into which .American vessels could not go, the title transfer re­
quirement immediately would be placed on cargoes carried by other neutrals
to those ports.
The Conference Committee also excluded from the rigid credit provisions
o f the bill the running accounts o f telegraph, radio, cable and telephone
companies, Air. Pittman said.
Provisions to place the act in operation also were relaxed somewhat.
Under the agreed language, vessels which left American ports before the
issuance o f a presidential proclamation putting the new Act into operation
would be exempted from its restrictive clauses.

Following the Senate adoption of the resolution on Oct.
27, a majority of the House Rules Committee on Oct 30
approved a method of procedure designed to accelerate pas­
sage of the bill in the House. A Washington dispatch of
Oct. 30 to the New York “ Herald Tribune” described this
action in part as follows:
The proposed parliamentary procedure, bitterly assailed as a “ gag rule’’
by Representatives opposing repeal o f the embargo, stems from the fact
that the House approved last June in the regular session o f Congress an
Administration-sponsored neutrality revision bill but wrote into it a limited
arms embargo, against wishes o f Administration leaders. The bill passed
by the Senate at this special sesson comes before the House as an amendment
to the House-approved measure. It is these two bills which w'ould be sent
to conference for adjustment o f differences.
Under the rule proposed today, members o f the House could not amend
the Senate bill on the House floor, although they could move to instruct
the House members o f the conference committee on what should be left in
the measure finally resulting, this procedure itself being a rare one in that
conferees usually receive no such instructions until after a conference dead­
lock.
The awkwardness o f the situation, created deliberately perhaps by failure
of the Senate to ask for a conference, will result in a House debate on a
motion to instruct the House conferees. Leaders acknowledge that this
debate might last 20 hours, or two hours, but they insisted it would permit
members to go on record, if they so desired, on the arms embargo repealer
and Senate proposals not in the House bill, notably the complicated shipping
provisions, loans under the Senate’s cash-and-carry provisions and the
discretionary authority vested in the President to declare “ combat areas.”
The first test o f strength will come tomorrow with a vote on the rule
and possibly a vote to relax the proposed procedure and permit the House
to consider the Senate version as an “ original” bill. Representative Hamil­
ton Fish jr., o f New York, ranking Republican member o f the Foreign
Affairs Committee and a member o f the Rules Committee, told the members
of the latter group today that he would use every means to give the House a
free hand.




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One suggestion was that House opponents o f repeal of the limited em­
bargo in the House version-—on “ arms and ammunition” or “ lethal” weapons
only— would propose an added ban on poison gas and “ put members on the
spot” o f voting for or against the exportation o f “ lethal weapons and poison
gas.”
“ The Senate rewrote the bill,” M r. Fish said, “ and if we send it to a
conference committee from the Senate Foreign Relations and the House
Foreign Affairs group, it will be packed in favor of the Senate bill.
“ This is a ‘gag’ rule, and if it goes through, the House will cease to be
a legislative body and become a rubber stamp for the Senate. This Rules
Committee can make any arrangement it wishes for the House, and I
want to put you on notice that House members know the Senate does just
as it pleases.”
After Representative Adolph J. Sabath, (Democrat), o f Illinois, Chairman
o f the Rules Committee, read the prepared resolution which the House will
be asked to adopt tomorrow, Representative Lawrence Lewis, (Democrat),
o f Colorado, moved its adoption. Immediately, Representative Carl
Mapes, of Michigan, ranking Republican member, demanded that a group
o f members o f the House receive an opportunity to be heard. After con­
siderable bickering, these witnesses, all in favor o f opening the procedure in
the House to amendments, were permitted to speak.

On Oct. 31 the House adopted by a vote of 237 to 177 the
rule providing that the resolution be sent to a joint SenateHouse Conference to adjust the differences between the
Senate resolution and that passed by the House last June.
As to this action Washington advices Oct. 31 to the New
York “ Times” said in part:
The only record vote o f the day, which brought 237 ayes and 177 nays,
a margin of 60, was merely on a previous question, a motion offered by
Representative Rayburn, majority leader, to close debate on adotption
o f a special rule to send the conflicting House and Senate versions o f neu­
trality revision to conference with the Senate.
It was a vote on a parliamentary question which might or might not
foreshadow the attitude o f members when the question of retaining or
repealing the automatic arms embargo of the present law comes up for
decision.
*<4
The whips discovered, by comparing this roll-call, which was the special
session’s first record vote in the House having to do, even remotely, with
the neutrality issue, that their showing compared favorably with what they
were able to accomplish when the House revolted last June and adopted the
Vorys amendment, restoring the arms embargo, against Administration
wishes.
On that occasion the amendment offered by the Republican from Ohio
was adopted by 214 to 173, after Speaker Bankhead, M r. Rayburn and
other Administration spokesmen had pleaded with the House to defeat it
The winning side o f 214 votes included 61 Democrats.
Today 48 of these Democrats voted with the Administration. Likewise
one Republican and one Farmer-Labor member who had opposed the Ad­
ministration last June voted with it today.
Against this gain o f 50 votes, the Administration lost five Democrats
and four Republicans who had voted against the Vorys amendment. The
net gain o f 41 votes just equaled the margin by which the Vorys amendment
was put into the Bloom resolution last Spring.

It was indicated on N o v . 1 in a Washington account to
the New York “ Journal of Commerce” that further revision
of the ship prohibition sections of the Administration’s
neutrality measure was urged by Chairman Bland (Demo­
crat) of Virginia of the House Merchant Marine Committee
upon prospective members of the House conference com­
mittee on the bill. From these advices we quote:
S u g g ested C h a n g e s O u tlin ed

1. Wipe out the proposed satutory prohibitions and heavy penalties im­
posed American vessels operating to ports of belligerents in Europe.
2. Fermit American vessels to maintain their routes to any pert on
the Mediterranean and coastal and inland waters south of 40 degrees north
latitude.
3. Extend the period o f grace allowed American vessels preparing to
sail to prohibited areas before the prohibitions go into effect.
4. Clarify the Senate modifications of the shipping bans to make certain
that coastal and inland waters dependent to the oceans and seas exempted
in the bill are open to American vessels.
The Bland proposals came to light as Administration forces in the House
pressed for a vote tomorrow on the question o f instructing conferees on
arms embargo and credit provisions of the bill and as indications came that
the isolationists might, under the parliamentary situation surrounding the
bill, be shut off from their planned attempt to have combat area provisions
o f the Senate bill eliminated.
Chairman Bland has submitted to probable appointees o f the five-man
committee to be named by Speaker Bankhead tomorrow to meet with a
similar Senate group to iron out differences in the legislation between
the two houses, suggested changes in the language of Section 2 o f the bill
When the House recessed late today it had before it three propositions
on which roll call votes will be sought: (1) The Shanley motion to instruct
House conferees to insist upon retention o f the present law embargo on
shipment of arms, ammunitions and implements of war to belligerents;
(2) the Vorys amendment to that motion to limit the embargo to “ lethal”
weapons, and (3) the Wolcott amendment to prevent Government agencies
from making loans to belligerents.
It had been anticipated that another amendment would be sought by the
isolationist block to have striken from the bill those provisions of the Senate
version which would authorize the President to establish combat areas
wherein he feels it would be dangerous for American vessels to operate.
Because the rules o f the House limit the number o f amendments which
may be offered to a pending motion to two, it appeared tonight that the
isolationists would be precluded from offering this proposal.

Reporting that the neutrality resolution was sent to
conference on N o v . 2 with its conferees free to compromise
the many differences in the legislation with the Senate on
N o v . 2, the “ Journal of Commerce” had the following to
say in its advices from its Washington bureau:
In a rapid series o f roll calls, Administration forces rejected demands
of the isolationist block for continuation o f the present law’s embargo on
export o f arms, munitions and implements of war, imposition of pro­
hibitions against shipment o f “ lethal” weapons and a tightening o f credit
restrictions upon belligerents.
W o lc o tt

M o tio n

B e a te n

First, the House rejected by a vote o f 228 to 196 the motion o f Repre­
sentative Wolcott (Rep., Mich.) to instruct House conferees to insist upon

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Commercial & Financial Chronicle— YEARS

i nclusion of a provision in the bill to prohibit the R. F. C ., Export-Import
Bank and other Government agencies from making loans to belligerents or
aiding in the financing of their exports from the United States.
Then the House voted 245 to 179 against the motion of Representative
Vorys (Rep., Ohio) to instruct conferees to insist upon retention in the
final draft of the legislation of House provisions embargoing shipments of
“ lethal” weapons to belligerents.
Finally the House by 243 to 181 voted down the Shanley motion to
instruct the conferees to hold out for retention of the existing law’s pro­
hibitions against shipments of arms, munitions and implements of war to
belligerents.
For all practical purposes effect of the House vote is to repeal embargo
provisions of existing law and open up the markets of the United States for
arms, munitions and implements of war to any nation which can pay cash
and take the articles away in other than American vessels.
Conferees named by Speaker Bankhead immediately after the votes
planned to meet with a similar group appointed earlier by Vice-President
Garner for the Senate at 10 a. m. tomorrow to work out an agreement
on the differences in the bill with the hope of arriving at an early com­
promise making possible adjournment of the special session sine die to­
morrow night.
C o n fe r e e s A r e N a m e d

Those named to the conference committee by the Speaker were:—
Chairman Bloom (Dem., N . Y .) of the Foreign Affairs Committee; Rep­
resentatives Luther Johnson (Dem., T ex.), Kee (Dem., W . V a .), Fish
(Rep., N . Y .) and Eaton (Rep., N . J.).
The Senate conferees are: Chairman Pittman (Dem., Nev.) of the Foreign
Relations Committee, Senators Connally (Dem., Tex.), George (Dem.,
G a.), Wagner (Dem., N . Y .) , Borah (Rep., Idaho) and Johnson (Rep.,
Calif.).
With the exception of the arms embargo issue which now has been settled
by the refusal of the House to instruct its conferees, major differences be­
tween the House and Senate versions of the legislation are in its effect
upon American shipping. The House proposed in its bill originally that
the principles of international law govern operations of American ships,
but the Senate wrote in its bill statutory bans on American bottoms visiting
belligerent ports of Europe and proposed that the President be empowered
to set up combat areas in which America vessels would be prohibited from
entering.

The Senate approval of the neutrality resolution a week
ago (Oet. 27) by a vote of 63 to 30, came after four weeks of
debate; earlier in the day, by a vote of 67 to 22, the Senate
rejected a substitute bill by Senator N ye (Republican) of
N orth Dakota designed to retain the arms embargo. During
the day an amendment by Senator La Follette (Progressive)
of Wisconsin, requiring a national “ advisory referendum”
prior to any declaration of offensive war by this country was
debated, as to which United Press advices from Washington,
O ct. 27 said:
The La Follette Amendment lost, 73 to 17, but only after an extensive
discussion which helped carry the Senate along into a night session.
The La Follette plan called for a seven-member advisory board composed
of the Vice-President, three senators and three representatives, to handle
the “advisoy election” on a war declaration.

It was also noted in the same advices that the Senate
defeated, 65 to 26, an amendment by Senator Clark to close
American ports to the armed merchant ships of belligerents.
It also refused, 50 to 43, to reconsider an earlier decision
against placing four members of Congress on the National
Munitions Control Board. The United Press likewise (Oct 27)
said:
Senator Danaher (R ., Conn.) failed in an effort to tighten the title
transfer section of the bill to require the payment of cash on nonmilitary
goods sold by individuals in this country to individuals in belligerent coun­
tries. His amendment was beaten, 60 to 30. . .
B y its action, the Senate repealed the embargo and authorized sale of
arms, ammunition and war materials to all nations, including belligerents,
but the latter must buy them on a strict “take title” and “ cash and carry”
basis. These safeguards are intended to protect the Nation from being
drawn into war through the sinking of American ships laden with war
weapons.
Under the plan, belligerents purchasing munitions in this country must
pay cash, take title to the goods and transport them In their own ships.

The vote in the House on N o v . 2 for continuing the em­
bargo was made up of 38 Democrats, 143 Republicans and
I Progressives, and voting against the bill were 200 D em o­
C
crats, 21 Republicans, 1 American Laborite and 1 FarmerLab orite.
The Senate vote on Oct. 27 of 63 to 30 consisted of 54
Democrats, 8 Republicans and 1 Independent for the A d­
ministration’s neutrality bill, and 12 Democrats, 15 Repub­
licans, 2 Farmer-Laborites and 1 Progressive against the bill.
An item bearing on the Senate action on the neutrality
legislation appeared in our issue of a week ago (Oct. 28)
page 2618.
A t the last session of Congress the House (June 30, 1939)
passed a neutrality bill with a modified form of the arms
embargo, which the President opposed; this was noted in our
issue of July 8, page 193; later on, July 11, the Senate Foreign
Relations Committee voted to postpone consideration of
neutrality legislation, and a few days later (July 14) President
Roosevelt in a special message to Congress urged action
(reported in these columns of July 15, page 33 9).
The
President on July 18 conceded defeat on neutrality revision
(reference thereto appearing in our July 22 issue, page 492)
and on Sept. 13 issued a proclamation summoning Congress
to meet in special session Sept. 21 as was noted in these
columns Sept. 16, page 1694. The text of his message to
Congress on neutrality revision was given in our issue of
Sept. 23, page 1817, and Senate debate on the measure was
given in the following issues: Sept. 30, pages 2009 and 2014;
Oet. 7, page 2164; Oct. 14, page 2306; O ct. 21 , page 2447,
and Oct. 28, page 2618.




OLD

Nov. 4, 1939

Attorney General Murphy Interprets Hatch Law—
Rules Federal Employees May Not Hold Office in
Political Party or Attend Conventions as Delegates
Attorney General Frank M urphy issued on O ct. 26 an in­
terpretation of the provisions of the Hatch Law, which pro­
hibits Federal employees from taking an active part in
politics. He said the Act precluded aotendenee of Federal
employees at political conventions, and barred them from
holding any office in any political party. This was learned
from International News Service advices appearing in the
Washington “ Post” of Oct. 27, which went on to say:
M r. Murphy decreed the following acts by Federal employees were pro­
hibited because they constituted “taking active part in political manage­
ment or in political campaigns” within the meaning and intent of the Act:
Holding office in a political party or in a political club.
Attending political conventions as a delegate or an alternate.
Serving on committees of a political party or political club.
Distributing buttons or printed matter in aupport of any candidate or
party.
Serving at the party headquarters or as watchers at polls, or otherwise
assisting a party or candidate in any primary or election campaign.
Being a candidate for elective office— -Federal, State or local— and solicit­
ing funds for a political organization or campaign fund.
M r. Murphy said his rulings might require extensive future revision, and
emphasized the need for additional, supplemental legislation, particularly
to clarify the status of State employees who are paid in part or entirely
with Federal funds.
The following Federal employees, he said, are covered by the Act:
United States attorneys and marshals, their assistants and deputies:
special attorneys of the Department of Justice, special assistants to the
Attorney General, temporary substitutes and per diem employees during
period of their employment, reserve officers of the Army, N avy and M arrine Corps during active duty, furloughed employees and employees on
leave, whether with or without pay; officers and employees of Govermental
agencies such as the HOLC, the RFC and Public Works Administration;
officers and employees occupying administrative and supervisory posi­
tions in the W P A , the N Y A and CCC.
He ruled exempt from the Act’s provisions the following groups:
Officers and employees of the legislative branch of the Federal Govern­
ment, including secretaries, clerks to Congressmen and Congressional com­
mittees; officers and employees of the judicial branch, including United
States commissioners, clerks of Federal courts, bankruptcy referees and
their secretaries, deputies and clerks.
Officers and employees of State and local governments, even though
their employment involves expenditure of Federal funds; persons retained
to perform special services on a fee basis: persons receiving benefit payments,
such as old-age assistance under the Social Security Act, agricultural con­
servation payments and retired Federal employees.

Previous rulings by M r . M urphy, the Department of
Justice and the Civil Service Commission appeared in our
issue of Aug. 19, page 1110.

German-American Mixed Claims Commission Grants
Awards of $50,000,000 for Damages in Black Tom
and Kingsland Explosions— Overrules Protests by
Germany— Secretary Hull Declined to Intervene
The German-American Mixed Claims Commission on
Oct. 30 announced awards amounting to nearly $50,000,000
to persons and corporations suffering damages in the Black
Tom and Kingsland, N. J., explosions which occurred just
before the United States declared war on Germany in 1917.
The awards were made despite protests from Germany,
which sought through the State Department to prevent final
action. They represented settlement of 153 American and
Canadian claims totaling $21,157,227, plus interest at 5 % ,
which it is estimated brings the total claims to approxi­
mately $50,000,000.
The awards were made by Umpire
Owen J. Roberts (Associate Justice of the United States
Supreme Court) after the Commission had found on June 15
that Imperial Germany was responsible for the munitions
explosions in the New York port area before America
entered the World W ar. In a Washington account, Oct. 30,
to the New York “Herald Tribune” it was stated:
Justice Roberts revealed that he had made the awards despite an appeal
to the State Department to intervene in the case by Hans Thomsen, coun­
selor of the German Embassy.
The German diplomat had asked the
Department to quash the proceedings of what he referred to as a “ rump
commission.”
Cordell Hull, Secretary of State, refused, and in replying
to Herr Thomsen characterized as “ unwarranted” the German official’s
criticism and claim that Justice Roberts had committed “ illegal acts.”
Germany has denied the right of the Commission to sit on the matter
because Dr. Victor Huecking, the German Commissioner, walked out on
the deliberations before the decision was made last June that German
sabotage was responsible for the munitions explosions which occurred in
the New York port area in 1916 and 1917.
Germany deposited between $23,000,000 and $26,000,000 to meet the
awards in the case in a special account at the United States Treasury.
The Treasury also holds about $500,000,000 in the bonds of the former
German republic.
Dr. Richard Paulig, the German agent, was notified of today’s hearing,
the American Commissioner, Christopher B. Garnett, said. At the session
Mr. Garnett made public the correspondence which passed between Herr
Thomsen and the Secretary of State on the claims.
In reply to Herr Thomsen’s request that the proceedings be quashed, and
his statement that Justice Roberts “ had no neutrality at all,” Mr. Hull
replied as follows:
“ I must refrain from engaging in a discussion of the various com plaints and pro­
tests set out in your com m unication and content myself by stating that, since the
Department is without Jurisdiction over the Com m ission, I consider that it would
be highly inappropriate for it to intervene directly or indirectly in the w ork of the
Commission, or to endeavor, in the slightest manner, to determine the course of
its proceedings.
“ I have entire confidence in the ability and integrity o f the umpire and the C om ­
missioner appointed b y the United States, despite your severe and, I believe, entirely
unwarranred criticism, and I am constrained to invite your attention to the fact
that the remarkable action o f the Commissioner appointed b y Germany was ap­
parently designed to frustrate or postpone indefinitely the work o f the Commission
at a time when, after years of labor on the particular cases involved, it was expected
that its functions would be brought to a conclusion.”

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The Commercial & Financial Chronicle —

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2905

Since it is probable that nothing can be realized on the bonds of the
German republic. Commission aides said that the sum deposited at the
Treasury to cover the payment of the claims would probably be prorated
among claimants.
The claims originated in the explosion of the freight terminal on Black
Tom Island in New York harbor on July 30, 1916, when 2,000,000 pounds
of munitions blew up, . . . and the Kingsland munitions plant blast
on Jan. 11, 1916, when 500,000 three-inch shells exploded, started by a
fire in the plant.

at these low rates, M r . Pelley pointed out. The scope of
the tickets provide what might appropriately be called
“ Grand Circle Tours of North Am erica.”

Secretary Hull’s letter, it is stated, was dated Oct. 30.
According to Associated Press advices from Washington,
Oct. 30, major awards made by the Commission include:

The United States -Housing Authority m ay invite the
private money market to invest in $770,000,000 of short­
term slum clearance and low-cost housing securities during
the next calendar year, it was announced Oct. 29 by Admin­
istrator N athan Straus.
In explaining this new policy,
Associated Press, Washington advices, Oct. 29, had the
following to say concerning M r . Straus’ remarks.:

Lehigh Valley RR., $9,900,322 ; the agency of the Canadian Car &
Foundry Co., $5,871,105; the Kingsland Underwriters, which paid insur­
ance on some of the losses, $1,311,203 ; the Delaware Lackawanna & West­
ern RR., $32,676; the Black Tom Underwriters, $2,095,607; the Bethle­
hem Steel Co., $1,886,491.

The same advices sa id :
The remainder was small claims. Aides of the Commission said they
were unable immediately to give the exact total awarded, including inter­
est, because interest on the various claims had run for different periods
in the years elapsing since they were filed.

Reference to the decision of the Mixed Claims Commis­
sion holding Germany responsible for the munitions disaster
was made in these columns July 1, 1939, page 39.

Fourteen American Flag Ships Sold to Brazil— Purchase
Price $3,500,000
The sale of 14 M oore-M c Cor mack Line ships to the
Brazilian Government’s Lloyd Brasileiro Line was com­
pleted on Oct. 25 when a contract was signed at the offices
of M oore-M cCorm ack Lines in N ew York C ity. The pur­
chase price was about $3,500 ,00 0.
M ajor Napoleao de
Aleneastro Guimaes, Brazilian Vice-Minister of Public
Works and Transport, and Captain Manuel Celestino, New
York head of the Lloyd Brasileiro, signed for the Brazilian
Government, and Albert V . M oore, President of M ooreM c Cormack Lines, signed in behalf of his line.
The following regarding the sale is from the N ew Y ork
“ Tim es” of Oct. 25:
Delivery of the ships will begin immediately, with two each month
scheduled to be turned over until all have been delivered. MooreMcCormack, meanwhile, are expanding their service to South America
and the Scandinavian States by 14 new cargo and passenger vessels now
being
l
“ W are very happy that this contract has been signed with the Bra­
zilian Government,” said M r. Moore after affixing his signature, “ because
we consider it another very important step in the development of the
‘good neighbor’ policy which President Roosevelt has carried to new heights
during his Administration.
“ Both our merchant marines, that of the United States and that of
Brazil, should benefit by the sale.
“At the same time it will clear the way for further expansion of the
Moore-McCormack Line’s fleet.
W e have acquired new tonnage for
operation to South America and thus we will be able to render to shippers
of the United States of America and of South America, and to travelers
between the two Continents, an improved service in every respect.”

The Maritime Commission at Washington approved on
Oct. 30 the transfer of the 14 vessels from United States to
Brazilian registry. Advices from Washington on that date to
the New Y ork “ Journal of Commerce,” in noting this
also said:
The Commission’s action was conditioned on agreement with MooreMcCormack Lines, Inc., under which the shipping company will purchase
four of the new C-3 cargo ships now under construction for account of the
Commission. These vessels will be operated in the New York-South Amer­
ican trade.
S h i p s S o ld f o r $3,500,000
The vessels covered in the transfer of registry were sold to the Brazilian
Government for $3,500,000, which sum win be placed in a joint account
with the Commission by Moore-McCormack for application to purchase
of the new tonnage agreed upon, it was stated.
Under terms of the sale Moore-McCormack has arranged a pooling
agreement or arrangement with the Brazilian Government. Terms of this
agreement were not revealed by the Commission. The Government agency
did emphasize, however, that its approval of transfer of registery does not
involve “either specifically or inferentially approval of any pooling agree­
ment or arrangements between the Brazilian Government and MooreMcCormack Lines, Inc.”

Special “ Grand Circle” Railroad Fares to Be Continued
Another Year
So popular were the sensationally low “ grand-circle” rail­
road fares which were in effect during the two W orld’s
Fairs that they will be continued to Oct. 31, 1940, J. J.
Pelley, President of the Association of American Railroads,
announced on Oct. 31.
The success of this unique travel plan surpassed all ex­
pectations, M r . Pelley said, and this prompted the rail­
roads to extend the greatly reduced fares for another year.
For only $90, an individual can travel by coach from any
point in the United States to either New York City or San
Francisco, then across the continent to the other city and
back to the starting point, without retracing routes. Stop­
over privileges, giving tourists full opportunity to visit
points of interest such as the National Parks and the N ation ’s
famous resorts, are allowed in both directions. First-class
tickets for a grand-circle tour cost but $135 plus special
Pullman rates of $45 for a lower birth and $34.50 for an
upper.
Experience since the low fares went into effect has shown
that circle tours of more than 10,000 miles can be made




USHA to Seek Private Capital for Housing Projects—
Administrator Straus Announces Plan Whereby
Local Units Will Offer Short-Term Notes— First
Offering of $50,000,000 Due in Two Weeks

For example, he said, a local housing authority planning a $1,000,000
structure would obtain from the USHA a commitment of Federal funds to
cover 90% of the cost. It would then offer to the lowest interest bidder
on the money market $1,000,000 of non-callable securities to mature within
six months. Just before the date of maturity the USHA would deposit
with the nearest Federal Reserve bank $1,000,000 to redeem the securities.
M r. Straus estimated that local housing authorities would save $14,400,000 during the year that private capital financed the $770,000,000 of
contemplated construction. This, he added, would result from anticipated
sales of the securities for 2 % less interest than the usual 3 to 3 M %
charged by the USHA when projects were financed wholly from government
loans, repayable within 20 years.
The notes, he said, would be exempt from Federal taxes, and, in most
instances, from State taxes.
M r. Straus asserted that the Syracuse, N . Y ., Housing Authority, in a
test of the new program, recently sold $1,000,000 of its securities maturing
in nine months and callable within three months at an interest rate of .45
of 1 % .
The first issue of new temporary loan notes, he said, would be offered
to the public shortly. They will total more than $50,000,000“ There is every reason to believe,” M r. Straus continued, “that within a
year or two most of the hundreds of millions of dollars invested in con­
structing public-housing projects will flow through the normal channels of
the private investment market, relieving the United States Treasury of
this operation and limiting Federal participation to the subsidies necessary
for low rents.”
Interest savings, he said, would be passed on to tenants in the form of
lower monthly rental charges.

M r . Straus announced on N o v . 1 that the first $50,000,000
offering of U S H A short-term notes will be made within two
weeks.
He added that the U S H A will make additional
$50,000,000 offerings at six-week intervals as long as the
authority need additional funds to finance projects.
The following regarding his further remarks is from W ash­
ington advices of N o v . 1 to the N ew York “ Journal of
Commerce” :
These note oferings wiU be made in select groups of cities throughout the
country with a different group chosen for each additional offering. The
offerings will be made only for projects on which the contract has been
approved and cash advances on the Government loan have become avail­
able. The new program of using regular loan channels to supply this money
instead of borrowing from the Government is expected to save local au­
thorities substantial sums in interest charges.
M r. Straus said he was confident that this temporary small-scale financing
“ will proceed inevitably to permanent large-scale financing of public
housing projects with private funds.” He said that the authority did not
intend completely to stop the practice of making Government loans for
housing projects, but added that he would like to see the practice now of
the Government lending 90% of the cost and 10% being furnished by
private agencies reversed.

President Roosevelt Praises Work of USHA on Occasion
of Second Anniversary
In a message of congratulation on the second anniversary
of the United States Housing Authority, President Roosevelt
declared on N o v . 1, that “ an insistent idea that the illhoused poor must be provided with decent shelter and that
unsafe dwellings must be eliminated has merged into the
reality of finished projects.”
The President’s letter was
read by Administrator Straus in a nation-wide radio broad­
cast commemorating the anniversary. Addresses were also
made by Senator Robert F . Wagner of New York and Rep­
resentative Henry B . Steagall of Alabam a, who were the
sponsors of the Housing A ct. The President’s message follows:
The second anniversay of the USHA is an occasion for real celebration.
During these two years we have seen an idea develop into a reality. An
insistent idea that the ill-housed poor must be provided with decent shelter
and that unsafe dwellings must be eliminated has merged into the reality
of finished projects, of decent low rent homes being constructed, of miserable,
substandard hovels being demolished.
It is this satisfaction in knowing that a long-felt need is being met which,
to my mind, highlights your second anniversary. This is the democratic
way, this is the American way of doing things.
It gives me great pleasure to extend to you and through you to the local
housing authorities and their staffs, and local, city, country and State
officials throughout the country, my best wishes and an assurance of my
appreciation of the work being done.

Corporation Income Tax Returns in 1937 Fewer Than
in 1936— Net Income Increased 1.7%
Corporation income tax returns for 1937 declined 5 .5 %
from 1936, but the amount of reported net income increased
1 .7 % , it was revealed in a Treasury announcement Oct. 13.
The normal corporation income tax advanced by $32,146,228
or 3 .1 % , while surtax on undistributed profits rose $3 0,925,412 or 2 1 .3 % and the excess profits tax increased $21,722,784 or 1 0 0 .5 % , making a total increased tax yield of
$84,794,524, or 7 .1 % . A Treasury Department statement,
in analyzing the survey, said in part:

2906

ONE HUNDRED

—

The Commercial & Financial Chronicle —

Corporations filed a total o f 529,097 returns for 1936, o f which 192,028
show net income, 285,810 show no net income and 51,259 show no income
data (inactive corporations). The aggregate gross income reported by all
active corporations is $141,967,076,852. The aggregate net income of
corporations in the “ net income" group is $9,634,836,716 and the deficit
o f corporations with no net income is $2,280,845,542. Returns with net
income show normal tax o f $1,056,939,166, surtax on undistributed profits
o f $175,897,696, excess-profits tax o f $43,335,435 and a total tax of $1,276,172,297.
A comparison o f the data for 1937 with the data for 1936 shows that the
number o f returns with net income decreased 11,133 or 5.5% and the net
income increased $156,595,241 or 1.7% . The normal tax increased $32,146,228, or 3.1% ; surtax on undistributed profits increased $30,925,412,
or 21.3%; excess-profits tax increased $21,722,784, or 100.5%; and total
tax increased $84,794,524, or 7.1% . The number o f returns with no net
income increased 10,114, or 3.7% , and the deficit increased $128,821,827,
or 6.0% .

A similar Treasury compilation was referred^ to in our
issue of June 24 , 1939, page 3763.

SEC Publishes Statistics on Underwriting for Quarter
Ended Sept. 30— Participations Total $4b7,333,000 for 40 Issues— 63 New York Firms Had 67.3%
of Aggregate-—18 New York Firms Managed 92.8%
of Total
Continuing the revised series of statistics of underwriting
participations prepared by the Research and Statistics Sec­
tion of the Trading and Exchange Division, the Securities
and Exchange Commission on Nov. 2 made public under­
writing statistics covering the three months ended Sept. 30,
1939. The Commission’s announcement stated:
Underwriting participations for the three months ended Sept. 30, 1939,
totaled $467,333,000 for 40 issues, consisting of $403,350,000 for 21 bond
issues, $55,726,000 for 13 preferred stock issues, and $8,257,000 for six
common stock issues. During this quarterly period 63 New York City
firms had aggregate underwriting participations of $314,337,000, or 67.3%
of the total. Although 155 firms outside of New York City had underwrit­
ing participations during the same period, the aggregate participations of
such firms were only $152,996,000, or 32.7% of the total. The concen­
tration of underwriting business among New York City firms was greatest
with respect to common stock issues with 70.0% of total common stock
participations accounted for by such firms. The proportion of total par­
ticipations indicated for New York City firms was 69.0% in the case of
bond issues and 54.6% in the case of preferred stock issues.
The management of underwritten issues rested largely with New York
City firms, with 18 such firms managing an aggregate of $433,688,000,
or 92.8% of the total. The proportionate amount managed by New York
City firms was 95.3% for common stock, 94.7% for bonds, and 78.4%
for preferred stock.
Combined underwriting participations of the 39 firms, which acted as
managers, were $224,721,000, or only slightly smaller than combined under­
writing participations of $242,612,000 shown for the 179 non-managing
firms. Thus, a relatively few originating houses secured almost one-half of
total underwriting participations. Since an originating house ordinarily
takes a fairly large participation in any issue which it manages, it is of
interest to determine the proportion of participations in issues for which
such firms acted as managers to participations in issues managed by other
firms. For New York City firms, participations in their managed issues
are about as large as participations in other issues. For firms outside of
New York City, on the other hand, participations in their managed issues
were only about one-half as large as participations in the other issues.
The five firms having the greatest amount of underwriting participa­
tions during the third quarter of 1939 were as follows: The First Boston
Corp. with $31,256,000; Smith, Barney & Co. with $22,033,000 ; Harriman Ripley & Co., Inc., with $21,292,000 ; Morgan Stanley & Co., with

___
—

' Steamboats

YEARS

OLD

N ov. 4, 1939

$19,960,000, and Dillon, Read & Co. with $19,210,000. These five firms,
all of which were located in New York City, accounted for 24.3% of
total participations.
The comparative ranking of individual firms with respect to the total
amount of issues managed was as follows: Morgan Stanley & Co., Inc.,
with $107,250,000 ; The First Boston Corp. with $86,286,000 ; Dillon,
Read & Co. with $74,125,000; Bonbright & Co., Inc., with $46,518,000,
and Glore, Forgan & Co. with $33,844,000.
These five firms, all of
which were located in New York City, accounted for 74.6% of the total
amount managed.

Inventory Situation Has Shown No Considerable
Changes Since Outbreak of European War, Accord­
ing to Survey by Independence Fund of North
America
N o excessive piling up of inventories has occurred since the
outbreak of the European W a r, and even a quick peace should
hardly require more than temporary readjustment, accord­
ing to a survey completed Oct. 31 by the Independence Fund
of North America for their Investment Timing Service.
The survey, which was in the form of a questionnaire to a
large number of important industrial companies in many
fields, shows conclusively, it is stated, that forward buying
has not been of the reckless nature which characterized the
inventory rise which began in 1936 and which was largely
responsible for the sharp slump of 1937. A n announcement
bearing on the survey also said:
The survey sought both facts and business opinion. In the realm o f facts
it was shown that inventories at the outbreak o f the war, including raw
materials, semi-finished and finished goods, and both producing and dis­
tributing concerns, were high in only 11% o f the reporting companies.
Another 11% reported low inventories, while 78% were moderate. Results
since that time have been as follows: inventories have increased in 57% o f
the companies and forward buying has been done in 69% , while increased
demand has materialized in 92%.
Opinion is virtually balanced as to the effect o f forward deliveries on
inventories. Rising inventories are expected by 48% o f the firms, while
52% see no increase likely. On the other hand, 82% of the companies
expect consumption to rise so as to balance inventories.
The report on the survey concludes that production currently is running
somewhat ahead o f consumption, but not excessively so. As a result, any
decline in activity after the first of the year should be relatively moderate,
leaving production still at high levels and a strong base o f renewed recovery.
The survey also shows that a high degree of business intelligence is being
exercised by the more important industrial companies. Producers on the
one hand have been endeavoring to keep customers from ordering too
much and too far ahead while middlemen, although increasing inventories,
have kept them relatively low in relation to the demand for goods.

SEC Sends Sales Questionnaire to 68 Life Insurance
Companies— Also Submits Questionnaire to Officials
of All States on Adequacy of Regulation
The Securities and Exchange Commission announced
Oct. 22 through the Temporary National Economic Com ­
mittee that it has sent a sales questionnaire to 68 legal re­
serve life insurance companies, including a group of United
States companies which reported more than $100,000,000
of ordinary insurance in force at the end of 1938. Com ­
panies receiving the questionnaire have more than 9 0 % of
the total insurance in force of legal reserve life insurance
companies operating in the United States. The scope of
the questionnaire has been restricted to enable companies to
complete answers prior to the year-end work necessitated
by the preparation of convention form annual statements.

in Each State

Statement of the number of steamboats, and of the tonnage of the same, in each State, so far as returns
have been received, in December, 1838; and statement of the amount of tonnage of steam vessels in each
State, on the 30th of September, 1837, according to the annual statement of the commerce and navigation
of the United States, for the year ending September 30, 1837, and of the number built in 1837.
R e tu r n s to
D ecem b er, 1838
N o . of
Vessels
M ain e _ _ ___
New H a m p sh ire ____
V e r m o n t _____ ______
M a ssa c h u se tts
R h o d e I s la n d _______
C o n n e c t ic u t _______
N ew Y o r k _______ __
N ew J e r s e y ____ __
P e n n sy lv a n ia
____
D e la w a re ________ _
M a ry la n d __
__ _
L’ ist. o f C o lu m b i a ..
N o r th C a r o lin a ____
S o u t h C a r o lin a ____
G e o r g i a _______
F lo r id a ____ ________
A la b a m a _____ ____ •
* M ississip p i_______
* A rkan sas. _
____
L o u is ia n a ___
___




8
1
4
12
2
19
140
21
134
3
19
5
16
ii
22
29
17
18

R e tu r n ,
S e p t. 30,
1837

Tonnage
1,609
215
903
1,443
698
4,103
29,708
3,757
18,243
494
6,800
801

171
965
2,641
24,431
444
19.331
373
7,135
1,477

2,014
4,794
4,273
1,974
2,703

521
4,715
4,521
1,194
4.396

N u m b er o f
S tea m
V e ssels
B u ilt in
Tonnage
1837

Tonnage

R e tu rn
S e p t 30,
1837
Tonnage
5,193

1
5
2
. . .

—

—

. . .

—

—

—

54,421

41

8 ,3 5 6

9

2

1,714

7,967
15^396
2^611
9C0

3,668
12^375
2 ’ l9 3

N avy D e p a r t m e n t ..
W a r D e p a r t m e n t ___
E n g in e e r D e p a rtm ’ t

42
79
13
1
4
9

T o ta l a s ce rta in ed

700

126,673

153,660

48
4
1

N um ber of
S tea m
V e sse ls
B u ilt in
1837

______

1
1
1
16

- -

4,986

N o . of
Vessels

x I llin o is .

- -

30

R e tu r n s to
D ecem ber, 1838

__
__

__
__

42
1

_
___
134

In 58 o f t h e above b o a ts , t h e to n n a g e n o t b e in g re tu r n e d , is e s t im a ted a t 10,800 t o n s m ore, m a k in g a n a g g reg a te of 137,473 t o n s
in th e a s c e rta in e d b o a ts .
* N o re tu r n s , x N o r e tu r n s from th e s e S t a t e s , exc ep t in p a rt
y N o r e tu r n s fro m W is c o n s in ,
w ith M issou ri an d K e n t u c k y ,
e x c ep t in p a rt w ith M ic h ig a n .

HUNT’S MERCHANTS’ MAGAZINE— February, 1841

Volume 149

ONE HUNDRED The
—

Commercial & Financial Chronicle —

Replies have been requested by D ec. 15, 1939.
release goes on to say:

The SEC

The questionnaire seeks information with respect to both the home office
and field policies o f companies in meeting problems in the sale o f insurance.
Particular emphasis is laid upon training o f agents, the relative advantages
and disadvantages of the branch manager or general agent system, and the
compensation and career possibilities o f agents.
Inquiry is made as to the manner in which the home office acquaints
itself with the practices and problems o f their agency force and questions
are asked concerning the functions o f the agency committee and the prin­
cipal home office executives handling agency problems.
Companies have also been requested to give information on numbers
and types o f policies sold, amounts o f business written at standard and
substandard rates, asset shares, preferred risk policies, sales contests, re­
troactive benefits extended to policy holders, training o f general agents and
branch managers, financing and guaranteed earnings o f general agents and
branch managers, home office cost per policy of issuing and maintaining
an ordinary insurance policy in force during the first policy year and sub­
sequent years, cost o f issuing not-taken policies, persistency ratings of in­
surance made at the time o f issue and similar matters.

The SEC on Oct. 24 sent out questionnaires to the insur­
ance officials of every State asking them for their opinions
on the adequacy of insurance regulation. Gerhard A .
Gesell, special SEC Counsel in charge of the insurance pre­
sentation before the T N E C , addressed the following letter
to the State insurance officials in sending them the ques­
tionnaire:
In connection with the study o f insurance which this Commission is con­
ducting for the TN EC, I am writing to invite your cooperation in filling
out the enclosed questionnaire which requests information relative to the
scope and character o f legal reserve life insurance regulation.
Copies o f this questionnaire are being sent to the principal insurance
official o f every State.
The Commission recognizes that you are under no legal obligation to
reply to this questionnaire and realizes that it can obtain the information
desired only with your voluntary assistance. Without a proper under­
standing o f insurance regulation, however, it is impossible for the Commis­
sion adequately to evaluate the information which it has assembled with
respect to the operations o f the life insurance business. The Commission’s
sincere desire to be fully informed in this respect has prompted it to for­
ward the questionnaire to you and the other officials because o f your
knowledge o f this subject.
You will note that the last question suggests several topics upon whicq
you may wish to state your views. The Commission will be glad to re­
ceive any additional comment or suggestions you desire to offer regardless
o f whether they relate to topics specifically covered by the questionnaire.
Your courtesy and cooperation in filling out this questionnaire and re­
turning one copy by N ov. 20 will be greatly appreciated.
R e c o m m e n d a t io n s fo r R e v is io n in F e d e r a l T a x a t i o n
U rg e d b y C o m m itte e o f N e w Y o r k S ta te C h a m b e r
o f C o m m e rc e — R e p e a l o f C a p ita l G a in s T a x a n d
R e d u c tio n o f S u rta x e s A m o n g S u g g e ste d C h a n g e s

Six specific recommendations for reform in Federal "ta x ­
ation which whould be helpful in promoting business ex­
pansion and eventually would bring a substantial increase
in Government revenues were submitted to the Chamber of
Commerce of the State of New York by its Committee on
Taxation at the monthly meeting on N o v . 2 .
Jesse S.
Phillips, Chairman of the Committee, asked the membership
of the Chamber to approve the proposals, and following their
approval by that body on N ov . 2 they were sent to the sub­
committee of the House W ays and Means Committee which
is to consider a new tax measure at the next session of
Congress.
The recommendations which the Chamber endorsed em­
body a broadening of the income tax base, the repeal of the
capital gains tax, a reduction of surtaxes, the filing of con­
solidated returns by corporations, the restricting of the im­
position of inheritance taxes to State governments and the
creation of a non-partisan commission to simplify the whole
system of taxation. Members of the Chamber Committee
who signed the report in which the recommendtions were
presented were M r. Phillips, the Chairman, and Frank C .
Belser, Thatcher M . Brown, George H . Coppers, Robert L.
Hoguet and Otto E . Reimer.
The recommendations follow:
(1) The Federal income tax exemptions should be lowered. Although
60 to 70 millions o f our citizens are o f voting age, approximately only three
millions pay a Federal income tax. Not only is it equitable that a much
larger proportion o f our citizens pay an income tax, but is also desirable to
create, by lowering the exemptions, a wide-spread interest in government
and Federal expenditures.
^ (2) Capital gains should not be taxed under an income tax, because it
makes capital immobile by retarding individuals from taking reasonable
business risks which they would otherwise undertake. This change in the
tax law would be an encouragement to take profits, shift investments and
keep funds active, thus promoting business and industrial expansion.
(3) The surtax rates should be reduced in order that capital may flow
more freely into private business. The present rates are an important factor
in withdrawing capital from business undertakings, and hampering the
development and activity o f industry.
(4) Corporations should file consolidated returns. The taxation o f inter­
corporate dividends is unsound because it constitutes a multiple tax on the
same income and is against the best interest o f business as well as the public
treasury. Subsidiaries and affiliated corporations are necessary as a matter
o f business convenience, or because o f the compulsion o f State laws; the
policy o f punitive taxation should be discounitnued.
(5) The Chamber has opposed on several occasions a Federal inheritance
tax since February, 1917, believing such taxation to be “ a serious menace
to the fiscal plans o f our States,” and that is should be a source o f revenue
only for State governments. The present high rate o f taxation by both
Federal and State governments o f inheritances has the effect o f with­
drawing large amounts o f capital from business ventures, because the
owners o f such capital must keep a large proportion o f it in liquid form to
meet inheritance taxes in event o f their death. The drastic levies through
such excessive taxation in this field is another deterrent to business activity.




YE A R S OLD

2907

(6)
A non-partisian board or commission should be established, composed
o f experts in taxation, accounting and economics, to study ways and means
for the elimination o f duplicating, overlapping and pyramiding taxes, and
the coordination o f the multiplicity o f taxing agencies. Federal, State and
local.
B u s in e s s W a r n e d b y “ B a n k i n g ” A g a i n s t O v e r -O p tim is m
o n E u r o p e a n W a r — S ix E f f e c t s o f W a r O u t l i n e d

A note of caution against over-optimism in a long-range
view of the effects of the war in Europe on American busi­
ness is sounded in the monthly survey on the condition of
business in the November issue of “ Banking” , official publi­
cation of the American Bankers Association, of which
William R . Kuhns is Editor. The survey states:
The war seems to be making things easier for business, although the
feeling up to this time is not entirely optimistic. There is a boom spirit
tempered by the belief that war profits will be a boomerang. In some re­
spects the most satisfactory thing about the outlook is the calmness with
which most manufacturers and traders are making their plans. Prices
seem to have found a long upward path and this is what some of our previous
booms were made of.
The war has cast an artificial glow over the whole picture and placed
some tricks on our thinking, and it will take some time to discover what
they mean. Recovery, o f course, had developed quite a bit o f momentum
before the first shot was fired and every index was pointing to a continua­
tion of the movement. Meanwhile, no one really believes that prosperity
can be based on the destruction of life and wealth.

Six definite effects of the war on American business are
outlined in the survey. Concerning these, an announcement
states:
First, it states, the war appears to have interrupted a seven-year period
o f experimentation in government, although much o f this is reappearing
in the form of emergency economic controls for national defense purposes.
Second, the war has diverted attention from the rising Federal debt and
yearly deficits, with the result that the fiscal problem has been overshadowed
in the press and the public mind by war news from abroad, thesurvery con­
tinues.
Third, the “ partnership arrangement” between Russia and Germany has
demonstrated the similarity of these two systems of state socialism, bring­
ing out at the same time the close relationship between individual freedom
and American capitalism, and fourth, the war has increased the hopes of
business men for increased trade with South America in spite o f the fact
that Latin American nations are handicapped by lack of adequate funds
with which to expand their purchases, the survey points out.
Fifth, the war has stirred into action the inflationary impulses which
have accumulated in the easy-come-easy-go era of national finance. This
is reflected in the attempts everywhere to give prices a little lift here and a
boost there.
And sixth, the war has definitely hastened reemployment, the survey
concludes.
T r u s t I n s t it u t io n s S ta b iliz e B u s in e s s , A c c o r d in g to
P r e s id e n t H a n e s o f A . B . A . B e fo r e M id -C o n t in e n t
T r u s t C o n fe r e n c e — S u p p o r t o f R a il L e g is la t io n
U r g e d b y P r e s id e n t N o r r is o f S o u t h e r n R y . S y s t e m
— R . E . C la r k A s k s O b s e r v a n c e o f T r u s t I n d e n t u r e
A c t— O th er S peak ers

The Nation’s trust institutions and banks with trust de­
partments make a definite contribution to the stabilization
and advancement of American business, Robert M. Hanes,
President of the American Bankers Association and Presi­
dent of the Wachovia Bank & Trust Co., Winston-Salem,
N. C., told the tenth annual Mid-Continent Trust Confer­
ence of the Association’s Trust Division at Chicago on
Oct. 2G. “ There exists in some quarters a popular concep­
tion that money and property held in trust is permanently
withdrawn from the channels of business and is thereby
frozen,” said Mr. Hanes in the course of his remarks, and
he went on to say, in p a rt:
The fallacy of that belief is quite obvious. Trust institutions are not
cold storage plants, and property held in trust is neither frozen nor
permanently held. It is invested in a great variety of enterprises and
undertakings that in turn give work and supply payrolls to millions of
our people. The person who holds money may,- if he chooses, keep it
idle in the form of cash. If and when that money is placed in trust
with a trust institution, it must be invested within a reasonable time,
and thus is restored to the channels of business.
Furthermore, property is held in trust on an average of only a few
years; it is constantly flowing out as estates are settled, as beneficiaries
reach specified ages, or as other contingencies materialize. If the sources
of supply of new funds, coming into trusteeship should suddenly be cut
off, it would be only a few years until the trust business would vanish.
The work of the corporate fiduciary acts as a stabilizer of business by
reducing the probability of economic waste. Frequently when a lagging
business becomes part of an estate or trust, and there is no chance for an
advantageous sale, the trust institution revitalizes the management, elimi­
nates unprofitable features, and puts the business on its feet again. The
corporate trustee protects property from dissipation and deterioration. It
conserves wealth, yet makes it productive, and hence increases its useful­
ness over a longer period of years.
The trust man, by assuming the responsibility for investment manage­
ment, by tackling the intricate problems of taxation, and by standing
ready at all times to step into the shoes of the testator or trustor, relieves
the minds of business men and frees their energies for the important tasks
of business enterprise and production.

An appeal to banking and business to support in prin­
ciple legislation now pending before Congress which would
regulate all modes of transportation substantially in the
same way was sounded at the conference by Ernest E. Nor­
ris, President of the Southern Railway System.
“ Such
legislation,” he said, “ will be the first definite proof of the
enduring interest which the American public has in the
principle of continuing to give the United States cheap and
efficient transportation under private ownership and con­
trol.” He explained that the legislation has resulted from

ONE HUNDRED
—The Commercial & Financial Chronicle— Y E A R S OLD Nov. 4, 1939

2908

recommendations of a special committee of railroad presi­
dents and rail labor executives formed by President Roose­
velt last year. He further said:
This committee labored long and earnestly and eventually joined unani­
mously in a report which was submitted to the President and by him to
Congress. Legislation was introduced into the House and Senate giving
effect to some of the recommendations of this joint committee, and while
it does not cover all of the recommendations, it is a belated step in the
direction of effecting a eomphehensive system of regulating all modes of
transportation substantially in the same way.

He asserted that railroads own, maintain, and pay taxes
on the roadways they use, whereas motor truck and inland
waterways carriers operate over highways and river chan­
nels constructed with Government money and maintained
at the expense of taxpayers. Continuing, Mr. Norris said:
The present unsatisfactory state of railroad earnings will not permanently
be corrected until there is equality in the transportation field— until all
modes of transportation are treated relatively alike. When every mode
of transportation meets all its own costs, and complies with public regula­
tion of the same sort and degree, and when every mode of transportation
carries its own proper part of the general burdens of government, then
each will necessarily do the work it is best fitted to do. Business and
the people of the United States will enjoy the best in all models of trans­
portation at the lowest real cost.

He based his appeal to banking and business on grounds
that they are fundamentally interested in the adoption of
the sound policies of transportation he termed essential to
sound business conditions throughout the country.
“The
soundness of Government, State or municipal securities,”
he pointed out, “ depends upon the earning power of busi­
ness.
Somebody must take the earnings that pay the
taxes.”

How to Commence Business
W e ll b o y s , w e d o u b t n o t t h a t y o u w o u ld
lik e t o rise h ig h in
good

fa rm ers,

good

m o tto

th e w o r ld , a n d

m e rc h a n ts,

fo r

& c.

y o u — B e g in

becom e

H ere

at

th e

is

a

lo w e s t

r o u n d o n th e la d d e r a n d k e e p c lim b in g ; a n d
h ere

is

a

sto ry

w h ic h

w h a t w e w a n t to sa y .

w ill

illu s tr a te

ju s t

O n e o f th e w e a lt h ie s t

m e r c h a n ts o f N ew Y o r k C ity te lls u s h o w h e
c o m m e n ce d b u s in e s s .

H e say s:

I e n te r e d a s to r e a n d a s k e d if a c le r k w a s
not

w a n te d .

th e

an sw er,

w ith

“ N o ,”
a ll

m e; w hen

in

b e in g

a

rough

to o

I r e fle c te d

b u sy

to n e ,
to

w as

b o th e r

t h a t i f t h e y d id

n o t w a n t a c le r k t h e y m ig h t w a n t a la b o r e r ;
b u t I w as d re ssed to o fin e fo r t h a t .
to m y lo d g in g s , p u t o n a r o u g h

I w ent

garb , an d

th e n e x t d a y w e n t in t o th e sam e s to re a n d
d e m a n d e d if t h e y d i d n o t w a n t a p o r t e r , a n d
a g a in , “ N o , s ir ,” w a s t h e r e s p o n s e ; w h e n
e x c la im e d , in

d e s p a ir , a lm o s t, “ A

S i r , I w i ll w o r k a t a n y w a g e s .

I

la b o r e r ?

W a g e s is n o t

m y o b j e c t ; I m u s t h a v e e m p lo y , a n d I w a n t to
b e u s e fu l in b u s i n e s s .”

T h e s e la s t re m a rk s

a t t r a c t e d t h e ir a t t e n t i o n ; a n d in t h e e n d I
w a s h ir e d a s a la b o r e r in t h e b a s e m e n t a n d
s u b c e lla r a t a v e r y lo w p a y , s c a r c e ly e n o u g h
to

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th in g s

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te n

tim e s o v e r , a n d t h e y s o o n fo u n d it o u t . I d id
n o t le t a n y b o d y a b o u t c o m m it p e t t y la r c e n ­
ie s w i t h o u t r e m o n s t r a n c e a n d t h r e a t s o f ex­
p osu re, an d

real exp osu re

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“ a n d I w ill see e v e r y t h in g r i g h t .”
o ff a t d ay b re a k

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b o a t s , o r c a r r ie d t h e m

m y s e lf.

hom e,

I lo a d e d
m o r n in g

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I

s o o n b e c a m e in d is p e n s a b le t o m y e m p lo y e r s ,
a n d I rose a n d rose u n til I b eca m e h e a d of
th e h o u s e , w ith m o n e y e n o u g h , a s y o u se e ,
t o g iv e m e a n y lu x u r y o r a n y p o s it io n a m e r­
c a n tile

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c h ild r e n in t h i s g r e a t c i t y .
H U N T ’S M E R C H A N T S ’ M A G A Z IN E ,




D e c e m b e r, 1854

Carefully made real estate mortgage loans are among the
best investments for trust funds because they do not pre­
sent tlie market risk of long-term bonds and have higher
rates of return, Clarence E. Kern, Vice-President of the
Central Wisconsin Trust Co., Madison, W is., said on Oct. 27.
He urged that in making real estate mortgage loans, bank­
ers should observe certain practices which will enable them
to avoid difficulty in connection with them.
Legal instruments which create trusts must he drafted in
the future with greater flexibility so that trustees will be
legally empowered to adjust the trust funds to meet violent
changes in the Nation’s business, economic, and financial
structure, A. F. Young, Vice-President and Trust Officer of
the National City Bank of Cleveland, told the Trust Con­
ference on Oct. 26. Mr. Young said that the business de­
pressions throughout the country’s history, and particularly
that of the past decade, have brought out clearly that the
creator of a trust must not draw up a trust instrument
which leaves the trustee bound to inflexible provisions
which cannot be altered to meet new economic conditions.
Oscar L. Buhr, Vice-President of the Detroit Trust Co.,
Detroit, Mich., recommended to the conference, Oct. 27,
high-grade municipal bonds, well diversified in their ma­
turities and the geographic spread of the local governments
which issue them, as one of the best types of investments
for trust funds. Mr. Buhr outlined seven principal reasons
for his approval of municipal securities as trust invest­
ments, all of which he based upon the investment experi­
ences of his bank over a number of years. Mr. Buhr stated
that municipal securities offer safety o f principal together
with a reasonable income, and he cited as another “im­
portant reason for buying municipal bonds is exemption
from Federal and local taxes. W ith the present-day trend
towards high income taxes and personal property taxes, it
is important that exemption be emphasized in the large
accounts.” He pointed out, however, that a serious question
has arisen with regard to tax-exempt bonds because the
Government has within the past year taken steps to elimi­
nate the tax-exempt provision.
The Nation’s trust institutions and banks with trust de­
partments were urged to observe the spirit as well as the
letter of the Trust Indenture Act of 1939, which was passed
by the last session of Congress and becomes effective Feb. 3
of next year, in an address delivered by Roland E. Clark,
President of the Trust Division and Vice-President of the
National Bank of Commerce, Portland, Me. At the same
time, Mr. Clark appealed to business, banking and industry
to keep domestic, political and economic problems well in
mind in spite of distracting war news from Europe. W ith
reference to the Trust Indenture Act, Mr. Clark stated:
Business never welcomes governmental regulation, and banking is no
exception. The American Bankers Association did not favor passage of
this Act. The Association believed that the objectives desired by the
Commission could be well attained through the adoption of a code or a
statement of principles similar to the Statement of Principles of Trust
Institutions relating principally to personal trusts and adopted by the
Trust Devision of the American Bankers Association in 1936.
In view of the insistence of the Securities and Exchange Commission
on the enactment of the legislation, the Association, through its executive
officers, advised the Commission that it would not oppose the Barkley
bill, provided that, in the opinion of a special committee to be appointed
by the Trust Division of the Association, such legislation was workable.
It is the opinion of the Division’ s Committee on Mortgage Trusteeships
that the Act as passed is workable.
It is the duty of the trust institutions of the country to endeavor to
administer trust indentures which are subject to the Act by observing the
spirit as well as the letter of that Act.
'The Act is entirely new legislation of the most technical nature, and
it will hardly be possible to administer trusteeships subject to it without
encountering some difficulties and rough edges. On the other hand, the
SEC has displayed a sincere desire to carry out its concept of the Act
with the least possible handicap to legitimate trust business. The same
spirit having been evidenced by the congressional committees which con­
sidered the bill, the Trust Division confidently expects a sympathetic
hearing and a cooperative attitude by both the Commission and Congress,
if experience should indicate the need of amendments.

W illiam A. Reed, Vice-President of tlie Central Hanover
Bank & Trust Co. of New York, proposed a new basis for
fixing fees paid to trust institutions by which annual
charges would be assessed against both the principal and
income of the trust, dividing the charges more equitably
between the beneficiaries who receive the income and those
who eventually inherit the principal. Mr. Reed based his
proposal for the revised schedule of fees paid to trustees
on two major points. First, he said, it would provide fairer
treatment for trustees handling estates which extend over
periods of many years, and second, it would correct the
present situation, under which trust beneficiaries who re­
ceive the income from the estate, or the life tenants, pay
the greater portion of the fees although they receive only
an income and not the principal of the estate.
Gilbert T. Stephenson, Director of the Trust Research
Department of the Graduate School of Banking, in an
address at the conference on Oct. 27 called for a definite
statement of trust policies and practices by trust companies
and banks with trust departments. He said that although
trust institutions in this country lead those of all other
common law nations in codifying the principles of trust
management through a statement of principles, it is still
necessary for them to work out definite, standardized poli­
cies by which those principles are administered.

Volume 149

ONE HUNDRED
—The Commercial & Financial Chronicle—Y E A R S OLD

W a lt e r S . S c h m id t B e fo r e N a t io n a l A s s o c ia t io n o f
R ea l E sta te B o a rd s P re sen ts S u g g e s tio n s o f C o m ­
m it t e e W h i c h S u r v e y e d P r o b le m s o f C o m m e r c ia l
D is tr ic ts — C o n v e n tio n A d d r e sse d b y H . D . P e ttib o n e a n d O th ers

A beginning program for saving the present huge aggre­
gation of real estate values represented in the business
districts in cities over the United States, and for solving
present pressing problems so as to enable these districts
to reach their maximum usefulness and efficiency, was
sketched at the annual convention of the National Associa­
tion of Real Estate Boards at Los Angeles on Oct. 25 by
W alter S. Schmidt, Cincinnati, Past President of the Asso­
ciation. Reporting to the convention first conclusions of a
special committee appointed by President E. L. Ostendorf,
Cleveland, to survey major present problems of commercial
districts and suggest action which should be taken to adjust
city structures to changing habits of modern living, Mr.
Schmidt, Chairman of a citizens’ committee engaged in a
study of the replanning of Cincinnati and Chairman of the
Board of Trustees of the National Real Estate Foundation
(projected coordinating center for real estate research), out­
lined the conditions now being faced as the result of the
decentralization movement of recent years in most Amer­
ican cities. “ W e are passing through a period of violent
change,” he said, “and unless we would see the most wan­
ton waste of wealth this country has ever,known through
destruction of land and building values of business property
it behooves us to understand what is happening to our com­
mercial districts, especially in the older cities, then to
apply corrective and protective measures to what now exists
and finally to adopt constructive policies for the future.”
Initial suggestions made by the committee, which is open­
ing a long-term study of the economics of business-area
planning in all types of commercial districts, he summarized
as follow s:
1. Every city should make a complete real estate inventory and keep
it continually current.
2. Traffic conditions 6hould be studied by experts as part of the plan­
ning work and satisfactory provisions made for arteries, public trans­
portation, parking facilities and by-passes around congected areas.
3. Adequate appropriations for planning commissions should be made
and comprehensive plans made.
4. Determine the relationship between pedestrian traffic and buying;
the conclusions arrived at by determining the corelationship will have
almost the force of economic laws.
5. Combat legislation improperly detrimental to commercial districts
or to the business in them; such legislation contributes to raising the
cost of distribution, already a great weakness in our economic system, as
well as damaging commercial districts.
6. Advocate measures for improving attractiveness, whether by way of
removal of unsightly signs, &
c., or by remodeling, limitation of building
heights, &c.
7. Induce cooperative action between merchants and owners for the
improving of shopping centers.

In addressing the convention of the National Association
of Real Estate Boards on Oct. 24 Holman D. Pettibone,
President of the Chicago Title & Trust Co., stated that we
are today enjoying a higher level of economic activity than
has prevailed generally since 1937, and in some lines since
1929. The outlook for reemployment has not been so favor­
able for more than three and a half years. This means
enlarged consumer purchasing power.
Undoubtedly, the
war is a strong factor in the present upsurge, although
there is every indication that this country was entering
upon a period of business recovery months before the war
started. There are hopeful signs that the activity is already
far enough along to survive a “peace shock.” In the field
of real estate the outlook is for rising use, rising rents, a
more active market, greater net earnings.
That real estate should be valued for tax purposes largely
on the basis of income was urged by Harry S. Cutmore,
M .A.I., Chicago, 111., addressing a meeting o f the American
Institute of Real Estate Appraisers of the National Asso­
ciation of Real Estate Boards at the Association’s annual
convention. Mr. Cutmore, formerly Chief Deputy Assessor
of Cook County, Illinois (in which Chicago is located) and
author of “Cook County’s Assessor’s Manual,” pointed out
that the property tax still remains the most important
source of revenue for local governments. “Yet it is well
known,” he said, “that the great majority of assessors use
hit-and-miss methods of valuation which bear no semblance
to the value estimates found by competent appraisers.”
He observed that at the present time the Cook County
(Illinois) Assessor is developing a technique in which the
income factor is to be considered, and he added:
The city of Fort Myers, Fla., has recently employed Charles P. Glover
of that city to make a complete revaluation of all the real estate on the
assessment rolls, using income and productivity as the principal basis for
the valuation. Mr. Glover is the author of a recently issued manual for
tax valuation which describes in detail the method which can be applied
to the various types of property for estimating their value for tax purposes
on the basis of their use value or productivity.

Others who addressed the convention were E. L. Osten­
dorf, President of the Association; George C. Smith of St.
Louis, Arthur W . Binns of Philadelphia, W alter H. Leimert
of Los Angeles, Parker Webb of Boston, M a ss.; David D.
Bohannon o f San Francisco, and George L. Schmutz of Los
Angeles.




2909

D o lla r I n c o m e o f I n d i v id u a ls f o r T h r e e -Q u a r t e r s o f
1 9 3 9 W a s $ 2 ,0 0 0 ,0 0 0 , 0 0 0 A b o v e S a m e P e r i o d o f 1 9 3 8 ,
S e c re ta ry o f C o m m erce H o p k in s R e p o rts

Secretary of Commerce Harry L . Hopkins announced
yesterday (Oct. 27) that dollar income of individuals in the
United States for the first three-quarters of 1939 was more
than $2 ,000,000,000 higher than in the corresponding period
of 1938. Income payments so far this year aggregate $5 0,789.00 0. 000 against $48,733,000,000 for the first nine months
of last year. After allowance for the usual seasonal pattern,
this corresponds to an annual rate of $6 8,60 0,0 00,0 00, as
compared with a total of $66,275,000,000 for 1938, it was
said. Income payments during September totaled $ 6 ,01 2 .0 0 0 . 000, a rise of $355,000,000, or 6 % , over the Septem­
ber total of $5,657 ,00 0,00 0. The Commerce Department’s
announcement went on to state:
The seasonally adjusted index of income payments advanced from 85.4
(1929=100) in August to 86.8 in September, the highest level in nearly
two years and only 5% below the 1937 peak. The most important single
factor in the advance was the sharp rise in agricultural prices and the
attendant rise in cash income from farm marketings during September.
Income from the non-agricultural sources rose slightly to 87.0 in September,
from 86.7 for August. There was a larger rise in industrial pay rolls but
this was offset in part by a sharp reduction in work-relief wages and in un­
employment compensation benefits, the latter reflecting largely the im­
proved employment conditions in September as compared with August.
After correction for seasonal influences, the index of wages and salaries,
which constitute approximately two-thirds o f total income, rose from 84.0
in August to 84.3 in September. Income received by employees during
the month totaled 83,693,000,000, an increase of 5% over September, 1938.
Pay rolls in the important commodity-producing industries (agriculture,
mining, manufacturing and construction) were 11% higher than a year
ago, whereas the incomes of employees attached to the distributive and
service industries increased only 5% . Reflecting the sharp drop in workrelief wages since the first of the year, the contribution of governmental
agencies to salaries and wages was 9% lower than a year ago.
Income received in the form o f dividends and interest totaled $805.000,000 in September as compared with $451,000,000 in August and $723.000,000 in September, 1938. A further gain during September was recorded
in income payments from entrepreneurial income, net rents and royalties.
Income from the latter sources was estimated at $1,291,000,000 as com­
pared with $1,157,000,000 in August and $1,190,000,000 in September, 1938.
IN C O M E P A Y M E N T S
(Millions o l Dollars)
Sept.,
1939

Aug.,
1939

Sept.,
1938

First Nine Months
1939

T o ta l__________________ 6,012
5,400 5,657
Adjusted index, total
( 1 9 2 9 = 1 0 0 ) . .. ..........
85.4
86.8
81.8
W ages and salaries____ 3,693
3,560 3,525
A d j. index of wages and
salaries (1 9 2 9 = 1 0 0 ).
84.3
84.0
80.4
Dividends and interest.
723
805
451
Entrepreneurial income
and net rents and
1,291
royalties_________
1,157
1,190
Social security benefits
223
& other labor incom e.
232
219

1938

1933

1929

50,788

48,733

34,085

60,706

84.0
81.2
56.2
99.7
32,204 30,612 21,297 38,994
82.5
46,288

78.4
6,102

54.0
5,622

99.8
8,575

10,252

10,101

6,363

12,450

2,043

1,918

1,159

687

S u rv e y B y B u r e a u o f L a b o r S ta tis tic s S h o w s t h a t F o o d
T a k e s 33 C e n t s o f C it y W o r k e r s ’ D o lla r W h i le 25
C e n ts G o e s fo r H o u s in g a n d F u e l

In discussing where the dollar from the average workers’
pay envelope goes, Commissioner Lubinof the United States
Bureau of Labor Statistics reported on Oct. 22 that food
takes 33 cents out of the typical city workers’ dollar, while
housing and fuel take almost 25 cents. “ When another
10 cents goes for clothing, a balance of 22 cents is left to
cover all the other items which enter into family living,”
M r . Lubin said. These are the finidings of a survey made
by the Bureau of Labor Statistics in 42 cities covering 12
months within the period 1934-36, according to the Bureau
which says that a total of 14,469 families of employed wage
earners and clerical workers who had received no relief
during the year cooperated with the Bureau by giving an­
swers to detailed questions regarding their incomes and ex­
penditures. The Bureau’s announcement goes on to say:
This group of families, with at least one employed member and a minimum income o f $500, the lower limit set by the plan of the investigation,
averaged $1,515 per year. However, half of the families studied had in­
comes o f $1,458 or less.
The average family, taking all the families studied in the 42 cities as one
composite, spent a third of its entire income, $508, for the butcher and
baker, the grocer and dairyman, and at lunch counters and resturants to
purchase the family’s food. The average annual expense for housing, and
fuel, light and refrigeration was $367. For some families this meant
rented apartments with heat, light and current for refrigeration furnished
by the landlord; for others it meant payment of taxes, interest and repairs
on a 5 or 6 room house and purchase of heating fuel, electricity for lighting
and ice for refrigeration.
Clothing for this average family, which comprised 3.6 persons, cost $160
or $44 per person. Winter coats for the men and older boys in the family
were purchased about once every five years and about once in every four
years for the women and girls. Shoes on the other hand are an annual
necessity. Expenditures for shoes constituted one o f the largest items of
clothing expenditure.
After food, clothing and housing, the largest claim on the family pocketbook was made by the automobile. Expenditures for purchase, operation
and maintenance averaged $87 per family for the year. The survay
found that more workers’ families in western cities had cars than those in
eastern centers. Furthermore the families in smaller communities were
more apt to have cars than those in metropolitan areas where traffic con­
gestion is greater. The majority of the automobiles bought by this group
of workers’ families were purchased as used cars. They served to take
family members to an from work and school and to provide inexpensive
week-end or vacation outings for the whole family. It was impossible,

2910

ONE HUNDRED The
—

Commercial & Financial Chronicle —YEAR S

however, to separate the extent to which automobile expenditures were
devoted to recreation as compared to other purposes.
After automobile expenditures came those for recreation of other types
with an average o f $82 a year. This included cameras, radio purchase and
upkeep, paid admissions to “ movies” , ball games and other commercial
amusements, purchase o f newspapers and other reading matter, cigarettes
and other forms of tobacco, as well as sport and play equipment.
Expenditures for household furnishings, medical care, and household
operation cash averaged approxim ately $60- Expenditures for house
furnishings covered both purchase o f new items, and replacement of such
items as light bulbs, towels, sheets and kitchen utensils. Included in
household operation costs were telephone, laundry sent out, soap and
cleaning supplies, household help, postage and similar items.
Of every dollar spent for medical care 22 cents was for drugs, medicines,
eye glasses and medical appliances, 10 cents for hospital service, and 68
cents for other medical service.
Transportation by street car, bus, ferry, train, boat and occasionally by
airplane, claimed a total o f $38 fo the average family’s income. Another
$30 was required to take care o f the personal grooming o f these family mem­
bers. Of this, the largest item was haircuts, with other barber and beauty
shop services and toilet articles and preparations also claiming a share.
The other channels into which the typical workers’ family money found
its way were gifts and contributions to persons outside the family, which
aggregated $24; direct taxes and tother contributions to the community
welfare which averaged $19; $7 for formal education; $6 for vocational ex­
pense such as union dues, licenses, etc; and $7 for miscellaneous expen­
ditures .
M a r in e r s’ G r o u p U r g e s P r e s id e n t a n d C o n g r e s s to
E lim in a t e S h ip a n d C o m m e r c e B a r r ie r s fr o m N e u ­
t r a l i t y B ill

The Council of American Master Mariners on Oct. 25
adopted resolutions, copies of which were sent to President
Roosevelt, Vice-President Garner, Senator Alben W . Bark­
ley, majority leader, and Senator K ey Pittman, Chairman
of the Foreign Relations Committee, asking them to aid in
eliminating ship and commercial barriers and restrictions
in the proposed neutrality act, thus preserving the tradi­
tional freedom of the seas for American ships.
The communication read as follows:
As 1’resident o f the Council o f American Master Mariners, I am taking
the liberty o f sending you a copy o f a resolution which we have prepared
for your consideration and also for the Congress o f the United States in
connection with the above mentioned matter.
It is our wish that you might take the initiative toward eliminating ship
and commerce barriers and restrictions in the proposed neutrality act,
thus preserving the traditional freedom o f the seas for all vessels o f the
United States.
I have the honor to remain most respectively yours,
SCHUYLER F. CUM INGS,
President, The Council o f American Master Mariners.

The resolution reads:
The Council o f American Master Mariners is a duly constituted
organization o f seafarers who are in command or who have commanded
ocean-going vessels o f over 5,000 gross tons in the American merchant
marine, and
W h e r e a s , the Council o f American Master Marinars is pledged to serve
no personal or private ambition or interest but to promote broad general
policies for the benefit o f masters, officers, the men, investors, shippers and
national interest in the American Merchant Marien, and
W h e r e a s , the Council o f American Master Mariners is representative of
a large cross section o f American shipmasters engaged in American mari­
time operations both afloat and ashore, throughout the world, and
W h e r e a s , it is our belief that the principles o f the freedom o f the seas are
in jeopardy and the future welfare o f the American merchant marine
threatened due to the possibility o f certain legislative barriers and re­
strictions being imposed by the Congress o f the United States which may
impair the free operations o f American merchant vessels on the high seas,
and
W h e r e a s , it is our belief that the principles o f the freedom of the seas and
neutrality are separate and distinct from one another, and therefore should
not be confused or combined,
B e it th e r e fo r e r e so lv e d that the executive committee o f the Council of
American Masters Mariners hereby respectively petitions and strongly
urges in the best interests o f the Nation that no legislation be enacted by
the Congress o f the United States which will tend to abolish or compromise
the traditional rights o f our American merchant marine to enjoy the free­
dom o f the seas and subject to international law.
W h erea s,

F iv e -D a y W e e k P la n G a i n i n g in P o p u la r i t y in N e w
Y o r k C ity — S u r v e y b y M e r c h a n ts A s s o c ia tio n F in d s
16 D i f f e r e n t K i n d s o f B u s in e s s e s H a v e A d o p t e d
P r in c ip le

Sixteen different types of businesses in N ew York City
have adopted the five-day week for all employees throughout
the year, it was revealed on Oct. 22 in a survey made public
by the Merchants Association of New Y ork. The study
covered information obtained from 120 establishments, each
of which has more than 75 employees. The Association said
that the analysis showed that many employers would like
to see the five-day week universally adopted throughout
the city. A statement issued by the Association, summariz­
ing the results of the survey, said in part:
Information received by the Association, indicates that the effects o f the
adoption o f five-day week plans such as reduction in retail sales on specified
days and the difficulty experienced by wholesalers in delivering merchan­
dise during the days on which large groups o f employees do not work, has
been felt extensively.
Undoubtedly many employers would like to see uniform practice through­
out the city, since the existence o f a semi-universal practice, as represented
by the 77.8% o f employers who, for all practical purposes, have installed
continuous five-day week plans, not only causes other employers great
inconvenience, but also increases the cost o f conducting business during the
days, principally Saturadys, when most employees are away from their
work. This situation means that those employers who have not adopted
five-day week plans maintain more or less regular staffs for accomplishing
a considerably reduced amount o f work. As a result o f these considerations,




OLD Nov. 4, 1939

a strong trend undoubtedly exists at the present time toward the adoption
o f a practically universal five-day week basis o f employment throughout
the New York area.

The announcement b y the Industrial Bureau says that
out of the 120 employers who gave information in this survey
it was found that 104 had some form of five-day week plan
and only 16 had no five-day week plan. Sixty of the em ­
ployers, or 5 7 .7 % of those having such plans, give all their
employees a five-day week throughout the year. Twenty-one
employers, or 2 0 .1 % , reported a five-day week plan in
operation for a portion of their employees throughout the
year and 23 concerns reported five-day week plans for all
employees during part of the year or five-day week plans for
a portion of the employees during part of the year.
N u m b e r o f S tr ik e s in U n it e d S ta t e s M o re T h a n D o u b le d
in T h r e e Y e a r s o f O p e r a tio n o f N L R B C o m p a re d
w ith T h r e e Y e a r s B e fo r e L a w W e n t in t o E ffe c t ,
A c c o r d in g to S u rv e y b y N ew Y o r k S ta te C h a m b e r
o f C om m erce

The number of strikes in the United States more than
doubled in the first three years of operation of the National
Labor Relations Board compared with the three years be­
fore the Wagner A ct, which created the Board, became a
law, it was disclosed Oct. 30, in a survey made public by
the Chamber of .Commerce of the State of N ew York . The
survey, which was made by the Chamber’s Special Com ­
mittee on Industrial Problems and Relations, said that
while the Wagner Act was adopted in July, 1935, its influ­
ence on the volume of strikes that year was negligible be­
cause the N L R B was not organized until October. The
Committee therefore disregarded the year 1935 in making
its comparisons. The survey said:
In the three calendar years preceding the enactment o f the Wagner law,
1932-1934, there were 4,392 strikes in the United States. In the three
calendar years following its enactment, 1936-1938, there were 9,684 strikes,
or an increase of 120%. The number of workers involved increased 12.7%
and the man-days idle increased 9.6% in the latter period.

In the above comparison, the survey said, due allowance
should be made for the fact that the year 1932 was the lowwater mark of the depression and 1937 the year of strongest
recovery. It pointed out, however, that while the general
tendency of strikes was to follow the business cycle, this re­
lationship did not hold true with year-to-year fidelity.
The survey further explained:
In some years o f business prosperity there has been less strike activity
than in years of depression. A notable example of this was in the 19271929 boom period when the yearly average number o f strikes was only
744 compared with a yearly average o f 2,898 in the 1920-1921 depression
and 1,218 in the prolonged depression o f 1893-1898.

Analyzing the outcome of the strikes in the two periods,
the survey showed that in 1936-1938 when the Labor Board
was in full operation:
The percentage o f strikes settled by compromise between workers and
employers decreased to an average o f 28.4% compared with an average of
31.7% in the earlier period.
The percentage o f strikes won by workers increased to an average of
44.1% compared with an average o f 30.8% in the earlier period.
The percentage of strikes in which employers were victorious decreased
to an average o f 23.4% from an average of 33.8% in the earlier period.

The survey said that in the first eight months of the
Labor Board’s operation, terminating at the end of the fiscal
year June 30, 1936, a total of 865 complaints alleging unfair
labor practices were filed. During the next fiscal year
3,124 complaints were filed and during the 1938 fiscal year
6,807 complaints. These figures were cited by the survey
to show “ the effect which the Wagner law has had in in­
creasing organizational activities of labor and the extent of
labor’s resort to the Labor Board for the adjustment of
alleged grievances.” The survey added:
It is interesting to note that during the fiscal year ended June 30, 1938,
more complaints against employers alleging unfair labor practices were
filed with the Board than the total number of strikes in the United States
(6,760) in the six calendar years preceding the Wagner Act.

Commenting upon the number of cases before the Labor
Board which were dismissed or withdrawn the survey said:
The high percentage of cases withdrawn and dismissed— averaging 39.8%
o f all cases disposed o f by the Board up to June 30, 1938— would seem to
indicate that a large number of the complaints and petitions from labor
organizations and individual employees were based on unfounded or un­
warranted charges or otherwise deficient. It seems reasonable to assume
therefore that many of such cases, particularly those which might be classed
as petty grievances, never would have attained the status o f labor contro­
versies if the Wagner Act had not been on the statute books.

The survey pointed out that the percentage of strikes for
union organization, which the Wagner Act was expected to
reduce, had materially increased since the Labor Board was
in operation. In 1936 such strikes were 5 0 .2 % of the total
number of strikes reported in 1937 they were 5 7 .8 % , and
in 1938 5 0 % . In the period between 1927 and 1934 the per­
centage of organization strikes averaged only 3 3 .8 against
52.7 in the 1936-1938 period.
D ockers

S tr ik e

A g a in st

E a ste rn

C oast

L in e s

A strike was called, after failure to achieve a wage increase,
against 10 eastern coastwise steamship lines on N o v . 2 , by
the International Longshoremen’s Association an A . F . of L .,
affiliate in the Port of New York.

Volume 149

ONE HUNDRED
—The Commercial & Financial Chronicle—Y E A R S OLD

Approximately 5,000 men are expected to be affected in
New York immediately with the number rising should it
spread to other Atlantic Coast ports.
Reporting the strike the “ Journal of Commerce” of N o v . 3 ,
said:
The strike is the result o f failure o f the union to achieve a 10c. an hour
raise and a 40-hour work week. Present pay is 95c. an hour for a 44-hour
week. Yesterday the union offered to compromise a $1 an hour wage, but
the shipowners turned it down, demanding a 90-day extension o f the present
contract.
Some o f the lines involved operate both coastwise and deep-sea vessels
but only the coastwise boats will be affected because the longshoremen’s
contract with the deep-sea operators has been extended due to the different
circumstances prevailing in that field.
fe, The companies involved operate some 70 vessels employing 3,500 men
in the coastwise Grade. Vessels here expected to be affected immediately—
having been scheduled to sail today or tomorrow— are the Savannah liner
City of Birmingham, the Eastern Steamship Co. liners George Washington,
Boston, St. John and New York, the Morgan liner Dixie, and the ClydeMallory line's Shawnee.
Apparently the only men affected when the strike order became effective
midnight were 300 longshoremen working at the Morgan line pier and 200
at the Eastern line pier. They walked out promptly and quietly. No
picket lines were established immediately and it was not expected that this
would be done before daylight.
Joseph P. Ryan, president o f the International Longshoremen’s Associa­
tion, said last night that he regretted that a strike must be called because
he believed it would be ruinous to the industry. He said he expected that
15,000 men in other ports also would be affected.
g The 15,000 figure, o f course, would include ships’ crews, office help and
other non-longshoremen categories not actually on strike, but unable to
work because of the tieup.
(ss The lines affected by the strike order are the Clyde-Mallory, United
Fruit, Eastern Steamship, Bull, Lykes Bros., Moore-McCormack, Savan­
nah, Newtex, Old Dominion and Panama Railroad.
D o d g a T r u c k P la n t C lo s e d b y C h r y s le r D is p u t e

The 27-day old dispute between the Chrysler Corporation
and the United Automobile Workers (C. I. O .) spread on
Oct. 31 to the remaining 1,000 workers of the Dodge truck
plant, bringing the total affected to 51,000. United Press
advices from Detroit Oct. 31 bearing on the strike said:
The action at Dodge truck was described by Herman L. Weckler, VicePresident in charge of Chrysler operations, as a “strike” on the heavy duty
line which cut production 50% o f normal.
I*, The U. A. W .-C . I. O., however, termed it a “ shutdown” by the manage­
ment— “ a show o f force which it hopes will influence the present negotia­
tions.”
Picket lines were thrown around the plant, which has operated with only
half its working force since Oct. 6 when the dispute flared over production
speeds at the main Dodge plant.
Richard T . Frankensteen, regional U. A. "W.-C. I. O. Director, said the
Dodge truck workers “ had been subjected for more than a week to pro­
vocative acts by foremen and supervisors.
M r. Weckler said the trouble started at 2 p. m. when “ work was so dis­
rupted that normal operations could not continue. Appalls to the president
o f the union local and to the plant committee were fruitless.”
j&sAt conferences today, M r. Weckler said, discussion centered on procedure
under collective bargaining and handling o f grievances.
fa James F. Dewey, Federal Labor Conciliator, said three major issues
were deadlocking the negotiations. They were the question of arbitration,
the extent o f the new contract and the degree o f recognition to be given the
U. A. W .-C. I. O. He said he would immediately begin separate night ses­
sions with company and union officials in an effort to break the stalemate.

Referring to the Chrysler Corporation strike, and the in­
tervention of Governor Dickinson of Detroit, the “ Herald
Tribune” of N o v . 2 , said:
Governor Luren B . Dickinson intervened today in the five-weeks-old
Chrysler labor dispute by summoning the heads o f the contending parties
to a joint conference before him Thursday.
In joint telegrams t* K. T. Keller, President o f the Chrysler M otor Com­
pany and R. J. Thomas, President o f the United Automobile Workers (C.
I. O.), Governor Dickinson and Arthur E. Raab, Head o f the State Labor
Mediations Board, expressed concern at the continued spectacle o f 50,000
Michigan workmen out o f employment.
“ The State cannot sit idly by without making every possible effort to end
the situation,” the telegram said.
Persons officially invited to the conference with Governor Dickinson are
Keller and Herman Weckler, Vice-President o f the Chrysler M otor Com­
pany; Thomas and Richard T . Frankensteen, Vice-President of the U. A.
W .-C . I. O. James F. Dewey, Federal conciliator, also will be present with
Raab and members o f the Labor Mediations Board.
The Chrysler plant at New Castle, Ind., closed today, adding 2,500 more
to the list o f unemployment. The Dodge truck division shutdown had
brought the Chrysler total to 51,000 unemployed, plus estimates as high as
100,000 additional affected in allied industries.
A corporation spokesman here said there was no labor trouble at the
Indiana plant, but that the closing was due to the Detroit dispute.

A previous reference to the Chrysler strike appeared in
our issue of O ct. 21, page 2455.
S t r ik e s C a lle d a t B o r g -W a r n e r P la n t s

Strikes were called on Oct. 30 , in the plants of the Norge
and the Detroit Gear and Machine divisions of the BorgWarner Corporation by the United Automobile Workers
(C .I .O .). Shortage of parts existing because of U .A .W .(C .I.O .) strikes in Borg-Warner plants caused the suspension
Oct. 31 of operations at the M arvel Carburetor Com pany,
a division of the Borg-Warner Corp.
The strikes at the Norge and the Detroit Gear and Machine
divisions were called within twenty-four hours after union
employees at the plants had voted to walk out in protest
against the corporation’s refusal to negotiate a strike at the
Long Manufacturing division. Issues at the Long M anu­
facturing plant involve a union-shop clause, abolition of
piece work, seniority recognition, vacation with pay and a
bonus for night work. The strike at the Long plant has been




2911

in progress since late September, and has since spread to six
additional plants, affecting more than 3,0 00 employees.
Conferences of the Borg-Warner Corp. were postponed
to allow David T . Roadley, Federal labor conciliator, to sub­
mit a settlement plan to the corporation’s officials privately.
A m e r ic a n B lo w e r C o r p . S tr ik e S e t tle d

The strike at the American Blower Corp., called by the
United Automobile Workers (Congress of Industrial Organ­
izations), was settled on Oct. 26. Approximately 500 men
affected by the strike returned to work on Oct. 30. Clark
Morse, President of the American Blower Corp., stated
that the contract guarantees the restoration of a wage cut
of approximately 6 % . The cut was imposed last Jan. 1,
and the restoration will become effective next Jan. 1. In
reporting the strike settlement the Detroit “ Free Press”
of Oct. 27 said:
Leo Lamotte, U. A. W.-C. I. 0. regional director, who signed the con­
tract for the union, said that the union shop had not been demanded.
The company manufactures heating and ventilating equipment.
According to Mr. Lamotte, the contract, which expires April 30, 1941,
provides a bonus of 5c. an hour for night work, and guarantees pay raises
of 2c. and 3c. an hour to laborers.
David T. Roadley, Federal labor conciliator, who presided at the negotia­
tions, said the contract calls for vacation pay in the form of a bonus
based on 2 !4 % of each employee’s annual salary. Clarification of seniority
and grievance clauses was also contained in the contract, he said.
A m e r ic a n S m e ltin g &

R e fin in g C o . R e o p e n s

The American Smelting & Refining Co.’s plant at Perth
Amboy, N. J., closed since Oct. 10, when 800 employees en­
gaged in the processing of copper, lead and zinc struck,
was reopened on Oct. 27. About 100 men are said to have
returned to work. The Perth Amboy Smelters and Refinery
W orkers’ Union, a Congress of Industrial Organizations
affiliate, called the strike when efforts to negotiate a dis­
pute over its demands for a 10% wage increase, a closed
shop and the check-off system failed. The plant normally
employs about 1,250 men.
A previous reference to the
American Smelting & Refining strike appeared in our issue
of Oct. 14, page 2311.
^
K in g L e o p o ld o f B e lg iu m E x p la in s N e u t r a li t y P o lic y
o f H i s C o u n t r y — -I n R a d i o A d d r e s s t o N e w Y o r k
“ H e r a ld
T r ib u n e ”
F orum
H opes
A m e r ic a
W ill
S u p p o r t A t t it u d e T a k e n b y B e lg iu m fo r G o o d o f
P e a c e in S e r v ic e o f C iv iliz a t io n

In a radio address from Brussels, Oct. 26, to the ninth
annual New York “Herald Tribune” Forum on Current
Problems, King Leopold III of the Belgians set forth bis
country’s position in the present European conflict. The
King stated that in 11)37 Belgium was assured by her
“three great neighbors” that her frontiers would be re­
spected anil her independence insured. Asserting that neu­
trality is vital to Belgium because it depends for its very
subsistence on the activities of her inhabitants, the King
said that “peace is thus for the Belgian people a matter of
life and death.” He added that it has no ambitions for
territorial expansion nor did it have any part in bringing
about the present war. Stating that he trusts the word
of the belligerents, King Leopold concluded by expressing
the hope that the American Nation “ will encourage and
support us in the attitude we have adopted for the good
of peace in the service of civilization.” In our issue of
Oct. 28, page 2616 and page 2626, the address of President
Roosevelt and remarks of other speakers to the Forum were
given. The text of King Leopold’s radio address, as given
in the “Herald Tribune” of Oct. 27, follow s:
I am honored by speaking from the same platform as your great Presi­
dent. When the Forum kindly asked me to give a short message to the
American Nation, I accepted this invitation with pleasure. My compatriots,
my family and I have many dear and faithful memories of the United
States.
No Belgian can forget the solace and efficient aid that the American
people extended to the Belgian population by leading the relief of its
needs during years of stress.
The topic that was suggested to me was “ A Call in the Defense of
Civilization.” I regard this suggestion as a compliment to my country.
It implies a recognition of the distinguished place that Belgium has held
throughout the history of the Western World. Belgium has always been
looked upon as a fountainhead of Christian civilization.
Convinced that my country is acting in the defense of this civilization
by the attitude it has taken amidst the conflict that has broken out in
Europe, I feel I might confine my remarks to clarifying to my American
audience Belgium’ s position in this war— a position entirely consistent
with the will, the courage, and the integrity of my people.
In my capacity as head of the Belgian State, I welcome this opportunity
of setting out clearly the following facts:
In 1937 we made known our policy of independence, and each of our
three great neighbors acknowledged this notification. They went further,
spontaneously giving us a definite assurance that they would respect Bel­
gium’s frontiers and insure her independence. This led up logically to
the declaration of neutrality which my Government made at the beginning
of the present war. An attitude of neutrality is, moreover, in keeping
both with the traditions and aspirations of the Belgian people, whose
feelings have evolved from age-long struggles.
The Belgian nation,
which is the very incarnation of the sense of individual liberty, gave its
blood to win its institutions in an unflinching determination to remain
itself.
Neutrality also is vital to my country. Belgium, whose territory is
small but one of the most thickly-populated in the world, essentially
depends for her very subsistence on the activities of her inhabitants.
These activities in turn require a continuous florv of her export trade and

2912

ONE HUNDRED The
—

Commercial & Financial Chronicle —

unhindered importation of food and industrial supplies. Peaec is thus
for the Belgian people a matter of life and death.
We have no ambitions for territorial expansion. Neither had we any
part whatever in the happenings that brought about the conflict today
dividing Europe. If we became involved in the fray, it is on our soil that
the issue would be fought out, and, in view of the small size of our
territory, that would spell utter destruction for Belgium, whatever the
issue of the war.
Side by side with Holland, Belgium stands for an island of peace in
the interests of all. At the crossroads of the borders of the great west
European Powers, Belgium, neutral, loyal, and strong as she is today,
fulfills an essentially peaceful mission. She sets a limit to the fighting
front and to the loss of human life. She stands amongst other neutral
States for a stronghold of peace, and an agent of that appeasement which
alone can save our civilization from the abyss into which a world war
would throw it.
We fully know our rights and our duties. We await the future with
steadfast serenity and a clear conscience which nothing can perturb. We
are prepared to exert our entire strength in order to uphold our inde­
pendence.
Exactly 25 years ago, day for day, the Belgian Army, under the com­
mand of my father, King Albert, arrested, after a hard battle, the
progress of a cruel invasion. If we were attacked, and pray God this may
not happen, in violation of the solemn and definite undertakings that were
given us in 1937 and were renewed at the outset of the present war, we
would not hesitate to fight with the same conviction, but with forces 10
times stronger. Once again a single-minded nation would support its
army.
But we cannot believe that the belligerents would fail to respect our
neutrality. We trust in the word they have given us and have proclaimed
before the world, just as they may rely on our loyalty from which, follow­
ing the example set by my beloved father, I am resolved never to swerve,
as the sovereign of a free and gallant people.
In conclusion, let me express the hope that the American Nation, to
whom we feel so closely drawn by ties of common aspirations and by
similarity of our institutions, will encourage and support us in the attitude
we have adopted for the good of peace in the service of civilization.
L o rd L o t h ia n , B r itis h A m b a s s a d o r to U n ite d S ta t e s ,
in
A d d r e s s in g
P ilg r im s
D in n e r
in
N ew
Y ork,
A s s e r ts T h a t G r e a te s t M ista k e s a t P e a c e C o n ­
fe r e n c e W e r e E c o n o m ic , N o t P o litic a l— D is c u s s e s
V e r s a ille s T r e a t y

In an address before the annual dinner of The Pilgrims
in New York City on Oct. 24, the Marquess of Lothian,
British Ambassador to the United States, in discussing the
Treaty o f Versailles, conceded that “there were certainly
defects enough in it,” but he added, “it is absurd to attri­
bute all our troubles to it.” In part he added:

YE A R S OLD Nov. 4, 1939

Presented by Mrs. Ogden Reid, Vice President of The New York “ Herald
Tribune” and Chairman of the forum, as a Britisher who probably under­
stood America better than any other ambassador since Lord Bryce, Lord
Lothian asserted that “ the longer war goes on, the more it inevitably and
inexorably trenches upon individual liberty.” He described war as “ the
greatest enemy of democracy.”
After citing the evolution of government from the city-State in Greece,
Lord Lothian said:
“ Finally, when the United States was born, you made another vast dis­
covery by dividing the functions of government between the State and the
province, you enabled the rule of law and the representative system to be
applied so as to give freedom, responsibility, representation and peace to
a continent as large as the whole of Europe.
“ That has been your greatest contribution throughout your history, and
it is for that accomplishment that Abraham Lincoln asked you to fight
the Civil War.
“ Now, we are faced today with something larger, far more difficult. It
isn’t going to be solved in a day. Neither I nor anybody else can tell
you how it is to be solved, but I venture to suggest to you that it is in the
study of the growth of peace in the sense in which I have described, be­
ginning with Greece, passing through Rome, then through England and
other countries, and finally the United States, that we are going to find
the clue, the final clue which at some future date, near or late, will give
to the world that peace, reign of law and liberty which we all seek more
than anything else in the world today.”

N ew

Y ork
W o r l d ’s
F a ir C lo s e s
1939 S e a so n
w ith
F in a n c e s o n S o u n d B a s is , C h a ir m a n G ib s o n S a y s —
A t t e n d a n c e W a s 2 6 ,0 0 0 ,0 0 0 — B r a z i l a n d F i n l a n d
to P a r tic ip a te N e x t Y e a r — G la s s C e n te r W i ll A ls o
R e tu rn

A s tlie New York W orld’s Fair closed its first year of
operation on Oct. 31, Harvey D. Gibson, Chairman of the
Board of Directors of the Fair Corporation, issued a finan­
cial statement disclosing “a satisfactory condition” and he
stated that no financial problem is expected to interfere
with the opening next year. According to the report the
Fair had a balance of $1,128,924 in net quick available assets
on hand Oct. 30, which included $330,204 of accrued interest
to be paid holders of $23,982,808.81 outstanding debentures
on Jan. 1. A t the beginning of his statement Mr. Gihson
expressed “deep appreciation” for the support shown by the
public and all connected with the Fair and the hope for the
same patronage next year.
The text of the statement issued by Mr. Gibson on the
financial condition of the New York W orld’s Fair follow s:

At the conclusion of this, the first year of the operation of the Fair,
in behalf of the board of directors and other committees of the Fair Cor­
poration, I wish to express deep appreciation for the support the Fair has
Do not let us lose sight of the ideals which moved us in those remark­
received from the public, employees, exhibitors, concessionaires and all
able days from 1914 to 1920. W e then entered an epoch in which an old
T
others who have played a part in the Fair’s success.
world began to die and a new world began to be born. Before 1914 inter­
We have many plans for next year’s Fair which, during the next few
national relations were governed by the old diplomacy. It was regarded
months, will be announced from time to time to the public. We sincerely
as natural and right that every nation should think only of its own inter­
hope that the Fair next year will merit the same generous confidence and
ests, and should feel no responsibility for any one else.
patronage that the public has given us this year.
But in 1914 the democracies, which had previously concerned themselves
Following our policy of disclosing our full position to the public, par­
almost entirely with their internal affairs, began to take charge of inter­
ticularly those who are interested in one way or another in the operations
national relations. Democracy, as Thomas Mann has so brilliantly said in
of the World’s Fair, we at this time wish to state the general financial
his great address “ The Coming Triumph of Democracy,” by the law of its
condition of the New York World’s Fair Corporation as its gates are about
being, inevitably gives its allegiance not to dreams of power but to moral
to close this year.
ideals. It may not always live up to these ideals. It certainly does not.
As of the close of business on Oct. 29 the Fair Corporation had on hand
But they are the stars by which it guides its life.
$1,328,090 current working cash. This was exclusive of a number of
And so, immediately the democracies became actively concerned with
accounts in which funds are segregated for specific designated uses.
international affairs they proclaimed their own ideals about them.
Our accounts receivable less reserve for doubtful accounts are $483,246.
Mankind is a community. War is fratricide. Nations as well as indi­
Our current accounts payable, nothing past due, amount to $682,412. Our
viduals have the right to life, liberty and happiness. Backward people have
current accounts payable therefore exceed our accounts receivable in the
the right to security against exploitation and to be guided toward selfamount of $199,166. If this difference between accounts payable and
government. The status of all nations, great and small, should be equal
accounts receivable is deducted from our cash on hand we have a balance
before the law. And the establishment of a true reign of law between the
of $1,128,924 which represents net quick assets available as of Oct. 30.
nations is the only remedy for war.
Included in this amount is $330,204 of accrued interest which will be
Those were the ideals which underlay the war and the Paris Peace Con­
due and payable on Jan. 1, 1940 to satisfy debenture interest requirements
ference of 1919. They are, I believe, eternally true. And they were ex­
on the $23,982,808.81 outstanding debentures.
pressed with immortal eloquence by your own President Wilson.
The satisfaction of settlement with contractors agreed upon last August
Tire greatest mistakes made at the peace conference were not political
has progressed according to echedule. The indebtedness to banks existing
but economic. Few people seemed to realize the inevitable consequence of
and increased as provided in the plan at that time has been liquidated
dividing Europe, or, for that matter, the world, inter watertight economic
in full. The balance of the total amount due contractors and debenture
Compartments and then of imposing on these States fantastic reparations
holders as provided in the plan to be liquidated out of gate receipts next
and other forms of intergovernmental indebtedness which it was quite
year amounts to $260,777 and $326,248 respectively. This is a reduction
impossible to pay across these economic frontiers, without disaster for all.
from a high point of about $2,400,000, or a reduction of approximately
Fundamentally the British are fighting today for the preservation of
$1,613,000.
some of these new values, which the democracies declared during the last
The projection of probable cash receipts and cash disbursements during
war. I am not sure that our ultimate goal is yet visible, any more than
the period between the close of the Fair this year and its opening next
we were able to see in 1914 what we came to see, largely under American
year indicates a satisfactory condition and no financial problem is expected
leadership, in 1918. But there are, we feel, two points which are clear.
according to the best figures that are available.
The first is that there can be no basis for a lasting peace which does not
In our estimates of cash to be received during this period no receipts
give to all the nations of Europe their right to autonomous freedom and
are counted on from an advance ticket sale campaign.
until the Gestapo is cleared out from among them.
The operating expenses of the corporation as provided for in the budget
The second is that we should establish some security against constantly
adopted by the board of directors yesterday, not including interest require­
renewed wars of aggression and against the situation in which Hitler has
ments, averages $10,700 a day. Total operating expenses for the period
been able to annex a new country by war or by threat of war every six
amount to $2,204,317, interest requirements approximately $560,000, and
months.
direct construction costs $1,447,360, making total costs for the entire
I
am sure there is no desire in my country to impose another dictated interim period including interest requirements $4,211,677.
peace on a prostrate Germany, or to take from her any lawful rights. On
Revenue forecast is $4,240,000 which amount, however, does not include
the contrary, I think there is a clear conviction that only through a peace
net quick assets on hand as of Oct. 30 amounting to $1,128,924.
negotiated with a government they can trust can Germany, and all other
Attendance figures at the Fair for the season, April 30
nations also, obtain that legitimate place in Europe and the world which
is the only possible basis for a lasting peace.
to Oct. 31, as announced by the Fair’s treasury department
But let there be no mistake. We feel that today we are fighting for
Nov. 1, showed that 25,816,542 persons paid admission and
some of the vital principles upon which a civilized world alone can rest—
an additional 6,969,642 were admitted on working permits,
a world in which the individual and the nation will be free to live their
passes, etc., making a total of 32,786,184 admissions. The
own lives in their own way, secure from sudden attack and destruction.
admission price to the Fair next year will be 50 cents, Mr.
There we stand; we can do no other. And unless I misjudge my fellowGibson announced on Nov. 1.
countrymen, there we shall stand until that purpose is achieved.

Addressing the ninth annual New York “Herald Tribune”
Forum on Oct. 26, Lord Lothian said that Europe may yet
find a clue to peace and order in the type of Government
established in the United States at the cost of a civil war.
The “ Times” of Oct. 27 summarized this speech as follow s:




Announcement was recently made that Brazil and Fin­
land will participate in the Fair next year and that Norway,
Sweden and Denmark will not return, although the Swedish
pavilion will be operated as a private enterprise.
The million dollar Glass Center at the Fair, sponsored
jointly by the Owens-Illinois Glass Co., the Pittsburgh Plate

Volume 149

ONE HUNDRED—The

Commercial & Financial Chronicle— YE A R S

Glass Co., and the Corning Glass Works, will again be a
feature in the coming 1940 season, it was announced Oct.
29. Highly pleased by the large attendance at the building,
which has exceeded 0,408,000 persons, the glass companies
plan innovations to add to the present show for the coming
season’s activities there.
Previous reference to others who have decided to return
next year was made in our issue of Oct. 28, page 2628.

Death of Representative Chester C. Bolton of Ohio—
Was Serving Fifth Term in Congress
Chester C. Bolton, Republican Representative in Congress
from the Twenty-second Ohio District, died of heart dis­
ease on Oct. 29 in Lakeside Hospital, Cleveland. He was
57 years old. Mr. Bolton was serving his fifth term in
Congress, having been first elected to the House in 1928.
He was reelected for four successive terms, but we defeated
in 1936 and returned to Congress in 1938. The following
concerning his career is from Cleveland advices of Oct. 29
to the New York “Times” :
Mr. Bolton was elected to the Ohio State Senate in 1922, and served six
years, spending the last two as majority leader and president pro-tem of
that body. He was a delegate to the Republican national convention
in 1928.
Mr. Bolton was born on Sept. 5, 1882, the son of the late Charles C.
and Julia Castle Bolton. . . .
He entered the employ of the Bourne
Fuller Co. here, which later became a part of the Republic Steel Corp.,
and had advanced to the position of Assistant Treasurer when the United
States entered the World War.
Commissioned Captain in the Army Ordnance Department after years
of training in the Ohio National Guard, Mr. Bolton was assigned to the
Munitions Standard Board as secretary and later to other duties with the
General Munitions and the War Industries Boards.
At the end of the war he was a Lieutenant-Colonel assigned as Assistant
Chief of Staff of the 101st Division, with headquarters in Mattiesburg,
Miss.
During his career in Congress Mr. Bolton was a member of the Rivers
and Harbors Committee for four terms and of the Appropriations Com­
mittee for two. He also served on the Select Committee on Conservation
of Wild Life Resources, 1930-36, and was a member of the Migratory Bird
Commission for the House, 1932-36, and of the George Rogers Clark Sesquicentennial Commission in 1936.
After his reelection to the Seventy-sixth Congress he was reassigned to
the Appropriations Committee and to the subcommittee for the War
Department. Mr. Bolton was a foe of the spending program of the New
Deal and refused to support the Townsend Plan movement.

Swiss Bank Corp. to Publish English Edition of Its
Monthly Bulletin
The Swiss Bank C orp., which opened an agency in New
York City on Oct. 16, will, in the future, publish an Epglish
edition of its monthly bulletin discussing current topics.
The organization’s main office in Basle has been publishing
the review for many years but only in two languages, German
and French.
The bulletin for September contains a discussion of some
of the aspects of the economic relations between Switzerland
and the United States, the texts of the convention between
the two countries signed in 1850 and of the trade agreement
signed in 1936.
Opening of the New York agency was reported in these
columns of Oct. 21 , page 2439.

L. H. Brown Awarded Vermilye Medal by Franlkin
Institute for Work in Industrial Management
The Franklin Institute of Pennsylvania will make its
first award of the Vermilye M edal “ in recognition of out­
standing contribution in the field of industrial m anagement,”
to Lewis H . Brown, President of the Johns-Manville C orp.,
New York , it was announced Oct. 29, by Philip C . Staples,
President of The Franklin Institute. Presentation of the
medal will be made in Philadelphia, N o v . 14. Nam ed after
its donor, William M . Vermilye, Vice-President of The
National City Bank of New Y ork, the medal is purposed to
stimulate, encourage and recognize outstanding contributions
in the field of industrial management not only in the United
States but in other countries as well. M r . Brown will receive
the medal for “ his brilliant work in executive management
in industry.”

Only Small Percentage of Public Regarded as Under­
standing Part Wall Street Plays in Economic Life
of Country, According to W. Averill Harriman
The subject of “ W all Street and Public Opinion” was dis­
cussed on O ct. 30 by W . Averell Harriman, Partner in the
private banking firm of Brown Brothers Harriman & C o .,
Chairman of the Board of the Union Pacific Railroad C o .,
and Chairman of the Business Advisory Council for the
Department of Commerce, at a luncheon meeting of the
New York Financial Advertisers Association at the Lawyers
Club in New York C ity. In analyzing the reasons why
W all Street had been a popular political football, M r . Harri­
man observed that “ It is not enough to be ‘doing a jo b ’—
it is necessary to have people believe you are.” He also
said:
Most o f the national publicity from Wall Street has come out o f the
unusual incidents in its history. The ordinary banking and financial
transactions are complicated and undramatic. I believe we will agree that
only a small percentage o f the public has an understanding of the real part
Wall Street plays in the economic life o f the country and in many o f the
major developments, such as employment in which everybody is interested.




OLD

2913

To emphasize the confusion of thinking that exists, M r .
Harriman pointed out that “ Bankers were condemned a few
years ago for making what were called improvident loans,
and yet today they are being condemned for alleged un­
willingness to lend m oney.” In concluding, M r . Harriman
stated:
M V
One inherent difficulty is that the qualities that make for success as a
sound banker are so different from those that make success in publicity that
they are not apt to be combined in the same individual. If, however, as much
intelligent thought is given to the development of public understanding
important public service performed as has been given to the technical
aspects o f banking, there is no reason to doubt that over a period of time
important progress can be made and future political difficulties minimized.

National Association of Manufacturers Initiates Search
for Nation’s Outstanding Inventors and Scientists
— Dr. Karl T. Compton Heads Awards Committee
Dr. Karl T. Compton, President of the Massachusetts
Institute of Technology, heads a committee of six scientists
named Oct. 15 to select America’s most outstanding “Mod ­
ern Pioneers”— those inventors who have contributed most
to the American standard of living in the last 25 years.
The “Modern Pioneers” will be honored Feb. 27 at a cele­
bration in New York, sponsored by the National Associa­
tion of Manufacturers to commemorate the 150th anniver­
sary of the founding of the American Patent System. In
addition to Dr. Compton the Awards Committee includes:
Foixst R. Moulton, American Association for Advancement of Science.
Goorge B. Pegram, Columbia University.
John T. Tate, University of Minnesota.
Edward R. Weidlein, Mellon Institute.
Frank C. Whitmore, Pennsylvania State College.

Simultaneous with the appointment of the Awards Com­
mittee, the N. A. M., in cooperation with scientific organiza­
tions, launched its search for the Nation’s outstanding in­
ventors and scientists. The N. A. M. asked manufacturers,
trade groups and scientific societies to nominate persons
for distinction as “Modern Pioneers.” Nominations close
Dec. 1. A special committee of 80 leading industrialists
has been appointed by the N. A. M. to promote the search
for the inventors. Chairman of the committee is Robert L.
Lund, Executive Vice-President of the Lambert Pharmacal
Co. and Chairman of the N. A. M. Patents and Trade-Marks
Committee.

Two Chicago Institutes to Merge to Form Illinois
Institute of Technology
It was announced Oct. 26 by James D . Cunningham,
Chairman of the Board of Trustees of Armour Institute of
Technology, and Alex D . Bailey, Chairman of the Board of
Lewis Institute, that their repective institutions had entered
into and agreement to consolidate into a great new techno­
logical center for Chicago. It is said that this is the first
occasion on which two colleges of engineering have ever
agreed to merge their interests to produce an institution of
more important scope. The announcement by the Armour
Institute further stated:
The name o f the new school is to be the Illinois Institute o f Technology,
with the background and reputation o f the two component colleges recog­
nized by maintaining their names as applied to its two divisions. Armour
and Lewis have for many years served the community in the fields o f en­
gineering education, and, by this amalgamation, it is expected that this
work and this service can be grately enhanced to the benefit of the com­
munity. The general effect will be to produce for Chicago a technological
institution second to none in this country.

H. J. Johnson Appointed President of Institute of
Life Insurance
r The appointment of Holgar J. Johnson of Pittsburgh as
President of the Institute of Life Insurance was announced
Oct. 30 by Frazar B . W ilde, Chairman of the Institute’s
board of managers and President of the Connecticut General
Life Insurance C o ., at a luncheon at the WT
aldorf-Astoria
H otel, New York , given by Thomas I . Parkinson, President
of the Equitable Life Assurance Society of the United States,
and a member of the Institute’s board of managers. The
Institute was formed early this year by 85 leading insurance
companies to coordinate the efforts of the companies and
agents to further improve their service to the public and to
act as a clearing house for information on life insurance.
A previous appointment to the Institute’s staff was mentioned
in jiu r issue of June 24, page 3778.

N. H. Dorrance and R. T. Stevens Nominated Directors
of New York Federal Reserve Bank
Announcement was made Oct. 31 by the Federal Reserve
Bank of New York , through Owen D . Young, Chairman of
the Board, of the nomination of Neil H . Dorrance, President
of the First National Bank and Trust C o. of Camden,
Camden, N . Y . , as a Class A Director and of the renomina­
tion of Robert T . Stevens, President of J. P. Stevens & C o .,
In c., N ew Y ork, as a Class B Director. M r. Stevens’ present
term expires D ec. 31 , 1939. If elected they will serve from
Jan. 1, 1940 to D ec. 31 , 1942. Both candidates were nomi­
nated by member banks in Group 3 which comprise banks
with capital and surplus of less than $301,000. Banks in
Groups 1 and 2 will not vote in this election. Voting began
on N o v . 1 and will continue until 12 o ’clock noon N o v . 16.
The circular issued by the bank calling attention to the elec­
tion was referred to in our issue of Oct. 2 1 , page 2456.

2914

ONE HUN DRED The
—

Commercial & Financial Chronicle —

G. L. Harrison, Head of New York Reserve Bank, Cele^ brates 25th Anniversary with Federal Reserve
System
F George L. Harrison, President of the Federal Reserve Bank
of New York, celebrated his 25th anniversary of association
with the Federal Reserve System on N ov . 2 . M r . Harrison
has been associated with the Federal Reserve System since
its organization in 1914. He served first as Assistant General
Counsel and later as General Counsel of the Federal Reserve
Board.
He left Washington in 1920 to become Deputy
Governor of the New York Reserve Bank and held this post
until November, 1928 when he was made Governor of the
Bank. The title of Governor was later changed to President.
The appointment of M r . Harrison as Governor of the Bank
was reported in our issue of N o v . 24 , 1928, page 2903.

Stock Brokers’ Associates of Chicago Hold First Annual
Meeting
The first annual meeting of the Stock Brokers’ Associates
of Chicago was held on Nov. 2 at the Hotel La Salie, Chi­
cago. Phil S. Hanna, editor of the Chicago “ Journal of
Commerce”, was the principal speaker.
Other addresses
were made by Paul H. Davis, head of the brokerage firm
bearing his name and Governor of the New York Stock
Exchange; Arthur M. Betts, partner of Alfred L. Baker &
Co. and Chairman of the Board of the Chicago Stock Ex­
change, and John McCarthy, partner of McCarthy & Scoville and President of the Chicago Board of Trade. John J.
O’Brien, manager of the stock department of Wayne Hum­
mer & Co., who was recently elected first president of the
new Association, as reported in our Oct. 21 issue, page 2457,
presided at the meeting.

ITEMS ABOUT BANKS, TRUST COMPANIES, &c.
Arrangements were made N o v . 3 for the transfer of a New
York Stock Exchange membership at $02,000, unchanged
from the previous transaction on N o v . 1.
----- 4------

Arrangements were made Oct. 31 for the transfer of a
New York Stock Exchange membership at $60,000. The
previous transaction was at $62,000 on Oct. 20, 1939.

---- «----

Oscar Lassen, head of the carpenter shop of the New
York Stock Exchange since 1895, on Oct. 30 celebrated at
the Exchange his golden wedding anniversary and also his
forty-fourth anniversary as an employee of the Exchange.
A luncheon, which was attended by 35 members, officers
and employees of the Exchange, including Edward E. Bart­
lett Jr., Chairman of the Board, was held in his honor at
the Stock Exchange Luncheon Club. William K. Beckers,
a Governor of the Exchange and a member of the firm of
Spencer Trask & Co., was toastmaster. William McC. Mar­
tin Jr., President, presented a purse to Mr. Lassen in recog­
nition of the esteem in which he is held by both members
and employees of the Exchange. W illiam B. Potts, former
President of the New York Stock Exchange Building Co.,
presented to Mr. Lassen an engraved testimonial, also from
the members and employees.
Daniel F. O’Meara, President of the New York Chapter,
American Institute of Banking, and Assistant Vice-Presi­
dent of the Public National Bank & Trust Co. of New York,
announces a Federal Income Tax Seminar to be offered
on Friday evenings during the next eight weeks under the
leadership of Myron M. Zizzamia of City Bank Farmers
Trust Co. This review course will consider the Internal
Revenue Code as amended, current regulations, and recent
decisions. The first class session was held at 6 p. m. on
Nov. 3.
-------♦-------

The management of the Chase National Bank, New York,
is informing its employees that as a result of recent amend­
ments to the Federal Social Security Act extending the oldage benefits thereunder to employees of National banks as
of Jan. 1, 1940, the bank is altering its own retirement and
insurance plan in such manner that the combined benefits
under the plan and the Social Security Act will afford re­
tirement allowances comparable to those provided for by the
present plan. The notice states that amendment of the
plan will not affect retirement annuities already purchased
or the rights of employees with respect to annuities which
may be purchased by the bank on account of service prior
to July 1, 1933. Both the non-contributory and contribu­
tory group life insurance in force on the lives of Chase em­
ployees will be continued without change.
Guaranty Trust Co. of New York announces that at a
meeting of the Board of Directors, held Oct. 30, the fol­
lowing titles of officers in the foreign department were
changed: W illiam R. Strelow, Harold F. Anderson and
Russell L. Wardburgh from Assistant Managers to Second
Vice-Presidents, and Philip F. Swart Jr. from Assistant
Secretary to Assistant Manager.
Charles G. Edwards, President of Central Savings Bank,
New York City, said on Nov. 1 that it is reasonable to
expect an increase in the savings deposits of the Nation.
Mr. Edwards further sa id :




YE A R S OLD

N ov. 4, 1939

While it begins to look as if American speculative fever has been dor­
mant, rather than cured, nevertheless in any period of rising employment
there is always a great mass of people who finally find it possible to put
something aside out of income for future protection. Also, a great army
of young people, employed for the first time in their lives, are discovering
the satisfaction of having a reserve in the bank, which does not fluctuate
in value.
----- 4------

The Pan-American Trust Co., New York City, has applied
to the New York State Banking Department for permission
to open and maintain a personal loan department at its
principal office and branch in New York City, it is learned
from the department’s “Weekly Bulletin” of Oct. 27.

---- 4----

The New York State Banking Department on Oct. 25
mailed to depositors of the closed Times Square Trust Co.,
New York City, checks representing $46,752, it was an­
nounced by W illiam It. White, Superintendent of Banks.
The money represents 5 % divided payments on deposits
and is the second such dividend paid this year. The present
payment brings to 909c the total of dividends paid to de­
positors. The bank was closed on Aug. 5, 1931, with 400
depositors and total liabilities of $2,062,425.
John C. McConnell, formerly Executive Vice-President of
the National Bank of W est Virginia at Wheeling, was
elected President on Oct. 19, to succeed W . B. Irvine, who
resigned recently after 50 years of service with the institu­
tion. The new President, who has been Executive VicePresident of the Wheeling bank since April, 1938, went to
Wheeling from Cleveland, Ohio, where for several years
he held a high position in the trust department of the old
Union Trust Co. and later had been a Special Assistant
to the Attorney General of Ohio. Following his graduation
from the College and Law School of Western University,
Cleveland, Mr. McConnell began his banking career as attor­
ney for the Union Trust Co., subsequently having charge
of the trust departments during the liquidation of that
bank. Isaac M. Scott is Chairman of the Board of Directors
of the National Bank of W est Virginia, which was estab­
lished in 1S17.
-------- ♦--------

Harry G. Kraus, formerly a partner of the investment
firm of Kraus-Cunningham & Co. of Cleveland, Ohio, has
become associated with the Cleveland Trust Co. in its com­
mercial banking department, it is learned from “Money and
Commerce” of Oct. 28, which added:
Mr. Kraus is a son of Joseph R. Kraus of Cleveland, long known in
banking in Ohio. He was graduated from University School, spent two
years as Kenyon College, and had been in the investment business
since 1924.

H . C . Smith, who entered banking as an employee of the
First National Bank of Wilkinsburg, P a ., has been elected
Cashier of the Citizens’ National Bank of W ooster, Ohio,
succeeding in that capacity William Harris who had been
Executive Vice-President and Cashier, and who continues as
Executive Vice-President. “ M oney & Commerce” of Oct. 2 1 ,
in noting this, added:
► M r. Smith, after leaving Wilkinsburg, was four years a member o f the
National Bank Examiners force, with the National City Bank o f Cleveland
a short time and with the Citizens’ National Bank o f Washington, Pa.,
eight years.
--------4--------

The “ Commercial W est” of Oct. 28 reports that Lester E.
Smith has resigned as Assistant Cashier of the Merchants
National Bank & Trust Co. of Fargo, N. Dak., to accept the
casliiership of the Fargo National Bank of that city. The
paper continued, in p a rt:
Mr. Smith was educated at Buffalo, N. Dak., and Fargo, and entered
the employ of the Merchants National in 1925.
E. L. Shaw, who has been Vice-President and Cashier of the Fargo
National, continues as Vice-President and Manager, to which position he
succeeded at the death of Fred M. Hector, President, several months ago.
The office of President will not be filled at present, and T. D. Hughes,
Minneapolis, continues with Mr. Shaw as Vice-President.
-------- 4 ---------

A t the regular meeting of the Palm (-Fla.) Clearing House
Association, the following officers, it was announced N o v . 1,
were elected for the ensuing year:
k' Bert C. Teed, First Vice-President o f the First National Bank in Palm
Beach, was elected President of the Association;
R . E. McNeill, Executive Vice-President o f the West Palm Beach At­
lantic National Bank in West Palm Beach, was elected Vice-President of
the Association;
Paul K. Reeves, Cashier o f the Florida Bank & Trust Co. in West Palm
Beach, was elected Secretary o f the Association; and
Roy E. Garnett, President o f the Lake Worth National Bank, was elected
Treasurer.

The Clearing House Association now comprises Palm
Beach, W est Palm Beach and Lake W orth.

THE CURB MARKET
w M ixed price changes with a moderate tendency toward

lower levels characterized the trading on the New Y ork
Curb Exchange during most of the present week. There
were some substantial advances among the preferred stocks
in the public utility list and there has been some buying
in the industrial specialty group. Oil shares have been quiet
and moved within a narrow range. M ining and metal stocks
were steady but the changes were generally in minor frac-

V o lu m e

149

ONE HUNDRED The
—

Commercial & Financial Chronicle —

tions. The aircraft issues have shown occasional forward
movements but the tendency, on the whole, has been toward
lower levels.
Irregular price changes were in evidence during most of
the short period of trading on Saturday. There were a few
strong spots scattered through the list but these were largely
among the slow moving stocks and had little effect on the
market movements. Public utilities were quiet as many of
the popular speculative issues failed to appear on the tape.
Aviation shares wure heavy, mining and metal stocks were
quiet and oil issues moved within a narrow range. Indus­
trial specialties were moderately active and several of the
leaders in this group registered gains ranging from 1 to 2
points. Pepperell Manufacturing Co. was down 2 points
to 88, and Great Atlantic & Pacific Tea C o. nv stock de­
clined
^ points to 110.
Curb stocks were mixed on M onday -with gains and
losses about evenly balanced. Trading was dull the trans­
x
fers totaling approximately 154,795 shares. Public utility
preferred stocks were higher and several of the more active
issues moved forward a point or more. Textiles also were
higher and in a number of instances reached new tops for
the year. In the aircraft section Fairchild registered mod­
erate gains while Lockheed and Bell recorded fractional de­
clines. Oil shares continued quiet, mining and metal issues
were weak and steel stocks were unchanged. Industrial
specialties were moderately strong, Lane Bryant moving
forward 1 2 points to 71 on a small turnover, Canadian
Car & Foundry pref. advancing 4 points to 27, and Thew
Shovel moved ahead 1 % points to 19.
Price movements were again mixed on Tuesday, and
while there was a tendency toward lower levels, a fairly
large list of active stocks moved against the trend. Steel
issues were irregular, Jones & Laughlin dipping 2}/% points
to 40, while Pittsburgh Bessemer & Lake Erie gained a
point at 413^. Public utilities, especially the preferred
stocks, were stronger, Cleveland Electric Illuminating ad­
vancing a point to its top price for the year at 42 and Southern
New England Tel. climbed upward 23^ points to new high
ground at 160. Aircraft shares were steady but showed
little change and substantial advances were registered by
Royal Typewriter, Singer Manufacturing Co. and Chicago
Flexible Shaft.
Public utilities and industrial specialties were in demand
on Wednesday at substantially higher prices. There was
some irregularity apparent from time to time, and while
the gains were checked to some extent, many of the market
favorites continued to move on the side of the advance.
Aircraft stocks moved downward with fractional changes
and the oil shares continued quiet and for the most part
unchanged. The aluminum stocks were stronger, Aluminum
Co. of America pref. moving up a point to 116. Am ong
the advances of note were Great Atlantic & Pacific Tea Co.
nv stock 33^ points to 1133^; Cities Service Power & Light
$7 pref., 6 points to 91; Ohio Public Service 7 pref. A (7),
2 points to 112; and Consolidated Gas & Electric of Balti­
more, 13^ points to 78.
Trading on the Curb Exchange continued quiet on Thurs­
day, and while the turnover was down to the lowest level
since the middle of October, there was a fairly large list of
gains as the session ended. Oil stocks were unusually active,
Standard Oil of Kentucky moving up to a new peak at 19;
while Standard Oil of Ohio was close to its best for the year.
Aviation shares were considerably stronger and moved for­
ward under the leadership of Lockheed which advanced to
3 2 % with a gain of 1 % points. Aluminum issues were again
in favor and surged upward to higher levels. Public utility
pref. stocks were in good demand and there was renewed
activity apparent in the industrial specialties. Prominent
among the advances were Aluminium L td ., 5 % points to 104;
r
Thew Shovel, 3 % points to 23; Standard Steel Spring, 2
points to 43; Koppers C o. pref., 2 points to 78 , and Heyden
Chemical, 2 points to 60.
Stocks moved higher on Friday and gains were apparent all
T
along the line. Aircraft stocks led the way, Bell Aircraft
forging ahead 2 % points to 2 6 % followed by others in the
group with somewhat smaller advances.
Public utilities
were in demand, particularly those in the preferred group,
and there was considerable attention directed toward the in­
dustrial specialties, many of which closed at higher levels.
The transfers were approximately 288,000 shares against
142,000 on the preceding day. As compared with Friday
of last week prices were slightly higher, Aluminum Co. of
America closing last night at 142 against 1 3 7 % on Friday a
week ago; Aluminium Ltd. at 1 0 1 % against 9 9 % ; Bell Air­
r
craft at 2 6 % against 26; Lockheed Aircraft at 3 3 % against
33; New Jersey Zinc at 6 9 % against 68; Newmont Mining
Corp. at 7 1 % against 7 0 % ; Niles-Bement-Pond at 68 against
67, and Singer Manufacturing C o. at 154 against 151.

Week Ended
N ov.- 3. 1939

Saturday__________
Monday___________
Tuesday....................
Wednesday________
Thursday__________
Friday-------------------Total____________




Stocks
(Number
of
Shares)

87.020
154,275
183,175
142,375
141,565
287.620

Bonds (Par Value)
Domestic

Foreion
Government

$690,000
1,289,000
1,453.000
1,374.000
2,094,000
1,440,000

$71,000
25,000
8,000
3,000
7,000
9.000

996,030 $8,340,000

$123,000

Foreion
Corporate

$20,000
54.000
28.000
52,000
33.000
59,000

Total

$781,000
1.368.000
1,489,000
1,429,000
2.134.000
1,508,000

$246,000 $8,709,000

Week Ended N o v . 3

Sales at
New York Curb
Exchange

1939

Stocks— No of shares -

2915
1 to N o v . 3

Jan

1939

1938

1938

996,030

1,217,813

38,125,095

39,212,341

Domestic____________
Foreign government__
Foreign corporate____

$8,340,000
123,000
246,000

$8,130,000
118,000
112,000

$377,490,000
3,678.000
5.825,000

$290,313,000
6,043,000
5,683,000

T otal______________

$8,709,000

$8,360,000

$386,993,000

$302,039,000

Bonds

Pittsburgh Stock Exchange
O c t . 28 t o N ov. 3, b o t h in c lu s iv e , c o m p ile d fr o m o f f i c i a l sa le s lists

Stocks—

13

DAILY TRANSACTIONS AT THE NEW YORK CURB EXCHANGE

Y E A R S OLD

Par

Allegheny Ludlum Steel..*
Arkansas Natural Gas_ *
_
Armstrong Cork C o _____ *
Blaw-Knox C o__________ *
Byers (A M) common___ *
Carnegie M etals C o______1
Clark (D L) Candy C o_ *
_
Columbia Gas & Electric.*
Copperweld Steel_______ 1C

Friday
W e ek 's Range
Last
Sale
o f Prices
Price Low
H igh

2 2%
38%
12%

15%
65c
5%

7
17%

Duqueene Brewing C o ___5
Follansbee Bros pref_ 100
_
Fort Pitt B rew in g..........1
1%
Koppers Gas & Coke pf 100 7 7
Lone Star Gas C o _______*
9%
Mountain Fuel S u p p ly..10
5%
Nat Fireproofing Corp_ * ______
_

__

_
Pittsburgh Brewing Co_ *
Pittsburgh Coal pref_ 100
_
Pittsburgh OH & Gas____5
Pittsburgh Plate Glass..2 5
Pittsburgh Screw & B olt.*
Ruud Mfg C o___________ *

22%
2%

24%
2%

38% 38%
12% 13%
14% 16%
60c
70c
5%
5%
6%
7%
15% 17%
1 7 y*
18
10% 10%
18
18
1%
1%
77
78
9%
9%
5
5%
2
1%
8%
8%
1%
1%
27

27

1
1
101%
99% 102%
9% 10
9%
6%
6%
6%
1c
2%
Shamrock Oil & Gas____ 1
2%
34
34%
United Eng & Foundry . .5
55c 55c
United States Glass Co_ 1
_
Victor Brewing C o ______ 1
25c
30c
25c
30% 31%
Westinghouse Air Brake. . *
Westlnghouse El & M fg. 50 113% 113% 115
Unlisted—

Pennroad Corp v t c _____1

......

2%

2%

Sales
fo r
W eek
Shares

257
141
8C
431
652
82C
305
259
430
140
374
110
300
74
1,660
930
200
100
200
100
200
188
517
95
8.000
285
100
100
200
223
70
69

Range Since J a n .
Low

14%
2%
33%
8%
7%
25c
5
5%

11%
15
10
6%
90c
55
7%
4
1%
7%

Aug
Feb
Sept
Sept
Apr
June
Apr
Apr
Apr
Feb
Sept
Apr
Jan
July
Apr
Apr
July

Oct
1%
13
Apr
1
Jan
90% Apr
4% Sept
5
May

lc

1%
25%
50c
20c
18
83%

June
Apr
Mar
July
Apr
Apr

1, 1939

H ig h

27%
3%
56%
17%
16%
1,2o
6%
8%
17%

Jan
May
Jan
Jan
NoV
Sept
Jan
Feb
Nov

21H

14%
20
1%
79%
9%
5%
3%
9
2
32
1%
116%
11%
8
2c
4
35%
80c
40c
37
119%

1% July!

Mar
Sept
Feb
Oct
Nov
Sept
Sept
Jan
Sept
May
Mar
Sept
Feb
July
Sept
Sept
Sept
Jan
Sept
Sept

3% Sept

* No par value.

Course of Bank Clearings
Bank clearings this week will show an increase compared
with a year ago. Preliminary figures compiled by us based
upon telegraphic advices from the chief cities of the country
indicate that for the week ended today (Saturday, N o v . 4)
clearings from all cities of the United States for which it
is possible to obtain weekly clearings will be 6 .0 % above
those for the corresponding week last year. Our preliminary
total stands at 16 ,537 ,24 0,01 1, against $6,166,72 3,82 5 for
the same week in 1938. A t this center there is a gain for the
week ended Friday of 3 .7 % .
Our comparative summary
for the week follows:
i.

C le a r in g s — R etu r n s by T ele g r a p h
W e e k E n d in g N o v . 3

Per
C en t

Total all cities for week___________

$3,111,984,722
261,292,673
359,000,000
242,347,140
88,618,651
77,300,000
136,277,000
113,969,658
93,723,343
93,026,451
66,289,596

$2,999,645,431
246,993,716
336,000,000
224,484,200
73,139,163
74,000,000
122,137,000
97,250,746
84,998,397
80,661,022
62,391,490

+ 3.7
+ 5.8
+ 6.8
+ 8.0
+ 21.2
+4.5
+ 11.6
+ 17.2
+ 10.3
+ 15.3
+6.2

$4,401,701,165
782,451,410

+ 5.5
+ 2.7

$5,447,700,009
1,089,540,002
<

1938

$4,643,829,234
803,870,775

Philadelphia__________ ____________

1939

$5,184,152,575
982,571,250

+ 5.1
+ 10.9

$6,537,240,011

$6,166,723,825

+ 6.0

Complete and exact details for the week covered by the
foregoing will appear in our issue of next week. W e cannot
furnish them today, inasmuch as the week ends today
(Saturday) and the Saturday figures will not be available
until noon today. Accordingly, in the above the last day
of the week in all cases has to be estimated.
In the elaborate detailed statement, however, w'hich we
present further below, we are able to give final and complete
results for the week previous— the week ended Oct. 28. For
that week there was a decrease of 0 .3 % , the aggregate of
clearings for the whole country having amounted to $5 ,9 1 6 ,977,963, against $5,933 ,37 7,99 5 in the same week in 1938.
Outside of this city there was an increase of 7 .9 % , the
bank clearings at this center having recorded a loss of
6 .0 % . W e group the cities according to •the Federal Re­
serve districts in which they are located, and from this it
appears that in the N ew York Reserve District (including
this city) the totals record a loss of 5 .5 % , but in the Boston
Reserve District the totals register a gain of 5 .0 % and in the
Philadelphia Reserve District of 5 .8 % . In the Cleveland
Reserve District the totals show an improvement of 1 3 .6 % ,
in the Richmond Reserve District of 7 .1 % and in the Atlanta
Reserve District of 1 3 .8 % . The Chicago Reserve District
shows an increase of 1 .9 % , the St. Louis Reserve District
of 7 .6 % and the Minneapolis Reserve District of 1 5 .1 % .
In the Kansas City Reserve District the totals are larger by
8 .9 % , in the Dallas Reserve District by 9 .7 % and in the
San Francisco Reserve District by 1 0 .6 % .
In the following we furnish a summary by Federal Reserve
districts:

'

ONE HUNDRED— The

2916

YEARS OLD

Commercial & Financial Chronicle —

The volume of transactions in share properties on the
New York Stock Exchange for the first ten months of the
years 1936 to 1939 is indicated in the following:

S U M M A R Y O F B A N K C L E A R IN G S

W eek E n d . Oct. 2 8 , 1939

1939

1938

In c.or
D ec.

F e d e r a l R e s e r v e D is ts .
1st B o s to n _____ 12 cities
2d
N e w Y o r k . . 13 “
3d
P h llad elp h ia lO “
4th C l e v e l a n d .. 5 “
6th R i c h m o n d .. 6 “
6 th A t la n t a ____ 10 “
7th C h ica g o ____ 18 "
8 th St. L ou is___ 4 "
Oth M in n ea p olis 7 "
10th K ansas C ity 10 “
11th D a lla s ........... 6 “
I2 th San F ra n ___ 11 •
•

S

s

%

274,152,348
3,383,698,701
406,423,272
303,349,396
143,421,591
180,324,413
493,034,968
158,566,671
112,764,491
137,513,918
72,329,747
251,398,444

261,079.637
3,579,799,388
384.312,812
267.080,779
133,939,507
158,431,095
483,831,523
147,387,041
97,939,119
126,289,159
65,920,668
227,367,267

+ 5 .0
—5.5
+ 5.8
+ 13.6
+ 7.1
+ 13.8
+ 1.9
+ 7.6
+ 15.1
+ 8 .9
+ 9 .7
+ 10.6

270,693,246
3,510,863,616
381,634,691
321,773,306
142,676,250
157,159,769
506,777,102
149,330,89 +
112,995,966
131 691,306
69,119,735
251,144,536

276,296,869
3,534,912.078
360,322.597
302,912,728
130,388,375
151,307,521
493,976,935
152,512,658
101,682,264
128,760,533
65,541,886
231,800,399

T o t a l _________113 cities
O u tsid e N . Y . C it y _____

5,916,977.96:
2,647,813,950

5.933,377,995
2,454,428,496

—0.3
+ 7 .9

6,005,865.467
2,614,043,165

5,930,414,843
2,507,741,423

C a n a d a __________ 32 cities

358.143,498

359,817,073

—0.5

376.0n 120

343,428,616

1936

1937
5

Nov. 4, 1939

$

1939
N o . Shares

1938
N o . Shares

1937
N o . Shares

1936
N o . Shares

2 5 ,1 8 2 ,3 5 0
1 3 ,8 73 ,32 3
2 4 ,5 6 3 ,1 7 4

2 4 ,1 5 1 .9 3 1
14.5 26 ,09 4
2 2 ,9 9 5 ,7 7 0

5 8 ,6 7 1 ,4 1 6
5 0 ,2 4 8 .0 1 0
5 0 ,3 4 6 ,2 8 0

6 7 ,2 0 1 ,7 4 5
6 0 ,8 8 4 ,3 9 2
5 1 ,0 1 6 .5 4 8

F irst q u a r t e r _______________

6 3 ,6 18 ,84 7

6 1,6 7 3 .7 9 5

159 ,26 5,7 06

1 7 9 ,10 2,6 85

M o n t h o f A p r il_______________
M a y _______________
J u n e . .................. .......

2 0 ,2 4 6 ,2 3 8
1 2,9 35 ,21 0
11,9 63 ,79 0

1 7 ,1 19 ,10 4
1 4,0 04 ,24 4
2 4,3 6 8 ,0 4 0

3 4 ,6 0 6 ,8 3 9
18,5 49 ,18 9
16,4 49 ,19 3

3 9 ,6 0 9 ,5 3 8
2 0 ,6 1 3 ,6 7 0
2 1 ,4 2 8 ,6 4 7

M o n t h o f J a n u a r y ____________
.
F e b r u a r y ______
M a r c h _____________

S e co n d q u a r te r____________

We also furnish today a summary of the clearings for the
month of October. For that month there was a decrease
for the entire body of clearing houses of 5 .8% , the 1939
aggregate of clearings being $25,041,170,281 and the 1938
aggregate $26,572,177,720. In the New York Reserve Dis­
trict the totals fell behind by 5 .6% , but in the Boston
Reserve District the totals are larger by 5.6% and in the
Philadelphia Reserve District by 6.5% . The Cleveland
Reserve District enjoys a gain of 14.5%, the Richmond
Reserve District of 5.9% and the Atlanta Reserve District
of 11.8% . In the Chicago Reserve District the totals
record a gain of 6.8% , in the St. Louis Reserve District of
10.2% and in the Minneapolis Reserve District of 10.9%.
In the Kansas City Reserve District the increases is 11.4%,
and in both the Dallas and San Francisco Reserve Districts
10.7% .

4 5 ,1 4 5 ,2 3 8

5 5 ,4 91 ,38 8

6 9 ,6 0 5 ,2 2 1

8 1 ,6 5 1 ,8 5 5

Six m o n th s _________________

108 ,76 4.0 85

117 .16 5.1 83

2 2 8 ,8 7 0 ,9 2 7

2 6 0 ,7 5 4 ,5 4 0

1 8,0 6 7 ,9 2 0
17,372,781
5 7,0 9 1 ,4 3 0

3 8 ,7 7 3 ,5 7 5
2 0 .7 2 8 ,1 6 0
2 3 ,8 2 6 ,9 7 0

2 0 ,7 2 2 ,2 8 5
17,2 12 ,55 3
3 3,8 5 4 ,1 8 8

3 4 ,7 9 3 ,1 5 9
2 6 ,5 6 3 ,9 7 0
3 0 ,8 7 2 ,5 5 9

M o n t h o f J u ly -----------------------A u g u s t _____________
S e p te m b e r_________
T h ir d q u a r t e r ______________

92,5 32 ,13 1

8 3 ,3 2 8 ,7 0 5

7 1 ,7 8 9 ,0 2 6

9 2 ,2 2 9 ,6 8 8

N in e m o n t h s _______________

2 0 1 ,2 9 6 ,2 1 6

2 00 ,49 3,8 88

3 00 ,65 9,9 53

3 5 2 ,9 8 4 ,2 2 8

M o n t h o f O c t o b e r ......... ............

2 3 ,7 3 4 ,9 3 4

4 1 ,5 5 8 ,4 7 0

5 1 ,1 27 ,61 1

4 3 ,9 9 5 ,2 8 2

The following compilation covers the clearings by months
since Jan. 1, 1939 and 1938:
M O N T H L Y C L E A R IN G S
C learings. Total A ll

C learings Outside N ew York,

M o n th
1939

1939

1938

1938

October,

1939

1938

F e d e r a l R e s e r v e D is t s .
1 s t B o s t o n ______ 1 4 c it i e s
2d
N e w Y o r k . . 15 “
3d
P h ila d e lp h ia ! 7 “
4 t h C le v e la n d . . 1 8
“
5 th R ic h m o n d - - 9 “
6 t h A t l a n t a _____ 16 “
7 t h C h i c a g o _____3 1
"
8 t h S t . L o u i s ___ 7 “
9 th M ln n e a p o lis l6
“
1 0 t h K a n s a s C i t y 18 “
1 1 t h D a l l a s . ___ 11 "
1 2 t h S a n F r a n ___ 19 “

$
1,192,583,542
13,0.9,532,408
1,792,137,573
1,435,889,487
684,213,406
841,919,666
2,199 162,617
720,091,558
520,389.064
845,445,118
590,672,715
1,179,133,127

$
1,129,607,934
15,568,693,603
1,682,456,907
1,253,875,964
645,973,267
752,777,196
2,058,759,916
653,152,060
469,277,280
758,954,489
533,657,629
1,064,991,475

T o t a l __________191 c it ie s
O u t s id e N . Y . C i t y ______

25,041,170,281
12,514,369,766

26,572,177,720
11,484,650,067

C a n a d a ___________ 3 2 c it ie s

1.631,492,076

1,672,195.075

October,

October,

1937

In c.or
D ec.

1936

$
%
1,170,684,327
+ 5.6
— 16.2 15,423,370,609
1,768,276,002
+ 6 .5
+ 14.5
1,505,403,922
704,220,253
+ 5 .9
773,273,440
+ 11.8
2,283,619,582
+ 6 .8
693,973,685
+ 10.2
538,336,549
+ 10.9
+ 11.4
838,752,482
553,285,226
+ 10.7
1,268,773,190
+ 10 7

$
1,252,086,668
16,582,801,138
1,821,536,338
1,433,748,379
691,003,959
754,915,078
2,309,008,472
734,417,559
508,104,831
809,587,143
527.555,245
1,232,466,480

— 5.8
+ 9 .0

27,521,969.267
12,656,979,589

28,657,231,290
12,622,761,358

— 2.4

1,641.113,815

1,837,016,465

We append another table showing the clearings by Federal
Reserve districts for the ten months for four years:
10 M on th s
1939

F ederal Reserve D ists.
1st
2d
3d
4 th
5 th
6 th
7 th
8 th
9 th
10th
1 1 th
1 2 th

B o s t o n ______ 14 c it ie s
**
“
C le v e la n d ..1 8
"
R ic h m o n d .. 9 “
A t l a n t a _____ 16 “
C h i c a g o _____ 3 1 “
S t . L ou is ___ 7 “
M in n e a p o lis l6
“
K a n s a s C i t y 18 “
D a l l a s _______11 "
S a n F r a n ___ 1 9 “

New Y o r k . 1 5
P h ila d e l p h i a l 7

10 M on th s
1938

In c.or
D ec.

10 M on th s
1936

s

s
%
S
%
10,996,658,744
9,974,962,251 + 10.2 11,745,095,551 11,199,783,527
141,625,782.708 138,683,641,312 + 2.1 16.3,068,100,222 162,339,352,625
17.071,133,8+9 15,506,475,502 + 10.1 17,524,422.275 16,187,183,907
+ 9.4 14,841,397,927 12,549,368,471
12,650,456,903 11,566.029,09c
5,527.154,772 + 7.2 6.324,143.092
5,604,647,684
5.922,836,068
6.471,295.605 + 11.5 7,061,931,134
7,214.336,932
6,027,465,928
20,195,527.421 18,678.123,805 + 8 .1 22,878,028,105 20,438,727,300
6,059,198.499
5,605,653,288
6,443,526,885
5,866,473,317
+ 8 .1
4,775,969,175
+ 5.8
4,319,016,023
4,258.117,321
4,504,629,578
7,135,824.564 + 5 .9
8,416,137,365
7,553,891,705
7,568,880,326
5,032,085,206
5,134.634.969
+ 8.7
4,235,532.564
4,721.992,661
10,613,204,366 10,036,893,227 + 5.7 11.964,282,648 10,726,936,575

T o t a l ..................191 c it ie s 249.542,291,732 238.166,373.401
O u t s id e N . Y . C i t y ........... 112,546,532.523 104,032,520,849
C a n a d a ___________ 3 2 c it i e s

10 M on th s
1937

U ^ o 721.747

14.016.656,398

+ 4 e 280,075,149,585 267,063,368,247
+ 8 .2 122,531,041,173 109,692,593,250
-4-3.0

15,581.786.987

15,705,307,495

Our usual monthly detailed statement of transactions on
the New York Stock Exchange is appended. The results
for October and the ten months of 1939 and 1938 follow:
M on th o f October

T en M on th s

D escrip tion
1939

1938

1939

.

+ 4 .9

+ 8 . 6 3 2,1 4 2 ,0 4 8 ,5 3 5 3 0 ,6 4 9 ,6 1 4 ,1 1 5

A p r ___ 2 4 ,1 5 6 ,2 5 1 ,6 8 4 2 3 ,9 6 8 ,2 5 6 ,6 8 2 + 0 .8 1 0 ,7 73 ,25 3,2 9 7 1 0 ,2 68 ,03 3,7 4 3 + 4 .9
M a y . - 2 4 ,6 3 9 ,2 7 1 ,3 5 0 2 2,3 51 ,13 5,4 3 1 + 10.2 1 1 ,1 59 ,25 1,0 8 2 9 ,9 6 7 ,9 8 4 ,3 6 4 + 12 .0
J u n e - - 2 5 ,5 0 1 ,7 3 9 ,5 1 6 2 6,2 86 ,11 8,1 0 1 — 3 .0 1 1 ,4 44 ,44 6,3 7 2 1 0 ,5 3 4 ,7 1 6 ,2 6 0 + 8 .6
2 d q u . 7 4 ,2 9 7 ,2 6 2 ,5 5 0 7 2 ,6 0 5 ,5 1 0 ,2 1 4

+ 2 .3 3 3 ,3 76 ,95 0,7 5 1 3 0,7 7 0 ,7 3 4 ,3 6 7

+ 8 .5

6 m o s . 149288 8 4 6 ,30 5 1 41 67 1 74 1 ,9 4 7

+ 5 .4 6 5 ,5 1 8 ,9 9 9 ,2 8 6 6 1,4 2 0 ,3 4 8 ,4 8 2

+ 6 .7

J u ly . . 2 3 ,8 4 8 ,8 5 3 ,2 0 8 2 3.9 55 ,57 8,2 0 4 — 0.4 1 1 ,1 97 ,20 0,6 3 3 1 0 ,4 8 6 ,8 4 1 ,0 5 0 + 6 . 8
A u g . . 2 4 ,9 6 1 ,7 9 6 .4 3 6 2 1 ,9 45 ,17 3,9 2 2 + 13.7 1 1,3 24 ,46 5,3 4 6 10 1 90 .11 9,9 76 + 11.1
S e p t . . 2 6,4 0 1 ,6 2 5 ,5 0 2 2 4 ,0 2 1 ,7 0 1 ,6 0 8 + 9 .9 1 1 ,9 91 ,49 7,4 9 2 1 0 ,4 5 0 ,5 6 1 ,2 7 4 + 14.7
3 d q u . 7 5 ,2 1 2 ,2 7 5 ,1 4 6 6 9 ,9 2 2 ,4 5 3 ,7 3 4

+ 7 .6 3 4 ,5 13 ,16 3,4 7 1 3 1,1 2 7 ,5 2 2 ,3 0 0 + 1 0 .9

9 m o s . 2 24 50 1 12 1 ,4 5 1 2 11 59 4 19 5 ,6 8 1

+ 6 .1 1 0 0 0 3 2 1 6 2 ,7 5 7 9 2,5 47 ,87 0,7 8 2

+ 8 .1

O c t ___ 2 5 ,0 4 1 ,1 7 0 ,2 8 1 2 6,5 7 2 ,1 7 7 ,7 2 0

— 5 .8 1 2,5 14 ,36 9,7 6 6 1 1,4 84 ,65 0,0 6 7

+ 9 .0

The course of bank clearings at leading cities of the country
for the month of October and since Jan. 1 in each of the
last four years is shown in the subjoined statement:
B A N K C L E A R IN G S A T L E A D IN G C IT IE S IN O C T O B E R
(0 0 0 ,0 0 0
----------M on th o f October----- — ----------------J a n . 1 to Oct. 31om itted)
1938
1936
1939
1938
1939
1937
1937
1936
$
$
$
S
$
$
$
$
N e w Y o r k _______ __.1 2 ,5 2 7 15,088 14,865 1 6,0 34 136,996 134,134 157,544 157,371
C h ic a g o ____________ . 1,351
1,320
1,440
1,474 12,588
11,936
14,302
12,796
B o s to n _____________ . 1,0 1 3
992
961
1 ,069
9,3 8 6
8 ,4 5 1
10,018
9,6 0 8
1,591
16,193
P h ila d e lp h ia _______. 1,7 0 4
1 ,668
1,728
1 4,662
16,572
1 5,303
S t. L o u is __________ .
411
376
409
4 14
3,6 7 7
3 ,4 4 4
4 ,0 3 8
3 ,6 8 0
473
P itts b u rg h _________ .
555
599
613
4 ,8 9 0
4 ,5 2 9
6 ,2 4 9
5 ,4 0 0
603
660
6,0 1 3
San F ra n c is c o _____ .
686
658
5,7 6 2
6 ,5 7 6
5 ,9 1 4
337
3 00
321
328
2,9 1 8
B a lt im o r e __________.
2 ,6 7 9
3 ,0 3 7
2 ,7 3 6
2,431
270
235
274
260
2 ,2 8 3
2 ,7 1 6
2 ,3 3 8
C i n c i n n a t i - - ___ _.
421
K a n sa s C i t y _______.
438
376
411
3 ,8 9 5
3 ,6 4 5
4 ,4 7 2
3 ,9 3 0
408
404
C le v e la n d __________.
466
466
4 ,0 2 4
3,5 2 7
4 ,2 8 8
3 ,4 5 2
322
296
346
322
M in n e a p o lis ..............
2 ,8 3 0
2,6 8 8
3,0 7 8
2 ,7 3 4
199
N e w O rlean s______ .
187
195
182
1 ,549
1,623
1,674
1,381
458
394
D e t r o i t ________ .. .
466
471
4 ,0 8 3
4 ,3 6 4
3 ,5 3 6
4 ,9 2 8
144
150
155
156
1,472
1,488
1 ,324
L o u is v ille __________.
1,327
131
O m a h a _____________.
142
144
140
1,284
1,191
1,348
1,368
50
48
52
53
473
433
P r o v id e n c e ________
447
425
84
93
91
95
865
913
M ilw a u k e e ________
812
8 45
163
B u f f a lo ____________ .
156
137
161
1,354
1 ,2 6 5
1,596
1,382
112
123
1,111
S t. P a u l___________ .
126
126
1 ,0 8 5
1 ,036
1,0 4 9
142
154
154
145
D e n v e r ____________ 1,286
1,207
1,383
1 ,1 9 5
78
81
I n d ia n a p o lis______
86
79
796
723
801
697
213
199
1,4 9 5
201
220
1 ,6 8 0
1,613
1,7 3 5
R ic h m o n d _______ .
M e m p h is __________
146
126
128
159
843
772
847
802
173
153
175
167
1,517
1,413
1 ,682
1,429
S e a ttle _____________ .
74
65
74
74
634
S a lt L a k e C i t y ___
567
703
610
51
49
47
51
474
H a r t fo r d ___________
450
517
490
T o t a l ____________ .2 2 ,3 1 7 2 4,0 88 2 4,7 57 2 5,9 69 2 2 5 ,3 3 5 215 ,62 7 254 ,03 8 2 4 4 ,1 2 6
O th er cit ie s _______ . 2 ,7 2 4 2 ,4 8 4 2 ,7 6 5 2 ,6 8 8 2 4,2 07 2 2 ,5 3 9 2 6 ,0 3 7 2 2 ,9 3 7

1938

2 3 ,7 3 4 ,9 3 4
4 1 ,5 5 8 ,4 7 0
2 2 5 ,03 1,1 50
2 4 2 ,0 5 2 ,3 5 8
S to ck s, nu m b er o l shares Bonds
R a ilro a d & m is ce ll. b on d s $ 134,816,000 $ 15 5,6 98 ,00 0 $ 1 ,2 10 ,56 5,0 0 0 $ 1 ,1 6 8 ,2 6 1 ,0 0 0
206 .55 1.0 00
2 1 .0 7 0 .0 0 0
2 1 ,8 0 8 ,0 0 0
2 0 1 .7 1 5 .0 0 0
F o re ig n g o v t , b o n d s _____
7 ,6 7 3 ,0 0 0
3 0 1 .18 2.0 00
1 4.2 03 .00 0
1 1 6 .41 2.0 00
U . S. G ov ern m en t b o n d s .
T o t a l b o n d s _____ __

%
+ 2 .3
+ 6 .1
+ 6 .5

1st q u . 7 4 ,9 9 1 .5 8 3 ,7 5 5 6 9 ,0 6 6 ,2 3 1 ,7 3 3
October,

$
$
S
$
%
J a n ___ 2 5 ,6 9 1 ,1 4 8 ,3 5 6 2 4,2 4 0 ,6 1 1 ,3 1 9 + 6 .0 11,075 ,26 5,7 0 2 1 0 ,8 28 ,44 9,0 7 2
F e b . . . 2 1 ,8 4 0 ,4 8 0 ,6 3 3 1 9 ,6 31 ,51 9,8 4 0 + 1 1.3 9 ,6 1 7 ,7 6 5 ,2 6 8 9 ,0 6 8 ,7 3 9 ,1 5 3
M a r - . 2 7 .4 5 9 ,9 5 4 ,7 6 6 2 5 ,1 9 4 ,1 0 0 ,5 7 4 + 9 .0 1 1,4 49 ,01 7,5 6 5 1 0,7 52 ,42 5,8 9 0

$ 170,089,000 $ 1 8 5,1 79 ,00 0 $1,718 ,29 8,0 0 0 $ 1,4 86 ,38 8,0 0 0

T o t a l a ll_________.2 5 ,0 4 1 2 6 ,5 7 2 2 7 ,5 22 2 8,6 57 249 ,54 2 2 3 8 ,1 6 6 2 8 0 ,0 7 5 2 6 7 .4 6 3
O u tsid e N e w Y o r k .1 2 ,5 1 4 1 1,4 85 12,6 57 12,623 112,547 104,033 122,531 109,693

We now add our detailed statement showing the figures
for each city separately for October and since Jan. 1 for
two years and for the week ended Oct. 28 for four years:

CLEARINGS FOR OCTOBER, SINCE JANUARY 1, AND FOR WEEK ENDING OCT. 28
M on th o f October

T en M on th s Ended O ct. 31

W eek Ended Oct. 28

Clearings at—
1939

F ir s t F e d e r a l R e s e
M a in e — B a n g o r _______
P o r t l a n d _______ _____
M a s s .— B o s t o n ________
F all R iv e r ___________
L o w e ll____________ __
N e w B e d fo r d ________
S p r in g fie ld ___________
W o r c e s t e r ____________
C o n n .— H a r t f o r d _____
N ew H a v e n _________
R . I . — P r o v id e n c e ____
N . H .— M a n ch e ste r___
T o t a l (14 c it ie s )_____




1938

I n c . or
D ec.

1939

%

$

1938

I n c . or
D ec .

1939

1938

I n c . or
D ec .

1937

S

%

S

S

%

S

1936

$
$
rv e D i s t r i c t — B o s t o n —
2 ,5 6 2,1 67
2 ,5 2 9 ,6 1 7
9 ,0 6 6 ,4 0 9
9 ,7 8 9,6 17
1 ,0 1 2.7 95 ,83 0
9 6 0 ,6 0 0 ,5 2 7
3 ,0 0 8 ,2 1 8
4 ,2 0 2 ,7 9 6
1 ,8 3 5 ,O'M
1 ,6 0 5 ,3 8 0
2 ,1 2 0 ,2 3 5
2 ,2 5 4 ,2 8 7
4 ,0 0 5 ,7 1 1
3 ,3 8 5 ,4 8 7
1 5 ,1 0 0 ,2 3 0
1 5 ,2 18 ,47 6
1 0 ,0 53 ,22 0
8 ,9 8 0 ,3 4 7
4 7,3 9 4 ,0 1 0
5 1,2 0 0 ,9 7 0
19.2 12 ,88 2
1 8 ,4 38 ,43 0
6 .9 7 7 .9 0 0
6 .7 3 0.4 00
4 8 ,1 5 2 .0 0 0
5 0 .2 7 1 ,1 0 0
2 .4 2 5 ,7 6 0
2 ,2 3 7 ,3 3 6

+ 1 .3
+ 8 .0
+ 5 .4
+ 3 9.7
+ 14.3
— 5 .9
+ 18.3
— 0 .8
+ 11.9
+ 8 .0
+ 4 .4
+ 3 .7
+ 4 .4
+ 8 .4

2 2 ,1 0 8 ,6 0 5
8 8 ,3 4 9 ,9 1 0
9 ,3 8 5 ,9 6 0 .7 4 9
2 9 ,8 7 7 ,5 9 5
14,9 51 ,80 1
1 8 ,1 5 7 ,6 0 3
2 9 ,4 9 0 ,7 6 4
1 34 ,5 3 1 ,0 4 3
8 1 .4 1 6 ,7 3 8
4 7 4 ,1 0 0 ,3 5 0
1 8 0 ,43 1,8 53
6 5 ,9 9 7 ,8 0 0
4 4 8 ,6 3 7 ,9 0 0
2 4 ,6 4 6 ,0 3 3

2 2 ,6 4 7 ,1 4 8
8 1 ,2 4 8 ,2 7 9
8 ,4 5 0 ,6 3 9 ,3 8 1
2 6 ,1 7 5 ,8 9 9
1 5 ,6 2 0 ,6 6 7
1 6,5 5 4 ,6 2 5
2 7 ,6 6 0 .6 6 2
128 ,30 7,1 81
7 6 ,9 9 1 ,7 1 7
4 5 0 ,3 8 4 ,2 5 3
1 6 8 ,1 7 0 ,4 0 0
6 3 ,6 6 3 ,7 0 0
4 2 4 ,9 1 8 ,3 0 0
2 1 ,9 8 0 ,0 3 9

— 2 .4
+ 8 .7
+ 11.1
+ 14.1
— 4 .3
+ 9 .7
+ 6 .6
+ 4 .9
+ 5.7
+ 5 .3
+ 7 .3
+ 3 .7
+ 5.1
+ 12.1

4 7 0 ,8 3 5
1 ,9 6 3 ,2 0 9
2 3 3 ,9 7 2 ,5 5 7
8 00 ,40 8

450 ,73 7
1,85 5,5 71
2 2 2 ,4 0 9 ,4 9 5
658,411

+ 4 .5
+ 5 .8
+ 5.2
+ 21.6

516,069
2 ,0 1 5,5 83
2 32 ,6 5 9 ,5 4 2
672 ,57 8

580 ,36 8
2 ,3 8 2 ,0 8 5
2 4 0 ,0 7 6 ,6 7 1
6 70 ,31 8

4 4 2 ,81 5
8 7 7 ,09 7
3 ,3 4 5 .5 8 5
2 ,1 7 1 ,6 9 4
13,6 36 ,83 1
3 ,7 3 9 ,5 8 4

6 44,836
8 0 5 .45 5
3 ,4 4 8 ,3 2 4
2 ,007,001
1 1 ,4 74 ,33 3
4 ,0 4 7 ,3 1 9

— 31.3
+ 8 .9
— 3 .0
+ 8 .2
+ 18.8
— 7.6

446,991
770,741
3 ,6 9 8 ,8 7 4
2 ,2 5 2 ,0 0 3
11,520,801
3,669,001

4 3 1 ,1 7 8
8 7 6 ,8 6 4
3 .2 2 5 ,4 1 8
2 ,3 2 4 ,2 9 7
1 0 ,7 7 2 ,1 4 9
3 ,8 4 6 ,3 1 8

1 2 ,2 4 1 ,3 6 6
490 ,43 3

1 2 ,7 2 0 .2 0 0
557 ,95 5

— 3 .8
— 12.1

11,8 96 ,20 0
579,863

1 0 ,5 2 3 .0 0 0
5 88 ,20 3

1 ,1 2 9 ,6 0 7 ,9 3 4

+ 5 .6

1 0 ,9 9 6 ,6 5 8 ,7 4 4

9 ,9 7 4 ,9 6 2 ,2 5 1

+ 1 0.2

2 7 4 ,1 5 2 ,3 4 8

2 6 1 .0 7 9 ,6 3 7

+ 5 .0

2 7 0 ,6 9 8 ,2 4 6

2 7 6 ,2 9 6 ,8 6 9

1 ,1 9 2 ,5 8 3 ,5 4 2

$

Volume 149

ONE HUNDRED— The

Commercial & Financial Chronicle— YEARS
C T .E A R T V n n

M on th o f October
1939
S econ d F ederal R es
N . Y . — A lb a n y ________
B in g h a m to n _____ __
B u f fa lo _______________
E l m i r a ________ ______
J a m e s to w n ___________
N e w Y o r k ____ ______
R o c h e s t e r ____________
S y ra cu se _____________
W e stch ester C o u n t y .
C o n n .— S ta m fo rd ______
N . J .— M o n t c la ir _____
N e w a rk _____________
N o r th e rn N ew Jersey
O ra n g es___ __________
T o t a l (15 c itie s )_____

1938

T en M on th s Ended Oct. 31
I n c . or
D ec .

1939

%

S

OLD

W eek Ended Oct. 28

1938

I n c . or
D ec.

1939

1938

I n c . or
D ec .

1937

1936

S

%

S

S

%

S

$

S
S
ir v e D is t r ic t — N e w Y o r k —
3 8 , 9 ;! / , 04b
4 1 ,5 4 8 ,2 4 5
5 ,0 3 3 ,2 1 2
4 ,4 8 2 ,7 2 6
1 56 ,29 7,8 45
137 ,21 5,5 71
2 ,4 6 4 ,0 9 8
2 ,3 5 2 ,6 0 8
3 ,9 2 2 ,2 3 3
3 ,1 2 0 ,3 4 9
1 2 ,5 26 ,80 0,5 1 5 15,087,527,653
3 7,8 8 8 ,7 7 2
3 6 ,8 6 6 ,4 3 5
2 0,5 3 5 ,8 7 0
1 8,9 7 7 ,3 7 3
3 ,8 1 0 ,6 4 8
3 ,5 8 8 ,7 9 9
1 8 ,3 23 ,74 6
1 8 ,0 4 4 ,0 6 9
1 8 ,7 84 ,99 6
1 8 ,1 0 9 ,9 4 8
1 ,8 6 6,3 77
1 ,8 8 2,3 91
7 9,8 4 0 ,2 7 6
7 1 ,4 3 1 ,2 3 0
1 2 2 ,07 5,8 56
1 19 ,9 3 4 ,4 5 6
2 ,8 7 0 ,9 1 8
3 ,6 1 1 ,7 5 0

— 6 .2
4 0 0 ,3 7 6 ,3 1 0
4 3 1 ,6 2 9 ,9 9 7
+ 12.9
4 9 ,9 1 1 ,1 9 8
50,012,457
+ 13.9
1 ,3 5 4 ,4 /1 ,6 6 0
1 ,2 6 4 ,7 1 9 ,8 1 5
+ 4.7
2 1 ,9 1 8 ,0 7 0
2 2 ,3 8 9 ,4 9 0
+ 2 5.7
3 3 ,1 3 5 ,0 7 4
2 9 ,5 6 4 ,5 5 0
— 17.0 .3 6 ,9 9 5 ,7 5 9 ,2 0 9 1 3 4 ,13 3,8 52 ,5 52
+ 2 .8
3 4 1 ,4 3 4 ,4 4 /
3 1 9 ,9 7 5 ,8 0 6
+ 8 .2
1 8 2 ,4 4 5 ,9 3 8
1 7 5 ,7 9 3 ,4 3 9
+ 6 .2
3 2 ,5 2 2 ,1 2 8
3 5 ,4 /3 ,8 4 6
+ 1.6
1 5 2 ,9 3 8 ,2 9 0
1 64 ,48 9,4 00
+ 3.7
1 8 0 ,1 6 4 ,6 4 3
1 68 ,64 3,0 87
— 0 .8
1 6 ,8 2 0 ,1 8 5
1 8,0 89 ,95 2
+ 11.8
7 53 ,44 1,3 10
7 3 9 ,6 7 0 ,4 0 6
+ 1 .8
1 ,1 0 8 ,9 3 7 ,9 9 2
1 ,0 6 2 ,2 1 0 ,8 6 2
— 2 0 .5
3 6 ,1 7 1 ,1 1 8
3 2 ,4 8 0 ,7 7 7

— 7.2
— 0 .2
+ 7.1
— 2 .1
+ 12.1
+ 2.1
+ 6.7
+ 3 .8
+ 9.1
+ 7 .6
+ 6 .8
+ 7 .4
+ 1.9
— 4 .2
— 10.2

11,8 64 ,49 2
9 ,1 7 4 ,8 0 5
923,588
746,249
3 3 ,8 0 0 ,0 0 0
3 0 ,0 0 0 ,0 0 0
657 ,63 6
458 ,52 8
670,541
737 ,70 8
3 ,2 6 9,1 64 ,01 3 3 ,4 7 8 ,9 4 9 ,4 9 9
7 ,3 6 0 ,5 3 9
8 ,8 4 5,9 21
5 ,2 2 8 ,4 4 4
4 ,1 2 6 ,5 2 3

1 3,039,532,40S 1 5,5 68 ,69 3,6 0 3

— 16.2 1 41 ,62 5,7 82 ,7 08 1 38 ,68 3,6 41 ,3 12

+ 2 .1

3 ,3 8 3 ,6 9 8 ,7 0 4 3 ,5 7 9,7 99 ,38 8

T h i r d F e d e r a l R e s e rv e D is t r ic t — P h il a d e lp h ia
P a .— A lto o n a __________
1 ,9 5 9,8 15
1 ,691,907 + 15.8
B e th le h e m ___________
y 2 , 393,282
y 2 , 236 ,50 0
+ 7 .0
C h e s te r______________
1,79 3,1 49
2 ,1 2 8 ,9 9 7 — 15.8
9 ,2 3 8 ,1 4 3
11,9 85 ,18 1 — 22.9
6 ,2 9 1,8 47
5 ,9 2 8 ,1 8 2
L a n c a s te r____________
+ 6.1
L e b a n o n ___
_______
2 ,2 5 9 ,3 8 1
2 ,0 9 5 ,2 0 4
+ 7.8
N o r r i s t o w n ___ ______
2 ,0 5 2,0 01
+ 0 .4
2 ,0 4 4 ,7 3 1
1 ,7 0 4,0 00 ,00 0 1 ,5 9 1 ,0 0 0 ,0 0 0
P h ila d elp h ia _________
+ 7.1
R e a d in g ______________
7 ,0 4 9,2 82
6 ,6 4 8 ,9 3 s
+ 6 .0
S cr a n to n _____________
9 ,8 1 8,6 38
9 ,3 6 8 ,1 2 9
+ 4 .8
W ilk e s -B a rr e ________
• 4 ,7 1 5 ,8 8 6
5 ,1 6 8 ,1 8 0
— 8 .8
Y o r k _________________
5 ,3 0 2,4 17
6 ,2 7 1,8 91 — 15.5
1,47 2,3 56
1 ,3 6 8 ,6 5 5
+ 7.6
6 21,929
609,823
+ 2 .0
2 ,8 3 5,7 41
2 ,8 7 0 ,8 6 8
— 1.2
D e l.— W i lm in g t o n ____
1 5 ,4 29 ,20 6
+ 8 .9
14,1 74 ,28 1
N . J .— T r e n t o n ________
14,9 04 ,50 0
1 6 ,8 6 5 ,4 4 0 — 11.6

2917

(Continued)

1 8 ,6 3 5 ,6 8 8
2 3 ,3 /1 ,1 3 3
15,2 88 ,13 2
9 2 ,9 5 3 ,4 3 9
5 4 ,4 4 0 ,8 /9
2 0 ,2 20 ,15 7
1 8 ,5 90 ,34 3
1 6 ,1 9 3 ,0 0 0 ,0 0 0
6 4 ,4 5 0 ,8 /6
9 9 ,9 61 ,66 4
4 3,1 6 2 ,1 2 9
5 1 ,0 1 0 ,3 6 0
11,2 84 ,56 4
5 ,6 8 9 ,8 2 3
2 6 ,0 4 7 ,2 3 3
1 5 6 ,15 1,2 19
176 ,83 6,2 00

1 6 ,9 96 ,72 8
1 8 ,9 2 4 ,0 0 0
1 4 ,3 92 ,86 7
9 6 ,6 2 7 ,4 6 7
50|808,196
1 8 ,5 0 8 ,5